Legal Question in Real Estate Law in Florida

Mine condo HOA is charging exorbitant special assessment fees due to the alleged delinquent maintenance fees and legal costs. The delinquency costs are not nearly that high, and most of them are reimbursed when units are sold. With the special assessment fees collected from the condo owners, the HOA is purchasing foreclosed units in the complex from the banks, rehabbing and keeping them, and renting them for own profit.

Is that legal? What could be done to make them stop doing that, sell the units and reimburse the condo owners?


Asked on 4/12/10, 2:01 pm

1 Answer from Attorneys

Royce Bishop Mr. M & Save My Home

You or a attorney would have to request from the HOA some proof that they are allowed to do what they are doing. There should exist a contract/agreement between property owners and HOA, or HOA articles of incorporation--something. Usually a HOA is permitted a 3 day, 5 day, 7 day notice is order to respond to the inquiry. Also the unit owner has to state the reason for the inquiry and the HOA may stall or delay because they think they can or because they are hiding something.

The HOA does needs money to survive. The more people that live there, then in theory, the less money they would need from each unit owner. The real question is are they taking more money from the current owners than they are allowed to?

If they are taking more money than they are allowed to pay their own salaries or their attorneys, then a complaint requesting an injunction (Judges order to stop) is the legal approach. The existing owners would have to band together and form a sort of "mini" class action lawsuit against the HOA. But first, the unit owner(s) have to follow procedures and request such information, and if the information says they are not supposed to be doing this, then a formal written demand would be made. Lastly, a lawsuit. If no formal request is made to the HOA first, before a lawsuit, there is a good chance a judge would dismiss the lawsuit, because it is not "ripe" and the unit owners have not exhausted all their remedies and have not tried to mitigate (lessen) the damage that the HOA is causing.

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Answered on 4/26/10, 4:03 pm


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