REFORM DREAM LASTED EXACTLY 100 DAYS

An Opinion By Jan Bergemann
President, Cyber Citizens For Justice, Inc.

Published January 18, 2011

The highly praised reforms in S1196 are blowing up into thin air -- one after the other! Latest victims: FS 718.303(3)

(3) If a unit owner is delinquent for more than 90 days in paying a monetary obligation due to the association, the association may suspend the right of a unit owner or a unit’s occupant, licensee, or invitee to use common elements, common facilities, or any other association property until the monetary obligation is paid.

and FS 720.305(2)

(2) If a member is delinquent for more than 90 days in paying a monetary obligation due the association, an association may suspend, until such monetary obligation is paid, the rights of a member or a member’s tenants, guests, or invitees, or both, to use common areas and facilities .........

It was from starters nothing but a feel-good provision that promised little help in solving the budget short-fall caused by many owners not paying their dues. Most of the folks not paying their monthly dues have much bigger problems than just not being able to use the pool -- or some other amenities normally provided by the association.

This bill [S1196] was enacted on July 1, 2010. Exactly 100 days later Judge Robert A. Mark from the United States Bankruptcy Court Southern District Of Florida -- Miami Division -- signed an ORDER [CASE NO. 10-38024-BKC-RAM] stating that the law has no effect on people who file for bankruptcy protection, most likely the people that owe the most to the association. In this order, signed by Judge Robert A. Mark on September 8, 2010 the judge made it abundantly clear that the condo association, that had suspended the debtors' use rights, is in VIOLATION OF AUTOMATIC STAY.

Here are the important paragraphs of this ORDER:

3. Counsel for the association, 100 Hidden Bay Condominium Association, Inc. stated that in the event these past due association assessments were paid, then the suspension of privileges would be lifted. This is in effect an act of coercion to compel the Debtors to pay the past due assessments.

4. This Court finds that the act of the suspension of privileges as described above, post petition, is a violation of the automatic stay. This court does not find that it is a willful violation, which would give rise to the award of attorney's fees and/or punitive damages. This is based upon the fact that the new Florida Statute was effective on July 1, 2010. There still may be some confusion with reference to the Statute. Accordingly, this court declines to award attorney fees and sanctions.

6. The association, 100 Hidden Bay Condominium Association, Inc., shall immediately reinstate all privileges and other accommodations afforded to all other owners that are in good standing.

Another one of last year's "GREAT" reforms popped like a balloon. The same so-called advocacy groups -- CALL and CAN -- that pushed the "helpful changes" (see above) last year are coming up with more "excellent ideas" for this year. One example: "Set the quorum requirement for condominiums at the same 30% level found in the HOA Act and allow HOA owners to speak for 3 minutes on all agenda items at Board meetings."

Last year's reforms didn't really help to put more money in the association coffers, but it surely increased the legal bills. Now we see more of these feel-good proposals. Changing quorum requirements for condos to 30% and allowing homeowners to speak for 3 minutes at board meetings won't stop associations -- and their owners -- from going bankrupt.

Condo owners who find red tags at the doors -- courtesy of unpaid utility bills -- have more problems than quorum requirements. We need real reforms, reforms that help the owners that bought into these associations in good faith. Owners need help to deal with the financial problems created when they find out that they have to pay for problems caused by the bankers’ greed. We don't need more good families dragged into the financial quagmire caused by an association system that doesn't protect owners who fulfill all their obligations.

DESPERATELY NEEDED COMMUNITY ASSOCIATION REFORMS