Herald Tribune: Court case could increase cost for homeowners associations
By Josh Salman — Published: Thursday, February 27, 2014 at 9:25 p.m.A pending opinion from the Florida Supreme Court could dramatically increase operating costs for thousands of homeowner associations statewide and substantially drive up condo owners’ expenses. The looming decision is connected to a recent Florida Bar opinion that, if enacted, will force community association managers to hire attorneys to handle various administrative duties now done primarily in-house. Bar officials say the changes will strengthen the roughly 26,000 community associations in Florida by ensuring that complex issues are handled by legal professionals. But trade groups fear the proposed changes could instead cripple recession-battered homeowner associations that are struggling financially because of foreclosures, delinquent dues and widening budget shortfalls. In response, they are lobbying for new bills — now gaining momentum in the Florida Legislature — that would keep the associations in charge of the administrative tasks. “It’s a classic solution in search of a problem,” said Aaron Gordon, corporate general counsel for LM Funding, a Tampa company that collects debts for homeowner groups. “This is a big deal that could entirely change what community associations deal with, and how they do business.”