NOTE: Our Client Portal is Currently Undergoing Maintenance

Subscribe by Email

Articles Posted in Community Association Law

Gary-Mars-2021-2-200x300The firm’s latest Miami Herald “Real Estate Counselor” column authored by Gary M. Mars featured in today’s Neighbors section is titled “Possible $8M Fraud Against Florida Community Associations is a Wake-Up Call.”  The article, which is the second of two parts, is on a developing case from Southwest Florida that appears to be one of the largest incidents of fraud and embezzlement ever inflicted on community associations in the state.  It reads:

. . . An excellent Naples Daily News/The News-Press investigation has found that the associations are reporting more than $8 million has been taken from their accounts. Association directors have told the journalists that APMS took sole control of their Wells Fargo Bank accounts by telling them to sign new signature cards but then never submitting them to the bank.

The ordeal that these communities are now undergoing is horrific, and many of us who provide essential services for associations in Florida have been impacted by this case. We shake our heads in disgust at the brazen actions that appear to have taken place, while also hoping that we have successfully helped every association we work with to avoid the potential for any such malfeasance.

Herald-clip-for-blog-4-24-22-297x300The association board members and bankers that appear to have been hoodwinked in this case had in all likelihood grown to trust APMS and its owners wholeheartedly. That would likely explain how the state-licensed property management company allegedly succeeded in securing, submitting and executing all of the necessary documentation in order to remove the community associations and their directors from their own bank accounts. Apparently, the necessary red flags did not go up, resulting in the success of the scheme.

Continue reading

Gary-Mars-2021-2-200x300The firm’s latest Miami Herald “Real Estate Counselor” column authored by Gary M. Mars appears in today’s “Neighbors” section under the headline “Southwest Florida Community Associations Appear to Fall Victim to Massive Fraud.”  The article focuses on what appears to be one of the largest cases of fraud and embezzlement ever committed against Florida community associations that is now unfolding in Southwest Florida.  Gary’s article reads:

. . . Association directors, and also to some extent the property managers they retain, have control over communities’ purse strings, and for some enclaves we are talking about multiple millions of dollars per year. Such amounts under the control of so few have made condominiums and HOAs a favorite target of crooks and fraudsters for generations. Swindlers have embezzled millions of dollars from communities, before getting caught and facing the music in the vast majority of cases.

An excellent Naples Daily News/The News-Press investigation that remains ongoing appears to reveal sadly yet another example of the type of rampant fraud that can be inflicted on communities.

Herald-clip-for-blog-4-10-22-349x1024The case stems from an initial lawsuit filed by the Compass Point South at Windstar condominium association in Naples last April against American Property Management Services, owner Orlando Miserandino Ortiz, and his wife and co-owner Lina Munoz Posada. It alleges that the association and its board members lost access to their Wells Fargo Bank accounts because APMS did not add their names to the accounts, effectively locking them out.

The case was expanded in January with a new lawsuit listing 24 additional plaintiffs and new allegations, including that there is good cause to believe that the owners have left the U.S. and have been residing in Colombia for more than a year. Both complaints allege Miserandino placed funds in accounts that only he could access, preventing the associations from keeping tabs on or accessing their money. According to interviews by the journalists with the association directors, APMS took sole control of their accounts by telling them to sign signature cards but then never submitting them to the bank.

Continue reading

Gary-Mars-2021-2-200x300The firm’s latest Miami Herald “Real Estate Counselor” column authored by Gary M. Mars appears in today’s Neighbors section and is titled “What’s Next for Condo-Safety Reforms After Legislature Fails to Act?”.  The article focuses on the very poor marks that the state legislature has received in newspaper editorials from the Herald and across the state for its failure to pass any condominium-safety reforms after the horrific Champlain Towers tragedy.  It notes the editorials lament that the two chambers ultimately could not reach bicameral agreement on whether to require condominium associations to maintain financial reserves for major structural maintenance and repairs, and they are certainly correct to bemoan the legislative shortfall.  Gary’s article continues:

. . . However, from the point of view of someone who has kept a finger on the pulse of the state’s condominium laws for the past 30 years, the failure of the legislators to pass reforms during the session that began just over six months after the collapse was not surprising. Lawmakers in Florida as well as other states have been grappling with the issues of high-rise structural inspections and condominium association financial reserves for decades, not-to-mention fire sprinkler and suppression systems that can be very difficult and expensive to retrofit into older buildings.

It was perhaps overly auspicious of lawmakers to propose sweeping reforms without having first ironed out many of the important aspects of the proposals in the pre-session legislative meetings. They put forth many of the recommendations from task forces from engineering/construction trade groups and The Florida Bar, but they ultimately could not agree on the details of inspection dates and reserve funding levels.

Miami-Herald-3-27-22-print-page-342x1024Even with no changes to the state’s laws, significant condo-safety reforms are being implemented by lenders after major changes in underwriting requirements from government-sponsored Fannie Mae and Freddie Mac. In fact, many associations have already been struggling to comply with the new requirement from these quasi government agencies for lenders to have the condominium associations for mortgage applicants complete an eight-page form. For towers in their teen years that have never conducted any kind of major engineering inspections, association directors are completely unequipped to attest to their buildings’ current structural integrity in these questionnaires, and the potential legal liabilities would preclude them from making such representations.

Continue reading

For homeowners’ associations governing communities of single-family homes, one of the most difficult balancing acts to uphold is that of enforcement actions required against noncompliant homeowners over the physical state of their property. In the minds of many Americans, community associations have a negative perception and stigma for overzealous rules enforcement, but yet they cannot allow individual owners to flout important policies that help to maintain their communities’ property values.

After unsuccessful attempts to persuade an intractable owner to comply with the language provided in an association’s governing documents, the time may come to file a lawsuit against the violating member. While such action should not be taken lightly due to the potential costs and uncertainties of litigation, such lawsuits may be the only recourse left to associations facing obstinate owners who refuse to comply.

bbathandt-300x200Such appears to be the case with a recent lawsuit filed by the Boca Raton Bath & Tennis Club HOA against homeowner Lynn Min for alleged violations of several provisions found within the community’s governing documents. The suit, which was covered recently by www.BocaNewsNow.com, states:

“Owner is in violation of the provisions cited [in the governing documents] by virtue of their Property being in a state of disrepair, including a lack of maintenance to the home’s structure and roof, the exterior of the Property needs to be painted, the sod needs to be replaced, and the irrigation system is defective and needs to be repaired.”

Continue reading

Gary-Mars-2021-2-200x300An article featuring insights from firm shareholder Gary M. Mars appears on the front page of today’s Sun Sentinel.  The article, which is headlined “Failed Condo Safety Bill Leaves Residents, Buyers in Limbo,” focuses on what is in store for condominium safety reforms from lenders and insurers after the measures before the Florida Legislature failed to pass during the 2022 session that ended last week.  The article reads:

. . . Some condo lawyers argue that it was too ambitious to expect that a sweeping safety bill could be passed in a short three-month legislative session.

“I know it was very, very ambitious legislation,” said Gary Mars, a condo lawyer at Siegfried Rivera in Coral Gables.  “It would have taken a lot of effort to get it through all of the machinations developing legislation of this type.”

He noted that not every building is in dire structural straits, or even old enough to be required to follow inspection rules such as the ones in Broward and Miami-Dade counties, which mandate deep-dive studies after 40 years.

Sun-Sentinel-3-21-22-print-page-1-1-100x300“I represent a lot of associations in buildings in their teenaged years,” he said.

“They’re getting sophisticated reports” from their engineers about deferred maintenance issues such as waterproofing, balcony restorations and painting, Mars said.  But the reports don’t cover structural issues.

“They may have wonderful reports, but those reports don’t give the association the ability to check the box” about the building’s overall condition, he said. “There’s not a perfect solution to this problem.”. . .

Continue reading

RobertoBlanch_8016-200x300The firm’s latest “Real Estate Counselor” column, which is featured in the Neighbors section of today’s Miami Herald, was authored by shareholder Roberto C. Blanch and titled “Water-leak Suit at Jacksonville Condo Makes Local Headlines, Reveals Telling Lessons.” Roberto’s article focuses on a recent report that aired on both the ABC and NBC affiliates in Jacksonville that included footage of a severe water leak filmed by a condominium tenant. The owner of the unit terminated the tenant’s lease, and he eventually filed a lawsuit against the association after it allegedly declined coverage for extensive water damage including warped floors of costly imported wood, destroyed light fixtures and dangerous mold.  The column reads:

. . . The news report, which can be viewed at tinyurl.com/3un2ktam, illustrates the significant impacts that water leaks can have in condominiums. It is important to note that not all water loss events in condominiums are the result of improper maintenance by the association, as some may result from clogged sinks and toilets, or other owner negligence and causes.

Condominium associations and their property management must periodically inspect and repair their buildings’ common-element pipes and other components. Any leaks that may arise should be quickly and proactively investigated to determine their source and prevent them from causing any further property damage or possible injuries to residents. Miami-Herald-3-13-22-print-page-1-297x300Regardless of a leak’s cause or source,  an association’s management and directors have an obligation to address and potentially eliminate it.

Associations should work with qualified insurance professionals to maintain adequate coverage against the types of damages that are likely to arise from leaks. They should also have a plan of  action in place for the handling of water leaks, including pre-determined arrangements for their immediate remediation and a detailed process for reporting such incidents to the association’s insurance carrier.

Continue reading

The Florida Legislative Session began on January 11th and is expected to wrap up by the end of this week. We’ve been tracking the 21 bills filed throughout the session that would directly impact community associations throughout Florida.  Below is a summary of the proposed bills that are still making their way through the final leg of this year’s session.

As always, we will inform our readers as to which of the proposed bills become new law, and we will also provide a comprehensive summary of those bills and their impact on community associations. In addition, given the anticipated changes that might come into effect for the state regarding the funding of reserves and new inspection requirements for condominium buildings, we encourage readers to also stay on the lookout for possible changes at local levels.  For example, we recently covered a new Miami-Dade ordinance that requires community associations located in the county to upload certain documents and information to a new publicly accessible database (click here to learn more).

Residential Associations — SB 394 and related HB 547 revise the certification and educational requirements for boards of directors of residential community associations. Newly elected or appointed board members would be required to certify by affidavit that they have read their association’s declaration, articles of incorporation, bylaws and written policies AND will attend a division-approved board certification course. If passed, this law would be effective July 1, 2022.

Florida-legislature-photo-thumb-300x198-300x198Condominium & Homeowners Associations Flags — CS/SB 438 and related HB 465 permit owners in condominium associations and mandatory homeowners associations to display a flag representing the United States Space Force on designated holidays. If passed, this law would come into effect on July 1, 2022.

Display of Flags in Residential Associations — SB 1716 and related HB 1371 authorize owners of condominium associations to display The United States flag, the official flag of the State of Florida, a flag that represents specific special forces, a POW-MIA flag and certain first responder flags, even if the association’s covenants, restrictions, rules or requirements prohibit owners from displaying flags. This act will take effect July 1, 2022, if passed.

Continue reading

The demands for increased access to condominium financial records and structural reports in Florida after the horrific Champlain Towers tragedy are leading to possible changes at the state and local levels, and they just led to a new local ordinance in Miami-Dade County.

On March 1st, the Miami-Dade Board of County Commissioners unanimously approved an ordinance establishing a searchable database for financial statements and structural reports, among other information and documentation, for residential community associations located in Miami-Dade County. The new ordinance requires community associations in Miami-Dade County, including all condominium, cooperative, and homeowners’ associations, to upload certain documents and information to the county’s database, along with a written registration with the Miami-Dade County Department of Regulatory and Economic Resources, by Feb. 1st of each year, beginning on February 1, 2023.

MCboard-300x169The ordinance provides that the documents uploaded to the database will be publicly accessible on the county’s website, and will also be searchable. Some of the documents to be attached to the annual registration submitted to the county include the following: the name of the community association; the name and contact information for the association’s property manager or other designated agent; a list of all officers and directors of the association, including their contact information; a link to the association’s website, if any; a legible copy of the association’s governing documents; a list containing the association’s planned capital projects from the date of registration through February 1st of the following year; a copy of the association’s current budget and financial statements, including any applicable current or approved special assessments; and all reports issued within the last 10 years on the structural status of the property governed by the association, including recertification reports, if applicable.

Continue reading

The new condominium safety financing requirements from Fannie Mae and Freddie Mac have drawn a great deal of attention, but the Florida Legislature appears to be poised to go one step further in its response to the horrific Champlain Towers tragedy.

The Florida House and Senate are both moving forward with bills that would add new inspection requirements on condominium buildings. A bill that is now ready to go before the full Senate, SB 1702 would require condominiums that are three stories or taller and located within three miles of the coast to undergo initial inspections 20 years after completion and every seven years thereafter. Buildings in other areas would be required to be inspected after 30 years and every 10 years thereafter.

Flalegislature-300x169The Florida House has taken up its own version of the bill (HB 7069). Its proposal would require initial inspections to occur 25 years after completion, and buildings further inland would have their first inspection at 30 years. Additional inspections would be required every 10 years.

The House and Senate bills also include differences over reserve studies, which are used to determine the level of funds a condominium community needs to maintain in reserve for future renovations and repairs. The differences between the two bills are likely to soon be consolidated into a final bill for bicameral consideration.

Continue reading

Gary-Mars-2021-2-200x300The firm’s latest “Real Estate Counselor” column in the Miami Herald authored by Gary M. Mars is featured in today’s Neighbors section and titled “Electric Vehicle Chargers At or Near Top of Many Condo Community Wish Lists.”  The article focuses on a state law that was ratified last year to facilitate the addition of shared electric vehicle charging stations as an amenity for the use of owners and guests in Florida condominium communities.  It reads:

. . . For condominium dwellers, the lack of access to electrical charging in congested parking garages with assigned spaces initially proved to be a significant challenge for those with EVs. Wisely, the Florida Legislature passed several new laws in recent years to address the installation of charging stations in condominiums, and the law that went into effect last July to facilitate the deployment of shared community EV charging stations may be the most important yet.

Herald-GMars-2-27-22-print-clip-for-blog-101x300The law clarified that the installation of shared EV charging stations for a community’s owners and guests can be ratified via a simple vote of a condominium association’s board of directors, and it would not require a vote and approval of all the unit owners as is needed for projects involving what are called “material alterations.” The prior new charging-station laws addressed installations to be paid for and used by individual unit owners at their assigned parking spaces.

The problem with that model is that very often there is inadequate electrical infrastructure to install such charging stations without it becoming exorbitantly expensive. EV charging requires heavy-duty electrical cables and equipment that are capable of handling the high-capacity loads necessary to fully charge vehicles in just a few hours, as opposed to 12 hours or more using standard 110-volt outlets. Plus, the electrical consumption needs to be metered and billed to the owner, also requiring additional equipment and expenses.

Continue reading

Contact Information