Florida HOA ordered by judge to pay $35 million to residents for improper fees

[Zorro]

Each resident could receive up to $10,000 after the ruling.

POINCIANA — Residents of a 55-plus neighborhood in central Florida have been awarded nearly $35 million in a civil case following a judge’s ruling that they were charged improper homeowners’ association fees.

“It’s been a long battle,” Lita Epstein,who chairs the Poinciana Community Development District, told the Orlando Sentinel.

Each resident could receive up to $10,000 following the Nov. 2 judgment issued by Polk County Judge Wayne Durden, according to Carter Anderson, an attorney for the plaintiffs. The lawsuit represented more than 5,000 residents of the Solivita development in Poinciana, which spans parts of Polk and Osceola counties.

Developer Avatar Properties proposed a bond measure in 2015 to sell a clubhouse, pools and tennis court to the resident-run development for $73 million, the newspaper reported. However a valuation of the amenities by a certified appraiser found them only to be worth roughly a quarter of that.

https://www.tampabay.com/news/florida/2021/11/12/florida-hoa-ordered-by-judge-to-pay-35-million-to-residents-for-improper-fees/

[twodogsbarking]

1. Never trust a realtor.

[Escurumbele]

4. That is a very unfair statement. There are more honest realtors than not.

Part of the problem is that regulations against HOAs need to be enhanced, today they do pretty much whatever they want, they set up their own rules (Bylaws) and no one has any saying about them. The monthly meetings are a joke, HOAs need to be regulated much more forcefully.

Some HOAs do work very well, and I know because I have owned property in condominium developments where the HOAs have been very good.

It is wrong to generalize.

[twodogsbarking]

5. Never trust a realtor.

[COL Mustard]

8. Troll Much?

Seems like you’re looking for a fight. Got any data to back up your charge?

[whopis01]

10. Strange comment to make.

It appears as if you want to distract from the actual problem which is the developer run HOA using its power to rip off the homeowners.

There is nothing in this story that involves realtors, other than the fact it involves real estate.

Perhaps you are just looking for any opportunity to put out your message about realtors. But being the first reply to this article really makes it feel like you are trying to convince people that this lawsuit/issue was caused by realtors somehow, instead of the true culprits.

[twodogsbarking]

11. Never trust a realtor.

[whopis01]

12. Thanks for the clarification of your point. n/t

[twodogsbarking]

13. You are quite welcome.

I only stated one thing. Everything else was supposition by others.

Never trust a realtor.

[Baitball Blogger]

2. Yes!

I do believe there is a terrible practice of feeding the kitty in our HOAs, and the money goes to reinforce relationships among the cabals and to prepare for future legal battles. I hope more HOAs get audited. It should be mandatory every three years.

[jaxexpat]

3. Hey, it's Florida. Sun's gotta shine, gators gotta bask, developers gotta cheat.

It's a tradition already. Started when the first cracker received a nouveau fortune(and a condo with running water in Miami) for his inherited wasteland.

[Goodheart]

6. A HOA are the residents. This story makes little sense to me.

[Farmer-Rick]

7. Yeah I don't understand it either

So some property developer sold a HOA clubhouse, pool and facilities overpriced by 400 percent. So, why did the HOA buy it? Why were residents overcharged? Who voted in these HOA members? And really, those facilities usually come attached to those develments, why were they a separate cost to residents? When I lived in an apartment complex, I didn't get charged extra for the pool, clubhouse and tennis court. It came with the monthly rent.

Anyway this story needs more details. If HOAs are run properly, they can be a good thing. But mostly they become bad because they take a rental property issue and turn it into a home owner issue. It's as if the people who live there don't know the difference.

If those facilities were for sale and the residents wanted them, why not set up a club with a monthly fee? Anyway, I feel there just isn't enough info in the story.

[COL Mustard]

9. A Lot Of Times, At Least In Virginia

The developer sets up the HOA for a new development. There aren’t any property owners at first, so the developer writes the rules and the bylaws. As homes sell, the owners are still bound by the HOA rules. Once there are enough owners to change the rules, they can.

I hate large HOAs for that reason.

[whopis01]

14. The homeowners may not be in control of the HOA

If a neighborhood is still be built, which I believe is the case here, the developer often controls the HOA.

The governing documents are often written to give the developer more votes per lot owned than the typical 1 vote per lot for a homeowner.

If I understand correctly it sounds like the HOA, while controller by the developer, committed the neighborhood to these purchases.