Revitalizing a voluntary HOA

Started by RonC7 • 10 replies • 2122 views

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RonC7 (Florida)
Posts: 6

Posted:

Hello all, My first post here and introduction. I just purchased a vacant lot in a 21 home neighborhood in Florida. Coincidentally, the HOA is in the process of being revitalized. The road is private and there is a granted beach access. The road and beach access require maintenance and the revitalization was needed to protect that beach access from being lost.

As it would happen I was asked to become the first president and get the process going. I asked the attorney to draft a letter to be sent out to the residents after the HOA bylaws are recorded introducing them to, the up till now was a voluntary HOA. I guess some folks chose to not pay or abide by the deed restrictions. All the residents chose to revitalize so the new language in the by laws includes what happens should they not pay.

We need to have our first meeting and elect directors, our by laws require 3 people. I have taken it upon myself, since apparently only a few residents want to be on the board. I don't mind doing it and have some experience in organization.

I would appreciate any pointers in the first correspondence notifying the residents of the first annual HOA meeting and request for candidates.

Thank you for this site, I have a lot of homework.

Regards, Ron

KevinK7 (Florida)
Posts: 1,343

Posted:

Are you revitalizing expired covenants or just a defunct HOA?

TimB4 (Tennessee)
Posts: 21,059

Posted:

Is it actually a voluntary HOA because the deed restrictions say it's voluntary or is it voluntary because nobody has been running the Association so it appears as if it's voluntary?

If the deed restrictions don't specify a mandatory requirement to pay assessments, good luck in making that happen (as it would be up to each owner).

If the deed restrictions do specify a mandatory requirement to pay assessments, you will not be a popular person after you reactivate the Association and demand past payments.

RonC7 (Florida)
Posts: 6

Posted:

Thanks for the replies. The covenants were expiring this year, (30 year anniversary). Nothing in the language states its voluntary, it was just never enforced. It will be from now on. The by laws leave no room for interpretation. Any advice for smoothing the inevitable over?

RonC7 (Florida)
Posts: 6

Posted:

Message Topic: RE: Revitalizing a voluntary HOA
Posted By: JamesO6

Posted By JamesO6 on 12/16/2014 1:11 AM

I wuv to be I your HOA right now.... YOU cannot revitalizing a HOA, if it's dead and buried you'll need 100% compliance and if you have 1 lot owner like me get ready to get sued.

not like I'd sue you I'd just sue anyone that's trying to start one up in my neighborhood that'll stop it because of just the initial cost defending to starting it up. Smile if they didn't sign any thing saying their in a HOA and you just point to a recorded deed restriction, I'll do like what imam doing the last 12 years in this HOA, they point and I say Point where I acknowledged it, we go round robin every time they change a new property management company they point and we point it goes nowhere fast but in a vicious circle unless one party is a moron to acknowledge. and they do all the time.

James, Thanks for your contribution here. A little more background for you.

100% of the 21 residents signed a revitalization consent document. I saw it was recorded when I was thinking of purchasing the property. Now the HOA is in the process of collecting a consent to amend the declaration of restrictions. So far there are 16 out of 21. as long as 2/3rds agree, I believe it becomes law.

Fortunately, the only problems are a few out of town, undeveloped land owners that have not returned the consent forms.

The reason for revitalization was to ensure the State granted beach access was maintained.

James, If you were in this neighborhood and did not consent to revitalize, you would have lost quite a bit of property value. Get it.

GlenL (Ohio)
Posts: 5,491

Posted:

Ron, I wish you luck on the daunting task before you, I would suggest that in addition to becoming intimately familiar with your CC&R's, you do likewise with the FL HOA Statutes. The answers to most if not all of the questions you asked in your original post should be found there. FL 720:

BTW Have you checked with the FL Secretary of State's Office to determine the status of the corporation that is the HOA? Since the HOA suffered from apathy for so long, chances are that the Corp. has been administratively dissolved, how difficult it is to reinstate it varies from state to state.

Studies show that 5 out of 4 people have problems with fractions

KevinK7 (Florida)
Posts: 1,343

Posted:

So the covenants expired and required revitalization, not preservation? In that situation, despite the fact that you got 100% approval, I believe Florida statutes state revitalized documents cannot be more strict then the originals. I assume that you understand this point because you mention amending the documents to become a mandayory association. The problem here is that you may have some problems down the line if you do not secure another 100% approval - not 2/3rds.

I have read of many instances where converting to mandatory changes the scope of the governing documents and would require all to sign on for that change or else you could face a costly legal challenge if you wish to enforce mandatory rules on someone who doesnt want to pay and wants to fight.

RogerB (Colorado)
Posts: 5,067

Posted:

RonC7,
Based on your two posts it appears your Declaration is still in effect and needs to be amended before it expires. If the HOA has not been active for some time any previous incorporation status of the HOA has probably expired. Depending on the date that the current Declaration expiration date, the amendments to the Declaration needs to be filed with the County Clerk and Recorder either before or after the homeowners meeting. After the startup meeting the Board can try to reinstate the Corporation status or else file as a new Corporation with your Secretary of State.

With regard to your question, I would send out a notice of an organizational meeting for the purposes of:
1) establishing the homeowners association; 2) vote on approval of Bylaws for the association; and 3) elect Board members to run the association. Give sufficient notice to comply with the state's non profit act and if previously incorporated then comply with the Bylaws which may have been required to be filed with the state upon being incorporated.

It is suggested that you contact other potential candidates for the Board in person as well as sending a written notice of the meeting. With the meeting notice include a complete agenda plus the most important reason(s) for a homeowner to attend this meeting.

P.S. If the current Declaration does not allow for assessment of property (manditory) it is suggested that the amendment to that Declaration provides for manditory assessment only upon the sale of the property. This could be the same initial amount as the association charges for voluntary dues which allows for a smooth transition. Just remember that the association and the Declaration are two separate entities.

Disclaimer: I am not an attorney and the above are not a legal opinion - just based on having been there and done that.

JamesO6 (Florida)
Posts: 170

Posted:

Quote:

Posted By RonC7 on 12/16/2014 4:35 AM
Message Topic: RE: Revitalizing a voluntary HOA
Posted By: JamesO6

Posted By JamesO6 on 12/16/2014 1:11 AM

I wuv to be I your HOA right now.... YOU cannot revitalizing a HOA, if it's dead and buried you'll need 100% compliance and if you have 1 lot owner like me get ready to get sued.

not like I'd sue you I'd just sue anyone that's trying to start one up in my neighborhood that'll stop it because of just the initial cost defending to starting it up. Smile if they didn't sign any thing saying their in a HOA and you just point to a recorded deed restriction, I'll do like what imam doing the last 12 years in this HOA, they point and I say Point where I acknowledged it, we go round robin every time they change a new property management company they point and we point it goes nowhere fast but in a vicious circle unless one party is a moron to acknowledge. and they do all the time.

James, Thanks for your contribution here. A little more background for you.

100% of the 21 residents signed a revitalization consent document. I saw it was recorded when I was thinking of purchasing the property. Now the HOA is in the process of collecting a consent to amend the declaration of restrictions. So far there are 16 out of 21. as long as 2/3rds agree, I believe it becomes law.

Fortunately, the only problems are a few out of town, undeveloped land owners that have not returned the consent forms.

The reason for revitalization was to ensure the State granted beach access was maintained.

James, If you were in this neighborhood and did not consent to revitalize, you would have lost quite a bit of property value. Get it.

Yes might of, is your HOA that community in the national news that were denying beach access to the Public accessing the city beach property that the city had an agreement with that builder to allow the public to access the beach via the HOA street? if so guess I see why that property values went up to allow it to happen???? If so how about the tax payers to pay for Hurricane insurance or nor-easterns storm damages insurances did yaws get that clause in too? jus curious.

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