Bill Text: FL S1272 | 2010 | Regular Session | Introduced

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Bill Title: Condominium and Homeowners' Associations [CPSC]

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Failed) 2010-04-30 - Died in Committee on Regulated Industries [S1272 Detail]

Download: Florida-2010-S1272-Introduced.html

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Florida Senate - 2010                                    SB 1272 
 
By Senator Ring 
32-00081A-10                                          20101272__ 
1                        A bill to be entitled 
2         An act relating to condominium and homeowners’ 
3         associations; amending s. 718.116, F.S.; providing 
4         that a person acquiring title to a condominium by 
5         foreclosure or recorded deed is liable for certain 
6         additional unpaid expenses and assessments; clarifying 
7         the definition of “successor or assignee”; requiring 
8         that certain first mortgagees exercise property 
9         preservation rights under certain circumstances; 
10         authorizing a homeowners’ association to preserve or 
11         maintain the unit in a safe condition under certain 
12         circumstances; requiring that certain costs incurred 
13         by an association be deemed an individual assessment 
14         against the unit being foreclosed; providing that a 
15         first mortgagee is liable for certain special 
16         assessments levied against a unit during the pendency 
17         of a foreclosure action under certain circumstances; 
18         authorizing an association to initiate certain causes 
19         of action; authorizing an association to recover 
20         reasonable attorney’s fees incurred as a result of 
21         pursuing certain causes of action; amending s. 
22         720.3085, F.S.; providing that a first mortgagee is 
23         liable for certain special assessments levied against 
24         a unit during the pendency of a foreclosure action 
25         under certain circumstances; requiring that certain 
26         first mortgagees exercise property preservation rights 
27         under certain circumstances; authorizing a homeowners’ 
28         association to preserve or maintain the unit in a safe 
29         condition under certain circumstances; requiring that 
30         certain costs incurred by an association be deemed an 
31         individual assessment against the unit being 
32         foreclosed; providing an effective date. 
33 
34  Be It Enacted by the Legislature of the State of Florida: 
35 
36         Section 1. Paragraphs (b) and (g) of subsection (1) of 
37  section 718.116, Florida Statutes, are amended, and paragraphs 
38  (h), (i), and (j) are added to that subsection, to read: 
39         718.116 Assessments; liability; lien and priority; 
40  interest; collection.— 
41         (1) 
42         (b) The liability of a first mortgagee or its successor or 
43  assignees who acquire title to a unit by foreclosure or by 
44  recorded deed in lieu of foreclosure for the unpaid assessments 
45  that became due before prior to the mortgagee’s acquisition of 
46  title is limited to the lesser of: 
47         1. The unit’s unpaid common expenses and regular periodic 
48  assessments that which accrued or came due during the 12 6 
49  months immediately preceding the acquisition of title and for 
50  which payment in full has not been received by the association; 
51  or 
52         2. One percent of the original mortgage debt. The 
53  provisions of this paragraph apply only if the first mortgagee 
54  joined the association as a defendant in the foreclosure action. 
55  Joinder of the association is not required if, on the date the 
56  complaint is filed, the association was dissolved or did not 
57  maintain an office or agent for service of process at a location 
58  which was known to or reasonably discoverable by the mortgagee. 
59         (g) For purposes of this subsection, the term “successor or 
60  assignee” as used with respect to a first mortgagee includes 
61  only a subsequent holder of the first mortgage who acquires the 
62  first mortgage before any action to foreclose the first mortgage 
63  is filed. 
64         (h) In addition to the first mortgagee’s obligations set 
65  forth in paragraph (b), as to an individual unit, if the first 
66  mortgagee institutes a foreclosure action against the unit 
67  owner, the first mortgagee must exercise any property 
68  preservation rights available under the mortgage being 
69  foreclosed. If the first mortgagee fails to timely fulfill its 
70  obligations under this section, the association may undertake 
71  any reasonable action to otherwise preserve and maintain the 
72  unit in a safe condition. Costs incurred by the association in 
73  exercising this right shall be deemed an individual assessment 
74  against the unit for which the association may pursue a lien or 
75  foreclosure action. 
76         (i) In addition to the first mortgagee’s obligations set 
77  forth in paragraph (b), if the first mortgagee institutes a 
78  foreclosure action against the unit owner, the first mortgagee 
79  is liable for any special assessments levied against the unit 
80  during the pendency of such action for damage to the common 
81  elements, roof, structural components of the building, and 
82  mechanical, electrical, and plumbing elements serving the 
83  building caused by windstorm, fire, or other casualty or act of 
84  God, the purpose for which is to repair, restore, or replace the 
85  common elements to pre-loss conditions, and which are needed to 
86  pay for any deductibles or increase in the association’s 
87  casualty insurance premiums. 
88         (j) The association may bring an action in its name to 
89  foreclose a lien for assessments in the same manner that a 
90  mortgage of real property is foreclosed, as well as an action to 
91  recover a monetary judgment for the unpaid assessments without 
92  having any claim of lien. The association is entitled to recover 
93  its reasonable attorney’s fees incurred in a lien foreclosure 
94  action or an action to recover a monetary judgment for unpaid 
95  assessments. 
96         Section 2. Subsection (2) of section 720.3085, Florida 
97  Statutes, is amended to read: 
98         720.3085 Payment for assessments; lien claims.— 
99         (2)(a) A parcel owner, regardless of how his or her title 
100  to property has been acquired, including by purchase at a 
101  foreclosure sale or by deed in lieu of foreclosure, is liable 
102  for all assessments that come due while he or she is the parcel 
103  owner. The parcel owner’s liability for assessments may not be 
104  avoided by waiver or suspension of the use or enjoyment of any 
105  common area or by abandonment of the parcel upon which the 
106  assessments are made. 
107         (b) A parcel owner is jointly and severally liable with the 
108  previous parcel owner for all unpaid assessments that came due 
109  up to the time of transfer of title. This liability is without 
110  prejudice to any right the present parcel owner may have to 
111  recover any amounts paid by the present owner from the previous 
112  owner. 
113         (c) Notwithstanding anything to the contrary contained in 
114  this section, the liability of a first mortgagee, or its 
115  successor or assignee as a subsequent holder of the first 
116  mortgage who acquires title to a parcel by foreclosure or by 
117  recorded deed in lieu of foreclosure for the unpaid assessments 
118  that became due before the mortgagee’s acquisition of title, 
119  shall be the lesser of: 
120         1. The parcel’s unpaid common expenses and regular periodic 
121  or special assessments that accrued or came due during the 12 
122  months immediately preceding the acquisition of title and for 
123  which payment in full has not been received by the association; 
124  or 
125         2. One percent of the original mortgage debt. 
126         (d) In addition to the first mortgagee’s obligations set 
127  forth in paragraph (c), if the first mortgagee institutes a 
128  foreclosure action against the unit owner, the first mortgagee 
129  is liable for any special assessments levied against the unit 
130  during the pendency of such action for damage to the common 
131  elements, roof, structural components of the building, and 
132  mechanical, electrical, and plumbing elements serving the 
133  building caused by windstorm, fire, or other casualty or act of 
134  God, the purpose for which is to repair, restore, or replace the 
135  common elements to pre-loss conditions, and which are needed to 
136  pay for any deductibles or increase in the association’s 
137  casualty insurance premiums. 
138         (e) In addition to the first mortgagee’s obligations set 
139  forth in paragraph (c), as to an individual unit, if the first 
140  mortgagee institutes a foreclosure action against the unit 
141  owner, the first mortgagee must exercise any property 
142  preservation rights available under the mortgage being 
143  foreclosed. If the first mortgagee fails to timely fulfill its 
144  obligations under this section, the association may undertake 
145  any reasonable action to otherwise preserve and maintain the 
146  unit in a safe condition. Costs incurred by the association in 
147  exercising this right shall be deemed an individual assessment 
148  against the unit for which the association may pursue a lien or 
149  foreclosure action. 
150 
151  The limitations on first mortgagee liability provided in this 
152  subsection by this paragraph apply only if the first mortgagee 
153  filed suit against the parcel owner and initially joined the 
154  association as a defendant in the mortgagee foreclosure action. 
155  Joinder of the association is not required if, on the date the 
156  complaint is filed, the association was dissolved or did not 
157  maintain an office or agent for service of process at a location 
158  that was known to or reasonably discoverable by the mortgagee. 
159         Section 3. This act shall take effect July 1, 2010.