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TonyM6 (Florida)
Posts: 12
Posted:
For Florida HOAs whose deed restrictions have expired, its not clear to me if 720.403 - 720.407 requires ALL HOA members to agree to revitalization or if only a majority vote at a meeting is required. If the latter, its also not clear to me if that would be a majority of the members, or a majority of a quorum present at the meeting. Does anyone know the correct answer? Thanks in advance.
KevinK7 (Florida)
Posts: 1,343
Posted:
When I spoke with the DEO they said they didn't have to hold a meeting and they could take as long as possible to collect signatures. I know when my neighborhood filed a revitalization they stated in a letter they required a majority in 30 days in order to not hold a meeting and file. My understand was that it was the majority of all affected parcels - not the attending membership.
TonyM6 (Florida)
Posts: 12
Posted:
Thanks. I found the same interpretation on a legal website as well.
GwenG (Florida)
Posts: 669
Posted:
Stay tuned to this issue. Reference the "majority" revitalization vote predicate to the application to the DEO: there are revitalizations in process and those owners who did NOT consent to revitalization are seriously considering a civil lawsuit-perhaps class action.

Apparently, there is not yet any FL case history challenging the Homeowner Act as regards covenants expiration. Many of these owners are homesteaded; the lawsuit may include only non-consenting homesteaders or perhaps ALL non-consenters.
KevinK7 (Florida)
Posts: 1,343
Posted:
I stressed that point in my petition to the DEO.

Not only did I not consent, but I also did not consent to their mandatory amendment and I had demanded my home be removed from their index and they ignored my request.

So far it seems the cards are stacked against homeowners. The HOA can file whatever they want but I have a thousand hoops top jump through every step of the way. I am interested in seeing this subject advance in the courts. Hopefully with favorable outcomes for homeowners.
FranM3 (Florida)
Posts: 3
Posted:
We are a small HOA (14 votes) whose DR's have expired. The members are not interested enough to try to understand or to act toward revitalization. Two of the 3 Board Members (I was one of them.) wrote a new set of DR's and distributed them for approval to send into the state (FL). We got no response. It turns out that the 3rd Board Member had started a campaign to send in our old documents to the state to be reinstated instead of creating new ones. We are not sure what the motivation on her part is, but she is an attorney. There is no majority on either side of the issue, so we are in limbo.

Is the state likely to reinstate the old restrictions?

Since it is unlikely we would get enough support to dissolve the HOA, the two Board members who tried for the rewrite want to resign and drop out of the association. Is that possible? Are we entitled to any of the reserves that are in bank accounts?

Any creative ideas would be welcomed.
TonyM6 (Florida)
Posts: 12
Posted:
My interpretation of Statute 720.405 (5) and (6) is that for the DEO to approve reinstatement of any version of the restrictions, the restrictions have to be approved by a majority of the parcel owners. In addition, the Notice of Meeting and the Meeting Minutes documenting the vote has to be certified by a court reporter or an attorney. If the meeting did not happen, wasn't documented properly, or the motion was not passed by a majority of parcel owners then, no, the DEO is not likely to reinstate them.
GwenG (Florida)
Posts: 669
Posted:
DEO will not approve the attorneys attempt to apply for revote because due process has not occured---per your description.

Dissolution is precisely described in FS 617 the not for profit statute.

After all corporate debts and liabilities are satisfied, any remaining funds can be distributed to l
HOA members. And NO the members cannot quit the association of membership is mandatory.

Do the 14 owners want a voluntary hoa and why?

Do you have much common property to maintain?
Y
FranM3 (Florida)
Posts: 3
Posted:
We don't have a majority (8) of the 14 members who want to do ANYTHING. My understanding is that we are therefore operating as a voluntary HOA and have no way to enforce anything.

We have a paved lane, which has street lights, banks are mowed weekly. It cannot be given to the county - not up to their standards. It is owned by the HOA corporation.

If we cannot "quit" the HOA, are we still required to pay maintenance fees, in our present state of limbo?

Our old documents have never been followed, especially our By Laws, which is why we worked to rewrite them.
FranM3 (Florida)
Posts: 3
Posted:
My question was will the state approve the old documents that were recorded in 1979 with no changes?

Of course, we would have a meeting, OR, it is my understanding that a majority of members can agree to do that in writing, in lieu of a meeting, so long as it is certified by a court reporter or attorney before it is submitted to the state.

Is there someone we can call at the state?
KevinK7 (Florida)
Posts: 1,343
Posted:
Quote:
Posted By FranM3 on 05/02/2016 1:53 PM
My question was will the state approve the old documents that were recorded in 1979 with no changes?

Of course, we would have a meeting, OR, it is my understanding that a majority of members can agree to do that in writing, in lieu of a meeting, so long as it is certified by a court reporter or attorney before it is submitted to the state.

Is there someone we can call at the state?

I believe the state would approve. My neighborhood didn't hold a meeting, supposedly had a majority of homeowners sign a joinder and consent form to their property, and only submitted to the state a more restrictive set of amended covenants without including any other document as required by law. They also did not meet the definition of a HOA in either 712 or 720.

The DEO approved their revitalization so it is safe to say they will probably approve any document given to them.
GwenG (Florida)
Posts: 669
Posted:
[email protected]
This person is my only contact at DEO and while helpful, is very limited in disclosing important and more complex details. He refers such inquiries to staff attorney, Virginia Ponder.

It is my impression from my direct interactions and others' experiences that DEO is very limited in scope and represents the interests of HOA's and their sponsors.

I am not sure why a tiny HOA would want to go this route rather than just re-writing governing docs and going door to door to get as many signatures as possible. You could avoid the "majority" problem and avoid all the administrative rigamarole and also any legal challenges by non-consenting owners. Since your infrastructure is scant and non-essential, the management function of the HOA is minor.

As far as the payment of maintenance fees, my attorney has advised that under the doctrine of "equitable servitude", all members would be required to pay a fair share of expenses consumed even without Declaration of Covenants. However, one would have to use the justice system to compel non-payers to pay and the HOA would have to demonstrate that the member-owner was consuming services --for starters. That does not seem practical in your scenario. Once the corporation is dissolved, there is no more mandatory obligation to pay assessments because there is no more common property to be managed. However, the ownership falls to 14 owners who will have to assume premises liability due to the absence of corporate insurance.

The underlying authority of the corporate bylaws to assess/lien/foreclose is found in the Declaration. When that is gone, the authority is gone. Expiration only affects the "contract" i.e. the governing docs that run with the land. While expiration of CCR's guts the Bylaws, these corporate docs do not technically expire.

If I were in your shoes, I would start looking for an entity to accept a gift of some of your common property or ask a homeowner to accept title. The roads are a problem and will inevitably fall into disrepair and members will be have to accept that or pool some money to fix. The county does not have to accept roads but may cause their condition through taxation to be maintained in acceptable condition for emergency vehicles. Say goodbye to street lights. If weed growth becomes a health hazard, the county will step in and cure the defect and might establish a vehicle to maintain the grounds through a special taxing district.

I am not an attorney and the above should not be taken as legal advice.

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