FL. HOA ARTICLE-HISTORIC RULING

Started by DonnaS • 4 replies • 1199 views

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DonnaS (Tennessee)
Posts: 5,671

Posted:

Everyone,
The main page of HOATalk today has an interesting article from Martin County Florida--my County. The article is written with the results of a lawsuit by homeowners against their HOA/Golf community which had required each and every homeowner to belong to the Golf Course Social Club.

I have some personal knowledge on this case because a resident from that community called me one day when he got a letter from his association, informing him that there would be a manditory social membership required to live there. He got my name from an article that I had in the local newspaper, fighting some of the manditory requirements in these developements. So I gave him some hopefully good advice and hoped that he would keep me up to date.

This is a very upscale community with homes $800,000 and up. The golf course is gorgeous. They have a very pricy annual membership plus a hefty equity which pays for all of that beauty. But then we have a few senior residents who do not play golf and don't go out to dinner many times a week. So there was the reason for this case to go to court.

I do agreee with Gary Polikoff, the attorney who wrote some of the responses to the suit. But here is just another side of the ongoing battle on how to pay for our amenities and I wanted to point this out to all of us.

PaulM (Pennsylvania)
Posts: 1,347

Posted:

Donna, thanks for the heads up. Interesting reading. Congratulations! to the couple who stuck to their guns and was awarded a reimbursement for the club fees they were forced to pay.

This article doesn't give the reasons why the judge made the decision he did, or whether the assn.'s documents dictated that a fee was to be paid by all. Initially, the couple lived there without club membership fees, and I would expect for a change to mandatory club membership to be valid, an amendment with membership vote would have had to occur. They do not state this was the case here.

This article does, however, speak about other communities selling off large capital expense amenities (ex. golf courses). For associations with recreation facilities which are only frequented by few rather than all residents, there may come a day when a decision must be made whether to continue with the amenity with its high maintenance; or, sell it off, realize the income from the sale and no longer have to pay for the upkeep. Ultimately, all must be done for the good of the overall association membership, and this is where the majority will rule.

DonnaS (Tennessee)
Posts: 5,671

Posted:

Paul,
There is always a double edged sword to deal with. Altho, this particular developement has very hefty maintenances too, the courses will always be an expense far and above the maintenances. Because this is a Private Club, it is closed to outside membership and once many of these original owners age, they play less and then when they want to drop membership, they cannot.

I cannot tell you why the Judge made this decision except I believe that he was setting a precidence. The original documents did have the equity to belong but it was the "manditory" social membership that started this off. Did it go to an amendment and was passed? I do not know their documents so I don't know that answer either.

GeraldT4
Posts: 1,022

Posted:

DonnaS - Very interesting topic and not sure if the precedent is a dangerous one, time will tell. I sympathize entirely with the owners that did not want a mandatory membership fee. It seems that at some point the collective decision of a majority of the homeowner's association were in favor of merging with the golf club. I don't see how their decision can be binding on those not in favor because it's an add on, not really a capital expense upon property the association originally owned of which the objecting owners bought into upon purchase. I think what the association should do is open membership of the golf club to non-residents and perhaps make up some of the difference in lost income from those not participating.

DonnaS (Tennessee)
Posts: 5,671

Posted:

Gerald,
I also live in a golf course community but Thank Gosh, it is considered "semi private" meaning that outside people can play the course. Basically, we maintain the entrance and the road leading to the course but they course maintains a 10 foot perimeter along all of the fairways and other common shared areas. Yes, the threat of losing that beautiful grassy view to developement is always going to be a worry but the cost to maintain the course is huge. Times are changing.

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