Monday, May 27, 2013

HOA Horror in Polk County

I love this blog.   Horror in Homeowner Associations.
I am in Florida and the problems we have with HOAs is a real nightmare.  
The HOAs know most people cannot afford the $100,000 - $200,000 it cost to fight them in court so they do what they want, often after getting legal advice to do so.
It's a system where you are under quasi-governmental rule by a private corporation operated by your neighbors who are often people who failed at their careers and need the ego trip to boost their low self-esteem.  It will never work no matter how many good laws the state tries to enact.  This year Florida has a very good HOA Reform Bill being enacted, but that is rare.  The big law firms, who represent thousands of the associations, have the money to lobby and get the legislation passed which benefits their clients, the associations, not the homeowners.
I think we Florida and other states should do what I have seen in some states -- let Code Enforcement enforce the deed restrictions.  Most people will not become upset when a county official knocks on their door and tells them they have ten days to fix the problem or they will receive a fine.  Everyone gets upset when they get a nasty letter from the HOA because they automatically think the president, their neighbor, wrote it and it becomes personal.
Just this past week I had an issue with a board president falsely pulling a gun on an elderly, disabled couple in Polk County.  Are we going to have another Trayvon Martin situation?  The wife accompanied my client  to mediation, where the dispute was resolved. Evidently the HOA didn't want to resolve the dispute because three board members followed my client and her friend, who lives across the street, home.  My client and her friend drove around to different areas just to make sure they would not be followed because they were sure something would happen despite resolving the dispute.  When they arrived home (they live across the street from each other) a car pulled up right behind them, stopping suddenly and almost hitting them in the rear, and the board president immediately jumped out and started a dispute with my client's friend.  He walked over to her home and started taking pictures.  He engaged in a heated dispute with the couple when the husband came out his house.  Later, he followed them to the common areas where the couple go every evening to sit on the boat dock and watch the sunset.  The common areas were locked.  When the husband asked the board president if he would unlock the gates, the board president, videotaping with his phone, announced "I fear for my life" and took out his gun.
If this guy feared for his life, why did he go to the couple's house earlier?  Florida politicians -- pay attention!!!! The Stand Your Ground Law is being abused!!!  The board president then proceeded to call the police who did nothing.  In their view the board president was well within his rights.  They did not know he went to the couple's home earlier and I guess the couple were too traumatized to think to tell the police.
It's Flori-duh!!!

HOA Nightmares

I saw this picture on a blog called "The Horror of Homeowner Associations" and thought it deserved to be republished.  The link is HOA Horror Stories

Thursday, May 23, 2013

Annual Reporting by Associations


The annual financial reports your association is required to prepare depends on the total annual revenue generated from all sources.  This is also known as the total income and should be easily identified on the annual budget which the association is required to prepare and provide to owners.  There is no requirement all associations submit to audits.

For Homeowner Associations, Fla. Stat. 720.303(7)(a) provides: 

1. An association with total annual revenues of $100,000 or more, but less than $200,000, shall prepare compiled financial statements. 

2. An association with total annual revenues of at least $200,000, but less than $400,000, shall prepare reviewed financial statements. 

3. An association with total annual revenues of $400,000 or more shall prepare audited financial statements. 

Fla. Stat. 720.303(7)(b) provides: 

1. An association with total annual revenues of less than $100,000 shall prepare a report of cash receipts and expenditures. 

2. An association in a community of fewer than 50 parcels, regardless of the association’s annual revenues, may prepare a report of cash receipts and expenditures in lieu of financial statements required by paragraph (a) unless the governing documents provide otherwise. 

For condominium associations, Fla. Stat. 718.111(13)(a) provides:

1. An association with total annual revenues of $100,000 or more, but less than $200,000, shall prepare compiled financial statements.
2. An association with total annual revenues of at least $200,000, but less than $400,000, shall prepare reviewed financial statements.
3. An association with total annual revenues of $400,000 or more shall prepare audited financial statements.
Fla. Stat. 718.111(13)(a) provides:

1. An association with total annual revenues of less than $100,000 shall prepare a report of cash receipts and expenditures.

2. An association that operates fewer than 75 units, regardless of the association’s annual revenues, shall prepare a report of cash receipts and expenditures in lieu of financial statements required by paragraph (a).

Monday, May 20, 2013

Stand Your Ground Law Abused Again

I think our legislators in Florida need to review the Stand Your Ground Law. I doubt they were thinking of HOA drama when they passed the bill, but we are about to have another Trayvon Martin issue.

I represent a client in a voluntary HOA. They refused to admit they were voluntary until I stepped in to represent the client. Another homeowner is friends with my client and accompanied her to the mediation (these are elderly and/or disabled people and a co-pilot was needed for the drive). We thought all was worked out, but evidently the HOA has some hot heads in the community.

The client and her friend were followed by the HOA president and two board members. When they arrived home this man began a verbal altercation with the friend. Later that day the HOA president sees the friend and her husband headed for their evening bike ride to the common areas and not only locks them out of the common areas, but pulls a gun on them when they asked him if he was going to unlock the gate. Using his cell phone to tape the incident, he announced "I fear for my life" and pulls out the gun.

If this guy feared for his life by two disabled people, both smaller than him, then why did he go to their home earlier? Why did he follow them when he saw them on their bikes? Why didn't he leave after locking the gate?

Yes, the law has no duty to retreat, but I don't think it was intended for you to stalk people either.

Thursday, May 9, 2013

HOA Wars

I had all intentions of blogging every day, but right now I have some interesting and time-consuming cases and a trial coming up shortly. I have had to actually turn down requests for consultations, which I absolutely do not want to do because owners do not have many association attorneys in Florida willing to represent homeowners. The money is in representing the associations. I will represent associations if they want to operate fairly and not get abusive or obnoxious. I guess it doesn't need to be said my list of association clients is short.

So why do I fight for owners and turn away good paying associations if they do not meet my standards? After all, I have been accused of being a little nuts for ignoring the "cash cow." The thing is if you have ever lived through HOA Hell, and I have, you would understand. I don't have to wonder what it was like to live during the Civil War -- it goes on in associations all over Florida every day. It's the association versus the owners -- those with power versus those who are powerless. It's also like being back in high school and you have to deal with the popular kids. The movie "Mean Girls" springs to mind.

To summarize my fight:

1. Fighting a HOA who refuses to acknowledge the Florida-friendly landscaping statute and my client's right to conserve water and not pollute the planet with fertilizers, pesticides and herbicides (while letting board members use HOA resources to maintain their St. Augustine grass).

2. Fighting a HOA with the "popular kids" in charge who changed the Declarations by simply retyping them and passing them off as the official documents.

3. Fighting a HOA controlled by a developer who has been arrested on 8 felony counts of stealing $539,000+ from the HOA and he's still in charge!

4. Starting a fight with a condo association with a board that steals money by doing business with companies owned by the board members, charging the expenses of these companies to the condo association, and reimbursing themselves lots of $$$ for "supplies." If Governor Rick Scott signs that HOA Reform bill come July 1st the property management company helping them will be in big trouble too.

And then there's the usual cases of illegal fines, illegal assessments, HOAs insisting they are mandatory when they are not and just all out bullying.

So, I'll be real busy for the next four or five weeks, but I'll get back to posting my usual "how to stay out of trouble with your association" blogs on a regular basis after that.

In the meanwhile, stay safe, pay attention to the rules so they can't be used against you, and never withhold assessments (even if the board is lining their own pockets with the money).