This would be from the proverbial “What We’ve Been Waiting for From the Legislature” Department.
Community associations (HOA’s & condos) can now collect rent directly from tenants if the owner of the unit owes the association money. All it takes is a notice sent to the tenants. If the tenants do not comply, the Association has the option to evict them under Florida’s residential landlord/tenant law.
This new law, under 718.116 for condos and 720.3085 for HOA’s is a god-send for many associations nearing or at insolvency. Non-paying tenant occupied units have forced rising assessments in some communities, pushing owners past their budget-breaking-point in some cases.
This bill will assure not only that the rental units will pay on-going assessments, but that the past-due amounts will be paid, too.
The pertinent part of the bill follows below. It quotes 718.116, but the wording is very nearly identical for HOA’s, too.
SB 1196
718.116 Assessments; liability; lien and priority; interest; collection. –
(11) If the unit is occupied by a tenant and the unit owner is delinquent in paying any monetary obligation due to the association, the association may make a written demand that the tenant pay the future monetary obligations related to the condominium unit to the association, and the tenant must make such payment. The demand is continuing in nature and, upon demand, the tenant must pay the monetary obligations to the association until the association releases the tenant or the tenant discontinues tenancy in the unit. The association must mail written notice to the unit owner of the association’s demand that the tenant make payments to the association. The association shall, upon request, provide the tenant with written receipts for payments made. A tenant who acts in good faith in response to a written demand from an association is immune from any claim from the unit owner.
(a) If the tenant prepaid rent to the unit owner before receiving the demand from the association and provides written evidence of paying the rent to the association within 14 days after receiving the demand, the tenant shall receive credit for the prepaid rent for the applicable period and must make any subsequent rental payments to the association to be credited against the monetary obligations of the unit owner to the association.
(b) The tenant is not liable for increases in the amount of the monetary obligations due unless the tenant was notified in writing of the increase at least 10 days before the date the rent is due. The liability of the tenant may not exceed the amount due from the tenant to the tenant’s landlord. The tenant’s landlord shall provide the tenant a credit against rents due to the unit owner in the amount of monies paid to the association under this section.
(c) The association may issue notices under s. 83.56 and may sue for eviction under ss. 83.59-83.625 as if the association were a landlord under part II of chapter 83 if the tenant fails to pay a required payment to the association. However, the association is not otherwise considered a landlord under chapter 83 and specifically has no duties under s. 83.51.
(d) The tenant does not, by virtue of payment of monetary obligations to the association, have any of the rights of a unit owner to vote in any election or to examine the books and records of the association.
(e) A court may supersede the effect of this subsection by appointing a receiver.
For associations wanting to take full advantage of this law, I would start right now! The law is effective July 1, 2010. Send notices to tenants immediately. Begin collecting rent the very day the law goes into effect.
- Say in the notice, in so many words, “July rent goes to the association or you will be evicted.”
- Be sure the OWNER IS SENT NOTICE AT THE SAME TIME. (Even if it is an HOA!!!!!)
- “any monetary obligation” means legal fees, late fees, interest, fines, ANY MONETARY OBLIGATION to the Association.
- Collect rent until ALL monetary obligations are satisfied.
- Don’t be shy about costs or what the Association is entitled to collect.
- EVICTION: the new statute gives the Association the power to evict without the obligations of actually being a landlord.
In other words, a new day has dawned for community association collections. (Yippee!)
Posted by tedkbrown 
