An Opinion By Jan Bergemann
President, Cyber Citizens For Justice, Inc.
Published March 18, 2010
With the dead real estate market successfully killing all sales of new homes, many developers of new homeowners' associations are either already bankrupt -- or are on the brink of bankruptcy.
As they struggle to stay afloat, some of these developers try to force homeowners, who had already bought into these still developer-controlled homeowners’ associations, to pay for the deficits caused by the lack of new home sales and/or owners who fail to pay their dues.
We are getting more and more complaints from owners who are hit by special assessments and increased dues, causing them serious financial hardship. Unable to pay the special assessments and increased dues, other owners stop paying their fees -- and mortgages -- creating even more foreclosures.
The developer-controlled boards just call meetings, raise the dues and/or levy special assessments, no matter how loud the owners protest. Many owners give up and let their dream homes go, feeling helpless against the dictatorial power of the developers that threaten them with liens and foreclosure if they don't pay.
Don't give up so fast! Remember the schoolyard bullies wanting your lunch mon Check out your legal options before giving up on your life savings you invested in your dream home in the sunshine.
Lobbying efforts in the last few years created some protection against abusive developers that try to burden owners with costs the developers should be responsible for paying.
Florida Statutes 720.308 has quite a few provisions that hold developers responsible for funding any deficit and/or other cash funding requirements. Minimum on paper owners have many rights -- and it's worth an attempt to fight the developer that try to attempt to levy special assessments and/or increase the monthly dues!
All the owners who already bought into this community are in the same boat. That's why all owners should pull the same string. United owners have a lot of power!
If you are getting hit by special assessments and/or dues increases by the developer, just try the following steps:
1.) Organize your neighbors and form a group: UNITED YOU STAND!
2.) Request the financial documents, according FS 720.303(4) + (5) to see if the developer didn't violate the provisions of FS 720.308. Please use these GUIDELINES for your record request. No matter what excuses you might hear, the provisions of FS 720.303(4) + (5) are binding as well for developers.
Don't be intimidated, because the law is on your side. I always hear that owners are afraid of the deep pockets of developers. "They can afford the expensive attorneys and draw the lawsuits out for many years." These times are long gone. Many developers are barely holding their head above water. Especially the developers trying to make the owners pay for the community bills already have big unpaid legal bills. These developers are nearly drowning -- the deep pockets are already filled with lots of water!
And you have another big legal advantage:
FS 720.303 (8) ASSOCIATION FUNDS; COMMINGLING.--
(c) Association funds may not be used by a developer to defend a civil or criminal action, administrative proceeding, or arbitration proceeding that has been filed against the developer or directors appointed to the association board by the developer, even when the subject of the action or proceeding concerns the operation of the developer-controlled association.
That means that the developer can't use association funds to defend lawsuits brought against him or his appointed board.
Don't let the developer bully you. Fight for your homes and for your rights! United owners are a power any developer has to be afraid of -- if he is violating the Florida statutes!
ISN'T YOUR HOME WORTH FIGHTING FOR?
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