Richard White: Is selling our condominium building to a developer a good idea?

Q. We live in a 32-unit condominium. Eight of the units are vacant and in bank foreclosure. Another eight units are rented, some to prevent foreclosure due to the inability to sell. Most of our residents are either unemployed or senior citizens living on fixed incomes. We have not had a sale for over six years. Since that time our property values have devaluated to the point that many owners cannot sell because their mortgage is worth more than the sales value. We have discussed the possibility of selling the building to a developer. Are we better off to face the foreclosures and just wait out for a better future?

— R.S.

Pinellas Park

A. Why do you think a developer would pay more for your building with this market? If you cannot sell, why would you think that a developer would be able to sell? We must face the facts that we are in a poor real estate economy. We must lower our standard of living, cut expenses and balance our budgets. We only see just past our front door, but in truth many associations are in the same situation. Your objective is to get the delinquent units to start paying their fees as soon as possible. Until then, the other members must pay more to support the necessary expenses for the association. This may require professional help, including legal guidance and professional management along with CPA financial guidance to begin this process. Your board must approve a collection's policy without delay. I have advised a fast collections policy that will involve liens filed after the unit is 60 days delinquent. I have even suggested that the association start foreclosure action even if the bank is foreclosing. My reason is that if the association has title to the property, they have powers to generate income or to force the banks to foreclose faster. Not taking fast action will result in delayed collections or no collections of delinquent accounts.

Q. The board assigned a guest parking space to a unit owner because two owners were assigned the same space. Does the board have the authority to transfer common area parking to a limited area space to one owner? Would this require an amendment to the declaration?

— B.R.


A. With limited information provided in this question, you cannot rely on my answer as a legal opinion. That would require an attorney who had all the facts. However, FS 718.110 (9) addresses omissions or errors in the declarations. In so many words, a scrivener's error can be corrected. Your question indicates that parking is assigned by the deed or other recorded documents. As such, it would more than likely require that the correction be recorded and that would require the board to take such action.

Q. Our condominium has a dog restriction. Recently, a new owner acquired a dog. They presented letter from a doctor alleging that the owner suffers depression. This doctor practices out of state and never comes to Florida. The dog is not a service dog and has never been trained. Can a unit owner keep a dog if documents are not provided to the board showing the dog is not certified as a service dog?

— A.K.

Sunny Isles

A. I was once told by an attorney that in a case where an owner had a letter from a doctor saying that the owner should have a pet, the board should accept the letter and allow the pet. However, the board should require annual reviews and require that proof of a pet was necessary each year. In addition, the board should require that the pet's veterinary shot records be filed with the association annually. The approval would only be for the period until the medical records indicated the pet was not necessary, but reviewed annually with a new letter. Since this is an exception of the rules, the board should announce at a board meeting that a pet or pets will be allowed for a limited time because of the doctor's letter. I would also suggest that the board seek an opinion letter from the association's attorney to explain why the board can make an exception to the rules. Your attorney may offer a different solution to this problem.

Q. I live in a small HOA. The documents have certain provisions that govern the use and such topics as architectural control. Recently, several owners have applied for county permits for additions that violate the conditions as stated in the documents. The county says that they are not responsible for enforcing our documents. We are not asking them to enforce the documents, just not issue permits that violate the documents. If the state allows us to write the documents with certain provisions, how can the county override them?

— D.F.

Tierra Verde

A. Never expect any government agency to help enforce your association's rules. About the only thing you can do is send a letter to the county and ask that they only approve permits that have the association's approval. However, do not rely on the county or another government agency. The board needs to establish an architectural control policy and communicate it to the members. I would suggest that you have the association attorney review the policy. You need to establish an architectural committee to review requests. I would further suggest that you have proper architectural forms that owners can use to standardize submissions. As to the owners that have started the additions, I would immediately send a letter outlining the violations and refer to the documents and engage an attorney to begin legal action if the owner does not correct the violation. To correct the violations may take legal action including court action. Once you have taken one or two owners to court, the other members will get the word. Keep in mind that the board is responsible to enforce the documents and rules.


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