Article
Courtesy of the South Marion Citizen Online
By
Jan Bergemann
Published December 3, 2004
FS
720 — The Florida Statutes that regulate homeowners' associations — has a
new face — and even a few more ways to enforce the rules without creating
huge legal bills. And a provision that allows homeowners to recall a board —
easy as 1-2-3 — without getting involved in a huge lawsuit.
Cyber Citizens For Justice, a
grassroots homeowner lobbying group that CHIP members recently joined forces
with, was in the forefront to bring about this legislation.
The Department of Business and Professional Regulation (DPBR) has been chosen
to mediate and arbitrate certain disputes. This was the first time since 1995
that homeowners have seen positive changes to a law that has too many flaws.
It was a step in the right direction.
But we homeowners need to keep pushing for more necessary reforms, especially
a government agency with enforcement powers, and for unbiased education. Bills
to that effect are being written and will be filed for the next legislative
session. But legislators need to hear the unified voice of their constituents.
It makes no sense that some associations spend more than 50 percent of their
annual budgets for management and legal fees, instead of spending for
community maintenance and beautification, as originally intended.
The work of the HOA Task Force, created by Governor Jeb Bush in July 2003,
submitted bills (SB 1184 + SB 2984) that passed with few changes and were
signed into law by Governor Bush.
Many good provisions have been enacted, but still not enough to prevent the
many ugly headlines we can daily read in the newspapers.
The major achievements of the new legislation:
One of the biggest changes took place on October 1, 2004 by creation
of FS 720.311 — DISPUTE RESOLUTION.
This chapter was created as an attempt to avoid outrageous amounts of legal
fees wasted in very dubious lawsuits. It should give opposing parties the
chance to solve problems by talking to a referee, called "mediator"
or "arbitrator." But it will only work if common sense is used and
people are willing to listen to reason.
The DBPR can now be petitioned to mediate or arbitrate the following disputes:
* Recall of board of directors.
* Election disputes.
* Membership meetings disputes.
* Meetings of boards and committees.
* Access to public records.
* Certain other covenant enforcement issues.
* Amendments to governing documents.
* Use of or changes to parcels and common areas.
Other important improvements include:
* Homeowners' association board meetings' right to speak — levy
assessment (720.303(2).
* Expanded definition of official records (720.303(4).
* Inspection and copying of records (720.303(5).
* Financial reporting — audits (720.303(7).
* Association funds — restrictions of use (720.303(8).
* Recall of directors (720.303(10).
* Flags (720.304(2).
* Slapp suits prohibited (720.304(4).
* Access ramps (720.304(5).
* Security signs (720.304(6).
* Fines can't lead to liens and foreclosures (720.305(2).
* Competitive bidding for contracts (720.305(5).
* Disclosure prior to sale (720.401 + 402).
* Covenant revitalization (720.403 — 720-407).
All of these changes are a good step in the right direction, but we are far
from a feasible solution for all the problems debated. Costly legal arguments
will continue until a powerful government agency properly regulates
homeowners' associations.
For many years, attorneys have written the book on association law; and look
at the endless number of lawsuits filed and legal fees spent.
This has to change finally if homeowners want to live in a pleasant and
peaceful neighborhood. We need laws that help us to live in harmony with our
neighbors, not fighting each other.
Attorneys all over Florida criticize the new HOA statutes and blame the
legislators for creating confusion. They like to forget that this bill was
actually written by their colleagues, attorneys of the real estate section of
the Florida Bar.
This law is far from perfect. New bills to further improve the system are
being written. We homeowners need to work together to improve that system, so
it preserves our welfare, rather than contributes to our financial discomfort.
We homeowners need to speak out in Tallahassee on our own behalf. Like a
legislator just said at our annual meeting in Ocala on Nov. 19; "Change
happens in government when people stand up and speak up."
Cyber
Citizens For Justice is a Florida grassroots organization that represents the
interests of homeowners and condominium owners. Jan Bergemann is president of
CCFJ. Their aim is to create consumer-friendly legislative changes to the
existing laws governing mandated properties. For more information, go to the
web site http://www.ccfj.net/ or
send an e-mail to [email protected].
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