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Articles Posted in Community Association Law

MichaelHymanThe firm’s Michael L. Hyman authored an article that is featured as the “Board of Contributors” expert guest commentary column in today’s edition of the Daily Business Review, South Florida’s exclusive business daily and official court newspaper.  The article, which is titled “Ruling: Community Associations Can Take Owners to Court Without Completing Arbitration,” discusses how Florida law calls for associations to file for nonbinding arbitration with the state agency that regulates condominiums prior to going to court.  Michael notes that the law, which is designed to relieve Florida’s courts from routine disputes between community associations and their unit owners, certainly does not mean such arbitration proceedings under the Department of Business and Professional Regulation’s Division of Condominiums must completely run their course prior to seeking emergency relief in local circuit court, as a recent ruling by the state’s Fourth District Court of Appeal reaffirmed.  His article reads:

. . . In Aquarius Condominium Association v. Boris Goldberg, the owners of a unit refused to grant the association’s contractor access to their residence for the purposes of initiating a balcony renovation project as part of a mandated 40-year recertification for the property. In response, the association filed a petition for arbitration with the Division of Condominiums, Timeshares and Mobile Homes as prescribed under Florida law. On the very same day, it also filed an “emergency motion to abate arbitration and temporarily relinquish jurisdiction” in Broward County circuit court against the unit owners to seek injunctive relief to secure immediate access to the residence.

dbr-logo-300x57Apparently in light of the emergency court proceedings over the injunction, the arbitrator with the state agency abated the matter for three months and noted that the association would need to file a status report or the arbitration petition would be dismissed.

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Recent news reports chronicle the tale of a former Marco Island city council member who was charged with three counts of forgery of a ballot envelope and three counts of criminal use of personal identification information, which is third-degree felony, in his condominium association’s annual board of directors election.

The reports from the Naples Daily News and several Southwest Florida television stations indicate Victor Rios, 78, was charged with forging ballots for the Belize Condominium Association election to remain a board member. Several ballots for the property’s March 2019 condo election were cast under the names of residents who testified that they had not voted in the election, and their signatures on the outer ballot envelopes were forgeries.

FDLElogo-150x150Complaints alleging election fraud were filed with the state’s Division of Condominiums under the Department of Business and Professional Regulation, and with the Marco Island Police Department. MIPD subsequently asked the Florida Department of Law Enforcement to investigate the matter because Rios was a sitting city council member at the time.

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There are several bills being debated by state lawmakers in the current legislative session that will impact Florida community associations. The most significant proposed legislation for associations is also one of the most important for many of the state’s businesses.

HB 7, which creates COVID-19 liability protections for Florida businesses and nonprofit organizations, including community associations, has cleared its first committee stop with an 11 to 6 vote. Its advocates contend the measure is a necessary component to Florida’s economic recovery. Flalegislature-300x169The Florida House Speaker has vowed to make the bill a priority. Its next stop is the House Health and Human Services Committee.

One of the other measures that community association industry watchers are tracking is HB 21. House Bill 21 revises the requirements for construction defect causes of action relating to certain violations, and revises provisions relating to the requirements for notices of claim, property inspections, and service of copies of notices.

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With the Covid-19 vaccines now rolling out across the country, there is hope that in the coming months gatherings of individuals who have been inoculated could safely take place. In the meantime, many community associations are continuing to conduct virtual meetings with attendees participating online or via telephone conference.

However, various provisions of the laws governing Florida condominium and homeowner associations raise questions regarding whether such virtual meetings are being conducted in a manner that is in full compliance. For instance, applicable condominium laws stipulate that annual meetings of the unit owners for board member elections must be held at the location provided in an association’s governing documents or, if none is specified, within 45 miles of the condominium property. This leads to the question of whether purely virtual annual meetings comply with the law.

The unprecedented circumstances arising during the pandemic has therefore caused many community association managers and board members to become creative – seeking to achieve continuity of association business vis-a-vis director and member meetings while also seeking to balance the protections recommended by healthcare providers and health authorities. One example is that some associations, in an effort to ensure that a condominium’s virtual annual meeting complies with the law, have made arrangements for the board of directors’ meeting to convene physically on association property while allowing members to attend via Zoom or other platforms.

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GaryMars-200x300An article authored by the firm’s Gary M. Mars was featured as the “Board of Contributors” expert guest commentary column in today’s edition of the Daily Business Review, South Florida’s exclusive business daily and official court newspaper.  The article, which is titled “Questions Revealed by Ruling Over W Hotel Amenities Require Legislative Fix,” focuses on a recent ruling by the state’s Third District Court of Appeal that calls into question the legal framework for many Florida condo-hotels.  The appellate panel ruled in favor of an Icon Brickell condominium owner’s claim that the property’s declaration broke state law by giving ownership and control of shared facilities to the owner of the W Miami Hotel.  Gary writes that the decision signals the need for Florida’s lawmakers to consider legislative amendments to the state’s condominium laws specifically addressing the authority over common elements at condo-hotel properties.  His article reads:

. . . The 50-story Icon Brickell Tower 3 includes the 148-room W Miami, formerly the Viceroy Hotel, in addition to 372 condominium residences. New Media Consulting LLC, the owner of one of the units in the building, filed suit in Miami-Dade Circuit Court in 2018 against the building’s condo association alleging the property’s declaration of condominium gave the owner of the W Miami Hotel too much authority in violation of the Florida Condominium Act.

dbr-logo-300x57The plaintiff prevailed in the trial court via a summary judgment, which concurred that parts of the property’s declaration broke state law by giving ownership and control of the shared facilities to the hotel owner. The ruling essentially ordered the association to amend its declaration in accordance with state law, notwithstanding the fact that changing condominiums’ governing documents typically requires prior approval by a daunting super majority (usually 2/3 or more) of associations’ entire voting membership.

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One of the most important tasks for community association board members is the oversight of maintenance, cleaning, security, valet parking, construction/painting, landscaping and other vendor services. These essential services require the use of written contracts that should include vital protections for associations, which would be well advised to turn to highly experienced community association attorneys to help ensure such contracts include all of the appropriate stipulations.

One of the primary considerations for most of these contracts is insurance. Vendors must maintain proper and adequate insurance to protect associations, their staff and their residents from any potential legal and financial liabilities that may arise from the execution of the services being performed under the contract. At a minimum, vendors’ insurance should include worker’s compensation coverage for employees who may by injured while on association property as well as general liability coverage.

The association should also insist that it be named as an additional insured and certificate holder, which would require that it be notified of any changes in the contractor’s insurance.

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Consumer’s preferences for online shopping have grown to new records this year during the pandemic, and shipping and delivery volumes are also accordingly at all-time highs. Given the constant flow of deliveries to condominium communities and HOAs, many associations have chosen to change the way deliveries are handled to prevent the possibility of their leading any potential Covid-19 contagion.

A recent article on this topic in the HOA Resources magazine of the Community Associations Institute reports that the Centers for Disease Control and Prevention recommends contactless deliveries, meaning limited or no contact with package recipients or potentially contaminated surfaces such as doors and pens.

CAI-logo“To increase resident safety, some condominiums’ coronavirus protocols include spraying packages with disinfectant before bringing them inside. Small packages are being slipped to recipients through a plexiglass window, while some condo buildings are prohibiting the delivery of large pieces of furniture, like mattresses, that would require the help of a third-party service or the building staff,” the article reads.

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Recent TV news reports of wild hogs invading several Florida communities in Manatee County reveal a serious problem that requires a considered and measured response.

The reports, which aired in recent newscasts in the Tampa Bay area by WFLA and WTSP, chronicle daily sightings and incidents of packs of wild pigs at the River Club community and surrounding neighborhoods (see photo from homeowner below).

Community resident Phil Pape says that in October and November the problem became seriously out of control. He and several of his neighbors tell the stations’ reporters that the wild pigs are wreaking tens of thousands of dollars in damage to their properties. The hogs tear up lawns and landscaping in search of food underneath the turf, replacing pristine lawns with a muddy mess.

“My neighbor next door, three-quarters of her property is all torn up,” states Pape, who notes that the hogs had been eating acorns in another neighbor’s property and he’s seen packs of as many as 30.

hogs1-300x200Homeowner Bob Lapp notes that he and other homeowners have been racking up damages around their homes, but they don’t want to fix everything until they know it won’t happen again. “The hard part is the fact that you could spend $1,000 today and wake up tomorrow morning and it would be all over again,” agrees Pape.

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Michael-Hyman-srhl-lawAn article authored by the firm’s Michael L. Hyman was featured as the “Board of Contributors” expert guest commentary column in today’s edition of the Daily Business Review, South Florida’s exclusive business daily and official court newspaper.  The article, which is titled “Injunction Petition Against Ornery Condo Resident Sends Important Message,” focuses on a recent petition for an injunction stemming from pre-pandemic confrontations between a current and a former community association board member.  Michael writes that the case illustrates how associations and their directors should proactively address bellicose residents.  His article reads:

. . . The initial incident that led to the petition for the injunction, which was granted by the circuit court but eventually overturned on appeal, took place at a Broward County condominium in December 2018. That was when Patrick Gagnon, a member of the community’s board of directors, was accosted by prior board member Joseph Cash. A second incident later in the same month involved Cash allegedly yelling at Gagnon, calling him a liar and cursing at him.

dbr-logo-300x57Two months later in February 2019, Gagnon alleged that Cash confronted him two times, 45 minutes apart, yelling and cursing about new trees installed by the association that blocked the view from his condominium.

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As new spikes in Covid-19 cases continue to unfold and communities seek to maintain their mitigation measures, the financial trials and tribulations created by the pandemic in condominium association and HOA communities throughout the country become ever more apparent. The continued proliferation of Covid-19 cases underscores that while many may be letting their guard down and growing fatigued as to the measures to protect against the spread of the virus, community association stakeholders should remain proactive and forward-thinking in order to best position their associations for the consequences that may arise due to the pandemic.

Some community associations have begun to experience the burdens resulting from lower collections rates caused by strains on the job market due to the pandemic.  While the exact impact on the many types of community associations may be unknown, it has been suggested that delinquency rates could exponentially increase. Bank-owned-2-300x257 In response to such expectations, we continue to suggest that community association boards and managers should continue considering the development of acceptable uniform payment plans that may be offered to those who have lost jobs and businesses.

Similarly, some have proposed that community associations should also think about postponing discretionary improvements to community amenities until late 2021 or even 2022.

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