AMENDMENTS TO H319 GET BANKS OFF THE HOOK, AGAIN -- LEAVING ASSOCIATIONS/OWNERS HOLDING THE BAG

An Opinion By Jan Bergemann 
President, Cyber Citizens For Justice, Inc.

Published December 13, 2011

 

I can only shake my head in disbelief when I see that many board members are willing to spend association funds on the lobbying efforts of CAN (COMMUNITY ADVOCACY NETWORK -- Katzman Garfinkel & Berger), CALL (COMMUNITY ASSOCIATION LEADERSHIP LOBBY -- Becker & Poliakoff) and the CAI (COMMUNITY ASSOCIATIONS INSTITUTE). It is so obvious that these lawyer lobbying groups are working on everything to fill their pockets -- and the pockets of other service providers -- to the detriment of associations and owners. Some of the bill proposals they are pushing are outright anti-association. But these board members still support these attorney groups with association funds, enabling them to lobby for free for lawyer-friendly bills. Great deal to lobby for bills with the money of the folks you want to fleece. Can't get any better!

Latest example: The two amendments to H 319 that were added to this bill at a meeting of the Civil Justice Subcommittee on Wednesday, December 7, 2011. Amendments 2 (Condo) and 5 (HOA) passed the committee with flying colors with the support of CAN, CALL and the CAI. These amendments make sure that banks (first mortgagees) will not be burdened with any cost the association incurs during attempts to collect the unpaid dues. 

    

This is the new wording in FS 718 and FS 720: ...interest , administrative late fees, reasonable costs and attorney fees, and any other fee, cost, or expense incurred in the collection process is limited to the lesser of:
a. Only the parcel's unpaid common expenses and regular periodic or special assessments that accrued or came due during the 12 months immediately preceding the acquisition of title and for which payment in full has not been received by the association; or
b. One percent of the original mortgage debt.

 

This new provision, if enacted, makes sure that no interested buyer in his/her right mind will buy from distressed homeowners/condo owners or even at foreclosure auction. The buyer would be responsible to pay all the above listed costs plus all unpaid dues. 

 

If this bill is enacted in the amended version, it's easy for potential buyers: Wait until the bank takes possession of the home or condo, wait until the minimal payments required by the bank are paid to the association -- and buy the home/condo at a discounted price from the bank. In this case the new owner will not be liable to pay a dime to the association, starting with a clean slate. And the still-paying owners of the association are left holding the bag -- as usual. They have to "eat" all these fees and unpaid dues without getting a dime back from anybody.

 

Board members and owners should send CAN, CALL and the CIA big THANK-YOU NOTES for helping to pass this amendment that will again leave associations -- meaning board members and owners -- holding the bag.

 

Adding INSULT to INJURY this "lobbying effort" was more or less paid with association dues, given to these lobbying groups by board members who don't seem to understand that they are paying for their own demise

  

Isn't life fun if you know that your own money is being used to lobby AGAINST your own financial interest?

ONLY IN FLORIDA'S COMMUNITY ASSOCIATIONS!


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