Gov. Crist Signs Condo Bill Into Law

Article Courtesy of CBS CHANNEL 4 LOCAL

By David Sutta

Published June 25, 2010

FT. LAUDERDALE (CBS4) ― With a stroke of a pen, Governor Charlie Crist signed a bill into law on Thursday that gives condo associations more power in dealing owners who are behind on their association dues.

Crist signed Senate Bill 1196 at the Galt Mile Beach Community Center in Ft. Lauderdale Thursday morning.

"This legislation does one very, simple, smart thing," Crist said. "It empowers the residents of condominiums throughout the state of Florida."

Senate Bill 1196 gives condo associations the power to collect rent from tenants of homeowners who lease their units in order to satisfy any unpaid fees. Also, associations will be able to

suspend the use of recreational facilities if association fees are more than 90 days past due.

"It's got a lot more legal teeth and enforcement to it," said attorney Ben Solomon. "It's going to force investors to become more responsible in paying the amounts due to the associations. And this will really help associations in collecting those important dollars."

Associations will not be required to retrofit the buildings with fire sprinklers or install fire alarms with the approval of two-third of the unit owners and in most cases elevator upgrades can be put off for five years.

This part of the bill could end up saving homeowners thousands of dollars. Donna Opert lives in the Galt Mile and said she and everyone else in her building would have been assessed upwards of $20,000 to pay for a sprinkler system.

"When you start implementing that kind of assessment, you don't have a grace period," Donna said. "You've got to cough it up immediately."

Governor Crist, who owns a condo in Miami, believes the sprinkler debate belonged to condo owners and not politicians. Critics argue the sprinklers would have saved lives.

"We have 20 high-rise building. In 50 years, there has never been an injury," said Pio Ieraci, president of the Galt Mile Community Association. "There has never been a death via high-rise fire. And we have had plenty of fires."

One added bonus for condo associations in the bill comes from the fact that when banks foreclose on a unit, typically they have to pay six months of past dues. However, now they will be on the hook for 12 months of past association dues.

COMMENT:

The last sentence is the biggest joke of the report:
"One added bonus for condo associations in the bill comes from the fact that when banks foreclose on a unit, typically they have to pay six months of past dues. However, now they will be on the hook for 12 months of past association dues."
I hope everybody is aware that in most cases condos couldn't even collect 6 months of back dues, because there is a cap in the bill?

That's the exact wording:
1250 unpaid assessments that became

1251 due before ~~prior to~~ the mortgagee’s acquisition of title is

1252 limited to the lesser of:

1253 1. The unit’s unpaid common expenses and regular periodic

1254 assessments which accrued or came due during the 12 6 months

1255 immediately preceding the acquisition of title and for which

1256 payment in full has not been received by the association; or

1257 2. One percent of the original mortgage debt.

Can you tell me how that is an added bonus? It would be an added bonus if the cap would have been doubled to 2%. The way it is the banks are laughing .... all the way to the bank! Is that so difficult to understand?

As much as I can understand that Senator Fasano makes statements like: "New law lets HOA's go after banks" -- he doesn't understand what's in the bills he sponsors, this excuse doesn't work for Governor Charlie Crist. Governor Crist is an attorney, he was Florida Attorney General and he worked for the Division of Florida Condominiums, Timeshares, and Mobile Homes.

Either he knowingly wants to mislead the voters or he listened to bas advisors. If that's the case he should fire these advisors real fast because they will cost him quite some votes!

In my opinion anybody signing such a horrible bill into law should be ashamed to show his face in public!