Q. In 2005 we bought a second house as an investment in Georgia, using it first as a second residence while our son lived there. However, in 2007 we changed it into a rental property. Later, the HOA passed an amendment to their bylaws that basically forbids renting out houses in this development consisting of some 134 single-family residences. Does the HOA have this kind of power to retroactively make such profound changes? If this had been made known to us we would have never bought the property in the first place. Furthermore, I also consider that one would have to disclose such a limiting rule when planning to resell, and I believe that could chase potential buyers away or diminish property values. — M.H.
A. Your point is well taken about possibly changing the value of your home. I advise you to question the board in writing if they feel that the rule change affects the future use of your property to rent. As to notice a prospective buyer, you will need to tell him/her about all the rules, the documents and any amendments. Many association members feel renters are bad and you only get people that have lower values. I have found the opposite to be true in that only a few of the tenants are disrespectful of property rights. The biggest problem is inexperienced landlords and absent owners. You get one or two bad tenants and you get a knee-jerk reaction. Here is a basic real estate presupposition. In order to get the highest value for the home in the shortest time, you need large numbers of qualified buyers who want a property design and amenities you can offer. The question is, will the rule change attract buyers or repel them? Since I do not know the association, I do not have that answer.
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Q. At an annual meeting for a HOA, if there is not a quorum to hold the meeting, can the board just roll over into the next year or does another meeting have to be scheduled until a quorum is reached and an election can be held? I ask because as I read the statute, business cannot be conducted unless there is a quorum but, if there is not a quorum, the board should not be able to re-assign themselves to the board automatically. In my HOA which I just moved into, this practice has been going on for many years, since they do not push for an annual members meeting. — A.D., Sunrise
A. FS 720.306 only requires a 30 percent quorum. If the board or a concerned owner goes out and does a little door knocking campaign and asks that the owners sign the proxy or come to the meeting, you should not have the state of affairs you describe. Most documents will say something like an incumbent director will remain as a director until he/she is replaced. From reading your question, I perceive two pessimistic answers. The first is that your neighbors do not care and want others to do the work. The second answer is that the board wants to do it themselves and wants the power. The solution has a simple answer, get the members involved. While simple, it will require work.
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Q. Residents in our mobile home community recently formed a social club. The purpose of the social club is to have social events for the purpose of just having fun. There is a small fee to join but all residents and renters can attend each event by paying a small event fee. We requested use of our clubhouse and supplied dates for our planned events. There is no conflict with any events the HOA is providing or any other group scheduled at these dates. The board refused to allow us to schedule these dates, although they are available. The park manager and owner are now requiring us to lease the clubhouse. No other group is asked to do this such as the Red Hats, Golf League, etc. Our prospectus allows us as residents to use the clubhouse when requested and state that neither the board nor manager can deny us unreasonably. They claim they both have every right to do this. Can the owner/manager or the board deny us the use of the clubhouse or charge us a fee for the use of the clubhouse? This has been going on for several months and we have not been able to have one single event. This is starting to feel like discrimination. — F.E., Palmetto
A. In recent years, many situations have come about that force associations to be more cautious about private parties. Even if you are members of your mobile home community, the party that you describe could be considered a private party. It is not an association event but members are arranging the party that is not sponsored by the association. Not only are there liability situations, there is possible damage, use of the common areas (called wear and depreciation), and the use of the utilities. It will be an additional expense to the association although small. Say someone started a fire when they tried to heat food in the kitchen. Who will pay for the repairs? Say someone tripped and fell over a tripping hazard and broke a leg. Who would be responsible for the medical bills? The worst is if alcohol was served and someone was injured on the way home. Many people would be named as defendant in a trial including the association. These reasons and many other situations cause the board to require a lease to be created and used for such parties. It is not an uncommon thing for attorneys to recommend to boards to have a lease and rental policies approved for members to use the common area facilities.
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Richard White is a licensed community association manager in Florida. Questions should be mailed to him at 6039 Cypress Gardens Blvd. # 201, Winter Haven, Fl. 33884-4415; e-mail CAMquestion@cfl.rr.com. To be considered, questions and comments should include the author’s name and city. Questions should be about association operations, not legal matters.
source: naplesnews.com
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