Quote:
Posted By GerardP on 05/24/2014 3:18 PM
Can the builder has the authority to set assessment, keep the money without report and continue to ask for payment without a PROPERTY OWNER Association formed according to FLORIDA RULES with Board of Directors... and so on ??? Any response will be appreciated. Thank you
The answer is probably not a matter of Florida law, it is a matter of your governing documents. When the developer formed the POA, they most likely did a few things:
o - Formed a corporation for the POA and registered it with the state
o - Created the bylaws for the corporation, possibly registered with the state or county, but probably not.
o - Created a Declaration of Covenants, Conditions, and Restrictions (CCRs, sometimes known as deed restrictions.) These CCRs are attached to the deed and should be registered with the county.
There probably is a POA, it just hasn't been turned over to the property owners yet. How many lots are sold out of how many total?
The answer to your questions is most likely in the documents mentioned above. For example, in my HOA, the CCRs specified that the developer had control until they (or their successors, assigns, etc.) owned less than 10% of the lots, but it could be different in yours. Generally, developers keep control until most or all lots are sold. As long as the developer is in control, they can do just about anything, including unilaterally changing the CCRs. Ideally the developer is collecting enough to maintain the common elements and fund any required reserves without much waste, but not all of them do that. Sometimes they hire a management company that the also have an interest in, charge high management fees, and milk the property owners.
You'll find many posters on here who recommend never buying into a developer controlled development. In my case it worked out ok, I was the 5th HO out of 65, real estate was hopping, the developer was out in a couple of years, and turned over a decent start on our reserve funds. Sometimes it drags out a lot longer. In any case, start with your docs.
Escaped former treasurer and director of a self managed association.