| 1 | A bill to be entitled |
| 2 | An act relating to residential properties; amending s. |
| 3 | 633.0215, F.S.; providing an exemption, if certain |
| 4 | conditions are met, from the requirement that certain |
| 5 | condominiums install a manual fire alarm system as |
| 6 | required in the Life Safety Code; amending s. 718.112, |
| 7 | F.S.; prohibiting an authority having jurisdiction from |
| 8 | requiring the completion of retrofitting of common areas |
| 9 | with a sprinkler system before a specified date; providing |
| 10 | that certain condominiums need not retrofit the inside of |
| 11 | units with fire alarm systems or smoke-detection systems; |
| 12 | amending s. 718.116, F.S.; providing that a person |
| 13 | acquiring title to a condominium by foreclosure or |
| 14 | recorded deed is liable for certain additional unpaid |
| 15 | expenses and assessments; clarifying the definition of |
| 16 | "successor or assignee"; requiring that certain first |
| 17 | mortgagees exercise property preservation rights under |
| 18 | certain circumstances; authorizing a homeowners' |
| 19 | association to preserve or maintain the unit in a safe |
| 20 | condition under certain circumstances; requiring that |
| 21 | certain costs incurred by an association be deemed an |
| 22 | individual assessment against the unit being foreclosed; |
| 23 | providing that a first mortgagee is liable for certain |
| 24 | special assessments levied against a unit during the |
| 25 | pendency of a foreclosure action under certain |
| 26 | circumstances; authorizing an association to initiate |
| 27 | certain causes of action; authorizing an association to |
| 28 | recover reasonable attorney's fees incurred as a result of |
| 29 | pursuing certain causes of action; amending s. 720.3085, |
| 30 | F.S.; providing that a first mortgagee is liable for |
| 31 | certain special assessments levied against a unit during |
| 32 | the pendency of a foreclosure action under certain |
| 33 | circumstances; requiring that certain first mortgagees |
| 34 | exercise property preservation rights under certain |
| 35 | circumstances; authorizing a homeowners' association to |
| 36 | preserve or maintain the unit in a safe condition under |
| 37 | certain circumstances; requiring that certain costs |
| 38 | incurred by an association be deemed an individual |
| 39 | assessment against the unit being foreclosed; creating s. |
| 40 | 720.314, F.S.; defining the term "common area facilities" |
| 41 | for specified purposes; authorizing a condominium or |
| 42 | homeowners' association to disallow the use of common area |
| 43 | facilities by unit owners who are delinquent in the |
| 44 | payment of association fees by more than a specified |
| 45 | number of days; repealing s. 553.509(2), F.S., relating to |
| 46 | a requirement that public elevators capable of operating |
| 47 | from an alternate power source be installed in certain |
| 48 | multifamily dwellings or condominiums; providing an |
| 49 | effective date. |
| 50 |
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| 51 | Be It Enacted by the Legislature of the State of Florida: |
| 52 |
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| 53 | Section 1. Subsection (13) is added to section 633.0215, |
| 54 | Florida Statutes, to read: |
| 55 | 633.0215 Florida Fire Prevention Code.- |
| 56 | (13) A condominium that is one or two stories in height |
| 57 | and that has a corridor providing an exterior means of egress is |
| 58 | exempt from the requirement to install a manual fire alarm |
| 59 | system, as required in s. 9.6 of the most recent edition of the |
| 60 | Life Safety Code adopted in the Florida Fire Prevention Code. |
| 61 | Section 2. Paragraph (l) of subsection (2) of section |
| 62 | 718.112, Florida Statutes, is amended to read: |
| 63 | 718.112 Bylaws.- |
| 64 | (2) REQUIRED PROVISIONS.-The bylaws shall provide for the |
| 65 | following and, if they do not do so, shall be deemed to include |
| 66 | the following: |
| 67 | (l) Certificate of compliance.-There shall be a provision |
| 68 | that a certificate of compliance from a licensed electrical |
| 69 | contractor or electrician may be accepted by the association's |
| 70 | board as evidence of compliance of the condominium units with |
| 71 | the applicable fire and life safety code. Notwithstanding the |
| 72 | provisions of chapter 633 or of any other code, statute, |
| 73 | ordinance, administrative rule, or regulation, or any |
| 74 | interpretation of the foregoing, an association, condominium, or |
| 75 | unit owner is not obligated to retrofit the common elements or |
| 76 | units of a residential condominium with a fire sprinkler system |
| 77 | or other engineered lifesafety system in a building that has |
| 78 | been certified for occupancy by the applicable governmental |
| 79 | entity, if the unit owners have voted to forego such |
| 80 | retrofitting and engineered lifesafety system by the affirmative |
| 81 | vote of two-thirds of all voting interests in the affected |
| 82 | condominium. However, a condominium association may not vote to |
| 83 | forego the retrofitting with a fire sprinkler system of common |
| 84 | areas in a high-rise building. For purposes of this subsection, |
| 85 | the term "high-rise building" means a building that is greater |
| 86 | than 75 feet in height where the building height is measured |
| 87 | from the lowest level of fire department access to the floor of |
| 88 | the highest occupiable story. For purposes of this subsection, |
| 89 | the term "common areas" means any enclosed hallway, corridor, |
| 90 | lobby, stairwell, or entryway. In no event shall the local |
| 91 | authority having jurisdiction require completion of retrofitting |
| 92 | of common areas with a sprinkler system before the end of 2019 |
| 93 | 2014. A condominium that has 1 1/2 hour or higher fire-rated |
| 94 | walls and that is not a high-rise building need not retrofit the |
| 95 | inside of units with fire alarm systems or smoke-detection |
| 96 | systems. |
| 97 | 1. A vote to forego retrofitting may be obtained by |
| 98 | limited proxy or by a ballot personally cast at a duly called |
| 99 | membership meeting, or by execution of a written consent by the |
| 100 | member, and shall be effective upon the recording of a |
| 101 | certificate attesting to such vote in the public records of the |
| 102 | county where the condominium is located. The association shall |
| 103 | mail, hand deliver, or electronically transmit to each unit |
| 104 | owner written notice at least 14 days prior to such membership |
| 105 | meeting in which the vote to forego retrofitting of the required |
| 106 | fire sprinkler system is to take place. Within 30 days after the |
| 107 | association's opt-out vote, notice of the results of the opt-out |
| 108 | vote shall be mailed, hand delivered, or electronically |
| 109 | transmitted to all unit owners. Evidence of compliance with this |
| 110 | 30-day notice shall be made by an affidavit executed by the |
| 111 | person providing the notice and filed among the official records |
| 112 | of the association. After such notice is provided to each owner, |
| 113 | a copy of such notice shall be provided by the current owner to |
| 114 | a new owner before prior to closing and shall be provided by a |
| 115 | unit owner to a renter before prior to signing a lease. |
| 116 | 2. As part of the information collected annually from |
| 117 | condominiums, the division shall require condominium |
| 118 | associations to report the membership vote and recording of a |
| 119 | certificate under this subsection and, if retrofitting has been |
| 120 | undertaken, the per-unit cost of such work. The division shall |
| 121 | annually report to the Division of State Fire Marshal of the |
| 122 | Department of Financial Services the number of condominiums that |
| 123 | have elected to forego retrofitting. |
| 124 | Section 3. Paragraphs (b) and (g) of subsection (1) of |
| 125 | section 718.116, Florida Statutes, are amended, and paragraphs |
| 126 | (h), (i), and (j) are added to that subsection, to read: |
| 127 | 718.116 Assessments; liability; lien and priority; |
| 128 | interest; collection.- |
| 129 | (1) |
| 130 | (b) The liability of a first mortgagee or its successor or |
| 131 | assignees who acquire title to a unit by foreclosure or by |
| 132 | recorded deed in lieu of foreclosure for the unpaid assessments |
| 133 | that became due before prior to the mortgagee's acquisition of |
| 134 | title is limited to the lesser of: |
| 135 | 1. The unit's unpaid common expenses and regular periodic |
| 136 | assessments that which accrued or came due during the 12 6 |
| 137 | months immediately preceding the acquisition of title and for |
| 138 | which payment in full has not been received by the association; |
| 139 | or |
| 140 | 2. One percent of the original mortgage debt. The |
| 141 | provisions of this paragraph apply only if the first mortgagee |
| 142 | joined the association as a defendant in the foreclosure action. |
| 143 | Joinder of the association is not required if, on the date the |
| 144 | complaint is filed, the association was dissolved or did not |
| 145 | maintain an office or agent for service of process at a location |
| 146 | which was known to or reasonably discoverable by the mortgagee. |
| 147 | (g) For purposes of this subsection, the term "successor |
| 148 | or assignee" as used with respect to a first mortgagee includes |
| 149 | only a subsequent holder of the first mortgage who acquires the |
| 150 | first mortgage before any action to foreclose the first mortgage |
| 151 | is filed. |
| 152 | (h) In addition to the first mortgagee's obligations set |
| 153 | forth in paragraph (b), as to an individual unit, if the first |
| 154 | mortgagee institutes a foreclosure action against the unit |
| 155 | owner, the first mortgagee must exercise any property |
| 156 | preservation rights available under the mortgage being |
| 157 | foreclosed. If the first mortgagee fails to timely fulfill its |
| 158 | obligations under this section, the association may undertake |
| 159 | any reasonable action to otherwise preserve and maintain the |
| 160 | unit in a safe condition. Costs incurred by the association in |
| 161 | exercising this right shall be deemed an individual assessment |
| 162 | against the unit for which the association may pursue a lien or |
| 163 | foreclosure action. |
| 164 | (i) In addition to the first mortgagee's obligations set |
| 165 | forth in paragraph (b), if the first mortgagee institutes a |
| 166 | foreclosure action against the unit owner, the first mortgagee |
| 167 | is liable for any special assessments levied against the unit |
| 168 | during the pendency of such action for damage to the common |
| 169 | elements, roof, structural components of the building, and |
| 170 | mechanical, electrical, and plumbing elements serving the |
| 171 | building caused by windstorm, fire, or other casualty or act of |
| 172 | God, the purpose for which is to repair, restore, or replace the |
| 173 | common elements to pre-loss conditions, and which are needed to |
| 174 | pay for any deductibles or increase in the association's |
| 175 | casualty insurance premiums. |
| 176 | (j) The association may bring an action in its name to |
| 177 | foreclose a lien for assessments in the same manner that a |
| 178 | mortgage of real property is foreclosed, as well as an action to |
| 179 | recover a monetary judgment for the unpaid assessments without |
| 180 | having any claim of lien. The association is entitled to recover |
| 181 | its reasonable attorney's fees incurred in a lien foreclosure |
| 182 | action or an action to recover a monetary judgment for unpaid |
| 183 | assessments. |
| 184 | Section 4. Subsection (2) of section 720.3085, Florida |
| 185 | Statutes, is amended to read: |
| 186 | 720.3085 Payment for assessments; lien claims.- |
| 187 | (2)(a) A parcel owner, regardless of how his or her title |
| 188 | to property has been acquired, including by purchase at a |
| 189 | foreclosure sale or by deed in lieu of foreclosure, is liable |
| 190 | for all assessments that come due while he or she is the parcel |
| 191 | owner. The parcel owner's liability for assessments may not be |
| 192 | avoided by waiver or suspension of the use or enjoyment of any |
| 193 | common area or by abandonment of the parcel upon which the |
| 194 | assessments are made. |
| 195 | (b) A parcel owner is jointly and severally liable with |
| 196 | the previous parcel owner for all unpaid assessments that came |
| 197 | due up to the time of transfer of title. This liability is |
| 198 | without prejudice to any right the present parcel owner may have |
| 199 | to recover any amounts paid by the present owner from the |
| 200 | previous owner. |
| 201 | (c) Notwithstanding anything to the contrary contained in |
| 202 | this section, the liability of a first mortgagee, or its |
| 203 | successor or assignee as a subsequent holder of the first |
| 204 | mortgage who acquires title to a parcel by foreclosure or by |
| 205 | recorded deed in lieu of foreclosure for the unpaid assessments |
| 206 | that became due before the mortgagee's acquisition of title, |
| 207 | shall be the lesser of: |
| 208 | 1. The parcel's unpaid common expenses and regular |
| 209 | periodic or special assessments that accrued or came due during |
| 210 | the 12 months immediately preceding the acquisition of title and |
| 211 | for which payment in full has not been received by the |
| 212 | association; or |
| 213 | 2. One percent of the original mortgage debt. |
| 214 | (d) In addition to the first mortgagee's obligations set |
| 215 | forth in paragraph (c), if the first mortgagee institutes a |
| 216 | foreclosure action against the unit owner, the first mortgagee |
| 217 | is liable for any special assessments levied against the unit |
| 218 | during the pendency of such action for damage to the common |
| 219 | elements, roof, structural components of the building, and |
| 220 | mechanical, electrical, and plumbing elements serving the |
| 221 | building caused by windstorm, fire, or other casualty or act of |
| 222 | God, the purpose for which is to repair, restore, or replace the |
| 223 | common elements to pre-loss conditions, and which are needed to |
| 224 | pay for any deductibles or increase in the association's |
| 225 | casualty insurance premiums. |
| 226 | (e) In addition to the first mortgagee's obligations set |
| 227 | forth in paragraph (c), as to an individual unit, if the first |
| 228 | mortgagee institutes a foreclosure action against the unit |
| 229 | owner, the first mortgagee must exercise any property |
| 230 | preservation rights available under the mortgage being |
| 231 | foreclosed. If the first mortgagee fails to timely fulfill its |
| 232 | obligations under this section, the association may undertake |
| 233 | any reasonable action to otherwise preserve and maintain the |
| 234 | unit in a safe condition. Costs incurred by the association in |
| 235 | exercising this right shall be deemed an individual assessment |
| 236 | against the unit for which the association may pursue a lien or |
| 237 | foreclosure action. |
| 238 |
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| 239 | The limitations on first mortgagee liability provided in this |
| 240 | subsection by this paragraph apply only if the first mortgagee |
| 241 | filed suit against the parcel owner and initially joined the |
| 242 | association as a defendant in the mortgagee foreclosure action. |
| 243 | Joinder of the association is not required if, on the date the |
| 244 | complaint is filed, the association was dissolved or did not |
| 245 | maintain an office or agent for service of process at a location |
| 246 | that was known to or reasonably discoverable by the mortgagee. |
| 247 | Section 5. Section 720.314, Florida Statutes, is created |
| 248 | to read: |
| 249 | 720.314 Common area facilities; restriction of use.- |
| 250 | (1) For purposes of this section, the term "common area |
| 251 | facilities" includes, but is not limited to, any clubhouse, |
| 252 | entertainment facility, exercise facility, swimming pool, tennis |
| 253 | court, or other recreation area owned or maintained by a |
| 254 | homeowners' or condominium association and provided for use by |
| 255 | dues-paying members of such association. |
| 256 | (2) A condominium association or homeowners' association |
| 257 | may disallow the use of common area facilities by unit owners |
| 258 | who are delinquent in the payment of association fees by more |
| 259 | than 90 days. |
| 260 | Section 6. Subsection (2) of section 553.509, Florida |
| 261 | Statutes, is repealed. |
| 262 | Section 7. This act shall take effect July 1, 2010. |