Condo Association Management Blog

From HOA: Question about Florida condo rules - statute 720.306

  

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Our HOA community has recently gone through a chapter 11 bankruptcy filed by a developer. It was under a receiver for a while until the bank foreclosed on all the remaining lots. The receiver just before he left acting in behalf of the developer made all the remaining lots that the bank owns to Class “A”. Everything in our community is now Class “A”; we have no Class “B”. Does this mean that all lot owners under Class “A” should be paying the same amount in assessments for all common expenses such as: cutting grass, irrigation, streetlights and all other common expenses. In this situation how is unplatted land handled for assessments, if any? Also, how is voting handled for the banks Class “A” lots and the unplatted land.

Florida Statute.720.306 (1) (c)

"Unless otherwise provided in the governing documents as originally recorded or permitted by this chapter or chapter 617, an amendment may not materially and adversely alter the proportionate voting interest appurtenant to a parcel or increase the proportion or percentage by which a parcel shares in the common expenses of the association unless the record parcel owner and all record owners of liens on the parcels join in the execution of the amendment. For purposes of this section, a change in quorum requirements is not an alteration of voting interests. The merger or consolidation of one or more associations under a plan of merger or consolidation under chapter 607 or chapter 617 shall not be considered a material or adverse alteration of the proportionate voting interest appurtenant to a parcel."

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