| 1 | A bill to be entitled |
| 2 | An act relating to community associations; amending ss. |
| 3 | 718.116 and 720.3085, F.S.; revising certain liability |
| 4 | limitations of a first mortgagee or its successor or |
| 5 | assignees who acquire title to a condominium unit or |
| 6 | homeowners' association parcel by foreclosure or by deed; |
| 7 | revising applicability of provisions with respect to a |
| 8 | successor or assignee of a condominium unit; providing an |
| 9 | effective date. |
| 10 |
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| 11 | Be It Enacted by the Legislature of the State of Florida: |
| 12 |
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| 13 | Section 1. Paragraphs (b) and (g) of subsection (1) of |
| 14 | section 718.116, Florida Statutes, are amended to read: |
| 15 | 718.116 Assessments; liability; lien and priority; |
| 16 | interest; collection.-- |
| 17 | (1) |
| 18 | (b)1. The liability of a first mortgagee or its successor |
| 19 | or assignees who acquire title to a unit by foreclosure or by |
| 20 | deed in lieu of foreclosure for the unpaid assessments that |
| 21 | became due prior to the mortgagee's acquisition of title is |
| 22 | limited to the lesser of: |
| 23 | a.1. The unit's unpaid common expenses and regular |
| 24 | periodic assessments which accrued or came due during the 6 |
| 25 | months immediately preceding the acquisition of title and for |
| 26 | which payment in full has not been received by the association; |
| 27 | or |
| 28 | b.2. One percent of the original mortgage debt. |
| 29 | 2. The provisions of this paragraph apply only if: |
| 30 | a. The first mortgagee joined the association as a |
| 31 | defendant in the foreclosure action; and |
| 32 | b. The first mortgagee acquired title to the unit within 1 |
| 33 | year after the foreclosure action is filed, regardless of |
| 34 | whether the foreclosure action was initiated prior to the |
| 35 | effective date of this act, unless the unit is owner occupied, |
| 36 | in which case the 1-year time limit shall not apply. The 1-year |
| 37 | time limit shall be automatically extended for any length of |
| 38 | time if the first mortgagee is prevented from filing or |
| 39 | continuing a foreclosure due to a petition filed by the owner |
| 40 | under chapter 13 of the federal Bankruptcy Code or a petition |
| 41 | filed by the owner under chapter 7 of the federal Bankruptcy |
| 42 | Code where the mortgagee diligently pursues stay relief. |
| 43 |
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| 44 | Joinder of the association is not required if, on the date the |
| 45 | complaint is filed, the association was dissolved or did not |
| 46 | maintain an office or agent for service of process at a location |
| 47 | which was known to or reasonably discoverable by the mortgagee. |
| 48 | (g) For purposes of this subsection, the term "successor |
| 49 | or assignee" as used with respect to a first mortgagee includes |
| 50 | only a subsequent holder of the first mortgage that acquires the |
| 51 | first mortgage prior to any action to foreclose the first |
| 52 | mortgage. |
| 53 | Section 2. Paragraph (c) of subsection (2) of section |
| 54 | 720.3085, Florida Statutes, is amended to read: |
| 55 | 720.3085 Payment for assessments; lien claims.-- |
| 56 | (2) |
| 57 | (c) Notwithstanding anything to the contrary contained in |
| 58 | this section, the liability of a first mortgagee, or its |
| 59 | successor or assignee as a subsequent holder of the first |
| 60 | mortgage who acquires title to a parcel by foreclosure or by |
| 61 | deed in lieu of foreclosure for the unpaid assessments that |
| 62 | became due before the mortgagee's acquisition of title, shall be |
| 63 | the lesser of: |
| 64 | 1. The parcel's unpaid common expenses and regular |
| 65 | periodic or special assessments that accrued or came due during |
| 66 | the 12 months immediately preceding the acquisition of title and |
| 67 | for which payment in full has not been received by the |
| 68 | association; or |
| 69 | 2. One percent of the original mortgage debt. |
| 70 |
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| 71 | The limitations on first mortgagee liability provided in by this |
| 72 | chapter paragraph apply only if the first mortgagee filed suit |
| 73 | against the parcel owner and initially joined the association as |
| 74 | a defendant in the mortgagee foreclosure action and the first |
| 75 | mortgagee acquires title to the parcel within 1 year after the |
| 76 | foreclosure action is filed, regardless of whether the |
| 77 | foreclosure action was initiated prior to the effective date of |
| 78 | this act, unless the parcel is owner occupied, in which case the |
| 79 | 1-year time limit shall not apply. Joinder of the association is |
| 80 | not required if, on the date the complaint is filed, the |
| 81 | association was dissolved or did not maintain an office or agent |
| 82 | for service of process at a location that was known to or |
| 83 | reasonably discoverable by the mortgagee. Notwithstanding any |
| 84 | provision to the contrary, the 1-year time limit shall be |
| 85 | automatically extended for any length of time if the first |
| 86 | mortgagee is prevented from filing or continuing a foreclosure |
| 87 | due to a petition filed by the owner under chapter 13 of the |
| 88 | federal Bankruptcy Code or a petition filed by the owner under |
| 89 | chapter 7 of the federal Bankruptcy Code where the mortgagee |
| 90 | diligently pursues stay relief. |
| 91 | Section 3. This act shall take effect July 1, 2009. |