The shock of profoundly higher insurance premiums is hitting thousands of coastal homeowners.
Gary and Janice Gilbert were expecting bad news when insurer USAA told them the policy for their home just north of Wilmington would jump about 20 percent if the Gilberts wanted to renew it in July. The state insurance commissioner had approved rate increases of up to 30 percent in New Hanover County, so it could have been worse. Then, two weeks ago came another letter from USAA that said the added coverage for wind damage that could come from a hurricane would climb from $865 to $1,407.
The couple had never filed an insurance claim for the home they built five years ago about three miles inland from the Intracoastal Waterway, holding off until the day they might really need an insurer’s help to rebuild after a big storm, Gary Gilbert, 68, said Monday.
“I just don’t understand what has happened to cause our insurance to go up” by an average of $45 a month, said Gilbert, who collects a military pension he earned after 28 years in the active Air National Guard. “I don’t make many decisions any more that would cost me $45 a month.”
As investment nest eggs and property values have declined in this recession, coastal homeowners like the Gilberts are taking a further financial hit because of where they live.
Insurance companies spooked by warnings that the Atlantic and Gulf coasts may be in a period of intensified hurricane activity lasting for years have demanded much higher rates to cover their expected risk. In states where companies haven’t received the rates hikes they believe they needed, some have pulled back on coverage or entirely out of markets.
Eight of the 10 costliest Atlantic hurricanes in U.S. history have hit since 2004, according to the Insurance Information Institute, including Katrina, Wilma and Rita. Since then, insurers sought to cut their losses.
In South Carolina, coastal property insurance premiums rose as much as 400 percent and insurers told as many as 30,000 homeowners their policies would be canceled. The state expanded its wind pool insurance program in areas where private insurers don’t offer protection.
In Florida, which has the country’s highest hurricane risk, fleeing insurers and skyrocketing rates forced the state to create the Citizens Property Insurance Corp. for consumers who couldn’t get coverage on the private market. Citizens is now Florida’s largest property insurer, with more than 1 million policies.
The problem involving the broader coastal insurance market comes as North Carolina lawmakers look for a way to get more insurance companies interested in issuing policies while reducing the liabilities and reliance on the state-created but independently run coastal insurance program called the Beach Plan. The solutions, outlined in legislation scheduled for a further hearing on Tuesday, involve cutting the Beach Plan’s coverage and raising rates.
The Beach Plan now covers about 166,000 homes in 18 coastal counties. Its total liabilities are nearly $74 billion, but its ability to pay claims tops out at about $2.4 billion, including about $1 billion charged to dozens of insurance companies that do business in North Carolina but may not insure coastal property. A bad hurricane season that pushes claims above that level would mean unlimited assessments against insurers.
The resulting incentive has been for insurers to limit their business in North Carolina. And companies have dropped wind and hail coverage or raised it to levels above what the Beach Plan would charge.
The result is an insurance market so concentrated that four insurance companies – Nationwide, North Carolina Farm Bureau Mutual, State Farm and military-specialized USAA – collected almost 80 percent of the premiums for full homeowners insurance policies on the barrier islands in 2007, the most recent period for which data is available, according to state Insurance Department figures. The four companies also collected two-thirds of the policy premiums in the 18-county coastal zone in 2007.
“I am not happy with any insurance increases but I fully understand that these increases are inevitable. However, I am dismayed at not only the huge increases but also at the lack of being able to shop around for the best rates,” said Jerome Gundrum of mainland Sneads Ferry, where he runs an ice cream and sandwich shop catering to tourists on the barrier island communities on Topsail Island.
Still Gundrum said he found success after two days calling around to insurance agents for a policy for Dr. Root Beer’s Hall of Foam, which he runs out of a former cinderblock gas station built in the 1950s. Nationwide agreed to write his business-owners’, wind and hail, and liability policies at a price 50 percent lower than his previous carrier, he said.
But he’s had to skip wind coverage for his other sandwich shop in North Myrtle Beach, S.C., and accept the risk of a big loss if a hurricane hits that shop.
“It was way, way more than I could afford,” Gundrum said.
Source: AP
Tuesday, June 30, 2009
Monday, June 29, 2009
Data suggest more moving out of Fla.
Once the dream of many a retiree and young person seeking to live in paradise, the prospect of living in Florida seems to be less attractive in the current economic downturn.
Data from moving companies and the Florida Department of Motor Vehicles suggest that fewer people are moving to the state and, at the very least, an equal number of residents are moving out.
Atlas Van Lines moved a total of 5,277 households into the state in 2008, but moved out 6,367 households, according to the moving company’s migration study.
Those numbers compare with the 9,069 households moving into Florida and the 7,180 moving out in 2004, when the state’s real estate market was just heating up.
Locally, 43 households moved out of Bradenton and 19 moved in between Jan. 1 and June 22 of this year, according to Atlas officials.
In a similar study, United Van Lines designated Florida a “balanced” state, meaning roughly as many households moved in as out in 2008. During the year, 13,487 households moved in and 13,470 moved out, according to the study.
The number of out-of-state driver’s license applications in Florida also dropped by 30 percent in a five-year period, from 585,000 in 2003 to 410,000 in 2008.
These figures don’t surprise Bob Bartz, president of the Manatee Chamber of Commerce.
“I think it’s a reflection of the current economic times,” Bartz said. “It’s anticipated that once people are back in a position where they can sell their homes where they currently live, they will still have a desire to live in Florida. But it appears that people in the Midwest and Northeast are unable to sell their homes.”
Bartz noted that Manatee is still feeling the effects of the rampant real estate speculation that took place during the county’s housing boom.
“I think this area got caught up more than other areas in the country,” Bartz said. “All the speculation that took place, and then the quick turnaround, caught up with us. It’s something that’s going to take some time to work out.”
According to the United study, the mid-Atlantic states received the most out-of-state relocations. Sixty-two percent of moves in the District of Columbia were from out-of-state people moving in. That figure was 58.2 percent for North Carolina and 56.4 percent for South Carolina.
Michigan led the out-bound moves in the country, with 67.1 percent of moving van hauls to other states. Indiana followed with 57 percent out-bound moves, and New York was in third place in terms of emigration, with 55 percent of moves heading to other states.
Not everyone puts stock in the data, however.
Miranda Oswald, vice president of sales and marketing with Lakewood Ranch Communities, said moving van records and driver’s license applications probably don’t take into account a significant segment of her market: purchasers of second homes.
Oswald said 1,700 people came through her office looking for homes in the first quarter this year. Roughly 18 percent of those potential clients were looking for second homes, Oswald said.
Out of 55 total sales this year of new product in Lakewood Ranch, 28 of the buyers were from in-state and 27 were from out of state. Of the out-of-state buyers, nine of them – or one-third – were second homes, Oswald said.
“They might not be moving furniture from one place to another,” Oswald said. “So a second-home buyer would not show up in either of those statistics.”
Don Schroder is more in the neutral migration camp.
The former chairman of the Anna Maria Island Chamber of Commerce and Realtor with RE/MAX Alliance thinks the tide is about to turn.
“I think we’ve kind of gone into the neutral position now,” Schroder said. “But I think people are coming back. Our market is so deflated that we’re a tremendous buy.”
Schroder said he’s also starting to see renewed interest from foreign and Canadian buyers.
Although Manatee County’s unemployment has soared from around 3 percent three years ago to 11.1 percent in May, Schroder notes the county still provides beautiful beaches and the Florida way of life that people are willing to seek out.
“There’s a lot of heartache out there,” Schroder said. “But there are also a lot of people who are making a go of it.”
Copyright © 2009 The Bradenton Herald, Fla
Data from moving companies and the Florida Department of Motor Vehicles suggest that fewer people are moving to the state and, at the very least, an equal number of residents are moving out.
Atlas Van Lines moved a total of 5,277 households into the state in 2008, but moved out 6,367 households, according to the moving company’s migration study.
Those numbers compare with the 9,069 households moving into Florida and the 7,180 moving out in 2004, when the state’s real estate market was just heating up.
Locally, 43 households moved out of Bradenton and 19 moved in between Jan. 1 and June 22 of this year, according to Atlas officials.
In a similar study, United Van Lines designated Florida a “balanced” state, meaning roughly as many households moved in as out in 2008. During the year, 13,487 households moved in and 13,470 moved out, according to the study.
The number of out-of-state driver’s license applications in Florida also dropped by 30 percent in a five-year period, from 585,000 in 2003 to 410,000 in 2008.
These figures don’t surprise Bob Bartz, president of the Manatee Chamber of Commerce.
“I think it’s a reflection of the current economic times,” Bartz said. “It’s anticipated that once people are back in a position where they can sell their homes where they currently live, they will still have a desire to live in Florida. But it appears that people in the Midwest and Northeast are unable to sell their homes.”
Bartz noted that Manatee is still feeling the effects of the rampant real estate speculation that took place during the county’s housing boom.
“I think this area got caught up more than other areas in the country,” Bartz said. “All the speculation that took place, and then the quick turnaround, caught up with us. It’s something that’s going to take some time to work out.”
According to the United study, the mid-Atlantic states received the most out-of-state relocations. Sixty-two percent of moves in the District of Columbia were from out-of-state people moving in. That figure was 58.2 percent for North Carolina and 56.4 percent for South Carolina.
Michigan led the out-bound moves in the country, with 67.1 percent of moving van hauls to other states. Indiana followed with 57 percent out-bound moves, and New York was in third place in terms of emigration, with 55 percent of moves heading to other states.
Not everyone puts stock in the data, however.
Miranda Oswald, vice president of sales and marketing with Lakewood Ranch Communities, said moving van records and driver’s license applications probably don’t take into account a significant segment of her market: purchasers of second homes.
Oswald said 1,700 people came through her office looking for homes in the first quarter this year. Roughly 18 percent of those potential clients were looking for second homes, Oswald said.
Out of 55 total sales this year of new product in Lakewood Ranch, 28 of the buyers were from in-state and 27 were from out of state. Of the out-of-state buyers, nine of them – or one-third – were second homes, Oswald said.
“They might not be moving furniture from one place to another,” Oswald said. “So a second-home buyer would not show up in either of those statistics.”
Don Schroder is more in the neutral migration camp.
The former chairman of the Anna Maria Island Chamber of Commerce and Realtor with RE/MAX Alliance thinks the tide is about to turn.
“I think we’ve kind of gone into the neutral position now,” Schroder said. “But I think people are coming back. Our market is so deflated that we’re a tremendous buy.”
Schroder said he’s also starting to see renewed interest from foreign and Canadian buyers.
Although Manatee County’s unemployment has soared from around 3 percent three years ago to 11.1 percent in May, Schroder notes the county still provides beautiful beaches and the Florida way of life that people are willing to seek out.
“There’s a lot of heartache out there,” Schroder said. “But there are also a lot of people who are making a go of it.”
Copyright © 2009 The Bradenton Herald, Fla
Renter affordability worsens over the decade
The financial plight of the nation’s 34 million renters has deteriorated rapidly since the beginning of the decade, yet they are rarely included in conversations about housing affordability.
Research shows 50 percent of all renters now spend at least 30 percent of their before-tax income on rent and utility payments. That’s up from about 40 percent in 2000, according to an analysis by the Associated Press. One in four shell out more than half of their income to cover those expenses, up from one in five.
And the AP’s analysis of census data through 2007, the latest available, doesn’t include the effects of the recession, which hammer renters harder than homeowners. Tough economic times also disproportionately affect minorities and the less educated – both groups are more likely to be financially burdened renters.
“In the next year or so, we’re going to see growing numbers of people who are literally homeless because they can’t afford their own home,” said Sheila Crowley, the president and CEO of the National Low Income Housing Coalition.
The median rent, including utilities, rose 7 percent to $775 between 2000 and 2007. But the increase felt worse because renters saw their median income drop 7 percent to $29,000 during that time.
After paying the landlord, what’s left for severely cost-burdened renters is a scant amount for the other basics of living like food, health care and clothing. Forget luxuries like transportation, retirement accounts, let alone a downpayment on a house.
“They sacrifice basic household stuff you and I take for granted like hygiene products and detergent. Money for laundry,” said Cicely Dove, the director family housing at Crossroads, an emergency housing shelter in Providence, R.I.
Government funding for renter assistance has been stagnant since 2000. At the same time, the number of affordable apartments has been shrinking and the cost of building new ones rarely pencils out.
During the past six years, about 3 million affordable apartments were destroyed, converted to for-sale condos or upgraded to higher-priced rental units, according to census data released this week.
The waiting lists for Housing Choice vouchers, formerly known as Section 8, are years long in many cities. The program currently serves 2 million families. Renters in this program put 30 percent of their income to rent and the voucher makes up the difference. As the economy worsens, voucher recipients are contributing less money. The program must make up the difference, which means reducing the number of new recipients, said Donna White, spokeswoman at the Housing and Urban Development Department. Fewer are moving onto self-sufficiency too, White said.
The federal Low Income Housing Tax Credit, which encourages developers to build affordable housing, has little funding because investors who buy these tax credits have disappeared, said Eric Belsky, executive director of Harvard University’s Joint Center for Housing Studies.
The National Housing Trust Fund created last July to increase the supply of affordable housing remains empty. Funds were supposed to come from Fannie Mae and Freddie Mac, but the government seized control of the companies five weeks later and has so far pumped $85 billion into them to keep them afloat.
“The problems here are costly to address. We’re going to see it get worse and create more hardships with renters spending less on pensions, savings and health care,” Belsky said. “These things cost us down the road.”
Hints of hope, however, are emerging as the country moves away from the homeownership mantra and recasts its housing priorities. President Barack Obama’s recent budget includes $1 billion for the National Housing Trust Fund and another $1.6 billion for 200,000 new housing vouchers.
But housing experts say that is nowhere enough to make a dent in the problem:
Sixty percent of single parents and senior citizens who rent spend at least 30 percent of their income on housing costs, while a third pay at least half.
Blacks and Hispanics face similar challenges. The unemployment rates for blacks and Hispanics are both outpacing the national rate and 30 percent of black renters and 27 percent of Hispanic renters spend half or more of their income on housing. This is happening at the same time that the foreclosure crisis batters these two groups the most.
Indiana is the least affordable for black renters, where 43 percent pay at least half their income to housing expenses. And a third of Hispanic renters in Massachusetts spend 50 percent of their income on rent and utilities, the worst showing in the country for Hispanics.
The least affordable areas for renters are the Deep South, the once red-hot housing states like California and Florida, and the beleaguered Midwest manufacturing states. But places like Hawaii and Vermont also rank high on the list.
Now the recession adds another obstacle.
The unemployment rate shot up to a 25-year high of 9.4 percent in May, but that percentage is even higher for those without a high school degree – almost 16 percent – and who are more likely to be renters. They predominantly work in service industries, clearing restaurant tables, cleaning homes and offices and taking care of children and elderly parents.
“We’re talking about the person who makes your latte in the morning,” said Crowley of the National Low Income Housing Coalition.
People cope with these housing situations by crowding in with family or friends or living in substandard housing or in dangerous neighborhoods. Others flock to shelters, and, in the worst cases, they sleep on the streets. For those who strain to make the rent, they are often one medical bill or car repair away from homelessness.
If affordability issues facing renters aren’t addressed, there will be social and economic consequences. Children of low-income renters who are forced to move multiple times usually fall behind in school, and later replace their parents as low-income renters. These renters will drag the nation as it faces other costly issues like Social Security, health care, ongoing wars and repairing a broken economy.
“In the long run, a society that doesn’t attend to fundamental human needs won’t succeed,” Crowley said.
We all have a stake in it.
Source AP
Research shows 50 percent of all renters now spend at least 30 percent of their before-tax income on rent and utility payments. That’s up from about 40 percent in 2000, according to an analysis by the Associated Press. One in four shell out more than half of their income to cover those expenses, up from one in five.
And the AP’s analysis of census data through 2007, the latest available, doesn’t include the effects of the recession, which hammer renters harder than homeowners. Tough economic times also disproportionately affect minorities and the less educated – both groups are more likely to be financially burdened renters.
“In the next year or so, we’re going to see growing numbers of people who are literally homeless because they can’t afford their own home,” said Sheila Crowley, the president and CEO of the National Low Income Housing Coalition.
The median rent, including utilities, rose 7 percent to $775 between 2000 and 2007. But the increase felt worse because renters saw their median income drop 7 percent to $29,000 during that time.
After paying the landlord, what’s left for severely cost-burdened renters is a scant amount for the other basics of living like food, health care and clothing. Forget luxuries like transportation, retirement accounts, let alone a downpayment on a house.
“They sacrifice basic household stuff you and I take for granted like hygiene products and detergent. Money for laundry,” said Cicely Dove, the director family housing at Crossroads, an emergency housing shelter in Providence, R.I.
Government funding for renter assistance has been stagnant since 2000. At the same time, the number of affordable apartments has been shrinking and the cost of building new ones rarely pencils out.
During the past six years, about 3 million affordable apartments were destroyed, converted to for-sale condos or upgraded to higher-priced rental units, according to census data released this week.
The waiting lists for Housing Choice vouchers, formerly known as Section 8, are years long in many cities. The program currently serves 2 million families. Renters in this program put 30 percent of their income to rent and the voucher makes up the difference. As the economy worsens, voucher recipients are contributing less money. The program must make up the difference, which means reducing the number of new recipients, said Donna White, spokeswoman at the Housing and Urban Development Department. Fewer are moving onto self-sufficiency too, White said.
The federal Low Income Housing Tax Credit, which encourages developers to build affordable housing, has little funding because investors who buy these tax credits have disappeared, said Eric Belsky, executive director of Harvard University’s Joint Center for Housing Studies.
The National Housing Trust Fund created last July to increase the supply of affordable housing remains empty. Funds were supposed to come from Fannie Mae and Freddie Mac, but the government seized control of the companies five weeks later and has so far pumped $85 billion into them to keep them afloat.
“The problems here are costly to address. We’re going to see it get worse and create more hardships with renters spending less on pensions, savings and health care,” Belsky said. “These things cost us down the road.”
Hints of hope, however, are emerging as the country moves away from the homeownership mantra and recasts its housing priorities. President Barack Obama’s recent budget includes $1 billion for the National Housing Trust Fund and another $1.6 billion for 200,000 new housing vouchers.
But housing experts say that is nowhere enough to make a dent in the problem:
Sixty percent of single parents and senior citizens who rent spend at least 30 percent of their income on housing costs, while a third pay at least half.
Blacks and Hispanics face similar challenges. The unemployment rates for blacks and Hispanics are both outpacing the national rate and 30 percent of black renters and 27 percent of Hispanic renters spend half or more of their income on housing. This is happening at the same time that the foreclosure crisis batters these two groups the most.
Indiana is the least affordable for black renters, where 43 percent pay at least half their income to housing expenses. And a third of Hispanic renters in Massachusetts spend 50 percent of their income on rent and utilities, the worst showing in the country for Hispanics.
The least affordable areas for renters are the Deep South, the once red-hot housing states like California and Florida, and the beleaguered Midwest manufacturing states. But places like Hawaii and Vermont also rank high on the list.
Now the recession adds another obstacle.
The unemployment rate shot up to a 25-year high of 9.4 percent in May, but that percentage is even higher for those without a high school degree – almost 16 percent – and who are more likely to be renters. They predominantly work in service industries, clearing restaurant tables, cleaning homes and offices and taking care of children and elderly parents.
“We’re talking about the person who makes your latte in the morning,” said Crowley of the National Low Income Housing Coalition.
People cope with these housing situations by crowding in with family or friends or living in substandard housing or in dangerous neighborhoods. Others flock to shelters, and, in the worst cases, they sleep on the streets. For those who strain to make the rent, they are often one medical bill or car repair away from homelessness.
If affordability issues facing renters aren’t addressed, there will be social and economic consequences. Children of low-income renters who are forced to move multiple times usually fall behind in school, and later replace their parents as low-income renters. These renters will drag the nation as it faces other costly issues like Social Security, health care, ongoing wars and repairing a broken economy.
“In the long run, a society that doesn’t attend to fundamental human needs won’t succeed,” Crowley said.
We all have a stake in it.
Source AP
Friday, June 26, 2009
State Farm clients needn’t panic yet
When Gov. Charlie Crist rejected a bill Wednesday that would have let national companies charge whatever they wish for property insurance in Florida, he said that it lacked enough consumer protections.
That veto, however, ensures that State Farm Florida will abandon the state’s property insurance market, company officials said.
What happens now for State Farm’s policyholders? Nothing -- yet.
Early this year, after Insurance Commissioner Kevin McCarty rejected the company’s request to raise its rates 47 percent, State Farm announced its decision to leave. The company submitted an exit plan, which McCarty rejected, calling it “hazardous” for policyholders.
The insurer then filed an appeal with the state Department of Administrative Hearings and still is negotiating with McCarty on a withdrawal strategy. Until the litigation or negotiations conclude, the company cannot take any action to withdraw.
Sen. Mike Bennett, R-Bradenton, who sponsored the deregulation bill in the Senate, says he’s not convinced the company will leave.
HB 1171 would have kept more national carriers in the Florida market, giving consumers the option of paying more for the added security of coverage from such companies, Bennett argued. He insisted he did not file the bill for State Farm, which he accused of playing a game of chicken with the state by declaring it would leave.
“I think State Farm was running a bluff when it did what it did; I think the insurance commissioner was running a bluff when he did what he did,” Bennett said. “I think they both lost. But I also think the Florida market is too large for them to walk away. ... These are smart people; I don’t think they will leave the state of Florida entirely.”
State Farm Florida spokesman Justin Glover reiterated the insurer’s stance. “When you look at our deteriorating financial condition -- we’ve lost $200 million in surplus since we filed for a rate increase last year, and the Florida company was recently downgraded by A.M. Best from a B plus to B minus -- there are some serious financial realities we have to face. What’s most important to us is to meet our obligations to our current customers; that’s exactly why we have to go forward with our plan.”
Meantime, here are some points for State Farm policyholders to remember:
* State Farm might not drop any policies for 18 months. The Office of Insurance Regulation and State Farm must report on their negotiations by July 15 to the Department of Administrative Hearings, which will set a hearing if there is no agreement. There are more appeal options after that. OIR says it could be 18 months before State Farm starts dropping policyholders.
* So far, “dropping” means not renewing. State Farm has said it intends to drop its 900,000-plus property insurance customers over two years on their annual renewal dates rather than terminate policies early.
* Warnings to precede nonrenewals. State Farm will notify policyholders 180 days before their coverage ends.
* State Farm agents can’t write policies for other private insurers. This remains a bone of contention for regulators, who are pressing State Farm to reverse this rule now that it is leaving.
State Farm does allow its agents to transfer policyholders to Citizens Property Insurance Corp., the state-run insurer of last resort. The company also will transfer policyholders to “take out” companies that agree to cover them in lieu of Citizens. Glover said State Farm agents will advise existing policyholders about other coverage options.
Copyright © 2009, Tampa Tribune, Fla.
That veto, however, ensures that State Farm Florida will abandon the state’s property insurance market, company officials said.
What happens now for State Farm’s policyholders? Nothing -- yet.
Early this year, after Insurance Commissioner Kevin McCarty rejected the company’s request to raise its rates 47 percent, State Farm announced its decision to leave. The company submitted an exit plan, which McCarty rejected, calling it “hazardous” for policyholders.
The insurer then filed an appeal with the state Department of Administrative Hearings and still is negotiating with McCarty on a withdrawal strategy. Until the litigation or negotiations conclude, the company cannot take any action to withdraw.
Sen. Mike Bennett, R-Bradenton, who sponsored the deregulation bill in the Senate, says he’s not convinced the company will leave.
HB 1171 would have kept more national carriers in the Florida market, giving consumers the option of paying more for the added security of coverage from such companies, Bennett argued. He insisted he did not file the bill for State Farm, which he accused of playing a game of chicken with the state by declaring it would leave.
“I think State Farm was running a bluff when it did what it did; I think the insurance commissioner was running a bluff when he did what he did,” Bennett said. “I think they both lost. But I also think the Florida market is too large for them to walk away. ... These are smart people; I don’t think they will leave the state of Florida entirely.”
State Farm Florida spokesman Justin Glover reiterated the insurer’s stance. “When you look at our deteriorating financial condition -- we’ve lost $200 million in surplus since we filed for a rate increase last year, and the Florida company was recently downgraded by A.M. Best from a B plus to B minus -- there are some serious financial realities we have to face. What’s most important to us is to meet our obligations to our current customers; that’s exactly why we have to go forward with our plan.”
Meantime, here are some points for State Farm policyholders to remember:
* State Farm might not drop any policies for 18 months. The Office of Insurance Regulation and State Farm must report on their negotiations by July 15 to the Department of Administrative Hearings, which will set a hearing if there is no agreement. There are more appeal options after that. OIR says it could be 18 months before State Farm starts dropping policyholders.
* So far, “dropping” means not renewing. State Farm has said it intends to drop its 900,000-plus property insurance customers over two years on their annual renewal dates rather than terminate policies early.
* Warnings to precede nonrenewals. State Farm will notify policyholders 180 days before their coverage ends.
* State Farm agents can’t write policies for other private insurers. This remains a bone of contention for regulators, who are pressing State Farm to reverse this rule now that it is leaving.
State Farm does allow its agents to transfer policyholders to Citizens Property Insurance Corp., the state-run insurer of last resort. The company also will transfer policyholders to “take out” companies that agree to cover them in lieu of Citizens. Glover said State Farm agents will advise existing policyholders about other coverage options.
Copyright © 2009, Tampa Tribune, Fla.
Crist vetoes Fla. insurance deregulation bill
A much-debated bill that would have deregulated rates on some residential property insurance policies fell victim Wednesday to Gov. Charlie Crist’s veto pen.
The bill (HB 1171) would have let willing homeowners buy higher-priced, unregulated coverage for hurricanes, fires and other property hazards but only from highly capitalized national companies.
In his veto message, Crist wrote that the “Consumer Choice” bill, instead, would have given the choice to those big insurers.
“These select property insurance companies will be able to cherry-pick, or sell only to profitable policyholder risks, while at the same time offloading their undesirable policyholders that are higher risk to their competitors and Citizens Property Insurance Corp.,” Crist wrote.
Citizens was created by the state to offer coverage to consumers who couldn’t get it on the private market. With private companies bailing out of coastal areas and increasing their rates, Citizens has grown to become Florida’s largest property insurer, with more than 1 million policies.
The bill’s advocates included State Farm Florida, the state’s largest private property insurer, which called the legislation “a positive step for Florida residents who expect and deserve their insurer to be there following a major disaster.”
The subsidiary of Bloomington, Ill.-based State Farm Insurance has announced plans to pull out of the state after Florida Insurance Commissioner Kevin McCarty rejected a 47 percent rate increase. Company officials said without higher premiums they face the prospect of being unable to pay claims.
Crist has said Floridians will be “much better off without” State Farm.
The bill’s supporters, including the business lobby Associated Industries of Florida, had hoped it would keep State Farm and other big companies from abandoning the Florida market.
“When they leave, they take their claims-paying capital with them,” said Rep. Bill Proctor, a St. Augustine Republican who sponsored the bill. “I don’t think the issue’s dead.”
He said he hoped legislative leaders will try to override the veto, which requires a two-thirds vote in each chamber. That’s at least 27 votes in the Senate, which passed the bill 27-9 with four senators not voting. The House vote was a lopsided 105-13.
House Speaker Larry Cretul, R-Ocala, was among those disappointed by the veto.
“Florida has demonstrated that over-regulating the insurance industry can actually make things worse for consumers — not better,” Cretul said in a statement. “It seems reasonable to give homeowners as many choices as possible.”
The Florida Property & Casualty Association, comprised of small Florida-based insurers, opposed the bill, and in a statement echoed Crist’s argument that big national companies would have an unfair advantage by offering regulated premiums in low-risk areas and unregulated rates in high-risk communities.
Proctor responded that no one knows if that would happen because unregulated premiums have never been tried before.
Crist also wrote that the bill would have disrupted efforts to make Florida’s insurance market more competitive by spinning off Citizens policies to private companies, most of them relatively small and new to the state.
He wrote that if the highly capitalized national companies “are allowed to ‘redline’ areas of the state they do not wish to write, this will harm consumers and investors who have worked in good faith to create a competitive marketplace.”
The governor added that the bill also would not have prevented companies from collecting unregulated premiums and then leaving the state with “hardworking families’ earnings.”
Supporters argued the bill would have given consumers the ability to get policies with better financial backing if they were willing to pay for it.
They also said attracting or keeping more robust insurers could reduce reliance on the Florida Hurricane Catastrophe Fund, which provides backup coverage for insurers.
If the fund has insufficient resources to cover losses, the difference would be made up through assessments on nearly all types of property insurance, including auto.
Source: AP
The bill (HB 1171) would have let willing homeowners buy higher-priced, unregulated coverage for hurricanes, fires and other property hazards but only from highly capitalized national companies.
In his veto message, Crist wrote that the “Consumer Choice” bill, instead, would have given the choice to those big insurers.
“These select property insurance companies will be able to cherry-pick, or sell only to profitable policyholder risks, while at the same time offloading their undesirable policyholders that are higher risk to their competitors and Citizens Property Insurance Corp.,” Crist wrote.
Citizens was created by the state to offer coverage to consumers who couldn’t get it on the private market. With private companies bailing out of coastal areas and increasing their rates, Citizens has grown to become Florida’s largest property insurer, with more than 1 million policies.
The bill’s advocates included State Farm Florida, the state’s largest private property insurer, which called the legislation “a positive step for Florida residents who expect and deserve their insurer to be there following a major disaster.”
The subsidiary of Bloomington, Ill.-based State Farm Insurance has announced plans to pull out of the state after Florida Insurance Commissioner Kevin McCarty rejected a 47 percent rate increase. Company officials said without higher premiums they face the prospect of being unable to pay claims.
Crist has said Floridians will be “much better off without” State Farm.
The bill’s supporters, including the business lobby Associated Industries of Florida, had hoped it would keep State Farm and other big companies from abandoning the Florida market.
“When they leave, they take their claims-paying capital with them,” said Rep. Bill Proctor, a St. Augustine Republican who sponsored the bill. “I don’t think the issue’s dead.”
He said he hoped legislative leaders will try to override the veto, which requires a two-thirds vote in each chamber. That’s at least 27 votes in the Senate, which passed the bill 27-9 with four senators not voting. The House vote was a lopsided 105-13.
House Speaker Larry Cretul, R-Ocala, was among those disappointed by the veto.
“Florida has demonstrated that over-regulating the insurance industry can actually make things worse for consumers — not better,” Cretul said in a statement. “It seems reasonable to give homeowners as many choices as possible.”
The Florida Property & Casualty Association, comprised of small Florida-based insurers, opposed the bill, and in a statement echoed Crist’s argument that big national companies would have an unfair advantage by offering regulated premiums in low-risk areas and unregulated rates in high-risk communities.
Proctor responded that no one knows if that would happen because unregulated premiums have never been tried before.
Crist also wrote that the bill would have disrupted efforts to make Florida’s insurance market more competitive by spinning off Citizens policies to private companies, most of them relatively small and new to the state.
He wrote that if the highly capitalized national companies “are allowed to ‘redline’ areas of the state they do not wish to write, this will harm consumers and investors who have worked in good faith to create a competitive marketplace.”
The governor added that the bill also would not have prevented companies from collecting unregulated premiums and then leaving the state with “hardworking families’ earnings.”
Supporters argued the bill would have given consumers the ability to get policies with better financial backing if they were willing to pay for it.
They also said attracting or keeping more robust insurers could reduce reliance on the Florida Hurricane Catastrophe Fund, which provides backup coverage for insurers.
If the fund has insufficient resources to cover losses, the difference would be made up through assessments on nearly all types of property insurance, including auto.
Source: AP
Wednesday, June 24, 2009
Condo dwellers finding empty buildings
Joshua Hamann jokingly compares himself to the last human in a city overrun by zombies. He’s not suggesting his neighbors are zombies. The problem is, he has no neighbors.
Hamann dwells in a newly opened condo. And in the six weeks since moving into the gleaming new Everglades on the Bay in downtown Miami, he has felt pretty lonely. Hamann occupies one of only about 50 sold condos in his 49-story tower, out of 409 units.
A couple miles north at Midtown Miami, Alisha Marks knows the same feeling. “It was pretty much a ghost town when I got here,” she says.
It’s an odd time for South Florida’s condo market. Over development compounded by the credit crunch and a sluggish economy created an abundance of condo units.
So, what is life like for the few residents whose lights are on?
“Weird,” says Hamann, a 28-year-old project manager for a window shading company, who rents the $400,000 one-bedroom, one-bath unit on the fifth floor. Everglades on the Bay opened in April and offers residents great views, clean white walls, spotless carpets, stainless steel appliances, a well-equipped gym, a pool, and even party rooms. Hamann moved in immediately.
Since then, he has one neighbor on his floor. It took two weeks before his first experience of sharing an elevator ride with a neighbor. “He didn’t know how to react,” Hamann notes.
“I’m a sociable guy, but you can’t socialize with what isn’t there,” says Hamann, who commutes on weekends to the Gulf Coast where his wife lives. He jokes that before he moved in, he saw brochures featuring smiling “crowds” hanging around the pool.
On a recent Friday morning, Hamann encountered exactly three people over the course of several hours – two security guards, and a concierge.
Several stops in the fitness center? Empty.
Several visits to the pool? Empty.
Several visits to the laundry room? Empty.
The building is emptier than the cheap seats during a Marlins game at LandShark stadium.
“This is how it goes every day,” Hamann said, adding that he interacted with more neighbors growing up in rural Kentucky, where farms were spaced a mile apart.
Why all the empty units with no residents?
In Miami-Dade alone, more than 23,000 new condominium units have come onto the market since 2002, according to Condo Vultures, a real estate firm that also researches trends in the condo market. Most of the new units are concentrated in the Brickell, downtown, and Midtown Miami communities. Thousands more have been built in Broward. Even more are in the pipeline.
During the boom, most of those units were considered “sold.” But since the market busted because of bad loans, wildly optimistic bank lending practices and a tightening credit market, many of the newer condo buildings sit largely empty as sold units wait to close or have been returned to the developers.
An occupancy report, commissioned by the Miami Downtown Development Authority and released last week, indicated the glut may be slowly disappearing. Even so, roughly one-third of the inventory, 8,300 units in the downtown and Midtown Miami area are unsold. For projects completed since 2008, just 34 percent of the units have closed, according to the report.
Some of the sold units may not yet be occupied, and some of the unsold units may have been rented out. Take a nighttime drive along Biscayne Boulevard or Brickell Avenue and one will notice lots of dark windows in those sleek new high-rises.
Mimi Scott faced a similar situation at the Radius tower in downtown Hollywood. The condo opened in November 2007, and she moved in shortly after. It was ghastly quiet, she says.
“I didn’t like it,” says Scott, a retired playwright who lives part of the year in South Florida.
“There still aren’t a lot of people down the hall. There are a couple of neighbors near me. But more empty than full units, at least on my floor.”
But for Alisha Marks, a 28-year-old public relations executive, things are slowly getting better in her building.
Marks has lived in a one-bedroom condo at Midtown Miami for six months, and has only recently begun to see neighbors.
Marks thought of her once-empty floor in the 28-story tower as a playground of sorts, “but after a while you begin to miss that interaction,” she says.
She says the silence in a largely empty building is “kind of creepy – but more strange than creepy – because of the silence and the emptiness.”
“In the past month or so, I have gotten a few neighbors. And now the adjustment is to having them around. They’re fine, but going from no one else to three people on my floor almost makes it seem loud, too loud!”
But all is not lost in these empty buildings, according to Jack McCabe, president of Deerfield Beach-based McCabe Research & Consulting, LLC.
While McCabe believes the most recent condo boom “happened five or six years too soon,” he doesn’t believe it has to take that many years to get the empty and available units into the hands of responsible owners.
“It could take up to five to six years, but many people will tell you the condo market will trail close behind the single-family home market,” McCabe says. “And that market is still one to two years away from serious signs of recovery.”
Copyright © 2009, The Miami Herald
Hamann dwells in a newly opened condo. And in the six weeks since moving into the gleaming new Everglades on the Bay in downtown Miami, he has felt pretty lonely. Hamann occupies one of only about 50 sold condos in his 49-story tower, out of 409 units.
A couple miles north at Midtown Miami, Alisha Marks knows the same feeling. “It was pretty much a ghost town when I got here,” she says.
It’s an odd time for South Florida’s condo market. Over development compounded by the credit crunch and a sluggish economy created an abundance of condo units.
So, what is life like for the few residents whose lights are on?
“Weird,” says Hamann, a 28-year-old project manager for a window shading company, who rents the $400,000 one-bedroom, one-bath unit on the fifth floor. Everglades on the Bay opened in April and offers residents great views, clean white walls, spotless carpets, stainless steel appliances, a well-equipped gym, a pool, and even party rooms. Hamann moved in immediately.
Since then, he has one neighbor on his floor. It took two weeks before his first experience of sharing an elevator ride with a neighbor. “He didn’t know how to react,” Hamann notes.
“I’m a sociable guy, but you can’t socialize with what isn’t there,” says Hamann, who commutes on weekends to the Gulf Coast where his wife lives. He jokes that before he moved in, he saw brochures featuring smiling “crowds” hanging around the pool.
On a recent Friday morning, Hamann encountered exactly three people over the course of several hours – two security guards, and a concierge.
Several stops in the fitness center? Empty.
Several visits to the pool? Empty.
Several visits to the laundry room? Empty.
The building is emptier than the cheap seats during a Marlins game at LandShark stadium.
“This is how it goes every day,” Hamann said, adding that he interacted with more neighbors growing up in rural Kentucky, where farms were spaced a mile apart.
Why all the empty units with no residents?
In Miami-Dade alone, more than 23,000 new condominium units have come onto the market since 2002, according to Condo Vultures, a real estate firm that also researches trends in the condo market. Most of the new units are concentrated in the Brickell, downtown, and Midtown Miami communities. Thousands more have been built in Broward. Even more are in the pipeline.
During the boom, most of those units were considered “sold.” But since the market busted because of bad loans, wildly optimistic bank lending practices and a tightening credit market, many of the newer condo buildings sit largely empty as sold units wait to close or have been returned to the developers.
An occupancy report, commissioned by the Miami Downtown Development Authority and released last week, indicated the glut may be slowly disappearing. Even so, roughly one-third of the inventory, 8,300 units in the downtown and Midtown Miami area are unsold. For projects completed since 2008, just 34 percent of the units have closed, according to the report.
Some of the sold units may not yet be occupied, and some of the unsold units may have been rented out. Take a nighttime drive along Biscayne Boulevard or Brickell Avenue and one will notice lots of dark windows in those sleek new high-rises.
Mimi Scott faced a similar situation at the Radius tower in downtown Hollywood. The condo opened in November 2007, and she moved in shortly after. It was ghastly quiet, she says.
“I didn’t like it,” says Scott, a retired playwright who lives part of the year in South Florida.
“There still aren’t a lot of people down the hall. There are a couple of neighbors near me. But more empty than full units, at least on my floor.”
But for Alisha Marks, a 28-year-old public relations executive, things are slowly getting better in her building.
Marks has lived in a one-bedroom condo at Midtown Miami for six months, and has only recently begun to see neighbors.
Marks thought of her once-empty floor in the 28-story tower as a playground of sorts, “but after a while you begin to miss that interaction,” she says.
She says the silence in a largely empty building is “kind of creepy – but more strange than creepy – because of the silence and the emptiness.”
“In the past month or so, I have gotten a few neighbors. And now the adjustment is to having them around. They’re fine, but going from no one else to three people on my floor almost makes it seem loud, too loud!”
But all is not lost in these empty buildings, according to Jack McCabe, president of Deerfield Beach-based McCabe Research & Consulting, LLC.
While McCabe believes the most recent condo boom “happened five or six years too soon,” he doesn’t believe it has to take that many years to get the empty and available units into the hands of responsible owners.
“It could take up to five to six years, but many people will tell you the condo market will trail close behind the single-family home market,” McCabe says. “And that market is still one to two years away from serious signs of recovery.”
Copyright © 2009, The Miami Herald
Tuesday, June 23, 2009
Common Interest Residential Community Association Drafting: 7xx-1
Drafting of alternative Community Association statutes mentioned in previous messages is getting additional support. There are now over 20,000 email addresses of persons indicating interest and a willingness to participate. If you know of any others that should be added please check with them to be sure they are being included by replying with the name and email address.
The indications to strive for include:
An uniform statute including residential Condominiums, Home Owner Associations, Co-ops and Mobile Homes that will replace the myriad laws.
Include Time-Share and Condo-Hotel in their own statute.
Effective regulation and accountability of the DBPR when dealing with issues.
Better access to education and assistance.
Limiting of special interests in the process.
Use common language.
The Florida Statutes involved will be 34, 455, 468, 718, 719, 720, 721 and 723.
They are available at
http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Index&Title_Request=XL#TitleXL
In the past there has been little cooperation or communication with the several factions, practitioners, stake holders and owner representatives during the drafting process. Some lobbyists guard their special interests to include in legislation as late in the process as possible to prevent any organized opposition. This process is open to everyone and is an experiment to determine if this open drafting method is more reflective of the protections needed for owners in residential communities.
We will use the existing format of 718 as the basis for the drafting unless a better format is developed and will be split into weekly sections.
Input, suggestions and recommendations may be published for discussion purposes, so please indicate if you do not want your name published. Over the years there have been public hearings and in Tallahassee limited time committee hearings. That process by its own structure limits public participation. This is the opportunity to be part of the process. Input based on the sections as they come out will make consideration more efficient.
Below is the first section for consideration. Please provide suggestions with an explanation as to the benefit it provides. The response can be in the form of underline/strikethrough or commentary. If some part reflects back on these sections we will make those changes as they occur.
718.101 Short title.--This chapter shall be known and may be cited as the "Condominium Act."
718.102 Purposes.--The purpose of this chapter is:
(1) To give statutory recognition to the condominium form of ownership of real property.
(2) To establish procedures for the creation, sale, and operation of condominiums.
Every condominium created and existing in this state shall be subject to the provisions of this chapter.
718.103 Definitions.--As used in this chapter, the term:
(1) "Assessment" means a share of the funds which are required for the payment of common expenses, which from time to time is assessed against the unit owner.
(2) "Association" means, in addition to any entity responsible for the operation of common elements owned in undivided shares by unit owners, any entity which operates or maintains other real property in which unit owners have use rights, where membership in the entity is composed exclusively of unit owners or their elected or appointed representatives and is a required condition of unit ownership.
(3) "Association property" means that property, real and personal, which is owned or leased by, or is dedicated by a recorded plat to, the association for the use and benefit of its members.
(4) "Board of administration" or "board" means the board of directors or other representative body which is responsible for administration of the association.
(5) "Buyer" means a person who purchases a condominium unit. The term "purchaser" may be used interchangeably with the term "buyer."
(6) "Bylaws" means the bylaws of the association as they are amended from time to time.
(7) "Committee" means a group of board members, unit owners, or board members and unit owners appointed by the board or a member of the board to make recommendations to the board regarding the proposed annual budget or to take action on behalf of the board.
(8) "Common elements" means the portions of the condominium property not included in the units.
(9) "Common expenses" means all expenses properly incurred by the association in the performance of its duties, including expenses specified in s. 718.115.
(10) "Common surplus" means the amount of all receipts or revenues, including assessments, rents, or profits, collected by a condominium association which exceeds common expenses.
(11) "Condominium" means that form of ownership of real property created pursuant to this chapter, which is comprised entirely of units that may be owned by one or more persons, and in which there is, appurtenant to each unit, an undivided share in common elements.
(12) "Condominium parcel" means a unit, together with the undivided share in the common elements appurtenant to the unit.
(13) "Condominium property" means the lands, leaseholds, and personal property that are subjected to condominium ownership, whether or not contiguous, and all improvements thereon and all easements and rights appurtenant thereto intended for use in connection with the condominium.
(14) "Conspicuous type" means bold type in capital letters no smaller than the largest type, exclusive of headings, on the page on which it appears and, in all cases, at least 10-point type. Where conspicuous type is required, it must be separated on all sides from other type and print. Conspicuous type may be used in a contract for purchase and sale of a unit, a lease of a unit for more than 5 years, or a prospectus or offering circular only where required by law.
(15) "Declaration" or "declaration of condominium" means the instrument or instruments by which a condominium is created, as they are from time to time amended.
(16) "Developer" means a person who creates a condominium or offers condominium parcels for sale or lease in the ordinary course of business, but does not include an owner or lessee of a condominium or cooperative unit who has acquired the unit for his or her own occupancy, nor does it include a cooperative association which creates a condominium by conversion of an existing residential cooperative after control of the association has been transferred to the unit owners if, following the conversion, the unit owners will be the same persons who were unit owners of the cooperative and no units are offered for sale or lease to the public as part of the plan of conversion. A state, county, or municipal entity is not a developer for any purposes under this act when it is acting as a lessor and not otherwise named as a developer in the association.
(17) "Division" means the Division of Florida Condominiums, Timeshares, and Mobile Homes of the Department of Business and Professional Regulation.
(18) "Land" means the surface of a legally described parcel of real property and includes, unless otherwise specified in the declaration and whether separate from or including such surface, airspace lying above and subterranean space lying below such surface. However, if so defined in the declaration, the term "land" may mean all or any portion of the airspace or subterranean space between two legally identifiable elevations and may exclude the surface of a parcel of real property and may mean any combination of the foregoing, whether or not contiguous, or may mean a condominium unit.
(19) "Limited common elements" means those common elements which are reserved for the use of a certain unit or units to the exclusion of all other units, as specified in the declaration.
(20) "Multicondominium" means a real estate development containing two or more condominiums, all of which are operated by the same association.
(21) "Operation" or "operation of the condominium" includes the administration and management of the condominium property.
(22) "Rental agreement" means any written agreement, or oral agreement if for less duration than 1 year, providing for use and occupancy of premises.
(23) "Residential condominium" means a condominium consisting of two or more units, any of which are intended for use as a private temporary or permanent residence, except that a condominium is not a residential condominium if the use for which the units are intended is primarily commercial or industrial and not more than three units are intended to be used for private residence, and are intended to be used as housing for maintenance, managerial, janitorial, or other operational staff of the condominium. With respect to a condominium that is not a timeshare condominium, a residential unit includes a unit intended as a private temporary or permanent residence as well as a unit not intended for commercial or industrial use. With respect to a timeshare condominium, the timeshare instrument as defined in s. 721.05(35) shall govern the intended use of each unit in the condominium. If a condominium is a residential condominium but contains units intended to be used for commercial or industrial purposes, then, with respect to those units which are not intended for or used as private residences, the condominium is not a residential condominium. A condominium which contains both commercial and residential units is a mixed-use condominium and is subject to the requirements of s. 718.404.
(24) "Special assessment" means any assessment levied against a unit owner other than the assessment required by a budget adopted annually.
(25) "Timeshare estate" means any interest in a unit under which the exclusive right of use, possession, or occupancy of the unit circulates among the various purchasers of a timeshare plan pursuant to chapter 721 on a recurring basis for a period of time.
(26) "Timeshare unit" means a unit in which timeshare estates have been created.
(27) "Unit" means a part of the condominium property which is subject to exclusive ownership. A unit may be in improvements, land, or land and improvements together, as specified in the declaration.
(28) "Unit owner" or "owner of a unit" means a record owner of legal title to a condominium parcel.
(29) "Voting certificate" means a document which designates one of the record title owners, or the corporate, partnership, or entity representative, who is authorized to vote on behalf of a condominium unit that is owned by more than one owner or by any entity.
(30) "Voting interests" means the voting rights distributed to the association members pursuant to s. 718.104(4)(j). In a multicondominium association, the voting interests of the association are the voting rights distributed to the unit owners in all condominiums operated by the association. On matters related to a specific condominium in a multicondominium association, the voting interests of the condominium are the voting rights distributed to the unit owners in that condominium.
718.1035 Power of attorney; compliance with chapter.--The use of a power of attorney that affects any aspect of the operation of a condominium shall be subject to and in compliance with the provisions of this chapter and all condominium documents, association rules and other rules adopted pursuant to this chapter, and all other covenants, conditions, and restrictions in force at the time of the execution of the power of attorney.
718.104 Creation of condominiums; contents of declaration.--Every condominium created in this state shall be created pursuant to this chapter.
(1) A condominium may be created on land owned in fee simple or held under a lease complying with the provisions of s. 718.401.
(2) A condominium is created by recording a declaration in the public records of the county where the land is located, executed and acknowledged with the requirements for a deed. All persons who have record title to the interest in the land being submitted to condominium ownership, or their lawfully authorized agents, must join in the execution of the declaration. Upon the recording of the declaration, or an amendment adding a phase to the condominium under s. 718.403(6), all units described in the declaration or phase amendment as being located in or on the land then being submitted to condominium ownership shall come into existence, regardless of the state of completion of planned improvements in which the units may be located. Upon recording the declaration of condominium pursuant to this section, the developer shall file the recording information with the division within 120 calendar days on a form prescribed by the division.
(3) All persons who have any record interest in any mortgage encumbering the interest in the land being submitted to condominium ownership must either join in the execution of the declaration or execute, with the requirements for deed, and record, a consent to the declaration or an agreement subordinating their mortgage interest to the declaration.
(4) The declaration must contain or provide for the following matters:
(a) A statement submitting the property to condominium ownership.
(b) The name by which the condominium property is to be identified, which shall include the word "condominium" or be followed by the words "a condominium."
(c) The legal description of the land and, if a leasehold estate is submitted to condominium, an identification of the lease.
(d) An identification of each unit by letter, name, or number, or combination thereof, so that no unit bears the same designation as any other unit.
(e) A survey of the land which meets the minimum technical standards set forth by the Board of Professional Surveyors and Mappers, pursuant to s. 472.027, and a graphic description of the improvements in which units are located and a plot plan thereof that, together with the declaration, are in sufficient detail to identify the common elements and each unit and their relative locations and approximate dimensions. Failure of the survey to meet minimum technical standards shall not invalidate an otherwise validly created condominium. The survey, graphic description, and plot plan may be in the form of exhibits consisting of building plans, floor plans, maps, surveys, or sketches. If the construction of the condominium is not substantially completed, there shall be a statement to that effect, and, upon substantial completion of construction, the developer or the association shall amend the declaration to include the certificate described below. The amendment may be accomplished by referring to the recording data of a survey of the condominium that complies with the certificate. A certificate of a surveyor and mapper authorized to practice in this state shall be included in or attached to the declaration or the survey or graphic description as recorded under s. 718.105 that the construction of the improvements is substantially complete so that the material, together with the provisions of the declaration describing the condominium property, is an accurate representation of the location and dimensions of the improvements and so that the identification, location, and dimensions of the common elements and of each unit can be determined from these materials. Completed units within each substantially completed building in a condominium development may be conveyed to purchasers, notwithstanding that other buildings in the condominium are not substantially completed, provided that all planned improvements, including, but not limited to, landscaping, utility services and access to the unit, and common-element facilities serving such building, as set forth in the declaration, are first completed and the declaration of condominium is first recorded and provided that as to the units being conveyed there is a certificate of a surveyor and mapper as required above, including certification that all planned improvements, including, but not limited to, landscaping, utility services and access to the unit, and common-element facilities serving the building in which the units to be conveyed are located have been substantially completed, and such certificate is recorded with the original declaration or as an amendment to such declaration. This section shall not, however, operate to require development of improvements and amenities declared to be included in future phases pursuant to s. 718.403 prior to conveying a unit as provided herein. For the purposes of this section, a "certificate of a surveyor and mapper" means certification by a surveyor and mapper in the form provided herein and may include, along with certification by a surveyor and mapper, when appropriate, certification by an architect or engineer authorized to practice in this state. Notwithstanding the requirements of substantial completion provided in this section, nothing contained herein shall prohibit or impair the validity of a mortgage encumbering units together with an undivided interest in the common elements as described in a declaration of condominium recorded prior to the recording of a certificate of a surveyor and mapper as provided herein.
(f) The undivided share of ownership of the common elements and common surplus of the condominium that is appurtenant to each unit stated as a percentage or a fraction of the whole. In the declaration of condominium for residential condominiums created after April 1, 1992, the ownership share of the common elements assigned to each residential unit shall be based either upon the total square footage of each residential unit in uniform relationship to the total square footage of each other residential unit in the condominium or on an equal fractional basis.
(g) The percentage or fractional shares of liability for common expenses of the condominium, which, for all residential units, must be the same as the undivided shares of ownership of the common elements and common surplus appurtenant to each unit as provided for in paragraph (f).
(h) If a developer reserves the right, in a declaration recorded on or after July 1, 2000, to create a multicondominium, the declaration must state, or provide a specific formula for determining, the fractional or percentage shares of liability for the common expenses of the association and of ownership of the common surplus of the association to be allocated to the units in each condominium to be operated by the association. If a declaration recorded on or after July 1, 2000, for a condominium operated by a multicondominium association as originally recorded fails to so provide, the share of liability for the common expenses of the association and of ownership of the common surplus of the association allocated to each unit in each condominium operated by the association shall be a fraction of the whole, the numerator of which is the number "one" and the denominator of which is the total number of units in all condominiums operated by the association.
(i) The name of the association, which must be a corporation for profit or a corporation not for profit.
(j) Unit owners' membership and voting rights in the association.
(k) The document or documents creating the association, which may be attached as an exhibit.
(l) A copy of the bylaws, which shall be attached as an exhibit. Defects or omissions in the bylaws shall not affect the validity of the condominium or title to the condominium parcels.
(m) Other desired provisions not inconsistent with this chapter.
(n) The creation of a nonexclusive easement for ingress and egress over streets, walks, and other rights-of-way serving the units of a condominium, as part of the common elements necessary to provide reasonable access to the public ways, or a dedication of the streets, walks, and other rights-of-way to the public. All easements for ingress and egress shall not be encumbered by any leasehold or lien other than those on the condominium parcels, unless:
1. Any such lien is subordinate to the rights of unit owners, or
2. The holder of any encumbrance or leasehold of any easement has executed and recorded an agreement that the use-rights of each unit owner will not be terminated as long as the unit owner has not been evicted because of a default under the encumbrance or lease, and the use-rights of any mortgagee of a unit who has acquired title to a unit may not be terminated.
(o) If timeshare estates will or may be created with respect to any unit in the condominium, a statement in conspicuous type declaring that timeshare estates will or may be created with respect to units in the condominium. In addition, the degree, quantity, nature, and extent of the timeshare estates that will or may be created shall be defined and described in detail in the declaration, with a specific statement as to the minimum duration of the recurring periods of rights of use, possession, or occupancy that may be created with respect to any unit.
(5) The declaration as originally recorded or as amended under the procedures provided therein may include covenants and restrictions concerning the use, occupancy, and transfer of the units permitted by law with reference to real property. However, the rule against perpetuities shall not defeat a right given any person or entity by the declaration for the purpose of allowing unit owners to retain reasonable control over the use, occupancy, and transfer of units.
(6) A person who joins in, or consents to the execution of, a declaration subjects his or her interest in the condominium property to the provisions of the declaration.
(7) All provisions of the declaration are enforceable equitable servitudes, run with the land, and are effective until the condominium is terminated.
718.1045 Timeshare estates; limitation on creation.--No timeshare estates shall be created with respect to any condominium unit except pursuant to provisions in the declaration expressly permitting the creation of such estates.
718.105 Recording of declaration.--
(1) When executed as required by s. 718.104, a declaration together with all exhibits and all amendments is entitled to recordation as an agreement relating to the conveyance of land.
(2) Graphic descriptions of improvements constituting exhibits to a declaration, when accompanied by the certificate of a surveyor required by s. 718.104, may be recorded as a part of a declaration without approval of any public body or officer.
(3) The clerk of the circuit court recording the declaration may, for his or her convenience, file the exhibits of a declaration which contains graphic descriptions of improvements in a separate book, and shall indicate the place of filing upon the margin of the record of the declaration.
(4)(a) If the declaration does not have the certificate or the survey or graphic description of the improvements required under s. 718.104(4)(e), the developer shall deliver therewith to the clerk an estimate, signed by a surveyor authorized to practice in this state, of the cost of a final survey or graphic description providing the certificate prescribed by s. 718.104(4)(e), and shall deposit with the clerk the sum of money specified in the estimate.
(b) The clerk shall hold the money until an amendment to the declaration is recorded that complies with the certificate requirements of s. 718.104(4)(e). At that time, the clerk shall pay to the person presenting the amendment to the declaration the sum of money deposited, without making any charge for holding the sum, receiving it, or paying out, other than the fees required for recording the condominium documents.
(c) If the sum of money held by the clerk has not been paid to the developer or association as provided in paragraph (b) within 3 years after the date the declaration was originally recorded, the clerk may notify, in writing, the registered agent of the association that the sum is still available and the purpose for which it was deposited. If the association does not record the certificate within 90 days after the clerk has given the notice, the clerk may disburse the money to the developer. If the developer cannot be located, the clerk shall disburse the money to the Division of Florida Condominiums, Timeshares, and Mobile Homes for deposit in the Division of Florida Condominiums, Timeshares, and Mobile Homes Trust Fund.
(5) When a declaration of condominium is recorded pursuant to this section, a certificate or receipted bill shall be filed with the clerk of the circuit court in the county where the property is located showing that all taxes due and owing on the property have been paid in full as of the date of recordation.
718.106 Condominium parcels; appurtenances; possession and enjoyment.--
(1) A condominium parcel created by the declaration is a separate parcel of real property, even though the condominium is created on a leasehold.
(2) There shall pass with a unit, as appurtenances thereto:
(a) An undivided share in the common elements and common surplus.
(b) The exclusive right to use such portion of the common elements as may be provided by the declaration, including the right to transfer such right to other units or unit owners to the extent authorized by the declaration as originally recorded, or amendments to the declaration adopted pursuant to the provisions contained therein. Amendments to declarations of condominium providing for the transfer of use rights with respect to limited common elements are not amendments that materially modify unit appurtenances as described in s. 718.110(4). However, in order to be effective, the transfer of use rights with respect to limited common elements must be effectuated in conformity with the procedures set forth in the declaration as originally recorded or as amended under the procedures provided therein. This section is intended to clarify existing law and applies to associations existing on the effective date of this act.
(c) An exclusive easement for the use of the airspace occupied by the unit as it exists at any particular time and as the unit may lawfully be altered or reconstructed from time to time. An easement in airspace which is vacated shall be terminated automatically.
(d) Membership in the association designated in the declaration, with the full voting rights appertaining thereto.
(e) Other appurtenances as may be provided in the declaration.
(3) A unit owner is entitled to the exclusive possession of his or her unit, subject to the provisions of s. 718.111(5). He or she is entitled to use the common elements in accordance with the purposes for which they are intended, but no use may hinder or encroach upon the lawful rights of other unit owners.
(4) When a unit is leased, a tenant shall have all use rights in the association property and those common elements otherwise readily available for use generally by unit owners and the unit owner shall not have such rights except as a guest, unless such rights are waived in writing by the tenant. Nothing in this subsection shall interfere with the access rights of the unit owner as a landlord pursuant to chapter 83. The association shall have the right to adopt rules to prohibit dual usage by a unit owner and a tenant of association property and common elements otherwise readily available for use generally by unit owners.
(5) A local government may not adopt an ordinance or regulation that prohibits condominium unit owners or their guests, licensees, or invitees from pedestrian access to a public beach contiguous to a condominium property, except where necessary to protect public health, safety, or natural resources. This subsection does not prohibit a governmental entity from enacting regulations governing activities taking place on the beach.
The indications to strive for include:
An uniform statute including residential Condominiums, Home Owner Associations, Co-ops and Mobile Homes that will replace the myriad laws.
Include Time-Share and Condo-Hotel in their own statute.
Effective regulation and accountability of the DBPR when dealing with issues.
Better access to education and assistance.
Limiting of special interests in the process.
Use common language.
The Florida Statutes involved will be 34, 455, 468, 718, 719, 720, 721 and 723.
They are available at
http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Index&Title_Request=XL#TitleXL
In the past there has been little cooperation or communication with the several factions, practitioners, stake holders and owner representatives during the drafting process. Some lobbyists guard their special interests to include in legislation as late in the process as possible to prevent any organized opposition. This process is open to everyone and is an experiment to determine if this open drafting method is more reflective of the protections needed for owners in residential communities.
We will use the existing format of 718 as the basis for the drafting unless a better format is developed and will be split into weekly sections.
Input, suggestions and recommendations may be published for discussion purposes, so please indicate if you do not want your name published. Over the years there have been public hearings and in Tallahassee limited time committee hearings. That process by its own structure limits public participation. This is the opportunity to be part of the process. Input based on the sections as they come out will make consideration more efficient.
Below is the first section for consideration. Please provide suggestions with an explanation as to the benefit it provides. The response can be in the form of underline/strikethrough or commentary. If some part reflects back on these sections we will make those changes as they occur.
718.101 Short title.--This chapter shall be known and may be cited as the "Condominium Act."
718.102 Purposes.--The purpose of this chapter is:
(1) To give statutory recognition to the condominium form of ownership of real property.
(2) To establish procedures for the creation, sale, and operation of condominiums.
Every condominium created and existing in this state shall be subject to the provisions of this chapter.
718.103 Definitions.--As used in this chapter, the term:
(1) "Assessment" means a share of the funds which are required for the payment of common expenses, which from time to time is assessed against the unit owner.
(2) "Association" means, in addition to any entity responsible for the operation of common elements owned in undivided shares by unit owners, any entity which operates or maintains other real property in which unit owners have use rights, where membership in the entity is composed exclusively of unit owners or their elected or appointed representatives and is a required condition of unit ownership.
(3) "Association property" means that property, real and personal, which is owned or leased by, or is dedicated by a recorded plat to, the association for the use and benefit of its members.
(4) "Board of administration" or "board" means the board of directors or other representative body which is responsible for administration of the association.
(5) "Buyer" means a person who purchases a condominium unit. The term "purchaser" may be used interchangeably with the term "buyer."
(6) "Bylaws" means the bylaws of the association as they are amended from time to time.
(7) "Committee" means a group of board members, unit owners, or board members and unit owners appointed by the board or a member of the board to make recommendations to the board regarding the proposed annual budget or to take action on behalf of the board.
(8) "Common elements" means the portions of the condominium property not included in the units.
(9) "Common expenses" means all expenses properly incurred by the association in the performance of its duties, including expenses specified in s. 718.115.
(10) "Common surplus" means the amount of all receipts or revenues, including assessments, rents, or profits, collected by a condominium association which exceeds common expenses.
(11) "Condominium" means that form of ownership of real property created pursuant to this chapter, which is comprised entirely of units that may be owned by one or more persons, and in which there is, appurtenant to each unit, an undivided share in common elements.
(12) "Condominium parcel" means a unit, together with the undivided share in the common elements appurtenant to the unit.
(13) "Condominium property" means the lands, leaseholds, and personal property that are subjected to condominium ownership, whether or not contiguous, and all improvements thereon and all easements and rights appurtenant thereto intended for use in connection with the condominium.
(14) "Conspicuous type" means bold type in capital letters no smaller than the largest type, exclusive of headings, on the page on which it appears and, in all cases, at least 10-point type. Where conspicuous type is required, it must be separated on all sides from other type and print. Conspicuous type may be used in a contract for purchase and sale of a unit, a lease of a unit for more than 5 years, or a prospectus or offering circular only where required by law.
(15) "Declaration" or "declaration of condominium" means the instrument or instruments by which a condominium is created, as they are from time to time amended.
(16) "Developer" means a person who creates a condominium or offers condominium parcels for sale or lease in the ordinary course of business, but does not include an owner or lessee of a condominium or cooperative unit who has acquired the unit for his or her own occupancy, nor does it include a cooperative association which creates a condominium by conversion of an existing residential cooperative after control of the association has been transferred to the unit owners if, following the conversion, the unit owners will be the same persons who were unit owners of the cooperative and no units are offered for sale or lease to the public as part of the plan of conversion. A state, county, or municipal entity is not a developer for any purposes under this act when it is acting as a lessor and not otherwise named as a developer in the association.
(17) "Division" means the Division of Florida Condominiums, Timeshares, and Mobile Homes of the Department of Business and Professional Regulation.
(18) "Land" means the surface of a legally described parcel of real property and includes, unless otherwise specified in the declaration and whether separate from or including such surface, airspace lying above and subterranean space lying below such surface. However, if so defined in the declaration, the term "land" may mean all or any portion of the airspace or subterranean space between two legally identifiable elevations and may exclude the surface of a parcel of real property and may mean any combination of the foregoing, whether or not contiguous, or may mean a condominium unit.
(19) "Limited common elements" means those common elements which are reserved for the use of a certain unit or units to the exclusion of all other units, as specified in the declaration.
(20) "Multicondominium" means a real estate development containing two or more condominiums, all of which are operated by the same association.
(21) "Operation" or "operation of the condominium" includes the administration and management of the condominium property.
(22) "Rental agreement" means any written agreement, or oral agreement if for less duration than 1 year, providing for use and occupancy of premises.
(23) "Residential condominium" means a condominium consisting of two or more units, any of which are intended for use as a private temporary or permanent residence, except that a condominium is not a residential condominium if the use for which the units are intended is primarily commercial or industrial and not more than three units are intended to be used for private residence, and are intended to be used as housing for maintenance, managerial, janitorial, or other operational staff of the condominium. With respect to a condominium that is not a timeshare condominium, a residential unit includes a unit intended as a private temporary or permanent residence as well as a unit not intended for commercial or industrial use. With respect to a timeshare condominium, the timeshare instrument as defined in s. 721.05(35) shall govern the intended use of each unit in the condominium. If a condominium is a residential condominium but contains units intended to be used for commercial or industrial purposes, then, with respect to those units which are not intended for or used as private residences, the condominium is not a residential condominium. A condominium which contains both commercial and residential units is a mixed-use condominium and is subject to the requirements of s. 718.404.
(24) "Special assessment" means any assessment levied against a unit owner other than the assessment required by a budget adopted annually.
(25) "Timeshare estate" means any interest in a unit under which the exclusive right of use, possession, or occupancy of the unit circulates among the various purchasers of a timeshare plan pursuant to chapter 721 on a recurring basis for a period of time.
(26) "Timeshare unit" means a unit in which timeshare estates have been created.
(27) "Unit" means a part of the condominium property which is subject to exclusive ownership. A unit may be in improvements, land, or land and improvements together, as specified in the declaration.
(28) "Unit owner" or "owner of a unit" means a record owner of legal title to a condominium parcel.
(29) "Voting certificate" means a document which designates one of the record title owners, or the corporate, partnership, or entity representative, who is authorized to vote on behalf of a condominium unit that is owned by more than one owner or by any entity.
(30) "Voting interests" means the voting rights distributed to the association members pursuant to s. 718.104(4)(j). In a multicondominium association, the voting interests of the association are the voting rights distributed to the unit owners in all condominiums operated by the association. On matters related to a specific condominium in a multicondominium association, the voting interests of the condominium are the voting rights distributed to the unit owners in that condominium.
718.1035 Power of attorney; compliance with chapter.--The use of a power of attorney that affects any aspect of the operation of a condominium shall be subject to and in compliance with the provisions of this chapter and all condominium documents, association rules and other rules adopted pursuant to this chapter, and all other covenants, conditions, and restrictions in force at the time of the execution of the power of attorney.
718.104 Creation of condominiums; contents of declaration.--Every condominium created in this state shall be created pursuant to this chapter.
(1) A condominium may be created on land owned in fee simple or held under a lease complying with the provisions of s. 718.401.
(2) A condominium is created by recording a declaration in the public records of the county where the land is located, executed and acknowledged with the requirements for a deed. All persons who have record title to the interest in the land being submitted to condominium ownership, or their lawfully authorized agents, must join in the execution of the declaration. Upon the recording of the declaration, or an amendment adding a phase to the condominium under s. 718.403(6), all units described in the declaration or phase amendment as being located in or on the land then being submitted to condominium ownership shall come into existence, regardless of the state of completion of planned improvements in which the units may be located. Upon recording the declaration of condominium pursuant to this section, the developer shall file the recording information with the division within 120 calendar days on a form prescribed by the division.
(3) All persons who have any record interest in any mortgage encumbering the interest in the land being submitted to condominium ownership must either join in the execution of the declaration or execute, with the requirements for deed, and record, a consent to the declaration or an agreement subordinating their mortgage interest to the declaration.
(4) The declaration must contain or provide for the following matters:
(a) A statement submitting the property to condominium ownership.
(b) The name by which the condominium property is to be identified, which shall include the word "condominium" or be followed by the words "a condominium."
(c) The legal description of the land and, if a leasehold estate is submitted to condominium, an identification of the lease.
(d) An identification of each unit by letter, name, or number, or combination thereof, so that no unit bears the same designation as any other unit.
(e) A survey of the land which meets the minimum technical standards set forth by the Board of Professional Surveyors and Mappers, pursuant to s. 472.027, and a graphic description of the improvements in which units are located and a plot plan thereof that, together with the declaration, are in sufficient detail to identify the common elements and each unit and their relative locations and approximate dimensions. Failure of the survey to meet minimum technical standards shall not invalidate an otherwise validly created condominium. The survey, graphic description, and plot plan may be in the form of exhibits consisting of building plans, floor plans, maps, surveys, or sketches. If the construction of the condominium is not substantially completed, there shall be a statement to that effect, and, upon substantial completion of construction, the developer or the association shall amend the declaration to include the certificate described below. The amendment may be accomplished by referring to the recording data of a survey of the condominium that complies with the certificate. A certificate of a surveyor and mapper authorized to practice in this state shall be included in or attached to the declaration or the survey or graphic description as recorded under s. 718.105 that the construction of the improvements is substantially complete so that the material, together with the provisions of the declaration describing the condominium property, is an accurate representation of the location and dimensions of the improvements and so that the identification, location, and dimensions of the common elements and of each unit can be determined from these materials. Completed units within each substantially completed building in a condominium development may be conveyed to purchasers, notwithstanding that other buildings in the condominium are not substantially completed, provided that all planned improvements, including, but not limited to, landscaping, utility services and access to the unit, and common-element facilities serving such building, as set forth in the declaration, are first completed and the declaration of condominium is first recorded and provided that as to the units being conveyed there is a certificate of a surveyor and mapper as required above, including certification that all planned improvements, including, but not limited to, landscaping, utility services and access to the unit, and common-element facilities serving the building in which the units to be conveyed are located have been substantially completed, and such certificate is recorded with the original declaration or as an amendment to such declaration. This section shall not, however, operate to require development of improvements and amenities declared to be included in future phases pursuant to s. 718.403 prior to conveying a unit as provided herein. For the purposes of this section, a "certificate of a surveyor and mapper" means certification by a surveyor and mapper in the form provided herein and may include, along with certification by a surveyor and mapper, when appropriate, certification by an architect or engineer authorized to practice in this state. Notwithstanding the requirements of substantial completion provided in this section, nothing contained herein shall prohibit or impair the validity of a mortgage encumbering units together with an undivided interest in the common elements as described in a declaration of condominium recorded prior to the recording of a certificate of a surveyor and mapper as provided herein.
(f) The undivided share of ownership of the common elements and common surplus of the condominium that is appurtenant to each unit stated as a percentage or a fraction of the whole. In the declaration of condominium for residential condominiums created after April 1, 1992, the ownership share of the common elements assigned to each residential unit shall be based either upon the total square footage of each residential unit in uniform relationship to the total square footage of each other residential unit in the condominium or on an equal fractional basis.
(g) The percentage or fractional shares of liability for common expenses of the condominium, which, for all residential units, must be the same as the undivided shares of ownership of the common elements and common surplus appurtenant to each unit as provided for in paragraph (f).
(h) If a developer reserves the right, in a declaration recorded on or after July 1, 2000, to create a multicondominium, the declaration must state, or provide a specific formula for determining, the fractional or percentage shares of liability for the common expenses of the association and of ownership of the common surplus of the association to be allocated to the units in each condominium to be operated by the association. If a declaration recorded on or after July 1, 2000, for a condominium operated by a multicondominium association as originally recorded fails to so provide, the share of liability for the common expenses of the association and of ownership of the common surplus of the association allocated to each unit in each condominium operated by the association shall be a fraction of the whole, the numerator of which is the number "one" and the denominator of which is the total number of units in all condominiums operated by the association.
(i) The name of the association, which must be a corporation for profit or a corporation not for profit.
(j) Unit owners' membership and voting rights in the association.
(k) The document or documents creating the association, which may be attached as an exhibit.
(l) A copy of the bylaws, which shall be attached as an exhibit. Defects or omissions in the bylaws shall not affect the validity of the condominium or title to the condominium parcels.
(m) Other desired provisions not inconsistent with this chapter.
(n) The creation of a nonexclusive easement for ingress and egress over streets, walks, and other rights-of-way serving the units of a condominium, as part of the common elements necessary to provide reasonable access to the public ways, or a dedication of the streets, walks, and other rights-of-way to the public. All easements for ingress and egress shall not be encumbered by any leasehold or lien other than those on the condominium parcels, unless:
1. Any such lien is subordinate to the rights of unit owners, or
2. The holder of any encumbrance or leasehold of any easement has executed and recorded an agreement that the use-rights of each unit owner will not be terminated as long as the unit owner has not been evicted because of a default under the encumbrance or lease, and the use-rights of any mortgagee of a unit who has acquired title to a unit may not be terminated.
(o) If timeshare estates will or may be created with respect to any unit in the condominium, a statement in conspicuous type declaring that timeshare estates will or may be created with respect to units in the condominium. In addition, the degree, quantity, nature, and extent of the timeshare estates that will or may be created shall be defined and described in detail in the declaration, with a specific statement as to the minimum duration of the recurring periods of rights of use, possession, or occupancy that may be created with respect to any unit.
(5) The declaration as originally recorded or as amended under the procedures provided therein may include covenants and restrictions concerning the use, occupancy, and transfer of the units permitted by law with reference to real property. However, the rule against perpetuities shall not defeat a right given any person or entity by the declaration for the purpose of allowing unit owners to retain reasonable control over the use, occupancy, and transfer of units.
(6) A person who joins in, or consents to the execution of, a declaration subjects his or her interest in the condominium property to the provisions of the declaration.
(7) All provisions of the declaration are enforceable equitable servitudes, run with the land, and are effective until the condominium is terminated.
718.1045 Timeshare estates; limitation on creation.--No timeshare estates shall be created with respect to any condominium unit except pursuant to provisions in the declaration expressly permitting the creation of such estates.
718.105 Recording of declaration.--
(1) When executed as required by s. 718.104, a declaration together with all exhibits and all amendments is entitled to recordation as an agreement relating to the conveyance of land.
(2) Graphic descriptions of improvements constituting exhibits to a declaration, when accompanied by the certificate of a surveyor required by s. 718.104, may be recorded as a part of a declaration without approval of any public body or officer.
(3) The clerk of the circuit court recording the declaration may, for his or her convenience, file the exhibits of a declaration which contains graphic descriptions of improvements in a separate book, and shall indicate the place of filing upon the margin of the record of the declaration.
(4)(a) If the declaration does not have the certificate or the survey or graphic description of the improvements required under s. 718.104(4)(e), the developer shall deliver therewith to the clerk an estimate, signed by a surveyor authorized to practice in this state, of the cost of a final survey or graphic description providing the certificate prescribed by s. 718.104(4)(e), and shall deposit with the clerk the sum of money specified in the estimate.
(b) The clerk shall hold the money until an amendment to the declaration is recorded that complies with the certificate requirements of s. 718.104(4)(e). At that time, the clerk shall pay to the person presenting the amendment to the declaration the sum of money deposited, without making any charge for holding the sum, receiving it, or paying out, other than the fees required for recording the condominium documents.
(c) If the sum of money held by the clerk has not been paid to the developer or association as provided in paragraph (b) within 3 years after the date the declaration was originally recorded, the clerk may notify, in writing, the registered agent of the association that the sum is still available and the purpose for which it was deposited. If the association does not record the certificate within 90 days after the clerk has given the notice, the clerk may disburse the money to the developer. If the developer cannot be located, the clerk shall disburse the money to the Division of Florida Condominiums, Timeshares, and Mobile Homes for deposit in the Division of Florida Condominiums, Timeshares, and Mobile Homes Trust Fund.
(5) When a declaration of condominium is recorded pursuant to this section, a certificate or receipted bill shall be filed with the clerk of the circuit court in the county where the property is located showing that all taxes due and owing on the property have been paid in full as of the date of recordation.
718.106 Condominium parcels; appurtenances; possession and enjoyment.--
(1) A condominium parcel created by the declaration is a separate parcel of real property, even though the condominium is created on a leasehold.
(2) There shall pass with a unit, as appurtenances thereto:
(a) An undivided share in the common elements and common surplus.
(b) The exclusive right to use such portion of the common elements as may be provided by the declaration, including the right to transfer such right to other units or unit owners to the extent authorized by the declaration as originally recorded, or amendments to the declaration adopted pursuant to the provisions contained therein. Amendments to declarations of condominium providing for the transfer of use rights with respect to limited common elements are not amendments that materially modify unit appurtenances as described in s. 718.110(4). However, in order to be effective, the transfer of use rights with respect to limited common elements must be effectuated in conformity with the procedures set forth in the declaration as originally recorded or as amended under the procedures provided therein. This section is intended to clarify existing law and applies to associations existing on the effective date of this act.
(c) An exclusive easement for the use of the airspace occupied by the unit as it exists at any particular time and as the unit may lawfully be altered or reconstructed from time to time. An easement in airspace which is vacated shall be terminated automatically.
(d) Membership in the association designated in the declaration, with the full voting rights appertaining thereto.
(e) Other appurtenances as may be provided in the declaration.
(3) A unit owner is entitled to the exclusive possession of his or her unit, subject to the provisions of s. 718.111(5). He or she is entitled to use the common elements in accordance with the purposes for which they are intended, but no use may hinder or encroach upon the lawful rights of other unit owners.
(4) When a unit is leased, a tenant shall have all use rights in the association property and those common elements otherwise readily available for use generally by unit owners and the unit owner shall not have such rights except as a guest, unless such rights are waived in writing by the tenant. Nothing in this subsection shall interfere with the access rights of the unit owner as a landlord pursuant to chapter 83. The association shall have the right to adopt rules to prohibit dual usage by a unit owner and a tenant of association property and common elements otherwise readily available for use generally by unit owners.
(5) A local government may not adopt an ordinance or regulation that prohibits condominium unit owners or their guests, licensees, or invitees from pedestrian access to a public beach contiguous to a condominium property, except where necessary to protect public health, safety, or natural resources. This subsection does not prohibit a governmental entity from enacting regulations governing activities taking place on the beach.
Wednesday, June 17, 2009
Chinese drywall lawsuits to be heard in New Orleans
Florida lost the fight for venue, and the U.S. District Court for the Eastern District of Louisiana will consolidate cases from around the nation, according to an order issued Monday by the Judicial Panel on Multidistrict Litigation (JPML). The order applies to pending and future cases.
JPML overrode Florida requests for venue based on the experience of Louisiana judge who would hear the case, Judge Eldon E. Fallon. Florida officials argued that the state had the highest number of Chinese drywall cases; therefore, it made sense to hold the trial in the Sunshine State. But the judge has experience in large-scale litigation, and recently oversaw a case involving the drug Vioxx.
The order immediately moves 10 lawsuits in Florida, Louisiana and Ohio to New Orleans. An additional 67 cases might also be included, and website Law.com estimates that as many as 1,000 cases may eventually be part of it.
“I really wish (the litigation) stayed in Florida,” says Kristin Culliton, a Florida homeowner and lead plaintiff in one of the cases now moving to New Orleans. “(This is) where most of us are. It’s where it all began and where it belonged.”
Multidistrict litigation (MDL) puts all cases under a single judge to make the process easier. It seeks to avoid inconsistent rulings, conserve the parties’ resources, and save time for the court and witnesses.
So far, 18 states have reported Chinese drywall problems, in which ingredients used to make the drywall give off a sulfur smell and damage metal, such as air conditioning coils. A study last month by the Environmental Protection Agency (EPA) found a higher level of sulfur in Chinese manufactured drywall, along with two organic compounds usually found in acrylic paint. None of those ingredients is found in American-made drywall.
The EPA did not, however, rule on whether those compounds can harm metal pipes or people.
Source: Newsinferno.com
JPML overrode Florida requests for venue based on the experience of Louisiana judge who would hear the case, Judge Eldon E. Fallon. Florida officials argued that the state had the highest number of Chinese drywall cases; therefore, it made sense to hold the trial in the Sunshine State. But the judge has experience in large-scale litigation, and recently oversaw a case involving the drug Vioxx.
The order immediately moves 10 lawsuits in Florida, Louisiana and Ohio to New Orleans. An additional 67 cases might also be included, and website Law.com estimates that as many as 1,000 cases may eventually be part of it.
“I really wish (the litigation) stayed in Florida,” says Kristin Culliton, a Florida homeowner and lead plaintiff in one of the cases now moving to New Orleans. “(This is) where most of us are. It’s where it all began and where it belonged.”
Multidistrict litigation (MDL) puts all cases under a single judge to make the process easier. It seeks to avoid inconsistent rulings, conserve the parties’ resources, and save time for the court and witnesses.
So far, 18 states have reported Chinese drywall problems, in which ingredients used to make the drywall give off a sulfur smell and damage metal, such as air conditioning coils. A study last month by the Environmental Protection Agency (EPA) found a higher level of sulfur in Chinese manufactured drywall, along with two organic compounds usually found in acrylic paint. None of those ingredients is found in American-made drywall.
The EPA did not, however, rule on whether those compounds can harm metal pipes or people.
Source: Newsinferno.com
Monday, June 15, 2009
Bad drywall leaves owners frustrated, fearful
Kent Burkman and Rosie Puello-Burkman and their two kids live in a rental house in Boca Raton while their two-story dream home 20 miles away is stripped to the bare slats to remedy a homeowner’s horror: defective Chinese drywall.
Their builder, GL Homes, is fixing their house and at least two dozen others in the 500-home Canyon Isles development off Lyons Road west of Boynton Beach. For that, the Burkmans consider themselves fortunate. But they worry. They don’t know when the house will be finished. They don’t know whether the home they bought for $890,882 in late 2006 will be safe and structurally sound. And they don’t know whether their once-pristine neighborhood will ever be the same.
“Our family has been turned upside down,” Kent Burkman said. “It’s horrible to think that it’s no longer your home, it’s your problem.”
After hurricanes, foreclosures and dizzying price declines, contaminated drywall from China is the latest hardship facing homeowners. Not all Chinese drywall is bad, but as many as 36,000 homes in Florida and 100,000 nationwide may contain defective wallboard, which can give off a sulfurous “rotten egg” odor, tarnish metals and ruin appliances and electronics by corroding pipes and wires.
Complaints in Broward and Palm Beach counties generally have come from Parkland, Pompano Beach, Davie and communities west of Delray Beach and Boynton Beach. But local officials fear the problem is more widespread. Scores of bank-owned houses and condominiums may have the defective drywall and the lenders don’t know it because no one lives in the homes.
Homeowners insist the drywall is making them sick, causing nosebleeds, headaches, sore throats and respiratory issues. State and federal agencies have yet to determine whether the wallboard poses a health threat. The Florida Department of Health is waiting for results after testing the air quality of a house in Parkland last week.
Most complaints involve homes built from 2002 to 2006 during the housing boom that caused a shortage of materials. Builders then began using imports. Homes rebuilt after the busy 2004 and 2005 hurricane seasons also are at risk for the defective drywall.
Some homeowners are filing suits, accusing builders and Chinese drywall manufacturers of running from the problem. Others are moving out of the homes and don’t know when or if they’ll be fixed.
Parkland resident Holly Krulik moved her family of four in with her parents in April after she discovered her house in Heron Bay had defective Chinese drywall.
“I’m lucky I have parents here,” she said. “Many of my neighbors don’t have the financial means to seek a rental.”
Her builder, WCI Communities Inc., has yet to fix the house, and she realizes it could be months or years before WCI steps up. If ever.
A spokeswoman for WCI did not return calls last week. The builder has said it is responding to complaints by inspecting homes but is limited in what it can do to solve the problem because it has filed for Chapter 11 bankruptcy protection.
The Burkmans say they’re grateful GL is working with them and paying for their rental home, but they’re still concerned because there are no uniform standards for fixing a home that has the defective wallboard.
“They’re learning as they go and concluding what needs to be done,” Kent Burkman, 44, said of GL. “There’s no certification that their process is complete and correct.”
GL Homes executives declined to be interviewed. In a statement, the Sunrise-based builder said workers installed Chinese drywall in a “limited number” of homes between February and November 2006.
GL said it has hired independent experts to ensure the homes are being repaired correctly. The builder said it has exceeded the experts’ recommendations and is giving one-year warranties against defects in materials and workmanship. The company did not say who the experts are or how it is going beyond their recommendations. After discovering the Chinese drywall in the Burkmans’ home in April, GL said it planned to rip out all the drywall, insulation, air-conditioning duct work and the copper plumbing. Essentially, the home would be stripped to its bones.
The Burkmans said GL gave them $3,000 a month to move to temporary quarters. The couple moved out of their house May 1 and signed a four-month lease for the rental. The company didn’t say what will happen after that.
The builder said the Burkmans would be back in their home in eight to 16 weeks. But they aren’t counting on it.
“We’ll be amazed if we’re back in by Christmas,” said Rosie Puello-Burkman, 42, a marketing vice president for JM Family Enterprises in Deerfield Beach.
They said they took days off from work and spent several hundred dollars to pack and move into the rental house that’s half the size of their Canyon Isles home. Everything they left behind was put into storage at GL’s expense.
The Burkmans are trying to limit the strain on their 9-year-old son and 7-year-old daughter, telling them simply that their house is being renovated.
Kent Burkman, a real estate agent, stops by the house each day to check on the progress. The family is still responsible for mowing the yard and paying the quarterly homeowner association fees of $924.
The couple hasn’t had any luck getting their lender to suspend mortgage payments while they’re out of the house. They declined to say what their monthly mortgage payment is.
The Burkmans insist they won’t walk away from the home because they have too much invested in it. But they can see why homeowners without equity would choose to hand the keys back to the bank.
Their gated development looks like a construction site. Huge Dumpsters and portable toilets sit in the front yards of the houses with the defective drywall. Passers-by can see from the streets the exposed framework.
In response to mounting drywall complaints, the Florida Association of Realtors has added an optional disclosure form for sellers of homes built during the past few years. The Consumer Product Safety Commission advises prospective homebuyers to inspect exposed drywall.
At a recent drywall litigation conference in Orlando, scientists, government officials, lawyers and property insurers agreed there are more questions than answers. And real estate agents say it’s unclear what effect the drywall will have on the beleaguered housing market.
“It’s just too new,” said Marla Martin, a spokeswoman for the state Realtors’ group. “But if you’re a buyer, this has to be on your radar.”
Kent Burkman said he’s not aware of any Canyon Isles homes selling since the drywall was discovered. He said he doesn’t blame buyers for staying away.
The Burkmans get by as best they can, all the while wondering: Will their home regain its value? Will Canyon Isles overcome the stigma? Will they ever get to resume the lifestyle they chose when they bought there?
“I’d like to say we’ll get all that back,” Kent Burkman said. “But at this point, you have to ask, ‘How?’”
Copyright © 2009 Sun Sentinel, Fort Lauderdale, Fla., Paul Owers. Distributed by McClatchy-Tribune Information Services.
Their builder, GL Homes, is fixing their house and at least two dozen others in the 500-home Canyon Isles development off Lyons Road west of Boynton Beach. For that, the Burkmans consider themselves fortunate. But they worry. They don’t know when the house will be finished. They don’t know whether the home they bought for $890,882 in late 2006 will be safe and structurally sound. And they don’t know whether their once-pristine neighborhood will ever be the same.
“Our family has been turned upside down,” Kent Burkman said. “It’s horrible to think that it’s no longer your home, it’s your problem.”
After hurricanes, foreclosures and dizzying price declines, contaminated drywall from China is the latest hardship facing homeowners. Not all Chinese drywall is bad, but as many as 36,000 homes in Florida and 100,000 nationwide may contain defective wallboard, which can give off a sulfurous “rotten egg” odor, tarnish metals and ruin appliances and electronics by corroding pipes and wires.
Complaints in Broward and Palm Beach counties generally have come from Parkland, Pompano Beach, Davie and communities west of Delray Beach and Boynton Beach. But local officials fear the problem is more widespread. Scores of bank-owned houses and condominiums may have the defective drywall and the lenders don’t know it because no one lives in the homes.
Homeowners insist the drywall is making them sick, causing nosebleeds, headaches, sore throats and respiratory issues. State and federal agencies have yet to determine whether the wallboard poses a health threat. The Florida Department of Health is waiting for results after testing the air quality of a house in Parkland last week.
Most complaints involve homes built from 2002 to 2006 during the housing boom that caused a shortage of materials. Builders then began using imports. Homes rebuilt after the busy 2004 and 2005 hurricane seasons also are at risk for the defective drywall.
Some homeowners are filing suits, accusing builders and Chinese drywall manufacturers of running from the problem. Others are moving out of the homes and don’t know when or if they’ll be fixed.
Parkland resident Holly Krulik moved her family of four in with her parents in April after she discovered her house in Heron Bay had defective Chinese drywall.
“I’m lucky I have parents here,” she said. “Many of my neighbors don’t have the financial means to seek a rental.”
Her builder, WCI Communities Inc., has yet to fix the house, and she realizes it could be months or years before WCI steps up. If ever.
A spokeswoman for WCI did not return calls last week. The builder has said it is responding to complaints by inspecting homes but is limited in what it can do to solve the problem because it has filed for Chapter 11 bankruptcy protection.
The Burkmans say they’re grateful GL is working with them and paying for their rental home, but they’re still concerned because there are no uniform standards for fixing a home that has the defective wallboard.
“They’re learning as they go and concluding what needs to be done,” Kent Burkman, 44, said of GL. “There’s no certification that their process is complete and correct.”
GL Homes executives declined to be interviewed. In a statement, the Sunrise-based builder said workers installed Chinese drywall in a “limited number” of homes between February and November 2006.
GL said it has hired independent experts to ensure the homes are being repaired correctly. The builder said it has exceeded the experts’ recommendations and is giving one-year warranties against defects in materials and workmanship. The company did not say who the experts are or how it is going beyond their recommendations. After discovering the Chinese drywall in the Burkmans’ home in April, GL said it planned to rip out all the drywall, insulation, air-conditioning duct work and the copper plumbing. Essentially, the home would be stripped to its bones.
The Burkmans said GL gave them $3,000 a month to move to temporary quarters. The couple moved out of their house May 1 and signed a four-month lease for the rental. The company didn’t say what will happen after that.
The builder said the Burkmans would be back in their home in eight to 16 weeks. But they aren’t counting on it.
“We’ll be amazed if we’re back in by Christmas,” said Rosie Puello-Burkman, 42, a marketing vice president for JM Family Enterprises in Deerfield Beach.
They said they took days off from work and spent several hundred dollars to pack and move into the rental house that’s half the size of their Canyon Isles home. Everything they left behind was put into storage at GL’s expense.
The Burkmans are trying to limit the strain on their 9-year-old son and 7-year-old daughter, telling them simply that their house is being renovated.
Kent Burkman, a real estate agent, stops by the house each day to check on the progress. The family is still responsible for mowing the yard and paying the quarterly homeowner association fees of $924.
The couple hasn’t had any luck getting their lender to suspend mortgage payments while they’re out of the house. They declined to say what their monthly mortgage payment is.
The Burkmans insist they won’t walk away from the home because they have too much invested in it. But they can see why homeowners without equity would choose to hand the keys back to the bank.
Their gated development looks like a construction site. Huge Dumpsters and portable toilets sit in the front yards of the houses with the defective drywall. Passers-by can see from the streets the exposed framework.
In response to mounting drywall complaints, the Florida Association of Realtors has added an optional disclosure form for sellers of homes built during the past few years. The Consumer Product Safety Commission advises prospective homebuyers to inspect exposed drywall.
At a recent drywall litigation conference in Orlando, scientists, government officials, lawyers and property insurers agreed there are more questions than answers. And real estate agents say it’s unclear what effect the drywall will have on the beleaguered housing market.
“It’s just too new,” said Marla Martin, a spokeswoman for the state Realtors’ group. “But if you’re a buyer, this has to be on your radar.”
Kent Burkman said he’s not aware of any Canyon Isles homes selling since the drywall was discovered. He said he doesn’t blame buyers for staying away.
The Burkmans get by as best they can, all the while wondering: Will their home regain its value? Will Canyon Isles overcome the stigma? Will they ever get to resume the lifestyle they chose when they bought there?
“I’d like to say we’ll get all that back,” Kent Burkman said. “But at this point, you have to ask, ‘How?’”
Copyright © 2009 Sun Sentinel, Fort Lauderdale, Fla., Paul Owers. Distributed by McClatchy-Tribune Information Services.
Safety: Bike and Scooter Safety Tips
One Property Management wants your kids to be safe while riding their bikes and scooters in our community, and we recognize that you can’t be there to watch them all the time. Here are four steps that could increase their safety when you’re not around.
• Teach kids how to fall. Learning how to ride correctly is only part of what keeps a kid safe. Falls are inevitable, and teaching your children to fall correctly will prevent many serious injuries. Teach them to roll on impact, relax their body, and try to land on their padded and fleshiest parts.
• Check equipment. Check bikes and scooters for cracks or dents, sharp metal parts, jutting edges and slippery surfaces. Replace defective equipment, consult a professional for repairs and apply self-adhesive, non-slip material to slippery surfaces.
• Make a rule for your kids—one person to each piece of equipment. They might be less likely to hop on a friend’s scooter if they know it’s unsafe and that they’ll have to pay for replacing it when it breaks.
• Require protective equipment. Scooters, roller blades, bikes and similar equipment cause thousands of injuries—and even some deaths—every year. Make sure your children are wearing helmets, knee pads and elbow pads, especially if they are just learning. Buy a helmet your kid thinks is cool and you know is safe—it’s worth the extra money if your child is more likely to wear it.
• Teach kids how to fall. Learning how to ride correctly is only part of what keeps a kid safe. Falls are inevitable, and teaching your children to fall correctly will prevent many serious injuries. Teach them to roll on impact, relax their body, and try to land on their padded and fleshiest parts.
• Check equipment. Check bikes and scooters for cracks or dents, sharp metal parts, jutting edges and slippery surfaces. Replace defective equipment, consult a professional for repairs and apply self-adhesive, non-slip material to slippery surfaces.
• Make a rule for your kids—one person to each piece of equipment. They might be less likely to hop on a friend’s scooter if they know it’s unsafe and that they’ll have to pay for replacing it when it breaks.
• Require protective equipment. Scooters, roller blades, bikes and similar equipment cause thousands of injuries—and even some deaths—every year. Make sure your children are wearing helmets, knee pads and elbow pads, especially if they are just learning. Buy a helmet your kid thinks is cool and you know is safe—it’s worth the extra money if your child is more likely to wear it.
Committees: Volunteer for an Association Committee
Committees are an important part of our association operations. Committee members help keep our community vibrant; and, by augmenting paid staff, they save the association thousands of dollars each year. The association just wouldn’t be what it is without our active and effective committees. They deserve our sincerest thanks.
However, to be successful, our association needs to cultivate fresh ideas and encourage additional resident involvement in our committees; so, we’d like your help on one of our committees.
Committees give the board a way to gather information, offer new ideas and opinions and provide a training ground for future board members. All committees are advisory to the board unless given specific decision-making authority by the board or CC&Rs.
The board provides each committee with a job description, goal and mission statement to help it succeed as a community resource.
Our association has three types of committees:
• Administrative committees, like our architectural control committee, are set out in our association’s bylaws and CC&Rs. They are ongoing, permanent and often have clearly defined power and authority.
• Standing committees, such as our finance and facility management committees, are established by the board for an ongoing and specific purpose. These committees generally make recommendations to and act under the supervision of the board.
• Ad-hoc committees, such as our summer picnic committee, are established by the board as needed for specific projects and tasks. When the task is complete, the committee is disbanded.
So, if you're thinking about running for the board and want to learn a little more about association operations first, or if you're interested in helping improve your community or just want to get out and meet neighbors, we would be thrilled to talk to you about our committees and how you might be able to help. Contact any member of the board or call the manager for more information.
However, to be successful, our association needs to cultivate fresh ideas and encourage additional resident involvement in our committees; so, we’d like your help on one of our committees.
Committees give the board a way to gather information, offer new ideas and opinions and provide a training ground for future board members. All committees are advisory to the board unless given specific decision-making authority by the board or CC&Rs.
The board provides each committee with a job description, goal and mission statement to help it succeed as a community resource.
Our association has three types of committees:
• Administrative committees, like our architectural control committee, are set out in our association’s bylaws and CC&Rs. They are ongoing, permanent and often have clearly defined power and authority.
• Standing committees, such as our finance and facility management committees, are established by the board for an ongoing and specific purpose. These committees generally make recommendations to and act under the supervision of the board.
• Ad-hoc committees, such as our summer picnic committee, are established by the board as needed for specific projects and tasks. When the task is complete, the committee is disbanded.
So, if you're thinking about running for the board and want to learn a little more about association operations first, or if you're interested in helping improve your community or just want to get out and meet neighbors, we would be thrilled to talk to you about our committees and how you might be able to help. Contact any member of the board or call the manager for more information.
Identity Theft: Thieves in the Waste Basket
Most—but not all—identity theft now occurs electronically. But your identity can still be easily scored by thieves who make use of what you toss in your waste basket, too.
Trash facilities and recycling centers can be gold mines of personal information for enterprising dumpster divers. That is, unless you shred documents that contain identifying information—charge receipts, credit applications, insurance forms, physician statements, canceled checks and bank statements and even expired charge cards.
Beware also of those bothersome credit offers you get in the mail and toss unopened into the trash—particularly the pre-approved variety. Clever scammers complete these blank applications, obtain a credit card in your name, charge it to the limit and close the account before you receive the first billing statement. To protect yourself, all you have to do is tear the unopened envelop in half once or twice before tossing it in the waste basket.
Better yet, you can eliminate these prescreened credit offers from your mailbox by calling 1-888-5-OPT-OUT (1-888-567-8688) to opt out. You’ll be asked to provide your Social Security number so the consumer reporting companies can match you with your file.
Also, deposit your outgoing mail containing personally identifying information in post office collection boxes or at your local post office, rather than in an unsecured mailbox. Promptly remove mail from your mailbox. If you're planning to be away from home and can't pick up your mail, contact the U.S. Postal Service at 1-800-275-8777 or online at www.usps.gov to request a vacation hold. The Postal Service will hold your mail at your local post office until you can pick it up or are home to receive it.
The Federal Trade Commission has more information on identity theft and prevention tips at www.ftc.gov/bcp/edu/microsites/idtheft/.
Trash facilities and recycling centers can be gold mines of personal information for enterprising dumpster divers. That is, unless you shred documents that contain identifying information—charge receipts, credit applications, insurance forms, physician statements, canceled checks and bank statements and even expired charge cards.
Beware also of those bothersome credit offers you get in the mail and toss unopened into the trash—particularly the pre-approved variety. Clever scammers complete these blank applications, obtain a credit card in your name, charge it to the limit and close the account before you receive the first billing statement. To protect yourself, all you have to do is tear the unopened envelop in half once or twice before tossing it in the waste basket.
Better yet, you can eliminate these prescreened credit offers from your mailbox by calling 1-888-5-OPT-OUT (1-888-567-8688) to opt out. You’ll be asked to provide your Social Security number so the consumer reporting companies can match you with your file.
Also, deposit your outgoing mail containing personally identifying information in post office collection boxes or at your local post office, rather than in an unsecured mailbox. Promptly remove mail from your mailbox. If you're planning to be away from home and can't pick up your mail, contact the U.S. Postal Service at 1-800-275-8777 or online at www.usps.gov to request a vacation hold. The Postal Service will hold your mail at your local post office until you can pick it up or are home to receive it.
The Federal Trade Commission has more information on identity theft and prevention tips at www.ftc.gov/bcp/edu/microsites/idtheft/.
Maintenance: Dealing with Graffiti
We’ve had several incidents of graffiti in the neighborhood recently. The association monitors and immediately removes graffiti from common areas and encourages you to do the same with your property. The association recommends these steps for dealing with graffiti:
• If you happen to see someone defacing property, don't try to stop it yourself. Call the police immediately and report a vandalism in progress. Make a mental note of as many details as possible about the perpetrators—how many, what age, male or female, distinctive clothing—that will help police.
• Encourage your neighbors to do the same—watch for and report graffiti vandals.
• When graffiti appears on your property, photograph it before removing it. Record when and where it appeared, when it was removed, the cost and other relevant information. Share your documentation with the police and insurance agent.
• Remove graffiti immediately. "Taggers" gain more notoriety the longer the graffiti remains. Removing it quickly sends a message that you care about our community.
• Install good lighting in areas vulnerable to graffiti.
• Plant shrubs or climbing vines in graffiti-prone areas. Or, replace walls with hedges.
• In problem areas where graffiti reappears regularly, try applying a layer of clear paint or silicone coating over painted surfaces. This will make cleaning future graffiti much easier.
Working together, we can reduce this problem in our community.
• If you happen to see someone defacing property, don't try to stop it yourself. Call the police immediately and report a vandalism in progress. Make a mental note of as many details as possible about the perpetrators—how many, what age, male or female, distinctive clothing—that will help police.
• Encourage your neighbors to do the same—watch for and report graffiti vandals.
• When graffiti appears on your property, photograph it before removing it. Record when and where it appeared, when it was removed, the cost and other relevant information. Share your documentation with the police and insurance agent.
• Remove graffiti immediately. "Taggers" gain more notoriety the longer the graffiti remains. Removing it quickly sends a message that you care about our community.
• Install good lighting in areas vulnerable to graffiti.
• Plant shrubs or climbing vines in graffiti-prone areas. Or, replace walls with hedges.
• In problem areas where graffiti reappears regularly, try applying a layer of clear paint or silicone coating over painted surfaces. This will make cleaning future graffiti much easier.
Working together, we can reduce this problem in our community.
Free Stuff: Goodbye Clip, Hello Click
Before you head out to the grocery store or the mall, do a little web browsing for online coupons that can save you a bundle. According to the Promotion Marketing Association Coupon Council, the average savings per coupon is $1.15.
Most online coupon sites are searchable by brand name or product category, which allows you to find coupons quickly for the specific items on your list—a big plus for list shoppers. If you’re headed to a particular store, be sure to check that store’s website for special offers. Well-known product manufacturers have printable coupons listed on their websites.
Of course, you’ll need to print the coupons to take with you, but the online versions are easier to find and there’s no clipping involved. Some sites will require you to download software to print the coupons. This is necessary for the barcode to print correctly and scan easily at the checkout counter.
Most sites will want you to register using your e-mail address. If you’re a serious coupon user, this can be good, since the sites will provide customized information and incentives based on your favorite brands.
Entering “free coupons” or “grocery coupons,” in your web browser will bring up thousands of sites, all offering similar basics; and each one usually has a few extras or special features. For example, one may e-mail coupons to you for grocery stores in your neighborhood based on your zip code. Another will invite you to sign up to receive free samples of your favorite products in the mail. Websites and features seem almost endless, so it’s easy to find a few you like. For example, typical sites include:
• www.ShopAtHome.com. This site lists stores alphabetically, so you can look for deals and coupons before leaving home. It offers financial incentives for joining.
• www.eBates.com. Joining this site earns you rebates when you shop at certain online stores.
• www. yadahome.com. This site allows you to create your grocery list online and then searches for matching coupons.
Beware of websites “selling” coupons. Some are legitimate, but many are fraudulent. Considering how many websites have free coupons, you may never face this problem.
Most online coupon sites are searchable by brand name or product category, which allows you to find coupons quickly for the specific items on your list—a big plus for list shoppers. If you’re headed to a particular store, be sure to check that store’s website for special offers. Well-known product manufacturers have printable coupons listed on their websites.
Of course, you’ll need to print the coupons to take with you, but the online versions are easier to find and there’s no clipping involved. Some sites will require you to download software to print the coupons. This is necessary for the barcode to print correctly and scan easily at the checkout counter.
Most sites will want you to register using your e-mail address. If you’re a serious coupon user, this can be good, since the sites will provide customized information and incentives based on your favorite brands.
Entering “free coupons” or “grocery coupons,” in your web browser will bring up thousands of sites, all offering similar basics; and each one usually has a few extras or special features. For example, one may e-mail coupons to you for grocery stores in your neighborhood based on your zip code. Another will invite you to sign up to receive free samples of your favorite products in the mail. Websites and features seem almost endless, so it’s easy to find a few you like. For example, typical sites include:
• www.ShopAtHome.com. This site lists stores alphabetically, so you can look for deals and coupons before leaving home. It offers financial incentives for joining.
• www.eBates.com. Joining this site earns you rebates when you shop at certain online stores.
• www. yadahome.com. This site allows you to create your grocery list online and then searches for matching coupons.
Beware of websites “selling” coupons. Some are legitimate, but many are fraudulent. Considering how many websites have free coupons, you may never face this problem.
Conservation: Tips for Keeping Water Clean
Keeping water clean begins with each of us—where we live, work and play, and with the simple daily actions we take. Here are a few ways you can make a difference to reduce pollution:
• Plant trees, shrubs and groundcovers, especially around surface water. Vegetation acts as a natural filter for runoff entering ponds, lakes or streams. Plants can also prevent shoreline erosion and keep soil from washing away.
• Maintain a healthy lawn. A dense, healthy lawn can be an excellent filter for pollutants. Before you apply fertilizers, test your soil so you apply only what you need. Use the right fertilizer, at the right time and in the proper amount.
• Clean up after pets. Dispose of pet waste in the garbage.
• Compost grass clippings, leaves and garden waste. When these materials are washed into streams and lakes, they decay, which in turn consumes oxygen fish and other aquatic animals need to survive.
• Practice integrated pest management (IPM) around your home and garden. IPM reduces pest problems through a variety of cultural, mechanical, biological and chemical methods. Try to eliminate chemical use or keep pesticide use to a minimum by using them only when other methods are not successful.
• Maintain your vehicles in good condition to prevent leaks such as oil or antifreeze. Spilled motor oil, gasoline and lubricants can contaminate wells and streams.
Visit www.auduboninternational.org for more conservation tips.
• Plant trees, shrubs and groundcovers, especially around surface water. Vegetation acts as a natural filter for runoff entering ponds, lakes or streams. Plants can also prevent shoreline erosion and keep soil from washing away.
• Maintain a healthy lawn. A dense, healthy lawn can be an excellent filter for pollutants. Before you apply fertilizers, test your soil so you apply only what you need. Use the right fertilizer, at the right time and in the proper amount.
• Clean up after pets. Dispose of pet waste in the garbage.
• Compost grass clippings, leaves and garden waste. When these materials are washed into streams and lakes, they decay, which in turn consumes oxygen fish and other aquatic animals need to survive.
• Practice integrated pest management (IPM) around your home and garden. IPM reduces pest problems through a variety of cultural, mechanical, biological and chemical methods. Try to eliminate chemical use or keep pesticide use to a minimum by using them only when other methods are not successful.
• Maintain your vehicles in good condition to prevent leaks such as oil or antifreeze. Spilled motor oil, gasoline and lubricants can contaminate wells and streams.
Visit www.auduboninternational.org for more conservation tips.
Contractors: Call an Electrician
The guests are on their way, the food is cooked and suddenly the light over the dinner table goes out. A new bulb doesn’t fix the problem, and neither does flipping the switch that controls the light circuit in the fuse box off and on. You know the same light has given you trouble before, and you might think you even know the difference between that green ground wire and the black hot wire. You remove the light switch from the wall and see some of the wires have apparently become disconnected. Time to just shut off the fuse and reconnect them, right?
Wrong. Each year 67,800 fires result from home electrical problems just like this one, according to the U.S. Fire Administration. Twice as many of those are due to improper wiring as appliance failures.
It’s not that you don’t know what you’re doing or that you can’t read a how-to guide—the last residents may have done it improperly themselves. They may have reversed wires, replaced the wire with wrong gauge or put too much strain on the fuse (called over lamping). The only way to know you are correctly wiring is to use a special tool called a voltage meter to check for hot wires.
The only safe bet is to consult a licensed electrician. Electricians not only have the tools you don’t, like lineman’s pliers and voltage meters, they have extensive internships (typically 3-7 years) under their belts. They intern for a reason—without proper training, you can seriously hurt yourself by mixing up cables or not taking the proper precautions. For your own safety, and for the safety of the community, get in touch with us about your electrical problems, however small. We can recommend some certified electricians we’ve worked with before. Besides, your guests would rather eat by candlelight than not eat at all!
Wrong. Each year 67,800 fires result from home electrical problems just like this one, according to the U.S. Fire Administration. Twice as many of those are due to improper wiring as appliance failures.
It’s not that you don’t know what you’re doing or that you can’t read a how-to guide—the last residents may have done it improperly themselves. They may have reversed wires, replaced the wire with wrong gauge or put too much strain on the fuse (called over lamping). The only way to know you are correctly wiring is to use a special tool called a voltage meter to check for hot wires.
The only safe bet is to consult a licensed electrician. Electricians not only have the tools you don’t, like lineman’s pliers and voltage meters, they have extensive internships (typically 3-7 years) under their belts. They intern for a reason—without proper training, you can seriously hurt yourself by mixing up cables or not taking the proper precautions. For your own safety, and for the safety of the community, get in touch with us about your electrical problems, however small. We can recommend some certified electricians we’ve worked with before. Besides, your guests would rather eat by candlelight than not eat at all!
Thursday, June 11, 2009
The Florida Department of Health has completed air-quality tests at a home built with Chinese drywall.
The Florida Department of Health has completed air-quality tests at a home built with Chinese drywall.
Officials collected air samples from the Parkland home over three days through Wednesday. The samples were sent to laboratories in Lakeland and Atlanta for analysis. The homeowners had complained about coughing and feeling dizzy.
A state toxicologist, David Krause, says the testing cost the state between $40,000 and $50,000.
State and federal officials say no testing yet has confirmed the drywall poses health risks, though homeowners nationwide have complained about nose bleeds, headaches, sore throats and other ailments.
As many as 36,000 homes in Florida are estimated to have the defective drywall.
Source: AP
Officials collected air samples from the Parkland home over three days through Wednesday. The samples were sent to laboratories in Lakeland and Atlanta for analysis. The homeowners had complained about coughing and feeling dizzy.
A state toxicologist, David Krause, says the testing cost the state between $40,000 and $50,000.
State and federal officials say no testing yet has confirmed the drywall poses health risks, though homeowners nationwide have complained about nose bleeds, headaches, sore throats and other ailments.
As many as 36,000 homes in Florida are estimated to have the defective drywall.
Source: AP
Governor Vetoes SB 714; Unit Owner Insurance Coverage & Board Obligations
SB 714 Designed to Clarify Insurance Requirements & Provide Relief to Homeowners by Delaying Fire Sprinkler Retrofit.
Condominium Unit Owners Required to Maintain Insurance Coverage.
Governor Charlie Crist vetoed SB 714. Too bad - SB 714 would have relieved Condominium Unit Owners from maintaining individual property insurance and likewise relieved Associations from the burden of requesting insurance certificates.
Governor Crist expressed his concerns regarding the fire sprinkler retrofitting extension in his veto letter, citing safety risks. This means that condominium associations throughout Florida will have to retrofit their buildings, or partially retrofit (if authorized by membership vote as set forth in Section 718.112(2)(l), Florida Statutes) by December 31, 2014, something that struggling condominium associations cannot afford at this time.
Read Governor Crist's veto letter (click here).
Gary A. Poliakoff explained the negative impact of the veto in correspondence to the Governor (click here to read that letter) highlighting how significantly condominium and community associations have been hurt by the mortgage foreclosure crisis.
Consequently, the following insurance requirements, largely resulting from 2008 legislation, are still in effect:
1.Unit Owner coverage is still mandatory.
2.Unit Owner insurance coverage must contain $2,000 "special assessment" coverage. SB 714 would have corrected the language to "loss assessment" coverage.
3.The Association is still required to be named an additional insured and loss payee on insurance policies issued to Unit Owners.
4.Association boards must set the master policy insurance deductible at an open board meeting - the notice of the meeting must contain the amount of the proposed deductible, available funds and cite the assessment authority as well as estimate potential assessments against each unit for possible casualty costs that are not funded by insurance coverage.
5.Unit Owners are still required to insure "improvements and additions" that benefit fewer than all the owners. This is problematic from a number of perspectives, especially in light of the fact that the term "improvements and additions" is not defined. This provision in Section 718.111(11)(g)(1), Florida Statutes may be interpreted to mean that Unit Owners bear responsibility for portions of the property traditionally insured by the master policy, such as balconies, vehicle enclosures such as carports (if the coverage is available), storage spaces and the like.
A press conference is being held today, June 4, at the South County Civic Center located at 16700 Carter Road, Delray Beach, Florida at 1 P.M. Senator Deutch and Representative Kelly Skidmore will address legislative issues, foreclosures and ways to confront association financial losses. CALL urged Senator Deutch to ask the Speaker of the House and the President of the Senate to call a special session to address these important problems.
Community leaders are encouraged to contact their elected representatives and express their concerns.
Condominium Unit Owners Required to Maintain Insurance Coverage.
Governor Charlie Crist vetoed SB 714. Too bad - SB 714 would have relieved Condominium Unit Owners from maintaining individual property insurance and likewise relieved Associations from the burden of requesting insurance certificates.
Governor Crist expressed his concerns regarding the fire sprinkler retrofitting extension in his veto letter, citing safety risks. This means that condominium associations throughout Florida will have to retrofit their buildings, or partially retrofit (if authorized by membership vote as set forth in Section 718.112(2)(l), Florida Statutes) by December 31, 2014, something that struggling condominium associations cannot afford at this time.
Read Governor Crist's veto letter (click here).
Gary A. Poliakoff explained the negative impact of the veto in correspondence to the Governor (click here to read that letter) highlighting how significantly condominium and community associations have been hurt by the mortgage foreclosure crisis.
Consequently, the following insurance requirements, largely resulting from 2008 legislation, are still in effect:
1.Unit Owner coverage is still mandatory.
2.Unit Owner insurance coverage must contain $2,000 "special assessment" coverage. SB 714 would have corrected the language to "loss assessment" coverage.
3.The Association is still required to be named an additional insured and loss payee on insurance policies issued to Unit Owners.
4.Association boards must set the master policy insurance deductible at an open board meeting - the notice of the meeting must contain the amount of the proposed deductible, available funds and cite the assessment authority as well as estimate potential assessments against each unit for possible casualty costs that are not funded by insurance coverage.
5.Unit Owners are still required to insure "improvements and additions" that benefit fewer than all the owners. This is problematic from a number of perspectives, especially in light of the fact that the term "improvements and additions" is not defined. This provision in Section 718.111(11)(g)(1), Florida Statutes may be interpreted to mean that Unit Owners bear responsibility for portions of the property traditionally insured by the master policy, such as balconies, vehicle enclosures such as carports (if the coverage is available), storage spaces and the like.
A press conference is being held today, June 4, at the South County Civic Center located at 16700 Carter Road, Delray Beach, Florida at 1 P.M. Senator Deutch and Representative Kelly Skidmore will address legislative issues, foreclosures and ways to confront association financial losses. CALL urged Senator Deutch to ask the Speaker of the House and the President of the Senate to call a special session to address these important problems.
Community leaders are encouraged to contact their elected representatives and express their concerns.
Wednesday, June 10, 2009
Home insurers deny Chinese drywall claims
Like others with Chinese-made drywall in their homes, Joe and Brittany Baker sought relief from their homeowners insurance company.
And, like others, the Bakers were turned down. State Farm denied the Palmetto couple’s claim, saying their policy doesn’t cover damages allegedly caused by Chinese drywall in their home.
That’s because homeowner policies in Florida typically contain provisions that exclude coverage for damages caused by pollution and construction defects, said Ron Kammer, a Miami attorney who often represents insurers.
Darren Inverso, a Sarasota attorney who has filed a class-action lawsuit on behalf of a Lakewood Ranch homeowner, agreed. “They’re not insuring that you received a good house,” he said.
That has become a common response from property and casualty insurers faced with drywall-related claims, homeowners and attorneys involved in the unfolding issue said Tuesday.
“It’s across the board,” Inverso said.
It’s unknown just how many such claims have been filed, and denied, since the drywall issue surfaced last year. But more than 430 Florida homeowners, including 33 from Manatee, have complained to state health officials that the drywall emits noxious odors, corrodes air-conditioner parts and causes respiratory problems.
The issue potentially could affect more than 100,000 U.S. homes including more than 30,000 in Florida, according to some estimates.
“Our member insurers are seeing the issue in various states, states with high humidity, and it’s usually not covered,” said Julie Pulliam, spokeswoman for the American Insurance Association.
She said the industry group did not have statistics on how many drywall-related claims have been filed. The insurance industry’s response should be no surprise, said Kammer, who sat on a panel that addressed insurance issues during a recent drywall litigation conference.
“All three of us (on the panel) agreed that it was unlikely that homeowner insurers would assist owners of homes impacted by Chinese drywall,” he said.
Still, Inverso said he recommends filing homeowner claims so insurers are put on notice that the home contains Chinese-made drywall.
Kammer said homeowners might have better luck filing claims under the builder’s, drywall supplier’s or drywall manufacturer’s commercial general-liability policy. But whether that works will depend on the policy’s language, which can vary greatly, he said.
The Bakers, who live in the Carpentras of the Villages of Avignon subdivision, have not done that yet, saying they’re mulling their options. A State Farm spokeswoman could not be reached Tuesday for comment.
Copyright © 2009 The Bradenton Herald, Fla., Duane Marsteller. Distributed by McClatchy-Tribune Information Services.
And, like others, the Bakers were turned down. State Farm denied the Palmetto couple’s claim, saying their policy doesn’t cover damages allegedly caused by Chinese drywall in their home.
That’s because homeowner policies in Florida typically contain provisions that exclude coverage for damages caused by pollution and construction defects, said Ron Kammer, a Miami attorney who often represents insurers.
Darren Inverso, a Sarasota attorney who has filed a class-action lawsuit on behalf of a Lakewood Ranch homeowner, agreed. “They’re not insuring that you received a good house,” he said.
That has become a common response from property and casualty insurers faced with drywall-related claims, homeowners and attorneys involved in the unfolding issue said Tuesday.
“It’s across the board,” Inverso said.
It’s unknown just how many such claims have been filed, and denied, since the drywall issue surfaced last year. But more than 430 Florida homeowners, including 33 from Manatee, have complained to state health officials that the drywall emits noxious odors, corrodes air-conditioner parts and causes respiratory problems.
The issue potentially could affect more than 100,000 U.S. homes including more than 30,000 in Florida, according to some estimates.
“Our member insurers are seeing the issue in various states, states with high humidity, and it’s usually not covered,” said Julie Pulliam, spokeswoman for the American Insurance Association.
She said the industry group did not have statistics on how many drywall-related claims have been filed. The insurance industry’s response should be no surprise, said Kammer, who sat on a panel that addressed insurance issues during a recent drywall litigation conference.
“All three of us (on the panel) agreed that it was unlikely that homeowner insurers would assist owners of homes impacted by Chinese drywall,” he said.
Still, Inverso said he recommends filing homeowner claims so insurers are put on notice that the home contains Chinese-made drywall.
Kammer said homeowners might have better luck filing claims under the builder’s, drywall supplier’s or drywall manufacturer’s commercial general-liability policy. But whether that works will depend on the policy’s language, which can vary greatly, he said.
The Bakers, who live in the Carpentras of the Villages of Avignon subdivision, have not done that yet, saying they’re mulling their options. A State Farm spokeswoman could not be reached Tuesday for comment.
Copyright © 2009 The Bradenton Herald, Fla., Duane Marsteller. Distributed by McClatchy-Tribune Information Services.
Monday, June 8, 2009
Court says no exclusive cable rights in apartments
Cable companies cannot have exclusive rights to provide service in apartment buildings that they wire, a federal appeals court ruled Tuesday.
The decision from the Court of Appeals in Washington upholds a Federal Communications Commission ruling that banned the exclusive agreements as anticompetitive.
The deals involved a provider exchanging a valuable service like wiring a multiunit building for cable in exchange for the exclusive right to provide service to all the residents.
The commission said cable operators could no longer enter into such deals and existing ones could not be enforced.
The National Cable & Telecommunications Association and a pair of affiliated real estate groups sued, saying the FCC did not justify the change in policy, consider the retroactive effects or have the authority to regulate the deals. But the appeals court sided with the FCC and said it acted well within the bounds of the law.
A spokesman for the cable association had no immediate comment on the ruling.
Source: AP
The decision from the Court of Appeals in Washington upholds a Federal Communications Commission ruling that banned the exclusive agreements as anticompetitive.
The deals involved a provider exchanging a valuable service like wiring a multiunit building for cable in exchange for the exclusive right to provide service to all the residents.
The commission said cable operators could no longer enter into such deals and existing ones could not be enforced.
The National Cable & Telecommunications Association and a pair of affiliated real estate groups sued, saying the FCC did not justify the change in policy, consider the retroactive effects or have the authority to regulate the deals. But the appeals court sided with the FCC and said it acted well within the bounds of the law.
A spokesman for the cable association had no immediate comment on the ruling.
Source: AP
Drywall problem creates cottage industry for lawyers, construction consultants
Standing in front of a roomful of attorneys, home builders, insurance company representatives and construction consultants, forensic investigator Dan Bridge joked that he keeps a shrine of a piece of drywall in his home.
“Every day I stop by the drywall and say thanks to it,” said Bridge, who works with Rimkus Consulting Group Inc. “I was on the front line of the black mold issue – I did 10,000 investigations – and now, 11 years later, here comes Chinese drywall.” Bridge was one of about 275 people from around the country who attended the first day of a Chinese Drywall Litigation Conference at the JW Marriott hotel in Orlando.
Unknown only a few months ago, the problem of defective Chinese drywall used in thousands of homes has blossomed into a cottage industry for lawyers, construction consultants and others hoping to drum up business around the tainted building material.
“Everybody and their brother are coming out of the woodwork on this issue,” Boca Raton attorney Allison Grant said of the small army of plaintiff and defense attorneys taking on drywall-related cases.
In fact, the Judicial Panel on Multidistrict Litigation recently held a hearing about whether the drywall cases should be consolidated into a huge class-action suit.
It’s known that the drywall emits gases, and that the gases appear to corrode a variety of metals, including air conditioning coils and jewelry.
During the conference, Lori Streit of Aurora, Ill.-based Unified Engineering Inc., which is conducting lab tests on the drywall for the Florida Department of Health, said that the different types of Chinese drywall show chemical differences in their composition. Early test results from various forms of Chinese-made drywall, including 5/8-inch and greenboard, register levels of the chemical strontium at 2,000 to 3,000 parts per million. That’s 10 times the level found in many samples of U.S.-made drywall.
Still, conference attendees and speakers said that not enough is known about the material and what can be done about it.
“There are still more questions than answers,” Fort Myers attorney Scott Weinstein said during his speech.
Souerce: AP
“Every day I stop by the drywall and say thanks to it,” said Bridge, who works with Rimkus Consulting Group Inc. “I was on the front line of the black mold issue – I did 10,000 investigations – and now, 11 years later, here comes Chinese drywall.” Bridge was one of about 275 people from around the country who attended the first day of a Chinese Drywall Litigation Conference at the JW Marriott hotel in Orlando.
Unknown only a few months ago, the problem of defective Chinese drywall used in thousands of homes has blossomed into a cottage industry for lawyers, construction consultants and others hoping to drum up business around the tainted building material.
“Everybody and their brother are coming out of the woodwork on this issue,” Boca Raton attorney Allison Grant said of the small army of plaintiff and defense attorneys taking on drywall-related cases.
In fact, the Judicial Panel on Multidistrict Litigation recently held a hearing about whether the drywall cases should be consolidated into a huge class-action suit.
It’s known that the drywall emits gases, and that the gases appear to corrode a variety of metals, including air conditioning coils and jewelry.
During the conference, Lori Streit of Aurora, Ill.-based Unified Engineering Inc., which is conducting lab tests on the drywall for the Florida Department of Health, said that the different types of Chinese drywall show chemical differences in their composition. Early test results from various forms of Chinese-made drywall, including 5/8-inch and greenboard, register levels of the chemical strontium at 2,000 to 3,000 parts per million. That’s 10 times the level found in many samples of U.S.-made drywall.
Still, conference attendees and speakers said that not enough is known about the material and what can be done about it.
“There are still more questions than answers,” Fort Myers attorney Scott Weinstein said during his speech.
Souerce: AP
Subscribe to:
Posts (Atom)
