House committee to suggest changes to laws affecting state's condo residents

 
Article Courtesy of Sun entinel
By Joe Kollin
Published January 30, 2004

Based on "horror stories" of abuses by condominium boards, a state House committee today will file a list of 25 recommendations for changes to state law that could affect the more than 4 million condo residents in Florida.

The Select Committee on Condominium Association Governance heard complaints ranging from a board that foreclosed on a widow who challenged a $25 debt, to ballot stuffing, unfair special assessments and boards that refused to seek bids for major purchases.
There were complaints that the state fails to investigate problems and instead "just sends letters" to boards that act improperly. Sunrise owner Nathan Siegel said condo owners suffered a "lack of democratic rights," while Dania Beach owner Marianne Cerrudo pleaded, "Who can I speak to, to help us live in peace?"

Rep. Julio Robaina, R-Miami, chairman of eight-member committee, called the testimony during statewide public hearings last fall, "one of the most challenging and eye-opening experiences that I and the entire committee will probably experience as members of the Florida House."

To combat the problems, the committee wants the Legislature to consider requiring, among other things, background checks for potential condo board members, financial disclosure by board members, creation of an office of ombudsman to help unit owners, and "clear guidelines" that must be met before a board can impose a special assessment.

Committee members fear, however, their proposals will be meaningless if Gov. Jeb Bush succeeds again in raiding the state condo trust fund, which is paid by condo owners to enforce condo laws and investigate complaints. Bush instead wants to use the money to balance the state budget.

"The governor has proposed a state budget that removes $6 million from the trust fund and we're asking very clearly for that money to remain untouched," Robaina said. "If that funding isn't left in place, the majority of the items we recommend will fall by the wayside."

Committee member Rep. Roger Wishner, D-Sunrise, said $4 million was diverted last year and neither he nor Robaina were able to determine how much remains in the fund. Every condo association in Florida annually pays the state $4 per unit to support the Bureau of Condominiums.

"My belief is that condo owners are being ripped off. They think their money is going toward protecting them and it's not," Wishner said.

LoreetaGoldstone says condo owners need the protection of the bureau.

Goldstone lives in the Hawaiian Gardens complex in Lauderdale Lakes. For the past six years she has been trying to get the bureau to resolve the legality of the power of a master association to assess owners.

"I think the [bureau] has always done its job, but there are just so many cases it has to deal with because boards keep on doing what they want," she said. "If the Legislature doesn't give them ... the money, they can't defend us."

Jan Bergemann of St. Augustine, president of a statewide organization pressing for changes to condo law, said the proposed legislation is good, "but in the end it depends on the wording of the bill and the reaction of all legislators. If there is an agency enforcing the statutes, owners can sleep a lot easier."

Richard Capalbo doubts the proposed changes will make boards more accountable.

Capalbo tried to buy a condo unit in Pompano Beach from a friend but the sale was rejected by the board because the price was too low. The case ended in a lawsuit, which is still pending.

"These condo commandos and their attorneys will not be deterred from their unrestrained abuse of authority," he said.

It was that perception that led House Speaker Johnnie Byrd to create the select committee. A separate task force is studying similar problems with Florida's mandatory homeowner associations.