New Florida Law Aids Members of Homeowner Associations

Article Courtesy of the Northwest Florida Daily News, Fort Walton Beach

Published 11 - 16  - 2004

By Joni Williams

 

RISMEDIA  – A new state law is designed to reduce conflict between homeowners' associations or condominium associations and their members.

The law, signed by Gov. Jeb Bush on June 23, reflects input from a special task force that, according to the state, consisted of "a cross-section of representatives involved with homeowners' associations." The goal of the team was to troubleshoot problems that frequently have occurred between owners and associations.

Among other things, the law allows owners the right to speak at association meetings, display flags and construct access ramps.

Another issue addressed includes new ways of handling disputes between associations and owners.

"What this legislation does is provide an alternative means for those who live under an HOA," said Michael Cochran, director of Florida's Division of Land Sales, Condominiums and Mobile Homes. "Before (this law), the only solution was to hire an attorney and go to court." "As a rule of thumb, small homeowners' associations and small condo associations have a disproportionate amount of disagreements," said Parker Smith, a seasoned real estate attorney in Destin, confirming the large number of suits caused by friction between owners and associations.

"People fight over things that would amaze you," added Matt Bordelon, an attorney with the Bordelon Law Firm in Gulf Breeze.

The new legislation requires election disputes to first be turned over to mandatory arbitration, a procedure said to resemble a trial in its preparatory efforts and practice.

Everyday issues such as records access and covenant disagreements will require mediation rather than arbitration.

"It will probably reduce somewhat the cases that actually get into a sense of litigation," Bordelon said. "But there's nothing that dictates mediation must solve any problems." In addition to offering alternatives to lawsuits, the law precludes fines from being turned into liens. However, owners are cautioned not to misinterpret the new protection afforded them.

"It only includes fines. A fine is not a lienable charge, " said Pat Scott, co-owner of Suncoast Association Management Inc.

"You can be foreclosed on for not paying your assessment," confirmed Smith, referring to the possible penalty for not paying association dues.

The new law adds a dimension to disclosure laws already on the books by requiring sellers to provide prospective buyers with a document entitled "Frequently Asked Questions and Answers," specifying if membership in the association is mandatory and what it entails.

"In a weird way this is going to help," said Bordelon of the new disclosure requirements. "It makes it easier for sellers to make accurate disclosure. If the property is subject to a homeowners' association, the disclosure is more clear." The law requires associations to give members 14 days notice of an upcoming meeting in certain instances, grants members the right to inspect an association's records and guarantees members three minutes of talk time at meetings with advance notice.

Owners who purchase units to be used as rentals are afforded a limited degree of protection against having the use of their property disallowed afterwards. Also protected are members and their agents who unintentionally give out misinformation to buyers.

Prohibited are Strategic Lawsuits Against Public Participation (SLAPP).

This type of litigation, according to written legislation analysis, is initiated against members by "individuals, business entities or governmental entities for matters arising out of a parcel owner's appearance and presentation before a governmental entity on matters related to the homeowners' association." One of the most notable requirements mandated by the law, said Scott, has to do with the way homeowners' associations keep their books.

"Homeowners' associations are now required to have an independent CPA either do a compilation, review or audit depending on their income, like condominium associations have been required to do," she said. "The legislature has made several changes to bring homeowners' associations more in line with condominium associations."


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