KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
https://www.yahoo.com/news/desantis-quietly-signs-controversial-condo-213646553.html
Interesting read.
Interesting read.
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FL Gov signs Controversial Condo bill.
Started by KerryL1 • 7 replies • 256 views
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CathyA3 (Ohio)
Posts: 6,299
Posts: 6,299
Posted:
It's interesting that there were two different takes on the new law. The first article from the Miami Herald cites the controversial parts of the law. The second from the SunSentinel trumpets "Condo owners get more rights" in the article's headline.
My bird's eye view is that condo owners are getting more "rights" over a smaller piece of the pie. They're actually losing rights over other pieces. To me this sounds like a situation I try to avoid at all costs: one in which I'm held accountable for something over which someone else has control.
My bird's eye view is that condo owners are getting more "rights" over a smaller piece of the pie. They're actually losing rights over other pieces. To me this sounds like a situation I try to avoid at all costs: one in which I'm held accountable for something over which someone else has control.
CathyA3 (Ohio)
Posts: 6,299
Posts: 6,299
Posted:
Quote:
Posted By CathyA3 on 06/15/2024 4:24 AM
My bird's eye view is that condo owners are getting more "rights" over a smaller piece of the pie.
My bird's eye view is that condo owners are getting more "rights" over a smaller piece of the pie.
I thought about this a while longer, and actually this isn't quite accurate. They're getting more options for enforcing the rights they already have.
This new bill illustrates another one of my many Cathy's Rules for Life. If you can get people upset and emotional - eg. angry at "rogue" condo boards - you can fool them into accepting and even embracing things that aren't in their best interests. (Also known as The Demagogue's Playbook.) Not everyone will be fooled, though - hence the second half of the Miami Herald headline "Owners are already threatening to sue".
Unfortunately, I'm betting on the big money interests to prevail here.
LoriM15 (Florida)
Posts: 1,009
Posts: 1,009
Posted:
The first article was interesting because it highlighted what happens when you buy a condo or a property but the COA or HOA doesn't have rights to all the common areas. In this case they were talking about elevators or pools. I have seen these same issues when you buy a property on a golf course (or with a recreation center) but the association doesn't own it. Then the developer goes bankrupt and the land is sold away - and you have no control over what gets built there.
These new bills add to a real problem for condo owners. There was another article today about how soft the condo market is in Miami-Dade county because of the huge special assessments condo owners are facing. In the article, the special assessment was $135,000 on a condo the owners bought for $390,000. They couldn't afford the assessment and ended up selling for $110,000. Much of this is the fault of the COA, because they waived reserves for many years to make it cheaper for everyone to live there. But this is happening all over Florida, and now they add more rules that make it even worse.
It is effecting HOAs too. I just spent several hours putting together a Hurricane Protection Guideline, now required by statute, that consolidates all of our hurricane guidelines in one place. We already had rules for when you can put up shutters or have to take them down, what kind of impact-resistant windows are allowed, rules on buried propane tanks for generators, etc. But we asked our attorney and she said we had to have them all in one place. That may not seem like a big deal, we are also dealing with trying to interpret some of the really stupid changes to the statute.
These new bills add to a real problem for condo owners. There was another article today about how soft the condo market is in Miami-Dade county because of the huge special assessments condo owners are facing. In the article, the special assessment was $135,000 on a condo the owners bought for $390,000. They couldn't afford the assessment and ended up selling for $110,000. Much of this is the fault of the COA, because they waived reserves for many years to make it cheaper for everyone to live there. But this is happening all over Florida, and now they add more rules that make it even worse.
It is effecting HOAs too. I just spent several hours putting together a Hurricane Protection Guideline, now required by statute, that consolidates all of our hurricane guidelines in one place. We already had rules for when you can put up shutters or have to take them down, what kind of impact-resistant windows are allowed, rules on buried propane tanks for generators, etc. But we asked our attorney and she said we had to have them all in one place. That may not seem like a big deal, we are also dealing with trying to interpret some of the really stupid changes to the statute.
DeanJ
Posts: 1,786
Posts: 1,786
Posted:
“ a situation I try to avoid at all costs: one in which I'm held accountable for something over which someone else has control.” and you live in an HOA?
CathyA3 (Ohio)
Posts: 6,299
Posts: 6,299
Posted:
COA, actually - but sure. I'm willing and able to walk away from it if I think that's advisable.
TamaraG7 (Florida)
Posts: 35
Posts: 35
Posted:
Quote:
Posted By LoriM15 on 06/15/2024 9:26 AM
The first article was interesting because it highlighted what happens when you buy a condo or a property but the COA or HOA doesn't have rights to all the common areas. In this case they were talking about elevators or pools. I have seen these same issues when you buy a property on a golf course (or with a recreation center) but the association doesn't own it. Then the developer goes bankrupt and the land is sold away - and you have no control over what gets built there.
These new bills add to a real problem for condo owners. There was another article today about how soft the condo market is in Miami-Dade county because of the huge special assessments condo owners are facing. In the article, the special assessment was $135,000 on a condo the owners bought for $390,000. They couldn't afford the assessment and ended up selling for $110,000. Much of this is the fault of the COA, because they waived reserves for many years to make it cheaper for everyone to live there. But this is happening all over Florida, and now they add more rules that make it even worse.
It is effecting HOAs too. I just spent several hours putting together a Hurricane Protection Guideline, now required by statute, that consolidates all of our hurricane guidelines in one place. We already had rules for when you can put up shutters or have to take them down, what kind of impact-resistant windows are allowed, rules on buried propane tanks for generators, etc. But we asked our attorney and she said we had to have them all in one place. That may not seem like a big deal, we are also dealing with trying to interpret some of the really stupid changes to the statute.
The first article was interesting because it highlighted what happens when you buy a condo or a property but the COA or HOA doesn't have rights to all the common areas. In this case they were talking about elevators or pools. I have seen these same issues when you buy a property on a golf course (or with a recreation center) but the association doesn't own it. Then the developer goes bankrupt and the land is sold away - and you have no control over what gets built there.
These new bills add to a real problem for condo owners. There was another article today about how soft the condo market is in Miami-Dade county because of the huge special assessments condo owners are facing. In the article, the special assessment was $135,000 on a condo the owners bought for $390,000. They couldn't afford the assessment and ended up selling for $110,000. Much of this is the fault of the COA, because they waived reserves for many years to make it cheaper for everyone to live there. But this is happening all over Florida, and now they add more rules that make it even worse.
It is effecting HOAs too. I just spent several hours putting together a Hurricane Protection Guideline, now required by statute, that consolidates all of our hurricane guidelines in one place. We already had rules for when you can put up shutters or have to take them down, what kind of impact-resistant windows are allowed, rules on buried propane tanks for generators, etc. But we asked our attorney and she said we had to have them all in one place. That may not seem like a big deal, we are also dealing with trying to interpret some of the really stupid changes to the statute.
Waiving reserve funding in Florida requires an "owner vote"; any blame rests on the owners themselves. Many of the rules have already been in place; revisions and new laws occur every July 1st. Cheap units/high assessments for associations 20 years and older may result in termination of condominium and/or receivership.
LoriM15 (Florida)
Posts: 1,009
Posts: 1,009
Posted:
Let's make clear that the statutes for COAs and HOAs are different. That article kind of mixes up the two.
For COAs, waiving the reserves did require a vote of the membership. But most people didn't care - it was just a line on their proxy and as long as their condo fees stayed low it seemed like a good idea. I agree though - the owners are at fault because they didn't get involved or educate themselves - but that doesn't mean they aren't taking a big hit. And the requirement for the website and putting all the documents up online will be an issue for many self-managed associations.
Many of the new rules in the HOA bill were already in the COA statute so that's not much of a surprise. But some of them are very intrusive - you can't stop someone from parking anything but a commercial vehicle in their driveway. But the statute doesn't define commerical vehicle. The new law also includes mandatory board education each year and misdemeanor and felony penalties for certain actions by directors. Think about this - the D&O insurance doesn't cover these criminal charges, so any defense would be out of pocket for the director or from the association funds. That's great if the person is really guilty.
Many of the protections for owners were already there in the statute, but they have made it much less attractive for any volunteer to step up and serve on a board.
For COAs, waiving the reserves did require a vote of the membership. But most people didn't care - it was just a line on their proxy and as long as their condo fees stayed low it seemed like a good idea. I agree though - the owners are at fault because they didn't get involved or educate themselves - but that doesn't mean they aren't taking a big hit. And the requirement for the website and putting all the documents up online will be an issue for many self-managed associations.
Many of the new rules in the HOA bill were already in the COA statute so that's not much of a surprise. But some of them are very intrusive - you can't stop someone from parking anything but a commercial vehicle in their driveway. But the statute doesn't define commerical vehicle. The new law also includes mandatory board education each year and misdemeanor and felony penalties for certain actions by directors. Think about this - the D&O insurance doesn't cover these criminal charges, so any defense would be out of pocket for the director or from the association funds. That's great if the person is really guilty.
Many of the protections for owners were already there in the statute, but they have made it much less attractive for any volunteer to step up and serve on a board.
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