January 9, 2004

 TO: DBPR HOMEOWNERS ASSOCIATION TASK FORCE

Re: Deed Restricted Communities with Mandatory Homeowners Associations
 

Association board members and homeowners should be made aware of their respective rights and responsibilities prior to contract for sale. Full Disclosure NOT Caveat Emptor must be the “Buy Words” in the ‘Sunshine State.’ 

Uniformity of laws, related to the sale of property in common interest communities, is the primary criteria toward implementing regulation of homeowners associations. 

The meeting of the board of directors must be a forum for owners to participate in the governance of their communities. 

Election procedures must be enhanced to insure a fair an honest process that allows absentee and clearly defined proxy ballots to vote for candidates seeking a seat on the board of directors.

Conflict of interest between members of the board, management companies, real estate professionals and attorneys must be disclosed. 

Alternative Dispute Resolution, i.e., mediation and/or non-binding arbitration must be included as a statutory remedy to settle disputes between homeowners associations and homeowners. 

The imposition of sanctions and removal of board of directors for flagrant statutory violations (to be defined) must be enacted. 

Homestead property must not be subjected to a forced sale, i.e., foreclosure, because of unpaid assessments or fines imposed by an association. Other methods of collection can and should be utilized.

All “Governing Documents” must be provided to a prospective purchaser before contract for sale and a disclosure brochure must be prepared; distributed to the general public being enticed to relocate, and available on the regulatory agency Internet Web site. 

                                                            SUMMARY

 These recommendations are not all inclusive of those the task force will consider adopting but are several we believe can deal with some problems asserted by the public that testified before the task force to study homeowners associations and other issues which members, by virtue of their expertise, acknowledged as potential problems in deed restricted communities. 

 During testimony and discussion of task force members it became evident that the State’s current statutory framework is inadequate to guide association boards, homeowners in their daily interactions and external forces actively managing and representing association interests. 

 Residents that testified indicated; the ‘balance of power’ hangs too heavily in the direction of the association board. They attempted to convince task force members that more should be done to safeguard homeowners rights and…. they are correct. 

 In addition to the above general recommendations we urge the task force to agree to recommend meaningful changes to the statutes authorizing homeowners associations that will require more accountability on the part of board members, management companies, et al. 

 It’s important to note that current law has not been applied equally to all types of ownership of property in common interest communities. Therefore, it is paramount that recommendations must include the probability of uniformity that can be an appropriate method to encompass adequate regulation of homeowners associations on a broader scale. 

 One of the most important issues before the task force was oversight of board actions. From testimony given, it appears that some boards are not adhering to current law and therefore some government oversight is absolutely necessary. Specific guidelines must be spelled out in the statutes to guide boards in the exercise of their powers and also recommendations of sanctions be imposed when these guidelines are not followed. 

 In flagrant cases, (to be defined) the task force must recommend that monetary penalties or removal of a board member be authorized. This should send a clear message that due process rights must be observed and that a board’s powers are not to be used capriciously. This oversight will deter improper actions by board members and will help to lessen the need for owners to seek alternative dispute resolution or legal counsel. 

 While more comprehensive recommendations can be prepared, if requested, we believe, generally, these represent some basic principles the task force must consider before drafting its final recommendations. 

 We want to thank all members of the task force for the attention given to the public during their testimony, the lively discussions we heard between members and the time taken from your busy schedules to participate in this process. 

 We believe the co-chair, William Sklar, conducted all of the task force meetings in an exemplary manner, extended admirable courtesy to all public attendees and controlled the tempo of the task force discussions in a professional manner. We appreciate his leadership. Thank you Mr. Sklar!

 Finally, the intent of our recommendations is the hope that the task force recognizes the need to improve the lives of owners and the quality of life in the community as a whole. 

 Thank you for your consideration in these matters. We look forward to reviewing the final recommendations of the task force. 

Sincerely, 

Robert E. Janauskas 
Ocala, FL 

FOR: (the) Consumer Advocacy Network in alliance with: 

Cyber Citizens For Justice 
Property Owners Association in The Villages 
Concerned Homeowners in Partnership 
Fair Housing Alliance of Palm Beach