πŸ’¬ Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account β†’

⚑ Takes 30 seconds

Already a member? Log in

RamC (Florida)
Posts: 8
Posted:
We live in Pasco County. Florida in a 55 plus community. Our clubhouse is owned by the Developer with mandatory membership. The club owner has attached a document containing Covenants as Article IX of Master Declaration. The document is completely one sided and he claims that he has full authority to charge monthly operational expenditures without approval from home owners. we have 167 homeowners and Clubhouse became operational in the year 2020 and monthly bill for homeowner was around $200 till 2023. The Club has a separate voluntary Food Club for those who want to dine in with separate payment arrangement. Last June 2023, the developer turned over the HOA to the homeowners. During September 2023, he sent a special invoice of $500000 of loss claimed to be incurred during the year 2022. He send an invoice asking every homeowner to pay $3600 within 10 days. The HOA on behalf of homeowners have filed a complaint with the court indicating that the Club owner violates State laws and case is not yet heard. In December 2023, the Club Owner suspended the membership and call the members as members not in good standing. He installed a Trespass sign preventing members to enter and threaten to prosecute those who crosses the trespass sign. Homeowners have paid their monthly dues regularly and can the Club owner prevent the members using the Clubhouse. Most of the occupants are over 65 plus. Also during 2024 year from January, increased the club fees to $603. He also filed a small claims court to collect the special invoice with penalty initially for 7 homeowners. What are our options? Where can we report about the illegal claims made by the Clubowner. Any help for reporting to government authorities will be appreciated. He is harassing the Senior citizens and use the clubhouse as money machine to fill his pockets.
TimB4 (Tennessee)
Posts: 21,061
Posted:
Ram,

This is going to boil down to what is in the CC&Rs.

If the Declarant has a right to amend the CC&Rs at any time (they typically do), then the amendment would stand unless they transferred that right to the Association. Turning over control (the running) of the Association to the membership is not the same as transferring declarant rights.

I agree the special assessment sounds suspicious. However, as I said, it is all going to depend on what is in the CC&Rs, the Bylaws and the Articles of Incorporation.

NOTE Since their is a court case in process, I would strongly urge you (and others) not to discuss the issue in writing, social media or this forum. What is said may be used in the legal battle and nobody would want an innocent comment to cause issues. Defer to the Attorney and ask questions of them.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Ram

So what if all of us agree to the is screwing you all. What do you suggest we do?
MelissaP1 (Alabama)
Posts: 13,836
Posted:
We are getting one side of the story here. It may mean reading between the lines and playing a little "Devil's advocate". Meaning that the Developer that owned the HOA made it mandatory you all be "Clubhouse" members. The question I have on this arrangement is are you all not to be part of the HOA anyways? Is the Clubhouse a separate element?

Plus is this a "For Profit" HOA setup? Most HOA's are non-profit but not charitable corporations. This Developer could be a "for profit" corporation. These types tend to happen in those that have Clubhouses/Food establishments/Golf courses. This sounds similar to your HOA situation. That means that your contributing to the expenses of these amenities. If you use them, then got to pay for them.

Now it sounds like this arrangement may have been running at a loss. This is something the Developer probably setup under his/her corporate name. They probably own the clubhouse. The HOA may be turned over to the owners now. It sounds like the Developer has kept this element/amenity as their business. Since they made you all basically "Shareholders" in that investment, he's now trying to collect those losses incurred during that arrangement period.

Is it illegal? It is hard to tell. You were all members and maybe part owners in this collaboration. The developer owns the place, then they can restrict whom are no longer considered "co-owners" to the clubhouse. They want "paying customers". The special assessment is now for the losses the developer incurred when you all were "owners". That could be the logic the developer is applying.

Take a different view on the situation. It may help in figuring out if the Developer is out of control or trying to collect from "former business associates".

Former HOA President
DeanJ
Posts: 1,786
Posted:
Amazing what you can find online.

Section 5: Club Charges β€” In consideration of the construction and providing the use of the Anand Vihar Club to each Owner, each Owner by its acceptance of its deed to its Unit shall be deemed to have specifically covenanted and agreed to pay all Club Charges which are set forth herein. The Anand Vihar Club Owner presently intends to collect the Club Charges on a monthly basis but reserves the right to change the payment period from time to time (e.g., to require payment on a quarterly basis).

Notwithstanding the foregoing, the Anand Vihar Club Owner may require an Owner or all Owners to pay Club Charges on an annual or other basis, in advance, based on prior payment history or other financial concerns, in the Anand Vihar Club Owner’s sole discretion.

(a) Club Operating Costs. Each Owner agrees to pay and discharge, in a timely fashion when due, its pro rata portion (as hereinafter set forth) of the Club Operating Costs. The Owners shall collectively bear all expenses associated with the Anand Vihar Club.”

https://neighborhoodnewsonline.net/anand-vihar-residents-at-odds-with-developer-over-clubhouse-rules/
RamC (Florida)
Posts: 8
Posted:
Thanks a lot dear Melissa:
Your comments are quite valuable. The developer still owns the club but am I right to assume that he has to operate the Club by the provisions of Chapter 617. Our properties can be called as Deed restricted and governed by Covenants stated in Article IX. We have been paying the monthly Club dues through HOA from years 2020, 2021,2022 and 2023. He conducted a budget meeting, adopted and established the budget for the years 2020 and 2021. He did not adopt a budget for the years 2022, 2023 and 2024. We did not pay attention to the budget requirement for the years 2022 and 2023 since the increase in monthly payments were within 5 percent increase. But this year he asked the members to pay $603.54 from $214 for the year 2024. After the turnover of HOA during June 2023, he produced special invoice claiming $500000 of budget deficit. Everything was done without a meeting and discussion with the homeowners. Which Florida Department is responsible for monitoring the misappropriation of funds by the Club Owner?
Any comments or help from the community is highly appreciated.

MASTER DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS OF ANAND VIHAR
ARTICLE I DEFINITIONS
Unless the context expressly requires otherwise, the following terms mean as follows wherever used in this Declaration, the Association's Articles of Incorporation, or the Association's Bylaws.
Section 1 "Anand Vihar Club" shall mean that portion of the Property that is privately owned by Anand Vihar LLC, or any of its affiliates, successors, successors in title, or assigns, including without limitation any not for profit corporation hereafter formed or established under the provisions of Chapter 617, Florida Statutes, in order to own, operate and/or maintain the same, which portion of the Property is depicted and designated as "Club Property" on the Subdivision
ARTICLE IX ANAND VIHAR CLUB COVENANTS
Section 6 Determination of Club Operating Costs.
(a) Fiscal Year. The fiscal year of the Anand Vihar Club shall be the calendar year.
(b) Adoption of Club Budget. Club Charges (other than Dining and Beverage Charges or Special Use Fees payable by an Owner, which shall be billed to an Owner with Club Charges) shall be established by the adoption of a projected operating budget (the "Club Budget"). Written notice of the amount and date of commencement thereof shall be given to each Owner in advance of the due date for the first installment thereof.
(c) Adjustments if Club Budget Estimates Incorrect. In the event that the estimate of Club Operating Costs for the year is, after the actual Club Operating Costs for that period is known, more or less than the actual Club Operating Costs, then the difference shall, at the election of the Anand Vihar Club Owner: (i) be added or subtracted, as the case may be, to the calculation for the next ensuing year; (ii) be immediately collected from the Owners by virtue of a special invoice which shall be payable by each Owner within ten (10) days of mailing; or (iii) the remaining monthly Club Charges shall be adjusted to reflect such deficit or surplus.
DouglasK1 (Florida)
Posts: 2,046
Posted:
Quote:
Posted By RamC on 01/26/2024 4:11 PM
Which Florida Department is responsible for monitoring the misappropriation of funds by the Club Owner?

Like most states, Florida really doesn't have an agency that acts as the "HOA Police" to enforce HOA laws. The DBPR (department of business and professional regulation) supposedly does provide some assistance but I've never see a thread here where they have been useful. Unfortunately that means the main enforcement method would be suing the association.

Escaped former treasurer and director of a self managed association.

🎯 You've read this entire discussion

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

  • βœ“ Ask follow-up questions
  • βœ“ Share your experience
  • βœ“ Get expert advice
  • βœ“ Access 350,000 discussions
Create Free Account β†’

⚑ Takes 30 seconds

Already a member? Log in here