CS/HB 1465

1	A bill to be entitled
2	An act relating to condominiums and cooperatives; amending
3	s. 718.116, F.S.; prohibiting a condominium association
4	from initiating a foreclosure action for assessments owed
5	under certain circumstances; providing procedures for
6	delivery of the written notice to the unit owner;
7	providing an exception; requiring a condominium
8	association to suspend a foreclosure action or collection
9	effort and agree to allow a unit owner to pay all amounts
10	due plus interest under certain circumstances; defining
11	the term "qualifying offer"; providing procedures for
12	accepting a qualifying offer; providing an exception;
13	amending s. 719.108, F.S.; requiring a cooperative
14	association to suspend a foreclosure action or collection
15	effort and agree to allow a unit owner to pay all amounts
16	due plus interest under certain circumstances; defining
17	the term "qualifying offer"; providing procedures for
18	accepting a qualifying offer; providing an exception;
19	providing an effective date.
20
21	Be It Enacted by the Legislature of the State of Florida:
22
23	Section 1.  Subsection (6) of section 718.116, Florida
24	Statutes, is amended to read:
25	718.116  Assessments; liability; lien and priority;
26	interest; collection.--
27	(6)(a)  The association may bring an action in its name to
28	foreclose a lien for assessments in the manner a mortgage of
29	real property is foreclosed and may also bring an action to
30	recover a money judgment for the unpaid assessments without
31	waiving any claim of lien. The association is entitled to
32	recover its reasonable attorney's fees incurred in either a lien
33	foreclosure action or an action to recover a money judgment for
34	unpaid assessments.
35	(b)  A foreclosure action may not be initiated earlier than
36	30 days after the association has given the unit owner written
37	notice of the association's intent to foreclose its lien to
38	collect the unpaid assessments secured by the lien. The written
39	notice is a condition precedent to the filing of any foreclosure
40	action.
41	1.  The written notice may be given by hand delivery to the
42	unit owner or sent by electronic transmission if the unit owner
43	has agreed to receive association notice by electronic means or
44	in an electronic format. If hand delivery is not possible or the
45	owner has not consented to receive association notice by
46	electronic means or in an electronic format, written notice must
47	be sent by registered or certified mail and regular mail to the
48	unit owner at the last address given to the association by the
49	unit owner, if the address is within the United States, and to
50	the address of the property that is subject to the lien.
51	2.  If the unit owner has given the association an
52	alternate address outside the United States, the written notice
53	requirement is satisfied by sending a copy of the written notice
54	to the unit owner by regular mail at the alternate address and
55	by sending a copy to the property address by registered or
56	certified mail and regular mail.
57	3.  If the mailing is completed in compliance with this
58	paragraph, the written notice is deemed to have been given and
59	is deemed to have been received by the unit owner 5 days after
60	the date of mailing, hand delivery, or electronic transmission.
61	Notwithstanding this paragraph, the notice requirements are
62	inapplicable if a unit owner records a notice of contest of lien
63	or if an action to foreclose a mortgage on the property is
64	pending before any court. No foreclosure judgment may be entered
65	until at least 30 days after the association gives written
66	notice to the unit owner of its intention to foreclose its lien
67	to collect the unpaid assessments. If this notice is not given
68	at least 30 days before the foreclosure action is filed, and if
69	the unpaid assessments, including those coming due after the
70	claim of lien is recorded, are paid before the entry of a final
71	judgment of foreclosure, the association shall not recover
72	attorney's fees or costs. The notice must be given by delivery
73	of a copy of it to the unit owner or by certified or registered
74	mail, return receipt requested, addressed to the unit owner at
75	his or her last known address; and, upon such mailing, the
76	notice shall be deemed to have been given, and the court shall
77	proceed with the foreclosure action and may award attorney's
78	fees and costs as permitted by law. The notice requirements of
79	this subsection are satisfied if the unit owner records a notice
80	of contest of lien as provided in subsection (5). The notice
81	requirements of this subsection do not apply if an action to
82	foreclose a mortgage on the condominium unit is pending before
83	any court; if the rights of the association would be affected by
84	such foreclosure; and if actual, constructive, or substitute
85	service of process has been made on the unit owner.
86	(c)  If the unit owner remains in possession of the unit
87	after a foreclosure judgment has been entered, the court, in its
88	discretion, may require the unit owner to pay a reasonable
89	rental for the unit. If the unit is rented or leased during the
90	pendency of the foreclosure action, the association is entitled
91	to the appointment of a receiver to collect the rent. The
92	expenses of the receiver shall be paid by the party that which
93	does not prevail in the foreclosure action.
94	(d)  The association may has the power to purchase the
95	condominium parcel at the foreclosure sale and to hold, lease,
96	mortgage, or convey it.
97	(e)1.  If the unit owner makes a qualifying offer at any
98	time before the entry of a foreclosure judgment, the association
99	shall suspend its foreclosure action or collection efforts and
100	agree to allow the unit owner to pay all amounts due plus
101	interest within 60 days after receipt of the qualifying offer.
102	2.  For purposes of this paragraph, the term "qualifying
103	offer" means a written offer to pay all amounts secured by the
104	lien of the association plus the rate of interest stated in the
105	governing documents for delinquent accounts or, if no such rate
106	is stated, 10 percent interest.
107	3.  The unit owner's qualifying offer must be in writing.
108	The offer must be included in an agreement prepared by the
109	association's counsel which document must acknowledge that the
110	amounts contained in the agreement are secured by the lien of
111	the association. If the unit owner makes a qualifying offer
112	under this paragraph, the association may not add additional
113	legal fees within the 60-day period other than a reasonable
114	amount to prepare the written agreement required by this
115	paragraph.
116	4.  The qualifying offer to the association must be
117	delivered to the attorney of the association by hand delivery or
118	certified or registered mail and is not deemed received by the
119	association until the offer is actually received by the
120	attorney. Notwithstanding this subparagraph, an offer is not
121	considered a qualifying offer if a notice of contest of lien is
122	recorded or if the offer is made more than 8 months after the
123	lien is recorded by the association unless a foreclosure action
124	has already been filed.
125	Section 2.  Subsection (5) of section 719.108, Florida
126	Statutes, is amended to read:
127	719.108  Rents and assessments; liability; lien and
128	priority; interest; collection; cooperative ownership.--
129	(5)(a)  Liens for rents and assessments may be foreclosed
130	by suit brought in the name of the association, in like manner
131	as a foreclosure of a mortgage on real property. In any
132	foreclosure, the unit owner shall pay a reasonable rental for
133	the cooperative parcel, if so provided in the cooperative
134	documents, and the plaintiff in the foreclosure is entitled to
135	the appointment of a receiver to collect the rent. The
136	association has the power, unless prohibited by the cooperative
137	documents, to bid on the cooperative parcel at the foreclosure
138	sale and to acquire and hold, lease, mortgage, or convey it.
139	Suit to recover a money judgment for unpaid rents and
140	assessments may be maintained without waiving the lien securing
141	them.
142	(b)1.  If the unit owner makes a qualifying offer at any
143	time before the entry of a foreclosure judgment, the association
144	shall suspend its foreclosure action or collection efforts and
145	agree to allow the unit owner to pay all amounts due plus
146	interest within 60 days after receipt of the qualifying offer.
147	2.  For purposes of this paragraph, the term "qualifying
148	offer" means a written offer to pay all amounts secured by the
149	lien of the association, plus the rate of interest stated in the
150	governing documents for delinquent accounts or, if no such rate
151	is stated, 10 percent interest.
152	3.  The unit owner's qualifying offer must be in writing.
153	The offer must be included in an agreement prepared by the
154	association's counsel which document must acknowledge that the
155	amounts contained in the agreement are secured by the lien of
156	the association. If the unit owner makes a qualifying offer
157	under this paragraph, the association may not add additional
158	legal fees within the 60-day period other than a reasonable
159	amount to prepare the written agreement required by this
160	paragraph.
161	4.  The qualifying offer to the association must be
162	delivered to the attorney of the association by hand delivery or
163	certified or registered mail and is not deemed received by the
164	association until the offer is actually received by the
165	attorney. Notwithstanding this subparagraph, an offer is not
166	considered a qualifying offer if a notice of contest of lien is
167	recorded or if the offer is made more than 8 months after the
168	lien is recorded by the association unless a foreclosure action
169	has already been filed.
170	Section 3.  This act shall take effect July 1, 2007.

CODING: Words stricken are deletions; words underlined are additions.