Property owners across the country fearing they may be forced to buy expensive flood insurance under a push to draw up new floodplain maps will catch a break by being offered the coverage at sharply lower rates for two years, a key lawmaker said.
Sen. Dick Durbin of Illinois said the Federal Emergency Management Agency's decision to offer the cheaper rates on properties affected by changes to flood hazard maps dramatically softens the financial blow for southwestern Illinois and other affected regions – at least for now.
FEMA has agreed to offer up to two years' eligibility for the National Flood Insurance Program's Preferred Risk Policy – the program's lowest-cost option – to small businesses and homeowners on any land the new maps show are in newly designated special flood hazard areas. The new rates are available after the redrawn maps take effect, in many cases this fall or early next year.
The savings could be big: An affected homeowner's yearly premium under the preferred risk program might be $300 – four to five times less than what it might cost otherwise, Les Sterman, an administrator of a flood-protection district involving three St. Louis-area Illinois counties, said Thursday.
The lower premiums "are quite reasonable, and everyone in the area should buy insurance at those rates. It's considerable relief to a point, obviously," Sterman said, cautioning that bigger companies still would have to shop for the coverage on the open market – a price tag he estimates in his region alone to be $30 million a year.
Durbin, in a statement Wednesday, cast FEMA's decision as "only a temporary solution" ensuring that residents "will at least be financially protected at an affordable price in the event of a flood."
Messages left Thursday with FEMA were not immediately returned.
FEMA's power to require the insurance comes from the 42-year-old National Flood Insurance Program that Congress enacted chiefly out of the public's inability to get privately backed insurance for flood losses.
Source: Copyright © 2010 The Associated Press, Jim Suhr, Associated Press writer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Monday, May 24, 2010
Thursday, May 20, 2010
House bill aims to postpone FEMA flood map revisions
The U.S. House Financial Services Committee passed House Resolution 5114, the Flood Insurance Reform Priorities Act of 2010, in April. The bill, if it becomes law, would postpone the finalization of flood maps revisions.
The Federal Emergency Management Agency (FEMA) has been analyzing its flood maps, adding and subtracting properties. Homeowners in a flood zone generally must obtain flood insurance if they have a mortgage.
However, the bill, if passed, could postpone finalization up to five years and eliminate some homeowners' requirement that they purchase flood insurance.
The FEMA remapping process is expected to digitize more than 20,000 flood maps across the nation and more accurately reflect areas vulnerable to a 100-year flood. In areas where levees are being repaired or updated, FEMA's ability to update flood maps could be hindered for up to seven years under the proposed pieces of legislation.
Once repairs are made and levees are certified by FEMA, insurance rates for properties in those locations could drop significantly, according to experts. Communities across the United States, including Ventura County, Calif., have submitted map amendments to carve out certain properties from the FEMA map revisions.
HR 5114 is expected to move to the full House for debate.
Meanwhile, House Resolution 3415, introduced by U.S. Rep. Maxine Waters (D-Calif.), would extend remapping efforts to include not only Army Corps of Engineers levees, but also private levees.
Source: Ventura County Star (CA) (05/19/10) Bakalis, Anna
Source: INFORMATION, INC. Bethesda, MD
The Federal Emergency Management Agency (FEMA) has been analyzing its flood maps, adding and subtracting properties. Homeowners in a flood zone generally must obtain flood insurance if they have a mortgage.
However, the bill, if passed, could postpone finalization up to five years and eliminate some homeowners' requirement that they purchase flood insurance.
The FEMA remapping process is expected to digitize more than 20,000 flood maps across the nation and more accurately reflect areas vulnerable to a 100-year flood. In areas where levees are being repaired or updated, FEMA's ability to update flood maps could be hindered for up to seven years under the proposed pieces of legislation.
Once repairs are made and levees are certified by FEMA, insurance rates for properties in those locations could drop significantly, according to experts. Communities across the United States, including Ventura County, Calif., have submitted map amendments to carve out certain properties from the FEMA map revisions.
HR 5114 is expected to move to the full House for debate.
Meanwhile, House Resolution 3415, introduced by U.S. Rep. Maxine Waters (D-Calif.), would extend remapping efforts to include not only Army Corps of Engineers levees, but also private levees.
Source: Ventura County Star (CA) (05/19/10) Bakalis, Anna
Source: INFORMATION, INC. Bethesda, MD
Monday, May 17, 2010
Insurers go into storm season with fingers crossed
Florida's property insurance companies haven't suffered hurricane losses for nearly five years, but many claim to be losing money even while collecting hefty premiums. It's a complex paradigm for almost anyone to follow.
"We keep going round and round and we always end up back at square one," Agriculture Commissioner Charles Bronson said with a hint of frustration at a recent Cabinet meeting.
Confusing as the formula is, Florida regulators think the Legislature came up with part of the elusive answer in the recently completed session and Insurance Commissioner Kevin McCarty is pushing Gov. Charlie Crist to sign their bill (SB 2044).
The legislation, its sponsor says, reduces regulatory pressure on insurance companies and creates more competition in the marketplace – a factor they hope will stabilize rates for consumers.
"It's another step forward in reforming property insurance in the state," said Sen. Garrett Richter, a Republican banker from Naples who guided the measure through the recently completed legislative session. "We'll probably need to do it a couple more times until we get this completely turned in the right direction."
A longtime critic of the property insurance industry, Crist remains uncertain whether he'll sign the legislation. He could, however, allow it to become law without his signature. Some feel Crist has complicated the problem, railing against insurers as part of his populist approach to winning votes.
The industry claims to have lost $700 million in the high-risk Florida market last year – even though no hurricanes hit the state. They say revenues have been cut roughly 30 percent in the last three years as a result of a rate rollback ordered in a January 2007 special session simultaneously with a doubling of discounts homeowners get for hurricane mitigation measures like shutters and strapped roofs.
Profits have also been dissipated by a variety of other factors, including the recession.
Bronson also worries about the state-backed Citizens Property Insurance Corp.'s ability to pay its claims if a major storm struck, which would increase costs for all other Florida home or car policy owners as they would get with a surcharge. Citizens is presently the largest property insurer in Florida with over 1 million policyholders.
But trying to get a real fix to Florida's property insurance woes has existed at least two decades. A resolution to property insurance has eluded lawmakers since Hurricane Andrew in 1992 sent shock waves through an industry. It was rocked again a decade later by eight serious storms in 2004 and 2005 that resulted in many major private carriers either leaving the Sunshine State or reducing the number of policies they carry.
"Florida remains a very, very tough place to do business," said Locke Burt, whose Ormond Beach-based Security First Insurance is among one of the more successful of the three dozen startups in Florida in recent years. "The homeowners market is in very serious shape."
If Richter's bill does become law, it would reduce insurer expenses by restricting activities of public adjusters, who were blamed for thousands of reopened cases after Hurricane Wilma in 2005 that cost insurers millions of dollars to resolve questionable claims.
Now adjusters will have just three years to complete a case instead of five and the bill restricts how they will be able to advertise.
Sam Miller, vice president of the Florida Insurance Council, estimated that the Hurricane Catastrophe Fund, and Floridians who are paying their assessments, would have saved roughly $1 billion if a three-year statute of limitations had applied to the 2004 and 2005 storms.
The catastrophe fund, a state-backed reinsurer supported by a 1 percent assessment on nearly all insurance policies sold in Florida, sold nearly $700 million in revenue bonds this month to help pay for late claims from the 2005 storm season.
Wilma is now the second-most expensive hurricane in Florida history in insured losses behind only Andrew, and it's larger than Hurricane Charlie, a 2004 storm that devastated southwest Florida.
Insurers are now scrambling to buy reinsurance before the 2010 hurricane season begins June 1. Reinsurance in effect increases an insurer's capital. Reinsurers, mostly offshore companies with a large presence in Bermuda, don't pay policyholder claims, but reimburse companies for the claims they pay out.
"That's the real challenge going into hurricane season," said McCarty, who has recently begun to crack down on startup companies who have been pouring much of their profit back into their parent operations.
Reinsurance costs account for roughly half of an insurer's overhead.
Non-catastrophic losses, Miller noted, include questionable sinkhole claims in the Tampa Bay area on top of an increased number of fraudulent claims that often accompany difficult economic times
The new legislation also boosts the amount of capital required for a startup from $5 million to $15 million.
Regardless of the solvency requirements, Mother Nature owns the answer. A big enough storm – or a series of smaller hurricanes in a short period — would wipe out many insurance companies anyway as Florida's worst-case $2.1 trillion exposure dramatically exceeds any available coverage.
One part of the formula never changes.
"It's all about risk," Bronson said.
Source: The Associated Press, Brent Kallestad, Associated Press writer.
"We keep going round and round and we always end up back at square one," Agriculture Commissioner Charles Bronson said with a hint of frustration at a recent Cabinet meeting.
Confusing as the formula is, Florida regulators think the Legislature came up with part of the elusive answer in the recently completed session and Insurance Commissioner Kevin McCarty is pushing Gov. Charlie Crist to sign their bill (SB 2044).
The legislation, its sponsor says, reduces regulatory pressure on insurance companies and creates more competition in the marketplace – a factor they hope will stabilize rates for consumers.
"It's another step forward in reforming property insurance in the state," said Sen. Garrett Richter, a Republican banker from Naples who guided the measure through the recently completed legislative session. "We'll probably need to do it a couple more times until we get this completely turned in the right direction."
A longtime critic of the property insurance industry, Crist remains uncertain whether he'll sign the legislation. He could, however, allow it to become law without his signature. Some feel Crist has complicated the problem, railing against insurers as part of his populist approach to winning votes.
The industry claims to have lost $700 million in the high-risk Florida market last year – even though no hurricanes hit the state. They say revenues have been cut roughly 30 percent in the last three years as a result of a rate rollback ordered in a January 2007 special session simultaneously with a doubling of discounts homeowners get for hurricane mitigation measures like shutters and strapped roofs.
Profits have also been dissipated by a variety of other factors, including the recession.
Bronson also worries about the state-backed Citizens Property Insurance Corp.'s ability to pay its claims if a major storm struck, which would increase costs for all other Florida home or car policy owners as they would get with a surcharge. Citizens is presently the largest property insurer in Florida with over 1 million policyholders.
But trying to get a real fix to Florida's property insurance woes has existed at least two decades. A resolution to property insurance has eluded lawmakers since Hurricane Andrew in 1992 sent shock waves through an industry. It was rocked again a decade later by eight serious storms in 2004 and 2005 that resulted in many major private carriers either leaving the Sunshine State or reducing the number of policies they carry.
"Florida remains a very, very tough place to do business," said Locke Burt, whose Ormond Beach-based Security First Insurance is among one of the more successful of the three dozen startups in Florida in recent years. "The homeowners market is in very serious shape."
If Richter's bill does become law, it would reduce insurer expenses by restricting activities of public adjusters, who were blamed for thousands of reopened cases after Hurricane Wilma in 2005 that cost insurers millions of dollars to resolve questionable claims.
Now adjusters will have just three years to complete a case instead of five and the bill restricts how they will be able to advertise.
Sam Miller, vice president of the Florida Insurance Council, estimated that the Hurricane Catastrophe Fund, and Floridians who are paying their assessments, would have saved roughly $1 billion if a three-year statute of limitations had applied to the 2004 and 2005 storms.
The catastrophe fund, a state-backed reinsurer supported by a 1 percent assessment on nearly all insurance policies sold in Florida, sold nearly $700 million in revenue bonds this month to help pay for late claims from the 2005 storm season.
Wilma is now the second-most expensive hurricane in Florida history in insured losses behind only Andrew, and it's larger than Hurricane Charlie, a 2004 storm that devastated southwest Florida.
Insurers are now scrambling to buy reinsurance before the 2010 hurricane season begins June 1. Reinsurance in effect increases an insurer's capital. Reinsurers, mostly offshore companies with a large presence in Bermuda, don't pay policyholder claims, but reimburse companies for the claims they pay out.
"That's the real challenge going into hurricane season," said McCarty, who has recently begun to crack down on startup companies who have been pouring much of their profit back into their parent operations.
Reinsurance costs account for roughly half of an insurer's overhead.
Non-catastrophic losses, Miller noted, include questionable sinkhole claims in the Tampa Bay area on top of an increased number of fraudulent claims that often accompany difficult economic times
The new legislation also boosts the amount of capital required for a startup from $5 million to $15 million.
Regardless of the solvency requirements, Mother Nature owns the answer. A big enough storm – or a series of smaller hurricanes in a short period — would wipe out many insurance companies anyway as Florida's worst-case $2.1 trillion exposure dramatically exceeds any available coverage.
One part of the formula never changes.
"It's all about risk," Bronson said.
Source: The Associated Press, Brent Kallestad, Associated Press writer.
Thursday, May 13, 2010
Condo Master Insurance Policy Is Not Optional
Section 718.111(11), Florida Statutes requires all unit-owner controlled condominium associations to use 'best efforts' to obtain and maintain adequate insurance.
There have been many debates over the years regarding insurance coverage for condominium associations and the individual unit owners. Some attorneys and industry representatives take the position that owner insurance (insurance for the contents of the unit and the portions of the unit not insured by the master policy) has been required by law for years, others contend that the law does not require individual coverage at all. Debates concentrating on the proper scope and amount of coverage for the association pursuant to the master policy are likely to continue, regardless of the pending changes to the Condominium Act.
The obligation to obtain master coverage (a policy issued to the association) for a multi-family building is not subject to debate. Even though money is tight, the economy is in trouble and many owners are faced with hard times, there are certain obligations that cannot be ignored. The tragedy faced by the unfortunate owners of the condominium building that burnt down in Broward County, Florida last week is made exponentially worse by the fact there is no insurance coverage.
Mortgage payments and property taxes do not vanish into thin air when the building burns down. Will these owners have the funds to re-build? Do they have any recourse? Probably not, says Gary Poliakoff. What about the impact on the neighboring condominiums? Living next to a partially demolished building is not likely to be pleasant or have a positive impact on property values.
Condominium directors, officers and unit owners - take advantage of the educational opportunities offered by various organizations to learn about the realities of condominium living and ownership. Educational sessions offered by CAI are generally free to community leaders. While you may not have the ability to prevent a fire, you can prevent this situation from happening to you by understanding the responsibilities of ownership and association operations.
Source: http://www.floridacondohoalawblog.com/admin/trackback/202042
There have been many debates over the years regarding insurance coverage for condominium associations and the individual unit owners. Some attorneys and industry representatives take the position that owner insurance (insurance for the contents of the unit and the portions of the unit not insured by the master policy) has been required by law for years, others contend that the law does not require individual coverage at all. Debates concentrating on the proper scope and amount of coverage for the association pursuant to the master policy are likely to continue, regardless of the pending changes to the Condominium Act.
The obligation to obtain master coverage (a policy issued to the association) for a multi-family building is not subject to debate. Even though money is tight, the economy is in trouble and many owners are faced with hard times, there are certain obligations that cannot be ignored. The tragedy faced by the unfortunate owners of the condominium building that burnt down in Broward County, Florida last week is made exponentially worse by the fact there is no insurance coverage.
Mortgage payments and property taxes do not vanish into thin air when the building burns down. Will these owners have the funds to re-build? Do they have any recourse? Probably not, says Gary Poliakoff. What about the impact on the neighboring condominiums? Living next to a partially demolished building is not likely to be pleasant or have a positive impact on property values.
Condominium directors, officers and unit owners - take advantage of the educational opportunities offered by various organizations to learn about the realities of condominium living and ownership. Educational sessions offered by CAI are generally free to community leaders. While you may not have the ability to prevent a fire, you can prevent this situation from happening to you by understanding the responsibilities of ownership and association operations.
Source: http://www.floridacondohoalawblog.com/admin/trackback/202042
Wednesday, May 12, 2010
McCarty continues push for insurance bill
Placed in a relatively unusual position, Florida's top insurance regulator urged his boss, a possibly reluctant governor, to sign recently enacted property insurance legislation that has the department's blessing.
Speaking before the Cabinet on Tuesday, Florida Insurance Commissioner Kevin McCarty urged Gov. Charlie Crist to sign SB 2044, which among other things allows companies to raise rates to make up for inflation and reinsurance increases without having to go through lengthy filing procedures.
McCarty told the panel that the bill provides a number of provisions requested by the industry and the agency to temper some of the cost drivers blamed for raising rates.
"Some have characterized this as deregulation bill," McCarty said. "Nothing could be further from the truth. There are provisions in the law that allow for an accelerated review process, but all rates would be approved by the agency."
McCarty said SB 2044 also contains a number of provisions including allowing insurers to withhold portions of claims until repairs are completed and placing more requirements on public adjusters, who have been blamed for unfairly reopening claims that have already been paid. The measure also re-establishes a law that makes insurance companies file first and raise rates later. If Crist were to veto it, the so-called "use and file" law that would allow companies to raise rates first and then seek approval, would return.
"Without the bill, the use and file provisions would have come back into existence, which would make it very difficult to rein in future rate increases," McCarty said.
Crist has said he has some concerns about the proposal, and has for several years been generally opposed to any legislation that would allow for higher insurance rates, although he did sign off last year on allowing Citizens Property Insurance to begin slowly increasing premiums.
The insurance commissioner has come under fire from critics in the Legislature who say he has failed to bolster competition in the property insurance market. Instead, they say McCarty has allowed financially shaky companies to continue to operate, a charge that the commissioner has vehemently denied.
Two companies, American Keystone and Coral Insurance Co. failed last year and were ordered to liquidate. Others have been required to recapitalize or take other action under Office of Insurance Regulation supervision.
McCarty said Tuesday the agency has worked with financially distressed companies that can nonetheless pay claims if they are allowed to make changes to their business plans.
"When a company is found to be impaired, it does not mean the company will fail tomorrow or will not have money to pay claims," McCarty said.
Chief Financial Officer Alex Sink pressed McCarty, asking why so many companies have reported losses when there have been no hurricanes in the past few years.
"The bottom line for me is that the Florida consumer is assured that when a storm occurs, they are going to get their claims paid," Sink said. "And number two that we, the rest of the people of the state, (don't) have to cover the losses and financial instability of companies that potentially haven't been adequately supervised by your office."
Source: News Service of Florida, Michael Peltier
Speaking before the Cabinet on Tuesday, Florida Insurance Commissioner Kevin McCarty urged Gov. Charlie Crist to sign SB 2044, which among other things allows companies to raise rates to make up for inflation and reinsurance increases without having to go through lengthy filing procedures.
McCarty told the panel that the bill provides a number of provisions requested by the industry and the agency to temper some of the cost drivers blamed for raising rates.
"Some have characterized this as deregulation bill," McCarty said. "Nothing could be further from the truth. There are provisions in the law that allow for an accelerated review process, but all rates would be approved by the agency."
McCarty said SB 2044 also contains a number of provisions including allowing insurers to withhold portions of claims until repairs are completed and placing more requirements on public adjusters, who have been blamed for unfairly reopening claims that have already been paid. The measure also re-establishes a law that makes insurance companies file first and raise rates later. If Crist were to veto it, the so-called "use and file" law that would allow companies to raise rates first and then seek approval, would return.
"Without the bill, the use and file provisions would have come back into existence, which would make it very difficult to rein in future rate increases," McCarty said.
Crist has said he has some concerns about the proposal, and has for several years been generally opposed to any legislation that would allow for higher insurance rates, although he did sign off last year on allowing Citizens Property Insurance to begin slowly increasing premiums.
The insurance commissioner has come under fire from critics in the Legislature who say he has failed to bolster competition in the property insurance market. Instead, they say McCarty has allowed financially shaky companies to continue to operate, a charge that the commissioner has vehemently denied.
Two companies, American Keystone and Coral Insurance Co. failed last year and were ordered to liquidate. Others have been required to recapitalize or take other action under Office of Insurance Regulation supervision.
McCarty said Tuesday the agency has worked with financially distressed companies that can nonetheless pay claims if they are allowed to make changes to their business plans.
"When a company is found to be impaired, it does not mean the company will fail tomorrow or will not have money to pay claims," McCarty said.
Chief Financial Officer Alex Sink pressed McCarty, asking why so many companies have reported losses when there have been no hurricanes in the past few years.
"The bottom line for me is that the Florida consumer is assured that when a storm occurs, they are going to get their claims paid," Sink said. "And number two that we, the rest of the people of the state, (don't) have to cover the losses and financial instability of companies that potentially haven't been adequately supervised by your office."
Source: News Service of Florida, Michael Peltier
Tuesday, May 11, 2010
U.S. House proposes NFIP extension through September
U.S. House Financial Services Committee Chair Barney Frank (D-Mass.) recently introduced HR 5255, which would extend the National Flood Insurance Program (NFIP) from May 31 through Sept. 30.
Frank says that the recent lapses in the program have made it difficult to write new and renew flood insurance coverage, which the Federal Emergency Management Agency and the National Realtors Association say has "adversely impacted or delayed up to 1,350 real estate closings per day." U.S. Reps. Paul Kanjorski (D-Pa.), Doris Matsui (D-Calif.), and Maxine Waters (D-Calif.) co-sponsored the legislation.
The House committee also recently passed Waters' Flood Insurance Reform Priorities Act of 2010 (HR 5114) to extend the program through Sept. 30, 2015. In the U.S. Senate, however, HR 4213, which would extend NFIP through Dec. 30, has stalled.
Source: Insurance & Financial Advisor (05/10/10) Martin, Keith L.
Source: INFORMATION, INC. Bethesda, MD
Frank says that the recent lapses in the program have made it difficult to write new and renew flood insurance coverage, which the Federal Emergency Management Agency and the National Realtors Association say has "adversely impacted or delayed up to 1,350 real estate closings per day." U.S. Reps. Paul Kanjorski (D-Pa.), Doris Matsui (D-Calif.), and Maxine Waters (D-Calif.) co-sponsored the legislation.
The House committee also recently passed Waters' Flood Insurance Reform Priorities Act of 2010 (HR 5114) to extend the program through Sept. 30, 2015. In the U.S. Senate, however, HR 4213, which would extend NFIP through Dec. 30, has stalled.
Source: Insurance & Financial Advisor (05/10/10) Martin, Keith L.
Source: INFORMATION, INC. Bethesda, MD
Florida’s existing home, condo sales up in 1Q 2010
Salesof existing single-family homes in Florida rose 24 percent in first quarter 2010 compared to the same period a year earlier, according to the latest housing statistics from Florida Realtors®. A total of 38,846 existing homes sold statewide in 1Q 2010; during the same period the year before, a total of 31,410 existing homes sold. It marks the seventh consecutive quarter that Florida has seen higher existing year-to-year home sales, according to the state association.
Statewide sales of existing condominiums in the first quarter rose 67 percent compared to the same time the previous year. This marks the sixth consecutive quarter for increased statewide sales in both the existing home and condo markets compared to year-ago levels.
"The first quarter data release from the Florida Realtors paints a picture of a housing market continuing down the long road to recovery," said Dr. Sean Snaith, director for the University of Central Florida's Institute for Economic Competitiveness. "Transactions in the single family market have extended quarterly year-over-year gains for nearly two years, and condo sales have also risen sharply. Median prices in most areas of the state continue to fall; however, the rate at which they are falling has diminished significantly and this is indicative of a bottom approaching.
"How long prices stay at the bottom and when price appreciation will reappear will depend in a large part on the improving fundamentals in the economy and credit markets."
The University of Florida's Bergstrom Center for Real Estate Studies' latest quarterly survey of real estate trends also notes positive signs of recovery in the state's real estate industry. The survey polls market research economists, industry executives, real estate scholars and other experts.
"Results indicate that the real estate market in Florida has hit bottom and is in the process of stabilizing across most property types," said Timothy Becker, the center's director. Private capital – both foreign and domestic – continues to enter the state in search of quality investment deals, he added.
Seventeen of Florida's metropolitan statistical areas (MSAs) reported increased sales of existing homes in 1Q 2010 compared to the same three-month-period a year earlier, while all of the MSAs showed gains in condo sales.
The statewide existing-home median sales price was $133,800 in 1Q 2010; a year earlier, it was $140,900 for a decrease of 5 percent. According to industry analysts with the National Association of Realtors® (NAR), sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is a typical market price where half the homes sold for more, half for less.
Inthe year-to-year quarterly comparison for condo sales, 16,897 units sold statewide for the quarter compared to 10,131 in 1Q 2009 for a 67 percent increase. The statewide existing-condo median sales price was $95,800 for the three-month period; in 1Q 2009, it was $110,000 for a decrease of 13 percent.
Low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 5 percent in 1Q 2010; one year earlier, it averaged 5.06 percent.
Source: © 2010 Florida Realtors®
Statewide sales of existing condominiums in the first quarter rose 67 percent compared to the same time the previous year. This marks the sixth consecutive quarter for increased statewide sales in both the existing home and condo markets compared to year-ago levels.
"The first quarter data release from the Florida Realtors paints a picture of a housing market continuing down the long road to recovery," said Dr. Sean Snaith, director for the University of Central Florida's Institute for Economic Competitiveness. "Transactions in the single family market have extended quarterly year-over-year gains for nearly two years, and condo sales have also risen sharply. Median prices in most areas of the state continue to fall; however, the rate at which they are falling has diminished significantly and this is indicative of a bottom approaching.
"How long prices stay at the bottom and when price appreciation will reappear will depend in a large part on the improving fundamentals in the economy and credit markets."
The University of Florida's Bergstrom Center for Real Estate Studies' latest quarterly survey of real estate trends also notes positive signs of recovery in the state's real estate industry. The survey polls market research economists, industry executives, real estate scholars and other experts.
"Results indicate that the real estate market in Florida has hit bottom and is in the process of stabilizing across most property types," said Timothy Becker, the center's director. Private capital – both foreign and domestic – continues to enter the state in search of quality investment deals, he added.
Seventeen of Florida's metropolitan statistical areas (MSAs) reported increased sales of existing homes in 1Q 2010 compared to the same three-month-period a year earlier, while all of the MSAs showed gains in condo sales.
The statewide existing-home median sales price was $133,800 in 1Q 2010; a year earlier, it was $140,900 for a decrease of 5 percent. According to industry analysts with the National Association of Realtors® (NAR), sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is a typical market price where half the homes sold for more, half for less.
Inthe year-to-year quarterly comparison for condo sales, 16,897 units sold statewide for the quarter compared to 10,131 in 1Q 2009 for a 67 percent increase. The statewide existing-condo median sales price was $95,800 for the three-month period; in 1Q 2009, it was $110,000 for a decrease of 13 percent.
Low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 5 percent in 1Q 2010; one year earlier, it averaged 5.06 percent.
Source: © 2010 Florida Realtors®
Bills of Interest that Passed the Legislature Let the Governor know if he should sign or veto these:
SB 1196 Relating to Community Associations - PASSED
SB 1196 by Fasano and Ring and HB 561 by Bogdanoff, Hudson and Sachs, were the two major condominium bills that moved through the process during the 2010 Session. Originally, Senator Fasano, Senator Ring, Representative Bogdanoff and Representative Sachs all had separate bills addressing condominium issues, but early in Session the Senate bills were combined, as were the House bills, and all of the sponsors focused on passing one comprehensive condominium reform bill. On April 28, 2010, SB 1196 passed the House with a vote of 107-4 after being passed unanimously by the Senate. The bill is currently being processed by the Legislature and should be sent to the Governor shortly for final approval.
As you will remember, after the Legislature passed a condominium reform bill in 2009 (SB 714) Governor Crist chose to veto the bill, citing public safety concerns with the bill’s provision that would have allowed condominiums to opt out of retrofitting common areas with sprinkler systems. This year’s condominium reform package has a similar provision. CAN and its Advisory Council Members have diligently worked to meet with and lobby the Executive Office of the Governor, the Office of the Chief Financial Officer (the CFO serves as the state’s Fire Marshall) and various City and County Commissions tp support this vital bill. In our meetings with the Governor and CFO’s staffs, they expressed some lingering public safety concerns regarding the sprinkler retrofit language. However, the bill sponsors are extremely confident that Governor Crist will sign SB 1196 into law. Since SB 1196 passed the Legislature, Governor Crist has left the Republican Party to run as an Independent for the United States Senate. It is not clear how this move could affect the use of his veto pen. We highly encourage our CAN members to continue to use our unique grassroots advocacy system to email and call the Governor’s Office and encourage him to sign SB 1196 into law. Remember, the Fire Marshals and Sprinkler Companies are certainly using this interim period before the bill reaches the Governor's desk to lobby him for a veto.
SB 1196 contains numerous changes to existing condominium law. Among some of the more significant changes that will save condominium associations a great deal of money during the current economic downturn are the following:
• Delaying the date by which a condominium must retrofit its elevators for Phase Two Firefighter Services until July 1, 2013;
• Providing a condominium association the ability to opt out of retrofitting common areas with sprinklers with a majority vote of the voting interests of the condominium;
• Allowing condominiums to collect rent from tenants in delinquent units;
• Clarifying that the candidate certification form must be returned after the election is held not before;
• Removing the ability of a condominium board to buy or "force place" missing owner H0-6 insurance policies and removes the requirement that the association be added as an additional insured and loss payee on those individual owner policies;
• Providing certain protections for "bulk buyers' who purchase more than 7 units in failed or floundering condominium projects
• Protecting certain sensitive information such as email addresses and personnel information from unit owner inspection requests.
Perhaps the most significant benefit conferred by SB 1196 is that it DOUBLES the amount of money banks owe to a condominium association in the case of a foreclosure from 6 months of a unit’s unpaid common expenses and regular periodic assessments or 1% of the original mortgage debt, whichever is lower, to 12 months of a unit’s unpaid common expenses and regular periodic assessments or 1% of the original mortgage debt, whichever is lower. Some CAN members have raised the issue of whether or not the failure to increase the 1% in addition to the 6 months (we tried but the banks wouldn't budge) means a whole lot. Mathematically speaking, an association can never do worse under the new formula. Some associations will do a lot better in terms of the doubling from 6 months to 12 depending on the amount of their assessments and others won't but no association will do worse.
CAN members writing to Governor Crist to urge his passage of SB 1196 should not focus solely on the sprinkler retrofit benefits but should underscore the fact that this bill contains an enormous amount of other provisions that will benefit financially struggling associations. A veto of 1196 not only spells financial disaster to the approximately 6,000 sprinkler- impacted high-rise condominiums and cooperatives in the State but would also impact every single Florida condominium owner as a result of the wide-ranging changes discussed above.
HB 1035 Relating to Elevator Safety - PASSED
HB 1035 by Representative Frishe passed the Legislature on April 29. Of benefit to CAN is a provision in the bill that will, if enacted, provide condominium associations relief from retrofitting for Phase II Firefighter Service by giving them until July 1, 2013 to complete the retrofit. This language that passed as part of HB 1035 also passed as part of the large condominium package, SB 1196.
HB 663 Relating to Building Safety - PASSED
SB 648 by Senator Bennett passed the Legislature on the final day of Session. Of benefit to CAN is a provision in the bill that, if enacted, would allow condominiums until July 1, 2015, or until the elevator is replaced or requires major modification, to retrofit for Phase Two Firefighter Services. Provided that both SB 1196 and HB 663 are enacted into law, the longer retrofit window provided by HB 663 should be the prevailing law.
SB 846 Relating to Residential Fire Sprinkler Requirements - PASSED
SB 846 by Senator Bennett passed the full Legislature on April 29. The bill, if enacted, will prohibit the incorporation into the Florida Building Code of certain mandatory residential fire sprinkler provisions of the International Residential Code, specifically requiring new homes to be outfitted with sprinkler systems.
SB 2044 Relating to Property Insurance - PASSED
SB 2044 by Richter passed the Legislature on the final day of Session. SB 2044 relating to Property Insurance became the 2010 Session’s insurance package and was amended on second reading in the Senate to include a provision that was originally in SB 2264 and HB 1181 that will reduce the amount of time a condominium association has to file a hurricane damage claim from 5 to 3 years.
HB 1181 by Representative Long and SB 2264 by Senator Bennett were the original vehicles for the language that would decrease that amount of time a condominium association has to file a hurricane claim from 5 to 3 years. HB 1181 did not clear its final committee and died as a result. SB 2264 passed the Senate 37-1 and died in messages to the House.
While we were not able to stop the insurance package from passing the Legislature, there is still hope that the Governor will veto SB 2044 due to some of the unfriendly consumer provisions, including reducing the time one has to file a hurricane damage claim from 5 to 3 years. We highly encourage CAN members to urge a veto of SB 2044. Based on conversations that other interested parties have had with the Governor’s Office, the best message to send the Governor in order to ensure a veto would be to concentrate on the bill’s bad provision that allows insurance companies to increase their rates by up to 10% without going through the normal Office of Insurance Regulation process.
SB 1964 Relating to Design Professionals - PASSED
SB 1964 by Sen. Negron passed the Legislature. The bill reinstitutes the economic loss rule (which the Florida Supreme Court had abrogated for engineers and other professionals a while ago) and provides that you cannot sue a design professional for his or her negligence unless there is property damage or personal injury, and the property damage has to be to property other than what is the subject of the contract.
If enacted, the only other exception to suing a design professional would be if the contract requires insurance and he or she does not obtain the insurance or if the design professional limits its contractual liability to less than the insurance they actually do have. If this bill becomes law, associations must carefully word their design contracts for any renovation projects they are contemplating to best protect them in light of these changes. Associations would not be able to protect themselves for any contracts entered into prior to transition. We highly encourage CAN members to urge a veto of SB 1964 as it removes design professionals as an additional source for recovery on construction defect claims.
Bills of Interest that Died
HB 1523 and SB 2270 Relating to Homeowner Relief
These bills would have created the "Homeowner Relief & Housing Recovery Act" which would have provided a new, nonjudicial means of foreclosure. HB 1523 passed two committees before dying in its final council stop due to the Session expiring. SB 2270 was never heard in committee. It is likely that these bills will be re-filed next Session. CAN was opposed to these bills and our members are urged to become educated on the possible harmful effects of the nonjudicial foreclosure process on the association and its members in order to gear up for another fight next year when these bills are refiled.
SB 606 and HB 415 Relating to Termination of a Residential Rental Agreement
These bills would have required the landlord or mortgagor or its agent to tender to the registry of the court or to the foreclosing entity all funds held for advance rent or security deposits at the time of foreclosure and directs that such funds continue to be held for the use and benefit of the tenants of the foreclosed property. The House bill was never heard in committee and the Senate bill passed the full Senate before dying in messages to the House.
HB 115 Relating to Residential Properties
This bill would have required DBPR to enter an order permanently revoking the license of a community association manager under certain circumstances, revised various provisions relating to specified community associations, including disputes, powers, duties, officers, meetings, notices, governance, foreclosure, liens, contracts, etc., provided for publication, updating, & availability of "Florida Condominium Handbook," created the "Distressed Condominium Relief Act" to provide regulatory provisions relating to bulk assignees and bulk buyers, repealed an existing provision for dispute resolution in homeowners associations and created the "Home Court Advantage Dispute Resolution Act" to provide regulatory provisions for mediation & arbitration of disputes in homeowners associations.
The bill was only heard in its first committee of reference before failing to be placed on a subsequent agenda. This bills presumptive companion, SB 398 by Sen. Dockery, was withdrawn from consideration prior to ever being heard.
HB 125 Relating to Rental Property Foreclosure or Short-sale
This bill would have created an unnumbered section of law regarding tenants' rights in foreclosure. The bill required a lender to notify a tenant that a foreclosure case is pending. The form of notice is not specified. If the lender fails to provide this notice, the lender is liable to ther tenant for "closing costs or relocation costs and attorney's fees and related costs." It is unclear how these damages would be calculated. A tenant has 90 days after learning of the foreclosure within which to file an action for damages under this provision.
The bill required a lender to "provide the tenant or lessee with a first right of refusal to purchase the property at fair market value." It is unclear what this means. A "first right of refusal" is the right to match the price offered by a third party, which price may or may not be the fair market value of the property. For a tenant to have this option right, the tenant must show proof of the rental agreement and must have been a tenant for at least one year prior to the exercise of the right. If the tenant exercises the purchase option, the lender must credit the remaining balance in the escrow fund for closing costs. If a tenant does not exercise the option, the lender must use escrow funds to pay the tenants' relocation costs.
The bill died in the House Civil Justice and Courts Policy Committee when it was voted down by a 9 to 2 vote. The companion to this bill, SB 854 by Senator Sobel, was never heard in committee.
SB 156 and HB 335 Relating to Tax on Transient Rentals
The bills would have required that persons who engage in certain business activities related to transient rentals collect the tax. It would have also authorized the Department of Revenue to adopt rules to exclude certain charges from the definition of the terms "total rent" or "total consideration” and required certain persons to report and remit the tax on certain transient rentals. Neither the House nor Senate bill were heard in committee.
SB 164 Relating to Foreclosure of Condominium Units
The bill would have required a first mortgagee to pay a certain portion of unpaid assessments to the condominium association prior to the transfer of title under certain circumstances. The bill had no companion and was never heard in committee.
HB 327 and SB 840 Relating to Community Associations
These bills were a secondary condominium reform package that addressed the bulk buyer issue and included many things that were also part of SB 1196, such as the “Distressed Condominium Relief Act.” The Senate bill unanimously passed the Senate and died in messages to the House. The House bill cleared all of its committees but was never heard on the House floor.
HB 329 Relating to Condominium Foreclosures
This bill would have made several changes regarding condominium foreclosures, including requiring any condominium tenant to pay their landlord’s assessments via giving the condominium association all of or a portion of their rent payment if the landlord is over 30 days past due in paying assessments, denial of use of a condominium if an owner is more than 90 days past due to the condominium association, and increasing the amount of money owed to a condominium association by a bank in the case of a foreclosure. The bill was heard in the Civil Justice and Courts Policy Committee and defeated 9 to 4.
HB 337 Relating to Condominiums
This bill would have provided new requirements for notice of delinquency and prohibited a condominium association from imposing certain penalties such as denying the use of common areas for delinquency for 20 days from the time notice is made or longer if the owner took issue with one of the charges listed on the delinquency notice. The bill cleared two committee stops but ran out of time and died in its final committee. The companion to this bill, SB 968 by Justice, was only heard in one committee before Session closed.
HB 419 Relating to Community Associations
This bill by Rep. Robaina was withdrawn before it was ever considered by a committee. The bill would have made a number of changes regarding various community association issues.
SB 780 and HB 987 Relating to Foreclosure Proceedings/Payment of Fees
These bills would have required a financial institution that institutes a foreclosure proceeding against a residential property to pay all fees associated with or owed by the property which accrue from the date of the initial foreclosure action until the foreclosure is finalized. Neither of the bills were ever heard in committee.
HB 959 relating to Residential Properties
This bill was only heard in its first committee of reference before dying due to Session coming to a close. Many of this bill's provisions were also found in 1196.
SB 1270 Relating to Condominium and Multifamily Dwellings
This bill would have been a stand-alone vehicle to exempt condominiums from having to retrofit common areas with sprinklers. The bill was never heard but provisions similar to what was in the bill were included in SB 1196, which passed the Legislature.
SB 1272 Relating to Condominiums and Homeowner’s Associations
This bill would have provided that a person acquiring title to a condominium by foreclosure or recorded deed is liable for certain additional unpaid expenses and assessments and authorized a homeowners’ association to preserve or maintain the unit in a safe condition under certain circumstances. The bill was never heard in committee.
HB 1317 Relating to Community Associations
This bill contained some portions of what passed as part of the larger condominium package, SB 1196. Specifically the bill contained language that would have created the “Distressed Condominium Relief Act” addressing bulk buyer provisions as well as provisions addressing insurance requirements, fire alarm systems, elevators and emergency operation plans. The bill was never heard in committee.
SB 1196 by Fasano and Ring and HB 561 by Bogdanoff, Hudson and Sachs, were the two major condominium bills that moved through the process during the 2010 Session. Originally, Senator Fasano, Senator Ring, Representative Bogdanoff and Representative Sachs all had separate bills addressing condominium issues, but early in Session the Senate bills were combined, as were the House bills, and all of the sponsors focused on passing one comprehensive condominium reform bill. On April 28, 2010, SB 1196 passed the House with a vote of 107-4 after being passed unanimously by the Senate. The bill is currently being processed by the Legislature and should be sent to the Governor shortly for final approval.
As you will remember, after the Legislature passed a condominium reform bill in 2009 (SB 714) Governor Crist chose to veto the bill, citing public safety concerns with the bill’s provision that would have allowed condominiums to opt out of retrofitting common areas with sprinkler systems. This year’s condominium reform package has a similar provision. CAN and its Advisory Council Members have diligently worked to meet with and lobby the Executive Office of the Governor, the Office of the Chief Financial Officer (the CFO serves as the state’s Fire Marshall) and various City and County Commissions tp support this vital bill. In our meetings with the Governor and CFO’s staffs, they expressed some lingering public safety concerns regarding the sprinkler retrofit language. However, the bill sponsors are extremely confident that Governor Crist will sign SB 1196 into law. Since SB 1196 passed the Legislature, Governor Crist has left the Republican Party to run as an Independent for the United States Senate. It is not clear how this move could affect the use of his veto pen. We highly encourage our CAN members to continue to use our unique grassroots advocacy system to email and call the Governor’s Office and encourage him to sign SB 1196 into law. Remember, the Fire Marshals and Sprinkler Companies are certainly using this interim period before the bill reaches the Governor's desk to lobby him for a veto.
SB 1196 contains numerous changes to existing condominium law. Among some of the more significant changes that will save condominium associations a great deal of money during the current economic downturn are the following:
• Delaying the date by which a condominium must retrofit its elevators for Phase Two Firefighter Services until July 1, 2013;
• Providing a condominium association the ability to opt out of retrofitting common areas with sprinklers with a majority vote of the voting interests of the condominium;
• Allowing condominiums to collect rent from tenants in delinquent units;
• Clarifying that the candidate certification form must be returned after the election is held not before;
• Removing the ability of a condominium board to buy or "force place" missing owner H0-6 insurance policies and removes the requirement that the association be added as an additional insured and loss payee on those individual owner policies;
• Providing certain protections for "bulk buyers' who purchase more than 7 units in failed or floundering condominium projects
• Protecting certain sensitive information such as email addresses and personnel information from unit owner inspection requests.
Perhaps the most significant benefit conferred by SB 1196 is that it DOUBLES the amount of money banks owe to a condominium association in the case of a foreclosure from 6 months of a unit’s unpaid common expenses and regular periodic assessments or 1% of the original mortgage debt, whichever is lower, to 12 months of a unit’s unpaid common expenses and regular periodic assessments or 1% of the original mortgage debt, whichever is lower. Some CAN members have raised the issue of whether or not the failure to increase the 1% in addition to the 6 months (we tried but the banks wouldn't budge) means a whole lot. Mathematically speaking, an association can never do worse under the new formula. Some associations will do a lot better in terms of the doubling from 6 months to 12 depending on the amount of their assessments and others won't but no association will do worse.
CAN members writing to Governor Crist to urge his passage of SB 1196 should not focus solely on the sprinkler retrofit benefits but should underscore the fact that this bill contains an enormous amount of other provisions that will benefit financially struggling associations. A veto of 1196 not only spells financial disaster to the approximately 6,000 sprinkler- impacted high-rise condominiums and cooperatives in the State but would also impact every single Florida condominium owner as a result of the wide-ranging changes discussed above.
HB 1035 Relating to Elevator Safety - PASSED
HB 1035 by Representative Frishe passed the Legislature on April 29. Of benefit to CAN is a provision in the bill that will, if enacted, provide condominium associations relief from retrofitting for Phase II Firefighter Service by giving them until July 1, 2013 to complete the retrofit. This language that passed as part of HB 1035 also passed as part of the large condominium package, SB 1196.
HB 663 Relating to Building Safety - PASSED
SB 648 by Senator Bennett passed the Legislature on the final day of Session. Of benefit to CAN is a provision in the bill that, if enacted, would allow condominiums until July 1, 2015, or until the elevator is replaced or requires major modification, to retrofit for Phase Two Firefighter Services. Provided that both SB 1196 and HB 663 are enacted into law, the longer retrofit window provided by HB 663 should be the prevailing law.
SB 846 Relating to Residential Fire Sprinkler Requirements - PASSED
SB 846 by Senator Bennett passed the full Legislature on April 29. The bill, if enacted, will prohibit the incorporation into the Florida Building Code of certain mandatory residential fire sprinkler provisions of the International Residential Code, specifically requiring new homes to be outfitted with sprinkler systems.
SB 2044 Relating to Property Insurance - PASSED
SB 2044 by Richter passed the Legislature on the final day of Session. SB 2044 relating to Property Insurance became the 2010 Session’s insurance package and was amended on second reading in the Senate to include a provision that was originally in SB 2264 and HB 1181 that will reduce the amount of time a condominium association has to file a hurricane damage claim from 5 to 3 years.
HB 1181 by Representative Long and SB 2264 by Senator Bennett were the original vehicles for the language that would decrease that amount of time a condominium association has to file a hurricane claim from 5 to 3 years. HB 1181 did not clear its final committee and died as a result. SB 2264 passed the Senate 37-1 and died in messages to the House.
While we were not able to stop the insurance package from passing the Legislature, there is still hope that the Governor will veto SB 2044 due to some of the unfriendly consumer provisions, including reducing the time one has to file a hurricane damage claim from 5 to 3 years. We highly encourage CAN members to urge a veto of SB 2044. Based on conversations that other interested parties have had with the Governor’s Office, the best message to send the Governor in order to ensure a veto would be to concentrate on the bill’s bad provision that allows insurance companies to increase their rates by up to 10% without going through the normal Office of Insurance Regulation process.
SB 1964 Relating to Design Professionals - PASSED
SB 1964 by Sen. Negron passed the Legislature. The bill reinstitutes the economic loss rule (which the Florida Supreme Court had abrogated for engineers and other professionals a while ago) and provides that you cannot sue a design professional for his or her negligence unless there is property damage or personal injury, and the property damage has to be to property other than what is the subject of the contract.
If enacted, the only other exception to suing a design professional would be if the contract requires insurance and he or she does not obtain the insurance or if the design professional limits its contractual liability to less than the insurance they actually do have. If this bill becomes law, associations must carefully word their design contracts for any renovation projects they are contemplating to best protect them in light of these changes. Associations would not be able to protect themselves for any contracts entered into prior to transition. We highly encourage CAN members to urge a veto of SB 1964 as it removes design professionals as an additional source for recovery on construction defect claims.
Bills of Interest that Died
HB 1523 and SB 2270 Relating to Homeowner Relief
These bills would have created the "Homeowner Relief & Housing Recovery Act" which would have provided a new, nonjudicial means of foreclosure. HB 1523 passed two committees before dying in its final council stop due to the Session expiring. SB 2270 was never heard in committee. It is likely that these bills will be re-filed next Session. CAN was opposed to these bills and our members are urged to become educated on the possible harmful effects of the nonjudicial foreclosure process on the association and its members in order to gear up for another fight next year when these bills are refiled.
SB 606 and HB 415 Relating to Termination of a Residential Rental Agreement
These bills would have required the landlord or mortgagor or its agent to tender to the registry of the court or to the foreclosing entity all funds held for advance rent or security deposits at the time of foreclosure and directs that such funds continue to be held for the use and benefit of the tenants of the foreclosed property. The House bill was never heard in committee and the Senate bill passed the full Senate before dying in messages to the House.
HB 115 Relating to Residential Properties
This bill would have required DBPR to enter an order permanently revoking the license of a community association manager under certain circumstances, revised various provisions relating to specified community associations, including disputes, powers, duties, officers, meetings, notices, governance, foreclosure, liens, contracts, etc., provided for publication, updating, & availability of "Florida Condominium Handbook," created the "Distressed Condominium Relief Act" to provide regulatory provisions relating to bulk assignees and bulk buyers, repealed an existing provision for dispute resolution in homeowners associations and created the "Home Court Advantage Dispute Resolution Act" to provide regulatory provisions for mediation & arbitration of disputes in homeowners associations.
The bill was only heard in its first committee of reference before failing to be placed on a subsequent agenda. This bills presumptive companion, SB 398 by Sen. Dockery, was withdrawn from consideration prior to ever being heard.
HB 125 Relating to Rental Property Foreclosure or Short-sale
This bill would have created an unnumbered section of law regarding tenants' rights in foreclosure. The bill required a lender to notify a tenant that a foreclosure case is pending. The form of notice is not specified. If the lender fails to provide this notice, the lender is liable to ther tenant for "closing costs or relocation costs and attorney's fees and related costs." It is unclear how these damages would be calculated. A tenant has 90 days after learning of the foreclosure within which to file an action for damages under this provision.
The bill required a lender to "provide the tenant or lessee with a first right of refusal to purchase the property at fair market value." It is unclear what this means. A "first right of refusal" is the right to match the price offered by a third party, which price may or may not be the fair market value of the property. For a tenant to have this option right, the tenant must show proof of the rental agreement and must have been a tenant for at least one year prior to the exercise of the right. If the tenant exercises the purchase option, the lender must credit the remaining balance in the escrow fund for closing costs. If a tenant does not exercise the option, the lender must use escrow funds to pay the tenants' relocation costs.
The bill died in the House Civil Justice and Courts Policy Committee when it was voted down by a 9 to 2 vote. The companion to this bill, SB 854 by Senator Sobel, was never heard in committee.
SB 156 and HB 335 Relating to Tax on Transient Rentals
The bills would have required that persons who engage in certain business activities related to transient rentals collect the tax. It would have also authorized the Department of Revenue to adopt rules to exclude certain charges from the definition of the terms "total rent" or "total consideration” and required certain persons to report and remit the tax on certain transient rentals. Neither the House nor Senate bill were heard in committee.
SB 164 Relating to Foreclosure of Condominium Units
The bill would have required a first mortgagee to pay a certain portion of unpaid assessments to the condominium association prior to the transfer of title under certain circumstances. The bill had no companion and was never heard in committee.
HB 327 and SB 840 Relating to Community Associations
These bills were a secondary condominium reform package that addressed the bulk buyer issue and included many things that were also part of SB 1196, such as the “Distressed Condominium Relief Act.” The Senate bill unanimously passed the Senate and died in messages to the House. The House bill cleared all of its committees but was never heard on the House floor.
HB 329 Relating to Condominium Foreclosures
This bill would have made several changes regarding condominium foreclosures, including requiring any condominium tenant to pay their landlord’s assessments via giving the condominium association all of or a portion of their rent payment if the landlord is over 30 days past due in paying assessments, denial of use of a condominium if an owner is more than 90 days past due to the condominium association, and increasing the amount of money owed to a condominium association by a bank in the case of a foreclosure. The bill was heard in the Civil Justice and Courts Policy Committee and defeated 9 to 4.
HB 337 Relating to Condominiums
This bill would have provided new requirements for notice of delinquency and prohibited a condominium association from imposing certain penalties such as denying the use of common areas for delinquency for 20 days from the time notice is made or longer if the owner took issue with one of the charges listed on the delinquency notice. The bill cleared two committee stops but ran out of time and died in its final committee. The companion to this bill, SB 968 by Justice, was only heard in one committee before Session closed.
HB 419 Relating to Community Associations
This bill by Rep. Robaina was withdrawn before it was ever considered by a committee. The bill would have made a number of changes regarding various community association issues.
SB 780 and HB 987 Relating to Foreclosure Proceedings/Payment of Fees
These bills would have required a financial institution that institutes a foreclosure proceeding against a residential property to pay all fees associated with or owed by the property which accrue from the date of the initial foreclosure action until the foreclosure is finalized. Neither of the bills were ever heard in committee.
HB 959 relating to Residential Properties
This bill was only heard in its first committee of reference before dying due to Session coming to a close. Many of this bill's provisions were also found in 1196.
SB 1270 Relating to Condominium and Multifamily Dwellings
This bill would have been a stand-alone vehicle to exempt condominiums from having to retrofit common areas with sprinklers. The bill was never heard but provisions similar to what was in the bill were included in SB 1196, which passed the Legislature.
SB 1272 Relating to Condominiums and Homeowner’s Associations
This bill would have provided that a person acquiring title to a condominium by foreclosure or recorded deed is liable for certain additional unpaid expenses and assessments and authorized a homeowners’ association to preserve or maintain the unit in a safe condition under certain circumstances. The bill was never heard in committee.
HB 1317 Relating to Community Associations
This bill contained some portions of what passed as part of the larger condominium package, SB 1196. Specifically the bill contained language that would have created the “Distressed Condominium Relief Act” addressing bulk buyer provisions as well as provisions addressing insurance requirements, fire alarm systems, elevators and emergency operation plans. The bill was never heard in committee.
Friday, May 7, 2010
Chinese drywall homes for sale draw some buyers
Florida real estate agents increasingly list properties constructed with defective drywall from China and, increasingly, buyers are showing interest.
Some of the homes have been remediated to eliminate the contamination, and others are offered "as is" – but most dangle cut-rate prices attractive to prospective owner-occupants and investors alike.
Property agents say that as long as buyers understand the risks – the jury is still out on the health threats associated with tainted drywall – those with the money to fix up a dwelling stand to benefit financially in a sale. However, they also worried about the investors, some of which aim to purchase properties at bargain prices and leave the drywall in place or, at least, take the biggest shortcut to removing it. They'll then rent the homes, most likely to low-income tenants.
While most brokers require sellers to sign a disclosure document if their property has contaminated drywall, the law does not require it; and renters are unlikely to even see such a form, anyway.
Source: Tampa Tribune (05/06/10) Behnken, Shannon
Source: INFORMATION, INC. Bethesda, MD
Some of the homes have been remediated to eliminate the contamination, and others are offered "as is" – but most dangle cut-rate prices attractive to prospective owner-occupants and investors alike.
Property agents say that as long as buyers understand the risks – the jury is still out on the health threats associated with tainted drywall – those with the money to fix up a dwelling stand to benefit financially in a sale. However, they also worried about the investors, some of which aim to purchase properties at bargain prices and leave the drywall in place or, at least, take the biggest shortcut to removing it. They'll then rent the homes, most likely to low-income tenants.
While most brokers require sellers to sign a disclosure document if their property has contaminated drywall, the law does not require it; and renters are unlikely to even see such a form, anyway.
Source: Tampa Tribune (05/06/10) Behnken, Shannon
Source: INFORMATION, INC. Bethesda, MD
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