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An
Opinion By Jan Bergemann
President, Cyber Citizens For Justice, Inc.
Published
April 26, 2010
Association
board members and owners are desperately hoping that the legislature will
take the necessary steps to help associations with the crisis caused by
unpaid dues and foreclosures. Anything that helps would be appreciated!
But shameless attorneys and lobbyists are using the inexperience of these
board members to promote a bill (H561/S1196)
that has more and more turned into a LICENSE TO STEAL.
The
bill will help service providers to increase their profits, but will do
absolutely nothing to help associations put more money in the coffers.
Right now money is desperately needed to pay bills without further
devastating the budgets of the owners who are still able to pay the
maintenance fees.
Thursday
night CBS 4 News --
Miami
-- aired a report headlined:
New
Condo Bills Could Help Associations Clean Up
I
could only feel sorry for the two board members interviewed by reporter
David Sutta. Just watch the video. Both Oscar Garcia and Wendy
Murray are convinced that this bill would help them put more money in
their associations’ coffers to pay overdue bills. Why?
Because that is exactly what they have been promised by attorneys
and lobbyists in order to get their help to pass this special interest
bill.
Much
worse was the interview with attorney Ben Solomon from the law firm of Solomon & Furshman, LLP.
Solomon is most likely one of the people who profited most from the
condo crisis in
Florida
. He made a name for himself by pushing receivership for units not paying
dues. While this bill may help in some limited cases, it surely isn't a
solution. Being an attorney, Solomon should know better than what he said
in his statement: "Legislation like this will finally start
addressing these problems and it's going to take that to get associations
revived and back on their feet again." It will surely add to his
bank account!
The
report specifically mentioned three provisions in H561/S1196 that
would help to increase the cash flow in associations.
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Condo Associations Collect 12 months
of past dues (currently six months).
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Associations can prohibit use of common areas (Pools, gyms, and tennis courts).
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Associations can collect rent from delinquent owners.
This
may look good on first view, but once you look at the wording of the bill
you will realize that it does next to nothing to help associations deal
with the disaster of unpaid dues and foreclosures. And the attorneys know
this full well!
Let's
take a close look at these reforms so highly praised:
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Condo Associations Collect 12 months
of past dues (currently six months). This is the language
used in FS 720.3085, a change that was added in 2008. The joy lasted
only a very short time, actually until the 2nd
District Court of Appeals turned down these provisions in FS 720.3085
[See: Coral
Lakes Community Association, Inc. v. Busey Bank, N.A.]
Adding this provision
to FS 718 means that some poor condo owners -- most likely located in
the district of the 2nd DCA -- will be used as guinea pigs and will
lose their shirts trying to use this "legislative reform." Instead
of getting money, they will face huge legal bills.
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Associations
can prohibit use of common areas (Pools, gyms, and tennis courts). This
will actually make some owners feel better, but it surely will not
force owners to pay their dues. And it surely will not help to put
more money in the association coffers.
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Associations
can collect rent from delinquent owners. The
language proposed in this bill makes it a still more complicated
issue, even giving the associations eviction rights. First requirement
to use this provision: Hire an attorney to enforce this law --
evictions cost money! The language used in this provision is very
complicated and may easily be challenged in court. We have a renter's
market in
Florida
. If a renter feels harassed, he/she will move after not paying rent
for two months to recover the security deposit and the association
will have another unit not paying dues -- and will be stuck with the
legal bills. A renter living in a unit already in foreclosure knows
that his/her days as renter are numbered anyway. What's the incentive
for a renter to stay and pay -- besides being harassed by court
papers?
Add
all the other horrible provisions contained in this bill -- please read:
WHY
COMMUNITY ASSOCIATION BILL H561/S1196 WILL NOT HELP ASSOCIATIONS/OWNERS!
and
you have a bill that will give certain board members and service providers
a LICENSE TO STEAL, increase the cost of association living for
owners -- and will do
ABSOLUTELY
NOTHING TO HELP ASSOCIATION BOARDS TO DEAL WITH THE CRISIS OF BUDGET
DEFICITS CAUSED BY UNPAID DUES AND/OR FORECLOSURES!
THIS
BILL SURELY IS FAR FROM THE ASSOCIATION REFORMS COMMUNITY ASSOCIATIONS
DESPERATELY NEED!
Sorry
community association folks, you've been had again!
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