Hammocks homeowners face 300-400 percent hikes in HOA fees
Kendall Fee increases of 300 to 400% stun residents of Florida’s largest homeowners association

Article Courtesy of  The Miami Herald

By Brenda Robinson

Published March 15, 2022

  

Residents of the Hammocks community in Kendall outraged by 300 to 400 percent increases in their homeowners association fees have asked the state to investigate what they claim was a sham election that put into office the board members who implemented the new fees.
 

In an escalating feud, residents dissatisfied with the board’s governance have filed 15 complaints with the Florida Department of Business and Professional Regulation disputing the results of a chaotic election held Jan. 3. The Hammocks association is the largest in the state with 6,500 homeowners.

The board recently announced monthly maintenance and service fee increases of 300 to 400 percent, which homeowners say is not only radically unaffordable but was mandated with no justification or explanation. The fee to the master association is being raised from $42.67 to $170. People who live in 18 neighborhoods within the Hammocks managed by smaller, “inner” associations face additional substantial fee increases.

“Whatever your monthly fee bill was before, it has gone up a minimum of 300 percent,” said Todd Botner, who has lived in the Hammocks since 2003 and whose total fees went from $90 to $385, a 327 percent increase.

“We understand that inflation is real, and we understand incremental increases and special assessments, but the board has provided no analysis as to why they are charging homeowners three or four times as much as they did previously. Every time we ask for information, our requests disappear into the ether. There is no access to documents, no access to the budget, no access to meetings, no transparency, no accountability,” Botner added.

“We can’t even find out how much money is left in the checking account, and with 6,500 homeowners paying fees, that’s a lot of cash,” he said. “We used to have reserves of at least $1 million but we think the Hammocks is now broke.” Ana Danton, a Hammocks homeowner since 1993 who served as a board member from 2000 to 2007, said her fees jumped from $80 to $335, a 319 percent increase. The new fee structure was adopted at a Jan. 28 meeting “that was held by invitation only with no explanation of the budget and no questions allowed,” she said.

Residents of the Hammocks, a sprawling single-family home community in Kendall, are facing 300 to 400 percent hikes in homeowner association fees. The lawyer representing the board of the homeowners association says that fees have not been raised in seven years. Residents of the Hammocks, a sprawling single-family home community in Kendall, are facing 300 to 400 percent hikes in homeowner association fees. The lawyer representing the board of the homeowners association says that fees have not been raised in seven years.



“People can’t afford these payments and are scared they will have to move,” Danton said. “We are hostages to this board. When I was a director we never had to raise fees and even reduced them one year because we had excess reserves. We carried out our fiduciary duty to manage the budget and answer to the residents.”

Fees have not risen in seven years

Board members are not talking to the media and calls to the HOA office went unanswered, but the association’s lawyer, Hilton Napoleon, said the board is being unfairly depicted as dictatorial and unscrupulous. Fees had not been hiked in seven years and it was no longer feasible to keep them low, he said.

“If the fee had increased $130 over the course of seven years it wouldn’t sound as drastic,” he said. “The cost of goods, services and labor has become very expensive. Most people in Miami-Dade County would love to pay $42 a month to live in a 3,800-acre community with 23 beaches, two community centers, swimming pools, tennis courts, docks, nature trails, free events and classes. Nobody likes fee increases, but it was well past time to catch up.”

Frustration among homeowners is growing. At a neighborhood fundraising meeting held Saturday, there were calls for hiring a lawyer to place the association under the control of a court-appointed receiver, which Danton believes is a more effective way to get relief for residents instead of waiting on a lengthy investigation by the state’s Department of Business and Professional Regulation (DBPR).

“People are looking for answers because there’s a pattern of problems that have been worsening for several years,” Botner said. “There is desperation. We held a meeting recently and people were crying. An older gentleman came up to me shaking and said, ‘Please don’t forget the elderly.’

“This is a blue-collar neighborhood and people are being victimized by their own leadership.” A recall of January’s election could be a step toward empowering homeowners, Botner and Danton said. The Hammocks is located between Southwest 120th Street and Kendall Drive, between Southwest 147th and 162nd avenues.

Board election had issues, both sides say

The vote for six board positions was beset by irregularities, both sides say. Held at the height of the omicron surge of the coronavirus pandemic, mail-in voting was encouraged and in-person voting was limited to a two-hour span at the clubhouse.
    

Napoleon said a protest against reelection of any board members — organized by a group called the Hammocks Preservation Society — was held outside the clubhouse. When the protesters became loud and unruly, voting was halted and people waiting in line who had been assured they would have a chance to vote were told to go home.

At the same time, a Hammocks security guard told voters outside that a bomb threat had been called in, voting was closed and the association would simply count the ballots that had been cast, Botner and Danton said.

“The election was a debacle,” Botner said. “Only about 40 people were allowed to vote in person, hundreds of people waiting in line were not allowed to vote and there were many accounts of abuse of the mail-in ballots. The bomb threat was fake. The police were not aware of any threat.”

Napoleon was inside and said there was no bomb threat.

“The election was stopped because of the protesters banging on doors and windows and getting into an altercation with a Hammocks security guard,” he said. “They complained about the election and then they disrupted it. They created the problem.” Danton said Napoleon’s account does not jibe with what she observed. “When they saw the large number of people who showed up to vote, they realized they had to shut down the voting or they would lose,” she said. “That is when people started protesting by chanting, ‘We want to vote!’” An independent election monitor, who was posting from the clubhouse on Facebook Live and noted his concern about the behavior of the people outside, counted the ballots and certified the results.

Voters at the Hammocks, a large single-family home community in Kendall, wait in line on Jan. 3, 2022, to vote for board members of the Hammocks Community Association. Hammocks residents have filed 15 complaints with the Florida Department of Business and Professional Regulation in 2022 over the governance of the community.


 

“No one from the board counted any ballots,” Napoleon said. “It was not a situation where it came down to a few votes — there were sufficient margins of victory.

“We will contest the complaint to the state about the election. There is no basis to undo the election.”

As for the bomb threat, State Sen. Annette Taddeo, the Democrat whose District 40 encompasses the Hammocks, asked Miami-Dade County Police Director Alfredo “Freddy” Ramirez III to investigate whether a threat was phoned in, noting in her letter that “for years my office has received multiple complaints from constituents residing in the Hammocks....As such, I took it upon myself as a state constitutional officer to keep a close eye on the association’s election that occurred on Jan. 3, 2022.

” Ramirez wrote back that his detective, after multiple unsuccessful attempts to speak to the association’s public safety director, concluded there was no credible threat and “it appears that no one that was present investigated or took any action regarding the phone threat other than notifying residents that they would not be allowed inside the clubhouse.”

State ‘does practically zero enforcement,’ HOA head says

Among those reelected was president Monica Ghilardi, a board member who was appointed president by her fellow board members to replace Marglli Gallego, who was arrested last April on accusations that she stole nearly $60,000 from the association between 2016 and 2018.

Police said Gallego, the treasurer and president of the Hammocks Community Association at the time, improperly used an association credit card for a wide array of personal purchases and also spent association money to go after enemies, ordering the community’s security guards to “harass” rival association members and filing lawsuits against people she felt were “targeting her unjustly.” She is awaiting trial. Her legal fees are being paid for with HOA funds.

In 2016, Miami-Dade police arrested two former Hammocks HOA employees, charging them with stealing $148,000. The employees used the money to shop at supermarkets, toy stores and a popular underwear store in Hialeah, police said.

“The Hammocks has a history of corruption I think in part because it is such a huge community and we always seem to have someone using a position of power to take advantage of our working-class residents,” Danton said. Mike Rosenberg, president of the Kendall Federation of Homeowner Associations, said the dispute at the Hammocks is illustrative of “board abuse” throughout Florida and the lack of enforcement by the DBPR.

“When it happens, like in the Hammocks, where millions of dollars seem to be missing, the first thought is to call the DBPR, the state agency that ‘helps’ homeowners in associations,” Rosenberg said. “Unfortunately, in most cases, the DBPR lacks the determination and enforcement tools to help. However, they are very good at listening and writing down the problem, and then, that’s it.

“Florida has some great laws, but the DBPR does practically zero enforcement,” Rosenberg added. “If you believe the DBPR is going to help, you will be very disappointed.” The alternative for homeowners is to hire a lawyer, which Danton agrees is the best strategy.

“Unfortunately, the only solution is hiring a good lawyer and start suing,” Rosenberg said. “The boards have insurance companies, and with a good attorney, you have a chance to clean up your board when the insurance companies see their money is on the line.”

Dysfunctional HOAs need more state regulation, Botner said.

“As we interact with DBPR, it is continually noticeable that little to no enforcement is done upon an HOA that is in violation. Rather, it is up to homeowners to follow a process in DBPR that costs the victim money, and requires attorneys and mediators in an effort to have any kind of justice when laws have been violated,” he said. “We strongly believe that a review of how HOAs are managed, along with how enforcement is handled, is necessary to fix issues affecting so many Floridians.”

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