Monday, December 20, 2010

First group of Suspension letters were sent out and suspensions were imposed.

The first group of Suspension letters have gone out to Owners with past due amounts owed to the Association.  This is due to the BOD enforcing the recent changes made to the Florida Statutes, including the one on 7/1/10, the current wording of a relevant section of condo law is:

718.303 Obligations of owners and occupants; remedies.— (5) The association may suspend the unit owners voting rights if they are more than 90 days delinquent in paying any monetary amount due to the association.


Of the first group of letters, no owner had asked for a hearing on the suspension.  Owners must be 90 days in arrears before such a letter is sent, a second group of letters will go out shortly.

The amount of delinquency hit a record high of $112,415 ths month and while collection efforts had brought this down by about $8k this may well be a temporary improvement as it it time for the 1st Quarter dues statements to be sent out and additional delinquencies are almost certain.  

see below at Dec 8th post for details. 

Also keep in mind that those behind in payments to the Association and who are renting out their units 'may' find that the Association will require those renters to directly pay to the office those rental payments rather than paying the condo owner, this is also covered in the new Florida statutes.

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 Usage Privileges Suspensions

1)  21 Owners have now had their usage privileges and voting rights suspended for being past the 90 limit on arrearages to the Association (see sample notification letter lower down in the blog). None of the suspended Owners had asked for a hearing to protest the suspension. 
Those 21 now suspended have lost the voting rights and also the use of:
  • Pool
  • Barbecues & Barbecue areas
  • Gym/Fitness Center
  • Conference Room
  • Clubhouse
2)  Good News/Bad News
Several past due owners have recently made payments, one of $3,800 and these Owners are now off the delinquency list.  Previously we had a delinquency of $112,415, recent collection efforts by the office have reduced that by $9,626 to a current delinquency of $102,789.  This is the 'Good News' part, the 'Bad News' is that the first quarter 2011 dues statements will go out in a few days and we might find that after the 10 day grace period, that we are again close to the old $112k high.  As mentioned previously the office is working on a set of new liens to be filed in January.

BOD to Suspend Use of Facilities and Voting Rights for Delinquent Owners

The below letter has gone out to Owners who owe money to the Condo. While amounts change almost daily, the amount past due is over $112,000, the highest we have ever had, and the condo can't be run on a deficit finance basis like the Federal Government, thus the rather harsh letter being sent out.
Considering the level of Delinquencies (43) we have only 68 Owners who are eligible to vote in or run for office at the 1/29/11 Annual General Meeting.  We have 37 condos that have Homeowners exemptions filed and of that number 16 are on the Delinquency list.

Generally speaking those who are at or past the 2nd missed Quarterly Dues payment are not going to be able to recover, probably they will end up in foreclosure.  I only know of one Owner who in effect 'came back' after having missed 2 Quarterly payments, hopefully this will change.


Since inception the condo has had 22 Foreclosures in total and liens have been filed against 31 units.  There was one bankruptcy which involved 2 units.

Additional liens are being prepared. Keep in mind that the filing of a lien by the condo is not a hostile action, it simply safeguards our claim on funds when the condo is eventually sold. No clear title can pass until a lien is satisfied. No condo has ever, or ever will, be foreclosed due to the condo filing a lien, it just states the claim to funds which must be paid before a clear title passes.

Here is the relevant part of the statute, keep in mind that if you are renting out your condo your tenants will be the ones banned from using the enumerated facilities.

(3) If a unit owner is delinquent for more than 90 days in paying a monetary obligation due to the association, the association may suspend the right of a unit owner or a unit’s occupant, licensee, or invitee to use common elements, common facilities, or any other association property until the monetary obligation is paid. This subsection does not apply to limited common elements intended to be used only by that unit, common elements that must be used to access the unit, utility services provided to the unit, parking spaces, or elevators.

(5) An association may also suspend the voting rights of a member due to nonpayment of any monetary obligation due to the association which is more than 90 days delinquent. The suspension ends upon full
payment of all obligations currently due or overdue the association.

It is also the BODs option to make your tenants pay your past due assessment. They notify the tenant that all rents in the future will be payable to the condo and not you. As far as I know this is not being done presently.
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BOD to Suspend Use of Facilities and Voting Rights for Delinquent Owners

The below letter has gone out to Owners who owe money to the Condo. While amounts change almost daily, the amount past due is over $112,000, the highest we have ever had, and the condo can't be run on a deficit finance basis like the Federal Government, thus the rather harsh letter being sent out.
Considering the level of Delinquencies (43) we have only 68 Owners who are eligible to vote in or run for office at the 1/29/11 Annual General Meeting.  We have 37 condos that have Homeowners exemptions filed and of that number 16 are on the Delinquency list.

Generally speaking those who are at or past the 2nd missed Quarterly Dues payment are not going to be able to recover, probably they will end up in foreclosure.  I only know of one Owner who in effect 'came back' after having missed 2 Quarterly payments, hopefully this will change.


Since inception the condo has had 22 Foreclosures in total and liens have been filed against 31 units.  There was one bankruptcy which involved 2 units.

Additional liens are being prepared. Keep in mind that the filing of a lien by the condo is not a hostile action, it simply safeguards our claim on funds when the condo is eventually sold. No clear title can pass until a lien is satisfied. No condo has ever, or ever will, be foreclosed due to the condo filing a lien, it just states the claim to funds which must be paid before a clear title passes.

Here is the relevant part of the statute, keep in mind that if you are renting out your condo your tenants will be the ones banned from using the enumerated facilities.

(3) If a unit owner is delinquent for more than 90 days in paying a monetary obligation due to the association, the association may suspend the right of a unit owner or a unit’s occupant, licensee, or invitee to use common elements, common facilities, or any other association property until the monetary obligation is paid. This subsection does not apply to limited common elements intended to be used only by that unit, common elements that must be used to access the unit, utility services provided to the unit, parking spaces, or elevators.

(5) An association may also suspend the voting rights of a member due to nonpayment of any monetary obligation due to the association which is more than 90 days delinquent. The suspension ends upon full
payment of all obligations currently due or overdue the association.

It is also the BODs option to make your tenants pay your past due assessment. They notify the tenant that all rents in the future will be payable to the condo and not you. As far as I know this is not being done presently.