Beleaguered condominium associations, weighed down by foreclosed units and delinquent owners, are seeking relief from renters.
At least five bills before the Florida Legislature contain provisions that would empower associations to collect past, present and future fees from tenants.
"Associations are in a state of crisis. These bills would give teeth and statutory authority to them," says Gary Poliakoff, partner with the law firm of Becker & Poliakoff in Fort Lauderdale.
As associations curtail services and are themselves tardy in making their own insurance payments, they're looking for cash flow. It grates on them that rented units continue to generate income for absentee owners who are months or years in arrears on association dues.
Senate Bills 1196 and 1222, authored by Sens. Mike Fasano, R-New Port Richey, and Jeremy Ring, D-Margate, would put associations first in line to collect those back dues, and keep payments current. The bills provide:
- "That if a unit is occupied by a tenant and that unit owner is delinquent in the payment of any monetary obligation to the association, the association may demand that the tenant pay to the association the future monetary obligations related to the condominium unit."
- "That the association may sue for eviction as if the association were the landlord if the tenant fails to pay a required assessment to the association."
Valerie Saunders, president of the Florida Association of Mortgage Brokers, understands the associations' predicament -- to a point.
"They're looking for any possible way to recoup their losses. But, this seems to be putting them before real-estate taxes and municipal liens," she said.
Not to mention mortgage lenders and banks.
While associations hope the legislation will shore up their bottom line, Rep. Ritch Workman, R-Melbourne, says, "They should be careful what they ask for."
Though he is "100 percent behind" associations getting tenants into vacated units and collecting rent -- as allowed in certain large condo community bylaws -- Workman says a garnishment program could scare off lenders.
Saunders agrees.
"I can't imagine a mortgage company doing business with these kinds of rules when associations aren't entitled and have no valid position," she says.
Poliakoff says the new rent rules -- also incorporated into House Bills 115 and 337 and Senate Bill 864 -- will help level the field for smaller associations that don't have such authority written into their bylaws.
Noting that bylaw changes can be "overwhelming," Workman says changing state statutes will "make it easier" for associations to deal with delinquent and foreclosed units.
But, there's also a downside. With greater authority to collect funds comes larger administrative overhead and potentially greater legal liability.
"As I said, associations should be careful what they ask for," Workman said.
Or, to prove Poliakoff's point: "Condominiums are a magnet for legislation."
Contact Kenric Ward at kward@sunshinestatenews.com or (772) 559-4719.
