By David L. Snelling
Miami – As complaints and corruption continue to pile up for homeowners associations throughout Florida, a state lawmaker is proposing to abolish them altogether.
Rising fees, costly lawsuits and arrests tied to HOA corruption prompted state Rep. Juan Carlos Porras, a Republican from Miami, to file a bill for the next legislative session which would ban non-profit organizations that manage housing and condo communities.
“You know, it might just be time we take a look if HOAs are really even necessary,” Porras said. “Maybe we should just do away with homeowner associations as a whole.”
If the law is passed and goes into effect, it could impact South Florida homeowners more than other communities in the state.
According to the Community Associations Institute, in South Florida, there are roughly 64.7 million homeowners living in homeowner associations, which is the highest percentage in the U.S.
About 45 percent of Florida homes are part of an HOA, with 3.9 million of the state’s 8.6 million homes being managed by the associations.
Some HOAs enforce strict codes and levy fines against homeowners for not properly maintaining their property or failing to pay dues.
HOAs can even go to court to initiate foreclosure proceedings or place liens on properties even if the mortgage is current under Florida law.
One Florida resident reportedly was fined $3,500 for refusing to remove a fence after being repeatedly warned, which violated a homeowners’ association code enforcement law over an environmental issue.
The board of directors filed a lawsuit and placed a lien on her property until she wipes out the entire debt.
Corruption has been linked to several homeowners associations in South Florida.
In 2022, several current and former board members of the Hammocks Community Association, among Florida’s largest HOA were charged with stealing more than $2 million of residents’ money.
Miami-Dade State Attorney Katherine Fernandez Rundle announced a mix of theft, fraud and money laundering charges on against then president Monica Isabel Ghilardi, 52; board member Myriam Arango Rodgers, 76; former board member Yoleidis Lopez Garcia, 47; former president Marglli Gallego, 41; and Jose Antonio Gonzalez, 45, who is Gallego’s husband and accused of running two companies that were paid at least $1.26 million in HOA funds.
The HOA oversees 40 communities and over 6,500 units in West Kendall, located southwest of Miami.
“This case is not closed,” Fernandez Rundle said during a news conference in 2022. “These are not the end of the criminal arrests.”
In 2017, the Florida Legislature approved a bill that imposes criminal penalties on condominium violations such as electoral fraud, theft of funds and conflict of interest.
State lawmakers added provisions to tighten oversight and penalties on condo boards, including the creation of a felony offense for board members who withhold condo association records to commit or cover up a crime.
“Personally, I think it’s good from the perspective that it reiterates what’s already applicable law and maybe highlights it and defines it in greater detail,” says Bill Worrall, former vice president of FirstService Residential in Hollywood, Fla., which manages 1,300 condominium and homeowner associations totaling 310,000 residential units.” ” Worrall added that managers in Florida are required to work ethically and honestly, have a community association management license, and to fulfill some education.
“Board members are also required to do some things and have a background that’s clean, to a certain extent,” he said.
Despite the law, complaints have spiked since and Porras said he has heard enough from frustrated homeowners for HOA reform.
“In Miami-Dade County, where I live, it’s just a bunch of houses. The HOA doesn’t really maintain anything other than the grass in some areas,” Porras said. “And yet, you’re being charged $500, $600 plus a month. In reality, you don’t see a lot of that money going back to your community.”
Critics of Porras’ proposed bill said lack of homeowners oversight means property owners can’t be held accountable for their actions.
“HOAs make sure they keep their properties clean and we have code enforcement to increase property taxes,” said William Freeman, a member of an HOA in Miami. “Without HOAs, who will govern homeowners?”
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