Article Courtesy of The Ledger

By Tom Palmer 

Published March 28, 2016

POINCIANA — Legislation aimed at addressing gaps in state law that have resulted in political and financial disputes in Poinciana and other communities governed by homeowner associations died in the final days of the 2016 legislative session.

State Rep. John Cortes, D-Kissimmee, and State Rep. Mike La Rosa, R-St. Cloud, said they will refile legislation in 2017.

Cortes filed HB 1357, which would have offered homeowners who got behind on assessments a chance to avoid foreclosure or having their delinquent account turned over to a collection company. It also would have required board members to disclose financial conflicts of interest and recuse themselves from voting on those issues, similar to the restrictions that apply now to elected public officials.

LaRosa filed HB1405, which would have increased transparency in financial reporting, contracts, bidding and voting records.

Disputes over the sprawling suburban subdivision's finances ended up in court last year after two board members removed records from the Association of Poinciana Villages offices and transferred APV funds to another bank account to prevent what they claimed was financial mismanagement by First Service Residential, the management company the board majority had hired to oversee day-to-day operations.

APV officials successfully sued and the money and property were returned.

Meanwhile, there have been complaints about residents facing foreclosure because their delinquent accounts were turned over to a private company that allegedly manipulated the legal process to produce fees well beyond the original debt.

"I will be back next session trying again," Cortes said via email. "I will not give up. I have families losing their homes right now and citizens on fixed incomes who need a voice on bad policies governing HOAs "

Cortes said the problem extends beyond Poinciana.

He and LaRosa said although their legislation progressed in the House despite opposition from development interests, it had little support in the Senate.

LaRosa said these changes typically take more than one session to achieve and will have to respond to lobbying from interest groups opposed to changes.

Some Poinciana residents had criticized the legislation because it lacked enforcement.

LaRosa said he deliberately held off proposing enforcement because that involves seeking appropriations for staffing and technology at the Florida Department of Business and Professional Regulation, which would have complicated the bill's review.

Keith Laytham, spokesman for Friends of Poinciana Villages, praised Cortes and LaRosa for their efforts to change the law.

"They tried their best, but the powers to be blocked them,'' he said.

Laytham said the lack of enforcement forces homeowners to take issues to court, as they are in a current suit over access to financial information and election procedures.

They filed the suit in December against APV, Avatar, which is Poinciana's developer, and the Village One Homeowners Association.

The defendants have filed a motion to dismiss the suit, which will be heard April 7 before Circuit Judge Larry Helms in Bartow.

Laytham said the time and legal costs involved in pursuing a suit is a deterrent to most homeowner groups.

"Homeowners don't have that much money,'' he said.