HB 119

1
A bill to be entitled
2An act relating to real property registration; providing a
3short title; providing definitions; requiring the
4Department of Financial Services to establish a statewide
5Internet registry of certain vacant, abandoned, or
6foreclosure-proposed properties for certain purposes;
7authorizing the department to charge a fee for registry
8filings; requiring lenders to file with the registry
9certain information on certain properties; providing
10additional information requirements; requiring lenders to
11periodically determine the vacant or abandoned status of
12certain properties in mortgage default; specifying
13additional required information; providing additional
14penalties; requiring lenders and the department to notify
15local governments of properties on the registry; requiring
16local governments to establish an e-mail address for
17receiving such notices; providing duties of lenders and
18local governments; requiring lenders initiating
19foreclosure proceedings to include certain information in
20the filings for foreclosure; providing for dismissal of
21foreclosure proceedings under certain circumstances;
22providing for award of certain costs; authorizing lenders
23to correct failures to include specified information and
24deposit certain amounts into the court registry for
25certain purposes; authorizing local governments to enter
26properties listed on the registry for certain examination
27purposes; providing limitations; requiring local
28governments to notify lenders of intent to enter certain
29properties for certain purposes; prohibiting local
30governments from entering such properties under certain
31circumstances; authorizing lenders to certify to local
32governments that certain properties have been inspected
33and meet certain criteria; providing penalties; providing
34for nonapplication to legally occupied properties;
35providing local governments with immunity from prosecution
36under certain circumstances; providing an exception;
37requiring local governments to notify certain persons of
38certain conditions of properties listed on the registry;
39authorizing local governments to correct or repair such
40conditions and recover the full costs of such repairs or
41corrections; providing for superiority of liens for such
42costs; providing requirements; specifying abandoned
43property as nonhomestead property; protecting the right of
44local governments to inspect properties under certain
45circumstances; prohibiting local governments from
46maintaining separate local property registries; requiring
47local governments to transmit any local property registry
48information to the department; providing information
49requirements for lenders initiating foreclosure actions;
50prohibiting issuance of final judgments of foreclosure and
51sales of property in foreclosure actions under certain
52circumstances; authorizing groups of lenders to establish
53a separate reporting system under certain circumstances;
54providing requirements; providing an effective date.
55
56Be It Enacted by the Legislature of the State of Florida:
57
58     Section 1.  (1)  This section may be cited as the "Vacant
59or Abandoned Real Property Registration, Maintenance, and
60Foreclosure Reporting Act."
61     (2)  For purposes of this section, the term:
62     (a)  "Abandoned property" means property that is not
63legally occupied by any person, is no longer being maintained,
64and constitutes a nuisance as described in s. 823.01, Florida
65Statutes.
66     (b)  "Department" means the Department of Financial
67Services.
68     (c)  "Legal agent" means an employee or designee of a
69lender designated by the lender for purposes of receiving legal
70notices relating to real property.
71     (d)  "Maintenance agent" means an employee or designee of a
72lender designated by the lender for purposes of maintaining the
73condition of real property.
74     (e)  "Vacant property" means land upon which no structure
75has been erected and constitutes a nuisance as described in s.
76823.01, Florida Statutes.
77     (3)(a)  The department shall establish a statewide Internet
78registry of each property specified in subsection (4) containing
79the information required by this section.
80     (b)  The department shall use the filings in the registry
81to provide statistical information concerning vacant or
82abandoned property and property foreclosures.
83     (c)  The department may charge a fee for each filing of
84information of property listed in the registry. Such fee may not
85exceed the actual costs of recording such information in the
86registry and notifying local governments.
87     (4)(a)  Each lender holding a mortgage on vacant or
88abandoned real property that the lender takes action to
89maintain, which may be pursuant to criteria established by the
90Federal National Mortgage Association, under the rights provided
91in the securing mortgage documents or with respect to which the
92lender prepares legal documents to be filed for purposes of
93foreclosing on the mortgaged property, whichever occurs first,
94shall file with the registry a description of such real
95property, including the property owner's name, the address of
96the property, and the lender's loan number together with the
97lender's name, the lender's legal agent and maintenance agent,
98and the agents' addresses, telephone numbers, and e-mail
99addresses. The department may require such other information the
100department deems necessary to fulfill the intent and purpose of
101this section. The lender's legal agent and maintenance agent may
102be the same person. The lender shall also notify the appropriate
103local government of the filing of such information with the
104registry as required in subsection (5).
105     (b)  At least once every 2 months after a mortgagor is in
106default on a mortgage, as evidenced by written notification from
107the lender to the mortgagor, the lender shall determine if the
108property is vacant or abandoned and shall include the
109information required in paragraph (a), including the date of any
110inspection, into the registry upon filing. Failure to complete
111the determination or include the results of the determination
112into the registry shall result in an additional penalty of $500
113at the time of filing. Such additional penalty shall be used to
114satisfy any local government liens upon the premises that
115accrued prior to the filing in the registry and any excess
116penalty moneys shall be retained by the department.
117     (5)(a)  The department shall provide a copy of the registry
118filing and any registry filing updates by e-mail to the local
119government within the jurisdiction of which the property is
120located. Each local government shall establish an e-mail address
121for purposes of receiving copies of such registry filings.
122     (b)1.  A local government shall electronically confirm with
123the registry the receipt of each such registry filing received
124from the department, and the registry shall notify the legal
125agent by e-mail certifying receipt by the local government. If
126the lender does not receive such certification, the lender shall
127provide by certified mail with proof of delivery to the local
128government the information specified in subsection (4) and
129electronically notify the registry of such action.
130     2.  A local government that receives a confirmation in
131error shall electronically notify the registry of the error, and
132the registry shall notify the legal agent by e-mail.
133     3.  When a lender is notified that a local government
134received a notice in error, the lender shall correct the filing
135in the registry and ensure that the correct local government
136receives the notification required by this section.
137     (c)  Whenever any lender information is changed, the lender
138shall update the registry, including the time the lender
139initiates proceedings to foreclose the mortgage on any property
140listed in the registry, complying with the requirements of
141paragraphs (a) and (b).
142     (d)  When a lender retains legal counsel to pursue a
143mortgage collection action or foreclosure action or files
144foreclosure proceedings in court, the lender shall include proof
145of the registry filing certifying that the proper local
146government has received mortgage collection or foreclosure
147notification through the registry or through certified mail with
148proof of delivery as provided in this subsection. Failure to
149include such information shall cause the mortgage collection or
150foreclosure action to be dismissed and costs shall be assessed
151against the lender, or the lender may correct the failure to
152include such proof before such dismissal and deposit the sum of
153$1,000 into the court registry to be used to pay any outstanding
154liens of the local government if the local government chooses to
155maintain the property.
156     (6)(a)  Except as provided in paragraphs (b) and (c), after
157a property is listed in the registry, the local government may
158physically enter upon the premises of the property in the normal
159course of property inspections under the same legal authority
160possessed by the lender to enter upon such property, not more
161often than once every 3 months, for the purpose of examining the
162property to ensure that the property is properly secured and is
163not a danger to the surrounding area. If during the inspection
164the local government observes violations of local government
165ordinances, the local government may issue notices to require
166correction of the violations. However, at least 10 days prior to
167entering the property for purposes of such examination, the
168local government shall electronically notify the maintenance
169agent of the proposed inspection, including the date and time of
170the proposed inspection, and the lender's maintenance agent may
171accompany the local government's inspectors during such
172inspection.
173     (b)  Notwithstanding paragraph (a), a local government may
174not enter upon the premises of any property of the lender listed
175on the registry to perform any inspection under paragraph (a) if
176the lender certifies to the local government under oath that the
177lender has conducted a physical inspection of the property
178within 10 days after the notice provided by the local government
179required under paragraph (a) and that the property is secure, is
180not a danger to the surrounding area, and is in compliance with
181the local government's ordinances. The inspection conducted by
182the lender must include the name, business address, e-mail
183address, and telephone number of the inspector and the date of
184the physical inspection. If it is later determined that the
185inspection is fraudulent, the lender and inspector shall be
186subject to a civil penalty as provided in s. 501.2075, Florida
187Statutes. If it is later determined that the inspection is
188incorrect or fraudulent, the local government may immediately
189proceed to inspect and enforce the provisions of this
190subsection.
191     (c)  Paragraph (a) does not apply to legally occupied
192properties.
193     (d)  If a local government enters upon the premises of any
194property under this subsection for purposes of this subsection,
195the local government shall be immune from prosecution except for
196negligence on the part of officials of the local government in
197conducting inspections and maintaining the property.
198     (7)  If any property listed in the registry is broken into
199or vandalized, violates the local government's ordinances, or
200otherwise falls into disrepair or becomes uninhabitable, the
201local government may notify the maintenance agent. If, after
202providing such notice, the property remains unsecured or
203vandalized, in violation of the local government's laws, or in
204disrepair or uninhabitable, the local government may, but is not
205required to, initiate repairs and recover the full amount of the
206cost of such repairs from the lender. If the local government
207initiates repairs, the local government is not required to
208continue such repairs under s. 162.09, Florida Statutes. Such
209costs shall be assessed against the property and shall
210constitute a lien on such property equal in priority to real
211property taxes, including any post lis pendens assessment filed
212by the local government, which shall be deemed valid, during a
213foreclosure proceeding, and shall be superior to all mortgage
214liens and other liens or judgments against such property, which
215must be satisfied in full upon sale of the property occurring as
216a result of the foreclosure proceeding or upon settlement or
217dismissal in the proceeding, if the local government complies
218with the following:
219     (a)  The property must be cited by the local government's
220code enforcement agency through the local government's code
221enforcement process, nuisance abatement process, or unsafe
222structure process, which citation, in addition to any other
223required notifications, must also be provided electronically to
224the lender's legal agent, and the local government must conduct
225a hearing, as is typically provided in such processes, to allow
226the lender to dispute the evidence or present evidence of its
227intent to secure and repair the property.
228     (b)  If the lender fails to comply with the decision of the
229local government's code enforcement agency, the local government
230may proceed to initiate and complete repairs and secure the
231property. Thereafter, the local government may record a lien
232assessing the property for such expenses in the public records
233of the county and may also proceed to enforce collection of such
234lien as provided in this section or in the same manner as other
235liens and assessments of the local government.
236     (8)  Property that has been abandoned by the property owner
237shall no longer be deemed to be homestead property.
238     (9)  This section does not prohibit a local government from
239inspecting property and enforcing its laws or from exercising
240any other remedies available to local governments as provided by
241law. Additionally, if the real property poses an immediate
242danger to the public health, safety, and welfare, the local
243government may take any authorized action provided by law, and
244the costs of correcting the immediate danger shall hold the same
245status as an assessment provided in subsection (7).
246     (10)  Upon the effective date of this section and upon the
247implementation of the registry, a local government may not
248maintain a separate local registry for lenders to file
249descriptions of property as provided in subsection (3). Any
250registration information held by a local government in any type
251of local registry shall be transmitted electronically to the
252registry by August 1, 2009, or at such time that the department
253notifies the local government that the department is ready to
254receive the information, whichever occurs later.
255     (11)  Any lender that has initiated mortgage foreclosure
256proceedings on a property subject to filing requirements with
257the registry under this section by filing a foreclosure claim in
258a foreclosure action in court prior to the effective date of
259this section and a sale of the property has not occurred
260pursuant to a final judgment of foreclosure or a decree of
261foreclosure in the foreclosure action, shall comply with the
262requirements of this section, and a final judgment of
263foreclosure ordering the property to be sold may not be issued
264and a sale of the property may not be made until after the
265lender files with the court in the foreclosure proceeding the
266required notice showing compliance in notifying the registry and
267local government as required by this section.
268     (12)  Notwithstanding the registry reporting requirements
269of this section and subject to approval by the department, a
270group of lenders may provide a separate system of reporting the
271information required under this section to the department and to
272affected local governments, provided the system satisfies the
273reporting requirements of this section. Such lenders shall be
274subject to the other requirements of this section.
275     Section 2.  This act shall take effect July 1, 2009.


CODING: Words stricken are deletions; words underlined are additions.