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RudyC (Florida)
Posts: 4
Posted:
Our deed restrictions and HOA are about to expire on 01/01/2020 in the absence of a 75% homeowner vote to continue them. This HOA was formed in 1972 under chapter 617 but was re-stated in 2003. Florida recently passed FS 720.3032 regarding MRTA(712.01 - 712.06) which would require 2/3 of the board to vote to preserve the restrictions and covenants without homeowners approval. Would this override the expiration date of 01/01/2020 and the need for a 75% homeowner vote? Or is this statute just designed to protect from MRTA automatic expiration of restrictions beyond 30 years?
AugustinD
Posts: 5,144
Posted:
-- I think whether a 75% members vote is still required is the bigger question. My sense is that this 75% requirement is stricter than the new Florida statute, so here the stricter requirement trumps the less restrictive one.

-- Also all members of the HOA agreed to buy into the HOA in part because of what the Declaration says. HOA members banked on the 75% requirement being a part of the 'contract' when they bought. I think this means HOA members should be able to legally enforce the 75% requirement.

-- On the other hand the intent of the statutes over the years on this subject is to make it easier for HOAs and their covenants et cetera to continue.

-- I believe your question about the 75% members vote needs to go to a well-qualified HOA attorney. You could try writing the law firm at the link below asking for a quick answer.

-- Were it not for the 75% vote question, then right now, I think only a simple board majority vote is required, and it has to happen annually. It appears the 2/3rds requirement is old law and no longer valid. See below.

FS 720.303(2)(e) states, "At the first board meeting, excluding the organizational meeting, which follows the annual meeting of the members, the board shall consider the desirability of filing notices to preserve the covenants or restrictions affecting the community or association from extinguishment under the Marketable Record Title Act, chapter 712, and to authorize and direct the appropriate officer to file notice in accordance with s. 720.3032."

See
http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0700-0799/0720/Sections/0720.303.html

and

http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0700-0799/0720/Sections/0720.3032.html

See discussion at sites like

https://www.legalscoopswflre.com/condominium/its-now-easier-to-preserve-hoa-restrictions-for-some/

and

https://independentamericancommunities.com/2016/01/08/florida-legislation-would-ensure-that-hoas-can-never-expire/

GeorgeS21 (Florida)
Posts: 3,808
Posted:
Rudy,

I think you have two issues:

1. Your CC&Rs are due to expire due to some provision in those CC&Rs. Where did the 2020 date originate? (2020 is 48 years from 1972 and 17 years from 2003 - both odd numbers - UNLESS the 2003 restatement was for the exact date of Jan 1, 2020?). If the restated CCRs (assuming this was all done legally) do expire without 75% agreement, then they expire because they are supposed to by the CCRs.
2. My read is that Florida's 1963 MRTA law extinguishes CCRs 30 years after the root deed. If my read is correct, then yours may have expired 30 years after 1972 (2002) - UNLESS, you also PRESERVED your CCRs at the same time you restated those CCRs.

Here's an article that appears to be accurate and explains a bit more ...

https://kbrlegal.com/homeowner-associations-be-aware-and-wary-of-the-marketable-record-title-act/

My read of your direct question is that preservation of MRTA will not continue your CCRs if those CCRs have a specific termination date. (If you have not already preserved prior to 1972+30=2002, then your CCRs are already extinguished under MRTA)
RudyC (Florida)
Posts: 4
Posted:
George, the 01/01/2020 date was written into the original deed restrictions drafted in 1972 and then were re-instated in 2003. Yes, I believe they were a year late in 2003 but they somehow went through.
GeorgeS21 (Florida)
Posts: 3,808
Posted:
Rudy,

When you say "reinstated" are you referring to the CCRs being rewritten or somehow updated or just agreed to by 75% of the owners? (I'm assuming 75% as you noted in your original post)

I'm not sure what you mean when you say, "they somehow went through" ... this sounds like you preserved your CCRs under MRTA ...

If you simply rewrote or restated or modified etc your CCRs in 2003, then it was pretty irrelevant as they had already been extinguished by MRTA in 2002 (30 years after their root).

I'm confused.
RudyC (Florida)
Posts: 4
Posted:
Restated and amended in 2003 with the county clerk well before my time . The original 1972 and the Restated and amended CCr's state that these covenants and restrictions will terminate on 01/01/2020 unless 75% of the homeowners agree to continue them. I truly doubt someone in 2002 didn't do the correct procedure for MRTA. I am new at this. I don't mean to confuse.
RudyC (Florida)
Posts: 4
Posted:
Restated and amended CCR's in 2003 with the County Clerks office.
DouglasK1 (Florida)
Posts: 2,046
Posted:
Quote:
Posted By AugustinD on 02/26/2019 9:14 AM
-- I think whether a 75% members vote is still required is the bigger question. My sense is that this 75% requirement is stricter than the new Florida statute, so here the stricter requirement trumps the less restrictive one.


It seems to me that the built in expiration provision is totally separate from MRTA so neither restriction trumps the other, they are separate. For the restrictions to continue, both the internal provisions and MRTA provisions would need to be met.

A good question is whether MRTA has already elapsed years ago.

Escaped former treasurer and director of a self managed association.
GeorgeS21 (Florida)
Posts: 3,808
Posted:
OK.

MRTA has been in effect since 1963 and has caused untold amounts of damage to neighborhoods who were unaware of the consequences of not preserving or reinstating their CCRs.

So, starting with 1972, once 30 years elapse it is 2002. Sounds like your HOA recognized what happened - your CCRs expired in 2002 - so they collected enough votes to restate the CCRs in 2003 and then refiled under MRTA. This restatement and filing in 2003 restarted the MRTA clock as it was a whole new document so the CCRs would expire again in 2033 - EXCEPT they left the 2020 expiration date in the newly restated document.

Hmmm ... you are saying they left the 2020 expiration date in the restated CCRs - but, did not include an automatic update provision? (most CCRs have something like "20 years and in 10 year automatic extensions unless voted on by xx%")

Under these circumstances I think you will need to rewrite/restate/update your CCRs with whatever percentage support is required - you should include an automatic update provision in these new CCRs.

BUT, this does not exempt you in any way from not exceeding the 30 years between MRTA filings.
GenoS (Florida)
Posts: 4,276
Posted:
If the governing documents say the HOA and deed restrictions expire at some point unless 75% of the owners agree to continue the association, then that's one thing. The way MRTA works to expire deed restrictions is something else entirely.

MRTA extinguishes covenants and deed restrictions 30 years after the "root of title" on a property-by-property basis. If the board did something in 2002 to preserve the covenants, then there should be evidence of that in your county's official records. A re-stated and amended Declaration of Covenants (or CC&Rs, whatever yours are called) by itself isn't enough to preserve the covenants. If no one can point you to a proper MRTA preservation notice that was recorded in your county's official records in 2002 then your covenants may have already expired 17 years ago. Again, recording re-stated and amended documents by itself is not enough to re-start the MRTA 30 year clock.

Getting 75% your fellow owners to agree to extend the life of the HOA is another matter entirely, and depends on the wording of your documents. By way of contrast, my HOA's original CC&Rs called for the HOA to be in existence for 25 years and, after that, to be automatically renewed every 10 years UNLESS 90% of the homeowners decide not to continue it. None of that has anything to do with MRTA.

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