Regulating Florida HOAs - Draft Report Issued by OPPAGA
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The Office of Program Policy Analysis & Government Accountability (OPPAGA) Issues Report Outlining Various Options for Regulation of Homeowners Associations (HOA).
OPPAGA evaluates performance and accountability of various governmental activities. The Draft Report finds that the legislature showed significant interest in regulating Florida's Mandatory Membership Homeowners Associations over the past several years. In 2007 a Senate interim study recommended alternative dispute resolution mechanisms to facilitate resolution of homeowner issues. The 2008 Select Committee on Condominium and Homeowners Association Governance recommended increasing enforcement, mandatory education for board members and allowing local law enforcement to access association records during an investigation. In 2009, the Community Association Living Study Council recommended immediate legislative action to curtail the powers of homeowners associations.
The Draft Report describes several options available to the Legislature, to wit:
| OPTION | ADVANTAGES | DISADVANTAGES |
| Maintain Status Quo | No Cost |
Inability to effectively calculate # of HOAs and homes governed by HOAs Remains difficult to determine extent of problems |
|
Collect Information |
Allows Legislature to estimate needs/costs of additional services Department of State can perform this service without additional cost |
Requires HOAs to report information |
| Expand Service of Office of Ombudsman to HOAs |
Disputes are similar - staff already has expertise Resolutions without expensive pre-suit mediation or litigation Education designed to minimize disputes Provide tracking data
|
Unknown Cost - needs source of funding |
| Regulate Like Condos/Coops |
State mediation/arbitration services may reduce litigation Education could minimize disputes More uniform enforcement of laws |
Unknown cost - 2006 study estimated $10 million in funding required annually |
The Ombudsman's Office reports that most of the complaints about HOAs concern properties in South Florida. The complaints are largely similar to Condo/Coop complaints - the majority of which include lack of access to association records, election disputes, selective enforcement of covenants and the inability to participate at meetings.
Is it time for Florida to provide more oversight to HOAs? Would Florida homeowners benefit from the services of the Ombudsman or the DBPR? Would the costs justify or outweigh the benefits?
There are a number of bills filed for consideration during the 2010 legislative session - some of which include additional regulations for HOAs. Please refer to other posts on this site for information about pending bills or visit CALL to participate in the legislative process.
My POA Board is putting me at financial risk. They are negligent and arrogant. I can’t do anything about it. I don’t like it one bit. I don't have the money to drag them into mediation or court. I live on social security.
Here are a few solutions that I would like to put on the table.
1) Hold a hearing on this matter and invite my POA Board to defend their arrogance in front of a committee. I think that they would get an ear full.
2) Education and training of POA Board Members. Change chapter 617 or 720 to require that at least one active Board member hold a CAM license.
3) Require newly elected POA Board members to certify in writing that they have read the bylaws, restrictions, chapter 617 and 720 of the Florida Statutes.
4) Do what is necessary to allow private insurers to provide insurance coverage that can be purchased by individual members of homeowners associations such as myself, to purchase insurance that would provide me a measure of financial protection against the negligence or arrogance of POA Board actions or non-actions.
5) Require that POA Board fund Liability, Flood and Building insurance and insure that the POA Board complies with all endorsements that are part of the written insurance policy or contract.
As an appraiser specializing in valuation of Homeowners Associations and Condominium Associations for insurance purposes, I feel strongly that HOA & POA associations would benefit greatly from uniform insurance requirements modeled after Florida's Condominium Statutes. Most HOA & POA documents poorly address their insurance requirements.
As a licensed CAM I encourage our legislators to act on measures to regulate HOA,s as they do Condominiums. As I see it there are many areas in the statutes that leave HOA homeowners at risk. In many cases the HOA statues are too "loose". Examples are elections, certification of Board members to have a knowledge of their docs and statute, delinquent assessment collection, lack of reserves, enforcement of violations and many other things that are better contolled under the Condominium statutes. It's about time that we have statutes that are in line with each other. As a manager this would make our efforts much easier and eliminate any mistakes or "guesswork" in trying to determine how to act in some circumstances.
Several months ago I would not vote on the minutes on a committee because of an action in the minutes meant a violation in State and Federal pesticides laws. The Chairman of the BoD did not agree it was a violation and let me abstain. But, he said never again. The association got a cease and desist order to stop the illegal pesticide application by non-license applicators. This could have resulted in a fine and a misdemeanor offense.
Yesterday the Board of Directors were asked to vote on another action that I felt was illegal. The Chairman/President said we have the authority for such action. Please no legal advice consulted. If I am correct it could result in third degree felony charges? They would not let me abstain and the Chairman voted no for me.
My question is does a member of the Board of Directors of a homeowners association have to vote yes or no on an action they feel is illegal when abstaining is not allowed?
I live in a neighborhood that has two separate HOAs. One is designed for all residents encompassing all neighborhoods. The second is the HOA formed for the maintenance-free neighborhood. The Board for two HOAs have called the first annual meeting scheduling both meetings at the same date, same time, and same place meaning the meetings are running concurrently. The developer fully controls both boards. Is there anything in the Florida Statues that prohibits holding two separate HOA meetings concurrently? Neither sets of the documents cover this particular scheduling issue.
One of the owners at the condo that I live in is considering the job of being our Manager, many owners object to this in anticipation that this could produce conflicts of interest, in addition to the fact that his wife abuses her living here to promote her real estate agenda of recruiting possible sales. Is there any law that governs this?? We know that the Board is responsible for hiring the Manager, this individual currently serves on the Board.
I am a Florida Cam since 1991. I worked as condominium manager and also in the property management industry that included privately owned mobile homes community. Currently I live in a nice community make up of 6 condo associations and unincorporated villas. The HOA is the association board for those unincorporated villas and also the community at large which includes the condos. We are also a CDD community. The legislators must regulated these types of HOAs more closely to condo laws in regards to finances, rules and enforcement, documents amendments, elections and almost everything else. Especially, when condos are part of the community. This community although well intended has committee after committee of persons who do not know or understand the Florida statues concerning either Chapter 718 or 720. The lack of legislation has allows this HOA to change their documents without necessary voting of members, ignore condo laws, want to insist that they govern all including condos to their rules regardless of condo law, and change the original hierarchy of the community board. There are many conflicts in the law especially concerning architectural control of common areas. The meaning of community common area vs. parcel common area of condos. Year ago HOA were established for deed restricted communities which all were automatically members but they did not have conflict of interest as does this type of HOA. Since they charge dues by the per door although condos pay thru the association they want to go directly to unit owners with violations or other matters rather than coming to the condo association first. Than on top of which we are in a CDD which operates and maintains the community. Again there are assessments, but no real clear line of where one begins or the other ends. This is in part because husband and wife are allowed to serve on one board HOA while the other is allowed to serve at the same time for the other CDD. They are also no DPR to go to large complaints as in the past with chapter 720 which for the most part is now chapter 723. Otherwise the legislators should rule that if the community consists of both condos and HOA there has to be a distinction and the overall community HOA should operate under chapter 718.
i am a former president of the poa inport saint lucie fl.34952. my question is how can a home owner who is not a legal resident be a board member plus he is vice president. he spends only 4 months a year at this home plus he not a legal resident of florida.how can this be stopped our covvenants has no ruling i was wondering if the state statues has a point of view.
i am a former president of the poa inport saint lucie fl.34952. my question is how can a home owner who is not a legal resident be a board member plus he is vice president. he spends only 4 months a year at this home plus he not a legal resident of florida.how can this be stopped our covvenants has no ruling i was wondering if the state statues has a point of view.
RESPONSE: Section 720.306(9), F.S. says that all members of the association are eligible to serve on the board. If the owners object to non-resident board members, they will simply vote for candidates that reside in the community. However, in my experience there are some very dedicated and responsible board members that live a part or majority of the year elsewhere. The standard should be based upon how much effort the owner will put into board service, not solely where they live.
I am vp of our assocation our president just up and moved out without telling anyone. My question is. What happens to the hoa if you cannot get people interested to do anything about the deed restrictions and cannot get enough people for a quorum to even majority vote and what happens if the hoa dissolves. Does anyone have an answer.
RESPONSE: Lack of volunteers is a difficult, but frequent, problem for community associations. Any owner can petition the Court for the appointment of a receiver - but is that the best for the community? It may be, depending on the circumstances. Whoever is left on the board should discuss options with Association counsel - as there are legal implications of failing to continue association operations and there may be exposure to liability as well.
I am President of a condo in Aventura, FL. We are a member of a Master Association that we contribute monthly maintenace to for our Spa, Tennis Courts, Pools and other common areas. They have a Social Committee that is asking for a $20,000 budget to subsidize their expenses for 2011. The money goes to lower the costs of the Social events that they plan throughout the year. They have a New Year's eve party that will only accomodate a maximum of 120 persons and our Master has 1268 total units. This is common to all of their Social events. I don't think it is legal for them to take our monthly maintenance for the upkeep of our common areas and put it toward parties, music, drinks and a good time for a handful of people at the expense of the majority. I have been told that this is not a legal expense. Can you please advise if this is legal???
Thank you!
RESPONSE: The governing documents can include many types of expenses in the definition of "common expenses". While party expenses are not addressed in the statute, they may be properly included in the budget if the documents so provide.
Condo Woodhaven where Board Members harass owners??
Wht is the recourse???
RESPONSE: You may contact the Florida Ombudsman's office or the Division of Florida Condominiums, Time Shares and Mobile Homes for assistance.
In the state of Florida are you allowed to be on a CDD board and an HOA board in the same community? The CDD and HOA are different entities but provide service to the same residents. Can one represent both?
RESPONSE: Eligibility criteria would be set forth in the governing documents. The HOA statutes do not preclude a board member from also serving on a CDD board.