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Item Q11 QII BOARD OF COUNTY COMMISSIONERS COUNTY of MONROE �� i Mayor Holly Merrill Raschein,District 5 The Florida Keys Mayor Pro Tern James K.Scholl,District 3 Craig Cates,District 1 Michelle Lincoln,District 2 ' David Rice,District 4 Board of County Commissioners Meeting July 17, 2024 Agenda Item Number: Q11 2023-2702 BULK ITEM: No DEPARTMENT: County Attorney TIME APPROXIMATE: STAFF CONTACT: Kelly Dugan N/A AGENDA ITEM WORDING: Approval of a resolution extending the date from July 31, 2024, to January 31, 2025, that the seller of a property would have a defense of the non-availability of a condition precedent (county flood compliance inspection) to establish the cause of action for claims brought by a buyer against a seller pursuant to Ordinance 026-2022 and/or 010-2012. ITEM BACKGROUND: Section 122-15 of the Code imposes a requirement that prior to the transfer of residential property that includes an elevated residential structure with below base flood enclosed area, commonly referred to as a downstairs enclosure, that the inspection of that downstairs enclosure be inspected by the county prior to transfer of ownership. Section 122-15 of the Code creates a private right of action for buyers to seek damages and injunctive relief against sellers who fail to obtain such an inspection. The Building Department currently lacks the capacity to conduct such inspections and has not had that capacity for some period of time. The Board of County Commissioners is considering amending Section 122-15 of the Code and will submit proposals to the relevant federal and state agencies. The BOCC previously found that a seller who sold a property which closed before July 31, 2024, would have a defense of the non-availability of a condition precedent to establish the cause of action for claims brought by a buyer against a seller pursuant to Ordinance 026-2022 and/or 010-2012. Further extension of the time period applicable to the defense of the non-availability of a condition precedent is warranted. PREVIOUS RELEVANT BOCC ACTION: 11/15/2022 -Approval of Ordinance No. 026-2022. 03/22/2023 - Resolution 093-2023, setting time frame of defense to 09/01/2023. 4980 07/19/2023 - Resolution 257-2023, extending time frame of defense to 01/31/2024. 01/31/2024 - Resolution 045-2024, extending time frame of defense to 07/31/2024. INSURANCE REQUIRED: No CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Approval. DOCUMENTATION: Resolution inspection program extension 4.pdf FINANCIAL IMPACT: N/A 4981 Resolution No. - 2024 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY FLORIDA RECOGNIZING THAT THE IMPLEMENTATION OF ORDINANCE NO. 026-2022 HAS BEEN HAMPERED BY THE LACK OF CAPACITY OF THE BUILDING DEPARTMENT TO CONDUCT INSPECTIONS REQUIRED BY ORDINANCE 026- 2022 AND/OR 010-2012 AND RECOGNIZING THAT FOR PROPERTIES THAT CLOSED BEFORE JANUARY 31, 2025 WOULD HAVE A DEFENSE OF NON-AVAILABILITY OF A CONDITION PRECEDENT AGAINST ANY CLAIM ASSERTED BY A BUYER FOR NOT HAVING AN INSPECTION. Whereas, the Board of County Commissioners of Monroe County (the Board), pursuant to its legislative authority under Article VI11, Section 1 of the Florida Constitution and Chapter 125, Florida Statutes, enacted Ordinance 026-2022 on November 15, 2022; and Whereas, that Ordinance updated the inspection upon transfer requirement that had been in existence since 2012 and which is currently codified in Section 122-15 of the Land Development Code; and Whereas, Section 122-15 of the Code imposes a requirement that prior to the transfer of residential property that includes an elevated residential structure with below base flood enclosed area, commonly referred to as a downstairs enclosure, that the inspection of that downstairs enclosure be inspected by the county prior to transfer of ownership; and Whereas, Section 122-15 of the Code creates a private right of action for buyers to seek damages and injunctive relief against sellers who fail to obtain such an inspection; and Whereas, Ordinance 026-2022 was passed by the Board on November 15, 20227 and became effective on or about March 7, 2023, when the statutory challenge period required for land development regulations in the Florida Keys Area of Critical State Concern expired without a challenge; and Whereas, the Board is considering amending Section 122-15 of the Code and will submit proposals to the relevant federal and state agencies; and Whereas, the Building Department currently lacks the capacity to conduct such inspections and has not had that capacity for some period of time, and needs additional time to assist in the pursuit of a possible amendment to Section 122-15; and 4982 Whereas, the Board previously found that a seller who sold a property which closed before July 31, 2024, would have a defense of the non-availability of a condition precedent to establish the cause of action for claims brought by a buyer against a seller pursuant to Ordinance 026-2022 and/or 010-2012. Whereas, the Board finds that a seller who sold a property which closed before January 31, 2025, would still have a defense of non-availability of a condition precedent (i.e., county transfer of ownership inspection) to establish the cause of action for claims brought by a buyer against a seller pursuant to Ordinance 026-2022 and/or 010-2012. Now therefore, be it resolved by the Board of County Commissioners of Monroe County, Florida that: 1. The above-stated recitals are incorporated herein as findings of fact. 2. A seller who sold a property which closed before January 31, 2025, would have a defense of the non-availability of a condition precedent (county flood compliance inspection) to establish the cause of action for claims brought by a buyer against a seller pursuant to Ordinance 026-2022 and/or 010-2012. 3. This resolution should be construed liberally in favor of the seller asserting this defense as a complete defense to claims brought pursuant to Ordinance 026- 2022 and/or 010-2012. PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida, at a regular meeting held on the 17th day of July, 2024, held in Marathon, Florida. Mayor Holly Merrill Raschein Mayor Pro Tem James K. Scholl Commissioner Craig Cates Commissioner Michelle Lincoln Commissioner David Rice (SEAL) BOARD OF COUNTY COMMISSIONERS Attest: KEVIN MADOK, Clerk OF MONROE COUNTY, FLORIDA By: By: As Deputy Clerk Mayor Approved for form and legal sufficiency Kelly Dugan Assistant Monroe County Attorney 4983