Friday, February 5, 2010

What can you do to make lenders shoulder more of the burden in your community?

The 2010 Regular Legislative Session will convene on Tuesday, March 2nd and is scheduled to run through Friday, April 30th. Noon of opening day is the deadline for legislators to file bills. That being said, there are already 44 bills that have already been filed that have the ability to impact your private residential community.

Many of these bills contain very positive changes for community association members; some require further modification and a few will have to be defeated in order to avoid detrimental impact to associations.

There are several bills that would allow associations to collect rent directly from tenants in delinquent units. There are several bills that will allow condominium boards to suspend the common area use rights of delinquent owners. Many bills this session are rightfully looking to require lenders to shoulder more of the financial burden currently being carried by paying association members. Several of the lender reform bills attempt to do the following:

* Increase a lender’s statutory cap for condominium associations from the current 6 months to 12 months!
* Require a lender to pay the statutory cap up front upon filing its foreclosure action.
* Require the lender to pay for any special assessments levied by the board throughout the course of the lender’s foreclosure action to pay for uninsured losses (i.e. deductible) as well as to pay for any repairs needed as a result of a casualty or other act of God.
* Remove the statutory cap for lenders entirely.

The Florida Bankers Association is a very strong lobby in the State of Florida. Not all of the above proposals will pass. However, in order to ensure that something positive passes this year for your association you must mobilize your members to contact their legislators and let them know they expect their support to pass bills that are needed to return community associations to a sounder financial footing in 2010!

Lastly, I will be speaking at a meeting open to the General Public on Tuesday, February 9th at 7:00 pm at the Environ Cultural Center, 3800 Environ Blvd. Lauderhill, FL. We will be discussing many of the items which I blog about including the collection crisis, pending legislation and the upcoming statute of limitations on Hurricane Wilma claims. I hope you can join me at this meeting. For more information please call 954-731-4022 or contact my assistant, Diane, at dschick@kgrlawfirm.com.

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