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.