As many of my readers know, Senate Bill 1196 amended Florida Statute Section 718.116(1)(b) to provide that a first mortgagee or its successor or assignee who acquires title to a condominium unit by foreclosure or by deed in lieu of foreclosure is required to pay the unpaid assessments that became due before the mortgagee’s acquiring title in an amount equal to the lesser of:

  1. the unit’s unpaid common expenses and regular periodic assessments which accrued or became 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
  2. one percent of the original mortgage debt

The provisions of amended F.S. Section 718.116(1)(b) may not apply in certain situations where the first mortgagee fails to join the association as a party in the foreclosure action.

Prior to SB 1196, a condominium association was only entitled to the lesser of 6 months’ unpaid common expenses and regular periodic assessments or one percent of the original mortgage debt.

With this amendment, condominium associations find themselves granted the same relief as mandatory homeowners associations–the latter through the provisions of F.S. Section 720.3085.

What about cooperative associations?

I’ve searched through Chapter 719 (which governs cooperatives) and SB 1196 and can find no language that either establishes or limits the liability of any one acquiring title to a cooperative unit by foreclosure or by an assignment in lieu of foreclosure for unpaid common expenses or regular periodic assessments owed to the cooperative association.

This is one of many examples of the differences between Chapters 718, 719, and 720 of the Florida Statutes. 

When it comes to resident owned communities, one size truly does not fit all and a board or manager should consult with the association’s attorney when dealing with these unpaid assessments–especially if the ROC is a cooperative.