CROV is Taking Action
CROV Association is advocating for legislative changes to Florida Statute 720. Changes to incorporated the recent Avatar V Gundel ruling into the statute. A working group with Jamie Fowler, County Commissioner and Dana Trabulsy, State Representative, who are equally concerned with PUD/CDD such as ours and how we can change legislation:
1. Avatar v Gundel ruling should be incorporated into Section 720
a. For communities with Clubs, the club owner may only assess for club expenses.
b. The Club owner may not profit from membership dues.
c. The Club owner may not place a lien on a home-owners’ property for non-
payment of club dues.
2. Reserves to be established by the builder/developer for any community where the builder/developer takes longer than 5 years to reach the 90% threshold for turnover to residents.
a. Reserve study to be completed at builder expense.
b. Builder reserves contribution to equal parcels to be developed and not sold. Builders may adjust the reserve funding based on monthly sales of new parcels.
3. Each fiscal year prior to new assessments, the builder/developer POA/HOA must deliver a copy of the proposed budget and inform residents of the annual assessment before funds can be assessed and collected from members. The proposed budget must include all current and anticipated expenses for the new fiscal year.
4. Section 720.307 (5) should be amended. A Development of Regional Impact (DRI) should not be exempt from the provisions that allow a board member at 50% of the buildout. The builder/developer must state the buildout on the PUD documents and only be allowed to increase the buildout by 10% of the original announced units without an open hearing conducted by local governments. If the builder should sell off parcels to another builder, PUD documents must be adjusted to reflect the parcels removed from the original plan and the adjusted build out.
5. Builder/Developers may not amend documents including club plans without consent from residents. A quorum of 70% of residents must approve any changes to HOA-POA and Club Documents.
6. All assessments for builder/developer communities must be based on approved POA/HOA & club budgets and be audited each year. Assessments may only be based on expenses. Builders/POA/HOA’s are not permitted to profit from members assessments from POA/HOA & club budgets. Surpluses should be carried over to the next fiscal year. Deficits may be assessed during the current fiscal year if necessary to prevent negative debt obligation.
7. Under circumstances where builder/developers retain ownership of community amenities with the objective of selling amenities to residents at or after POA/HOA turnover, full disclosure of the intent to sell must be made to potential residents prior to or as a part of any agreement by the purchaser to build or buy-into a community. A signed disclosure document stating the conditions and potential cost to the buyer is required. It is the responsibility of the builder/developer to explain the conditions and confirm that the purchaser understands the conditions and obligations.
8. Builder/Developer agreements and by-laws may not limit the rights members have under state law. This includes compelling a venue or method of resolving disputes between the builder/developer and resident(s). Builder/developer and resident member agreements may not limit or prevent members from enjoining in arbitration or litigation or infringe on any rights a member would be granted under state law or the Constitution of the United States. Builder/Developer agreements must not prevent or deny a resident from filing in small claims courts when damages are within the limits specified by state law and small claims court requirements.
9. In situations where arbitration is the method chosen to resolve a dispute, the arbitration rules of the entity providing the arbitration service apply over state rules unless otherwise regulated by the state. (this is necessary to prevent misunderstandings where there are conflicts bw arbitration rules and state law).
10. Builder/Developers may not adopt terminology in their covenants/amendments that restricts members rights under federal, state, or local law. Builder/Developers covenants/amendments may not supersede federal, state, or local laws or ordinances.
11. Members of Builder/Developers communities are granted equal voting rights for any proposed amendments. Builder/Developer equals one vote. Each member equals one vote.
12. Full disclosure is mandated to any potential buyers. All fees, costs, or future costs must be disclosed verbally and by document prior to executing a sale of a property in a Builder/Developer POA/HOA. A signed notarized document with disclosures between buyer & seller is required.
13. Communities with a Developer/Builder private club must make club facilities available on an equal basis to all members of the community.
14. Rental fees for club facilities must not exceed costs and be equal to the cost of operating the facility for the event.
15. Builder/Developers employees may only serve as board members for “not for profit” organizations that serve a community under development by their employer.
16. Any sale of property from one builder/developer to another requires PUD plans be updated to reflect the change of responsibility for utilities, irrigation systems, roadway maintenance, landscaping and any other factors a community is obliged to maintain. Revised plans to be recorded with the city, county, and state agencies responsible for PUD approvals.
17. A Builder/Developer may not make agreements with city, county, or state agencies “in perpetuity” that bind communities to obligations and costs after the Builder/Developer turns over the community to a resident run POA/HOA. (States other than Florida have legislated this item)
18. Club Plans are subordinate to POA/HOA by laws. Club Dues, Fees, and assessments are paid directly to the POA/HOA who distribute funds to the club to cover expenses.
19. Club owners and club owner management may not sit on a POA/HOA board of directors. (PGA Verano as an example where Kolter employees occupy 3 of 4 seats on the POA board of directors and also preside over Club Talavera and the amenities). Note: 4th seat is occupied by the representative of Cresswind (55Plus within Verano, that has recently transitioned to HOA for a portion of their assessment).
20. POA/HOA by laws and Club Plans may not force arbitration as the only means to settle disputes. Residents’ choices to settle disputes should include small claims court, arbitration, mediation, civil court, or negotiated settlement.
POA/HOA by laws and Club Plans may not preclude payment of attorney fees for complainant damage awards and set.
21. POA/HOA by laws and Club Plans may not preclude payment of attorney fees for complainant damage awards and settlements.
22. Builder/developers may provide a list of independent arbitration organizations, but may not control the process of choosing an arbitration organization. Residents/club members must have alternatives and the same right to provide an arbitration organization to settle disputes. If agreement cannot be reached on a arbitration organization, the dispute reverts to civil court for settlement.
23. Builder developers may provide a list or arbitrators to conduct arbitration proceedings. Residents have an equal right to provide a list of arbitrators. If agreement cannot be reached on an arbitrator, the dispute reverts to civil court for settlement.
24. For arbitration proceedings, the rules for arbitration as defined by the arbitration organization take precedent over club plans and POA/HOA by laws.