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Association Publication of Deadbeat List & Third-Party Purchaser Assessment Liability: by KBRLegal.com

Association Publication of Deadbeat List & Third-Party Purchaser Assessment Liability: by KBRLegal.com

Association Publication of Deadbeat List & Third-Party Purchaser Assessment Liability: 

by KBRLegal.com

 

Association Publication of Deadbeat List & Third-Party Purchaser Assessment Liability: 

Two New Cases Board Members and Managers Need to Know About

 

CASE No. 1: On June 12, 2020, the Florida’s Fifth District Court of Appeal (“5th DCA”) entered its opinion in Latheresa Williams, On Behalf Of Herself And All Others Similarly Situated v. Salt Springs Resort Association, Inc., and Bosshardt Property Management, LLC., Case No. 5D18-3913 (Fla. 5th DCA 2020), The holding of this case echoes advice I have all too often provided to board members and managers to NOT publish what is commonly referred to as a “deadbeat list.” This type of list is posted in the community and identifies each debtor’s name and sometimes the assessment balance past due, too. No good ever comes from publication of such a list. In fact, the Florida Consumer Collection Practices Act (the “FCCPA”) forbids it if such publication of the deadbeat list is to harass and/or annoy the debtor.

 

More specifically, section 559.72, Florida Statutes, provides in relevant part that “[i]n collecting consumer debts, no person shall… [p]ublish or post, threaten to publish or post, or cause to be published or posted before the general public individual names or any list of names of debtors, commonly known as a deadbeat list, for the purpose of enforcing or attempting to enforce collection of consumer debts.”

 

In this case, the plaintiff was seeking class action status for all others similarly treated. This could lead to tremendous liability should discovery later evidence that the association and/or its management company regularly published deadbeat lists. At trial, the court had granted a motion to dismiss filed by the association based on a prior case, Bryan v. Clayton, also a 5th DCA case dating back to 1977 where the Court held that maintenance assessments were not “debts” for purposes of the FCCPA. In order to re-consider the prior Bryan decision, all of the 5th DCA sitting appellate judges participated in the Williams case, a process legally known as an “En Banc” style of review.

 

The Court in Williams took note that the FCCPA is designed to protect consumers and does not limit unlawful activities only to “debt collectors,” but rather to “all persons” involved in the collection of a debt. By way of contrast, the Federal Fair Debt Collection Practices Act (FFDCPA) applies only to debt collectors, which excludes the association and arguably its management company, and not to “all persons” involved in the collection of a debt, as in the FCCPA.

 

Under the prior Bryan holding, a past due assessment obligation was not even considered a “debt” for purposes of the FCCPA and the FFDCPA. In the recent Williams case, the Court went to great lengths to explain that, in fact, an association assessment obligation “is a debt which arose out of an obligation by a consumer out of a money, property, insurance or services transaction which is primarily for personal, family, or household purposes” and is therefore subject to FCCPA.

 

Thus, the Court remanded the case back to the trial court for further proceedings. While, its unknown how the plaintiff’s attempt for a class action certification will resolve, it is extremely likely that one or more defendants will be found to have violated the FCCPA for having published the “deadbeat list.” The takeaway from the Williams case is to never, ever publish a list of association debtors. This does not at all mean that the board cannot be provided a list of those members delinquent in their assessment obligations. However, it does mean such a list should not be made readily available to the membership by posting or mailing, etc.

 

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CASE No. 2: On May 20, 2020, Florida’s Third District Court of Appeal entered its opinion in Old Cutler Lakes by the Bay Community Association, Inc. v. SRP SUB, LLC, Case No. 3D19-528 (Fla. 3d DCA 2020) regarding the liability of a third-party purchaser at a mortgage foreclosure sale for assessments that came due prior to the third-party acquiring title to the property. The Court’s holding in this case is in line with its prior holding in the case of Beacon Hill Homeowners Association, Inc. v. Colfin Ah-Florida 7, LLC, 221 So. 3d 710 (Fla. 3d DCA 2017), which based its decision on the landmark case decided by Florida’s Fourth District Court of Appeal in Pudlit 2 Joint Venture, LLP v. Westwood Gardens Homeowners Association, Inc., 169 So.3d 145 (Fla. 4th DCA 2015).

 

In the Old Cutler Lakes case, SRP SUB, LLC (“SRP”) was the successful bidder at a foreclosure sale on a first mortgage held by Wells Fargo. After obtaining title by a certificate of title, SRP filed an action for declaratory relief seeking a determination as to its liability for assessments that accrued prior to the issuance of the certificate of title. In relevant part, the Declaration of Covenant and Restrictions of Old Cutler Lakes by the Bay (“Declaration”) provided the following:

 

The sale or transfer of any Lot pursuant to the foreclosure or any proceeding in lieu thereof of a first mortgage meeting the above qualifications, shall extinguish the lien of such assessments as to payments which became due prior to such sale or transfer.

 

This language is similar to the language contained in the declarations in the Beacon Hill and Pudlit 2 cases. In these cases, the courts applied a constitutional principal prohibiting the impairment of contracts in deciding that the statutory safe harbor did not control over the provisions of the declarations where the statute did not require such application and the declarations did not contain “Kaufman” language, which has the effect of making amendments to the Florida Statutes automatically applicable to a declaration as they are “amended from time to time.” As the provisions of the declarations expressly created rights for third-party purchasers, the third-party purchasers are “intended third-party beneficiaries” to such provisions which rights cannot be impaired pursuant to the constitutional principal prohibiting the impairment of contracts. In following the holdings of the Beacon Hill and Pudlit 2 cases, SRP was found not liable for any of the past due assessments that accrued prior to the issuance of the certificate of title. Thus, as with many declarations which have not been amended since their creation by the community’s developer, these, as yet to be amended, declarations may provide for a complete wipe out of all assessments that accrued prior to the transfer of title as a result of a mortgage foreclosure action or by deed in lieu of foreclosure.

 

The takeaway from the cases discussed above emphasizes the importance of reviewing and updating the association’s declaration, with the guidance of your association’s legal counsel, to ensure that it provides for necessary and available protections for the association and its members, including the use of “Kaufman” language, if appropriate to collect as much overdue assessment revenue as possible.

Rembaum’s Association Roundup  The community association legal news that you can use!

Kaye Bender Rembaum is a full service commercial law firm devoted to the representation of community associations throughout Florida. Under the direction of attorneys Robert L. Kaye, Esq., Michael S. Bender, Esq., and Jeffrey A. Rembaum, Esq., Kaye Bender Rembaum is dedicated to providing clients with an unparalleled level of personalized and professional service regardless of their size and takes into account their individual needs and financial concerns. We have offices in Broward County (Pompano Beach), Palm Beach County (Palm Beach Gardens), (Hillsborough County) Tampa, and office locations in Miami-Dade County by appointment.

Read More

 

 

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Association Publication of Deadbeat List & Third-Party Purchaser Assessment Liability: by KBRLegal

Association Publication of Deadbeat List & Third-Party Purchaser Assessment Liability: by KBRLegal

Association Publication of Deadbeat List & Third-Party Purchaser Assessment Liability:

by KBRLegal

Two New Cases Board Members and Managers Need to Know About

 

CASE No. 1: On June 12, 2020, the Florida’s Fifth District Court of Appeal (“5th DCA”) entered its opinion in Latheresa Williams, On Behalf Of Herself And All Others Similarly Situated v. Salt Springs Resort Association, Inc., and Bosshardt Property Management, LLC., Case No. 5D18-3913 (Fla. 5th DCA 2020), The holding of this case echoes advice I have all too often provided to board members and managers to NOT publish what is commonly referred to as a “deadbeat list.” This type of list is posted in the community and identifies each debtor’s name and sometimes the assessment balance past due, too. No good ever comes from publication of such a list. In fact, the Florida Consumer Collection Practices Act (the “FCCPA”) forbids it if such publication of the deadbeat list is to harass and/or annoy the debtor.

 

More specifically, section 559.72, Florida Statutes, provides in relevant part that “[i]n collecting consumer debts, no person shall… [p]ublish or post, threaten to publish or post, or cause to be published or posted before the general public individual names or any list of names of debtors, commonly known as a deadbeat list, for the purpose of enforcing or attempting to enforce collection of consumer debts.”

 

In this case, the plaintiff was seeking class action status for all others similarly treated. This could lead to tremendous liability should discovery later evidence that the association and/or its management company regularly published deadbeat lists. At trial, the court had granted a motion to dismiss filed by the association based on a prior case, Bryan v. Clayton, also a 5th DCA case dating back to 1977 where the Court held that maintenance assessments were not “debts” for purposes of the FCCPA. In order to re-consider the prior Bryan decision, all of the 5th DCA sitting appellate judges participated in the Williams case, a process legally known as an “En Banc” style of review.

 

The Court in Williams took note that the FCCPA is designed to protect consumers and does not limit unlawful activities only to “debt collectors,” but rather to “all persons” involved in the collection of a debt. By way of contrast, the Federal Fair Debt Collection Practices Act (FFDCPA) applies only to debt collectors, which excludes the association and arguably its management company, and not to “all persons” involved in the collection of a debt, as in the FCCPA.

 

Under the prior Bryan holding, a past due assessment obligation was not even considered a “debt” for purposes of the FCCPA and the FFDCPA. In the recent Williams case, the Court went to great lengths to explain that, in fact, an association assessment obligation “is a debt which arose out of an obligation by a consumer out of a money, property, insurance or services transaction which is primarily for personal, family, or household purposes” and is therefore subject to FCCPA.

 

Thus, the Court remanded the case back to the trial court for further proceedings. While, its unknown how the plaintiff’s attempt for a class action certification will resolve, it is extremely likely that one or more defendants will be found to have violated the FCCPA for having published the “deadbeat list.” The takeaway from the Williams case is to never, ever publish a list of association debtors. This does not at all mean that the board cannot be provided a list of those members delinquent in their assessment obligations. However, it does mean such a list should not be made readily available to the membership by posting or mailing, etc.

 

 

CASE No. 2: On May 20, 2020, Florida’s Third District Court of Appeal entered its opinion in Old Cutler Lakes by the Bay Community Association, Inc. v. SRP SUB, LLC, Case No. 3D19-528 (Fla. 3d DCA 2020) regarding the liability of a third-party purchaser at a mortgage foreclosure sale for assessments that came due prior to the third-party acquiring title to the property. The Court’s holding in this case is in line with its prior holding in the case of Beacon Hill Homeowners Association, Inc. v. Colfin Ah-Florida 7, LLC, 221 So. 3d 710 (Fla. 3d DCA 2017), which based its decision on the landmark case decided by Florida’s Fourth District Court of Appeal in Pudlit 2 Joint Venture, LLP v. Westwood Gardens Homeowners Association, Inc., 169 So.3d 145 (Fla. 4th DCA 2015).

 

In the Old Cutler Lakes case, SRP SUB, LLC (“SRP”) was the successful bidder at a foreclosure sale on a first mortgage held by Wells Fargo. After obtaining title by a certificate of title, SRP filed an action for declaratory relief seeking a determination as to its liability for assessments that accrued prior to the issuance of the certificate of title. In relevant part, the Declaration of Covenant and Restrictions of Old Cutler Lakes by the Bay (“Declaration”) provided the following:

 

The sale or transfer of any Lot pursuant to the foreclosure or any proceeding in lieu thereof of a first mortgage meeting the above qualifications, shall extinguish the lien of such assessments as to payments which became due prior to such sale or transfer.

 

This language is similar to the language contained in the declarations in the Beacon Hill and Pudlit 2 cases. In these cases, the courts applied a constitutional principal prohibiting the impairment of contracts in deciding that the statutory safe harbor did not control over the provisions of the declarations where the statute did not require such application and the declarations did not contain “Kaufman” language, which has the effect of making amendments to the Florida Statutes automatically applicable to a declaration as they are “amended from time to time.” As the provisions of the declarations expressly created rights for third-party purchasers, the third-party purchasers are “intended third-party beneficiaries” to such provisions which rights cannot be impaired pursuant to the constitutional principal prohibiting the impairment of contracts. In following the holdings of the Beacon Hill and Pudlit 2 cases, SRP was found not liable for any of the past due assessments that accrued prior to the issuance of the certificate of title. Thus, as with many declarations which have not been amended since their creation by the community’s developer, these, as yet to be amended, declarations may provide for a complete wipe out of all assessments that accrued prior to the transfer of title as a result of a mortgage foreclosure action or by deed in lieu of foreclosure.

 

The takeaway from the cases discussed above emphasizes the importance of reviewing and updating the association’s declaration, with the guidance of your association’s legal counsel, to ensure that it provides for necessary and available protections for the association and its members, including the use of “Kaufman” language, if appropriate to collect as much overdue assessment revenue as possible.

 

 

The Kaye Bender Rembaum Team Remains Available To You and Your Community Association

The health and safety of your Community and all residents is very important to us. We also realize that our clients have uncertainty and concerns around the continuing operation of your Community, and our team of attorneys will remain available to all of you during these times.

Be sure to check out our very useful and informative COVID-19 section on our website, which is updated regularly, as we continue to follow developments affecting community associations. You can visit it by clicking HERE.

 

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I Have A Roof Claim But I’m Worried About The Attorneys Cost

I Have A Roof Claim But I’m Worried About The Attorneys Cost

I Have A Roof Claim But I’m Worried About The Attorneys Cost

by Cohen Law Group / Kailey Evans

A windstorm, hailstorm, or hurricane happens and you are worried about your roof.  You talk to a roofing contractor and they tell you that you have damage on your roof following the storm. You have been paying insurance premiums for years and decide you are going to file a claim. You file the claim and someone suggests (or you decide) that hiring a lawyer is a good idea. You start thinking “I want to hire a lawyer, but how much will it cost? What if I hire a lawyer and the insurance company does not ultimately pay my claim? Will I have to pay the fees for the insurance company’s lawyers?”

 

At Cohen Law Group, we want our clients to know up front and right away what their financial responsibility will be in a property damage case.  We understand that our clients already have the stress of trying to get repairs/replacements done at their home and we do not want financial worries to add anything else to their plate. So, we make sure that we address all personal financial obligations with our clients at the beginning of the case and during the case if the possibility of additional financial obligations arise.

Providing Statewide Professionals to Handle All Condo and HOA’s Storm Damage Claims for Florida Properties!

These Trusted Legal Firms, Public Adjusters, Roofing & Service Companies that work with You to Settle Storm Damage Claims!

CondoHoaAdjusters.com

 

I want to hire an attorney at Cohen Law Group, but how much will it cost?

At Cohen Law Group, we work on a contingency basis.  In the simplest terms, that means that we do not collect fees if you (our client) do not recover insurance benefits. It is a no-risk relationship in the sense that we front the cost of preparing your claim, instead of billing you for the costs, and collect the costs from the insurance benefits at the end of the claim. Therefore, as long as you proceed with your claim, you will not be obligated to pay out of pocket for any of the attorney’s fees or costs.

 

What if I hire a Cohen Law Group attorney and the insurance company does not ultimately pay my claim?

At Cohen Law Group, if we work on your claim and are ultimately unsuccessful in obtaining any insurance benefits for you, you are not responsible for our fees or costs. Again, because of the contingency basis that we work on for our clients, we do not collect fees or costs unless we recover insurance benefits on our client’s behalf.

 

Will I have to pay for the insurance company’s lawyers if my case goes into litigation?

A question we are often asked is whether or not our clients will be responsible for the insurance company’s attorneys once the case goes into litigation.  The answer is, it depends.  In most cases and based on Florida law, the insurance company is typically responsible for paying the homeowner’s attorney’s fees.  However, once a case is in litigation, there are certain situations where the insurance company’s attorneys can file something that opens our clients up to potential financial exposure (including paying the insurance company’s fees and costs).

 

One particular scenario is called a Proposal for Settlement.  After a case is in litigation, either side can file a Proposal for Settlement, which is a court document making a formal offer to the other party. If the insurance company files a Proposal for Settlement and a homeowner rejects the proposal, there is a possibility that the homeowner could be responsible for the insurance company’s attorney’s fees and costs of litigation.  The specifics of the law are best left for another blog post (so be sure to keep checking back in to get more information – or call us to discuss further).  However, whenever a Proposal for Settlement is filed by an insurance company in one of our cases, all of the attorneys at Cohen Law Group are excellent at reaching out to their clients and explaining the potential consequences of rejecting the proposal (including financial obligations) to their clients.  We want to make sure that before our clients incur additional financial expenses, they are fully informed and prepared for the possibility.

Kailey Evans, esq.

 

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CALL’s COVID-19 Survey Results by CALL/Becker

CALL’s COVID-19 Survey Results by CALL/Becker

CALL’s COVID-19 Survey Results

by CALL / Becker

During the Summer of 2020, CALL’s COVID-19 Survey was open for Floridians to share their experiences during the height of the pandemic.

More than 1,000 association directors, managers and residents took the time to share what steps helped them keep their communities safe as well as the challenges they encountered along the way.

While each of us tried to keep our heads above these uncharted waters when COVID-19 changed our daily lives overnight, none of us were truly alone. Volunteer boards throughout Florida, who encounter operational challenges under ordinary circumstances, soon found themselves having to make impactful decisions about amenity closures, guest restriction and safety protocols.

We hope the results of our COVID-19 survey give your board some food for thought as you manage your safety protocols during the remainder of our statewide State of Emergency which is currently not scheduled to expire until November 3.

For full COVID-19 survey results, please click here.

 

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Learn about your HOA! Get involved this year, learn the Laws and how your Board is Governing? | SFPMA

Learn about your HOA! Get involved this year, learn the Laws and how your Board is Governing? | SFPMA

Learn about your HOA:

Many owners in HOA’s all over the country are looking closer at how their homeowners associations are being Governed. Inspection of the Accounting for years was based on trust, not any more! Many Owners want to make sure the fees they pay are being used for the benefit of their hoa. SFPMA has been getting many emails stating misuse accusations, document inspections, higher fees imposed by boards and collections for owners that are not paying. Many dont know what to do or dont care?  We say you should!

Learn more…..

Here are some things you Should be looking at:

1. Learn the HOA’s rules.

You may be able to find an HOA’s CC&Rs online as well as information about what happens if you violate a rule. Make sure any online information is current. If you cannot find this information online, ask your real estate agent to acquire these documents for you or contact the HOA yourself.

Pay particular attention to rules regarding fines and whether the HOA can foreclose on your property for nonpayment of HOA dues or fines resulting from CC&R violations. Also, learn about the process for changing or adding rules, and whether HOA meetings are held at a time you will be able to attend if you wish to do so. If the rules are too restrictive, consider buying elsewhere.

(EVERY HOA SHOULD HAVE A WEBSITE: EVERY OWNER CAN SIGN IN TO AND FIND THE INFORMATION ABOUT THE ASSOCIATION, MEETINGS, ELECTIONS, BOARD MEMBER REPORTS and NOTIFICATIONS AND NEWS)

 

2. Make sure the home you want to buy is not already out of compliance with HOA rules.

Buying into an existing problem can be a headache, so find out what the rules are and whether you would have to make changes to the home to comply.

(IF A PAST OWNER HAD FEES THEY OWED THE HOA, NEW OWNERS COULD BE ON THE HOOK TO PAY THESE TO THE HOA, ASK YOUR ATTNYS AND AGENTS)

 

3. Assess environmental practices.

If environmentally friendly living is important to you, be aware that some HOAs may dictate that you use fertilizers, pesticides, sprinkler systems and whatever else it takes to keep your lawn picture-perfect. They may not allow xeriscaping (an environmentally friendly form of landscaping) and may limit the size of gardens, ban compost piles and prevent you from installing solar panels. So make sure you check the fine print first.

 

4. Consider your temperament.

Are you the type of person who hates being told what to do? If so, living in a community with an HOA may be a very frustrating experience for you. One of the major benefits of home ownership is the ability to customize and alter the property to suit your needs, but HOA rules can really interfere with this.

 

5. Find out about fees.

Fees will differ for each community. Because of this, you should make sure to ask your HOA the following questions:

  • How are HOA fee increases set?
  • How often do increases occur, and by how much have they historically been raised?
  • Can you get a printed history of HOA dues by year for the last 10 years?
  • How large is the HOA’s reserve fund?
  • Also, ask for a record of special assessments that have been made in the past and ask if any special assessments are planned for the near future. Note that economies of scale can mean that special assessments are smaller in HOAs covering large communities, higher in smaller HOAs.
  • Find out what the monthly dues cover. Will you still have to pay extra for garbage pickup? Is cable included?

Compare dues for the complex or neighborhood you are considering to the average dues in the area. Keep in mind that you will have to pay for recreational facilities whether you use them or not. Find out the hours for amenities like pools and tennis courts. Will you be around during those hours, or will you be paying for facilities you’ll never be able to use? Be aware that the HOA may have rules about how many guests can use common facilities. If guest restrictions are severe, forget about that housewarming pool party you envisioned.

(LEARN ABOUT YOUR HOA OR CONDO BEFORE YOU BUY. LEARN WHAT QUESTIONS TO ASK BOARDS AND MANAGEMENT COMPANIES BEFORE YOU BUY!)

 

6. Try to get a copy of minutes from the last meeting or sit in on an HOA meeting before you buy.

The meeting minutes can be very telling about the policies of the HOA. Some questions to ask are:

  • What are current and past conflicts?
  • What is the process for resolving any conflicts?
  • Has the HOA sued anyone? How was that resolved?

Be alert for potential drama. Power trips and petty politics can be an issue in some HOAs. Talk to some of the building’s current owners, if possible – preferably ones who are not on the HOA board and who have lived in the building for several years. Talk to the HOA president and get a sense for whether you want this person making decisions about what you can do with your property. If a private company manages the HOA, investigate it before you buy. Some HOAs are professionally managed, but it is common for associations to be managed by building residents who hold their positions as volunteers. Even if you like the current HOA board or management company, it can change after you move in and you may end up getting something totally different than what you expected.

 

7. Watch for under-management.

Not all HOAs are over-managed. The opposite problem may be an HOA where no one really cares and where no one is interested in maintaining the building, making repairs, hearing resident grievances or being on the board. Residents may simply take turns serving as HOA president or randomly appoint someone, so be prepared to serve in this role whether you want to or not if that is the case with your community’s HOA.

This would also be a good time to check into any restrictions preventing you from renting out your property or that make it difficult for you to do so. If your property is being under-managed you might not have an issue, but if you’ve got a hyperactive manager it could be a totally different story.

 

8. Find out what kind of catastrophe insurance the HOA has on the building.

This is particularly important if you’re considering a condo or townhouse purchase and you live in an area that is prone to floods, earthquakes, blizzards, fires, tornadoes, hurricanes or any other type of potential natural disaster – and that is virtually anywhere.

 

9. Consider the impact of HOA fees on your short- and long-term finances.

A condo with high HOA fees might end up costing you as much as the house you don’t think you can afford.

 

The Bottom Line

Homeowners’ associations can be your best friend when they prevent your neighbor from painting her house neon pink, but your worst enemy when they expect you to perform expensive maintenance on your home that you don’t think is necessary or impose rules that you find too restrictive. Before you purchase a property subject to HOA rules and fees, make sure you know exactly what you are getting into. Then, once you’ve found your dream community.

 

Planning for the Future

The only constant is change, and the board must plan for the HOA’s future. This involves determining long-range needs and establishing long-term goals, along with implementing a strategy to attain those goals. The board should set annual goals, as well as those for a longer time frame. Performance goals are also set by the board. SFPMA and our members can help with many of the maintenance requests for your properties.

 

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You have until September 10, 2020 to make a claim for damages that were the result of Hurricane Irma.

You have until September 10, 2020 to make a claim for damages that were the result of Hurricane Irma.

If you have not properly addressed possible Hurricane Irma damage to your property – the time to do so is now.
Hurricane Irma first made landfall in Cudjoe Key, FL on September 10, 2017, which means you have until September 10, 2020 to make a claim for damages that were the result of Hurricane Irma.
September 10, 2020 is also the deadline to re-open or supplement a claim that has already been made for damages that occurred as a result of Hurricane Irma.
If you are unsure if your property sustained damage as a result of Hurricane Irma you should ask for an inspection by a qualified contractor, estimator or building inspector to assess whether hurricane-force winds damaged or compromised the roofing system and building envelope. Many companies offer this initial inspection free of charge. Given the complexities of a large loss claim, consider consulting with an attorney experienced in handling commercial insurance claims for condominiums and homeowners associations.
The deadline is fast approaching, so time is of the essence to file your hurricane claim. If you miss the deadline, you will be forever barred from initiating a hurricane Irma claim in the future.
We are available to assist you and connect you with top professionals in the industry to accurately evaluate hurricane damage and submit an insurance claim the right way – today.
At Cohen Law Group, It’s About Justice!
It’s more than a slogan, it’s our firm’s mantra. We are zealous in protecting your rights. We offer 24-hour availability through our answering service. Call us today.

(407) 478-4878

 

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Legal Update 2020 Summary: Florida Legislature passing several community association related bills this Season  By: Shayla Johnson Mount / Becker

Legal Update 2020 Summary: Florida Legislature passing several community association related bills this Season  By: Shayla Johnson Mount / Becker

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Legal Update 2020 Summary:  Florida Legislature passing several community association related bills this Season

By: Shayla Johnson Mount / Becker

The Florida Legislature was especially busy this past session filing, debating, and ultimately passing several community association related bills. Below is an outline of those bills and the potential impact on your community association this year.

 

  1. Emotional Support Animals – Chapter 2020-76 (Senate Bill 1084) – This long championed and highly anticipated bill managed to make it to the finish line this year to become law on July 1, 2020. This law amends portions of the Florida Fair Housing Act (Chapter 760.20, F.S.) to officially define an “emotional support animal” (“ESA”) and prohibit discrimination in housing against individuals with a disability-related need for an ESA. More specifically, the new law requires a housing provider (which for purposes of the law includes a community association) to make “reasonable accommodations” to allow for the individual’s ESA at no additional cost under certain circumstances. If the person’s disability is not readily apparent, the association can request additional supporting documentation from the person’s health care provider or other proof of disability (i.e.: proof of receipt of federal or state disability benefits). However, an association cannot inquire as to the person’s specific disability.  The new law also makes the individual directly responsible for any personal or property damage the ESA causes and also makes it a second-degree misdemeanor to falsify or misrepresent information or documentation concerning an individual’s need for an ESA.

 

  1. Fireworks – Chapter 2020-11 (Senate Bill 140) – The new law prohibits a homeowners association from passing a board-rule banning the use of fireworks on certain “designated holidays,” including New Year’s Eve, New Year’s Day, and Independence Day. This law does not specifically apply to condominium associations and a homeowners association is still able to amend its Declaration to regulate or limit the use of fireworks within the community.

 

  1. Law Enforcement Vehicles – 2020-5 (Senate Bill 476) – One of the first bills passed and approved by Governor DeSantis this session, is a law that prohibits a condominium, cooperative or homeowners association from prohibiting a law enforcement officer from parking his or her assigned vehicle in an area where the individual would otherwise have the right to park.

 

  1. State Reporting for 55+ Communities – Chapter 2020-153 (Senate Bill 255) – This law removes the requirement that 55+ communities must initially register, and biannually report its compliance status, to the Florida Commission on Human Relations. This bill does not eliminate the need for these communities to comply with federal reporting requirements.

 

  1. Housing Discrimination – Senate Bill 374 – This bill passed the House and Senate but, at the time of this writing, is still pending action by the Governor. If it becomes law, this bill will amend the Marketable Record Title Act  (Chapter 712, F.S.), to automatically extinguish and make void as a matter of law any “discriminatory restriction” on the basis of race, color, national origin, religion, gender or physical disability which are contained in an Association’s recorded governing documents.  The law would allow the board by majority vote to amend its governing documents to remove any such restrictions.

 

  1. Lease Requirements – Chapter 2020-102 (Senate Bill 469) – This law removes the requirement that a lease agreement must be signed by a subscribing witness.

 

  1. Florida Guaranty Insurance Claims – Chapter 2020-155 (House Bill 529) – This bill increases the amount of insurance available through the Florida Guaranty Insurance Fund from $100,000 to $200,000 for each condominium or HOA claim, where the association has the responsibility to insure residential units.

 

  1. Rental Agreements – Chapter 2020-99 (Senate Bill 1362) – Also known as the “Protecting Tenant at Foreclosure Act,” this law requires a party or entity who obtains a property at foreclosure that is subject to a pending lease agreement to provide to the tenant a 90-day notice to vacate.

 

Thankfully, Senate Bills 295 and 1488 did not pass, both of which would have significantly revised and limited the ability of a condo or homeowners association to bring construction defect claims against developers and builders on behalf of its members.  This year, the legislature revisited the controversial issue of regulating short term vacation rental (i.e.: Airbnb) through consideration of Senate Bill 1128 and House Bill 1011.  These bills would have prohibited cities and counties from passing ordinances regulating or limiting an owner’s ability to use their home or unit as a short-term vacation rental. Although neither bill specifically addressed an association’s ability to pass rules or regulations regarding short-term rentals, it is likely that this issue will return next year for further debate before the Legislature.  Prior to next year’s session, associations that are concerned with short-term rentals in their community should seriously consider amending their governing documents now as future versions of this bill may propose to limit an associations ability to regulate short-term rentals as well.

Shayla J. Mount is an Associate Attorney in Becker’s Community Association Practice Group. She focuses her practice on providing counsel and representation to homeowner and condominium associations throughout Central Florida. An experienced litigator,

she has handled collections litigation and served as general legal counsel for numerous homeowner and condominium association boards throughout Orange, Osceola, Seminole, Duval, and Sarasota Counties. Shayla regularly advises association boards on issues regarding vendor contracts and disputes, document amendments, and covenant enforcement issues.

She also has substantial experience handling a variety of civil litigation issues including small business and contracting actions, foreclosure defense, real estate transactions, and insurance disputes.

 

 

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community association boards completely overlook the significance of who is serving as the association’s registered agent. by Donna DiMaggio Berger

community association boards completely overlook the significance of who is serving as the association’s registered agent. by Donna DiMaggio Berger

 

Far too many community association boards completely overlook the significance of who is serving as the association’s registered agent. I’ve found associations whose registered agent is a former board member who is either deceased or who has moved away or a former law firm or lawyer who no longer represents the association.

Pursuant to Section 607.0501,F.S, the duties of a registered agent are to forward to the corporation at its official address any process, notice, or demand which is served on or received by the registered agent. If the registered agent fails in this regard, the association may miss crucial litigation deadlines as well as Code compliance hearings which can result in substantial damage to the association. Current board members and managers should also seriously consider whether they are up to the task of serving as Registered Agent as that role does come with potential liability.

 

Donna DiMaggio Berger is a Board Certified Specialist in Condominium and Planned Development Law as well as a Fellow in the College of Community Association Law a prestigious national organization which recognizes excellence and ethics in the field of community association law. Ms. Berger has counseled condominium, cooperative, timeshare, mobile home and homeowner associations throughout Florida.  Her work with these communities includes covenant enforcement, covenant amendment, contract review and drafting, collections and foreclosures, as well as advising these associations about the statutory and documentary guidelines for the daily administration of their communities.

Ms. Berger has led various advocacy initiatives working with legislators and other public policy makers on behalf of those who live, serve and work in common interest ownership communities. She has testified before the Florida Legislature regarding community association law and frequently appears on radio talk shows and in print media discussing these issues.

 

 

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MORE ABOUT COLLECTIONS By Eric Glazer, Esq. Published August 3, 2020

MORE ABOUT COLLECTIONS By Eric Glazer, Esq. Published August 3, 2020

MORE ABOUT COLLECTIONS

By Eric Glazer, Esq.

Published August 3, 2020

 

As promised a few weeks back, we need to discuss some very interesting pitfalls associations sometimes fall into in the area of collections.  In light of the fact that mortgage delinquencies are at an all-time high, rest assured that owners will in a short while begin falling behind on condo and HOA assessments as well.

The association must accept even partial payments.

 

Suppose the assessments are $300.00 per month.  An owner has not paid in 3 months and owes $900.00 plus late fees and interest.  The owner sends in a payment for $300.00.  Must the association accept the $300.00 payment?  YES.

In Ocean Two Condominium Ass’n, Inc. v. Kliger, 983 So.2d 739 (Fla.App. 3 Dist.,2008)  the court held that the refusal of a condominium association and its management company of tendered payments of undisputed maintenance fees by condominium unit owners was improper and rendered premature the association’s lien foreclosure action involving owners’ units..  The condominium statute provided that such payments were to be applied on account, without prejudice to association’s and unit owners’ respective positions.  In this case, the dispute would have been reduced to an inconsequential amount, and association’s attorneys could not in good faith have filed to foreclose the miniscule claim remaining. West’s F.S.A. § 718.116(3).

The association should not worry about restrictive endorsements.

 

Same scenario as above, but this time, the owner writes “paid in full” on the $300.00 check.  Should the association deposit the check?  If they do, are they now prevented from suing for the $600.00 balance?

The condo and HOA statutes each provide the methods by which to apply assessments that are paid.  Each statute makes it clear that they are to be applied in accordance with the statute, and any purported accord and satisfaction, or any restrictive endorsement, designation, or instruction placed on or accompanying a payment.   In simple terms, after applying the payment, the balance is still owed despite the words “paid in full” or similar words being placed on the check.

 

The association must apply the monies in accordance with the statute.

 

Same scenario as above, but the owner has also incurred $200.00 in attorney’s fees, $10.00 in interest and $75.00 in late fees.  How much does the owner owe to the association after making the $300.00 payment?

The statute says……….Assessments and installments on assessments which are not paid when due bear interest at the rate provided in the declaration, from the due date until paid. The rate may not exceed the rate allowed by law, and, if no rate is provided in the declaration, interest accrues at the rate of 18 percent per year. If provided by the declaration or bylaws, the association may, in addition to such interest, charge an administrative late fee of up to the greater of $25 or 5 percent of each delinquent installment for which the payment is late. Any payment received by an association must be applied first to any interest accrued by the association, then to any administrative late fee, then to any costs and reasonable attorney fees incurred in collection, and then to the delinquent assessment.

About HOA & Condo Blog

Since 2009, Eric has been the host of Condo Craze and HOAs, a weekly one hour radio show that airs at noon each Sunday on 850 WFTL.Eric Glazer graduated from the University of Miami School of Law in 1992 after receiving a B.A. from NYU. He has practiced community association law for more than 2 decades and is the owner of Glazer and Sachs, P.A. a seven attorney law firm with offices in Fort Lauderdale and Orlando and satellite offices in Naples, Fort Myers and Tampa.

See: www.condocrazeandhoas.com.

He is the first attorney in the State of Florida that designed a course that certifies condominium residents as eligible to serve on a condominium Board of Directors and has now certified more than 10,000 Floridians all across the state. He is certified as a Circuit Court Mediator by The Florida Supreme Court and has mediated dozens of disputes between associations and unit owners. Eric also devotes significant time to advancing legislation in the best interest of Florida community association members.

 

 

 

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