💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

RoseM10 (Florida)
Posts: 11
Posted:
Discussions on a Community that has been created under Florida State Statute 617 and is a Club formed for mobile home owners. We have been created under this not for profit state statute 617 but are also mobile home owners within this club. We have Articles of Inc, ByLaws and a community elected Board of Directors. We seem to be lacking in homeowner rights for the community or the membership. But seem to be solely, without much recourse as homewoners, at the mercy of the Board of Directors decisions. The BOD have most of the authority to make the decisions, have the platform, limiting the membership to restrictive participation of these rulings.

I do know, that in one point in time (1999), the Florida State Statute 617 had Statute 617.301 to 617.312 which did cover homeonwer, co-op etc rights but was removed in 2000 which left our not for profit community without these rights.

By our Previous Attorney......We at one time had reference in our bylaws to Florida State Statute 719 which was created for cooperatives. This statute gave us reference to rights as co-op owners/mobile home owners. A previous BOD who advised us to get a new attorney (our present attorney) put an amendment to remove this reference from our bylaws at the advise of the present attorney.n And guess what.............the membership voted it out. Presently we have very few rights that are being honored since then.

I as a community member would like to regain those rights for the membership homeowers. There seem to be very little I or anyone can do to recover those rights. Several of us have gotten together and attempted to bring this to our BOD attention but we are not being heard? We do not have a platform like they do? As Many of us have attempted to make the membership aware of their rights. We are a Senior Community. The majority of the membership just wants to come down as snowbirders and enjoy their time here and do not want to take an active role. I and some other members are full time residents of this Club that was incorporated under FL statute 617. We are happy in our present homes. We do not want to move due to Board Members having all or most of the power. We want some homeowner rights.

I believe that the BOD is not doing their fiduciary duties of care. We are restricted to 3 minutes at any meeting they choose to hold per when they choose to hold them. When we speak we are not being heard or even in some cases being heckled at open meetings by other members in the community. I know that this is not acceptable or professional behavior to take place at our meetings. The BOD seems to allow this behavior without calling the meetings to order. The Board of directors is spending community funds through the attorney to restrict members within the community sometimes Using the words "at the advise of the attorney" or " it has been advised by the attorney".

Again..........we are a senior community of people of the thinking that they are to just sit down and behave themselves and don't necessarily stand up for themselves. We are of a generation that bitching in the street is ok but don't make waves?

I am aware that legally it is hard to prove that The BOD is not doing their fiduciary duties as per stated? As an individual I do not have the funds to fight this.....nor can not get enough contributed funds to get our rights back.

Please .....if anyone is of legal opinion or can help with any advise or any way or suggest any remedies to persue that I have not already persued..............please help?
ElleN (Idaho)
Posts: 4,420
Posted:
I would want to know if the board is creating what are de facto covenants, especially covenants that restrict the use of a lot. If so, the likelihood that the board is breaking the law is high.

Now I am going to ask what is really a hard question for many people new to land use law. If you do not understand what I am asking, please say what word or what part does not make sense.

At the county clerk's office, are there any covenants recorded for the land on which the mobile home lots sit?

If you go to the county clerk and ask this question, use my wording verbatim above.

Covenants are not the same as bylaws. (If this is pedantic, I apologize. We are all strangers here. I do not know what people's knowledge level is.)

Consider redacting identifying information from the HOA's Articles of Incorporation and bylaws and posting them here. Each attachment can be up to 200 kilobytes.
CathyA3 (Ohio)
Posts: 6,299
Posted:
Who actually owns the land? Do the mobile home owners pay rent to the owner of the land, or do they own the lots under their homes? This could affect members' rights and responsibilities.
DeanJ
Posts: 1,786
Posted:
I have tried to understand your post. Section 617 is not HOA law. 617 addresses non-profit organizations. . It appears your situation is a non-profit club was formed and membership rules established. Clubs may, and do, have multiple tiers of memberships. Some have voting rights and some memberships are at the associate level. At some point in time the club documents were amended to exclude the trailer owners from the club. This is legal.

Non-profit organizations are given a lot of latitude to establishes their membership guidelines as long as they are not legally discriminatory. Besides collective begging, I don’t see a path to compel the club to re-include the trailer owners.

Even if the Club is operated by an HOA, many declarations provide the Board authority to establish special service packages to portions of the property, exclude other portions and charge owners receiving the special service package. In this event, all the lot owners still have the right to vote and hold office.

RoseM10 (Florida)
Posts: 11
Posted:


Thank you for your response! I looked up the word pedantic and now know what it means. And no...I am not of a legal nature but am beginning for an old gal to know more than I need to know at this stage of my life. I appreciate anything at all that is helpful and will look up anything I need to for to understand what is being said to me. I have read the state statutes that we were incorporated under. Have a good understanding of them. I have read our by laws over and over again. I have read some of the Florida statues of 719 which covers co-ops. I know way more than I need to know but can't seem to find and answer or a direction to go in at this point in time to fight to get back any rights as actual individual owners of mobiles which sit on a piece of property which we all own by being members in the club?

First of all we are not a homeowner association. We are a not for profit club that is incorporated under Florida State statutes 617. We do not have any home owners rights. Maybe a few things we can do in our bylaws if the BOD would honor them? I am stumped as to what can be done to get some rights besides what is limited within our by laws. So to speak we are an Oligarchy organization run by a small group of people who we elected to be our BOD. The land was bought and the club owns it. All of the assessments we pay go to the maintenance of the Club. We raise no funds other than what are assessments are. We have a membership which we paid for when we joined and our assessment which pays for all expenses on the budget. We have very little protection against whatever our BOD chooses to do or spend even when it is spent on something needless. It is somewhat of a hopeless situation for those in the community who care about what is happening?

That is why I am out here hoping someone can direct me in to how to stop what is happening in our community. We own our mobiles which sit on the land that belongs to the club. But in essence WE ARE THE CLUB or the corporation. The land that we sit is the club land!

I spoke with a gentleman in our park that is knowledgeable and he told me we do not have any covenants on file at the county clerks office.

There are members within the community who feel that it is a somewhat hopeless situation! And honestly we do not have the money to hire an attorney to fight this situation to get us some rights for our community?
RoseM10 (Florida)
Posts: 11
Posted:
Section 617 is a not for profit corporation. We have very little in our bylaws to protect us against any bad decisions that our BOD makes. Thank you for your post and information. It is disheartening to hear but I am beginning to understand that maybe there is nothing that can be done to stop any BOD that we elect to doing anything that they want as long as it is not illegal. They are basically protected against any decisions they make? Or anyway they want to treat the membership? They may not be doing what their fiduciary duties are but who cares. Maybe just a few of us and I guess we will just have to sit back and accept it or sell and move.

But thank you for reading and posting!
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By RoseM10 on 01/12/2024 4:29 PM
We own our mobiles which sit on the land that belongs to the club. But in essence WE ARE THE CLUB or the corporation.
Please quote verbatim every instance where the bylaws use the word "member."

Please quote verbatim every instance where the articles of incorporation use the word "members." If you do not have a copy of the articles of incorporation, then contact the Florida Secretary of State and ask how you can get a copy.

If you are a lawful member of this corporation, and the members are permitted to elect directors, then this is likely the best avenue to cause change.

Otherwise I cannot respond constructively to your concerns until I at least know exactly what the bylaws and articles of incorporation say about "members."

RoseM10 (Florida)
Posts: 11
Posted:
CathyA3...Thank you for your response.

We are a club with a membership fee which is in a membership fund. We pay assessments that take care of all of the expenses in the budget. The land is owned by the club.....but everyone in the park is actually THE CLUB. We do not pay rent. We pay monthly assessments which go towards all expenses in the club which is basically a piece of property that all of our mobiles are located on. We are so to speak....the owners of the club! But do not own each individual lot that we sit on!

RoseM10 (Florida)
Posts: 11
Posted:
Dean J.....

Are you of the legal profession? If so can you answer a question for me or maybe you can answer it anyway? Yes...we were incorporated under st statute 617 as a club. A group of people or renters at that time (1979) decided to buy this piece of property from the city. Membership fees charged for being a member. Mobiles purchased from owner to next owner. Membership fee paid to the club. Assessments charged monthly to the club. We the membership elect the BOD to serve. We vote on any ammendments to BYlaw that the BOD proposes. The BOD creates the rules and policies to run the club. The BOD are members of the club themselves. I am aware that we as members are limited to what we can do if the BOD is not willing to actually adhere to their fiduciary duties. They are our neighbors even if they are not doing right by the membership.

At one point in time 617 had statutes that were in them that gave us rights as homeowners. They were 617.301 to 617.312. They were removed in 2000. But those same statutes exist in 719, 720 etc. We had 719 referenced in OUR CLUB BYLAWS at one point in time but the BOD told us the attorney advised us to remove it. An amendment was proposed to remove and the membership voted to remove. Can we legally put it back in to our bylaws. The old attorney I believe advised them to leave it in? But the new (present) attorney advised us to take it out. I do not know the history on it due to the present BOD not wanting for us to know the history on it. This present BOD created a policy this year when someone asked to view records. The policy is that the membership will have to pay to view records. Another deterrent to the membership. Yes it is legal according to 617. Everything they do is legal according to 617. Not necessarily the best thing for the community but legal!

Can we be a corporation under 617 and still reference 719 in our bylaws? This will give us back co-op rights or owner rights without being an actual co-op created under 719?

If you are of the legal profession maybe you can advise me on where to go to research the history on the removal of those statutes from 617. I just know they existed in 1999 and no longer in 2000?

Thanks

DeanJ
Posts: 1,786
Posted:
Here is how your situation normally operates. You are a member of a non-profit corporation (club) and required to pay a membership fee (assessment). As a privilege of membership, you are permitted to keep a trailer on club property and provided with some level of services.

A member may sell their membership. This usually occurs with sale of the existing trailer. If a member fails to pay the fees, they are simply given notice, removed from membership, and a new membership sold. You are not a homeowner and don’t have homeowner rights.

There are articles of incorporation and bylaws that govern the club. Trustees are elected each year. The bylaws can be changed with a vote of the membership. If you don’t like what is going you need to go to the club meetings, recruit some other members, and vote for changes.
RoseM10 (Florida)
Posts: 11
Posted:
Thank you Dean! I am aware that we need a good portion of the membership to get involved. That seems to be a problem as we are a senior snowbirding community. There is a small group THAT DO want the changes but even after creating petitions to present to the board it is so time consuming getting signatures from people who do not want to get involved? It would be ok with a BOD that cares about the community but we are not always going to elect that kind of BOD? Guess we will have to wait to get them again to make the changes if possible.

I wish it were not so hard to prove that a BOD is not doing their fiduciary duties? And so hard to convince people that what you are doing IS FOR THEM?

Thanks to you for your response!
RoseM10 (Florida)
Posts: 11
Posted:
Thank you Dean! I am aware that we need a good portion of the membership to get involved. That seems to be a problem as we are a senior snowbirding community. There is a small group THAT DO want the changes but even after creating petitions to present to the board it is so time consuming getting signatures from people who do not want to get involved? It would be ok with a BOD that cares about the community but we are not always going to elect that kind of BOD? Guess we will have to wait to get them again to make the changes if possible.

I wish it were not so hard to prove that a BOD is not doing their fiduciary duties? And so hard to convince people that what you are doing IS FOR THEM?

Thanks to you for your response!
ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By RoseM10 on 01/13/2024 2:50 AM

At one point in time 617 had statutes that were in them that gave us rights as homeowners. They were 617.301 to 617.312. [The latter sections] were removed in 2000 [by the Florida legislature.]
Correct. Today:

1999's FS 617.301 is today's FS 720.301
1999's FS 617.312 is today's FS 720.312

FS 720 shows this legislative history.

Today's FS 719 says nothing in its history about either FS 617.301 or FS 617.312.

If the membership has the right to amend the bylaws, then the membership can amend the bylaws to whatever the membership wants, as long as the amendment is lawful. I think it is possible that subjecting this corporation to FS 719 is possible, but a thorough review by an attorney would be needed.

At some point you have to understand that the bylaws and articles of incorporation (AoI) may give you all rights as members. If so, then the members can enforce the bylaws and AoI as if they were contracts. To get constructive advice, this is why you need to quote these two documents (bylaws and AoI) here.

If you do not understand this, then you need to hire an attorney sooner rather than later.
RoseM10 (Florida)
Posts: 11
Posted:
EllenN

Twice now I have tried to reply to you and keep losing what I posted. So will make it short which as you already know will be hard for me. I am definitely wordy!

Thanks much for posting and giving me some direction on to stop looking in 719 and go to 720. The last post was most helpful!

I also found another forum on this site that is titled FL720 vs 617. I will need to go there and see what is being said?

I am not posting anything on our documents due to conflicts amongst BOD and some community members at this time.....but do understand what you are saying concerning references to "members."

Thanks....Rose
RoseM10 (Florida)
Posts: 11
Posted:
Thank you to all for your responses which has enlightened me as to some other possible options to pursue the issue. I am now looking into the co-operative act 719 which actually does suite us best as per a previous attorney. After reading about what a co-op is.....our park does fit the bill? I will do some research on that possibility. We do have a community close to us that is a co-operative. I may get with someone from their along with research on
co-op and see where that leads. Maybe talk with someone on that BOD and see where that leads for information.

Thanks again.....Rose

ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By RoseM10 on 01/14/2024 11:05 AM
I am now looking into the co-operative act 719 which actually does suite us best as per a previous attorney. After reading about what a co-op is.....our park does fit the bill?
By any chance when you purchased the "membership," did you receive a certificate indicating you held x amount of shares in the corporation?
RoseM10 (Florida)
Posts: 11
Posted:
No shares stated. It is a certificate of membership for the not for profit corporation subject to the articles and bylaws of the corporation. I am beginning to think the only way to get rights is to make ourselves a cooperative. I know this might be costly and I know that will be hard to convince everyone that is what we should be?

We are screwed if we continue to elect people that will not do the best thing for the membership and who have personal agenda. All the BOD has to do is convince everyone they are doing the best thing for the community and get the attorney to advise accordingly. Sheep that we are? A few of us are on a mission that might not be able to be accomplished easily or at all!

I do appreciate any advise. I have been looking again at state statutes 617, 719 and 720 to find any references. Actually it is a pretty good search engine. Anything at all I can use? Also been reading on 719 or cooperatives. We are a cooperative under everything that I have read. Damn state of Florida for removing 617.301 to 617.312. We sure could use those because we are a community of homeowners within a not for profit corporation!

Do you have any pull....Can you get that legislation back into Florida 617 for me? That was humor?
RoseM10 (Florida)
Posts: 11
Posted:
ElleN.....

Just out of curiosity.....if this club or not for profit corporation files our taxes and used the below form 1120-H is this an admission to being a homeowners association? I received this information from a previous board member.
 
Form 1120-H is a tax form specifically created for qualifying Homeowners Associations. The reason behind enacting IRC Section 528 was to prevent individual homeowners from being taxed for performing functions typically managed by Community Associations, such as maintaining and managing the common property in a development.

ElleN (Idaho)
Posts: 4,420
Posted:
Quote:
Posted By RoseM10 on 01/14/2024 4:22 PM

Just out of curiosity.....if this club or not for profit corporation files our taxes and used the below form 1120-H is this an admission to being a homeowners association? I received this information from a previous board member.
For either FS 720 or FS 719 apply, the organization has to meet the requirements given in these statutes. Your "club" does not come close.

Quote:
Posted By RoseM10 on 01/14/2024 4:22 PM
We are screwed if we continue to elect people that will not do the best thing for the membership and who have personal agenda. All the BOD has to do is convince everyone they are doing the best thing for the community and get the attorney to advise accordingly. Sheep that we are? A few of us are on a mission that might not be able to be accomplished easily or at all!
It appears some minority may be screwed. It appears the majority is fine with the status quo. This is quite common in all manner of real estate developments.

By any chance is there a lease on each lot.

I suspect you all have more of a landlord-tenant arrangement. It is what it is.

If you think otherwise, exactly what does it take to dissolve one's membership? You cannot sell your membership, can you?

As I posted above, all your legal power likely comes from the bylaws and AoI. If the bylaws and AoI do not help, then oops on you all for choosing to put your mobile home in this particular community. The good news is I bet it is easy to move.

I understand that you do not want to share what is in the bylaws and AoI, to preserve anonymity. But I think this hamstrings you getting constructive assistance or even an opinion that says, yup, based on the bylaws and AoI you really do have no rights. Next time, renter beware.'

The above is not pressure to post the bylaws or AoI. It's just an observation that this forum cannot help a lot without knowing more facts.

DeanJ
Posts: 1,786
Posted:
Quote:
Posted By RoseM10 on 01/14/2024 4:22 PM
ElleN.....

Just out of curiosity.....if this club or not for profit corporation files our taxes and used the below form 1120-H is this an admission to being a homeowners association? I received this information from a previous board member.
 
Form 1120-H is a tax form specifically created for qualifying Homeowners Associations. The reason behind enacting IRC Section 528 was to prevent individual homeowners from being taxed for performing functions typically managed by Community Associations, such as maintaining and managing the common property in a development.


Not an admission at all, probably it means some guff ball is filing taxes using the wrong form.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here