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Florida HOAs and condo associations merge into one community

  
  
  
  
  
We live in a carriage home (condo) in Fort Myers, Florida. Our community is a mixture of condos and single family homes. There are a total of 552 doors of which 200 are condos, and the rest are made up of estate homes and villa homes. Up to this point (the past seven years) there were separate associations for the condos, villa homes, and estate homes. Besides there is a community association governed by HOA rules while the condos are Condo rules. We received an e-mail stating from the Board of Directors stating that all of the boards have voted to merge all of homeowners and Condo associations into one association. First of all is this legal? We are under the understanding that condos and single family homes operate under different rules, HOA and Condo rules. This a community with a private golf course which was turned over to the membership last July. Membership IS NOT MANDATORY to live here BUT rumors are flying that the members what to make it a bundled golf community. All of the different associations are placing golf members on the different boards. We (community) feel that this latest attempt to consolidate is a further move to control the community. Shouldn't there be a community vote first to consolidate the different associations and second, to have total membership vote to change it to a bundle golf community?

Comments

This is a very complicated and absolutely a legal issue.  
 
In most states, condo entities could merge together as a condo - with votes required by both owners and mortgage companies. The same would be true of separate HOAs merging. The condos would still continue to belong to the "master" association.  
 
By definition, again in those states where this company has provided consultation, it is not possible to merge a condo and hoa into one single entity due to the different ownership structure of the two types of housing.  
 
In all instances that I am familiar with, there is no way for a board to complete and approve such a merger without vote of owners and approval of a majority (again determined by the legal documents) of the mortgage holders.  
 
A group of boards can combine some contracts for cost savings - such as landscaping, perhaps even management or collections; however without legal authority, assessments would continue to be based on each entity's legal requirements.  
 
Again, the issue of the golf course is a separate legal issue. There generally is no way that a golf course can become a mandatory membership of property owners following the purchase of each lot without consent of the individual owner. The local building approval agency should be a starting contact to determine the requirements of the golf course.  
 
Seek assistance from the governmental agencies that approved this development. If any of the condos are FHA approved, the regional office of FHA may be of assistance. Changes, not legally handled, are of concern to the mortgage companies and title insurance companies for each owner.  
 
As stated in other situations, this issue will take WORK to determine what is being attempted and then, for that part which is feasible, additional work will be required to achieve. The combination of associations does have significant benefits both in recruiting volunteers and in financial savings for all members when it has been properly accomplished.  
 
 
 
 
 
Posted @ Thursday, February 24, 2011 10:58 AM by Nancy Jacobsen
The condo owners need to carefully read their Condo Documents and Articles of Association to see if they speak on whether or not the association can add to the property. If they say it cannot, that's the end of story,and if the documents do speak on the topic they are likely also to state what vote of the membership is required for it to pass and how that vote must be conducted.  
 
Use a legal professional to advise you, it will be well worth the cost.
Posted @ Thursday, February 24, 2011 8:25 PM by John C.
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