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ConnieP1 (Florida)
Posts: 3
Posted:
I am a homeowner in a Florida Homeowners Association. What is the rule as to how maintenance fees and assessments are allocated in the case of some homeowners who are not paying their fair share. Is there a Florida Statute that covers these circumstances or does it have to be written in the Association Documents. We have several units that are behind on their monthly maintenance fees and also on special assessments. Many of the homeowners are complaining about making up the difference. If the other homeowners do not make up the difference, we cannot provide the services or keep up the maintenance of the complex. We are taking steps to lien these properties but in the meantime, we need to keep up all the services. It is a small complex and we are running on a very tight budget.
SusannaM (Florida)
Posts: 366
Posted:
It sounds like yours, like many other HOAs, don't have a delinquecy policy in your governing documents. I don't think FL Statutes 720 will offer you guidance on this topic. It's up to the board to implement a fair and balanced procedure.
PeterB1 (Florida)
Posts: 257
Posted:
Don't drag out the lien process. It is simple quick and not expensive. When we put a lien on an owner, he decided to pay what he owed.

If someone doesn't pay, it leaves you short cash in your budget. Your choice is then to cut expenses (you don't have the money in the budget) or levy a special assessment (if allowed by your bylaws).

It is important that your Board takes prompt action - regardless of what you do!
SusannaM (Florida)
Posts: 366
Posted:
Peter, I was told you first have to send a letter of "intent to lien." Then by law HO has 45 days to remedy situation or not, and only then attorney can file lien. Have you guys done it differently ??
PeterB1 (Florida)
Posts: 257
Posted:
We followed 720 EXACTLY.

"(5) The association may bring an action in its name to foreclose a lien for unpaid assessments secured by a lien in the same manner that a mortgage of real property is foreclosed and may also bring an action to
recover a money judgment for the unpaid assessments without waiving any claim of lien. Such action may not be brought until 45 days after the parcel owner has been provided notice of the association's
intent to foreclose and collect the unpaid amount. "

We gave our owners notice 30 days after due date. We warned them that in 45 days, we would file the lien. (I guess that is 'intent') So, 75 days after payment was due, we were ready to file. We actually filed at about 80 days.

It would not be 'fair' to other owners not to file. Our Bylaws say we are required to take all actions to gain payment - including foreclosure.
SusannaM (Florida)
Posts: 366
Posted:
You are right. I just read the entire section and 720 is very explicit on this topic.
ConnieP1 (Florida)
Posts: 3
Posted:
I believe our Association has filed the liens on the properties. But, what I was really asking is if there something in any HOA law or statues that tells us that we can assess the other homeowners for the shortfall until we get the liens cleared. We have already cut back on our complex maintenance as far as we could and our budget was very tight to start with. We don't have any flexibility or excess funds to handle our bills without the rest of the homeowners help.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Quote:
Posted By ConnieP1 on 10/30/2008 7:01 PM
I believe our Association has filed the liens on the properties. But, what I was really asking is if there something in any HOA law or statues that tells us that we can assess the other homeowners for the shortfall until we get the liens cleared. We have already cut back on our complex maintenance as far as we could and our budget was very tight to start with. We don't have any flexibility or excess funds to handle our bills without the rest of the homeowners help.

Well, of course, you can! You can raise the assessments at the beginning of the new year. Uncollectible liens can be written off as bad debts, which can be a line item in the budget.
SusannaM (Florida)
Posts: 366
Posted:
ConnieP, it sounds like you want to borrow from homeowners who are current with their assessment. I don't think it's feasible. As MaryA says, you can raise the assessment for 2009. Or, your HOA can apply for a loan from a financial institution. You are in a tough situation. Good luck.

DonnaS (Tennessee)
Posts: 5,671
Posted:

Connie,
Unfortunately, the owners that are paying will suffer the brunt of the money to keep the association running. That might require a raise in the dues and or assessments for this budget. Now if you recoop money from the leins(wishful thinking), next years budget might have a reduction and that goes back to the owners in lower fees.

There is no Statute that covers any of this except that all owners are assessed proportionately. Sorry to say that the good guys have to pay for the bad guys in order to keep the association running.
SusannaM (Florida)
Posts: 366
Posted:
DonnaS, I don't how can you venture to say that if they recoup lien monies, they'll be able to lower assessments. By looks of things this HOA is about to go bankrupted unless they somehow manage to be bailed out.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Susanna,
I wrote---"next years budget might have a reduction ---the key word here is MIGHT! Who knows, they might. You wrote that "by the looks of things, this HOA is about to go bankrupt. They might but they might not. If they get some real cooperation , hard work and belt tightening from the members and work things out, they might, but they might not.

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