New Florida Law Allows HOAs To Grab Tenants' Rent From Maintenance Fee-Delinquent, Landlord-Owned Units Without Need To Go To Court
In Tallahassee, Florida, the Sarasota Herald Tribune reports:
- Gov. Charlie Crist signed into law a measure Tuesday that will allow Florida's beleaguered condominium associations to go after up to twice the amount of delinquent dues owed them. Condo associations had previously been limited to six months' worth in most cases. When the law takes effect on July 1, associations also will be able to deny owners who owe money access to pools or other common-ground amenities. [...] The new law is another government effort to help Florida's condo associations recover from a years-long slide in revenue from dues, plummeting unit values and declining occupancy rates as foreclosures ran rampant in the wake of the real estate downturn.
- The deflation of the market also was felt most strongly in the condo market, which has been hit by waves of defaults. Investors walked away from units bought at inflated prices and stopped paying dues. Association advocates claim that many banks have been slow to complete foreclosures to avoid having to pay back dues and maintenance costs, leading to a downward spiral.
- "For condominiums and homeowner associations struggling with very high delinquencies, this will allow them to collect rent from tenants in delinquent units and homes without having to go to court," said Donna D. Berger, executive director of the Community Advocacy Network. "For failed condominium conversion projects, this will hopefully encourage investment in these communities."
For the story, see Florida condo associations get power in dealing with foreclosures.