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New rules chip away at homeowners' rights |
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Courtesy of The Orlando Sentinel Published June 26, 2011 New laws that take effect next week for homeowner and condo associations cut back on the rights of owners and renters alike while shoring up community associations' ability to collect delinquent dues and fees. Florida Gov. Rick Scott signed into law this week several measures that build on rules enacted last year giving subdivisions and condominiums with community associations — home to an estimated 5 million Floridians — more muscle in dealing with property owners who don't pay maintenance fees or special assessments on time. Previously, associations could restrict access to community amenities only if a property owner was 90 days or more late in making required payments. "It's just another bill taking away owners' rights and making association service providers rich," said Jan Bergemann, president of DeLand-based Cyber Citizens for Justice Inc., a property-owners' advocacy group. "It's just another bill that will create more litigation, at the expense of the owners that are still paying dues." Condo and homeowner associations can start demanding full monthly rent from tenants whose landlords fall behind in maintenance payments. The previous version of that law was somewhat vague about how much associations could collect from tenants in such cases, experts said. The new laws also take away the right of some owners to vote in board elections. Unlike taxpayers, who can still vote in local elections even if their property taxes are overdue, homeowners may be blocked from voting on their association's leadership if they are three months or more late with their dues. The new measures give associations authority to pull voting rights following a notice and hearing. "The Legislature created another dictatorial tool to abuse unit owners and-or renters," Bergemann said. Landlords are banned from punishing tenants who comply with the law and turn their rent over to their community association, but Bergemann said renters could still lose their security deposits and face other hardships. Sarasota lawyer David Muller, who specializes in representing community associations, is aware of such concerns but said the new laws are necessary to help the homeowner groups collect much-needed dues. Historically, associations had such low delinquency rates that they rarely took added measures to collect unpaid dues. But as real-estate values have plummeted in recent years, investors and other buyers have stopped paying association fees in large numbers or have walked away from properties altogether. "I know about the other side of the argument," Muller said. "From the association standpoint, any tool they have to get paid back these delinquencies is critical. These associations are hemorrhaging money. This crisis isn't going to go away, so give the associations the tools they need to collect." Last year, faced with mounting complaints from community associations struggling to collect dues from landlords and their tenants, state lawmakers gave associations the power to evict renters from homes or condo units with unpaid dues. But it was unclear how much an association could collect from a tenant. "When someone hasn't paid in a year and half, and they're out drinking margaritas at the swimming pool, it kind of rubs people who have been paying the wrong way," Muller said. The new measures do offer property owners some new allowances. For instance, they will be able to speak at association board meetings for three minutes on any agenda item. Previously, they were allowed to address only items that they had requested be placed on the agenda. Bergemann described that concession as a "breadcrumb" for property owners and said it's basically offset by a new provision that allows condominium boards to close meetings to discuss "personnel matters." That provision could be broadly interpreted by condo or homeowner boards, giving them a ready-made excuse to keep property owners from attending meetings. Muller, the association lawyer, said homeowner groups already have the power to close meetings under such circumstances; that the new laws simply extend that right to condominium associations. The reason for doing that: It had become so difficult for condo boards to discuss such topics as job candidates' pay levels and references, he said, that some boards were assembling fewer members than required for an official meeting so that they could talk in private without violating the law. |