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March 26, 2023

Miami Herald Real Estate Column by Michael Hyman: “Boca Condo Offers Case Study in Pitfalls of Prolonged Litigation for Associations, Owners”

The firm’s latest Miami Herald “Real Estate Counselor” column was authored by Michael L. Hyman and appears in today’s edition of the newspaper. The article, which is titled “Boca Condo Offers Case Study in Pitfalls of Prolonged Litigation for Associations, Owners,” focuses on the takeaways from the ongoing epic litigation involving the Boca View Condominium that has been covered by the Sun Sentinel. His article reads:

. . . This latest of several articles by the newspaper on Boca View’s litigation chronicles how unit owner Eleanor Lepselter is now asking the court to find the association in contempt and impose fines of $500 a day until it complies. It states that deadlines set by two court rulings for the association to produce the records have already passed, and the motion for contempt that was filed on Feb. 21 accuses the association of having no plan to release the records.

The case dates back to February 2019 when Lepselter submitted written requests to the association’s property manager seeking to inspect financial records for the four-story, 72-unit property that lies between the Intracoastal Waterway and Atlantic Ocean in Boca Raton. Her request stated she had appointed her attorney to conduct the inspection, and the attorney’s request cited a provision of Florida’s condominium laws requiring associations to make such records available to unit owners or their personal representatives.

The association responded by designating a time for Lepselter to inspect its financial records, but it refused to allow her attorney to accompany her. She challenged that decision by filing for arbitration with the state’s Department of Business and Professional Regulation, and the agency’s arbitrator found in her favor.

March 12, 2023

Firm’s Latest Miami Herald Real Estate Column: “Harassment Reports, Video Voyeurism by Association Presidents Highlight Need for Vigilance”

by Siegfried Rivera

Siegfried Rivera

The firm’s latest Miami Herald “Real Estate Counselor” column was authored by partner Marc A. Smiley and appears in today’s edition of the newspaper. The article, which is titled “Harassment Reports, Video Voyeurism by Association Presidents Highlight Need for Vigilance,” focuses on the takeaways for community associations and their owner members from two recent cases of horrific behaviors by association and co-op presidents. Marc’s column reads:

. . . The first report by South Florida’s Local 10 News focused on the president of a co-op building who was caught on camera verbally abusing a resident. Larry Reinfeld, the president of Building V in Ro-Len Lake Gardens in Hallandale Beach, has since been hit with a restraining order barring him from having any contact with a resident or coming within 5 feet of her apartment.

Two videos of Reinfeld’s behavior were shared with the station’s reporter. In one, he is seen calling a resident a profane name as she walks by him, asking her if he is blocking the walkway. Dispatch records show she called police after Reinfeld allegedly asked her as she walked to her car: “Are you paranoid enough?”

Residents told the reporter that such behavior is not unusual for Reinfeld. One says she brought it to the attention of the building’s vice president, who told her she should just keep her door shut and her blinds closed.

“I even put it in writing to the association, and they did nothing,” she states.

February 26, 2023

Miami Herald Real Estate Column by Christyne Santisteban: “Growing Condo Association Budgets Require Deft Touch by Directors, Property Managers”

by Siegfried Rivera

Siegfried Rivera

The firm’s latest Miami Herald “Real Estate Counselor” column was authored by Christyne D. Santisteban and appears in today’s edition of the newspaper. The article, which is titled “Growing Condo Association Budgets Require Deft Touch by Directors, Property Managers,” focuses on how condominium associations should respond to the increased costs and financial pressures they are now facing. Her article reads:

. . . [M]any condominium associations are being forced to increase their annual budgets and augment their monthly dues, and/or to implement special assessments to pay for specific unexpected shortfalls.

Needless to say, anytime costs and collections go up dramatically, questions will arise from concerned owners over how their associations’ funds are being spent. That is why transparency and communications will play a key role for associations that are increasing their budgets and assessments.

The best approach for associations and their directors to adopt will be that of full disclosure and complete transparency, which actually begins by determining where cost-cutting adjustments could possibly be made. This may entail meetings and negotiations with key vendors.

Association directors should also schedule and hold discussions over such budgetary and collections increases at all the necessary board meetings that it takes to address owners’ questions and concerns.

February 12, 2023

Herald Column by Gary Mars: “National Media Focuses on Impact of Florida’s New Condo Safety Law on Association Budgets”

by Siegfried Rivera

Siegfried Rivera

The firm’s latest Miami Herald “Real Estate Counselor” column is authored by shareholder Gary M. Mars and appears in today’s edition of the newspaper. The article, which is titled “National Media Focuses on Impact of Florida’s New Condo Safety Law on Association Budgets,” begins by discussing a recent segment on Fox Business Network’s Mornings with Maria show about the financial repercussions of Florida’s new condominium safety law on the state’s condo associations and their unit owners. It reads:

. . . The host and panelists point out that the mandates for reserves and engineering safety inspections/reports represent new expenses that will need to be borne by condo owners. Their message to recent buyers or those who may be considering a condo in the Sunshine State: Do your homework and come to terms with the fact that the current monthly association dues for many properties are very likely going to see substantial increases in the near future.

Panelist Mitch Roschelle also bemoans that after the Champlain Towers South tragedy, many condominium owners in the state are no longer willing to serve on their board of directors for fear of exposure to potential legal liabilities for their votes and decisions.

While it did paint a particularly gloomy outlook for the state’s condo associations and owners, this recent morning news show segment was not the first and certainly will not be the last of the national news media reports focusing on the coming increases in Florida condominium association budgets created by the state’s new safety reforms. There is no doubt that many properties are going to need to increase their monthly dues and/or enact special assessments to address immediate needs together with the coming inspections and reserves requirements.

January 29, 2023

Miami Herald Real Estate Column by Michael Hyman: “Florida HOA Communities Installing New License Plate Reader Cameras”

by Siegfried Rivera

Siegfried Rivera

The firm’s latest Miami Herald “Real Estate Counselor” column is authored by Michael L. Hyman and appears in today’s edition of the newspaper. The article, which is titled “Florida HOA Communities Installing New License Plate Reader Cameras,” focuses on deployments by communities of new automated license plate reader cameras that automatically read and record the license plate of all passing vehicles. Michael’s article reads:

. . . For HOAs and even some condominium communities, especially those facing security and safety issues and concerns, deploying such cameras at key entrance/exit points with the accompanying signs alerting drivers of the monitoring could represent an effective prevention and investigative tool.

News reports over the last several years have chronicled ALPR installations by Florida HOAs locally in Coral Springs as well as in the areas surrounding Tampa Bay, Jacksonville, Panama City and Naples. A recent article on the TapInto.net news site that also appeared on msn.com focused on the Kensington Glen community in Coral Springs and its deployment of ALPR cameras that are connected to the city police department’s Real Time Crime Center.

Gil Sternbach, the president of the HOA for the community with 258 homes and no security gates or guard house, describes the cameras as their “invisible gate.” The HOA installed four solar-powered ALPR cameras to read license plates and capture images of vehicles going in and out of the two roads leading into the community.

January 15, 2023

Miami Herald Column by Eduardo Valdes: “Appellate Ruling Shows Potential Pitfalls of Fining, Enforcement Missteps by Community Associations”

by Siegfried Rivera

Siegfried Rivera

The firm’s latest Miami Herald “Real Estate Counselor” column appears in today’s edition of the newspaper and is authored by partner Eduardo J. Valdes. The article, which is titled “Appellate Ruling Shows Potential Pitfalls of Fining, Enforcement Missteps by Community Associations,” focuses on a recent case that highlights the significance of the reasonable checks on enforcement actions against unit owners prescribed under Florida law and associations’ own governing documents. Eduardo’s article reads:

. . . A recent ruling by Florida’s Second District Court of Appeal demonstrates the potential legal liabilities and costs for associations that fail to meet the mandated prerequisites for the imposition of fines as well as suspensions from community amenities or board seats.

The decision stemmed from a dispute between unit-owner Dale L. Gillis and the Jackson Shores Townhomes Association in Sebring, Fla. In early December of 2017, the day after conducting a site inspection of association property and finding violations on Gillis’s property, the property manager for the community sent a violation letter informing him that he owed a fine of $100 for the alleged violations. The letter also included an invoice for the $100 fine with instructions indicating payment was due by the end of the month.

Gillis responded by objecting to the fine, but eventually the association suspended his access to community amenities and removed him from the board of directors based on his refusal to pay. He filed suit against the association, but it prevailed after a non-jury trial.

Apparently undeterred, Gillis then filed for and was granted an appeal before the Second DCA. In the subsequent unanimous opinion, the appellate panel focuses on pertinent provisions of Florida law and the association’s own governing Declaration of Covenants.

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 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 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 20, 2022

Firm’s Latest Miami Herald Column by Evonne Andris: “Response to Negative TV News Report by HOA Shows How It’s Done”

by Siegfried Rivera

Siegfried Rivera

The firm’s latest Miami Herald “Real Estate Counselor” column is authored by partner Evonne Andris and appears in today’s edition of the newspaper. The article, which is titled “Response to Negative TV News Report by HOA Shows How It’s Done,” focuses on a recent case from San Antonio, Texas, involving a homeowner’s car that was wrongfully towed by her HOA. As often happens in such instances of community association missteps, the homeowner responded by reporting the incident to her favorite local TV news station. Evonne’s article reads:

. . . “We looked into the claim,” begins the story from KENS 5, the city’s CBS affiliate. Jennifer Holmquist tells the station her son’s car was suddenly gone from their driveway, and they were about to report it stolen when they learned it had been towed by the Mountain Lodge Homeowner’s Association with no advance warning.

“Nothing on the door, no phone call, no email,” she complains to the reporter. She also bemoans that she was told by the towing company it would cost $300 to get the car back.

In similar situations of community association disputes across the country, what typically follows is an account of how the reporter attempted to get a response from the association, but none was forthcoming. In some cases, the journalists receive a written response from the association’s attorney that defends its actions and holds firm that they were in accordance with the community’s policies and regulations.

However, when the acts taken by an association are in error, simple no comment responses or those focusing on community policies and regulations may not be the best position to take. Such cases highlight the importance of a well thought out response. In this situation, it was verified that the removal of the vehicle on the community’s behalf was the result of a miscommunication with the HOA’s towing company, so the association and its board of directors had a decision to make.