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Subject: Florida HOA Statutes on terms LOT/Units
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JohnP49
(Florida)

Posts:3


07/09/2021 11:02 PM  
I am a resident of a Builder Run - Management Company regulated HOA.

I have a few questions which I will keep short and simple.

1. The Florida Statute states that if a builder owns 11% or more of the lots/Homes within a community they maintain control of the HOA. If the builder owns no lots or homes but has intentions on building additional phases within our subdivision, can the builder still maintain control simply on hopes to build more phases. Or does the builder have to turn it over to the residents since he owns no lots or buildings, just land in the surrounding area. The homes that are owned within our entire Plat are owned by homeowners only.

2. If the Florida Statute stipulates that the builder must turn over the HOA within 90 days after 90% of the lots/homes are sold and then puts out covenants that states the number is 95% instead of the 90%, is the builder allowed to add to the law that's prescribed at only 90%?

3 In Florida Statute, it states that the homeowners have the right to assemble in common areas. Does the builders management company have the authority to deny a request to use the clubhouse for a homeowner meeting among themselves unless a member of the management company is there?

4. Please let me know if there is anything you know that allows the builder "Indefinite" control of the HOA until the other building projects are started? At the moment no ground is yet to be cleared for future phases.

Lastly if you know off hand and any documents that pertain to the above questions, can you notate it here?


Thank you for your time

John
AugustinD


Posts:1585


07/10/2021 3:01 AM  
You appear to be attempting to refer to FS 720.307. What you claim is not quite what it says. Here's a copy of FS 720: http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0720/0720.html

Here's 720.307 (1):
===

(1) Members other than the developer are entitled to elect at least a majority of the members of the board of directors of the homeowners’ association when the earlier of the following events occurs:
(a) Three months after 90 percent of the parcels in all phases of the community that will ultimately be operated by the homeowners’ association have been conveyed to members;
(b) Such other percentage of the parcels has been conveyed to members, or such other date or event has occurred, as is set forth in the governing documents in order to comply with the requirements of any governmentally chartered entity with regard to the mortgage financing of parcels;
(c) Upon the developer abandoning or deserting its responsibility to maintain and complete the amenities or infrastructure as disclosed in the governing documents. There is a rebuttable presumption that the developer has abandoned and deserted the property if the developer has unpaid assessments or guaranteed amounts under s. 720.308 for a period of more than 2 years;
(d) Upon the developer filing a petition seeking protection under chapter 7 of the federal Bankruptcy Code;
(e) Upon the developer losing title to the property through a foreclosure action or the transfer of a deed in lieu of foreclosure, unless the successor owner has accepted an assignment of developer rights and responsibilities first arising after the date of such assignment; or
(f) Upon a receiver for the developer being appointed by a circuit court and not being discharged within 30 days after such appointment, unless the court determines within 30 days after such appointment that transfer of control would be detrimental to the association or its members.

===

Study the above. Re-do your questions.
JohnP49
(Florida)

Posts:3


07/10/2021 7:30 AM  
In response to:

"Study the above. Re-do your questions."

Thank you for posting these Statute References, I have read them several times previously but hit a couple vague areas I wanted to clarify.

Our the HOAs management company could not answer my question as they weren't sure how to answer unless they consulted an attorney.

---------

Ok I read over the specifics you outlined and applied it to my first question regarding the builders right to maintain complete control over the HOA.

So I will reword my question.

Does the builder maintain full control over all voting rights in the HOA even after the 90 percent has been sold off?

Specifically, if he has plans in the future to add additional Phases, do the future phase plans allow him to retain full control even though no ground has been broken (IE beginning work on any phases)?

Either way I know the builder will still have a position on the board but does the Florida Statute force him to allow other residents to have the majority of voting rights.

As of now in the covenants he gets 5 votes to every 1 lot owned. He currently owns 1 lot and there are 219 total lots sold already to individual owners.

Does the planning of additional phases allow him to deny any residents a position on the board?

And the 90 day rule to release majority of voting rights to the owners , have a legal ramification if he fails to automatically comply?

If the 90 day does apply, do the owners need to petition the county or the builder for future board positions?

Please be patient with me as I am still learning the ropes here.

My intent is not to remove the builder but to have residents have an active vote on their Covenants.

By the way, the builders management company is very reasonable with their explanation but when it comes to specific rules, it seems that either they misinterpret them or I do.

Im fine no matter how this turns out, I am curious and motivated.

Thank you for allowing me to voice my question here.

John

AugustinD


Posts:1585


07/10/2021 10:09 AM  
My answers are intended to help you prepare for a meeting with an attorney and promote HOA members becoming educated about their HOAs. I am not an attorney.
Posted By JohnP49 on 07/10/2021 7:30 AM

Does the builder maintain full control over all voting rights in the HOA even after the 90 percent has been sold off?

Specifically, if he has plans in the future to add additional Phases, do the future phase plans allow him to retain full control even though no ground has been broken (IE beginning work on any phases)?


I think your question is about the effect of what you call "additional phases."

My best guess is that the answer depends on what the city-approved plats show for phases.

Otherwise, see FS 720.307 for the timing of turnover. Hopefully you realize that the latter statute section is quite detailed. The number of seats the declarant controls on the board depends on many circumstances, as given in the latter statute section.

And the 90 day rule to release majority of voting rights to the owners , have a legal ramification if he fails to automatically comply?
If circumstances indicate that the 90 day rule from 720.307 (4) applies, and the developer fails to comply, my best guess is that you can pursue dispute resolution via the procedures described in FS 720.311. My concern with the latter answer is that I am just not sure a dispute about the 90 days et cetera falls into one of the dispute categories that FS 720.311 gives.

You might have to hire an attorney and go to court.
JohnP49
(Florida)

Posts:3


07/10/2021 10:56 AM  
Thank you AugustinD, I appreciate your response which was exactly the Statute I was referencing.

In this statement here:

"Three months after 90 percent of the parcels in all phases of the community - that will ultimately be operated by - the homeowners’ association have been conveyed to members"

I am assuming that the wording ("that will ultimately be operated") will be used to say "Until all phases planned are complete"

As of now the last Phase recorded with the county was in 2015 and had expired in 2019 and no other phase is slated for construction.

I think I need to visit the county to see if those permits have been submitted for that phase that isn't listed on the county website.

If you think there is anything else to add please feel free to elaborate.

If not just refer back to your last answer and I will close the thread.

Thank you

John
AugustinD


Posts:1585


07/10/2021 11:21 AM  
Posted By JohnP49 on 07/10/2021 10:56 AM
Thank you AugustinD, I appreciate your response which was exactly the Statute I was referencing.

In this statement here [slightly edited by JohnP49]:

"Three months after 90 percent of the parcels in all phases of the community - that will ultimately be operated by - the homeowners’ association have been conveyed to members"

I am assuming that the wording ("that will ultimately be operated") will be used to say "Until all phases planned are complete"
I know you are homed in on something above, but I cannot quite tell what it is.

I am a little homed in on "conveyed." To me, "conveyed" means the parcel has been deeded to an entity (a person or possibly corporation) who is not the developer.

I am not sure why you are interested in permits. I would be focused on the several circumstances where the HOA members are entitled to additional seats on the board.

You are understandably trying to deciper phrasing that might have to be deciphered via a lawsuit.

Appeals courts interpret statutes and covenants all the time. It's their business.

I am a little over my head here. My thoughts are not all random but they are somewhat random and most likely far more informed than the average HOA member or HOA Board director.

Some hoatalk members have more experience with developers and wording. Maybe they will chime in.

You do not have to "close the thread" or similar. How turnover happens comes up here a lot. It is an important query afaic.

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Forums > Homeowner Association > HOA Discussions > Florida HOA Statutes on terms LOT/Units



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