CYBER
CITIZENS FOR JUSTICE, INC.
RE: SB 2984 - Senate Committee on Regulated Industries April 12, 2004 Dear Chairman, dear Committee Members, My name is Jan Bergemann, president of
Cyber Citizens For Justice, Inc.
Unlike the picture painted of us as “disgruntled homeowners” by those in opposition to a government agency with enforcement power, we represent a broad coalition of support in our alliance with others organizations for meaningful reform of mandatory homeowners associations in deed-restricted communities. Senate Bill 2984 is a bill created by the HOA task force. Although Governor Jeb Bush suggested the creation of this task force we know that the composition of the membership was not a fair and balanced representation of a broad spectrum of our society. Consumers were simply out-numbered and, therefore, on the losing end of the scales of justice from the outset. Unfortunately, the task force was created with one thought in mind: To preserve the status quo that the stakeholders and industry partisans have enjoyed for more than twenty years in Florida. According to their own testimony, these same stakeholders created the existing statutes. And these statutes are creating the many problems owners are facing today! These new proposals in SB 2984 will do nothing to create the harmony the Governor envisioned! It became obvious during our public meetings that other members of the task force didn’t absorb any of the testimony or letters submitted by residents of HOA communities that requested accountability, oversight and enforcement of HOA statutes and disclosure laws. You won’t find any signs of their pleas in this bill! As a matter of fact, you won’t find any of these important provisions in the ‘Community Association’ bill (S 1184 by Senator Campbell) advanced by the same ‘disgruntled attorneys’ who propose this bill before you today. They are definitely not in favor of creating accountability, oversight and enforcement. It seems, smooth sailing if a bill is proposed by the industry, but tough sledding when consumers are seeking meaningful reform? This is further evidenced by what happened
in 1995 when the legislature passed the statutes that are, generally, the
same today. This statement in the current bill represents that effort:
Everybody who is familiar with the problem knows that this statement is absolutely false. There are more lawsuits than ever before pending in Florida courts -- and the number and cost is growing by the day. Open your newspaper or watch the news on TV and you will find headlines like "MISERY BY ASSOCIATION" or "HOA Foreclosure in Palm Beach County." The District where the Senate sponsor of this bill resides is one of the hottest areas for these daily problems. As we speak members of CCFJ Inc. and our many allied organizations are handing the attached petition to the legislative aides of Senator Atwater in his district! We owners need help, not more lawsuits! But once again this bill proposes Alternative Dispute Resolution - a solution we homeowners think is leaving us with an even worse situation than before. Today, you received our proposals for amendments to this bill. One of the key elements of our proposals is to create an Ombudsman's Office, as it is proposed for condominiums in SB 2498/HB 1223. Please note that the DBPR failed to protect the welfare of the condominium owners. Now it should work for homeowners' associations? Many condo-owners are calling for an investigation of the DBPR. Rightfully so! You must take this proposal seriously because there's no doubt: Alternative Dispute Resolution, as proposed in this bill, is detrimental to the welfare of homeowners. We agree that this bill has many good provisions, which would be helpful to sort out some of the existing problems. However, without an agency with enforcement power, your favorable vote on this bill, as written, will only create more lawsuits and more financial disasters for families. Definitely, this bill will not create the harmony envisioned by Governor Bush when he suggested the need for the HOA task force. Incidentally, if Senator Fasano was here today he could tell you about the disaster in a HOA called Nature Watch in Pinellas County. This community resembles a WW II battle zone since certain attorneys and judges have had their say. One hundred and eighty (180) families lost their life savings and their homes are in shambles. The only ones who profited from the disaster: The attorneys! When we purchased our homes, we were led to believe assessments would be used for maintenance and beautification of our common areas. Then why do some associations' budgets show that more than 50% of the income of the association is being paid for legal fees? We want to make it very clear to you today that we aren't here to condemn the legal profession. However, we are aware that certain well-known firms in Florida continue to oppose any consumer-friendly legislation. This has become very evident by the opposition to our Condominium legislation in the House and has become evident to you. Actually, a homeowner-friendly attorney suggested a name-change to this bill if enacted: Attorneys' Full Employment Act! Please note that the biggest opponents of these proposals are the attorney firms who have previously clashed with consumer protection. Members of the law firm of Becker & Poliakoff were found guilty of violating the FDCPA. There is another class-action lawsuit for the same reason pending against the law firm of Katzman & Korr, P.A. In addition to our request to create a
HOA
Ombudsman's Office, we are offering several small but important
amendments to the bill for your consideration:
Please consider these proposed amendments. We have listened long enough to the proposals of these "specialized" attorneys! It's time to listen to reason and common sense. In case you can't find it in your hearts and minds to add the creation of an Ombudsman's Office to this bill, we respectfully suggest to you to postpone a decision about this bill and get unbiased parties to work on this issue. Many homeowners feel we are better off without the provisions of this bill, if no enforcement is provided! "The color of justice is green," according
to attorney Johnny Cochrane.
Thank you for listening to my concerns! Respectfully submitted, Jan Bergemann
IN ALLIANCE WITH:
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