CONDO LINE
Condo developer wears two hats
BY RICHARD WHITE
CAMquestion@cfl.rr.com
Q: I am a condominium owner in a complex that has approximately 200 units, of which approximately half are rental units waiting to be bought. The owner of the property owns these units and calls all the shots. We have one meeting per year, which means nothing, since the owner controls everything. I would like to know if we are, under law, entitled to an outside audit. Also, where I can get copies of county or state regulations regarding condominiums?
J.S., Orlando
A: First, read your documents to see if they require a type of year-end financial report. The condominium statute FS 718.111 requires the following: An association with total annual revenues of $100,000 or more, but less than $200,000, shall prepare compiled financial statements. An association with total annual revenues of at least $200,000, but less than $400,000, shall prepare reviewed financial statements. An association with total annual revenues of $400,000 or more shall prepare audited financial statements. A copy of the FS 718 can be found on the state's website http://leg.state.fl.us/; follow the links to the statutes.
As to the developer and his duties to the association, he is assumed to be wearing two hats. One is to his development company and the other is to the association. Sometimes these two duties conflict and there can be problems. I suggest that you send a letter to the board with your concerns and questions. Maybe you can get some of your neighbors to join you and then ask to have a meeting with the owner to resolve your questions.
Q: For many years our condominium of 135 units made available to unit owners (upon their request) a master phone list. The list provides unit address, name(s), phone (unless unlisted) and tenant names. Previous managers and boards saw no problem with this since all the data was part of the nonconfidential association records. The current manager says this is illegal under the Patriot Act. What is your opinion on this?
T.A., Clearwater
A: FS 718.111 says that this information is part of the official records of the association and that members have a right to request such records. The association may charge a copy cost and require a written document requesting the information by unit owners.
I am not sure how this is affected by the Patriot Act. The manager cannot establish association policy or take actions that conflict with laws. I would write the board of directors a letter and refer to the statute listed and request the information. If you have a problem with the board, ask members to contact the association attorney before you contact the Department of the Ombudsman (850-922-7671) or file a complaint with the state.
Q: When our Florida association was formed, our rental policy as described in our documents allowed rentals to be of any time period. A number of years later the documents were changed to monthly rental as the minimum time for people other than owners and family. This change was made so that we would not be considered a ``public lodging establishment.'' One of the owners has continued to rent as he sees fit, arguing that he is grandfathered in to the earlier agreement. Who is right?
R.D., Rocky River, Ohio
A: Changing the rental term because of ``public lodging establishment'' was not a valid argument. The length of rental would not be based on the association unless the association was renting units owned by it. If the point was to avoid the Florida Landlord Tenant Act, FS 83, then board members were misinformed. To avoid such conflict with short-term rentals, leases must be shorter than six months plus one day. One month does not avoid short-term laws and taxes applied to public lodging establishment requirements.
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