Labor unions and a taxpayer are challenging a proposed state constitutional amendment that would give an extra property tax break to some homebuyers.
A Tallahassee judge has scheduled a final hearing Thursday in the lawsuit seeking to remove Amendment 3 from Florida’s November ballot.
The proposal, which the Legislature approved last year, would give people who have not owned a home for at least eight years an added – but temporary – homestead exemption on primary residences purchased on or after Jan. 1, 2010.
The Florida AFL-CIO and Jacksonville resident Brian K. Doyle say in their lawsuit that the title and summary are flawed because they don’t mention the purchase date.
The plaintiffs also argue the title says the added exemption is for “new homestead owners” and the summary refers to “a first-time homestead” despite the eight-year provision that allows previous homeowners to qualify.
Doyle would not qualify for the tax break and many union members are government employees paid from property taxes that would be cut by the amendment.
In a written response, the state says the title and summary accurately describe the proposal’s chief purpose and that the purchase date is the kind of detail not required by law.
The state also contends the terms “new homestead owners” and “first-time homestead” are commonly understood and that the eight-year provision is cited in the summary so it’s clear who can qualify for the tax break.
The amendment would give those homeowners an additional exemption of at least 25 percent in the first year. It would continue for four more years but be reduced incrementally each of those years.
The purpose is to reduce some of the disparity in taxes paid by recent purchasers and longtime homeowners who get more benefit from the Save Our Homes Amendment. That 1992 constitutional provision caps annual assessment increases at 3 percent for owners of primary homes, also known as homesteads.
The disparity only increased after voters approved another tax relief amendment in 2008 that lets homeowners take at least part of their Save Our Homes benefits with them when they move.
Another provision in Amendment 3 would lower a cap on annual assessment increases for businesses and other non-homestead properties from 10 percent to 5 percent.
It is one of five proposed amendments, out of nine slated for the Nov. 2 ballot, that are being challenged.
The Florida Supreme Court is considering two cases involving three proposals dealing with legislative and congressional redistricting. Two of those, Amendments 5 and 6, are citizen initiatives designed to curtail gerrymandering. The other, Amendment 7, was proposed by the Legislature to counteract the initiatives.
Amendment 9, which would block requirements for citizens to buy health insurance, also is being challenged. A Circuit Court hearing is set for July 29 in Tallahassee.
The Republican-controlled Legislature offered the proposal in response to passage of Democratic President Barack Obama’s national health care overhaul. Legal experts, though, say it cannot stand in the way of the new federal law although it could prevent the state from implementing a similar program.
That case and the tax relief challenge also are likely to end up in the Supreme Court.
Source: The Associated Press, Bill Kaczor, Associated Press writer.
Tuesday, July 20, 2010
Monday, July 19, 2010
New law shifts association fees from homeowner to renter
Under a new Florida law, homeowner association boards can go after renters for association fees when the homeowners fail to pay up.
The law has been attracting attention in Ponte Vedra Beach and elsewhere in the Beaches area because so many housing developments have homeowner associations.
“Associations are hemorrhaging,” said real estate attorney Barry Ansbacher, who represents the Marsh Landing homeowner association in Ponte Vedra Beach. “It’s not an isolated case anymore; there’s nobody that hasn’t been touched by this.”
Property owners are traditionally responsible for paying the fees, usually collected monthly or quarterly, to the associations. The fees are typically used to pay for common area maintenance in a residential development, legal and safety issues and enforcement of the covenants, conditions and restrictions set by the developer.
The law, which took effect July 1, says homeowner associations must notify renters that their payments should be paid directly to the association, not to a landlord who has failed to pay the organization.
Homeowners associations govern a subdivision, condominium or planned community. Some associations have lost thousands of dollars because of non-payment. That negatively impacts the upkeep of the community and future home values, said Anna Marks, president of May Management Services, a property management company in Ponte Vedra Beach.
“Their [associations’] job is to protect the asset of the community; if they can’t do this, then property values go down,” she said. “The associations need to be prepared for when the economy turns.”
Joe Ankiewicz, a senior client accounting manager for May Management, said the issue has been ongoing for about two years.
“There are some communities struggling to pay their bills on a week-to-week basis,” he said. “It’s gotten to the point where the Legislature had to come up with a statute.”
If the tenant is ordered to make a payment to the association, it counts as rent credit. The tenant pays the remaining balance to the landlord. For example, if a lease agreement calls for the renter to pay $600 a month including $100 association fees, traditionally they would have paid the whole amount to the landlord. Now, under the law, the tenant would pay the landlord $500 and the association $100.
When a renter is required to pay the association directly, they should keep a copy of the notice from the association seeking payment, as well as cancelled checks and/or receipts. If the landlord demands the entire $600, the tenant should send them copies of the documents and receipts showing their payments to the association.
“If the landlord files an eviction, it’s very important that the tenant doesn’t sit back and assume the payment to the association will protect them; they need to answer the eviction lawsuit,” Ansbacher said.
Typically, landlords who are not paying their mortgage are also not paying their association dues, officials said. Before people rent from a homeowner, they should seek documents showing that they are up to date on their mortgage payments and association dues.
“A prudent tenant raises the question whether the mortgage and association dues are current before signing the lease,” Ansbacher said.
Janice O’Connell, president of Amelia Mortgage in Nassau County, said delinquent owners can also affect bank financing for future owners looking to buy into the community.
“If the delinquency is more than 15 percent in [association] dues, then you can’t get a loan on the project no matter how great your credit score is,” she said. “This just happened to one of my clients two days ago.”
How much people pay monthly or quarterly depends on the community’s size and amenities, Marks said.
“It’s all over the board,” she said. “It could be low to extremely high.”
Also under the law, a tenant is not required to pay the association more than what they pay in rent. The law helps the tenant if they are doing what they’re supposed to do while the landlord isn’t, officials said.
“This cuts both ways, to avoid the association from having to foreclose the unit if the tenant is in place they can pay,” Ansbacher said.
Ponte Vedra Beaches Coalition member Clara Cowan said it’s about time the Legislature helped struggling associations by giving them some tools to work with. The coalition is a group of homeowner associations.
“Everybody’s struggling right now and that includes [associations],” she said. “Associations have bills to pay. When people don’t pay their bills, they are left in a lurch.”
Many questions about the bill remain unanswered, including whether associations can charge for the notice they issue to tenants and what their rights are if the owner files for bankruptcy, Ansbacher said.
“Any time you have a new law, you have people getting a feel for it,” he said.
If an association isn’t paid, they can file a lien on the house and foreclose on the property.
The bill doesn’t address mortgages, which means that a tenant can still be evicted if the homeowner fails to pay the mortgage holder.
Source: The Florida Times-Union, Jacksonville, Shakaya Andres. Distributed by McClatchy-Tribune Information Services.
The law has been attracting attention in Ponte Vedra Beach and elsewhere in the Beaches area because so many housing developments have homeowner associations.
“Associations are hemorrhaging,” said real estate attorney Barry Ansbacher, who represents the Marsh Landing homeowner association in Ponte Vedra Beach. “It’s not an isolated case anymore; there’s nobody that hasn’t been touched by this.”
Property owners are traditionally responsible for paying the fees, usually collected monthly or quarterly, to the associations. The fees are typically used to pay for common area maintenance in a residential development, legal and safety issues and enforcement of the covenants, conditions and restrictions set by the developer.
The law, which took effect July 1, says homeowner associations must notify renters that their payments should be paid directly to the association, not to a landlord who has failed to pay the organization.
Homeowners associations govern a subdivision, condominium or planned community. Some associations have lost thousands of dollars because of non-payment. That negatively impacts the upkeep of the community and future home values, said Anna Marks, president of May Management Services, a property management company in Ponte Vedra Beach.
“Their [associations’] job is to protect the asset of the community; if they can’t do this, then property values go down,” she said. “The associations need to be prepared for when the economy turns.”
Joe Ankiewicz, a senior client accounting manager for May Management, said the issue has been ongoing for about two years.
“There are some communities struggling to pay their bills on a week-to-week basis,” he said. “It’s gotten to the point where the Legislature had to come up with a statute.”
If the tenant is ordered to make a payment to the association, it counts as rent credit. The tenant pays the remaining balance to the landlord. For example, if a lease agreement calls for the renter to pay $600 a month including $100 association fees, traditionally they would have paid the whole amount to the landlord. Now, under the law, the tenant would pay the landlord $500 and the association $100.
When a renter is required to pay the association directly, they should keep a copy of the notice from the association seeking payment, as well as cancelled checks and/or receipts. If the landlord demands the entire $600, the tenant should send them copies of the documents and receipts showing their payments to the association.
“If the landlord files an eviction, it’s very important that the tenant doesn’t sit back and assume the payment to the association will protect them; they need to answer the eviction lawsuit,” Ansbacher said.
Typically, landlords who are not paying their mortgage are also not paying their association dues, officials said. Before people rent from a homeowner, they should seek documents showing that they are up to date on their mortgage payments and association dues.
“A prudent tenant raises the question whether the mortgage and association dues are current before signing the lease,” Ansbacher said.
Janice O’Connell, president of Amelia Mortgage in Nassau County, said delinquent owners can also affect bank financing for future owners looking to buy into the community.
“If the delinquency is more than 15 percent in [association] dues, then you can’t get a loan on the project no matter how great your credit score is,” she said. “This just happened to one of my clients two days ago.”
How much people pay monthly or quarterly depends on the community’s size and amenities, Marks said.
“It’s all over the board,” she said. “It could be low to extremely high.”
Also under the law, a tenant is not required to pay the association more than what they pay in rent. The law helps the tenant if they are doing what they’re supposed to do while the landlord isn’t, officials said.
“This cuts both ways, to avoid the association from having to foreclose the unit if the tenant is in place they can pay,” Ansbacher said.
Ponte Vedra Beaches Coalition member Clara Cowan said it’s about time the Legislature helped struggling associations by giving them some tools to work with. The coalition is a group of homeowner associations.
“Everybody’s struggling right now and that includes [associations],” she said. “Associations have bills to pay. When people don’t pay their bills, they are left in a lurch.”
Many questions about the bill remain unanswered, including whether associations can charge for the notice they issue to tenants and what their rights are if the owner files for bankruptcy, Ansbacher said.
“Any time you have a new law, you have people getting a feel for it,” he said.
If an association isn’t paid, they can file a lien on the house and foreclose on the property.
The bill doesn’t address mortgages, which means that a tenant can still be evicted if the homeowner fails to pay the mortgage holder.
Source: The Florida Times-Union, Jacksonville, Shakaya Andres. Distributed by McClatchy-Tribune Information Services.
Friday, July 9, 2010
Company hopes to profit by buying rights to unpaid condo fees
Steve Lippman's property management company runs 62 communities, and every one of those neighborhoods has homeowners who are behind on their association dues.
The cash crunch has associations cutting back on everything from landscaping to property management, but Lippman spotted opportunity amid the gloom. Earlier this year, he and two partners launched First Choice Financial Solutions, a company that pays condominium associations for their uncollected dues.
"My clients stopped paying me," Lippman said. "We had to think of something."
First Choice pays associations 75 percent of unpaid dues, then takes over collections of unpaid fees. The arrangement entitles First Choice to late fees, administrative fees and interest of up to 18 percent.
When a bank takes back a condo through foreclosure, it's required to pay up to six months of fees. Therefore, Lippman is confident that First Choice will get back the money it pays to associations.
"Eventually, we're going to get our money," Lippman said.
How quickly is another matter.
"We could literally be sitting there for years," he said.
Some associations have never attempted to collect unpaid fees, so Lippman finds that a simple collection letter can pry loose unpaid dues. Also urging homeowners to pay: As a licensed collection agency, First Choice can ding homeowners' credit.
"We're aggressively going after people, whereas the associations are doing nothing," Lippman said.
First Choice has bought hundreds of thousands of dollars in unpaid bills, Lippman said. The cash gives associations much-needed money, and Lippman is hoping for a healthy profit.
Source: The Palm Beach Post, Fla., Jeff Ostrowski. Distributed by McClatchy-Tribune Information Services.
The cash crunch has associations cutting back on everything from landscaping to property management, but Lippman spotted opportunity amid the gloom. Earlier this year, he and two partners launched First Choice Financial Solutions, a company that pays condominium associations for their uncollected dues.
"My clients stopped paying me," Lippman said. "We had to think of something."
First Choice pays associations 75 percent of unpaid dues, then takes over collections of unpaid fees. The arrangement entitles First Choice to late fees, administrative fees and interest of up to 18 percent.
When a bank takes back a condo through foreclosure, it's required to pay up to six months of fees. Therefore, Lippman is confident that First Choice will get back the money it pays to associations.
"Eventually, we're going to get our money," Lippman said.
How quickly is another matter.
"We could literally be sitting there for years," he said.
Some associations have never attempted to collect unpaid fees, so Lippman finds that a simple collection letter can pry loose unpaid dues. Also urging homeowners to pay: As a licensed collection agency, First Choice can ding homeowners' credit.
"We're aggressively going after people, whereas the associations are doing nothing," Lippman said.
First Choice has bought hundreds of thousands of dollars in unpaid bills, Lippman said. The cash gives associations much-needed money, and Lippman is hoping for a healthy profit.
Source: The Palm Beach Post, Fla., Jeff Ostrowski. Distributed by McClatchy-Tribune Information Services.
Thursday, July 1, 2010
Big changes to condo laws take effect today
A massive condominium bill addressing everything from fire sprinkler retrofits to incentives for moving excess condo inventory is among the real estate-related legislation taking effect today.
“Legislators introduced more than 50 bills this session dealing with some aspect of condominiums and condominium associations,” says John Sebree, vice president of public policy for the Florida Realtors®. “At the end of the day, there was one – SB 1196 by Sen. Mike Fasano (R-New Port Richey). We worked hard to make sure this 103-page bill contained at least two of the many changes sought by Realtors: incentives for buyers of multiple condo units and repealing the requirement that individual owners carry hazard insurance.”
The “bulk buyer” provision seeks to stimulate condo sales by enabling investors to purchase condo units in bulk (seven-plus units) without incurring the legal and financial liabilities of the original developer. The hazard insurance provision repeals a 2008 law requiring unit owners to provide proof of insurance every year. If a unit owner failed to provide a certificate of insurance, the association was allowed to purchase insurance on the owner’s behalf and assess the unit owner for the cost of the insurance.
SB 1196 also specifies that:
• Florida law no longer requires owners to purchase individual unit owner insurance coverage, though it could still be required by lenders or through the Declaration of Condominium;
• Associations of condos over 75 feet high aren’t required to retrofit sprinkler systems;
• Lenders must pay more of past-due assessments on foreclosed properties;
• Associations may deny owners or occupants the use of common areas and recreational amenities when the owner is more than 90 days delinquent in paying financial obligations due to the association; and
• Associations may divert tenant rents to pay for delinquent assessments owed by unit owners.
Other laws taking effect today that impact real estate transactions or real estate practitioners provide that:
• Documentary stamp taxes on short sales are based on the purchase price, not on the amount of the outstanding mortgage balance. HB 109 by Rep. Evan Jenne (D-Fort Lauderdale) codifies into law a similar ruling in 2008 by the Florida Department of Revenue.
• Real estate and appraiser instructors and real estate school permit holders may serve on the Florida Real Estate Commission and the Florida Real Estate Appraisal Board under HB 713 by Rep. Ritch Workman (R-Melbourne).
• Home inspectors, mold assessors and mold remediators must be licensed by the state effective July 1, 2010. All applicants are required to complete a 120-hour course. But the Department of Business and Professional Regulation (DBPR) lacked authority to approve the course until July 1. Consequently, the DBPR says it won’t enforce the licensing requirements until July 1, 2011. Visit the department website [http://www.myfloridalicense.com/dbpr/pro/homein/happens.html] for details. On a related note, HB 663 by Rep. Gary Aubuchon (R-Coral Springs) allows these inspectors, as well as appraisers and real estate brokers and sales associates, to take distance learning courses to satisfy pre-license and post-license requirements. A grandfather clause allows some inspectors to get a license without taking the course, providing they’ve conducted at least 120 previous inspections over the past three years.
• More housing choices for individuals with disabilities. SB 1166 by Sen. Thad Altman (R-Melbourne) removes, among other things, a requirement that community residential homes for disabled persons be located 1,000 feet from each other within planned residential communities.
Source: Florida Realtors®
“Legislators introduced more than 50 bills this session dealing with some aspect of condominiums and condominium associations,” says John Sebree, vice president of public policy for the Florida Realtors®. “At the end of the day, there was one – SB 1196 by Sen. Mike Fasano (R-New Port Richey). We worked hard to make sure this 103-page bill contained at least two of the many changes sought by Realtors: incentives for buyers of multiple condo units and repealing the requirement that individual owners carry hazard insurance.”
The “bulk buyer” provision seeks to stimulate condo sales by enabling investors to purchase condo units in bulk (seven-plus units) without incurring the legal and financial liabilities of the original developer. The hazard insurance provision repeals a 2008 law requiring unit owners to provide proof of insurance every year. If a unit owner failed to provide a certificate of insurance, the association was allowed to purchase insurance on the owner’s behalf and assess the unit owner for the cost of the insurance.
SB 1196 also specifies that:
• Florida law no longer requires owners to purchase individual unit owner insurance coverage, though it could still be required by lenders or through the Declaration of Condominium;
• Associations of condos over 75 feet high aren’t required to retrofit sprinkler systems;
• Lenders must pay more of past-due assessments on foreclosed properties;
• Associations may deny owners or occupants the use of common areas and recreational amenities when the owner is more than 90 days delinquent in paying financial obligations due to the association; and
• Associations may divert tenant rents to pay for delinquent assessments owed by unit owners.
Other laws taking effect today that impact real estate transactions or real estate practitioners provide that:
• Documentary stamp taxes on short sales are based on the purchase price, not on the amount of the outstanding mortgage balance. HB 109 by Rep. Evan Jenne (D-Fort Lauderdale) codifies into law a similar ruling in 2008 by the Florida Department of Revenue.
• Real estate and appraiser instructors and real estate school permit holders may serve on the Florida Real Estate Commission and the Florida Real Estate Appraisal Board under HB 713 by Rep. Ritch Workman (R-Melbourne).
• Home inspectors, mold assessors and mold remediators must be licensed by the state effective July 1, 2010. All applicants are required to complete a 120-hour course. But the Department of Business and Professional Regulation (DBPR) lacked authority to approve the course until July 1. Consequently, the DBPR says it won’t enforce the licensing requirements until July 1, 2011. Visit the department website [http://www.myfloridalicense.com/dbpr/pro/homein/happens.html] for details. On a related note, HB 663 by Rep. Gary Aubuchon (R-Coral Springs) allows these inspectors, as well as appraisers and real estate brokers and sales associates, to take distance learning courses to satisfy pre-license and post-license requirements. A grandfather clause allows some inspectors to get a license without taking the course, providing they’ve conducted at least 120 previous inspections over the past three years.
• More housing choices for individuals with disabilities. SB 1166 by Sen. Thad Altman (R-Melbourne) removes, among other things, a requirement that community residential homes for disabled persons be located 1,000 feet from each other within planned residential communities.
Source: Florida Realtors®
Friday, June 25, 2010
Drywall settlement expected in Homestead
Two companies in a class-action case over defective Chinese drywall in Homestead houses are willing to pay $6 million to settle the case.
South Kendall Construction and an affiliate, Palm Isles Holdings, will pay $4 million, and Keys Gate Realty will pay $2.6 million to homeowners if the offer is approved in court.
Jason and Melissa Harrell, who bought a two-story house in a Homestead neighborhood built by South Kendall Construction in 2008, sued last year in Miami-Dade Circuit Court after they found imported drywall was the source of the smell in their home and the cause of appliances failing repeatedly. Their case was granted class-action status last month.
"The settlements are fair and reasonable," said the Harrells' attorney, Victor Diaz. But the couple and other parties in the class aren't yet whole. "They do not fully compensate the plaintiffs for their injuries."
Separately, he will pursue a suit against Banner Supply, which provided the drywall used in the Harrells' home, drywall manufacturer Knauf Plasterboard Tianjin, importer La Suprema and exporter Rothchilt International. Last week, a Miami-Dade jury found those parties liable for $2.5 million in damages and expenses for a Coconut Grove couple whose home was ruined by drywall emissions.
Notices to the 152 families eligible to join the Harrells' class-action suit – residents of Palm Isle Estates, Arbor Park and Augusta Greens – are expected to be mailed Thursday.
The agreement in the Harrells' case would be the second settlement reached over Chinese drywall recently. Last week, drywall manufacturer Knauf Plasterboard Tianjin settled with two Louisiana homeowners whose cases were set for trial this week in federal court in Louisiana.
Paul and Celeste Clement and John Campbell own property in Louisiana that contain KPT drywall. The settlement calls for KPT to hire a contractor to remove drywall and repair the plaintiffs' homes in select areas.
The repair costs will be negotiated with the contractor, so the settlement isn't for a specific amount.
Campbell and the Clements will also get small cash payments for relocation expenses, lost rental income – Campbell's property is a duplex – and attorneys' fees.
"This settlement proves that KPT is willing to stand by its product, work broadly with those impacted by its drywall and settle on reasonable repairs," KPT attorney Steve Glickstein said.
Diaz said he thinks the settlements represent a new phase in Chinese drywall litigation – which includes thousands of lawsuits from homeowners all over the country.
"I hope other defendants will realize it's much better to settle than to go in front of a jury," he said.
Source: The Miami Herald, Nirvi Shah. Distributed by McClatchy-Tribune Information Services.
South Kendall Construction and an affiliate, Palm Isles Holdings, will pay $4 million, and Keys Gate Realty will pay $2.6 million to homeowners if the offer is approved in court.
Jason and Melissa Harrell, who bought a two-story house in a Homestead neighborhood built by South Kendall Construction in 2008, sued last year in Miami-Dade Circuit Court after they found imported drywall was the source of the smell in their home and the cause of appliances failing repeatedly. Their case was granted class-action status last month.
"The settlements are fair and reasonable," said the Harrells' attorney, Victor Diaz. But the couple and other parties in the class aren't yet whole. "They do not fully compensate the plaintiffs for their injuries."
Separately, he will pursue a suit against Banner Supply, which provided the drywall used in the Harrells' home, drywall manufacturer Knauf Plasterboard Tianjin, importer La Suprema and exporter Rothchilt International. Last week, a Miami-Dade jury found those parties liable for $2.5 million in damages and expenses for a Coconut Grove couple whose home was ruined by drywall emissions.
Notices to the 152 families eligible to join the Harrells' class-action suit – residents of Palm Isle Estates, Arbor Park and Augusta Greens – are expected to be mailed Thursday.
The agreement in the Harrells' case would be the second settlement reached over Chinese drywall recently. Last week, drywall manufacturer Knauf Plasterboard Tianjin settled with two Louisiana homeowners whose cases were set for trial this week in federal court in Louisiana.
Paul and Celeste Clement and John Campbell own property in Louisiana that contain KPT drywall. The settlement calls for KPT to hire a contractor to remove drywall and repair the plaintiffs' homes in select areas.
The repair costs will be negotiated with the contractor, so the settlement isn't for a specific amount.
Campbell and the Clements will also get small cash payments for relocation expenses, lost rental income – Campbell's property is a duplex – and attorneys' fees.
"This settlement proves that KPT is willing to stand by its product, work broadly with those impacted by its drywall and settle on reasonable repairs," KPT attorney Steve Glickstein said.
Diaz said he thinks the settlements represent a new phase in Chinese drywall litigation – which includes thousands of lawsuits from homeowners all over the country.
"I hope other defendants will realize it's much better to settle than to go in front of a jury," he said.
Source: The Miami Herald, Nirvi Shah. Distributed by McClatchy-Tribune Information Services.
Thursday, June 24, 2010
Gov. Crist signs massive condo bill today
Gov. Charlie Crist traveled to South Florida today to ceremonially sign this year’s massive condo bill, SB 1196. The bill, among other things, exempts some elevators from code requirements, revises voting laws for condo associations, and makes changes to loss assessment coverage.
Crist officially signed the bill into law June 1.
About SB 1196
At the beginning of this year’s session of the Florida Legislature, at least 50 bills addressed condo issues – everything from fire sprinkler retrofits to enticing investors in an effort to move excess condo inventory. At the end, a single 103-page bill encompassed many of the reforms: SB 1196 by Sen. Mike Fasano (R- New Port Richey).
The new law includes Florida Realtors-supported “bulk buyer” language that seeks to reduce inventory levels by encouraging investors to purchase blocks of condo units. It’s accomplished, in part, by protecting bulk buyers from some of the liabilities faced by condo developers.
Other provisions in SB 1196
• Lowers the cost of condo-ownership by repealing a requirement that owners purchase individual unit owner insurance coverage.
• Removes the requirement for mandatory retrofits of sprinkler systems in condos over 75 feet high.
• Requires lenders to pay more in past-due assessments on foreclosed properties.
• Allows associations to deny owners or occupants the use of common areas and recreational amenities when the owner is more than 90 days delinquent in paying financial obligations due to the association.
• Allows associations to divert rent paid by a tenant and use it to pay delinquent assessments owed by that unit’s owner.
© 2010 Florida Realtors®
Crist officially signed the bill into law June 1.
About SB 1196
At the beginning of this year’s session of the Florida Legislature, at least 50 bills addressed condo issues – everything from fire sprinkler retrofits to enticing investors in an effort to move excess condo inventory. At the end, a single 103-page bill encompassed many of the reforms: SB 1196 by Sen. Mike Fasano (R- New Port Richey).
The new law includes Florida Realtors-supported “bulk buyer” language that seeks to reduce inventory levels by encouraging investors to purchase blocks of condo units. It’s accomplished, in part, by protecting bulk buyers from some of the liabilities faced by condo developers.
Other provisions in SB 1196
• Lowers the cost of condo-ownership by repealing a requirement that owners purchase individual unit owner insurance coverage.
• Removes the requirement for mandatory retrofits of sprinkler systems in condos over 75 feet high.
• Requires lenders to pay more in past-due assessments on foreclosed properties.
• Allows associations to deny owners or occupants the use of common areas and recreational amenities when the owner is more than 90 days delinquent in paying financial obligations due to the association.
• Allows associations to divert rent paid by a tenant and use it to pay delinquent assessments owed by that unit’s owner.
© 2010 Florida Realtors®
Tuesday, June 22, 2010
Drywall maker loses case, settles others
A Chinese maker of toxic drywall lost a case in Florida state court and agreed to settle two Louisiana cases before going to trial. The events could impact future drywall cases and settlements.
Florida
A Miami state court awarded a Coconut Grove family over $2.4 million in a case that could set a standard for future lawsuits. Armin Seifart and Lisa Gore sued Banner Supply, a building material supplier in the first trial to be heard by a jury.
In the lawsuit, Seifart and Gore claimed that Banner knew it was selling defective drywall, which smells like sulfur and corrodes appliances, wiring and other metal. During the trial, Banner’s attorneys claimed that the supplier did not realize the extent of the problem, thinking it was limited to a small amount of drywall.
In its ruling, the Miami-Dade Circuit Court jury found Banner negligent and in violation of Florida’s deceptive and unfair trade law. The court found Banner 55 percent liable; Knauf Plasterboard Tianjin Co. Ltd., the manufacturer, 35 percent liable; and the importer and shipper 5 percent liable each.
Louisiana
Knauf, one of several companies responsible for manufacturing defective Chinese drywall and the company involved in the Florida case, agreed to settle two Louisiana cases that were set to go to trial on Monday, June 21, in U.S. District Court.
The cases involved two homes built with Chinese drywall manufactured by Knauf Tianjin. They were pending in federal court before Judge Eldon E. Fallon and part of multi-district litigation involving thousands of similarly situated homeowners.
According to Dan Bryson, a member of the plaintiffs’ trial team, settlement details are still being negotiated, but are expected to include full removal and replacement of the problematic drywall, all corroded metal and HVAC components, and compensation for the owners’ out-of-pocket expenditures during remediation.
Source: Florida Realtors®
Florida
A Miami state court awarded a Coconut Grove family over $2.4 million in a case that could set a standard for future lawsuits. Armin Seifart and Lisa Gore sued Banner Supply, a building material supplier in the first trial to be heard by a jury.
In the lawsuit, Seifart and Gore claimed that Banner knew it was selling defective drywall, which smells like sulfur and corrodes appliances, wiring and other metal. During the trial, Banner’s attorneys claimed that the supplier did not realize the extent of the problem, thinking it was limited to a small amount of drywall.
In its ruling, the Miami-Dade Circuit Court jury found Banner negligent and in violation of Florida’s deceptive and unfair trade law. The court found Banner 55 percent liable; Knauf Plasterboard Tianjin Co. Ltd., the manufacturer, 35 percent liable; and the importer and shipper 5 percent liable each.
Louisiana
Knauf, one of several companies responsible for manufacturing defective Chinese drywall and the company involved in the Florida case, agreed to settle two Louisiana cases that were set to go to trial on Monday, June 21, in U.S. District Court.
The cases involved two homes built with Chinese drywall manufactured by Knauf Tianjin. They were pending in federal court before Judge Eldon E. Fallon and part of multi-district litigation involving thousands of similarly situated homeowners.
According to Dan Bryson, a member of the plaintiffs’ trial team, settlement details are still being negotiated, but are expected to include full removal and replacement of the problematic drywall, all corroded metal and HVAC components, and compensation for the owners’ out-of-pocket expenditures during remediation.
Source: Florida Realtors®
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