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COVID-19

April 2, 2020/in FAQs, News /by Nicole Padilla

First and foremost, I hope that this post finds you, your family and loved ones doing well. The purpose of this post is to discuss COVID-19, the public health emergency also known as the coronavirus, that is significantly impacting our everyday lives. Below, please find some frequently asked questions and answers that are likely pertinent […]

Can Your Community Association Collect Rent Monies?

July 29, 2019/in FAQs, News /by martellandozim

It’s extremely frustrating when an owner fails to pay their assessments. After all, the collection of assessments is the backbone of all condominium and homeowners’ associations. It doesn’t matter if your association is new or old, small or large, gated or non-gated, full of amenities or not. Each and every community association requires money to […]

COVID-19

April 2, 2020/in FAQs, News /by Nicole Padilla

Can Your Community Association Collect Rent Monies?

July 29, 2019/in FAQs, News /by martellandozim

Full Sized Blog Element (Big Preview Pic)

COVID-19

April 2, 2020/in FAQs, News /by Nicole Padilla

What is COVID-19? COVID-19 is an infectious disease that causes respiratory illness, such as cough, fever, and difficulty breathing. It spreads primarily through contact with an infected person when they cough or sneeze. It also spreads when a person touches a surface or object that has the virus on it, and then touches their eyes, nose or mouth.
Is COVID-19 a pandemic? Yes, on March 11, 2020 the World Health Organization declared COVID-19 a pandemic.
Is Florida under a State of Emergency? Yes, on March 9, 2020 Governor DeSantis issued Executive Order 20-52, declaring a State of Emergency for COVID-19.
What are a few valuable resources for COVID-19 information? The following websites have very valuable information on the coronavirus:
1. World Health Organization – who.int/emergencies/diseases/novel-coronavirus-2019
2. Centers for Disease Control and Prevention – cdc.gov
3. Florida Department of Health – floridahealth.gov; 24 hours a day, 7 days a week hotline at (866) 779-6121.
Should our community association practice social distancing? The CDC recommendations social distancing and avoiding groups of 10 or more people. This guideline has recently been extended to April 30, 2020 and is certainly subject to further extension. Please see below regarding how to handle members’ meetings, Board Meetings and Architectural Meetings.
Can my community association close common area/common element amenities? Yes, to promote the health, safety and welfare of the community, your association can close its pool, gym, movie room, etc. Moreover, in my opinion, your association can cancel previously scheduled social events. Many insurance companies have issued an opinion that the Association could be liable for breach of its fiduciary obligations if it has knowledge that its facilities are being used as places of social gatherings and it takes no action to deter gatherings per the recommendations of the CDC and local Stay at Home Orders.
Can my community association proceed with the collection of assessments? Yes, assessments are the backbone of your community, as you certainly need money to operate your association. You can proceed with the collection of assessments and evaluate each account on a case-by-case basis. For example, you may decide to waive interest or late fees, or offer a delinquent owner a payment plan. You should not assume that all Owners are unable to pay, and you do not want to inadvertently create a waiver issue for collections. Instead, continue to send notices if non-payment occurs and handle settlement requests on a case-by-case basis.
Can my community association proceed with covenant enforcement? Yes, you may proceed with covenant enforcement for properties that are in violation of the association’s covenants and restrictions. Again, you should evaluate each account on a case-by-case basis and exercise reasonableness while working with owners to bring their property into compliance.
Can my community association cancel board and/or member meetings? In order to comply with CDC guidelines on social distancing, you may cancel/postpone meetings. It is recommended that all members meetings be postponed during Florida’s State of Emergency in order to comply with CDC guidelines. Even if you were in the midst of an election, you may postpone your election, have the existing Board continue to serve, and resend notices after Florida’s State of Emergency is lifted.
If my Board wishes to proceed with Board Meetings and/or Architectural Meetings, can we do so telephonically? Yes, you may conduct Board Meeting and Architectural Review Board (ARB) Meetings telephonically as long as members can call or log-in via the same method as the Board and can clearly hear the discussion taking place. Moreover, members should be able to ask questions when appropriate. Under Florida’s current State of Emergency, emergency meetings of the Board do not have to be noticed. However, non-emergency Board Meetings and ARB Meetings should be posted, and members should have the ability to join and listen to the call.

Obviously, this is an unprecedented and scary time. One of the Board’s many important tasks is to protect the health, safety and welfare of the community. The COVID-19 pandemic is a fluid situation, with information and guidelines changing almost daily. We are here to help you and your community through this difficult time. Please do not hesitate to contact our office with further questions. Stay safe!

Can Your Community Association Collect Rent Monies?

July 29, 2019/in FAQs, News /by martellandozim

It’s probably even more frustrating when an owner fails to pay their assessments…but month-in and month-out collects rent monies from their tenant! Fortunately, both Chapter 718, Florida Statutes (the Condominium Act) and Chapter 720, Florida Statutes (the Homeowners’ Association Act) provide a solution for our community associations.

Specifically, Section 718.116(6) (pertaining to condominiums) and Section 720.3085(1) (pertaining to homeowners’ associations) state that if a unit or parcel is rented during the pendency of the Association’s lien foreclosure action, the Association is entitled to the appointment of a receiver to collect the rent. Typically, the Court will enter an order appointing our law firm, Martell & Ozim, P.A., as the receiver to collect rent monies on behalf of the Association.

The Court’s order will direct the tenant to make all rent payments to our law firm. The tenant can make payment to the Association in the same form as he/she pays the owner. In other words, the Association can’t require the tenant to make payment via certified funds or credit card. The tenant’s obligation to pay rent to the Association begins immediately, unless the tenant already sent payment to the owner before receiving notice. In that case, the tenant must provide the Association with written proof of payment within fourteen (14) days after receiving notice and the tenant’s obligation to pay rent to the Association begins with the next rental period. If the owner receives any rent payments from the tenant after entry of the Court’s order, the owner shall forward said payments to our law firm within seven (7) days of receipt.

Once the account is paid in full, including all assessments, interest, late fees and attorneys’ fees and costs, the Association will dismiss its lien foreclosure lawsuit and notify the tenant to resume rent payments to the owner.

It’s important to remember, the tenant’s obligation to pay rent monies to the Association gives the tenant complete immunity from any claim for rent by the owner.

The ability for your condominium or homeowners’ association to collect rent monies from a tenant who is paying a delinquent owner is a great tool! If your community association has owners who are delinquent in the payment of monetary obligations, contact Martell & Ozim, P.A. to schedule a free collections strategy session at (407) 377-0890 or info@martellandozim.com.

Half Sized Blog Element (Single Author Style)

Half Sized Blog Element (Multi Author Style)

COVID-19

Can Your Community Association Collect Rent Monies?

COVID-19

Can Your Community Association Collect Rent Monies?

Full Sized Blog Element (Big Preview Pic)

COVID-19

Can Your Community Association Collect Rent Monies?

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