Corporation not for profit under 617 vs 720

Started by AdrianaS • 11 replies • 1910 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

AdrianaS (California)
Posts: 48

Posted:

We have a situation that nobody knows under wich Fl Statutes we are run, Iknow we are a corporation not for profit since the 60's,nobody ever filed for 720 nor made amendments, we have a legal case,and my attorney had said if they are not 720 your are not binded by it? they are trying to drain me financially forcing me to give up,I feel that if am not binding why should I have to go to mediation, I believe we are run by a board of directors?

PeterB1 (Florida)
Posts: 257

Posted:

One does not preclude the other. You are governed by 617 because you are a not-for-profit. But, you will also be governed by 720 IF you are a Homeowners Association.

Are you a HOA? Condo? Other?

AdrianaS (California)
Posts: 48

Posted:

That is the problem nobody know? according to the register papers we are not HOA, nor a condo, because we never updated our documents? We are a corporation registered under fl st 617. Dont they have to register to be an HOA?

DonnaS (Tennessee)
Posts: 5,671

Posted:

Adriana,

There is no question about this. Prior to the year 2000, all HOAs were governed under the Statutes 617, Not For Profit Statutes. Those laws were very general and covered all Not Profits, whatever they were HOA's or other corps. I am assuming that you are stand alone or villa type homes?

The year 2000 brought new Statutes, under S.S. 720. HOA's are automatically covered by them. You did not have to change your documents to be covered.

Condos are also covered under their Articles of Inc by S.S.617 but they follow S.S. 718,Condos. Mobile Home associationd follow 723.

MaryA1 (Arizona)
Posts: 388

Posted:

Adriana,

Your CCRs (covenants) should tell you if there is an HOA to administer the assn. Is there a board of directors that governs your assn? If you are stand alone homes then you would be under FL720, if you are condos then you would fall under FL718 and both stand alone homes and condos also have to abide by the nonprofit statutes FL617. Your attorney should be able to look at your governing documents and know what type of community you live in. Can you tell us what the lawsuit is about?

MaryA1 (Arizona)
Posts: 388

Posted:

Adriana,

Oops, forgot to ask:

Have you been paying assessments to the HOA? If so, then that would be an indication that there is a mandatory HOA, meaning all property owners must belong to the HOA.

DonnaS (Tennessee)
Posts: 5,671

Posted:

Adrianna,,

Read my above post. Just to show you where this comes from, I have posted a brief section of 720:303

It shows the history of where the 720 rule came from and if you will notice, it is from 617.

"i) When the recall of more than one board director is sought, the written agreement, ballot, or vote at a meeting shall provide for a separate vote for each board director sought to be recalled.

(History.--s. 35, ch. 92-49; s. 54, ch. 95-274; s. 1, ch. 97-311; s. 1, ch. 98-261; s. 46, ch. 2000-258; s. 12, ch. 2003-14; s. 3, ch. 2003-79; ss. 2, 18, ch. 2004-345; s. 15, ch. 2004-353; s. 135, ch. 2005-2; s. 16, ch. 2007-80; ss. 9, 10, ch. 2007-173.

Note.-- ((((Former s. 617.303. ))))

AdrianaS (California)
Posts: 48

Posted:

My bank denied a refinance and declared the property not acceptable collateral for reasons of duvious registration. I checked all,and the only problem I see, is that,when the building was registered as a cooperative, nor for profit corporation under fl st 617,stayed that way, they never updated to incorporate to 720? so my understanding is that in that case we are 617 and thatjust a regular corporation run by a board of directors? But when there is a legal problem fl st 720 will not be enforsable. I dont find anything else.Question what do they mean by stand alone?

DonnaS (Tennessee)
Posts: 5,671

Posted:

Adriana,

Stand alone means that it is a single house, not a condo or attached villa type--just a single structure. There is much confusion from your bank. As I said earlier, you need to have the HOA attorney write a simple document, declaring that the HOA is declared under 720 Statutes. He may have to send some sort of paperwork to the State Not For Profit Corps, changing your status. This is no big deal and requires nothing from your membership.

MaryA1 (Arizona)
Posts: 388

Posted:

Adriana,

I would get more info from the bank -- what do they mean by "dubious registration"? Furthermore, the FHA rules only apply to condos and not single family homes. Perhaps the bank doesn't know what type property you live in.

AdrianaS (California)
Posts: 48

Posted:

Donna, our building is a not for profit corporation, and a neighbor is having legal problem, there's been selective enforcement for years and she is fighting a legal problem,and the board cited her to a mediation, her lawyer asked the board attorney to show under which FStature they are binded by? our building is a cooperative not for profit corporation, since 67? The attney belives that 720 would not apply? so there is the confusion, when 720 applies or when 617?
Checking old minutes from past boards, they say we need to register to be a condo, but nothing shows any amendments. I TRIED TO FIND YOUR POSTING ON 720:303 CANT FIND IT..THANKS

MaryA1 (Arizona)
Posts: 388

Posted:

Adriana,

I just answered you on another thread where you asked if your assn was under FL617 or FL720 now you say you're a condo which would be under FL718.

Posted below is the "Purpose" of the 718 statutes. You will note that it does not say the assn must register to be bound by the FL718 statutes. Also, no amendment to your CCRs is required.

718.102Purposes.
—The purpose of this chapter is:

(1)To give statutory recognition to the condominium form of ownership of real property.

(2)To establish procedures for the creation, sale, and operation of condominiums.

Every condominium created and existing in this state shall be subject to the provisions of this chapter.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here