As attorneys who regularly advise and represent homeowners’ associations here in Florida, we frequently receive questions about the balance between what homeowners can do with and without the approval of the homeowners’ association; for example, whether they can install surveillance cameras outside of their homes and/or in common areas. While security is of course a concern for a number of homeowners, homeowners’ associations must also look out for the privacy concerns of all owners, which leads to the balancing that must be done by the association and their attorney(s).
The General Rules
As a general rule, only the homeowners’ association can install anything in common areas. In addition, for owners to be able install anything such as security cameras outside of their own homes, they should always look at their bylaws and declarations first to see what these documents indicate. They are usually drafted by homeowners’ association attorneys and are very specific as to what owners must first obtain approval for when it comes to exterior changes.
People whose homes are part of a homeowners’ association (HOA) have to follow plenty of rules and regulations. Those rules may limit what a homeowner can and cannot do to their own property, including transferring the home into a trust and making changes to ownership.
If you are considering transferring your home into a trust but are worried about the possible issues with the HOA, contact our Tampa homeowners’ association attorneys at HD Law Partners to discuss your particular situation.
What Authority Does a Homeowners’ Association (HOA) Have?
A homeowners’ association is a legal organization made up of homeowners (community members) that enforce specific rules and collectively manage common areas.
An HOA’s authority varies from one association to another. Typically, an HOA has the authority to foreclose properties when the owner falls behind in dues or assessments.
When an association wins a foreclosure case against the property owner, it has the authority to evict the owner.
Many homeowners choose to put signs in their yards to express their political views or opinions on controversial issues. While the U.S. Constitution protects freedom of speech, homeowners who display or place controversial yard signs in their yard may get into disputes with their homeowners’ associations (HOAs).
Who’s Right in Yard Sign Disputes Between Homeowners and HOAs?
The practice of displaying political or other signs outside of your home is not prohibited in many neighborhoods and rural settings. However, when a homeowner lives in an area governed by an HOA, they may have to comply with the association’s rules regarding what homeowners can and cannot place in their yard.
Often, homeowners are restricted from:
Many of the restrictions trigger disputes between homeowners and their HOAs. When this happens, the parties should contact a homeowners’ association attorney to help them resolve their disputes in accordance with applicable state laws and ordinances. Typically, who is right in a yard sign dispute between homeowners and HOAs is determined on a case-by-case basis.
The board of directors of a Homeowners’ Association (HOA) is elected by the residents of the community. An HOA is a governing body that makes and enforces many rules that impact the entire community. One of the HOA’s duties is to protect the value of its residents’ homes.
But what about denying buyers or renters in the community? Can an HOA decide who can and cannot buy or rent homes in the community? In Florida, HOAs have a legal right to approve or deny potential buyers and tenants if they do not meet specific criteria outlined in the association’s governing documents.
The Association’s Decision Cannot Be Discriminatory
HOA/Condo laws in Florida allow HOAs considerable discretion in approving or denying potential buyers and renters. While associations can apply the screening process to deny buyers and renters, the decision cannot be discriminatory or violate the Fair Housing Act.
According to the Department of Housing and Urban Development, the Act prohibits discrimination in housing based on race, religion, color, sex, age, disability, familial status, and national origin.
During the coronavirus pandemic, a number of homeowners’ associations (HOAs) have faced questions from residents concerning the issue of having to pay homeowners’ association fees while a number of facilities – such as the pools – have had to close due to the dangers associated with the virus. While some associations may have waived certain HOA fees and/or may be working with residents who cannot cover their fees, there are a number of reasons why HOA fees still have to be paid even during the pandemic. Not only are these fees part of the conditions, covenants, and restrictions that are signed into when one purchases into an association, but they go into a separate budget used for maintenance and improvements
For example, they are paid, in part, to insurance companies, plumbers, power companies, and other vendors. In addition, even if the pools are not used, they still have to be treated, and common areas, such as elevators and lobbies, have to be cleaned. The pandemic has also led some associations to need additional supplies, such as sanitizer and masks, as well as contract for extra cleaning services in common areas. It is also important to remember that associations have to keep in mind how any delinquency rates could affect lenders and thus any potential homebuyers’ decisions to purchase in the area, as this affects the current homeowners in the association.
Florida is home to one of the largest populations of homeowners’ associations, and the main responsibility of these associations is to establish rules and regulations regarding how the community operates in order to ensure that property values stay at a certain level. As a result, there are inevitably a number of disputes that regularly occur between associations and members, who want to make alterations to their property, but cannot necessarily do so if the act violates those rules and regulations put in place to keep everyone’s property values high.
One of the issues that we as homeowners’ association attorneys regularly see involves homeowners wanting to put up solar panels. While the Florida Solar Rights Act forbids associations from prohibiting the installation of solar or other energy devices on buildings, associations may require approval of a system installations, and may put in place “reasonable” restrictions for those installations. Associations also cannot prevent the installation of solar collectors on roofs, nor can they impose restrictions that, in effect, impair the performance or increase the cost of the overall system. However, they can determine the specific location where solar collectors may be installed on the roof, as long as this does not impair the operation of the collectors.
Commercial eviction proceedings have been complicated by the coronavirus, as more and more cities and states pass emergency laws barring evictions of tenants, as well as foreclosures, in some instances, all while landlords are still expected to finance mortgages and satisfy their lenders. This includes Florida, where, in late March, the state Supreme Court issued an administrative order that will affect evictions and foreclosures.
As a result, it is important for landlords to review their leases with commercial landlord attorneys in order to ensure that they understand their rights and are prepared in terms of how any new laws and court decisions have altered those rights. Landlord attorneys can also assist landlords in coming up with creative solutions by agreement, such as partial base rent abatement and/or a repayment schedule, for example, and in researching other options, such as finding out if certain commercial tenants have business interruption insurance policies that can provide coverage during this time. At the same time, landlords will of course also have to consider obligations to their lenders and the effects any lease modifications they enter into will have on their loan covenants, and commercial landlord attorneys can review loan documents so that they are aware of the requirements and what is they need to do in order to ensure that they are in compliance.
Increasing issues associated with COVID-19, the coronavirus, have caused a number of issues in Florida to the point where Governor DeSantis had to declare a State of Emergency. At this point, there is not only an increased risk to the elderly and those with compromised immune systems, but to everyone, as we know so little about the transmission of the virus and how it operates.
As a result, we are receiving a number of questions from parties with concerns surrounding the coronavirus; one of them being homeowners’ associations and boards that are concerned about how the virus might affect their residential communities and what can be done to protect them, as well as any management issues that could arise as a result.
Consult an HOA Attorney & Maintain Balance by Taking Precautions but Not Overreacting
It is important that associations do not take drastic measures such as prohibiting anyone who has traveled to certain areas from returning to their homes or pursuing emergency statutory powers without first consulting a homeowners’ association attorney. Instead, it would be better to try and strike a balance between ensuring that associations are not negligent in ignoring the threats that the virus poses – especially when it comes to certain communities with open layouts, whereby residents are constantly coming into contact with each other in common areas – and overly restrictive protocols that unnecessarily restrict residents’ freedom, which could lead to legal challenges.
Florida lawmakers are currently considering a bill that would affect a number of commercial landlord and tenant issues by addressing the ability for tenants to keep emotional support animals. Specifically, while it would prohibit landlords from charging more for emotional support animals, it would also allow them to ask for proof and hold a pet owner liable for any damage that they cause to property. In addition, the legislation mandates that any pet owners who obtain fraudulent letters in order to keep their pets as emotional support animals would also be penalized.
The bill has come about in part as a result of commercial landlords complaining that people are exploiting their ability to simply keep a pet with them at all times by claiming that they are emotional support animals.
For legal purposes, it is important to distinguish between service dogs covered under the Americans with Disabilities Act (ADA) and emotional support dogs. The ADA dictates that individuals with disabilities may have their service animals in all areas that constitute “public accommodations,” such as stores, restaurants, schools, hotels, apartments, etc. These animals are specifically trained to assist someone with mental, physical, psychiatric, intellectual, or other disability, and the animal’s work must be directly related to that. For example, if someone is blind, they may have an animal that helps them cross the street.
As Florida attorneys who provide legal representation to homeowners’ associations (HOA), while also representing those affected by a foreclosure proceeding, the issue of homeowners’ associations foreclosing on homes over unpaid fees can be a challenging one that affects more people than you realize; especially since some 30 to 40 percent of the country lives in homeowners’ association communities. Many people and possibly even some homeowners’ association do not realize that in Florida and a number of other states, if you fail to pay assessments and dues, the association can obtain a lien on your property that leads to foreclosure. In fact, most people think that only their mortgage lender can seize their property.
However, the law also dictates that the association cannot file this lien unless it first provides the homeowner with 45 days to pay what they owe via a written demand. Still, in its assessments lien, it can not only include unpaid assessments in the lien, but also late charges, interest, and attorneys’ fees. Defaulting on assessments means that the association can foreclose by filing a lawsuit, even if you are current on your mortgage payments. This is why – if you are involved in a disagreement with your association – failing to pay fees is not the way to address the disagreement; rather, speaking with an attorney to discuss your options makes more sense; especially since it can be difficult to even figure out how much is actually owed to the HOA.
As commercial landlord and tenant attorneys who help ensure that landlords have enforceable commercial leases and experienced counsel to help with any disputes, one of the issues that we frequently assist landlords with here in Florida are common area maintenance, or “CAM” charges. These charges have a significant impact on the property’s net operating income and how much tenants pay. However, disputes can arise with tenants when it comes to CAM charges because unique situations may require costs to be calculated in a way that is different than what is spelled out in the current lease terms. As a result, it is important for commercial landlords to have a thorough understanding of what CAM charges are/include and how to properly account for them in the lease, with the assistance of an experienced attorney.
Below, we discuss what CAM charges are, what’s included in them, the types of commercial real estate leases that do and do not include them, and how they are calculated:
An important landlord and tenant case decided in December could have an effect on landlords around the country. The court specifically held that landlords can be held liable under the Fair Housing Act if they fail to reasonably address tenant race discrimination from other tenants. This is the first time the law has been expanded beyond direct action by landlords and allowed for landlords to be held liable for actions committed by third parties.
The case involved a tenant who allegedly experienced egregious discriminatory harassment from his next-door neighbor, who remained a tenant in the building even after he was arrested by police for aggravated harassment and a protective order was entered against him.
What The Fair Housing Act Says
The Fair Housing Act prohibits discrimination “by direct providers of housing,” such as landlords and real estate companies, as well as those in connection with the housing, such as banks and lending institutions, if/where discriminatory practices make housing unavailable to someone due to:
As attorneys who frequently represent homeowners’ associations here in Florida, we often see associations challenged on what are known as special assessments. These assessments are often necessary, still, there are tactics that associations can use in order to mitigate some of the effects and avoid litigation from owners in some circumstances, as we discuss below.
Special assessments are fees that are charged in addition to regular fees that are expected; typically to make up for budget shortfalls. While regular dues are charged monthly or quarterly, in order to keep the community running in terms of operating expenses such as electricity, exterior maintenance, insurance, landscaping, management, and others, associations also keep reserves to fund such expenditures such as street repaving and roof replacement. Reserve needs are determined by reserve studies, which determine the schedule for repairs over a 30-year timeline, as well as estimated costs. Florida requires condo associations to have reserves studies performed once every three years, however homeowners’ associations typically only have the studies done as often as what their governing documents require.
Florida citizens upset over their homeowners’ association charging them for painting that had to be done on residences have garnered news headlines of late. This is a common type of dispute that arises between residents and their homeowners’ association; a maintenance service that has been written into residents’ contracts increasing their association dues; and residents being frustrated about it. Is the homeowners’ association in the wrong here?
A homeowners’ association board has tremendous power and every right to follow through with a maintenance requirement like painting residences and charging owners for that requirement. It does not need to take a vote from resident owners first; however, a majority of the homeowners can demand a recall election and elect new board members if they are frustrated by decisions like these.
The Ability to Levy Special Assessments
These types of fees are typically collected each month by homeowners’ associations to assist with improving and maintaining all properties in the association. While already-established fees often cover regular maintenance costs, associations can levy special assessments—like this painting fee—if reserve funds are not enough to cover a large project that’s badly needed.
When it comes to being a landlord preparing your property to be rented by tenants, there are a number of helpful tasks that a landlord-tenant attorney can help you with. This includes precautions that will likely provide you with more protection than simply working with a property management company that does not have any experienced attorneys on staff.
Let’s take, for example, the task of finding your tenants: Let’s say you and/or the property management company having potential tenants that appear to be good on paper, but also appear to have bad credit. An attorney can help you build in some protection for yourself in case these tenants do not work out. Start by running through their references, and remember that a credit score does not tell the whole story, especially if someone experienced a couple of difficult years. You can ask their references about what is important as a landlord—did they pay rent on time, respect the premises, etc. —and then ask the tenant for additional specifics as to why their credit score might be low.
On July 6, the Washington Post featured an important article on homeowners’ association rules governing exterior changes, and why it is important that they be followed. Many owners ignore processes put in place by an association’s architectural control committee, even though the association’s declaration of covenants requires advance approval before additional or changes can be made—approval processes that are in place for every homeowners’ association, and for good reason.
While the scope of each of these architectural committees varies depending upon the association, most associations have them in order to preserve balance and uniformity within the association. Before each individual owner does any exterior work, they typically have to seek advance approval from this committee so that the committee can preserve a harmonious design for the community and protect the value of the property itself.
Unfortunately, homeowners’ and condo association lawsuits against Florida construction companies and developers for construction defects and other abuses (breach of implied warranties, negligence counts, violation of minimum building codes, etc.) are far too common.
In June, when the “Loft 2” condominium in downtown Miami was constructed with some serious flaws—such as defects in the air conditioning, heating, and ventilation, and malfunctioning fire sprinkler heads—the association filed a lawsuit against the general contractor, Whiting-Turner Contracting Co., as well as a number of associated subcontractors, such as the fire sprinkler contractor, Century Fire Protection Inc., alleging the companies failed to build the condo according to building plans and Florida Building Code standards. Other problems facing the association included defective longitudinal seam welds in the piping, improperly condensed water systems, lack of water treatment, premature unit pump failures, and rusting and scaling of pipes; all of which failed to meet minimum standards. Below, we discuss some of these claims in greater detail.
It seems like every day, there are disputes between homeowners associations and its members, even though these disputes are supposed to be avoided by specific, detailed covenants and restrictions agreements residents agree to when they buy into these associations.
There are always going to be circumstances under which homeowners associations and property managers must take emergency action in order to secure the safety of the entire community. However, as highlighted by a recent news article, residents aren’t always happy about these actions, and sometimes resort to suing the association.
This Particular Proposal
In this particular circumstance, the association found itself in need of taking traffic enforcement into its own hands and proposed sanctioning residents if they were caught speeding because the local police department could not possibly manage the issue on its own, given the breadth of their jurisdiction. Under this proposal, repeat offenders could even have the bar codes that get them into the community suspended, forcing them to wait for a security guard to let them in. A first offense would simply produce a warning, but any other subsequent offense could result in a resident’s barcode being suspended.
A lawsuit that concluded this spring highlights an important potential liability for homeowners associations around the country: playgrounds. One homeowners’ association in particular was hit with a $20 million jury award after a teenager was injured on the property’s playground.
Reportedly, the 42-pound crossbar of the swing set fell on the boy sitting on the swing set due to corrosion at the connection points, causing him serious injuries. Reportedly, not only had the homeowners association previously experienced three swing set failures on this playground, but they also did not arrange for any inspections or regular maintenance. Unfortunately, the homeowners association only had $2 million in liability insurance coverage, and $10 million out of the total $20 million award was entirely attributed to punitive damages.
Previous Incidents plus Failure to Maintain Equals Trouble
When it comes to figuring out whether a homeowners’ association is liable for damage, it largely depends upon a) what caused the damage and b) the declaration of condominium.
Take, for example, windows in Florida homeowners’ associations that started leaking after Hurricane Irma: As a general rule, any damage done by a hurricane falls on the responsibility of the association and its insurance policy.
The Law in Florida
The Florida Legislature requires lower or stable insurance premiums for associations in order to protect the safety, health, and welfare of Florida citizens. This includes adequate property insurance for full insurable value, replacement cost, or similar coverage, and this includes coverage sufficient to the probable maximum loss for communities for a 250-year windstorm event.
Determining Cause Is Key
However, figuring out if the leaks are actually due to the hurricane—or something else—can sometimes be challenging, and typically requires that the member consult with a professional to determine the cause of the damage. If, in fact, the damage was due to the hurricane, then the association is likely responsible for making repairs and the member would need to cover anything associated with the repair, such as the paint, window coverings, etc.
First and foremost, it is crucial to understand that, once a tenant files for bankruptcy, landlords and other parties are prohibited from taking any action against the tenant (i.e. debtor) unless it is first approved by the bankruptcy court. However, if a tenant is in default prior to filing for bankruptcy, and the landlord takes every step required under state law to terminate the lease before they file, the lease is then not subject to the tenant’s bankruptcy case. This is because it is the act of the tenant filing for bankruptcy that imposes an automatic stay against any actions by landlords and other parties (where actions are any activities involving collecting, demanding, or otherwise seeking to recover amounts due).
The general rule is that if the proposed change is a palpable change to the appearance, function, or use of the association property and/or its common element, it constitutes a material alteration. If a homeowners’ association wants to make a material alteration, it must first obtain membership approval. Some examples of material alterations that require membership approval include painting the color of a common area (such as a clubhouse), or placing carports over parking spaces.
What About Landscaping?
There are sometimes questions in the gray areas, such as changes to landscaping. Typically, landscaping decisions are not considered to involve material alterations, and are thus left up to the board’s discretion. This includes decisions involving whether or not certain plant species should be replaced with others, or whether shrubs or vegetarian can be moved, changed, etc.
In some circumstances, FEMA is also empowered to authorize payments to policyholders even before inspections are done if the policyholder needs to cover an emergency expenditure (such as temporary housing) after the disaster.
HOA Contracts & Emergency Powers
The process of repairing and mitigating damages under programs like these can be very confusing. For example, while policyholders have an obligation to mitigate damages as much as they can, they are also told not to enter into any contracts without first running them by the homeowners’ association (HOA) and/or board first.
In addition, homeowners association should ensure that there are separate contracts for each unit and, if possible, have the owner of that unit separately contract for any emergency services such as water extraction from their unit. However, if this is not possible due to emergency circumstances, homeowners associations should exercise their rights under Florida law to ensure that any contract signed indicates that the HOA is only acting as an agent given the emergency circumstances. These powers are available on a very limited basis for the sake of protecting public health and safety.
When it comes to monthly dues and homeowners’ associations, questions come up frequently; both from executives dealing with homeowners who aren’t paying yearly dues; and from homeowners wondering whether there are circumstances that allow them to withhold monthly dues.
When it comes to homeowners’ dues, property managers, presidents, and other executives have a fiduciary duty to ensure that all owners stay current with their dues. The failure to do so could lead to a Pandora’s Box of issues, whereby other owners follow suit and fail to pay dues as well.
Owners Failing To Pay Dues
Most legal documents signed with homeowners’ associations, as well as state laws, allow associations to file liens against owners for failing to pay their dues. Another option for the association is to foreclose on the owner. Regardless of the option pursued, working with an experienced homeowners’ association attorney in your area is necessary, noting that, in most circumstances, the association can also recoup its legal fees for having to file against the owner.
When it comes to running a homeowners association or condominium and all of the upkeep and operations associated with these types of properties, it is important to understand the ins and outs of insurance coverage and liability.
For example, “bare walls” insurance plans are often discussed in associations that want to limit the cost of water damage claims because each owner (versus the homeowners association) restores their own unit interior (including cabinets, walls, and floor coverings, as well as other interior finishes).
What Is “Bare Walls Coverage”?
“Bare walls” coverage is a type of insurance coverage purchased by condo or homeowners associations which typically applies to communally-used features in buildings (such as entryways). Associations typically use costs that they charge in HOA fees to cover this type of insurance policy. However, it is the most limited type of coverage that an association can purchase. Individual unit owners are required to purchase their own insurance to cover anything that is damaged within their units (for example, toilets, appliances, etc.).
With Hurricane Irma quickly approaching Florida, Wind and storm damage will likely occur. If you become the victim of storm and flood damage, you will need to file a claim with your insurance company to start the recovery process. You pay a lot of money for your insurance so it makes sense that if your home suffers damage, you will want to make a claim. Depending on the cause of the damages and the type of damages your home suffers, your insurance company will be able to provide coverage based on the kind of policy you have. It is important that you take photographs of your personal belongings and home to document the condition of your home and the presence/existence of those belongings.
Your Claims Process May Be Different Depending On The Type Of Claim
Was it flood, wind, rain, loss of use, emergency mitigation? Or maybe temporary repairs? Hopefully in all of these cases, especially if your home suffered catastrophic damages, by using these steps you will be ready to get your claim settled quickly and get the help you deserve from your insurance company. Here are the 5 basic steps in filing an insurance claim.
On June 14th, Florida House Bill 398—affecting condominium and homeowners associations—was signed into law. It is important to note how the legislation expands the scope of the current statutory provision and affects estoppel certificates.
Specifically, the bill revises requirements relating to the issuance of an estoppel certificate to certain individuals, requiring a condominium and/or homeowner’s association to designate very specific information for estoppel certificates and prohibiting the association from charging certain fees for making claims if said certificates are not delivered within a specific timeframe, amongst making various other changes.
Estoppel certificates are legal documents sent by homeowners associations that inform people of any amount of money—usually homeowners fees or unpaid fines—that that may be owed to the association.
However, these certificates can cost quite a bit to prepare due to the time and research that goes into them. Thus, one thing that the measure also does is allow the association issuing the certificate to charge up to $250 to prepare and deliver the certificate, with an additional $150 if there are also delinquent amounts owed to the association.
There are some key differences when it comes to the management of condominium versus homeowners associations in Florida. For example, this includes the ability to charge capital contribution fees, or the one-time charges associated with any transfer of title part of the association. For Florida homeowners’ associations, these fees typically range from $400 to $5,000, and are charged in order to ensure that there are finances in the association’s’ operating account (or capital reserves) once the developer leaves. These fees usually cover between one and three months of the association’s annual assessment amount.
In general, while condominium associations face certain restrictions when it comes to fees like these, homeowners’ associations, conversely, can charge these fees to new owners and/or to process lease applications.
The Condo and Homeowner’s Association Law in Florida
Under Florida law, the state legislature must first approve any fees charged to owners and tenants when it comes to condo associations. While developers can charge these fees to the original purchasers, they can no longer charge them once turnover has occurred. Thus, for example, fees associated with processing a lease or sales application, or transfer fees, cannot exceed $100 per applicant (other than a husband/wife or parent/child, both of which are considered to be one applicant).
The latest developments surrounding a ban that Florida’s Suntree Master Homeowners Association wants to place on allowing sexual offenders and sexual predators to live on the property has made news headlines. This housing restriction sheds light on what rights homeowners associations and other property managers have in terms of setting particular standards for residential developments, and what measures they may take in ensuring that very particular goals are met.
Specifically, the association is asking residents to amend their housing restrictive covenants and approve expanding the zone of protection of city and county ordinances in order to bar sexual offenders and predators from owning or renting there, effectively restricting offenders from residing within 3,000 feet from areas where children regularly congregate (which effectively covers the entire Suntree development). The association’s proposed policy could soon become one of the strictest when it comes to whether or not sexual offenders and predators can be banned from residential developments.
As the Wall Street Journal reported this month, video evidence has emerged as a powerful tool in housing court battles, especially in exposing tenants who have fraudulently claimed rent-controlled apartments as primary residences in order to pass those rights onto relatives in violation of the law.
As a result, courts have recently upheld the rights of landlords to mount hidden security cameras in lobbies, hallways, and other shared spaces, in spite of tenants arguing that video surveillance is an intrusive form of harassment.
Many property owners and businesses establish video surveillance in order to provide for security measures, prevent crime, and protect customers. Thus, it makes sense that landlords and property managers would have some of the same rights as business owners, even if video surveillance is established in order to monitor tenants.
Recently, the Florida Supreme Court ruled that lenders can refile foreclosure cases against homeowners who are still in default, even if the case was initiated more than five years ago (i.e. past the statute of limitations). This effectively now gives banks in the state the right to bring cases back to life, meaning that delinquent Florida homeowners may now be getting foreclosure notices after years of delay (more than five years). This latest ruling effectively provides the lenders with as much leeway as they need to start foreclosure proceedings all over again, but it’s important to note that there are caveats to the ruling in terms of foreclosure defense.
What the New Foreclosure Ruling Means
This ruling has left many homeowners concerned, as some experts have indicated that this could allow the banks to resolve open foreclosures and place more and more homes up for sale. In general, when homeowners stop making payments, many of them hope to get their mortgage modified. However, lenders have the option of, instead, filing a foreclosure action.
