tag:blogger.com,1999:blog-1267596296882767172024-03-06T15:02:24.020-05:00Condo & HOA Law BlogCONDO & HOA LAW BLOG:
The latest news on Florida laws regulating condominiums and homeowner associations.Barbara Billiot Stage, Esq.http://www.blogger.com/profile/10212772964426073518noreply@blogger.comBlogger118125tag:blogger.com,1999:blog-126759629688276717.post-79840281312142064852019-07-23T17:10:00.000-04:002019-07-23T17:10:24.617-04:00Association Collections and Bankruptcy - Info for Board Members<div style="text-align: justify;">
One of the biggest issues facing associations is the ability to collect from delinquent owners who have filed bankruptcy. It is critical an association has an attorney experienced in creditor bankruptcy law in order to avoid waiving the right to collect those assessments from the delinquent owners, which often is thousands of dollars. Below is some general guidance for associations:</div>
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<li>Whenever the association receives notice an owner has filed bankruptcy, immediately send the notice to the association attorney, who should file a claim with the bankruptcy court on behalf of the association. Make sure the claim is filed. For some reason not all attorneys file these claims on behalf of associations.</li>
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<li>The bankruptcy court issues an "automatic stay," meaning the association cannot contact the owner to collect a debt. Leave the collections to the association attorney.</li>
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<li>Owners have a duty to pay assessments as they come due after filing. If the owner does not pay, notify the association attorney, who can file a motion to lift the automatic stay.</li>
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<li>Bankruptcy does not mean the past due assessments cannot be collected. It simply means the association cannot go after the owner personally by garnishing wages or other collection measures. The association can still foreclose on the property "in rem," meaning against the property only, not "in personam," which is against the person.</li>
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<li>Delinquent owners can strip the association lien in a Chapter 13 bankruptcy if the first mortgage exceeds the value of the property. It is important for the association attorney to monitor the case and properly object to lien stripping. There has to be a credible valuation of the property with a thorough survey. </li>
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<li>If the bankruptcy case is dismissed, the automatic stay is lifted, usually 15 days after the order is entered, and the association can pursue it assessments, interest, late fees, attorneys' fees and costs as normal.</li>
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Barbara Billiot Stage, Esq.http://www.blogger.com/profile/10212772964426073518noreply@blogger.com0tag:blogger.com,1999:blog-126759629688276717.post-92130045482364824332019-05-16T11:18:00.004-04:002019-05-16T11:18:52.574-04:00Homeowner Beware -- the Changing Management Company<div style="text-align: justify;">
With the downturn of the housing market in the early 2000s many associations became more budget conscious and looked for community association management firms (CAMs) who would provide the same services for less money. Over the years many associations have continued to change management companies as they try to find the right fit. This has led to a bigger problem as a waive of homeowners become past due in their assessments as a result of sending payments to the former CAM firm. Unfortunately, the associations are not responsible for homeowners sending payments to the wrong CAM firm and the responsibility is squarely on the homeowner.</div>
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The issue is the notice of a change of CAM firms and the change of address to send payments is sent to homeowners by the new CAM firm. Many of us have become frustrated with the amount of junk mail we receive and tend to toss mail from companies we do not do business with and are unfamiliar to us. A good many of these notices are tossed without the owner opening the letter.</div>
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My tip for staying out of collections with the association attorney is to make sure you open any letter you receive from any management firm. Quite a few use "association management" or "community management" in their name, but quite a few do not. If the homeowner does not send payment to the correct address it ends up being an expensive lesson because the homeowner is liable for all attorneys' fees, costs, interest and late fees. Any payments submitted for less than the full amount are applied to interest and late fees first, then attorneys' fees and costs, with any remaining funds applied to assessments last. If homeowner does not pay in full the homeowner will always be past due and subject to lien and/or foreclosure of your home.</div>
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Another tip -- do not try to circumvent the process by paying the association directly once you receive a letter from the association attorney. This will only increase the attorneys' fees you owe. The attorney will spend time communicating with the association about the payment and the homeowner will again be responsible for those fees.</div>
Barbara Billiot Stage, Esq.http://www.blogger.com/profile/10212772964426073518noreply@blogger.com1tag:blogger.com,1999:blog-126759629688276717.post-85556496755826673002019-04-04T08:25:00.000-04:002019-04-04T08:25:09.883-04:00Transparency in Community Associations<div style="text-align: justify;">
It's been quite the busy year so far, so I apologize my blog posts have been few and far between. Trying to make a difference in Florida community associations is a major task, but comes with some rewards. Our firm was again a winner of the Florida Community Association Journal's Readers' Choice Awards.</div>
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The topic for today's blog is transparency. Transparency is a good thing. Associations should recognize if they want their members to pay their assessments on time, keep their property maintained and volunteer to help the community, then transparency is the place to start. The Florida Legislature has started pushing for this with the recent legislative updates to the Condominium Act, Chapter 718, Florida Statutes, by requiring condominium associations with 150 units or more to have a website and post a good number of the official records on the website. This statute has not been enacted in Chapter 720 governing homeowner associations, but maybe we will see this in the future.</div>
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Some of the biggest complaints I hear from homeowners are about transparency -- the HOA will not provide them copies of the records, the records are not easily obtained, the HOA is hiding something. Now I will be the first to admit this is a red flag for me and I suspect something fishy is going on with the money if the HOA is fighting too hard to keep the members from seeing the financials. I also recognize some board members do not understand their duties, do not know what records to keep or how to keep them, which records can be disclosed and not disclosed, or how to set up a website to store the documents so members can see them without going through the certified letter, return receipt process. Those are the HOAs I am eager to represent so I can train their board members on the right protocol. </div>
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The homeowners need to understand the HOA has no duty to respond to a request to send copies to them. There is a duty to provide access to the official records and allow the members to make copies at the inspection. </div>
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Often this request makes even honest board members suspicious. It's only natural to get defensive when a request is received and perceived as an attempt to catch you doing something wrong. And board members make mistakes while homeowners tend to accuse them of intentional wrong-doing. If everyone would just be respectful of each other and act in a civil manner a good number of these disputes would not even be disputes.</div>
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<li>HOAs put your official records on a website if possible or set up one of the free software applications like Google Docs or Dropbox to share documents with members. Not only is it easier, but it takes out the possibility of confrontations if one side just can't be civil and respectful.</li>
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<li>Homeowners use the certified letter, return receipt in order to obtain access to records so that you document your request and everyone knows the deadline (10 business days from the date the receipt is signed). Also, make your request clear and if possible exact. Asking for "all official records" is your legal right, but it is creates some difficulties because the HOA may have boxes and boxes of records which you will have to go through and may be required to pay for a management person to assist in going through with you. In addition, it comes across as a fishing expedition and like all fishing trips, you may have to keep casting lots of times before you get the fish you want. If you are looking for a specific financial transaction, narrow down the description of your request.</li>
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<li>HOAs remember you cannot ask the homeowner why they want the document.</li>
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<li>Everyone keep in mind the HOA does not have to produce a document it does not have. This means no creating special reports if the reports are not used in the normal course of running the HOA. If there is a document the HOA should have and can reasonably obtain it without any undue hardship, then the HOA should get it after the first request so it is available should a second request be made for that document.</li>
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Barbara Billiot Stage, Esq.http://www.blogger.com/profile/10212772964426073518noreply@blogger.com0tag:blogger.com,1999:blog-126759629688276717.post-1717198980882910452019-02-13T14:13:00.000-05:002019-02-13T14:13:20.889-05:00Working with an Attorney to Solve Your HOA HorrorEveryday I receive calls from homeowners with horrific stories of how they are being treated or things their association is doing which violates state law. If I didn't have my assistant running interference I would be on the phone all day and not working, i.e., making any money to keep the firm going. Most people get upset when they find out we don't offer free consultations or they can't speak to me to ask "just one question." <br />
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I would love to provide everyone with free help, but then I would be out of business before the end of the month. Free advice is not something lawyers should give out. While the person asking means well, they are only providing limited facts, which can change the answer had I known all the facts. Even worse, if someone misunderstands our advice, acts on what they think I said, and it doesn't turn out well, they will want to sue me for malpractice.<br />
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The reality of the situation is these cases do not qualify for a contingency fee arrangement (pay only if you win) because no one was physically hurt (in most cases) and even if you win you are only entitled to reasonable attorneys' fees, which is not usually 100% of your attorneys' fees. It's not that our fees aren't reasonable. Judges just do not tend to award fees for items like excessive telephone calls between the attorney and the client because the client initiates lots of calls (what the judges call "excessive hand-holding"), and travel time to and from the courthouse, just to give a few examples.<br />
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This leaves the homeowner faced with paying an attorney their hourly rate as the work is performed. Unfortunately, most homeowners cannot afford this. Even if they could, is it wise to spend upwards of $100,000 fighting over your landscaping or attorneys' fees for past due assessments? For some I can tell you the answer is "yes!" For others I can tell you they either do not want to spend the money or cannot even afford it. The associations count on most people not being able to afford it or not wanting to risk this amount of money. Even worse yet, if the owner loses (and someone has to lose), the owner is faced with reimbursing the association its reasonable attorneys' fees, making it less likely an owner will sue their association.<br />
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My advice, as I have stated over and over again, is to read your governing documents (Declarations, bylaws, articles of incorporation, rules and regulations) from the first page to the last page and commit them to memory so you don't risk violating the restrictions and you know your rights. Also, read the chapter of the Florida Statutes governing your association (Chapter 718 for condominiums and Chapter 720 for homeowner associations). Finally, GO TO MEETINGS!!! If no one is watching then no one is accountable. It's very easy for boards to take a short cut in their duties if no one cares. Then one short cut leads to more short cuts.<br />
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If all else fails, gather your evidence carefully. Submit those requests to inspect the official records and when you go to the records inspection make sure you make readable copies. Use a scanning program on your phone or tablet. Pictures are quick and easy but often distorted and useless. Go to meetings and audio or videotape them. Take photographs and videos of the community if the issue involves conditions around the community. Make sure you bring these to any attorney you hire to represent you or even if you are just paying for a consultation.Barbara Billiot Stage, Esq.http://www.blogger.com/profile/10212772964426073518noreply@blogger.com0tag:blogger.com,1999:blog-126759629688276717.post-41313191268649119122019-02-04T18:54:00.000-05:002019-02-04T18:54:29.360-05:00The Marketable Record Title Act ("MRTA")<div style="text-align: justify;">
There's been lots of discussions regarding the Marketable Record Title Act ("MRTA") lately with some of the most back and forth discussions coming from the Real Property, Probate and Trust Law ("RPPTL") section of the Florida Bar. This piece of legislation is very complicated and it is nothing short of amazing how different facts can produce different legal opinions. </div>
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Recently Chapter 720 of the Florida Statutes, also known as the Homeowners' Association Act ("the Act"), was revised to provide for a more expeditious process to file a Notice of Preservation. The Notice of Preservation is done before the covenants expire against any lots, which is usually the 30th anniversary of the date the covenants were recorded. Note the word "usually." I'll get back to that later.</div>
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The Act also contains a section for revitalization of expired covenants, which is a whole different process from preservation. Once covenants have expired against any lot a homeowners' association is left with only revitalization to try and breathe new life into the old covenants.</div>
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The hard part for most non-lawyers to understand is covenants can expire against just one lot, but not all the lots. It's not as simple as saying the covenants are 30 years old and because no Notice of Preservation was filed, they cease to exist. Covenants can be preserved in a number of ways, including a reference on a recorded plat by the Official Records Book and Page. Covenants recorded on a plat in such a way do not expire which is why I used the word "usually" with caution.</div>
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Covenants can also be preserved in the chain of title to a lot by the recording of a deed which references the covenants by the Official Records Book and Page within the last 30 years. This is why a title search is necessary before an opinion can be rendered whether or not the covenants expired against that particular lot. </div>
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Once covenants have expired against a lot the HOA cannot enforce those covenants against that lot or usually cannot collect assessments from that owner. There's that pesky word "usually" again. The exception to this rule regarding the collection of assessments would be very fact specific and based on a theory of unjust enrichment. An example would be when an association owns the roads and the lot owner uses those roads to get to and from their home. It would be unfair for the owner to use the roads but not be required to contribute to the repair and maintenance of those roads, which is called unjust enrichment. The court would have to make such a determination based on the facts specific to that lot.</div>
Barbara Billiot Stage, Esq.http://www.blogger.com/profile/10212772964426073518noreply@blogger.com0tag:blogger.com,1999:blog-126759629688276717.post-78876756013825254952018-07-10T16:32:00.000-04:002018-07-10T16:32:34.505-04:00Fighting Over Your Lawn and the Florida Friendly Landscaping Statute<div style="text-align: justify;">
We frequently hear about disputes with homeowners who are fighting with their association ("HOA") over their right to Florida-Friendly Landscaping ("FFL"). For those of you who are going "what?," several years ago Florida passed several laws to help conserve water and reduce the amount of chemicals applied to landscaping as an initiative to save our aquifers. The motto of the program is "right plant, right place." Florida tends to go through cycles of droughts, so having a yard which is 90% St. Augustine grass is not always feasible or environmentally friendly. This grass is hard to grow in sandy soils and can require watering up to four times a week during the summer. It also is less tolerant to disease and pests than some of the other alternatives. For more information on FFL, go to www.floridayards.org.</div>
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The purpose of this blog is discuss the litigation aspect of exercising your right to FFL. Chapter 720 of the Florida Statutes provides a homeowners association may not prohibit a homeowner from implementing FFL. This does not mean the homeowner can just rip out the St. Augustine grass and proceed with new landscaping. If the Declarations of Covenants, Conditions and Restrictions ("Declarations" or "CCRs") require approval for landscaping changes, then the homeowner must fill out the application and get approval.<br />
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The biggest obstacle to implementing FFL is there are some bad, bad associations out there who know most homeowners are not going to spend their life savings and three or more years of fighting over their grass. There is no way to estimate how much a case will cost because you never know what the other party is going to do or how aggressive they will fight. Staying in a case all the way through trial could cost $100,000 or more. If the homeowner wins, they are entitled to their reasonable attorneys' fees (not 100%), but if they lose they are on the hook to reimburse the association its reasonable attorneys' fees. Not many people are willing to take this risk or spend the money, especially over grass, so like so many other association disputes, the homeowner backs down. There are no state agencies to hold the associations accountable, so they get away with breaking the law.<br />
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Homeowners sometimes will start litigating, but halfway through they have a change of heart, run out of money, or worse yet, face some type of personal crisis (divorce, death, health issues). The problem is they have to decide if they can stick it out or pay the association its attorneys' fees.</div>
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Stress is another big challenge to defending your right to FFL. Just like all litigation, it's an emotional rollercoaster. There are wins and losses in the battle to the finish line. Sometimes the stress is overwhelming.</div>
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So what's the solution? Better legislation. That's no easy task! Until the Florida Legislature decides to put in a monetary penalty enforceable by a state agency into the FFL statutes, we are at the mercy of the Board of Directors of the associations. There are a number of good associations out there which embrace FFL. Your homework, if you want FFL, is to talk to your board and write your legislators! Now get out there and save the planet!</div>
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Barbara Billiot Stage, Esq.http://www.blogger.com/profile/10212772964426073518noreply@blogger.com0tag:blogger.com,1999:blog-126759629688276717.post-24181568183705271052018-06-01T19:25:00.000-04:002018-06-07T09:24:01.246-04:00Tips & Tricks for Living in a Florida HOA (or COA)<div style="text-align: justify;">
Our firm limits its practice to community association law, which is the technical term for the field of law dealing with homeowner associations (HOAs) and condominium associations (COAs). We also handle work with other types of communities, such as mobile home parks. We represent both associations and individual homeowners, so we see both sides of the problems. Everyday we receive multiple calls from homeowners who have problems with their association, often after they have gotten into trouble. We have blogged about this topic numerous times, but since the laws are revised each year, the advice is subject to change, although not much. More importantly, we feel the need to say it over and over to help as many people as possible.</div>
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<b><i><u>Tip No. 1:</u></i></b></div>
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Read your association documents and not just the ones you were given. You should have Declarations of Covenants, Conditions and Restrictions (aka Decs or CCRs) or a Declaration of Condominium plus Bylaws, Articles of Incorporation and most likely Rules and Regulations or Architectural Guidelines (or both). Go to the official records for your county, by searching on the name of your county and Official Records. Look for a link to search the official records and search for amendments, supplements, modifications, restrictions, bylaws, articles, and notices for any new restrictions or amendments and modifications to the originals, plus any notice of preservation if the original Declarations are approaching thirty years old. This applies to HOAs only, not COAs. Read every document carefully and if you are unsure of the meaning and it may have some effect on you or your property, ask a lawyer to interpret it for you. The best way to stay out of trouble is to know the rules and obey the rules. The best way to keep your association from becoming corrupt is to know the rules and make it obey the rules.</div>
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<b><i><u>Tip No. 2:</u></i></b></div>
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Read the Florida statutes governing your association (Chapter 720 for HOAs, Chapter 718 for COAs and Chapter 723 for mobile home park lot tenancies where you own the home, but rent the lot). Familiarize yourself with the relevant statutes, but do not try to cite them and cram them down your Board of Directors throat, at least not without asking a lawyer if your interpretation of them is correct. Knowing the law helps protect you, but misquoting or misinterpreting the law makes you look like a troublemaker and a nut job. Plus, there is case law (judge's rulings) which interpret the statutes and give them a meaning other than what a layperson would think they mean. Not all judges interpret them the same way and different jurisdictions (courts in different counties) could have different rulings. Even the appellate courts (there are five in Florida) do not always agree on the meaning. The law is not always black and white. That would be too easy.</div>
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<b><i><u>Tip No. 3:</u></i></b></div>
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Never withhold your assessments (aka dues, maintenance fees). The law does not permit it. Here is where the law is black and white. If you do not agree with the way the association is being operated or managed, either recall the Board of Directors, elect new board members, or seek legal advice. Withholding your assessments will result in you being foreclosed on and losing your home.</div>
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<b><i><u>Tip No. 4:</u></i></b></div>
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Always pay your assessments. While this sounds like Tip No. 3, it is not. Often owners experience some kind of hardship, whether it is financial, family, or physical. Your association cannot give you a break because you cannot afford to pay and <u>the courts are not allowed to give you a break either</u>. Inability to pay is not a defense and the association can foreclose on your property a lot faster than any bank. It can also foreclose even though the bank is foreclosing too.<br />
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Always ask permission before making changes to your property. If you are unsure if you need permission, check your documents. If you are not positive whether permission is required or not, ask an attorney to review the documents.<br />
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Never proceed with an improvement if your application has been denied -- even if you think the association is wrong. The law requires you to get a court order, called a declaratory judgment, determining who is right and who is wrong. Proceeding despite a denial will just result in a lawsuit against you.<br />
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Always keep you property maintained. The courts cannot consider financial hardship. When you purchased a property in an association, you agreed to keep it maintained. The excuse you were unaware there was an association is not a defense.<br />
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Participate in meetings and even campaign to be a board member. Get your neighbors involved. If no one is watching what is going on it is very easy for an association to become a corrupt organization. If you do not agree with the way the association is being operated and managed, become a board member or recall the Board of Directors. Legal fights are expensive. Volunteering is not.<br />
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<u style="font-style: italic; font-weight: bold;">Tip No. 9:</u> Whenever you apply to your Architectural Review Committee (ACC or ARB), save a copy and when you get it back approved, save that copy FOREVER. More importantly, make sure you get it back.</div>
Barbara Billiot Stage, Esq.http://www.blogger.com/profile/10212772964426073518noreply@blogger.com3tag:blogger.com,1999:blog-126759629688276717.post-49066367543976145182018-05-07T12:41:00.002-04:002018-05-07T12:41:38.939-04:00Helpful Tips to Fight Back with Your HOAGreat article: http://www.ccfj.net/HOAgen8Things.html<br />
<br />Barbara Billiot Stage, Esq.http://www.blogger.com/profile/10212772964426073518noreply@blogger.com0tag:blogger.com,1999:blog-126759629688276717.post-65778077813280336532018-04-27T14:05:00.000-04:002018-04-27T14:05:12.512-04:00The Importance of Insurance for Condominium Owners<div style="text-align: justify;">
I continue to be amazed by the number of condominium owners who contact me after they have lost everything in a disaster and had no insurance to cover their personal property and the improvements in their unit, such as kitchen cabinets, or to protect them from liability for damages to adjacent units. The "this will never happen to me" mentality can result in financial devastation.</div>
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If a fire were to destroy everything, the condo association ("COA") is not liable, in most instances, to fully restore your unit, especially if the fire is caused by another owner or tenant. In most instances, the COA is only liable to restore the unit to bare floors, walls and ceilings -- no fixtures, no cabinets, no floor coverings, not even paint on the walls. This scenario gets even worse if your the unit owner liable for the fire when an appliance or electrical outlet short circuits. You could be on the receiving end of a lawsuit by every other unit owner affected and their insurance companies. </div>
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The same problems would occur if there is a water leak, which are very common in condominiums -- toilets overflow, air conditioning units leak, and pipes under the sink can fail. In this scenario, not only are you liable for your damages, and your tenant if you rent, but you are also liable for any water leaking into or flooding an adjacent unit.</div>
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Get that insurance!</div>
Barbara Billiot Stage, Esq.http://www.blogger.com/profile/10212772964426073518noreply@blogger.com0tag:blogger.com,1999:blog-126759629688276717.post-34016638467359866262018-04-19T09:47:00.000-04:002018-04-19T09:47:50.867-04:002018 Legislative Update - Chapter 718 The Condominium ActHere are the 2018 Legislative Updates to the Condominium Act, Chapter 718, with my comments in <b><i>bold italics:</i></b><br />
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<li style="text-align: justify;">FS 718.303(3)(b), which is the statute authorizing fines and suspensions for violations, has been revised to mirror Chapter 720, the Homeowner Association Act, and provides a fine cannot be imposed unless the unit owner is given at least fourteen (14) days notice a hearing will be conducted to impose a fine and the hearing will be conducted by a committee composed of no less than three (3) members who are not directors, officers or employees of the association or the parent, spouse, child, brother or sister of a director, officer or employee of the association. The actions of the committee are limited to approving or rejecting the proposed fine and any imposed fine must be paid within five (5) days after the hearing. The association must provide written notice to the unit owner of the fine or suspension. Tenants, guests and invitees of the unit owner are allowed to attend the hearing.</li>
<li style="text-align: justify;">FS 718.111(12) has been amended to provide the condominium association to comply with a request to inspect the official records within ten (10) business days from the receipt of a request, mirroring the Homeowner Association Act. The previous version required the request to be completed within five (5) days, but the penalty did not trigger until the 11th day. This statute was also revised to require electronic records for electronic voting to be kept for one year.</li>
<li style="text-align: justify;">FS 718.112(c)(1) was amended to allow associations to post a meeting notices and agendas on the association's website and to email the notice to members with a link to the website for those members who consent to electronic notices. This is in additional the other requirements for posting notices in common areas or mailing notices. In addition, this statute was revised to require notices of meetings to discuss regular or special assessments <u>must</u> include provide a description of the purpose of the assessment and the estimated cost.</li>
<li style="text-align: justify;">FS 718.112(2)(c)(6) was amended to make owners who consent to email notices responsible for removing or disabling any email filters which might prevent the receipt of the notice. In other words, if the owner does not receive the email because it was sent to a junk folder or deleted by the email server, the association is not responsible.</li>
<li style="text-align: justify;">FS 718.112(g) requires condominium associations with 150 units or more to post the official records on a website by January 1, 2019. The requirement to post a summary of bids has been changed to allow the posting of actual bids and only those in excess of $500. The requirement to post proposed financial reports to be discussed at meetings has been changed to monthly income/expense statements to be considered at a meeting. Language has been added which would not invalidate any action or decision at a meeting for the failure to post the required information.</li>
<li style="text-align: justify;">FS 718.111(12)(b) has been amended to require certain documents be retained permanently, such as plans, permits, warranties, condo documents, rules, and meeting minutes. Language was also added to exempt the association or its agents from liability for accidental disclosure of confidential information. This means it is clear there is liability for intentional disclosure.</li>
<li style="text-align: justify;">FS 718.111(13)(e) provides a penalty if the association fails to deliver the annual financial report to the unit owner after a request is made and the Division of Condominiums also orders the association to deliver the report. The penalty states the association may not waive the reporting requirement for the year of the request and the following fiscal year.</li>
<li style="text-align: justify;">FS 718.112(2)(a)(1) requires a condominium association with five (5) or few units have at least three board members.</li>
<li style="text-align: justify;">FS 718.112(2)(d)(2) has been revised to allow board members to serve more than one (1) year terms if authorized by the bylaws or article of incorporation. No board member can serve more than eight (8) consecutive years unless approved by two-thirds (2/3s) vote of all the unit owners casting votes. <b><i>Despite the overwhelming amount of discussion outlining the need to determine if the eight (8) year limit applies when the statute was enacted July 1, 2017 or is retroactive, the Florida Legislature failed to clarify this issue. The Division of Condominiums has indicated it would interpret the eight (8) year limit to start when the statute is enacted, but it has yet to be tested.</i></b></li>
<li style="text-align: justify;">FS 718.112(2)(d)(3) requires the board of directors to adopt a rule designating a specific place where meeting notices will be posted on condominium property. <b><i>Recent court rulings have required associations to record a resolution of the adopted rule in the county records and to mail a copy to owners within thirty (30) days of recording the rule.</i></b></li>
<li style="text-align: justify;">FS 718.112(2)(j) provides a board member's recall is effective immediately at the conclusion of the board meeting to certify or reject the recall if the recall is deemed facially valid and the recall certified. The board member will have ten (10) days to turnover all association documents. The same provisions are true used if the recall is by written agreement. If the association fails to hold the board meeting within five (5) days of the unit owner recall meeting or the service of the written recall, or fails to certify the recall, the unit owner representative may file an arbitration petition with the Division of Condominiums challenging the board's failure to act or failure to certify the recall. A board member who is recalled may file a petition to challenge the recall. If the arbitrator reinstates the board member with a finding the recall was invalid, the petitioning board member is entitled to recover attorneys' fees and costs from the unit owners. If the unit owners prevail and the arbitrator finds the board member's challenge to the recall was frivolous, the unit owners may recover attorneys' fees and costs from the petitioning board member.</li>
<li style="text-align: justify;">FS 718.113(2)(a) was revised to require unit owner approval be obtained <i style="font-weight: bold;">before</i> material alterations or substantial changes are made to common areas.</li>
<li style="text-align: justify;">FS 718.113(8) was added to allow the installation of electronic vehicle charging stations <b><i>within the unit owners limited common element parking area</i></b> <i style="font-weight: bold;">as a matter of public policy.</i> The unit owner may not cause irreparable damage to the condominium property and is responsible for installation and payment of a separate meter and the payment of the electricity as well as maintenance, repair and hazard and liability insurance for the charging station. The unit owner is responsible for the removal of the charging station when it is no longer required. The unit owner is also responsible to the association in any increased costs to its insurance for the use and installation of a charging station. <b><i>The statute does not address the right to a charging station if the unit owner does not have a limited common element parking area. </i></b></li>
<li style="text-align: justify;">FS 718.3026 and 718.3027 were combined. These were the statutes governing conflicts of interest, which created much confusion in 2017. The only change to the combined statutes requires 2/3's of the board of directors to approve any contract or transaction between the director and the association and the director with the conflict must abstain from voting.</li>
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Barbara Billiot Stage, Esq.http://www.blogger.com/profile/10212772964426073518noreply@blogger.com5tag:blogger.com,1999:blog-126759629688276717.post-68245610295106949942018-04-17T16:12:00.000-04:002018-04-18T09:23:34.971-04:002018 Legislative Update - Chapter 720 Homeowners' Association ActHere are the updates to the Homeowners Association Act, with my comments in <b><i>bold italics, </i></b>which will go into effect July 1, 2018:<br />
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<li style="text-align: justify;">FS 720.303(2)(c)(1) was revised to allow electronic notices by facsimile if the member consents to electronic notices. Previously electronic notices were limited to email addresses only.</li>
<li style="text-align: justify;">FS 720.306(1)(e) was added to require the underline/strike-through method be used for proposed amendments to documents (Declarations, Bylaws, Articles of Incorporation, Rules & Regulations) to show what language is being added (underline) or deleted (strike-through). If the amendments are so extensive the reader could be confused, the new language must be proceeded by the disclaimer "Substantial rewording. See governing documents for current text." This statute also provides an amendment becomes effective when it is recorded in the county records.</li>
<li style="text-align: justify;">FS 720.306(1)(f) was to provide an immaterial error or omission in the amendment process will not invalidate an otherwise properly adopted amendment. <b><i>Without a definition of "immaterial" we can expect this to be a source of litigation.</i></b></li>
<li style="text-align: justify;">FS 720.306(9)(a) was revised to authorize HOAs to forgo an election if the number of vacancies for the board of directors equals or exceeds the number of candidates provided nominations from the floor are not required by statute or the bylaws and write-in candidates are not permitted. This allows the seating of candidates even if a quorum is not attained at the annual meeting. <b><i>Watch out for HOAs which have nominating committees without a provision in the bylaws authorizing nominations from the floor. The HOA could control the outcome of the election by nominating only candidates they like and not nominating more candidates than vacancies.</i></b></li>
<li style="text-align: justify;">FS 720.3085(3)(B) has been revised to require HOAs to accept all payments from owners <i style="font-weight: bold;">and</i> allows the HOA to ignore any restrictive endorsements or letters accompanying the payment stating the amount tendered is payment in full.</li>
<li style="text-align: justify;">FS 720.305(2) was amended to provide fines are now due and payable within five (5) days after it is imposed. <b><i>Watch out for HOAs claiming the payment was not timely received or not sending the notice before the fine is due! There is no language providing for a deadline to provide the notice.</i></b></li>
<li style="text-align: justify;">FS 720.303(2) has been amended to allow board members to discuss board business by email, but board members may not vote by email.</li>
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Additional updates for 2018 were made to the Marketable Record Title Act ("MRTA") which changes the procedures for preservation. The required 2/3s vote of the board and the mailing of the notice of preservation to members has been deleted. The failure to index the notice of preservation against the lots of the members will not affect its validity. </div>
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Likewise the revitalization statute in FS 720.403-720.407 has been revised to remove the requirement a vote for revitalization is done at a meeting and allowing revitalization to be done in writing. An owner has one year after expiration to file a court action exempting their property from the revitalization process.</div>
Barbara Billiot Stage, Esq.http://www.blogger.com/profile/10212772964426073518noreply@blogger.com0tag:blogger.com,1999:blog-126759629688276717.post-31127963565268594252018-04-04T08:51:00.000-04:002018-04-04T08:55:02.989-04:00Winning the Assessment Game<div style="text-align: justify;">
A large majority of my practice involves clients who hire me to help them resolve their issues with past due assessments. Most people do not realize you cannot withhold assessments for any reason, including financial hardship, divorce, death or being dissatisfied with the way the association is being managed. Once an owner is past due in assessments, the debt snowballs into an amount which is difficult to pay and trying to get a payoff amount is a moving target with each phone call or email increasing the balance. This is because state law favors the association and makes the owner responsible for all legal fees and costs to collect past due assessments. It is a necessary evil.</div>
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So what do you do? Simple answer: pay your assessments in advance. Pay them at least two installments in advance and check your account with the association on a regular basis to make sure you are current. Most management companies now have online access for owners to check their balances.</div>
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Do not use an automatic draft from the management company which takes your money out of your account for you. Use the bill paying services your bank offers to send money to creditors so you are in control of the funds. At least one management company I will not name has expiration dates on the automatic draft documents they use and the automatic draft stops after one year, requiring the owner to renew it. If the owner is not paying attention to the email notices advising them it is time to renew, the automatic drafts stop and the owner is quickly in collections.</div>
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If you mail in your payment, you run the risk of the mail not being delivered or management losing your payment, which the management company will deny. It is the owner's responsibility to make sure payment is delivered. This would mean sending it by certified mail to track delivery, which can be expensive. If you pay in person make sure you get a receipt.</div>
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What you should not do? Here's a list:</div>
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1. Do not withhold payment because you did not receive a notice or a coupon. You purchased property in a community with an association and the law states that is your notice of a duty to pay assessments. If you do not know the amount of the assessment, contact the management company or the board of directors and find out. At the very least pay the amount of the last assessment, but be aware you will still incur interest and late fees if the full amount is not paid.</div>
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2. Do not try to pay the assessment only once it is past due. Any payments are applied to interest and late fees first, attorneys' fees and costs next, with any leftover funds applied to assessments. You will always be past due in assessments if you do not remit the full amount.</div>
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3. Do not try to avoid attorneys' fees by paying the association directly. This will only increase your legal fees and delay posting the amount to your account because the association will send your payment to the attorney. You are then billed by the attorney for processing partial payments. Once you are in collections, deal with the attorney directly.</div>
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4. Do not call, write or email the attorney thinking you will increase legal fees for the association as a way to get even. State law makes the owner liable for these communications. You are increasing your own legal fees, not the association's.</div>
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What should you do if your in collections already? Submit in writing, a request for a payment plan if you cannot afford to pay the amount in full. The average payment plan is six months to a year, so do not ask for long-term payment plans. Some associations will approve 18 months, but it's not the norm. Be prepared to pay the legal fees for preparing the plan and for processing the payments. If you cannot afford the payment plan, consult with a lawyer to advise you of your options, but do not ignore the collection letters. An association can foreclose on your property much faster than a bank.</div>
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Barbara Billiot Stage, Esq.http://www.blogger.com/profile/10212772964426073518noreply@blogger.com0tag:blogger.com,1999:blog-126759629688276717.post-1470769639755624762018-03-01T17:51:00.001-05:002018-03-01T17:51:35.882-05:00Who Runs the Association -- Management or the Board of Directors?That's an easy answer -- the Board of Directors!!<br />
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Strange how many boards or management companies do not understand this simple concept.<br />
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The management companies are agents of the association. They are not the board of directors and they must follow the wishes of the board of directors, who make decisions by a majority vote. The board of directors relies on the management companies for advice, but if you ask me that's often like asking a refrigerator repairman to fix your automobile. Taking legal advice from a non-lawyer is definitely not a good idea and seeking the advice of an attorney is the best way for the board to protect themselves from personal liability.<br />
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Boards often give management companies the authority to make some decisions on their own, like obtaining services for repairs under $500, or sending out violation letters to homeowners after an inspection. Management companies should not be making board decisions, such as hiring or firing vendors without board approval, sending out intent to lien notices unless a pre-approved policy is in place, or worse yet, sending an owner to the attorney for collections or violations without the approval of the board.<br />
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Some boards give the management companies full discretion to operate and manage the association as they see fit, but I know of at least one instance where that did not work out so well for the association in court. <br />
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If the board members don't want to do their jobs, then turn the job over to someone else! If the management company doesn't want to follow the board's direction, get a new management company. There are a lot of good ones out there, you just have to find them.Barbara Billiot Stage, Esq.http://www.blogger.com/profile/10212772964426073518noreply@blogger.com1tag:blogger.com,1999:blog-126759629688276717.post-43668688950650914902018-02-24T09:13:00.002-05:002018-02-24T09:15:30.972-05:00House Bill 841. (2018)Last year’s legislation attempting to give homeowners greater protections hit some bumpy roads when everyone tried to apply the law, most notably the recall statute revisions. It was simply a case of laws with good intentions, but poor wording.<br />
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Any hope at fixing these laws to make them more useful and enforceable is being undermined by House Bill 841. Jan Bergemann of CyberCitizens for Justice took me on a road trip with him to Tallahassee to meet with our elected officials. The sponsor of HB 841 didn’t have time to meet with us (fair enough since we didn’t have an appointment, not so fair since others without appointments seemed to get face time), but we did get to meet with the legislative aide. We spoke passionately about our concerns, but our words fell on deaf ears, as we later learned.<br />
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The full story is in Jan’s blog at <a href="http://www.ccfj.net/CCFJHB841Protest.htm">http://www.ccfj.net/CCFJHB841Protest.htm</a>.<br />
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Please help in defeating this not-so-owner-friendly bill by writing to the politicians. Remember this from a famous comedian - poly means many and ticks means bloodsuckers. Barbara Billiot Stage, Esq.http://www.blogger.com/profile/10212772964426073518noreply@blogger.com0tag:blogger.com,1999:blog-126759629688276717.post-46278195332344684732017-09-06T10:14:00.002-04:002017-09-06T10:14:53.526-04:00Recalls After House Bill 1237<div style="text-align: justify;">
Recently our firm had the experience of representing clients in the first recall arbitration after HB 1237 revised Fla. Stat. 718.112(2)(j), which are the laws governing recalls.</div>
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Unfortunately, the Florida Statutes conflict with the Florida Administrative Code and since the Department of Business and Professional Regulation (DBPR) operates under the Florida Administrative Code (FAC), DBPR declined jurisdiction to hear the case. Even though lawyers are taught in law school the statutes overrule the FAC, the head arbitrator, James Earl, explained he does not have the authority to declare the FAC is invalid and it will be approximately six (6) months before they update the FAC. </div>
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The next step would be to file a state court action for declaratory relief to have a judge rule the FAC is invalid and certify the recall or to challenge the FAC and DBPR in an administrative hearing before the Department of Administrative Hearings. Another option is to file for emergency injunctive relief. While we are fully prepared to do so, there is an election coming up in a couple of months and the issue would be moot.</div>
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This leaves homeowners with a recall process which is completely ineffective if the recalled board members refuse to recognize the recall is "effective immediately" and step down.</div>
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Barbara Billiot Stage, Esq.http://www.blogger.com/profile/10212772964426073518noreply@blogger.com5tag:blogger.com,1999:blog-126759629688276717.post-72127917867344469512017-07-13T15:54:00.000-04:002017-07-13T15:54:14.762-04:00<h1 class="graf graf--h3 graf--leading graf--title" id="d758" name="d758" style="--margin-top-multiplier: 0; background-color: white; color: rgba(0, 0, 0, 0.8); font-family: medium-content-sans-serif-font, "Lucida Grande", "Lucida Sans Unicode", "Lucida Sans", Geneva, Arial, sans-serif; font-size: 40px; letter-spacing: -0.028em; line-height: 1.04; margin: 0px 0px 0px -2.5px;">
Revisions to Florida Laws Regarding Estoppels!</h1>
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It’s that time of year and the Florida Legislature has pass several important revisions to the state laws governing community associations. We will review each of the bills enacted, which were effective July 1, 2017.</div>
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Our first review is of the changes to the estoppel statutes, Fla. Stat. 718.116 (condominiums) and 720.30851 (homeowner associations).</div>
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The big changes are the requirement to designate a person to receive estoppels, through an adopted resolution, and post it on the association’s website as well as to respond to any estoppel request within ten (10) days of receipt and a cap on the fees charged to prepare estoppel certificates. The revisions create some confusions because it now requires associations to have a mandatory website even though it does not out right state this (how can you post it on the website unless you have the website). In fact, Chapter 718 now requires condominium associations to have a website by July 1, 2018, but requires the associations to post the contact information on the website by July 1, 2017. Hmmm…..</div>
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Previously, estoppel requests were to be completed within fifteen (15) days, but the response time is now reduced to ten (10) days. Additionally, estoppel certificates must be valid for at least thirty (30) days if submitted electronically and thirty-five (35) days if mailed.</div>
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With the revisions come a whole new set of requirements such as providing the unit or lot number in addition to the property address, parking or garage space numbers (for condominiums), the name and address of the association attorney if the account is delinquent, the fee for preparing the estoppel certificate, the amount of the assessments and frequency of payments, an itemized list of all monies owed (assessments, special assessments and other monetary obligations), whether or not there are capital contributions, transfer fees, resale fees or any other type of fee charged for transferring ownership, if there has been any notice to the owner of violations, if board approval is required for the transfer of the property, if there is any right of first refusal, a list of any other associations with contact information which the property is a member, and the name and contact information for any insurance maintained by the association.</div>
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The revisions also clarify no fee can be charged if the association discovers an error in the estoppel certificate and needs to amend it.</div>
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Rounding off the revisions is a cap on the fees allowed to be charged for preparing estoppel certificates, which are limited to $250.00 if there are no delinquencies and $400.00 if there are delinquencies. The association may also charge an extra $100.00 for an expedited estoppel. There is also a sliding scale of caps for estoppel requests for multiple units owned by one person or entity.</div>
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The last important revision is the right to damages and attorneys’ fees if the buyer requests a refund because the closing did not occur and the association fails to refund the estoppel fee within thirty (30) days.</div>
Barbara Billiot Stage, Esq.http://www.blogger.com/profile/10212772964426073518noreply@blogger.com1tag:blogger.com,1999:blog-126759629688276717.post-30522289168549505942017-02-20T18:13:00.001-05:002017-02-20T18:13:22.810-05:00Huge Win for Unit Owners<div style="text-align: justify;">
After several years of arbitration, a trial de novo, both of which our clients won, and an appeal to the Second District Court of Appeals, my clients have been vindicated. The 2nd DCA came back, rather quickly I might add, with a Per Curiam decision affirming our clients' Final Summary Judgment. For those of you who are not up with the legal terms, Final Summary Judgment is when the court rules your client is entitled to judgment as a matter of law and a trial is not necessary. A Per Curiam decision is one without an opinion. When the appellate courts issue these, it means the losing party cannot appeal to the Florida Supreme Court.</div>
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<br /></div>
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It was a long, hard and stressful road for my clients, who purchased their property in 2013 and received permission to replace the rotted wooden boards on their deck with composite boards. Shortly afterwards, the association accused them of making the deck bigger than the original 1993 deck. This was surprising since the community association manager (CAM), board members, and committee members visited the deck during renovations and never said a word!</div>
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<br /></div>
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The association went as far as to report the clients to Code Enforcement to try and force the removal of the deck. Prior to arbitration, the association demanded complete removal of the approximately 25' x 29' deck. I say approximate because there was never anything in the Declaration of Condominium or Bylaws stating how decks are to be measured and the CAM testified at arbitration there could be 6" to 1' difference depending on the starting and ending points of the measurements.</div>
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After 2-1/2 days of arbitration, the arbitrator for the Department of Business & Professional Regulations ruled the association had no evidence of the size of the original deck and the only person to ever measure the deck was the contractor, who the arbitrator found to be credible.</div>
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Not to be out done, the association filed for a trial de novo without having any new evidence to support their allegations, claiming basically they thought the arbitrator did not know what she was doing. Our clients were awarded summary judgment after the association attempted to take the depositions of the whole building division for Polk County. I guess their position was our clients were not entitled to their permit, but I would think that would be an issue between the association and the county, not with my clients, who received a permit for their deck.</div>
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Half way through the depositions, when I knew I had enough to prove the depositions would not reveal any new evidence or create a genuine dispute of material facts, I filed for summary judgment, which was granted. The judge found there was no evidence to indicate our clients had increased the size of the deck.</div>
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<br /></div>
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The association seemed more determined than ever, claiming they would appeal all the way to the Supreme Court. On appeal, the association attempted to make new arguments with issues not brought up during arbitration or the trial de novo. That is just simply not allowed. Worse yet, the association attorney did not file the transcripts from the summary judgment hearing, so he had no record of any arguments he may have made and could not prove he preserved any objections for appeal. For the record, the trial judge asked him three times if he had any other evidence to present and finally got the association attorney to admit he did not.</div>
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Here we are over three years later -- that's over three years of my clients' lives they will not get back. Over three years of a lot of money spent on legal fees, stress and harassment. Yes, harassment. They, along with myself, were the subject of numerous newsletters with the association even claiming, through their non-board member mouthpiece, my clients were suing the association when the opposite was true. My clients have not been able to enjoy their property since this started in October of 2013. So many unit owners bought into the false reports in the newsletters and harassed my clients for "causing trouble." That's just one of the printable statements. Shame on these people for not listening to both sides. My clients are really nice, hardworking people. Shame on the association for having a power-hungry board, commonly known as Condo Commandos in Florida. You thought having a $650,000 slush fund could lead to a win in any case. Do not think for one second we are not aware of the statements made about the slush fund being for the purposes of discouraging those who are not intimidating into doing as you say.</div>
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Congratulations to my clients and I hope you now get to enjoy your beautiful Florida home.</div>
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Barbara Billiot Stage, Esq.http://www.blogger.com/profile/10212772964426073518noreply@blogger.com5tag:blogger.com,1999:blog-126759629688276717.post-8888235126624034952016-03-31T08:20:00.001-04:002016-03-31T08:20:09.515-04:00Turner v Bulter Farms - Getting A New Board When There Is No Quorum For An Election<div style="text-align: justify;">
A couple of years ago the Florida Legislature passed a bill which allowed homeowner associations to forego elections if there were only enough candidates to fill vacant spots. While I was not sure how the change to Fla. Stat. 720.306(9)(a) would affect elections, weighing the pros and cons of the law, I have to say it has been very beneficial based on a ruling recently by the Department of Business and Professional Regulation ("DBPR") in the arbitration case of <u>Laura Turner v. Butler Farms Homeowners Association, Inc.</u>, DBPR Arb. Case No. 2015-02-8216.</div>
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Ms. Turner was the only person to submit her name for candidacy to the Board of Directors for the association. When there was no quorum at the annual meeting, the three incumbent directors announced they would remain in office. Ms. Turner petitioned DBPR for arbitration of an election dispute and the arbitrator, Leah A. Sims, ruled Ms. Turner was the only board member since the incumbents terms had expired and none of the incumbents had not submitted their names as candidates. </div>
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I think this is a great ruling and congratulate Ms. Turner for taking the initiative to arbitrate the matter. So many homeowners give up because they feel the fight is useless and they will never be able to remove board members who have been entrenched in the board long term.</div>
Barbara Billiot Stage, Esq.http://www.blogger.com/profile/10212772964426073518noreply@blogger.com4tag:blogger.com,1999:blog-126759629688276717.post-45827759789778786582016-02-28T08:41:00.003-05:002016-02-28T08:48:00.839-05:00Board Meetings: How They Should Be Conducted<div style="text-indent: 0px;">
<span style="background-color: rgba(255, 255, 255, 0);"><span class="Number" style="margin: 0px; padding: 0px; text-indent: 13.333333015441895px;"><br /></span></span></div>
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<span style="background-color: rgba(255, 255, 255, 0);"><span class="Number" style="margin: 0px; padding: 0px; text-indent: 13.333333015441895px;">Today's blog is about notice, quorum, the right to speak, the right to record meetings, handling disruptive attendees and meeting minutes.</span></span></div>
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<b><i><u>Notice Requirements:</u></i></b></div>
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<b><i><u><br /></u></i></b></div>
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The notice requirements for a meeting are contained in the Bylaws and/or Articles of Incorporation of the association. Sometimes they are even contained in the Declarations if special notice is required to decide a particular piece of business, such as increases in assessments which require membership approval.</div>
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The Florida Statutes provide a default notice procedures if the documents are silent. The default notice procedures are as follows:</div>
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<ul>
<li>Regular board meetings must be "posted in a conspicuous place in the community at least 48 hours in advance of the meeting, except in an emergency." </li>
</ul>
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<ul>
<li>If notice is not posted, then the association is required to mail notice to each member at least seven (7) days before the meeting.</li>
</ul>
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<ul>
<li>Any meeting in which assessments will be <i style="font-weight: bold;">levied </i>must be noticed with a statement assessments will be considered and the nature of the assessments. This includes levying annual assessments, even if assessments are not increased. While this sentence in the statute does not state 14 days advanced notice is required, it is in the same subsection that requires 14 days notice for meetings to consider special assessments and amendments to rules affecting parcel use. My opinion is to provide 14 days advance notice and that seems to be the industry standard.</li>
</ul>
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<ul>
<li>Any meeting in which special assessments will be considered must be noticed by mailing the notice to each homeowner at least 14 days in advance of the meeting and the notice must state assessments will be considered and the nature of the assessment. This includes levying annual assessments, even if assessments are not increased.</li>
</ul>
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<ul>
<li>Any meeting in which amendments to rules affecting parcel use must be noticed by mailing the notice to each homeowner at least 14 days in advance of the meeting</li>
</ul>
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<span style="background-color: rgba(255, 255, 255, 0);"><span class="Text Intro Justify" style="display: inline; margin: 0px; padding: 0.1em; text-align: justify; text-indent: 13.333333015441895px;" xml:space="preserve"><b><i><u>Quorum Requirements:</u></i></b></span></span><br />
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Whenever a majority of the board meets, even if it is at a picnic, and discusses board business, it is a board meeting and must be noticed and open to all members. </div>
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For membership meetings, the quorum is the number of owners listed in the bylaws or other association document. Florida Statutes provide a default of 30% if the documents do not provide for a quorum.<br />
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<b><i><u>Members' Right to Speak, Right to Record Meetings and Disruptive Attendees:</u></i></b><br />
<b><i><u><br /></u></i></b>
It is truly amazing how many associations try to circumvent these two rights. Either they are misinformed, are unaware of the law regarding these rights, or have gone rogue.<br />
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Every member has the right to speak at least three minutes at a meeting on any item on the agenda. This law used to have requirements the member had to provide advance notice, which meant the members were not given an opportunity to speak if the agenda was not published in advance. The laws have changed. The board can adopt reasonable rules on how to comply with this and control disruptions, but not to the point members are denied their rights. Many associations still use the technique of holding all member commentary until the end of the meeting in an open forum, but this could be troublesome eventually. If there is a topic which has generated a lot of controversy, the members should be allowed to speak as long as they remain orderly. Robert's Rules of Order help in these situations. Appointing a parliamentarian to keep the meeting in order is helpful too. If you do not want your meetings to go on all night, plan them out specifically. If you know you have a controversial topic, allow a specific amount of time to discuss it. If you know you have someone who will want to talk three minutes on every topic, limit the number of times a member can speak, but make it reasonable. Use a timer for the three minutes so no one will accuse anyone of not allowing the full three minutes. If the discussion is still heated and taking quite a bit of time, consider tabling the topic for a special meeting and plan for a longer amount of time to discuss. If the topic is that important to the membership, the board should be paying attention to their concerns.<br />
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NOTE: Any changes to the way meetings are conducted, including adopting Robert's Rules of Order, should be adopted as a policy by the board through a resolution, which can be written, voted upon, recorded in the public records if necessary, and published to the membership. This will avoid any accusations of making up the rules as you go along.<br />
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Florida law allows members to record board meetings. IT IS THE LAW! They can use either video or audio recording and do not have to provide notice the meetings are being recorded. There is no expectation of privacy in an association meeting and board members do not have to give their consent. Assume all meetings are being recorded. The board of directors can adopt rules to make sure any cameras are not interfering with the meeting, such as blocking the view of other members. Caution should be taken to not create a rule under the right to adopt rules just to make sure the members do not get a good recording and especially do not adopt a rule requiring the member to provide notice the meeting will be recorded. Do not put your association at risk of a lawsuit for treading on the members rights. They have very few, but the few they have they will fight aggressively to protect. If the board is not doing anything illegal or unethical there should be no concern with meetings being recorded.<br />
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<span style="background-color: rgba(255, 255, 255, 0);"><span class="Number" style="margin: 0px; padding: 0px; text-indent: 13.3333px;">(10) </span><span class="Text Intro Justify" style="display: inline; margin: 0px; padding: 0.1em; text-indent: 13.3333px;" xml:space="preserve">RECORDING.<span class="EmDash" style="margin: 0px; padding: 0px;">—</span>Any parcel owner may tape record or videotape meetings of the board of directors and meetings of the members. The board of directors of the association may adopt reasonable rules governing the taping of meetings of the board and the membership.</span></span></div>
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While an association has the right to remove a member from a meeting if they are being too disruptive, the trend to have law enforcement issue a trespass warning against an owner in order to keep them out of all future meetings is just plain dumb. All meetings must be open to all members, so if an association trespasses an owner from their clubhouse, then the association will need to move the meeting to another location where the owner can attend. Putting up physical barriers to prevent owners from attending is not a good idea either, especially the disabled. You would think common sense would not make this an issue, but it became necessary for one homeowner to actually lobby our elected officials to amend Fla. Stat. 720.303(2) to include <b>"<span style="background-color: white; color: navy; font-family: "trebuchet ms"; font-size: 13.3333px; line-height: 20px; text-indent: 13.3333px;">A meeting of the board must be held at a location that is accessible to a physically handicapped person if requested by a physically handicapped person who has a right to attend the meeting." </span></b><span style="text-indent: 13.3333px;">His association spent over $100,000 in litigation costs because the association refused to hold any meetings where he could attend in his wheelchair. He wasn't even asking for all meetings to be moved, just when there was a agenda item that was important to him.</span><br />
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<b><i><u> Meeting Minutes:</u></i></b><br />
<b><i><u><br /></u></i></b>
This is a very important topic because all too often the minutes do not reflect enough information about the meeting. Each topic discussed, whether it was on the agenda or not, should be reflected in the minutes. Each board vote should list specifically how the board members voted by name. The only exception is if a vote is unanimous, which could be stated as "motion passed by unanimous vote." Each item should have a motion to present the item for a vote and a second.<br />
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Now some words of caution. The Florida Statutes have been revised to allow board members to "communicate" by email, but votes may not be taken by email. While this has always been the method used to provide information to board members about an upcoming agenda item, there has been a rise in the number of associations who obviously are discussing agenda items in detail in emails and then simply voting on the item at a meeting without discussion, thus circumventing the rights of members to be informed about the details of an issue. This will certainly cause a rise in litigation and is not in the best interest of the association.<br />
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The bottom line is board members and owners alike need to use common sense. Board members should not look for creative ways to hide things from the owners and owners need to communicate in a reasonable manner at meetings. Shouting at someone will not get them to agree with you.</div>
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Barbara Billiot Stage, Esq.http://www.blogger.com/profile/10212772964426073518noreply@blogger.com0tag:blogger.com,1999:blog-126759629688276717.post-18893446997273114192016-01-15T08:21:00.003-05:002016-01-15T08:21:56.253-05:002016 Senate Bill 7031 - HOA Declarations Exemption from Marketable Record Title ActI personally think this bill is a bad idea. We have enough problems with HOAs which are governed by ancient documents written decades ago!<br />
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<a href="https://www.flsenate.gov/Session/Bill/2016/7031/BillText/Filed/PDF">Bill Text Senate Bill 7031</a><br />
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Proposed language:<br />
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712.03 Exceptions to marketability.—Such marketable record
33 title shall not affect or extinguish the following rights:
34 (10) A covenant or restriction of a homeowners'
35 association or mandatory property owners' association.Barbara Billiot Stage, Esq.http://www.blogger.com/profile/10212772964426073518noreply@blogger.com2tag:blogger.com,1999:blog-126759629688276717.post-65728945894522669992016-01-05T11:04:00.001-05:002016-01-05T11:04:15.175-05:00HOA Reform Bill -- Please show your supportYou can view the bill in its entirety at:<br /><br />
<a href="http://www.hoareformbill.net/PB16SB1122OR.pdf">http://www.hoareformbill.net/PB16SB1122OR.pdf</a><br />
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It is sponsored by Senator Alan Hays.Barbara Billiot Stage, Esq.http://www.blogger.com/profile/10212772964426073518noreply@blogger.com2tag:blogger.com,1999:blog-126759629688276717.post-41474651339177186972015-12-05T08:49:00.002-05:002015-12-05T08:51:02.106-05:00My Email Regarding HOA Reform Bill and Affordable Legal RepresentationI wrote this to Senator Alan Hayes, House Representative Mike La Rosa, Florida Bar President Ramon Abadin and my friend, Jan Bergemann of Cyber Citizens for Justice (www.ccfj.net):<br />
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<w:LsdException Locked="false" Priority="39" SemiHidden="true"
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<w:LsdException Locked="false" Priority="39" SemiHidden="true"
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<w:LsdException Locked="false" Priority="39" SemiHidden="true"
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<w:LsdException Locked="false" Priority="39" SemiHidden="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" Priority="35" SemiHidden="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" Priority="10" QFormat="true" Name="Title"/>
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" Priority="1" SemiHidden="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" SemiHidden="true" UnhideWhenUsed="true"
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<w:LsdException Locked="false" Priority="39" Name="Table Grid"/>
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<w:LsdException Locked="false" Priority="62" Name="Light Grid"/>
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<w:LsdException Locked="false" Priority="65" Name="Medium List 1"/>
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<w:LsdException Locked="false" Priority="73" Name="Colorful Grid"/>
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<w:LsdException Locked="false" Priority="19" QFormat="true"
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<w:LsdException Locked="false" Priority="31" QFormat="true"
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<w:LsdException Locked="false" Priority="32" QFormat="true"
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<w:LsdException Locked="false" Priority="33" QFormat="true" Name="Book Title"/>
<w:LsdException Locked="false" Priority="37" SemiHidden="true"
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<w:LsdException Locked="false" Priority="39" SemiHidden="true"
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<w:LsdException Locked="false" Priority="41" Name="Plain Table 1"/>
<w:LsdException Locked="false" Priority="42" Name="Plain Table 2"/>
<w:LsdException Locked="false" Priority="43" Name="Plain Table 3"/>
<w:LsdException Locked="false" Priority="44" Name="Plain Table 4"/>
<w:LsdException Locked="false" Priority="45" Name="Plain Table 5"/>
<w:LsdException Locked="false" Priority="40" Name="Grid Table Light"/>
<w:LsdException Locked="false" Priority="46" Name="Grid Table 1 Light"/>
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<w:LsdException Locked="false" Priority="48" Name="Grid Table 3"/>
<w:LsdException Locked="false" Priority="49" Name="Grid Table 4"/>
<w:LsdException Locked="false" Priority="50" Name="Grid Table 5 Dark"/>
<w:LsdException Locked="false" Priority="51" Name="Grid Table 6 Colorful"/>
<w:LsdException Locked="false" Priority="52" Name="Grid Table 7 Colorful"/>
<w:LsdException Locked="false" Priority="46"
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<w:LsdException Locked="false" Priority="47" Name="Grid Table 2 Accent 1"/>
<w:LsdException Locked="false" Priority="48" Name="Grid Table 3 Accent 1"/>
<w:LsdException Locked="false" Priority="49" Name="Grid Table 4 Accent 1"/>
<w:LsdException Locked="false" Priority="50" Name="Grid Table 5 Dark Accent 1"/>
<w:LsdException Locked="false" Priority="51"
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<w:LsdException Locked="false" Priority="52"
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<w:LsdException Locked="false" Priority="46"
Name="Grid Table 1 Light Accent 2"/>
<w:LsdException Locked="false" Priority="47" Name="Grid Table 2 Accent 2"/>
<w:LsdException Locked="false" Priority="48" Name="Grid Table 3 Accent 2"/>
<w:LsdException Locked="false" Priority="49" Name="Grid Table 4 Accent 2"/>
<w:LsdException Locked="false" Priority="50" Name="Grid Table 5 Dark Accent 2"/>
<w:LsdException Locked="false" Priority="51"
Name="Grid Table 6 Colorful Accent 2"/>
<w:LsdException Locked="false" Priority="52"
Name="Grid Table 7 Colorful Accent 2"/>
<w:LsdException Locked="false" Priority="46"
Name="Grid Table 1 Light Accent 3"/>
<w:LsdException Locked="false" Priority="47" Name="Grid Table 2 Accent 3"/>
<w:LsdException Locked="false" Priority="48" Name="Grid Table 3 Accent 3"/>
<w:LsdException Locked="false" Priority="49" Name="Grid Table 4 Accent 3"/>
<w:LsdException Locked="false" Priority="50" Name="Grid Table 5 Dark Accent 3"/>
<w:LsdException Locked="false" Priority="51"
Name="Grid Table 6 Colorful Accent 3"/>
<w:LsdException Locked="false" Priority="52"
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<br />
<div class="MsoNormal">
<span style="mso-fareast-font-family: Batang;">Gentleman,</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: Batang;">I am writing to
you today, as an attorney who represents both homeowners’ associations and homeowners
who are being victimized by their associations. The HOA Reform bill is critical
at this point and comes at a time when the president of the Florida Bar, Mr.
Ramón Abadin, has pointed out, in the November issue of the Florida Bar
Journal, the need for a new business model because the working class cannot
afford an attorney and do not qualify for legal aid.<span style="mso-spacerun: yes;"> </span>I see this injustice every day in my practice
as I have to tell clients the high legal fees and costs they would incur to
hire me to protect them from being another HOA victim.<span style="mso-spacerun: yes;"> </span>These cases are not the type that are done on
a contingency because rarely has someone been physically injured. <span style="mso-spacerun: yes;"> </span>I turned down at least one case a day,
sometimes as many as five. <span style="mso-spacerun: yes;"> </span>Yesterday it
was three.<span style="mso-spacerun: yes;"> </span>Most firms won’t represent
the homeowners because the associations are a “cash cow.”<span style="mso-spacerun: yes;"> </span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: Batang;">The homeowners’
associations are unregulated and the condominium associations have limited
regulation with the Dept. of Business and Professional Regulation (“DBPR”) not
having jurisdiction over assessments, which is the biggest source of abuse for
homeowners.<span style="mso-spacerun: yes;"> </span>Even the appellate courts,
in a case called <u>Ocean Two Condo. v Kliger,</u> where the Court stated “Because
of the statutory lien rights and the power to prosecute the foreclosure action,
an association and its attorneys have ample leverage, and the unit owners have
very little. Every telephone call, meeting, or hearing regarding the genesis of
the dispute and the amount due produces an incremental unit of attorney
billings, and every day until resolution of the dispute increases the interest
tariff.”<span style="mso-spacerun: yes;"> </span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: Batang;">In my practice
I have witnesses law firms that have paralegals do all the work, yet the
homeowners are billed attorneys’ fees, not paralegal fees.<span style="mso-spacerun: yes;"> </span>I have witnessed a law firm give sales
pitches to associations during hiring interviews and state that “95% of the
homeowners can’t afford to sue you and the 5% that can will soon learn that
money can be used for a vacation, their children’s college, or retirement and
will give up.”<span style="mso-spacerun: yes;"> </span>Unfortunately, this is true.<span style="mso-spacerun: yes;"> </span>I have seen a law firm give homeowners a
letter stating they could not call or come to their office to resolve their
assessment delinquency, but could fax their credit card or email and then are
given the email address of a former staff member.<span style="mso-spacerun: yes;"> </span>Once I got involved the charges ballooned from
$795 to over $3,600 with the attorney telling me he had to read all those
emails the owner sent trying to get a response.<span style="mso-spacerun: yes;">
</span>This is outrageous and had I not gotten involved he would have forced
the homeowner to pay those ridiculous legal fees. </span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: Batang;">The industry
not only needs more regulation, but more affordable legal representation. Let’s
give DBPR jurisdiction to arbitrate assessment disputes.<span style="mso-spacerun: yes;"> </span>This is the biggest source of abuse.<span style="mso-spacerun: yes;"> </span>Arbitration is less expensive for the
homeowner and the threat of arbitration might help tamper the abuse.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: Batang;">Regulation of
the homeowners’ associations is needed to help curtail the abuse of out of
control board members.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: Batang;">Right now there
is a rise in homeowners’ associations setting up their own corporations to perform
work normally performed by vendors. <span style="mso-spacerun: yes;"> </span>This
results in the board of directors putting their family members on the board of
these corporations as paid directors, if not themselves in some cases; the
board members receiving free services, the members being denied access to see accounting
records of these corporations even though their assessments paid to set up this
corporation and bought any equipment, furniture or other assets. <span style="mso-spacerun: yes;"> </span>Several times I have witnesses where these corporations
are either owned or operated by a board member or have contracts with a board
member.<span style="mso-spacerun: yes;"> </span>Some associations set up these
companies to operate a receivership or rental program to take control of homes
in foreclosure, which is needed, but instead funnel the rental income to
themselves or the corporation without the association getting a dime.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: Batang;">There is also a
rise in the community association management firms setting up their own corporations
to perform work normally performed by vendors.<span style="mso-spacerun: yes;">
</span>These corporations are then paid top dollar and paid promptly with no
one given a chance to dispute an invoice.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: Batang;">There is a rise
in the number of cases in which deed restrictions have expired under the
Marketable Record Title Act but the HOAs continue to operate as mandatory
associations and threaten to foreclose on owners who refuse to pay because they
know the chances of the owner affording an attorney are slim.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: Batang;">I have witnessed
board members targeting homeowners they do not like.<span style="mso-spacerun: yes;"> </span>This targeting sometimes includes criminal
activity, which is hard to prove.<span style="mso-spacerun: yes;"> </span>Any witnesses
refuse to get involved because they know they will be targeted.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: Batang;">The Village
Condominium Association in Orlando was taken over by a board member who slowly
was able to get rid of anyone who did not agree with him and then proceeded to
give himself the management contract, the security contract (with armed security
despite not having the proper licenses), and the maintenance contract.<span style="mso-spacerun: yes;"> </span>This board member marked all the board
members’ assessments as paid each month despite no payment.<span style="mso-spacerun: yes;"> </span>He was able to take approximately $40,000 a
month from the association (which we documented), depleted the reserves and
diverted money from insurance claims to his own pocket. A receiver was eventually
appointed to take over and the board removed.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: Batang;">I could write a
book on the atrocities committed against homeowners, including cars being set
fire, fake bombs on lawns, handicapped owners in wheelchairs being refused to
attend meetings and harassed, racial discrimination, sex discrimination,
discrimination against veterans.<span style="mso-spacerun: yes;"> </span>I have
witnessed homeowners being evicted from their homes for past due assessments
when their home was in a trust and the association demands the rent be paid to
them from the “tenant.”<span style="mso-spacerun: yes;"> </span>And let’s not
forget the <u>Higgins v. Timber Springs</u> case in which Mr. Higgins was
foreclosed upon while on active duty in the military. <span style="mso-spacerun: yes;"> </span>Our firm was able to get the foreclosure reversed.<span style="mso-spacerun: yes;"> </span>We took the case pro bono, one of the few we
could afford to handle as a small firm, because Mr. Higgins could not afford an
attorney and was trying to deal with this situation while deployed.<span style="mso-spacerun: yes;"> </span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: Batang;">The sad part is
when I have to give these homeowners a quote of the fees to litigate they decide
it’s easier to sell their home and move, sometimes to another state.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: Batang;">I apologize
this email is so long, because I know your time is valuable, but I appreciate
the efforts each of you are making in trying to protect the rights of our
citizens.<span style="mso-spacerun: yes;"> </span>So many of them lose their
homes, not because they can’t afford them, but because they upset their HOA,
became a victim, and cannot afford an attorney.<span style="mso-spacerun: yes;">
</span>Thank you!</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Regards,</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="color: #1f497d; font-family: "baskerville old face" , serif; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast; mso-no-proof: yes;">Barbara Billiot Stage, Esq.</span><span style="color: black; font-family: "baskerville old face" , serif; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast; mso-no-proof: yes;"></span></div>
<div class="MsoNormal">
<span style="color: #1f497d; font-family: "arial" , sans-serif; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast; mso-no-proof: yes;"><br /></span><span style="color: black; font-family: "arial" , sans-serif; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: minor-fareast; mso-no-proof: yes;"></span></div>
Barbara Billiot Stage, Esq.http://www.blogger.com/profile/10212772964426073518noreply@blogger.com3tag:blogger.com,1999:blog-126759629688276717.post-85687975098926382592015-10-13T08:37:00.001-04:002015-10-13T08:37:24.830-04:00My HOA Turned Me Over to Collections -- PLEASE HELP!!!This is a frequent call I receive. Here's my advice:<br />
<br />
If you were ever late with just one payment, you set into a motion a problem that just snowballs. It may be possible you mailed your check on time but it was not delivered on time. The association is still entitled to late fees, interest and attorneys' fees whenever a payment is late. Once the account is late, the account is sent to the attorney and any payments you mail are rerouted to the attorney, which is the reason for the delay in posting payments. <br /><br />By state law all payments you send to the association are applied to non-assessment charges first and assessments last. This means unless you pay the amount demanded in full you will always be late and subject to foreclosure. Contacting the attorney only adds more legal fees because by state law the association is entitled to all of their attorneys' fees even if a case is never filed.<br /><br />You need to resolve this now because the association is most likely preparing to foreclose on your property.<br /><br />Unless you can prove you were never late starting with the first time your ledger is showing a late payment, which is usually not possible without a tracking number on the mail, you will need to request a payment plan in writing to the attorney. Payment plans are generally approved for 6 to 12 month repayments. The payment plans can be expensive as well because the attorneys charge to set up the plan and charge to process the checks and monitor your account to make sure you continue to pay. <br /><br />If the payment plan doesn't work out for you or the association doesn't approve it, consider filing bankruptcy. If you owe more on your home than it is worth you could lien strip the debt. If not, you could file a Chapter 13 plan and put the debt into a 5-year repayment plan. Filing a Chapter 7 without lien stripping will relieve you of the debt, but the lien remains and the association could still foreclose. You also have to pay any assessments that come due after you file bankruptcy.<br />
<br />
<i><b>If you are in this situation -- hire a lawyer! YOU ARE AT RISK OF LOSING YOUR HOME!</b></i> <br />
<br />
If the association has a third party debt collector, this is definitely a complicated matter that requires hiring a lawyer.Barbara Billiot Stage, Esq.http://www.blogger.com/profile/10212772964426073518noreply@blogger.com2tag:blogger.com,1999:blog-126759629688276717.post-9696069221873732312015-08-22T21:16:00.000-04:002015-08-22T21:32:30.453-04:00HOA Bullies & Condo Commandos<div style="text-align: justify;">
The biggest complaint I hear recently from people calling my firm for help is bullying and harassment by their association. This is no surprise to me since a ruling last year which basically said if you live in an association you better learn to have a thick skin. The courts and the arbitrators lost their patience long ago for the constant bickering in community associations. Now this lack of patience memorialized in a ruling.<br />
<br />
Part of the problem is this misconception that because the associations are corporations bringing a lawsuit against one would result in a big damages award, so owners are quick to want to sue their associations and jam up the courts with harassment cases. The reality of the situation is that unless you have been seriously injured, either physically or in some other manner (like losing your job because the association called your employer), you will be lucky to get all of your attorney's fees and legal expenses, much less anything for pain and suffering. These are just not big dollar cases, which means if you do want to sue you will need to finance the case yourself because they are not eligible for a contingency fee arrangement (pay only if you win). <br />
<br />
Don't misunderstand me -- I have seen some horrendous acts against homeowners, some of them criminal, but even in those cases lack of evidence is a problem. The associations are crafty enough to not commit these acts in front of witnesses.<br />
<br />
Without regulation by the State of Florida and lack of funds available to the homeowners to bring litigation, the homeowners often have no recourse. The associations know this and know they can get away with violating state laws and the governing documents of the association.<br />
<br />
My recommendations for living in a community association are:<br />
<br />
1. Move. My opinion is the risks outweigh the benefits of living in an association. You might live in a great association right now, but one election can change everything.<br />
<br />
2. If you can't move, educate yourself. It's harder to take advantage of someone who knows what their rights are and can stand up for those rights. If you haven't read your governing documents (Declarations, Bylaws, Articles of Incorporation, Rules and Regulations), do so NOW. If you are not sure what something means, pay a lawyer to interpret it for you. It's better to spend a few hundred dollars now then to spend thousands later if you end up in trouble. Also, read the state laws. Chapter 720 of the Florida Statutes governs homeowner associations and Chapter 718 governs condo associations.<br />
<br />
3. Try to resolve disputes in an amicable manner first. Respond promptly to all letters and notices you receive from the association. Even if their letter is antagonistic, don't respond while your angry and try to respond in a friendly manner. These letters are often form letters written by the association lawyer who has to put certain things in them to comply with the law. For instance, the law requires the association to let you know that if you do not pay your past due assessments the association can lien and foreclose on your home. It has harsh language in it, but most of the language is required. Same thing goes for covenant violation notices. If the association is going to impose a fine the association has to provide you with a notice 14 days in advance of a hearing. The word "hearing" is usually enough to upset anyone, but it's required to be in the notice.<br />
<br />
4. Always pay your assessments. No matter how you feel about the way the association is being operated and managed, you cannot withhold assessments and you will lose your home if you do. Even if the money is being embezzled, you still have to pay your assessments. State law makes it an absolute duty to pay and none of the other issues are a defense. Financial hardship is not an excuse. If you know you can't pay, call your association and ask for payment arrangements before you are late.<br />
<br />
5. Maintain your property. The fastest way to get into trouble with your association is to not keep your property maintained. You bought your property in an association so that everyone would keep their property in a neat, attractive manner to preserve property values. We all have hard times sooner or later, but that doesn't excuse anyone from keeping up their property. A lot of things can be done to keep the property up that don't cost money, like mowing and edging the lawn or picking up trash, toys, or other items.<br />
<br />
6. Keep an eye on the money. It's alarming how many associations have funds missing or misappropriated. Ask for a copy of the annual financial reports. The associations are required to send out a notice each year letting homeowners know the reports are available. Periodically ask to see the monthly financial reports. You have a right to see any official records as long as you send a certified letter to the association requesting access to inspect the records. Don't ask for copies to be sent -- the associations have no duty to provide the copies other than during the inspection. The association has ten (10) business days (five for condo associations) to provide you with access to the records.<br />
<br />
7. Don't go looking to pick a fight. The odds are against you, especially if you don't have deep pockets. Once you become involved in a dispute with your association chances are you will never be treated decently again. It gets personal. It shouldn't, but it does because this is a corporation that is run by your neighbors.<br />
<br />
8. Attend meetings and encourage your neighbors to attend meetings. Associations become a problem when the homeowners don't care to be involved. This goes back to item #2. You can't educate yourself if you don't know what's going on in your neighborhood.<br />
<br />
9. Campaign to be a board member. Again, lack of participation by the homeowners leads to rogue boards and abusive associations.<br />
<br />
10. If you must litigate, make sure it's over something really important and not just name calling or a general dislike for your associations. Ask yourself if it's something worth you spending 3-4 years in a court case over and spending tens or hundreds of thousands of dollars over. There is a financial cost to litigation as well as an emotional cost. Once you engage in litigation with your association you can't just walk away. If you back out you will have to reimburse the association their legal fees, which could reach $100,000 or more very quickly. Make sure you hire a lawyer who has experience litigating against associations. It's not your typical court case. There are pre-suit requirements and special rules.<br />
<br />
Finally, contact your elected officials and tell them we need state regulation for homeowner associations. We need a state agency to oversee the homeowner associations. We have regulation for condo associations. While it's not the ultimate fix to the problem, it's an improvement and arbitration with the State of Florida is less expensive then litigation in civil court.</div>
Barbara Billiot Stage, Esq.http://www.blogger.com/profile/10212772964426073518noreply@blogger.com2tag:blogger.com,1999:blog-126759629688276717.post-25302673684803738652015-07-18T16:22:00.000-04:002015-07-18T16:22:40.720-04:00Fines Authorized by Statute?<span style="color: #333333; font-family: Proxima Nova, Trebuchet MS, Arial, Tahoma, sans-serif;"><span style="font-size: 15px; line-height: 22.5px;">The great debate: Can the HOA fine if the governing documents do not authorize it but Fla. Stat. 720.305(2) establishes procedures for fining? </span></span><br />
<span style="color: #333333; font-family: Proxima Nova, Trebuchet MS, Arial, Tahoma, sans-serif;"><span style="font-size: 15px; line-height: 22.5px;"><br /></span></span>
<span style="color: #333333; font-family: Proxima Nova, Trebuchet MS, Arial, Tahoma, sans-serif;"><span style="font-size: 15px; line-height: 22.5px;">Many community association lawyers and community association managers say yes.</span></span><br />
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<span style="color: #333333; font-family: 'Proxima Nova', 'Trebuchet MS', Arial, Tahoma, sans-serif; font-size: 15px; line-height: 22.5px;">My answer is no despite many of my colleagues disagreeing with me. The statute starts out "The association may levy reasonable fines of up to $100 per violation....." which my colleagues have interpreted to mean the association has a statutory right to levy fines. </span><br style="color: #333333; font-family: 'Proxima Nova', 'Trebuchet MS', Arial, Tahoma, sans-serif; font-size: 15px; line-height: 22.5px;" /><br style="color: #333333; font-family: 'Proxima Nova', 'Trebuchet MS', Arial, Tahoma, sans-serif; font-size: 15px; line-height: 22.5px;" /><span style="color: #333333; font-family: 'Proxima Nova', 'Trebuchet MS', Arial, Tahoma, sans-serif; font-size: 15px; line-height: 22.5px;">My argument is the Florida Constitution prohibits retroactive application of a statute to change an existing contract (Declarations, bylaws and articles of incorporation are contracts) as reinforced by Cohn v. The Grand Condominium. Additionally, S&T Anchorage v. Lewis held an association cannot act in any way not authorized by its governing documents. The exception to the retroactive application is statutes which are public policy (such as the Florida Friendly Landscaping Act), statutes which are remedial or curative (the recall statute) and statutes which are procedural. The fining statute is procedural, but the part that would allow for a statutory right to fine is not nor was it a public policy statute. </span><br style="color: #333333; font-family: 'Proxima Nova', 'Trebuchet MS', Arial, Tahoma, sans-serif; font-size: 15px; line-height: 22.5px;" /><br style="color: #333333; font-family: 'Proxima Nova', 'Trebuchet MS', Arial, Tahoma, sans-serif; font-size: 15px; line-height: 22.5px;" /><span style="color: #333333; font-family: 'Proxima Nova', 'Trebuchet MS', Arial, Tahoma, sans-serif; font-size: 15px; line-height: 22.5px;">From Haven Fed. Savings and Loan v. Kirian: “Substantive law has been defined as that part of the law which creates, defines, and regulates rights, or that part of the law which courts are established to administer. It includes those rules and principles which fix and declare the primary rights of individuals with respect towards their persons and property. On the other hand, practice and procedure 'encompass the course, form, manner, means, method, mode, order, process or steps by which a party enforces substantive rights or obtains redress for their invasion. 'Practice and procedure' may be described as the machinery of the judicial process as opposed to the product thereof." It is the method of conducting litigation involving rights and corresponding defenses.” </span><br style="color: #333333; font-family: 'Proxima Nova', 'Trebuchet MS', Arial, Tahoma, sans-serif; font-size: 15px; line-height: 22.5px;" /><br style="color: #333333; font-family: 'Proxima Nova', 'Trebuchet MS', Arial, Tahoma, sans-serif; font-size: 15px; line-height: 22.5px;" /><span style="color: #333333; font-family: 'Proxima Nova', 'Trebuchet MS', Arial, Tahoma, sans-serif; font-size: 15px; line-height: 22.5px;">My colleagues disagree and until an appellate court rules on the subject we will not know who is right. Does your HOA want to foot the bill for an appellate case to figure this out? My suggestion is err on the side of caution.</span>Barbara Billiot Stage, Esq.http://www.blogger.com/profile/10212772964426073518noreply@blogger.com3