Palm Aire owners will pay up for delinquent fees for other owners

Article Courtesy of The Pelican

By Judy Wilson

Published April 3, 2009

  

"Biggest problem is getting across that you pay for people that don't" - George Cuolahan

 

A financial downside of condominium living arrives in the mailboxes of Palm Aire's largest homeowners' association this month. It's an assessment for a share of the $425,000 in delinquent maintenance fees owed by the residents. The share will vary, computed on the number of delinquent units in a building and the square footage of the condo unit.

 

In one building, a 3/2 unit owner is paying just $135. In another with more delinquencies, the assessment runs $714 for a 3/2 unit. Payment can be made in thirds: in May, August and November.

 

The hardest thing Monday, at a meeting of Palm Aire Country Club Homeowners Association I, was educating residents as to their obligation. "Biggest problem is getting across that you pay for people that don't," Association President George Cuolahan said. "A condominium is owned in common."

 

Association I is the largest of Palm-Aire's 24 homeowners associations. There are 961 'doors' there in 18 condominium buildings. Each building is financially independent of the others, but the Association provides the maintenance for each and pays for the services.' Monday night its board voted unanimously to assess its unit owners.

 

Vice Mayor George Brummer terms the situation - a product of foreclosures and

loss of jobs - "a common disease now." He, too, believes people don't "realize they are responsible collectively."

 

At Monday's meeting some new residents complained that they bought in unaware of a pending financial obligation. Claudia Keller is a new board member of Association I and said the news of an assessment seem to come as a shock. "I believe unit owners buy unaware of their responsibilities. This is a population that is completely surprised. "

 

It takes up to two years for a bank to foreclose and during that time maintenance fees may be paid late nor not at all. Brummer said there is a pending law that would make the banks responsible for maintenance before the foreclosure is completed and that might help association finances.

 

Resident Ruby Glickman thinks the state should step in to alleviate the problem since "government has gone out of its way to give money to industry." Glickman and his wife are 18- year residents of Palm-Aire from New York City where he worked for ABC TV, then owned a restaurant, then bought and sold antiques. "It's one thing when people lose their jobs and can't pay, but people here are making a business of this," he said.

 

Glickman says people buy units and then leave them .with a renter or a family member who legally is not responsible for fees. By law, the condo association cannot deprive individual residents of services.

 

"Now that we see what is happening, we talk about leaving Florida ," Glickman said. "And I feel sorry for people who have no where else to go."

 

If Glickman looks to Tallahassee to ease the situation, Cuolahan who also heads up the Palm Aire Council of Presidents, is not so confident in lawmakers. He cites two statutes that he feels are unjust and make little sense. Florida Statue 718 states that both a husband and wife can run for a condo board seat, but if both are elected, one must resign, and another provision of the same statute that sets board terms at one year, unless association members vote for two year terms. Cuolahan said. "It's not fair to force an election every year."

 

The actual number of foreclosed units in Palm-Aire is something no one wants to discuss but around the Council table it is no longer news. Coulahan is attempting to find solutions and recently discovered that homeowners associations can initiate foreclosures without waiting for bank action, a move that might spur the banks to act faster or the unit owner to find the necessary money. Each association, however, has its own DNA, he said. Each is different from the others and each has to deal on its own terms.


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