vote to become Homeowners Association in FL

Started by JimbB • 5 replies • 1227 views

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JimbB (Hawaii)
Posts: 42

Posted:

We are a coop under 617 since 1962,our Board wants to become a Homeowners association? Does the vote has to be 100% to pass? I heard is the only way? And the way they are presenting it for vote is misleading, any advice?

LarryB13 (Arizona)
Posts: 4,099

Posted:

I'm not familiar at all with co-op's so I do not know how that would effect things. Likewise, not familiar with Hawaii law.

Based on the laws of my state, the answer would be that need 100% agreement to form an HOA from existing homes. I know of one Arizona case where pro-HOA owners tried to force an HOA on all owners in a subdivision. The Court ruled that because the HOA was to be a non-profit corporation, state law forbids anyone from being forced to join one.

Could you explain a little more about the Co-op? My understanding is that in a co-op, owners do not own any particular real estate but instead own a share of the building. Are you ending being a co-op and converting over to being a condo? Are there laws, either state or federal that cover such a conversion?

I've been told that co-op memberships are difficult to buy and sell because the banks have no property they can foreclose on if the owner defaults on his loan, so banks rarely lend on a co-op.

JimbB (Hawaii)
Posts: 42

Posted:

I appreciate you email, my property is in Florida,the problem is according to the documents we are a not for profit running a co-op under Chapte 617. But the Board wants us to be a Hoa? Calling it " Amended and Restated MOA"? And in those documents they are removing the word co-op?
It does not sound to me they are just Amending and Restating the MOA but something else? I am hoping that is 100% need it to pass because something is not right and I requested information with no avail. Thank you

BB5 (Missouri)
Posts: 145

Posted:

Right, wrong before you establish a HOA check it out VERY CAREFULLY !!!!!!!!!!!!!!!!!!!!

BB5 (Missouri)
Posts: 145

Posted:

P.S. I will NEVER live in another HOA. and I am past V.P and Pres.

TimB4 (Tennessee)
Posts: 21,047

Posted:

Jim,

As you know, a non profit corporation needs to comply with Florida Not For Profit Corporation Act (617)

As a co-op, the association must also comply with FL Cooperative Act (719)

As a co-op, FL 720 is not applicable.

If your co-op is a condominium (vs. single family homes) then FL 718 would already apply.

Therefore, it sounds like your Board, and member of the association, want to have FL 720 be applicable to them and not 719.

I could not find anything within the statutes that specify or imply what percentage of homeowners must agree in order to disband under 719 and regroup under 720. Your probably going to need an attorney knowledgeable in HOA laws, corporate laws and contact law (as it will probably boil down to what is written within your governing documents) to give you a good answer.

Tim

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