Homeowners association battle threatens homes

Article Courtesy of The Herald Tribune

By CHRIS GERBASI

Published August 22, 2010

CHARLOTTE COUNTY - Residents in a retirement community here say they are being threatened with lien and foreclosure notices because of a legal battle with their homeowners association.

About 50 residents of the Gardens of Gulf Cove, near State Road 776 and Placida Road, are suing the association that manages the community, and the local board of directors. Their attorney, Barbara Stage, said the board illegally amended association rules to gain greater control over the budget and dues assessments.

Resident Bill Colianni, 80, said the changes were made without a vote by homeowners, who want the original rules restored.

"They divested the interest of the members of the association, and invested the powers to themselves so they could do whatever they please," he said.

Colianni and other residents say that since the suit was filed in March, perhaps 90 homeowners have received "intent to lien" letters over late dues, without receiving bills or late-payment notices.

A Gardens of Gulf Cove home. Community residents say they are being threatened.

The letters from the association's attorney demand payment plus interest, late fees, attorney's fees and mailing costs. Dues are $275 annually, plus a $25 special assessment for a contingency fund. Overdue notices had always been sent in the past, residents said.

Jack Arlinghaus, president of the association board, could not be reached for comment. Julie Kornfield, an attorney for the defendants, had no comment, and fellow defense attorney Ron Campbell did not return a call.

The lawsuit was filed around the time quarterly payments were due, so the timing of the letters may be a coincidence. But Stage said it is common for HOAs to "play dirty" when they are sued, and the lien process is a moneymaker. Resident and plaintiff James McMahon noted that he was charged $256 in attorney's fees. Multiplied by 90 residents, that is about $23,000.

McMahon, 50, received a letter in June after overlooking a second-quarter payment. He was able to pay the $518 total, but said the scare tactic might worry others.

"I could see that it might frighten a lot of my neighbors. There are a lot of elderly people here, and they get shook up because they're on a fixed income," McMahon said.

Resident Pat Conklin Houle said an 89-year-old widower who broke his hip and was hospitalized returned home to find a letter demanding $600 in late dues and fees. He was able to pay the bill.

"There was a 93-year-old woman, and they told her, 'If you don't pay your dues, we're going to take your house away from you,'" said Conklin Houle, 73. "You can't do that to somebody who's lived in their house 30 or 35 years."