Reaching for a bigger "hammer," condominium associations wantnew legislation that will give them more control over delinquent units.
The 2010 Legislature granted associations unprecedented power to collect rent from tenants of privately owned condos. But associations are back this year to tighten the wording and expand their privileges.
"In bill drafting, it sort of came out like Frankenstein's bride," said Fort Lauderdale attorney Donna DiMaggio Berger. "There's been considerable debate over whether you can collect full amounts (of rent)."
Berger's Community Action Network now seeks to codify that full rental amounts can be collected by associations until all past-due assessments are paid.
"Vague statutory language leaves the issue of whether full rent or merely the monthly assessment can be demanded up to costly debate," Berger said.
"The intent was to help make struggling associations whole, and collecting the full rent until the delinquency is paid off does that. Collecting only the monthly assessments while large sums remain unpaid does not."
Condo owners have countered that private rental arrangements are legal, contractual agreements between individual owners and tenants, and are therefore outside the purview of association control.
Berger's Community Action Network, which bills itself as the "leading advocate for the interests of millions of community association residents statewide," is pursuing other measures, as well, including:
- Exempting associations from joint and several liability under 718.116(1)(a) and 720.3085(2)(a) for past-due assessments when the association takes title to a property via foreclosure. Many banks arguethat associations are jointly and severally liable for past-due assessments when they take title to property via foreclosure.
- Setting quorum requirements for condominiums at the same 30 percent level found in the Homeowners Association Act and allow HOA owners to speak for three minutes on all agenda items at board meetings. CAN says condo association quorums are established by the governing documents and are usually no lower than a majority, making it difficult at times to achieve a quorum.
- Clarifying that cable television can be suspended for delinquent owners. Current statutory language does not make it clear whether or not cable is one of the common services that can be suspended when an owner is 90 or more days delinquent.
- Amending Section 718.113(5)(a) of the Condominium Act to provide that a majority of the members may vote to allow the board to install impact glass in the same manner in which a majority of the members may currently vote to allow the board to install hurricane shutters. According to CAN, many older high-rises are in desperate need of window replacementand find themselves unable to currently implement areplacement program undertheirgoverning documents.
- Requiring thatmembers in condominium associations with fewer than 50 units must be notified of a voluntary cancellation or nonrenewal of the association's liability coverage. "Condominium owners reasonably expect that their assessments will be applied toward insurance coverage on the building, among other things. If the owners have notice thatsuch coverage is at risk, they can take steps to correct the situation and protecttheir homes," Berger said.
- Carrying over the Election and Board Member Eligibility Requirements found in Chapter 718 (the Condominium Act) to Chapter 720 (the HOA Act)."This measure is needed to create more parity between the two common-interest ownership statutes and to ensure that convicted felons do not serve on HOA boards," CAN stated.
Berger said legislative sponsors have not been acquired, though she mentioned Rep. Matt Hudson, R-Naples, and state Sen. Ellyn Bogdonoff, R-Fort Lauderdale, as possibilities. Neither Hudson nor Bogdanoff responded to Sunshine State News' request for comment.
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Reach Kenric Ward at kward@sunshinestatenews.come or at (772) 801-5341.
