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Article
Courtesy of The Sun Sentinel
By Daniel
Vasquez
Published March 23,
2011
A new Florida bill seeks to deregulate condo
community association managers and dismantle the state's arbitration
system for settling owner and board disputes out of court.
What would that mean? Community association managers and companies, which
often manage the finances and day-to-day operations of communities, would
no longer be required to be licensed by the state nor report crime
convictions to state officials, critics say. In other words, virtually any
one – regardless of qualifications or criminal background -- could
become a manager in charge of what could be millions of dollars worth of
property and assets.
In addition, condo owners and board members would be left with fewer
consumer protections and assistance at a time when such communities face
dire financial times due to widespread foreclosures and a down real estate
market. It would also mean the end of the agencies charged with enforcing
state condo laws and educating owners and board directors. The state does
not have such regulatory boards for homeowner associations.
"The bill itself is total chaos," said Jan Bergemann, president
of the Cyber Citizens for Justice, the state's largest grassroots
community association advocacy group. "In short it removes what
little enforcement of Florida statutes there ever was."
The changes are proposed as part of House Bill 5005, which aims to trim
government agencies and resources in general. It would also eliminate
regulation of auctioneers, talent agents, home inspectors, mold assessors,
movers, geologists, among other professionals. It originated in the
Economic Affairs Committee and was approved by House Speaker Dean Cannon,
R-Winter Park.
"This legislation proposes to repeal licensing and examination
requirements and penalties for numerous specified professions,
occupations, and businesses currently regulated by the state," said
Katherine Betta, spokesperson for Cannon. "By approving this bill,
the speaker indicated his overall support of the concept, but now it is
the work of the various committees to ultimately determine which items
should be included before the bill comes to the House floor."
If passed as is, the bill would shut down the Division of Florida
Condominiums, Timeshares and Mobile Homes, the consumer protection agency
which enforces community association law (with the exception of homeowner
communities). It would also close the Office of the Condominium Ombudsman,
which seeks to educate owners and board members on state condo, co-op and
timeshares laws via phone calls and/or free or low-cost classes open to
the public. The legislation would also end the division's arbitration
system. Florida law currently requires parties involved in owner and board
of director disputes to meet in arbitration before a lawsuit can be filed.
That would go away, sending disputes to attorneys and judges, say experts.
"The judiciary has enough on its plate with the foreclosure crisis,
budget cuts, staff cuts, etc., as well as what looks like additional
budget cuts coming this year," said Howard J. Perl, an attorney with
the community association law firm Katzman, Garfinkel and Berger, who
tracks such legislation. "If this bill is allowed to become law, this
will potentially add thousands of cases to a judicial system that is
already overburdened, underfunded and understaffed."
Tracey S. Schnaitman, owner of a Broward County
management company, added: "I believe that the division and
the ombudsman office should remain open. I want my industry regulated so
everyone plays by the rules and does right by their clients.
"I don't want to see unlicensed and unknowledgeable people getting
paid for doing the work that we licensed and experienced professionals are
doing. Just like doctors, lawyers and other professions, this field should
be regulated by the State of Florida."
Daniel Vasquez can be reached at [email protected]
or 954-356-4219 or 561-243-6686. His condo column runs Wednesdays in
Your Money and at sunsentinel.com/condos. Check out Daniel's Condos
& HOAs blog for news, information and tips related to life in
community associations at www.sunsentinel.com/condoblog.
You can also read his consumer column Mondays in Your Money and at www.sunsentinel.com/vasquez.
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