What is the actual costs? (Ballpark)

Started by ClaudeV • 3 replies • 2438 views

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ClaudeV (Florida)
Posts: 86

Posted:

I have been trying to read the Florida statutes to determine what the process is to take an issue through mediation and arbitration, if necessary.
Our HOA currently has no reserves built in to the fee structure and operates on a "zero balance" formula. However, with the emergence of some dissidents that refuse to be responsive to the CC&R's and "friendly" approaches by BOD members and residents alike: It may be likely in the future that we could be faced with the possibility of resolving issues through these distasteful, but necessary, avenues.
Before I can reccommend any dollar amount increases in HOA fees to create a reserve fund, it would be helpful to know what these proceedings cost, on average.
How are "reserves" handled when a specific, potential use is stated as the reason of their establishment? If the "community outlook" improves, can the funds be re-designated for other uses or even rebated back to the HOA members?
The questions could be endless, but I hope I've conveyed the extent of my interest.
This information is just "doing my homework" for a suggestion. It may be realized that the costs are so high that the actions would never be considered. In any event, I'm just exploring the numbers.
Thank You

AudreyB (Florida)
Posts: 104

Posted:

Hello Claude,

I previously had a problem with my Association, and to mediate or arbitrate the cost to file is $200, if the other parties agree, which can be shared by Association and homeowner/homeowner's @ $100 each.

Then, add on your attorney expenses, and the mediator's fee as well. Whoever loses, pays the attorney's fees and the mediator's fees. Can get very expensive very quickly!!!

Claude, I received this reply directly from the Division of Florida Land Sales, Condominiums and Mobile Homes, and I hope what Ms. Sanders wrote me, helps you.

Quote: Please be aware, homeowner associations in Florida are governed by the requirements of Chapter 720, F.S., known as Homeowners' Associations. Additionally, no governmental agency regulates Chapter 720, F.S. Section 720.302(2), F.S., states in part, "The Legislature recognizes that it is not in the best interest of homeowners' associations or the individual association members thereof to create or impose a bureau or other agency of state government to regulate the affairs of homeowners' associations." However, certain disputes must be filed for mediation with the Division of Florida Land Sales, Condominiums and Mobile Homes, before going to court.

The mandatory mediation program was passed by the Florida Legislature in 2004, and requires homeowners and homeowner associations to attend mediation prior to filing a lawsuit in issues dealing with: covenant enforcement; amendments to association documents; meetings of the board (not including election meetings) and committees appointed by the board; and access to official association records.

For additional information concerning homeowner associations and the mediation program, you may wish to review Chapter 720, F.S., and the administrative code on-line at: http://www.state.fl.us/dbpr. You may also wish to consult with an attorney for guidance on this issue.

Again, thank you for writing. If you have any additional questions or concerns, please contact the department's Customer Contact Center by calling (850) 488-1122.

Sincerely,

Sarah M. Sanders
Regulatory Specialist III
Customer Contact Center
Department of Business and Professional Regulation: Unquote

Happy Holidays,
Audrey

ClaudeV (Florida)
Posts: 86

Posted:

Audrey,

Thank you very much for your response.

I suppose what I should have asked is, "Have any of the readers/posters on HOAtalk ever had to engage mediation and/or arbitration, and if so, what were YOUR total costs, TO the HOA, after the dust settled?

I've read the Florida statutes. They are vague at best, suggest one secures an attorney, etc. There are no mentions of filing costs, average attorney fees one could expect etc. We are fully aware that it can become "very expensive, very fast", but that doesn't mention a dollar and cents answer.

I realize that everything is "different" and MANY factors determine the actual cost. All attorneys charge a different rate, time involved is always different. Various courts may charge different filing fees dependent upon county etc. There can be no "definitive" number value placed upon this question, but a "ballpark" figure, or something along the lines of, "Our HOA spent "X" amount on mediation/arbitration and it took "X" amount of months to accomplish" is what I'm probably asking for.

Thank You Again,
Claude
St Augustine, FL

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