Friends in deed

The politics of homeowners associations can be spirited

Article Courtesy of The Ocala Star Banner

By RICK CUNDIFF
Published April 9, 2006

Laura Kuvacevich was happy when she moved into the Lakeview Woods subdivision last June. The area looked nice, and the neighbors were friendly.

"I thought 'What a wonderful neighborhood to live in," she said.

Two weeks after moving in, she received her first notice from the Lakeview Woods Property Owners Association that she was violating the deed restrictions. The letter said her home was "unsightly."

"How can an 11-month-old home be unsightly?" Kuvacevich said. "It's a brand-new home."

"Had I known that he had such control, I probably wouldn't have moved in."

Hein said he's just doing his job.

"I have to look out . . . for the majority of the homeowners, not for just one or two," he said. "My job isn't to make anybody happy. My job is to enforce the deed restrictions."

It's not the first time problems have arisen between area homeowners and the associations that govern their deed-restricted subdivisions.

Last year, Majestic Oaks homeowners revolted after their homeowners association attempted to prevent residents from taking in Hurricane Katrina victims. The association board apologized and four members resigned after the issue drew unflattering national news coverage.

But the power isn't absolute. Florida law prevents homeowners' associations from filing liens and foreclosing on homes for violations of deed restrictions after October 2004, Lively said.

That hasn't stopped Hein from filing liens against Lakeview Woods residents.

"He has ignored that and imposed liens on people's lots, which has affected their ability to sell," said lawyer Michael Cooper. "In my personal opinion . . . I feel that he has been very abusive."

Hein said he had been told by his lawyers that the law change that prevents new liens for violating the deed restrictions doesn't apply to restrictions and covenants written before the law was changed.

"I'm aware of it, but I've been told by our legal counsel that it does not apply to us," he said.

Hein's lawyer, Eric Gifford, said that's an issue.

"In fact, it is not appropriate to apply this 2004 amendment to these deed restrictions," he said.

Lively disputed Gifford's view.

"I would beg to differ with that," she said. "I do not believe that it was contingent upon when the deed restrictions were in place. You can no longer do a claim of lien for fines, period."

Doug Kirkland, another lawyer representing Lakeview Woods residents, questioned Hein's motives.

"I think he's using the lien process to make money for himself," Kirkland said.

Hein disputed Kirkland's assessment.

"Any money that comes in doesn't come to me. It goes to the association itself," he said.

Once a certain percentage of homes or lots -- specified in the deed covenants governing each subdivision -- are sold, the developer steps out, turning operation of the homeowners association over to an elected board of residents.

In the case of Lakeview Woods, that hasn't happened yet. But it's about to.

Cooper represented homeowners Mabelle and Carmen Gregorio in a battle with Hein over a lien Hein placed against their residence. The specified number for turning over the association to the residents is 90 percent sold, Cooper said. As part of a mediated settlement, Hein has agreed to turn over control of the Lakeview Woods association to the residents by January.

Hein said he's ready to let go.

"As of January first, they should be self-governing," he said. "I'm looking forward to them taking over."

Whether an association is run by a developer or an elected board, problems between homeowners and associations are the exception, not the rule, Cooper said.

"In most homeowners' associations, 90 percent of the people don't want to get into conflict with anybody," he said. "Most people just want to be left alone, and only the most flagrant abuses are going to make them become involved."

The Lakeview Village section of the Cala Hills subdivision is one such peaceful association, said president Walter Conrad.

"We're a community of 41 homes, so we have the ability to talk among ourselves," he said. "I think it helps, our being small."

Like other area developments, Lakeview Village -- which isn't connected to Lakeview Woods in any way -- had its covenants and deed restrictions set by the original developer. Once the homeowners took over, they had to modify some of the rules, Conrad said.

The association recently dealt with a proposed monthly fee increase for lawn maintenance by reducing the extent of the maintenance, Conrad said.

"They've been dealt with by amending (the covenants) or removing them through the meetings," he said.

With a compact neighborhood, close proximity helps keep the board in line, Conrad said.

"I've got to see my neighbors. I'm out there every evening walking with my child and my wife," he said. "I don't feel like controlling my neighbors, just like I don't want people controlling my life."

But the desire to get along can make it easy for a strong-willed individual to push things too far, Cooper said.

"If one person asserts themselves with a single-minded purpose to control an association . . . the one who has that kind of energy, dedication and determination is going to prevail, at least for a time," Cooper said. "In most subdivisions, people are reasonable and that doesn't happen."

Homeowners can protect themselves by making sure they understand the restrictions and covenants that may apply to them before they get to closing on a home, Lively said. Trying to challenge the rules in court after the fact is risky business, she said.

"You should also demand that you see the rules and regulations," she said. "You walk in (to a courtroom) with a presumption that they're going to be valid, and they're going to be enforced."