Capitol City Task Force
TO:  Interested Parties

DATE  25.May, 2000

SUMMARY
      Citizens purchasing homes in Florida planned developments are usually bound to belong to a neighborhood association as required by deed restrictions on their property.  While persons in condominiums, mobile homes, and time-share properties have a refined law governing their associations, others living in residential properties have had little or no such regulation. Many abuses in these "homeowner associations" exist and the only option for correction is through the Florida Circuit Courts.  This approach is both costly and untimely. For the last six years or so, an attempt has been in progress to rectify the situation. The major concern is the cost to the Florida citizens who must bear the support of the courts at $1,000 an hour. Several cases have incurred court costs of $300,000 that citizens are mandated to pay through property taxes. Following are details of the happenings in the 2000 Legislature concerning these associations and attempts to improve them.

BACKGROUND
In previous legislatures, bills were passed that amended Chapter 617 F.S., the Not for Profit Corporation Act, by adding sections 617.301 through 617.312, referred to as "homeowner" law. The Department of State had authority for this Chapter. However, upon questioning, the Department of State answered they were a registration operation only and they had no implementation responsibility.  In 1999 a FSHL bill was passed that recommended either the implementation of the subject legislation or to transfer same to the Department of Business and Professional Regulation that had working rules and procedures for condominiums, mobile homes, and time share properties in place.   However, the recent Florida Constitutional Revision enacted changes affecting the Department of State. A Constitutional Task Force drafted changes necessary to implement the Constitution provisions. The Task Force recognized the situation in homeowner associations and recommended transferring the subject provisions to a new statute apart from the Department of State. From the Legislature the Task Force members were:
Senator Ginny Brown-Waite
Representative Dennis Jones
Senator William "Doc" Myers
Representative Bill Posey

PROPOSED LEGISLATION
To implement the provisions outlined in the Task Force Report, Senator Brown-Waite filed bill S-I 194 and in the Government Operations Committee Representative Posey introduced a committee bill PCB 05. At the hearing in the Government Operations Committee the CCTF objected to the revision process that merely renumbered Chapter 617.301 through 617.312 to a new Chapter 720; not all the provisions located elsewhere in Chapter 617 were included. Representative Posey agreed and, since he was anxious to clear up homeowner considerations, stated that a summer workshop would do further clarification. Several aspects of omission are limitations of officers in ultra vires actions and the provisions establishing removal, election, replacement, and appointment of officers. These are grave shortcomings and need immediate correction. The House bill was withdrawn and the Senate bill S-I 194 was enacted into law, awaiting the Governors signature.

CURRENT STATUS OF LEGiSLATION UPDATE
Upon checking with the various Government offices, there is no plan at this time to implement a workshop or other approach to correct the immediate deficiencies and to consider further improvement in the new Chapter 720 Legislation. The Civil Justice Committee Chaired by Judge Monroe Treiman and the Real Property and Probate Committee chaired by Jan Bergemann have jurisdiction of this situation. In its support role, the CCTF will (1) contact the Speaker of the House and President of the Senate, and (2) Petition the Executive Branch to appoint a working group to recommend legislation to the 2001 Legislature. The effective date for the new Chapter 720 is 1 July 2000.

Bill Strickler, Chairman CCTF
6420 Count Turf Trail
Tallahassee Florida 32308
(850) 894-6092 Fax 894-6093

[email protected]

 Jan Bergemann
3345 Kings Road South
St. Augustine FL 32086
(904) 794-0888 Fax 797-6227

[email protected]