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.