Florida developer won't turnover HOA, What Now?

Started by WilliamC8 • 9 replies • 3097 views

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WilliamC8 (Florida)
Posts: 5

Posted:

We live in a small community. We have elected the board and have requested the developer turnover the community docs and such as per the Florida Statute.
We gave him the appropriate 90 days. It is now 90 days later from that date and nothing has transpired.
He won't return phone calls or answer emails or mail requests.
We had an attorney send a "nice" letter requesting that he turnover the appropriate documents.
Again nothing.
So what would be the next step?
Can an individual homeowner request a receiver be established to take over the community?

MaryA1 (Arizona)
Posts: 7,043

Posted:

William,

Your CCRs should state when transition occurs. Are you saying the timeframe has occurred and the developer has refused to transition? Or are you saying the members just feel it's time to transition and they think they have the authority to do so? Please, more info is needed!

WilliamC8 (Florida)
Posts: 5

Posted:

Yep, his time is up, enough homes and home sites have sold and we have elected out board of directors. We have followed the Florida Statute to the "T" and gave him the 90 days to respond per the statute to turn over the docs, blueprints, financials, etc. But now it is another 90 days later and he has quit responding to our letters, emails, phone calls etc.
He has also changed his company's name and hasn't paid his taxes in about 4 years on the lots he has remaining. So, I'm sure he's upside down on this community and others.
All we want is the ability to move forward.
So, we are trying to figure out how to proceed without getting extremely legal.

GlenL (Ohio)
Posts: 5,491

Posted:

If the other party refuses to acknowledge your claim or talk then the only recourse is getting legal.

Studies show that 5 out of 4 people have problems with fractions

WilliamC8 (Florida)
Posts: 5

Posted:

Yep, that's what I'm afraid we will have to do.
Florida Law states that a a circuit court judge can assign a receiver if a quorum can't be found to take over the community, but we have the people in place. I was wondering if the courts can assign a receiver to get the developer to respond.
As a former developer I can't believe the this developer doesn't want this off his plate, unless he's hiding something.

MicheleD (Kentucky)
Posts: 4,491

Posted:

He may or may not be hiding something, but if he's in dire straights financially, which it sounds like he might be, a lot of people in that industry were hit hard the last 18 to 24 months, then it may simply be he can't afford to transition.

In our development, the developer had to receive clearance from local utilities and zoning to transition. Which means that he had to bring a lot of the roads, gutters, sewers, etc up to code.

The developer for 8 of our 9 sections was able to do that with no problem, but the developer who bought out the one remaining section had some problems with it.

He stalled the transition for that section for almost 3 years.

We finally got full control of it last spring.

But he had a lot of roadwork and gutter work, and even some common area re-grading, that had to be done first.

Of course, he was not able to get the bond released until that happened, so he was in a mini-Catch-22.

RobertR1 (South Carolina)
Posts: 5,164

Posted:

William,
Get all the information you can possibly obtain legally. Go to BBB, County Court Records, Property Records, individual name search and find out what else is going on in the life of this company/developer or individual. The more you find out with proof, the less your legal expenses, the better you can determine what you are dealing with. I suspect, you all might be small potatoes to whoever you have to deal with.

DonnaS (Tennessee)
Posts: 5,671

Posted:

William,

Requesting a "reciever" is NOT what you want to do. You have an attorney already working with your Board so follow his guidance but do NOT go recievership.

But FYI, an individual homeowner can file for a recievership under Fl Statutes under 720:313

WilliamC8 (Florida)
Posts: 5

Posted:

I agree that we are probably small potatoes now.
I went to a tax sale on the lot next door that is appraised at $300,000 and it sold for $24,000. So, he's not paying his taxes.
When I call his office and leave messages, he has changed his company name.
Oh well, thanks for the help from everyone!

RobertR1 (South Carolina)
Posts: 5,164

Posted:

William CB,
You may be small potatoes to him, but you should not be to yourself and more specific, your association.

I mentioned this in a past post. If all you know about what is going on is what you read in an after the fact tax sale, you need to rethink your situation. Of course I am just guessing here but you need to know as much as you can. Please refer to my last post and think seriously about digging out some more info. You may want to ask (Glen, Donna, Mary, they all post here and among others, can find out some stuff I never dreamed about).
Donna especially for the state of Florida.

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