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LeeF3 (Florida)
Posts: 1
Posted:
I am a home owner in a Florida neighborhood. I have lived here since the first house was built in 2001. The developer filed the nonprofit incorporation papers and the HOA documents
in January 2001. THAT'S IT. The builder told everyone that there was not going to be an HOA and we liked it that way. There has never been the first meeting as a developer controlled HOA. No meetings, no minutes, no officers, no dues, no filings no annual reports. Nothing for 17 years. At 90% build out there was no transfer of the control because there was no control.
Now there are three homeowners out of 65 that want to Start an HOA. About 2/3 do not want an HOA. Most everyone got copies of the covenants and restrictions when they purchased and everyone was told the HOA was dissolved. These three individuals have paid the back taxes themselves with the intent of resurrecting an HOA that never was, and then passing the cost of those back taxes on to the homeowners who did not want it in the first place. We are surrounded with high end subdivisions with houses from 3-4 million to 300k, and we all know the horror stories of fines for the kids bikes in the yard overnight and for the garage door left open. No one wants any of that. Most people bought in here because there was no HOA.

The 3 Individuals contacted a HOA management company to have a meet to vote in a board!!!!
It feels as though this is being shoved down our throats.

Here are my questions:
1. Does filing the papers the first time with the state, but never doing one single requirement that is Florida law for 17 years constitute an active ,legal HOA.....forever?

2.Florida law( F.S. 607.1420(1)) states if the corporate filing is not done by May 1- it’s a $400 fine. If it is not paid by the 3 week of August, the Corporation is administratively dissolved. The name is up for grabs ect. It states a special request must be made to the state to reinstate the corporation? Can someone just pay the back taxes for the corporation and re-instate it like that, with no consultation of all those it effects?

3.If we still have an HOA and all of this is legal and we have to be forced to participate, will all infractions of the covenants on existing homes be grandfathered in? example-The rules state no satellite dishes.... at least 40 homes have satellite TV.

4. If we must proceed what statues determine how to create a board when the first board was not appointed by the developer? what is a quorum ? What percentage of owners need to vote ect. There is nothing in the "HOA BIBLE -The Law of Florida Homeowners Associations" that address's how to start with no existing control. Is there case law that establish this procedure?

Thanks to all who can HELP!
AugustinD
Posts: 5,144
Posted:
1.
I am not sure. The HOA might only nominally exist, without enforcement authority, rendering the HOA powerless. More below.

2.
Not sure. Try the Florida Department of Revenue and Florida Department of State, Division of Corporations, to see if they can respond to this question. See http://floridarevenue.com/taxes/businesses/Pages/nonprofit.aspx and http://dos.myflorida.com/sunbiz/

3.
I think it's more in favor of the 2/3rds who do not want a HOA than you think. I think you community has an "abandonment of covenants and bylaws" situation, voiding the covenants and bylaws. This is from case law nationwide.

4.
The Bylaws are likely clear on how annual elections are supposed to be held; quorum; and so on. I do not think it matters that the Developer never appointed a board at turnover or oversaw an election. But like I wrote above, this all may be moot, because the covenants and bylaws are voided through not being enforced for such a long time.

Also --

5.
The hoatalk.com Floridians usually offer substantive thoughts.

6.
Check the HOA CC&Rs for what it takes to amend the covenants. In the worst case, If you have about 2/3rds who oppose establishment of a HOA, and given that the covenants have not been enforced pretty much ever, I think it might be easy to throw out the covenants lock, stock, and barrel via a legal vote done per the covenants. You also want to check the CC&Rs for any wording about dissolving the HOA and what percentage of owners must vote for this to implement it.
GlenM4 (Tennessee)
Posts: 141
Posted:
A lot of good questions. But wanted to add if the CCRs where there when you bought the land / house. The CCRs are not dissolved, even if there is no HOA you still have to follow the CCRs. Maybe someone that knows this better can verify this, But its something I have always been told.
AugustinD
Posts: 5,144
Posted:
Just a couple of sites that discuss abandonment of covenants in Florida:

https://theclosingagent.com/termination-homeowners-covenants-restrictions/

https://fraudlawyersflorida.com/2015/02/22/contract-abandonment-may-automatically-rescind-an-agreement-to-arbitrate/
Note: a set of covenants is seen as a contract. The Covenants typically refer from time to time to the Bylaws. I think a failure to elect directors et cetera per the Bylaws, and year after year, would be inconsistent with the existence of the contract (the covenants and bylaws) and likely render them null and void.
CjC
Posts: 210
Posted:
Read the CCRs to see what percentage you need to dissolve the HOA> Our specifically states a percentage. Maybe you can get that for a vote to dissolve.
CarolF (Florida)
Posts: 435
Posted:
Lee - do you have any "common property", or things like retention ponds that are your responsibility? Are the roads county maintained?
TimB4 (Tennessee)
Posts: 21,059
Posted:
Lee,

A lot of this will depend on the language of your CC&Rs.

If there is common area to maintain (roads, entrance monuments, playgrounds, storm water management devices - ponds, swales, etc) or services to provide (trash/recycling, electric lighting, etc.) the documents need to be rewritten to remove that responsibility.

If there is language requiring prior approval for exterior changes - the documents need to be rewritten to remove that responsibility.

You state that a management company was contacted. If they were not associated with the Association, then you may need to legally challenge the action. Therefore, you may, unfortunately, need to consult with an attorney to see what legal options there may be. Gather neighbors together to share the cost.
BenA2 (Texas)
Posts: 1,273
Posted:
Quote:
Posted By GlenM4 on 05/17/2018 9:16 AM
A lot of good questions. But wanted to add if the CCRs where there when you bought the land / house. The CCRs are not dissolved, even if there is no HOA you still have to follow the CCRs. Maybe someone that knows this better can verify this, But its something I have always been told.

This is correct.

GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By LeeF3 on 05/17/2018 8:43 AM
3. If we still have an HOA and all of this is legal and we have to be forced to participate, will all infractions of the covenants on existing homes be grandfathered in? example-The rules state no satellite dishes.... at least 40 homes have satellite TV.

I'm only going to address this. The FCC OTARD rules promulgated 20 years ago are pretty clear in that homeowners cannot be restricted very much, if at all, when they want to put up a 1-meter or less dish on their own property. Valid safety concerns might be a reasonable restriction ("it might blow away in a hurricane" isn't one of them), but an association can't require professional installation or demand where the dish must be placed. An association can't even require the homeowner to submit an application in advance. Nothing that introduces delay into the process is permitted.

In general there's a 5-year statute of limitations in Florida and I think (not an attorney) that any infractions or violations more than 5 years old are probably grandfathered in.

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