GaryJ5 (New York)
Posts: 14
Posts: 14
Posted:
I own a home in a S.W. Florida community that was purchased from the original Grantor and developer by GE Capital Corporation and then sold to a group of homeowners in 2002. The homeowners sold shares or certificates to raise the money for a down payment and received a mortgage. At the time of the sale the park had an HOA authorized by the CCRs. The CCR was dated 1977, and the HOA began in 1981. Upon purchase of the park the a few of the buyers setup 2 Florida non profit corporations under 617 statute. Subdivision and Coop Inc, and then also set up the 2 run by a 3rd corporation as the Master Association. The first 2 were for only the purpose of setting up up the Master Association. The purchase, corporations, master association, all governing documents were all completed without a vote of homeowners or the HOA. The breakdown was 30% of the owners had shares and 70 % did not. The Master Association bylaws and articles of Incorporation gave all the power to just the master association which is 9 people out of close to 700 homes. The only voting rights on who those 9 are is controlled by 30% of the owners. To add to the story 8 months after the purchase the HOA had no way to fund and all monthly fees went to the master association by their rules. The HOA became inactive in the state of Florida. The Master Association has become very powerful collecting all the funding, and all non stock holders pay 65% higher monthly fees more than share holders, and have no say in any park government or operation. The master association in 2003 were told by the state that they had to follow the 719 statute for Coops but never told the Association they had to follow the 720 statute for the subdivision. The subdivision is operated by whatever the MA wants under FL617. To add to the story the MA has expanded to several profitable businesses from RV Park, Wifi, Title and Real Estate, and etc. They have put as we know money in CDs and bank accounts worth a large amount. All their accounting is commingled together and there is no oversight. Which means they have alot of our money to be used on lawyers against all that want to change things. Last year they spent $265,000 on a law firm. That is a true number! Is there anyone who has ever seen this before, or can say why Florida doesn't control these situations? Or is this a legal operation that is a legit corporation. The situation has turned into a mess, with 2 sides ruining the property and home values. Thank you for any feed back.