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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