Some Condo Associations Worry About Bill To Be Discussed in Tallahassee
Some condo associations say that if passed, the bill could hurt condo owners, while others say it won't
Some condo associations say that if passed, the bill could hurt condo owners, while others say it won't.
A bill soon to be considered by lawmakers in Tallahassee during the legislative session has some condo associations worried it could result in higher maintenance fees for Florida condo owners.
Reinaldo Trujillo, the condo association president at Grandview Palace Condos in North Bay Village, says that if House Bill 319 is passed, it will hurt every single condo owner in the state.
“It is very important for us to be able to recuperate when the foreclosure comes (because) the money that is missing from the budget, because that way we can catch up with the projects that we have,” Trujillo said.
So, Trujillo and other association presidents have written to House Rep. George Moraitis who is spearheading the effort. His bill caps funds the condo owners can recover from banks to pay legal and other fees, including maintenance fees, once the bank takes the foreclosed unit back. This could force owners to increase fees to keep the condos working properly.
Moraitis, who represents District 91, said he wants to help get units resold fast.
“What we want to do is facilitate resale of the units after these foreclosures happen,” he told NBC Miami.
Moraitis said the condos could recover the fees other ways, and he’s simply trying to make banks foreclose quicker and get the units on the market.
“The money that comes out of what the bank would be paying should go to the associations and not to legal fees. So we want to discourage litigation and encourage the property sale of the units,” he said.
But Trujillo disagrees.
"If we have to increase the maintenance fee to cover the losses that we have, we will create more foreclosures,” Trujillo said.
Meanwhile, other condo association presidents say the bill is a good idea.
Sharon Dodge says in her building, the Venetia, a third of the units are in foreclosure and something must be done to get owners who pay their mortgage and fees on time back in the units.
