Coronavirus (COVID-19)

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A large part of my law practice deals with “takings”—a situation where a government authority with the power to condemn, or a private entity with the power to condemn, has taken private property. Takings falls primarily into one of two large categories:

  1. “Direct takings,” which is when a government or private entity, like a utility, files a lawsuit to acquire private property through the court system; and
  2. “Inverse” or indirect condemnation, which is when a government or private entity has taken private property without using the court system.

In the case, Orlando Bar Group, LLC d/b/a The Basement, The Attic and the Treehouse v. DeSantis, the Fifth District Court of Appeal decided that Governor DeSantis’s executive orders from March 2020 did not amount to a taking of private property. Even though Governor DeSantis’s executive orders:

  • suspended all sales of alcoholic beverages by entities deriving more than fifty percent of their gross revenue;
  • suspended the sale of such beverages for on-premises consumption;
  • limited the operation of bars to seated service; and
  • restricted operational capacity to half of the typical occupancy previously permitted,

the Fifth DCA determined that those executive orders did not amount to a taking of private property.Continue Reading Governor DeSantis’s COVID-19 Closings Not a Taking of Private Property

Gated CommunityThe 2021 Florida Legislative session, which ended on April 30, 2021, was an active one for proposed community association legislation.

The following community association-related bills have either been signed into law or have passed the House and Senate and are pending signature by Governor DeSantis, with anticipated effective dates provided:
Continue Reading 2021 Florida legislative session brings significant changes to community association laws

Earlier this week, Florida Governor Ron DeSantis signed S.B. 72 into law, which grants some civil immunity to business entities against plaintiffs bringing COVID-19 injury and wrongful death claims. A review of the impact S.B. 72 has on business entities and civil claims is provided here. The bill applies to “certain business entities,” in recognition of the public interest as a whole served by

providing relief to these business … so that they may remain viable and continue to contribute to this state.”

Among other types of businesses included in the definition of “business entities” are corporations not-for-profit under Sec. 617.01401, Fla. Stat. Based on a plain reading of the law, this would include condominium and homeowners’ associations, although it remains to be seen how the application of the law will be interpreted as it percolates in Florida courts.

Sigh of relief

Continue Reading New COVID-19 Civil Immunity Law Provides Relief to Florida Condo and HOAs

The COVID-19 pandemic has caused unprecedented impacts on the residential real estate market. The warning signs for Phase I were not easily detected, and almost overnight, the parties to such transactions, as well as those essential to closing such transactions, had to re-evaluate their means and methods of conducting business. Below are some tips for those buying or selling real estate in a pandemic:

Tips for Buyers

  • Add a specific contract amendment addressing potential coronavirus-related delays. Many state realtor associations have provided a coronavirus addendum for use by agents. For example, the Florida Association of Realtors has set forth a Coronavirus (COVID-19) Extension Addendum to Contract to address coronavirus-related delays. This particular Addendum may be utilized with all existing Florida Association of Realtors contracts, inclusive of the various FAR/BAR contracts.
  • In Collier County, Florida, the Naples Area Board of Realtors (“NABOR”), have both a coronavirus addendum and amendment for use with its NABOR existing form contracts. Both the State and local coronavirus addenda provide for time period extensions for the closing date, financing period, inspection period, title cure period, and due diligence periods, as well as allowing the Buyer to receive an escrow deposit refund under select circumstances of lender loan disapproval.
  • Notwithstanding the benefit of these new addenda, buyers should seek legal counsel to review and/or customize a coronavirus addendum or amendment to maximize the buyer’s protection.

Tips for Sellers

Continue Reading Tips for Buying and Selling Residential Real Estate in a Pandemic

On April 2, 2020, Governor DeSantis signed Executive Order 20-94, which placed a moratorium on residential eviction actions related to the non-payment of rent. The purpose of the moratorium was to provide targeted, temporary relief to Floridians in the wake of the COVID-19 pandemic. However, after granting several extensions, Governor DeSantis permitted Florida’s moratorium to expire at midnight on September 30, 2020.

While the expiration on Florida’s moratorium may come as a relief to landlords and a further concern to tenants, there remains a federal moratorium imposed by the Centers for Disease Control and Prevention (“CDC”) that continues to impact Florida rental properties.

Who’s covered under the CDC Moratorium?

Continue Reading How the CDC’s Moratorium Could Impact Florida Landlords’ Right to Evict Despite the Expiration of the Florida Moratorium

On April 2, 2020, Governor DeSantis signed Executive Order 20-94, which placed a moratorium on mortgage foreclosure actions, as well as residential eviction actions related to the non-payment of rent. The purpose of the moratorium was to provide targeted, temporary relief to Floridians in the wake of the COVID-19 pandemic. Since Executive Order 20-94 was enacted, three additional orders were signed by Governor DeSantis in order to extend the stay.

Most recently, on July 29, 2020, Governor DeSantis signed Executive Order 20-180, which extended the foreclosure and eviction moratorium through September 1, 2020. However, the new order made substantial changes to limit the types of cases that are covered by the moratorium.

Changes to the stay on mortgage foreclosures

Previously, all mortgage foreclosure cases were suspended, regardless of the reason the foreclosure action was filed. In contrast, under the new order, the foreclosure stay only extends to “single-family mortgagors adversely affected by the COVID-19 emergency”, and only for cases where the default is directly tied to non-payment.Continue Reading Important Update Regarding Florida’s Moratorium on Evictions and Foreclosures

During the COVID-19 pandemic, most of us have been forced to incorporate greater use of technology to conduct our business. For many associations, some tasks have been done for the first time using electronic technologies, such as video meetings under the exceptions permitted by the board’s emergency powers.

Conducting business by electronic means can increase efficiency and save paper, money, and storage space. Now that we are all getting used to conducting more business solely by solely electronic means, boards and managers may be wondering what they can do under the law to continue to use technology to operate their associations under “normal” circumstances. Here are some reminders of what is permitted under the Florida Statutes.

Meeting Notices

E-mail can be used to provide meeting notices only for owners who have consented in writing to accept notices by electronic means and who have provided an email address for that purpose. Meeting notices must also still be posted in a conspicuous place on the property if otherwise required. In addition to mailing, hand delivering or e-mailing notices, an association may adopt a procedure for conspicuously posting and repeatedly broadcasting the notice and agenda on a closed-circuit cable television system serving the association. If used, the broadcast notice and agenda must be broadcast in a manner and sufficient length of time so as to allow an average reader to observe, read and comprehend the entire content.

Websites

Continue Reading Incorporating Electronic Technology Into Association Operations

In late June, Governor DeSantis approved Florida’s version of the Uniform Commercial Real Estate Receivership Act (“UCRERA”) and the Act became effective July 1, 2020. This law begins its life in a time of great uncertainty for the Florida business community as the Sunshine State’s recently-relaxed business restrictions underwent a near full reversal as COVID-19 cases spiked around the state. This retightening of COVID-19 business restrictions and the uncertainty associated with it will likely mean Florida businesses may continue to struggle. This is where UCRERA comes in.

UCRERA codifies Florida common law around receivership and even expanded it in some cases. Those involved in Florida’s commercial real estate industry, whether on the lending or the borrowing side, would do well to take note of these changes as an increase in foreclosures is predicted as a result of COVID-19’s negative impact on Florida’s businesses.

What do Florida lenders need to look out for?

If you are a commercial lender, this law is definitely in your favor due to the expansive powers it gives receivers to help pay back the commercial lenders who appoint them. Lenders should focus on three things:

  • the mandatory receivership duties under UCRERA;
  • what actions receivers are allowed to do “in the ordinary course of business” and outside of it; and,
  • what actions they need court approval for.

The latter two things often go hand in hand as you will see below.

Impact on Borrowers

Although this sounds bad for borrowers, borrowers should be on the lookout for language like “with court approval” because that means a borrower will likely have the chance to contest whatever the receiver is trying to do.Continue Reading Understanding Florida’s Commercial Property Receivership Act and its Impact on Lenders and Borrowers Amidst COVID-19

Permit Extensions for Emergency Declarations

Pursuant to Florida Statute 252.363, the Governor’s declaration of a state of emergency tolls the period remaining to exercise rights under a permit or other authorization, essentially extending the life of the permit or authorization.

The expiration date of the permit or authorization is tolled for the duration of the emergency declaration plus an additional six months, and applies to the following:

  • development orders issued by a local government;
  • building permits;
  • permits issued by the Department of Environmental Protection or a water management district; and
  • the buildout date of a development of regional impact.

On March 9, 2020, Governor DeSantis issued Executive Order 20-52 declaring COVID-19 a public health emergency. Such declaration triggers the provisions of Florida Statute 252.363 and allows extensions of the permits and authorizations mentioned above.

Requests for extensions must be submitted to the appropriate permitting authority within 90 days after the emergency declaration has expired. Executive Order 20-52 is set to expire on May 8, 2020, unless further extended.

Suspension of Mortgage Foreclosures and Evictions

Continue Reading COVID-19: Real Estate Updates Halfway Through the Stay-at-Home Order