New condo-HOA measures target delinquent homeowners

Article Courtesy of The Sun Sentinel

By Daniel Vasquez

Published May 14, 2011

Florida lawmakers have passed new legislation regulating condominium and homeowners communities that could change daily life in association-governed neighborhoods.

The bills, now awaiting Gov. Rick Scott's signature or veto, would tighten laws passed last year that give community associations more power to crack down on owners who fall behind in maintenance payments and create more parity in laws governing condos and HOAs.

Under the proposed reforms, condo and homeowner associations could demand full rent from tenants of delinquent owners. This would help cash-strapped communities combat owners who rent or lease units and collect cash from tenants without bothering to pay their share of maintenance payments.

"It's about time this was clarified," said Sidney Wicks, a board member of the Saturnia Homeowners Association in Boca Raton, which governs 405 households. "One of the worst feelings is when homeowners [who] stop paying their association dues keep the income from renting out their house, causing an assessment where their fellow homeowners must make up the difference in delinquent association dues."

But critics say the bills don't go far enough to help struggling communities trying to survive a bad economy and housing market.

"It's another bad bill throwing some breadcrumbs to owners but otherwise trampling on the owners' contractual rights," said Jan Bergemann, president of Cyber Citizens for Justice, an advocacy group representing Florida community associations. "The bill does nothing to deal with the financial crisis caused by unpaid dues and foreclosures." Bergemann supports law that treats new owners equally. For example, individuals who buy a condo unit via an auction or short sale would likely be responsible to pay all past due maintenance fees, while a financial institution may only be liable for up to 12 months of back dues or one percent of original mortgage, whichever is less. He believes both the individual and bank should be liable for all amounts owed to the association.

The reforms were hammered out last week by both the Florida House of Representatives and the Senate in the form of bill HB 1195, which is expected to be sent to Gov. Rick Scott in the coming days for his signature or veto. The governor would have 15 days after delivery to sign them, making them law, or veto them. If he does nothing, the reforms would still become law.

"The bills once again provide steps in the right direction," said Donna Berger, of the community association law firm Katzman, Garfinkel and Berger and a guest blogger for the Sun Sentinel. "Right now there is much for condo and HOA members to like, including the newfound ability of HOA boards to keep convicted felons off their boards and for HOA members to speak on any agenda item at HOA meetings without having to petition the board to put that language in there."

Lobbying groups, such as the Community Advocacy Network and the Community Association Leadership Lobby, largely helped draft the proposed laws. "We have no reason to believe that the bill will be vetoed," said Yeline Goin, co-executive director of CALL.

Among the highlights of the new reforms:

Condo, homeowners and cooperative associations would be able to demand full monthly rent from tenants in delinquent properties. A similar law was passed last year but left unclear whether associations could collect partial or full rent. Landlords would be banned from punishing tenants for complying with the law and a common form would be created for associations to send to tenants explaining the law.

Homeowner associations would be able to ban felons from serving on boards, as condo associations are allowed to do.

Condo board members would be able to show proof of attending state-approved education courses within a year before or 90 days after taking the post, rather than sign a form stating they have read Florida law.

Boards could ban delinquent owners from common areas, such as pools and club houses, without holding a hearing, if it is a result of failure to pay assessments. A hearing must still be held when an association wishes to ban an owner from a common area for violating a governing document rule, such as creating loud noise or disturbances at a pool.

Homeowners would be allowed to speak at board meetings on any item on the agenda, no longer requiring a petition from a number of owners to do so.


Daniel Vasquez can be reached at [email protected] or 954-356-4219 or 561-243-6686. His condo column runs Wednesdays in Your Money and at sunsentinel.com/condos. Check out Daniel's Condos & HOAs blog for news, information and tips related to life in community associations at www.sunsentinel.com/condoblog. You can also read his consumer column Mondays in Your Money and at www.sunsentinel.com/vasquez.
CONDO ARTICLES HOME NEWS PAGE