The Florida Distressed Condominium Relief Act became law on July 1, 2010. It was designed as an effort to help Florida’s condo associations recover from a decrease in property values and occupancy rates due to foreclosures and budget shortfalls. The Senate Bill associated with this act is SB 1196.
What are some of the new condo/HOA (homeowner association) regulations associated with this law? An association can either delay or discard some previously required upgrades to a building’s fire alarms, sprinkler systems, and elevators. Associations can collect rent from tenants in delinquent units and homes without having to go to court. Banks will have to pay up to one year’s worth of back dues when they foreclose. Associations can also suspend the use of recreational facilities if assessments are more than 90 days past due. Condo associations have record inspection obligations under this law as well.
With this new law, condo associations will become more financially stable. Fannie Mae will to able to approve more projects for financing and buyers can purchase with less risk. More properties will meet the FHA guidelines. This will help facilitate sales of a large inventory of distressed condos.
You can find a Senate Bill 1196 Guidebook for Community Associations by going to the following link: http://canfl.com/pdfs/LegUpdate2010F.pdf, which was created by Katzman, Garfinkel & Berger Law Firm.
Tammy Hayes, Realtor, Sandals Realty, Punta Gorda, FL – email@example.com