Florida HOA Lawyer Blog

Homeowners associations and condominium associations from Miami-Dade, Broward and throughout South Florida are coping with the challenges of the record numbers of foreclosures and distressed properties in today's housing market. In order to learn more about some of the most troublesome issues and questions that associations are facing when individual unit owners default, approximately 45 community association members and property managers attended a breakfast seminar hosted by the Community Associations Institute's Southeast Florida Chapter featuring a presentation entitled "To Foreclose or Not to Foreclose? That is the Question."

The May 25 seminar, which qualified for one-hour of CEU credit for community association property managers, focused on the legal strategies and tactics that associations should use in their efforts to collect from delinquent unit owners. It covered a considerable number of real-world case studies and examples as well as some of the most recent court rulings, and many of the attendees were able to have their specific questions answered by Guillermo Mancebo and Howard Perl, who are also attorneys from the law firm who focus on homeowners and condominium association matters.

Many of the attorneys at Siegfried, Rivera, Lerner, De La Torre & Sobel who focus on representing and counseling community associations throughout South Florida are active members of the local CAI chapters. This important organization provides an excellent forum for the members and officers of local HOA and condominium associations as well as their property managers to exchange ideas and learn about the latest developments affecting community associations. We look forward to leading more helpful presentations for the South Florida CAI chapters in the future, and additional information on the Southeast Florida Chapter is available at www.cai-seflorida.org.

Condominium association lawyers in Miami and throughout South Florida have seen their fair share of fraud and theft involving the officers of local community associations, and the recent case involving the Hillcrest Condominium came as no surprise to the lawyers of Siegfried, Rivera, Lerner, De La Torre & Sobel , P.A. who represent more than 500 condominium associations and homeowners associations throughout the state.

According to newspaper reports about the matter, president Bonnie Andrews Soloman of the building's association was arrested by local police after bank statements revealed more than $46,000 in unauthorized ATM withdrawals. Appallingly, all of the withdrawals were made at ATMs located inside of the Hard Rock Hotel & Casino and the Seminole Indian Gaming Casino over the course of a year. The condo association has hired auditors to review all of the finances, and the group fears that additional funds may also be missing.

It seems cruel to lay blame on the member of this condominium association who were bilked by Soloman, who they describe as very well liked and seemingly trustworthy and good natured, but the facts of this case point to serious lapses and inadequate safeguards that made the theft possible. First and foremost, associations should not provide their officers with ATM cards for the group's operating accounts. A credit card for use in case of an emergency where a check is not an option is acceptable, but the limit should be set at less than $1,000. In addition, the checking account for the association should require two signatures from authorized individuals for all checks, and the bank statements should be reviewed by the group's treasurer, who should provide an overview of the group's finances at the monthly meetings.

In today's economy with so many individuals dealing with personal financial setbacks, the potential for theft and abuse by trusted officers of community associations becomes more prevalent. Our highly experienced condominium and homeowners association attorneys will continue to work very closely with the community associations that we represent to help them to implement and maintain all of the necessary precautions and safeguards to help to prevent their becoming victimized by unscrupulous officers and managers.