CAI Suncoast Breakfast: Legal Panel Q&A

Posted on January 19, 2009 by Alan E. Tannenbaum

Community Associations Institute - Suncoast Chapter:  Come have breakfast while CAI provides you updated information valuable to every board member and every unit/homeowner as an aid in providing the best management of your association.

“Almost” Free Legal Advice

Speakers:   Alan Tannenbaum, Esq. – Levin Tannenbaum

                 Michael Brudny, Esq. - Brudny & Rabin, P.A.

                 Jonathan Damonte, Esq. – Jonathan James Damonte, Chartered  

                 Anne Hathorne, Esq. – Becker & Poliakoff, P.A.       

 

                                                                                         

Where:     Holiday Inn Select **NEW LOCATION**

                    3535 Ulmerton Road, Clearwater                        

When:      Thursday, February 12, 2009                

                   Breakfast 8:30 AM, Program 9:00 AM

 

 Cost:         $15.00 each CAI Member/$20.00 each non-member 

Please RSVP by Monday, February 9, 2009.   

Payment in advance is appreciated – No shows will be billed.

Program Sponsor

Alderman & Price Associates, CPA’s

Progressive Management

Habitat for Humanity Sponsors

Bay Area Disaster Kleenup

___________________________________________________________

Breakfast Registration                                               February 12, 2009

CAI Member? Yes _____ No _____ Late Registration_____

Company:_____________________________________________________________________

Name(s): _____________________                                                                                           

Phone:                                                              Number people to attend: _________________

 

Amount Enclosed:                                

Reservations MUST be in writing. This is your invoice.

 You may fax your reservation to (727) 345-0170 or email lhagan@suncoastcai.com.

Mail payment to:

CAI – Suncoast, 5701 – 1st Avenue South, Suite A, St. Petersburg, Florida 33707       

Please make check payable to CAI Suncoast – NO Credit Cards Accepted

Phone: 727-345-0165  Fax: 727-345-0170
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Finally...Automatic Class Action Standing for Florida Homeowner Associations

Posted on December 30, 2008 by Alan E. Tannenbaum

Until 2008, Florida condominium associations had a distinct advantage over Florida homeowner associations as far as pursuing construction defect and financial claims on a class action basis. Basically, Florida condominium associations by court rule since 1977 had automatic standing to represent their owners as a class on matters of common interest. Florida homeowner associations, on the other hand, had no standing to represent their members as a class. Members of homeowner associations were relegated to bringing a traditional class action with individual members acting as class representatives on behalf of the members. The procedure for attaining class action status in a homeowner association context was cumbersome and time consuming.

The newly adopted Florida Rule of Civil Procedure 1.221 reads:

HOMEOWNERS AND CONDOMINIUM ASSOCIATIONS

A homeowners' or condominium association, after control of such association is obtained by homeowners or unit owners other than the developer, may institute, maintain, settle, or appeal actions or hearings in its name on behalf of all association members concerning matters of common interest to the members, including, but not limited to: (1) the common property, area, or elements; (2) the roof or structural components of a building, or other improvements (in the case of homeowners. associations, being specifically limited to those improvements for which the association is responsible); (3) mechanical, electrical, or plumbing elements serving a property or an improvement or building (in the case of homeowners. associations, being specifically limited to those elements for which the association is responsible); (4) representations of the developer pertaining to any existing or proposed commonly used facility; (5) protests of ad valorem taxes on commonly used facilities; and, in the case of homeowners' associations, (6) defense of actions in eminent domain or prosecution of inverse condemnation actions. If an association has the authority to maintain a class action under this rule, the association may be joined in an action as representative of that class with reference to litigation and disputes involving the matters for which the association could bring a class action under this rule. Nothing herein limits any statutory or common law right of any individual homeowner or unit owner, or class of such owners, to bring any action that may otherwise be available. An action under this rule shall not be subject to the requirements of rule 1.220.

Unfortunately, what the Florida Supreme Court did in providing automatic class action standing for homeowner associations was not coupled with the Florida Legislature, as it had done long ago for condominium associations (F.S. 718.203), inserting developer and contractor warranties of fitness and merchantability into F.S. Chapter 720 (homeowner associations). As a result, even though the procedure to get into court as a class has been made significantly easier for member of homeowner associations, identifying sustainable causes of action for securing compensation remains a challenge.
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How Was Your Money Attended to Pre-Transition?

Posted on December 30, 2008 by Alan E. Tannenbaum

Florida community associations are big businesses, with annual budgets for larger projects running into the tens of millions of dollars. At its inception to the point of transition to owner control (which usually is at least a couple of years), each association is operated by a board of directors appointed by the developer. During this "pre-transition" period, these developer-appointed directors are running the business of the association (collecting revenue, expending money, contracting for services, performing maintenance, establishing or waiving reserves, etc.). From the point each new owner closes on their unit or parcel, each is a shareholder and contributing member in the association.

Developer-appointed directors of Florida community associations have a fiduciary duty to the members of the association. In essence, they are charged with operating the association during the pre-transition period in accordance with statutory and documentary requirements and good business practices. It is a prudent practice for the initial owner board of directors post-transition to review association operation pre-transition to assure that association finances were properly administered. Possible issues to be explored are:

  1. Were all assessments collected and in the appropriate amounts?
  2.  If there was a developer guarantee, was it funded in the correct amount?
  3. Were reserves funded?
  4. Were association funds expended only for association purposes?; and
  5. Were contracts entered into fair and reasonable?

We strongly recommend that every Florida community association upon going through transition retain a forensic accountant knowledgeable in community association matters to review the developer's audit of pre-transition finances, as well as financial records of the association turned over as part of the transition process, and to provide an opinion on each of these issues.
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