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CAN ALERT: Send in Your Board Resolution on Foreclosure Reform!

Dear  As CAN previously advised you, Miami Beach Commissioner, Jerry Libbin,is spearheading an effort to hold lenders more accountable for past due condominium assessments. Commissioner Libbin will be holding a Town Hall meeting on Wednesday, October 15, 2008, at 6:30 pm to 8:00 pm at the Loews Hotel at 1601 Collins Avenue, Miami Beach, FL. Public parking will be available in nearby municipal garages. My partner Leigh Katzman and I have been in contact with Commissioner Libbin and we have helped revise the Board Resolution copied below to make it more user friendly. Please copy and paste the resolution below on to your Association letterhead. This resolution and reform effort is applicable to condominium associations statewide. You do not have to be located in Miami-Dade County or South Florida to benefit from the reforms that both CAN and Commissioner Libbin are pursuing. Please take a moment to pass this Resolution at your next board meeting and either fax it to Commissioner Libbin at 305-673-7096 or send via email to Jerry@miamibeachfl.gov. Please also fax it to me at 954-315-0373 so we can track how many associations are involved and I will make sure it gets to Commissioner Libbin as well. There is no deadline by which this Resolution must be sent in although certainly the sooner the better. RESOLUTION OF THE BOARD OF DIRECTORS OF __________________________________________________ REGARDING PROPOSED LEGISLATION TO ADDRESS THE FORECLOSURE CRISIS THIS RESOLUTION is adopted this ______day of __________________, 200__ by the Board of Directors of _______________________________________ (the "Association"), a condominium association made up of _________ units. WHEREAS, the Association is an entity operating pursuant to Chapter 718, Florida Statutes; and WHEREAS, the Association operates the Condominium know as ___________________________ in _____________________ County, Florida; and WHEREAS, the Association is empowered to collect assessments for the payment of common expenses pursuant to Section 718.116, Florida Statutes, and pursuant to its Declaration of Condominium; and WHEREAS, Section 718.116, Florida Statutes, states that the liability of a first mortgagee acquiring title to a unit by foreclosure or deed in lieu of foreclosure for unpaid assessments which came due prior to the acquisition of title shall be the lesser of the unit's unpaid common expenses and regular periodic assessments which accrued or came due during the six (6) months immediately preceding the acquisition of title or one percent of the original mortgage debt (hereafter referred to as the "Statutory Cap"); WHEREAS, the rising number of foreclosures filed by first mortgagees within the Association is having a dramatic negative impact on the Association's financial stability; WHEREAS, the Association's financial stability is being further eroded by the bank's deliberately slow pace in proceeding to judgment and foreclosure sale; and WHEREAS, the Statutory Cap limits the lender's liability and is causing the Association to lose substantial revenue which then becomes the burden of the remaining owners. NOW, THEREFORE, the Board of Directors of the Association resolves as follows: 1. The Statutory Cap must be amended to provide for additional necessary protections for condominium associations throughout Florida. 2. The elected officials to State office, both Representatives and Senators, must act during the upcoming 2009 Legislative Session to address the basic unfairness resulting from the Statutory Cap contained within Section 718.116, Florida Statutes. 3. The Proposed Bill, attached hereto as Exhibit "A" addresses the unfairness created by the Statutory Cap contained within Section 718.116, Florida Statutes by insulating the foreclosing first mortgagee from liability only for delinquent assessments that came due during the six months immediately prior to the bank taking title, but will provide for banks who foreclose to be responsible for ALL other delinquent assessments beyond the six month cap. 4. The Association strongly encourages the elected officials to State office, both Representatives and Senators, to support and vote in favor of the Proposed Bill, attached hereto as Exhibit "A" 5. This Resolution will be faxed to Commissioner Jerry Libbin at (305) 673-7096 so that he can carry it with him to Tallahassee. APPROVED AND RESOLVED this _______ day of ____________________, 200__. By: _____________________________________ President Attest: ___________________________________ Secretary PLEASE CLICK HERE FOR THE EXHIBIT "A" CONTAINING THE PROPOSED BILL TEXT TO BE ATTACHED TO YOUR BOARD RESOLUTION. http://www.canfl.com/Documents/Proposed%20Statutory%20Cap%20bill.pdf If you can attend this meeting, please come up and say hello as both Leigh and I will be there along with other members of our Firm. As always, if you have any questions or comments, please let me know. Finally, please be aware that Commissioner Libbin's efforts right now are concentrated on only condominium associations. There is no reason, however, that homeowners' associations should not pass a similar resolution seeking relief from the 12 month/1% cap on lenders under the HOA Act. Best Regards, Donna D. Berger, Esq. Executive Director of the Community Advocacy Network (CAN) Telephone: 954.315.0372 Facsimile: 954.315.0373 Web: www.canfl.com Email: dberger@canfl.com

For more information, please contact Donna Berger at (954) 315-0372 or via email at dberger@canfl.com