Florida Senate - 2009                        COMMITTEE AMENDMENT
       Bill No. SB 998
       
       
       
       
       
       
                                Barcode 893816                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/01/2009           .                                
                                       .                                
                                       .                                
                                       .                                
       —————————————————————————————————————————————————————————————————




       —————————————————————————————————————————————————————————————————
       The Committee on Regulated Industries (Deutch) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Paragraph (l) of subsection (2) of section
    6  718.112, Florida Statutes, is amended to read:
    7         718.112 Bylaws.—
    8         (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
    9  following and, if they do not do so, shall be deemed to include
   10  the following:
   11         (l) Certificate of compliance.—There shall be a provision
   12  that a certificate of compliance from a licensed electrical
   13  contractor or electrician may be accepted by the association’s
   14  board as evidence of compliance of the condominium units with
   15  the applicable fire and life safety code. Notwithstanding the
   16  provisions of chapter 633 or of any other code, statute,
   17  ordinance, administrative rule, or regulation, or any
   18  interpretation of the foregoing, an association, condominium, or
   19  unit owner is not obligated to retrofit the common elements or
   20  units of a residential condominium with a fire sprinkler system
   21  or other engineered lifesafety system in a building that has
   22  been certified for occupancy by the applicable governmental
   23  entity, if the unit owners have voted to forego such
   24  retrofitting and engineered lifesafety system by the affirmative
   25  vote of two-thirds of all voting interests in the affected
   26  condominium. However, a condominium association may not vote to
   27  forego the retrofitting with a fire sprinkler system of common
   28  areas in a high-rise building. For purposes of this subsection,
   29  the term “high-rise building” means a building that is greater
   30  than 75 feet in height where the building height is measured
   31  from the lowest level of fire department access to the floor of
   32  the highest occupiable story. For purposes of this subsection,
   33  the term “common areas” means any enclosed hallway, corridor,
   34  lobby, stairwell, or entryway. In no event shall the local
   35  authority having jurisdiction require completion of retrofitting
   36  of common areas with a sprinkler system before the end of 2014.
   37  A condominium that has 1 1/2 hour or higher fire-rated walls and
   38  which is not a high-rise building need not retrofit the inside
   39  of units of its unit owners with fire alarm systems or smoke
   40  detection systems.
   41         1. A vote to forego retrofitting may be obtained by limited
   42  proxy or by a ballot personally cast at a duly called membership
   43  meeting, or by execution of a written consent by the member, and
   44  shall be effective upon the recording of a certificate attesting
   45  to such vote in the public records of the county where the
   46  condominium is located. The association shall mail, hand
   47  deliver, or electronically transmit to each unit owner written
   48  notice at least 14 days prior to such membership meeting in
   49  which the vote to forego retrofitting of the required fire
   50  sprinkler system is to take place. Within 30 days after the
   51  association’s opt-out vote, notice of the results of the opt-out
   52  vote shall be mailed, hand delivered, or electronically
   53  transmitted to all unit owners. Evidence of compliance with this
   54  30-day notice shall be made by an affidavit executed by the
   55  person providing the notice and filed among the official records
   56  of the association. After such notice is provided to each owner,
   57  a copy of such notice shall be provided by the current owner to
   58  a new owner prior to closing and shall be provided by a unit
   59  owner to a renter prior to signing a lease.
   60         2. As part of the information collected annually from
   61  condominiums, the division shall require condominium
   62  associations to report the membership vote and recording of a
   63  certificate under this subsection and, if retrofitting has been
   64  undertaken, the per-unit cost of such work. The division shall
   65  annually report to the Division of State Fire Marshal of the
   66  Department of Financial Services the number of condominiums that
   67  have elected to forego retrofitting.
   68         Section 2. Paragraph (b) of subsection (1) of section
   69  718.116, Florida Statutes, is amended to read:
   70         718.116 Assessments; liability; lien and priority;
   71  interest; collection.—
   72         (1)
   73         (b) The liability of a first mortgagee or its successor or
   74  assignees who acquire title to a unit by foreclosure or by deed
   75  in lieu of foreclosure for the unpaid assessments that became
   76  due prior to the mortgagee’s acquisition of title is limited to
   77  the lesser of:
   78         1. The unit’s unpaid common expenses and regular periodic
   79  assessments which accrued or came due during the 6 months
   80  immediately preceding the acquisition of title and for which
   81  payment in full has not been received by the association; or
   82         2. One percent of the original mortgage debt. The
   83  provisions of this paragraph apply only if the first mortgagee
   84  joined the association as a defendant in the foreclosure action.
   85  Joinder of the association is not required if, on the date the
   86  complaint is filed, the association was dissolved or did not
   87  maintain an office or agent for service of process at a location
   88  which was known to or reasonably discoverable by the mortgagee.
   89  
   90  If a first mortgagee or its successor or assignee has not
   91  acquired title to an owner-occupied unit 1 year after the date
   92  on which a foreclosure action is filed, the first mortgagee or
   93  its successor or assignee shall pay to the association the
   94  lesser of the unit’s unpaid common expenses and regular periodic
   95  assessments which accrued or came due during the immediately
   96  preceding 6 months or 1 percent of the original mortgage debt.
   97  The liability of the first mortgagee or its successor or
   98  assignee for all unpaid assessments when title to a unit is
   99  acquired by foreclosure or by recorded deed in lieu of
  100  foreclosure is limited to the payment required under this
  101  subparagraph.
  102         Section 3. Subsection (2) of section 553.509, Florida
  103  Statutes, is repealed.
  104         Section 4. Paragraph (c) of subsection (2) of section
  105  720.3085, Florida Statutes, is amended to read:
  106         720.3085 Payment for assessments; lien claims.—
  107         (2)
  108         (c) Notwithstanding anything to the contrary contained in
  109  this section, the liability of a first mortgagee, or its
  110  successor or assignee as a subsequent holder of the first
  111  mortgage who acquires title to a parcel by foreclosure or by
  112  deed in lieu of foreclosure for the unpaid assessments that
  113  became due before the mortgagee’s acquisition of title, shall be
  114  the lesser of:
  115         1. The parcel’s unpaid common expenses and regular periodic
  116  or special assessments that accrued or came due during the 12
  117  months immediately preceding the acquisition of title and for
  118  which payment in full has not been received by the association;
  119  or
  120         2. One percent of the original mortgage debt.
  121  
  122  If a first mortgagee or its successor or assignee has not
  123  acquired title to an owner-occupied unit 1 year after the date
  124  on which a foreclosure action is filed, the first mortgagee or
  125  its successor or assignee shall pay to the association the
  126  lesser of the unit’s unpaid common expenses and regular periodic
  127  assessments which accrued or came due during the immediately
  128  preceding 12 months or 1 percent of the original mortgage debt.
  129  The liability of the first mortgagee or its successor or
  130  assignee for all unpaid assessments when title to a unit is
  131  acquired by foreclosure or by recorded deed in lieu of
  132  foreclosure is limited to the payment required under this
  133  subparagraph.
  134  
  135  The limitations on first mortgagee liability provided by this
  136  paragraph apply only if the first mortgagee filed suit against
  137  the parcel owner and initially joined the association as a
  138  defendant in the mortgagee foreclosure action. Joinder of the
  139  association is not required if, on the date the complaint is
  140  filed, the association was dissolved or did not maintain an
  141  office or agent for service of process at a location that was
  142  known to or reasonably discoverable by the mortgagee.
  143         Section 5. This act shall take effect October 1, 2009.
  144  
  145  ================= T I T L E  A M E N D M E N T ================
  146         And the title is amended as follows:
  147         Delete everything before the enacting clause
  148  and insert:
  149                        A bill to be entitled                      
  150         An act relating to condominiums; amending s. 718.112,
  151         F.S.; providing that certain condominiums need not
  152         retrofit the inside of units with fire alarm systems
  153         or smoke-detection systems; amending s. 718.116, F.S.;
  154         requiring that a first mortgagee or its successor or
  155         assignee pay to the association the lesser of the
  156         unit’s unpaid common expenses and regular periodic
  157         assessments which accrued or came due during the
  158         immediately preceding 6 months or 1 percent of the
  159         original mortgage debt under certain circumstances;
  160         repealing s. 553.509(2), F.S., relating to the
  161         requirement that certain multifamily dwellings have a
  162         least one elevator capable of operating on an
  163         alternate power source for emergency purposes;
  164         amending s. 720.3085, F.S.; requiring that a first
  165         mortgagee or its successor or assignee pay to the
  166         association the lesser of the unit’s unpaid common
  167         expenses and regular periodic assessments which
  168         accrued or came due during the immediately preceding
  169         12 months or 1 percent of the original mortgage debt
  170         under certain circumstances; providing an effective
  171         date.