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HomeMy WebLinkAboutR-2009-001 FS Amend Foreclosure Responsibility RESOLUTION NO. 2009-001 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA, SUPPORTING AMENDMENTS TO THE FLORIDA STATUTES TO INCREASE MORTGAGE HOLDERS' RESPONSIBILITY FOR DELINQUENT CONDOMINIUM, CO-OPERATIVE AND HOMEOWNERS' ASSOCIATIONS FEES, REGULAR ASSESSMENTS AND SPECIAL ASSESSMENTS ON UNITS IN FORECLOSURE AND ON UNITS WHICH HAVE BEEN FORECLOSED; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, due to current economic conditions which include a housing market crisis, South Florida, in particular, is experiencing a significant increase in foreclosure suits filed; and WHEREAS, under present Florida law, mortgage holders are only responsible for unpaid condominium association fees that are the lesser of 1% of any mortgage amount or six months of unpaid maintenance fees and regular assessments at the time of foreclosure; and WHEREAS, under the foregoing formula, condominium association fees often accumulate in excess of what the mortgage holder is responsible for, resulting in such fees becoming the responsibility of the remaining association members who must pay, in many cases, exorbitant special assessments to cover the maintenance expenses and all special assessments of the building, while units in foreclosure proceedings and foreclosed units continue to benefit at no additional expense to the mortgage holder; and WHEREAS, in order to provide a disincentive for mortgage lenders to delay foreclosure actions in order to avoid the payment of escalating condominium fees, and to fairly place responsibility on the party that has the most to benefit from the continued receipt of maintenance services on units in foreclosure proceedings and foreclosed units, the Florida Statutes should be amended; and WHEREAS, the City Commission of the City of Dania Beach, Florida deems such an amendment to be in the best interests of the citizens and residents of the City of Dania Beach; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA: Section 1. That the foregoing "WHEREAS" clauses are confirmed and ratified as being true and correct and they are incorporated by this reference. Section 2. That the City Commission of the City of Dania Beach, Florida supports amendments to the Florida Statutes to increase mortgage holders' responsibility for delinquent condominium, co-operative and homeowners' association fees, regular assessments and special assessments on units in foreclosure. Section 3. All resolutions or parts of resolutions in conflict with this Resolution are repealed to the extent of such conflict. Section 4. That this Resolution shall be in force and take effect immediately upon its passage and adoption. PASSED AND ADOPTED on January 13, 2009. ALBERT C. JON MAYOR-COMM SIGNER ATTEST: l/ 1 — LOUISE STILSON, CMC -- CITY CLERK RTEO �" APPROVED AS FO AND CORRECTNESS: 4 T AS . AINOAR6 CITY ATTORNEY 2 RESOLUTION #2009-001