No Respite for Condo Associations Faced with Foreclosed Vacant Units
There is no respite for condo associations in Florida who are faced with the problem of foreclosed vacant units. This has led to a dwindling of subscription towards the fees for the association making it difficult for them to continue with providing services to those owners still residing in the condos and who have not as yet faced foreclosure.
A reform bill had been introduced that would have brought good news to condo associations but Governor Charlie Crist vetoed the bill. He argued that it was done keeping in mind safety norms. He wanted to ensure that the condo associations immediately upgraded their fire sprinklers.
The bill (714) was thick with various items related to condo problems, safety requirements of the state and insurance issues.
The veto by Cristo threw out the suggested postponements of the state ordered mandate on upgrading fire sprinklers. The veto also threw cold water on the temporary financial relief that the bill was due to offer to the hard pressed condo associations. The complex insurance conditions were to have been cleaned up thus benefiting both the condo associations and the owners.
The veto came at a critical time when thousands of condo associations across southern Florida are struggling to pay proportionately high bills resulting from the increased number of foreclosures. The new clause about mandatory safety installations will put further pressure on the owners and association.
Barbara Zee of Alliance of Delray said, “The governor’s veto was [about] safety However, these are extraordinarily tough economic times. It was a true necessity for financially struggling associations to get an extension of time.”
As a result of the veto no extension has been granted for retrofitting fire sprinklers in condos – it has to be completed on specified date – 31st December 2014. Single and two storied building have not been exempted from the rules laid down by the state government.
Secondly the condo owners would be expected to buy HO6 insurance and to mention the name of the association as additionally insured. It means that in the event of a cheque coming from damages caused by a hurricane both the owner and the association would be mentioned in it. Dick Herman of Burgundy Association of Delray Beach (Kings Point) said, “The veto means associations such as mine still have unresolved issues concerning insurance, such as who is responsible for deductibles on the association policy when damage is caused by unit owner action. And how much does the association board want to police unit owners?”