Community Association Law

January 10, 2023

Resolutions Aren’t Just for the New Year: Association Board Resolutions Require Careful Consideration, Execution

Homeowners and condominium association boards of directors use official resolutions enacted and approved by the directors during board meetings as a key management and administrative tool. The elements that are involved in creating effective resolutions are universal, and they should be known and utilized by all board members for every resolution they put to a vote at an official board meeting.

Resolutions are formal statements created and enacted by an association’s board of directors on its official policies and decisions. They should cover the purpose for the resolution, the action(s) that will follow upon its ratification, and the basis for the board’s authority to make the decision.

Common association resolutions are those covering administrative matters and changes. Based on varying provisions of an association’s governing declaration and documents, these could focus on elections, meetings, amenities, special events, or other aspects of association operations that may require attention.

boardmeet-300x200 Other typical resolutions are those affecting association rules, policies and restrictions. These are meant to clarify the duties and rights of the owner members, such as the maintenance of the exterior appearance of homes, pet restrictions, vehicles/parking, and any other issues that may arise as communities evolve.

January 1, 2023

Miami Herald Real Estate Column by Gary Mars: “Industry Association Offers Lawmakers, Advocates Legislative Priorities for 2023”

by Siegfried Rivera

Siegfried Rivera

The firm’s latest Miami Herald “Real Estate Counselor” column was authored by partner Gary M. Mars and appears in today’s edition of the newspaper. The article, which is titled “Industry Association Offers Lawmakers, Advocates Legislative Priorities for 2023,” focuses on the 2023 legislative priorities from the Community Associations Institute, which serves as the leading voice for the associations industry. His article reads:

. . . To determine CAI’s priority issues for 2023, its Government & Public Affairs team surveyed nearly 1,000 members including the federal legislative action committee (LAC), Government & Public Affairs Committee, and state LAC representatives. Fifty percent of respondents said they anticipate condominium safety issues in 2023, including those covering reserve studies and funding; as well as building inspections, maintenance and structural integrity.

The organization recommends statutorily mandating reserve studies and funding for all community associations, and it also supports additional requirements by developers during the development process and prior to the transition of association control to homeowners. It addresses structural integrity through statutorily mandated building inspections at 10 years, 20 years, and every five years thereafter, as recommended by the American Society of Civil Engineers’ published protocol for building inspections.

Bauman also wrote that CAI encourages policymakers to engage industry stakeholders, including community associations, in an open forum over legislative initiatives and regulations involving short- and long-term rentals. The group’s position is that association boards of directors, with homeowner input, are the appropriate governing body to craft policies regarding whether short- and long-term rentals make sense for their community.

December 26, 2022

Common Community Association Restrictive Covenants and Why They Exist

by Roberto C. Blanch

Roberto C. Blanch

For all those who reside in communities governed by homeowner associations or are buying into one for the first time, you should be aware of documents referred to as the covenants, conditions and restrictions of such community, or CCRs in industry parlance for short. These CCRs, together with an association’s articles of incorporation, by-laws, and rules and regulations, comprise the governing provisions with which all owners in a community must abide, and they are given the effect of a legally binding agreement to which all the owners governed by the association are bound.

For some sprawling HOA communities, minimum square-footage requirements are common provisions found in such covenants. These restrictions on the size of homes within a community are aimed at maintaining uniformity as to the types of homes located within it. Homes that are too small or too big by comparison to all the others might be considered to have a detrimental effect on the property values for the enclave.

Architectural restrictions covering property improvements are also almost always in place. Again, the goal with these is to help ensure architectural aesthetics and cohesion. Homeowners and the architects they hire must pay careful attention to the architectural planning criteria to which all modifications or improvements to homes within a community must abide so as to keep in compliance with the association’s standards and to uphold its community appeal.

December 18, 2022

Miami Herald Real Estate Law Column: “Appellate Ruling in Hollywood Case Spotlights Notice Requirements for Condo Association Lawsuits”

by Siegfried Rivera

Siegfried Rivera

The firm’s latest Miami Herald “Real Estate Counselor” column appears in today’s edition of the newspaper and was authored by Michael Toback. The article, which is titled “Appellate Ruling in Hollywood Case Spotlights Notice Requirements for Condo Association Lawsuits,” focuses on the takeaways for Florida condominium associations from a recent appellate decision that brought an added measure of clarity to the pre-suit requirements for associations bringing legal actions against their unit-owner members. Michael’s article reads:

. . . The new opinion from Florida’s Fourth District Court of Appeal came in a case that stemmed from a dispute at the Gateland Village Condominium in Hollywood, in Florida.

The association for the community filed a three-count complaint against unit-owner Mary Elizabeth Holly seeking injunctive relief requiring her to make requisite repairs to her unit’s leaking air-conditioning system, which was purportedly causing damage to the building’s roof as well as water intrusion into another unit, and to allow the association to access and inspect her residence. It also sought damages for breaching the association’s governing declaration by failing to provide it access to the unit and to maintain/repair her air conditioning system.

In response, Holly asserted that the trial court lacked personal jurisdiction due to the absence of service of process, alleging she was not personally served with the summons and complaint. She also alleged that Gateland failed to satisfy prerequisites prior to filing suit required by both Florida law and the condominium association’s own governing documents.

December 7, 2022

Wild Hogs Attack Florida HOA Homeowner, Again Make Local Headlines

by Laura Manning-Hudson

Laura Manning-Hudson

A couple of years ago in December 2020 I wrote a blog post about wild hogs invading several communities in Manatee County and making local headlines at the time in the newscasts of several Tampa Bay-area TV stations. The same issue now appears to have come to a head at a community on Florida’s east coast just north of Daytona Beach, where a station recently covered a vicious attack by wild hogs against an 89-year-old resident and his small dog.

According to the November 22 report by News FOX 35 (Orlando), two wild hogs attacked David Reisman and his dog as he set out to take his pet for a walk. He tells the station he was able to fight back with his flashlight before his wife ran outside and scared the animals away.

“I started hitting these wild beasts in the face several times,” Reisman explains in the report.

wild-pigs-300x200 A fellow neighbor and homeowner in The Crossings at Grand Haven in Palm Coast, Barton Kaplan tells the station that the hogs have been an ongoing issue, and the problem has now become out of control.

“We can’t roam freely to visit our neighbors. We’re hostages in our own homes,” he laments to the reporter.

December 4, 2022

Miami Herald Real Estate Column by Marc Smiley: “Reserve Funding Requirements Are Growing Priority for Many South Florida Condominiums”

by Siegfried Rivera

Siegfried Rivera

The firm’s latest Miami Herald “Real Estate Counselor” column in today’s edition of the newspaper is authored by partner Marc A. Smiley and titled “Reserve Funding Requirements Are Growing Priority for Many South Florida Condominiums.” The article focuses on the new reserve study and funding requirements in Florida, and it begins with information on reserves from a new report issued recently by the Community Associations Institute’s Foundation for Community Association Research. Marc’s article reads:

. . . The report indicates that about $26.6 billion in assessments are contributed to association reserve funds for the repair, replacement, and enhancement of common property, e.g., replacing roofs, resurfacing streets, repairing swimming pools and elevators, meeting new environmental standards, and implementing new energy-saving features.

The new Florida condominium legislation requiring buildings three stories and taller to fund reserves and pass engineering inspections will account for many significant increases in association expenses for the state’s aging condo buildings. Such communities will likely be forced to increase their association dues from their owners in order to pay for ongoing operating expenses as well as long-term repairs and replacements.

For those condominium communities that find their reserves woefully underfunded and in need of significant increases, the boards of directors and property managers must communicate the severity of the situation and answer owners’ questions during their board meetings. Such a proactive approach will be necessary in order to effectively illustrate the true costs of maintaining the community and complying with the new funding and inspection requirements. All associations members will need to be made keenly aware of everything it takes to maintain their community’s standards while also setting aside enough funding for foreseeable long-term maintenance, repair and replacement costs.

November 17, 2022

Characteristics of Great Community Association Presidents

by Roberto C. Blanch

Roberto C. Blanch

A well-functioning community association board requires dedicated directors who are all doing their part to help make their enclave the best it could possibly be. Each of a board’s members and officers, which generally include the president, vice president, treasurer and secretary, play vital roles and make essential contributions to the administrative and financial wellbeing of their association.

With that in mind, the office which is often perceived to be most important is that of the association president. While the individual serving in such capacity may not cast a vote having a greater weight than other directors or officers, the president may set the tone for a well operated community or for one that leaves room for improvement.

Firstly, the president is generally required to sign many legal documents and official association records such as new amendments and contracts. As such, they should be very involved in the work that goes into the development of all the important documents and records, so they know exactly what they are signing – and so as to possess individual knowledge as to the purpose and consequence of each in order to be able to respond to any potential member inquiries about them.

Additionally, while the oversight of association budgetary and financial matters primarily goes to the treasurer, the president is usually very much involved in all major financial matters and often plays a lead role in vetting and approving any emergency expenses that may arise. That is one of the reasons why successful community association presidents should be versatile, possess a broad knowledge of association concerns, and be able to dedicate the time necessary to focus on such tasks.

November 6, 2022

Miami Herald Column by Shari Wald Garrett: “Increases in Community Association Budgets Require Careful Deliberation, Communication”

by Siegfried Rivera

Siegfried Rivera

The firm’s latest Miami Herald “Real Estate Counselor” column is authored by partner Shari Wald Garrett and appears in today’s Neighbors section of the newspaper. The article, which is titled “Increases in Community Association Budgets Require Careful Deliberation, Communication,” focuses on the budgetary strains that Florida community associations are now beginning to experience. It notes that directors and property managers are finding it particularly difficult to reconcile required increases with many community home and condominium owners, but there is no avoiding the difficult work that lies ahead. Her column advises:

. . . One of the best budgetary approaches for associations to consider is the use of a finance/budget committee, which is able to give all the important financial questions that come into play the attention and consideration they deserve.

Ideally, finance/budget committees should be composed of three or more dedicated owners who have professional financial/accounting or budgetary oversight experience. This committee should meet year-round to discuss all matters pertaining to changes to the association budgetary plans and finances. The committee’s focus should be on the implementation of the annual budget for the upcoming fiscal year, as well as all the other financial and budgetary requirements based on the association’s bylaws.

Once the committee completes and submits its proposed annual budget to the board of directors for final approval, its members should attend the coming board meeting(s) to discuss the budget and address any questions or concerns.

October 25, 2022

Residents Cry “Fowl” Against HOA’s Restrictions on Backyard Chickens

by Laura Manning-Hudson

Laura Manning-Hudson

A recent article in the Pensacola News Journal focused on an uproar over an HOA’s restrictions against backyard chickens in a case that is very similar to one I wrote about in this blog in September 2021.

The newspaper reports that Holley By the Sea homeowners in Santa Rosa County fear their HOA may be moving toward a complete ban of their feathery friends. Approximately 100 of the 3,500 residents in the sprawling community own chickens, according to resident Mark Chapman.

He says the community’s residents take pride in their chickens and small backyard coops, and some fear the HOA is seeking to limit or possibly ban chickens from the neighborhood.

chckns-300x188 Chapman tells the newspaper that chicken ownership had not been a problem until fairly recently when the new board of directors decided to make it one. He says the board has begun its efforts by limiting the size of backyard chicken coops. One resident was ordered to reduce the size of her coop and lower its roof to no higher than six feet, even though Chapman has been allowed to keep his at seven feet. He says the new board president has stated he wishes to ban chickens in the community, and a Nov. 8 meeting has been scheduled on the issue.

October 24, 2022

Firm Secures Jury Verdicts Against Insurance Carriers

by Siegfried Rivera

Siegfried Rivera

A significant part of our firm’s work focuses on representing property owners in claims against their insurance carriers. We regularly counsel and represent property owners, including condominium associations, in claims involving weather/wind and nonweather water damage, fire/smoke damage, and damage to common elements such as pools, parking garages, elevators, roofs, etc.

Only rarely do such cases go to trial, but in recent months our firm’s insurance attorneys secured jury verdicts in favor of claimants involving very typical nonweather water losses. Shareholders Susan C. Odess, Stuart Sobel and Nicholas Siegfried, together with associate Zachary T. Smith, recently pursued cases against State Farm and Universal over their refusal to adequately cover damages stemming from broken water pipes and leaks.

The three Miami-Dade Circuit Court jury verdicts we secured in these suits are excellent examples of the types of cases that our firm’s insurance attorneys successfully handle on behalf of our clients. We will now pursue the recovery of our attorneys’ fees and costs against these carriers. Of equal import, we will be filing separate actions on behalf of the policyholders for all of the prevailing cases to assert a claim for bad faith. While these claims involved homeowners, we often secure similar results for condominium associations and HOAs for comparable water-loss claims.