Florida Condo Associations Get Welcome Foreclosure Relief
Posted by Benjamin Dona on Thursday, June 3rd, 2010 at 12:24pm.
As was expected, Governor Crist signed the Distressed Condominium Relief Act on Tuesday. The new law expands the powers of community associations when it comes to dealing with delinquent unit owners and makes it easier for lenders to approve bulk sales on foreclosed units. It also repealed the requirement that individual unit owners carry additional hazard insurance above the association's policy.
The act is set to go into effect July 1st and hopefully will provide relief for Florida condominium and co-operative associations in several key areas by making the following changes.
- Doubles the amount of past due assessments that associations can collect from foreclosing lenders from 6 months to 12 months.
- Enables the association to collect rent from tenants residing in delinquent units.
- Allows for the suspension of common area use rights and voting rights of delinquent owners subject to notice and hearing requirements.
- Lets investors buy up distressed or abandoned condominiums in bulk (7 or more units) without being considered a developer.
The legislation also delays or removes (through exemptions and/or membership approvals) expensive condominium retrofits for sprinklers, elevators and smoke detectors that was previously required.
With a little luck, the new law will help stimulate Florida's depressed condominium real estate market and encourage investors to purchase units in beleaguered and floundering communities. Lord knows that associations struggling with very high delinquencies can certainly use the help.
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