Transition of association control in a community

Started by JamesS39 • 18 replies • 293 views

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JamesS39 (Florida)
Posts: 14

Posted:

Our association Board of Directors is still under the control of the developer. The Declaration of covenants and restrictions states that one year after the last lot is sold the control of the BOD will transfer to the owners. The Florida State statute 720.307(1)(a) says this happens when 90% has been sold. Then (2) sates that when 50% of the partials of all phases are sold, the owners are entitled to elect at least one member of the BOD. The developer is planning to build a phase 2 to our community that will have less than 50% of the total number of homes overall in both phases. My question is, does this mean we have the right to elect a member of the BOD and how do we get this to happen?

LetA (Nevada)
Posts: 2,679

Posted:

When you meet the threshold to elect one member to the BOD the property management company will send out nomination forms. You fill out a nomination form and send it to the PMC. The
PMC will then send out ballots to vote for the one BOD. The same will happen when it is time to turn over the community.

JamesS39 (Florida)
Posts: 14

Posted:

So what if they do not send this out. The new phase will have approximately 85 units while phase 1 has 92 of which 2 are not sold. What if the Property Management Co. does not automatically do this?

CathyA3 (Ohio)
Posts: 6,299

Posted:

We elected homeowner board members at the annual meetings after crossing the sales thresholds specified in our bylaws - could something like that be going on?

No reason you can't raise the question, though. If you have a property manager, I'd start with that person and see what they say.

JamesS39 (Florida)
Posts: 14

Posted:

Thanks

KerryL1 (California)
Posts: 14,550

Posted:

Do not, James, take the PM's interpretation as completely accurate. As Cathy wrote, it's a "start."

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By JamesS39 on 02/28/2022 11:09 AM
So what if they do not send this out. The new phase will have approximately 85 units while phase 1 has 92 of which 2 are not sold. What if the Property Management Co. does not automatically do this?

Then remind them.

AugustinD
Posts: 3,698

Posted:

Quote:

Posted By JamesS39 on 02/28/2022 10:34 AM
Our association Board of Directors is still under the control of the developer. The Declaration of covenants and restrictions states that one year after the last lot is sold the control of the BOD will transfer to the owners. The Florida State statute 720.307(1)(a) says this happens when 90% has been sold. Then (2) sates that when 50% of the partials of all phases are sold, the owners are entitled to elect at least one member of the BOD. The developer is planning to build a phase 2 to our community that will have less than 50% of the total number of homes overall in both phases. My question is, does this mean we have the right to elect a member of the BOD and how do we get this to happen?

I have reviewed 720.307. Your questions cannot be answered without more information. Please answer the following:

-- How many phases are there?

-- What percentage of the parcels in each phase have been conveyed to members other than the developoer?

For the interested reader, the entirety of FS 720.307 appears here:

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

AugustinD
Posts: 3,698

Posted:

Quote:

Posted By AugustinD on 02/28/2022 3:43 PM

Also,

-- How many parcels are there in each phase?

JamesS39 (Florida)
Posts: 14

Posted:

There will be two phases. Phase on has 92 units of which 2 are not sold. Phase 2 will have I believe around 87. None of them are sold as they are just beginning to develop that phase.

JamesS39 (Florida)
Posts: 14

Posted:

That was supposed to say phase 1.

AugustinD
Posts: 3,698

Posted:

JamesS39, I apologize for not reading every post and compelling you to repeat yourself.

Quote:

Posted By JamesS39 on 02/28/2022 4:05 PM
There will be two phases. Phase on has 92 units of which 2 are not sold. Phase 2 will have I believe around 87. None of them are sold as they are just beginning to develop that phase.

-- Pursuant to 720.307 (1) (a), the HOA is nowhere near the required 90% of the parcels in all phases. Right now, the number is about 90 / (92+87) = 50.3%. Hence the owners may not elect a majority or more of the board.

-- Pursuant to 720.307(2), if your numbers above are correct, then the HOA has just reached the threshold. The members are entitled to elect at least one director.

-- If one replaces "all" in 720.307 (1) (a) and 720.307 (2) with "each," then the meaning changes.

Such is my interpretation at this time. If you can get someone else to actually read 720.307 and opine, I am ready to hear their take.

Regarding how to make this happen, you write the developer's registered agent a short note like the following, and you send the note certified mail, return receipt requested.

Dear Developer Dutton,

At this writing a little over 50% of the parcels in all the phases of the community have been conveyed to members other than the developer. Pursuant to FS 720.307 (2), would you please arrange for an election to fill at least one seat on the Board by ___, with of course said election complying with all statute, Bylaw and Declaration requirements for notice?

Please let me know what you intention is on this matter by March 15, 2022.

Thank you,

name
address
email addie
phone number

The registered agent is likely listed at the Florida Secretary of State site, under the corporate information available via a seach.

JamesS39 (Florida)
Posts: 14

Posted:

Thank you for this information. I knew that the 90% was not yet reached for the majority. I was more interested in the latter.

JamesS39 (Florida)
Posts: 14

Posted:

What goes in the blank?

AugustinD
Posts: 3,698

Posted:

Quote:

Posted By JamesS39 on 02/28/2022 10:11 PM
What goes in the blank?

For me to fill in the blank, I need to know the notice requirements for a meeting of the owners. E.g. if the Bylaws say that owners must be given 30 days notice of an owners' meeting, and you mail the request today, then I'd say the date to put in the blank above should be no earlier than April 22. In other words, give the Board and manager at least a couple of weeks to get its stuff together regarding a special meeting of the owners.

From FS 720, regarding meetings of the owners:

NOTICE OF MEETINGS.—The bylaws shall provide for giving notice to members of all member meetings, and if they do not do so shall be deemed to provide the following: The association shall give all parcel owners and members actual notice of all membership meetings, which shall be mailed, delivered, or electronically transmitted to the members not less than 14 days prior to the meeting. Evidence of compliance with this 14-day notice shall be made by an affidavit executed by the person providing the notice and filed upon execution among the official records of the association. In addition to mailing, delivering, or electronically transmitting the notice of any meeting, the association may, by reasonable rule, adopt a procedure for conspicuously posting and repeatedly broadcasting the notice and the agenda on a closed-circuit cable television system serving the association. When broadcast notice is provided, the notice and agenda must be broadcast in a manner and for a sufficient continuous length of time so as to allow an average reader to observe the notice and read and comprehend the entire content of the notice and the agenda.

JamesS39 (Florida)
Posts: 14

Posted:

Thank you.

JamesS39 (Florida)
Posts: 14

Posted:

Do you know of where one can acquire a printed copy of Fl 720? I know I can find it online and print it out but this uses a lot of printer ink. I find it easier to research with the actual printed items. I know...old school lol.

AugustinD
Posts: 3,698

Posted:

Quote:

Posted By JamesS39 on 03/01/2022 7:31 AM
Do you know of where one can acquire a printed copy of Fl 720? I know I can find it online and print it out but this uses a lot of printer ink. I find it easier to research with the actual printed items. I know...old school lol.

I do not.

At the Florida legislature site I use, FS 720 prints to a 49 page pdf file, single spaced, small-ish font. I do not see any agencies handing this out to free.

I profane (corporate advertising department-controlled *&^%$#) technology more and more every year. I will not read a book unless its 100+ pages are sitting in my hands.

I have never sat down and read FS 720 cover to cover. I like the digital version because it is super easy to search, as long as one is pretty well-informed on the best vocabulary to use to search.

Two cents.

JamesS39 (Florida)
Posts: 14

Posted:

Thanks again.

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