Florida Senate - 2009                              CS for SB 998
       
       
       
       By the Committee on Regulated Industries; and Senator Ring
       
       
       
       
       580-04106A-09                                          2009998c1
    1                        A bill to be entitled                      
    2         An act relating to condominiums and homeowners’
    3         associations; amending s. 718.112, F.S.; providing
    4         that certain condominiums need not retrofit the inside
    5         of units with fire alarm systems or smoke-detection
    6         systems; amending s. 718.116, F.S.; requiring that a
    7         first mortgagee or its successor or assignee pay to
    8         the association the lesser of the unit’s unpaid common
    9         expenses and regular periodic assessments which
   10         accrued or came due during the immediately preceding 6
   11         months or 1 percent of the original mortgage debt
   12         under certain circumstances; repealing s. 553.509(2),
   13         F.S., relating to the requirement that certain
   14         multifamily dwellings have a least one elevator
   15         capable of operating on an alternate power source for
   16         emergency purposes; amending s. 720.3085, F.S.;
   17         requiring that a first mortgagee or its successor or
   18         assignee pay to the association the lesser of the
   19         unit’s unpaid common expenses and regular periodic
   20         assessments which accrued or came due during the
   21         immediately preceding 12 months or 1 percent of the
   22         original mortgage debt under certain circumstances;
   23         providing an effective date.
   24  
   25  Be It Enacted by the Legislature of the State of Florida:
   26  
   27         Section 1. Paragraph (l) of subsection (2) of section
   28  718.112, Florida Statutes, is amended to read:
   29         718.112 Bylaws.—
   30         (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
   31  following and, if they do not do so, shall be deemed to include
   32  the following:
   33         (l) Certificate of compliance.—There shall be a provision
   34  that a certificate of compliance from a licensed electrical
   35  contractor or electrician may be accepted by the association’s
   36  board as evidence of compliance of the condominium units with
   37  the applicable fire and life safety code. Notwithstanding the
   38  provisions of chapter 633 or of any other code, statute,
   39  ordinance, administrative rule, or regulation, or any
   40  interpretation of the foregoing, an association, condominium, or
   41  unit owner is not obligated to retrofit the common elements or
   42  units of a residential condominium with a fire sprinkler system
   43  or other engineered lifesafety system in a building that has
   44  been certified for occupancy by the applicable governmental
   45  entity, if the unit owners have voted to forego such
   46  retrofitting and engineered lifesafety system by the affirmative
   47  vote of two-thirds of all voting interests in the affected
   48  condominium. However, a condominium association may not vote to
   49  forego the retrofitting with a fire sprinkler system of common
   50  areas in a high-rise building. For purposes of this subsection,
   51  the term “high-rise building” means a building that is greater
   52  than 75 feet in height where the building height is measured
   53  from the lowest level of fire department access to the floor of
   54  the highest occupiable story. For purposes of this subsection,
   55  the term “common areas” means any enclosed hallway, corridor,
   56  lobby, stairwell, or entryway. In no event shall the local
   57  authority having jurisdiction require completion of retrofitting
   58  of common areas with a sprinkler system before the end of 2014.
   59  A condominium that has 1 1/2 hour or higher fire-rated walls and
   60  that is not a high-rise building need not retrofit the inside of
   61  units of its unit owners with fire alarm systems or smoke
   62  detection systems.
   63         1. A vote to forego retrofitting may be obtained by limited
   64  proxy or by a ballot personally cast at a duly called membership
   65  meeting, or by execution of a written consent by the member, and
   66  shall be effective upon the recording of a certificate attesting
   67  to such vote in the public records of the county where the
   68  condominium is located. The association shall mail, hand
   69  deliver, or electronically transmit to each unit owner written
   70  notice at least 14 days prior to such membership meeting in
   71  which the vote to forego retrofitting of the required fire
   72  sprinkler system is to take place. Within 30 days after the
   73  association’s opt-out vote, notice of the results of the opt-out
   74  vote shall be mailed, hand delivered, or electronically
   75  transmitted to all unit owners. Evidence of compliance with this
   76  30-day notice shall be made by an affidavit executed by the
   77  person providing the notice and filed among the official records
   78  of the association. After such notice is provided to each owner,
   79  a copy of such notice shall be provided by the current owner to
   80  a new owner prior to closing and shall be provided by a unit
   81  owner to a renter prior to signing a lease.
   82         2. As part of the information collected annually from
   83  condominiums, the division shall require condominium
   84  associations to report the membership vote and recording of a
   85  certificate under this subsection and, if retrofitting has been
   86  undertaken, the per-unit cost of such work. The division shall
   87  annually report to the Division of State Fire Marshal of the
   88  Department of Financial Services the number of condominiums that
   89  have elected to forego retrofitting.
   90         Section 2. Paragraph (b) of subsection (1) of section
   91  718.116, Florida Statutes, is amended to read:
   92         718.116 Assessments; liability; lien and priority;
   93  interest; collection.—
   94         (1)
   95         (b) The liability of a first mortgagee or its successor or
   96  assignees who acquire title to a unit by foreclosure or by deed
   97  in lieu of foreclosure for the unpaid assessments that became
   98  due prior to the mortgagee’s acquisition of title is limited to
   99  the lesser of:
  100         1. The unit’s unpaid common expenses and regular periodic
  101  assessments which accrued or came due during the 6 months
  102  immediately preceding the acquisition of title and for which
  103  payment in full has not been received by the association; or
  104         2. One percent of the original mortgage debt. The
  105  provisions of this paragraph apply only if the first mortgagee
  106  joined the association as a defendant in the foreclosure action.
  107  Joinder of the association is not required if, on the date the
  108  complaint is filed, the association was dissolved or did not
  109  maintain an office or agent for service of process at a location
  110  which was known to or reasonably discoverable by the mortgagee.
  111  
  112  If a first mortgagee or its successor or assignee has not
  113  acquired title to an owner-occupied unit 1 year after the date
  114  on which a foreclosure action is filed, the first mortgagee or
  115  its successor or assignee shall pay to the association the
  116  lesser of the unit’s unpaid common expenses and regular periodic
  117  assessments which accrued or came due during the immediately
  118  preceding 6 months or 1 percent of the original mortgage debt.
  119  The liability of the first mortgagee or its successor or
  120  assignee for all unpaid assessments when title to a unit is
  121  acquired by foreclosure or by recorded deed in lieu of
  122  foreclosure is limited to the payment required under this
  123  subparagraph.
  124         Section 3. Subsection (2) of section 553.509, Florida
  125  Statutes, is repealed.
  126         Section 4. Paragraph (c) of subsection (2) of section
  127  720.3085, Florida Statutes, is amended to read:
  128         720.3085 Payment for assessments; lien claims.—
  129         (2)
  130         (c) Notwithstanding anything to the contrary contained in
  131  this section, the liability of a first mortgagee, or its
  132  successor or assignee as a subsequent holder of the first
  133  mortgage who acquires title to a parcel by foreclosure or by
  134  deed in lieu of foreclosure for the unpaid assessments that
  135  became due before the mortgagee’s acquisition of title, shall be
  136  the lesser of:
  137         1. The parcel’s unpaid common expenses and regular periodic
  138  or special assessments that accrued or came due during the 12
  139  months immediately preceding the acquisition of title and for
  140  which payment in full has not been received by the association;
  141  or
  142         2. One percent of the original mortgage debt.
  143  
  144  If a first mortgagee or its successor or assignee has not
  145  acquired title to an owner-occupied unit 1 year after the date
  146  on which a foreclosure action is filed, the first mortgagee or
  147  its successor or assignee shall pay to the association the
  148  lesser of the unit’s unpaid common expenses and regular periodic
  149  assessments which accrued or came due during the immediately
  150  preceding 12 months or 1 percent of the original mortgage debt.
  151  The liability of the first mortgagee or its successor or
  152  assignee for all unpaid assessments when title to a unit is
  153  acquired by foreclosure or by recorded deed in lieu of
  154  foreclosure is limited to the payment required under this
  155  subparagraph. The limitations on first mortgagee liability
  156  provided by this paragraph apply only if the first mortgagee
  157  filed suit against the parcel owner and initially joined the
  158  association as a defendant in the mortgagee foreclosure action.
  159  Joinder of the association is not required if, on the date the
  160  complaint is filed, the association was dissolved or did not
  161  maintain an office or agent for service of process at a location
  162  that was known to or reasonably discoverable by the mortgagee.
  163         Section 5. This act shall take effect October 1, 2009.