Florida S.B. 1196 and Condominium Assessment Collection Measures Sweeping or Sleeping?ExpressO (2011)
AbstractFLORIDA S.B. 1196 AND CONDOMINIUM ASSESSMENT COLLECTION MEASURES: SWEEPING OR SLEEPING? Florida’s recent Senate Bill 1196 (2010) has created waves in the condominium law arena. This article suggests that by considering various issues that have arisen in the legal community since July 1, 2010, the Bill’s effective date, condominiums will be better able to collect the assessments they need to maintain and improve their buildings. Healthier condominiums will instill confidence in the housing market, generate interest in condominium purchases, and play a role in the overall economic recovery. In particular, the article analyzes two of the Bill’s most contentious provisions, both affecting condominium assessment collection. The first is a provision which gives condominium associations the power to collect rents directly from tenants of unit owners who are delinquent in paying general assessments. The significance of this is that, ideally, condominium unit owners can no longer “get away” with both collecting rents and shirking their monthly assessment obligations. I pose three issues with this provision: (1) whether payments are to be applied to latest assessments first, (2) whether the new law is not as powerful since it leaves associations with no ability to re-rent units after evicting non-paying tenants, and (3) what the implications are of the Fair Debt Collection Practices Act. I provide novel possible solutions to these issues. The second is a provision which extends lender liability for delinquent assessments at foreclosure from six months to twelve months. At first blush, it appears a boon to associations, however, upon closer look, the amendment may fall short of putting more money into association coffers at mortgage foreclosure, falling victim to a “lesser of” test. I pose three issues with this provision: (1) whether the new law applies retroactively, (2) whether it is necessary to amend the condominium declaration to benefit from the new law, and (3) what the effects are on lending. I provide novel possible solutions to these issues, as well.
- safe harbor
Publication DateSeptember 17, 2011
Citation InformationRose Brill. "Florida S.B. 1196 and Condominium Assessment Collection Measures Sweeping or Sleeping?" ExpressO (2011)
Available at: http://works.bepress.com/rose_brill/1/