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NOVEMBER 2000
MEMORANDUM TO CLIENTS
COVENANT ENFORCEMENT: CAN YOU REALLY REQUIRE COMPLIANCE?
What is one of a community association =s most important functions?
The universal answer usually is preservation of aesthetic appearance. That purpose appears
to be a function of all associations.
Certainly there are other matters of importance. Condominium and
cooperative associations frequently must maintain buildings. Homeowners = associations frequently must
maintain roads and canals. How the community looks is a matter of interest to all
associations whatever their type.
A number of appellate decisions have addressed covenant enforcement.
This Memorandum addresses a new and growing problem for many associations.
Many associations, directors, members and managers, assume that each
association has authority to enforce its community =s covenants. While that
conclusion may appear logical, that conclusion is not always correct. Just because a real
property use restriction is recorded in a county=s public records does not mean that an association can
enforce the restriction.
The danger of automatically assuming that an association has
enforcement authority was demonstrated in a series of three decisions issued over the last
year. The earliest decision was Isle of Catalina H.O.A., Inc. v. Pardee, 739 So. 2d
664 (Fla. 5th DCA 1999). The decision described how Ms. Pardee replaced the
fence which surrounded her lot from the time she purchased the lot. The new and different
fence was constructed without first obtaining the Isle of Catalina Homeowners Association =s (AICHA@) approval.
Ms. Pardee questioned whether the ICHA had authority to enforce the
claimed fence approval requirements. When the community =s Declaration of Covenants
was originally recorded in 1958, lot improvements had to be approved by the community=s developer or the developer=s successors. Amendments to
the covenants had to be the developer or its successor absent unanimous unit owner
approval.
Twenty-two years later, in 1980, a corporate association known as the ACRIA@ recorded covenants requiring
owners to seek approval for improvements from the CRIA. The amendments did not have
unanimous owner approval. The new CRIA covenants did not mention the ICHA. Twelve years
thereafter, in 1992 the CRIA reincorporated as the ICHA.
The appellate court affirmed the denial of injunctive relief and
invalidation of amendments. The Declaration, recorded in 1958, stated that it was binding
for twenty-five years and could not be amended by anyone other than the developer or its
successor absent unanimous unit owner approval. The 1980 amendments did not receive
unanimous approval; thus, those amendments, purportedly adopted within the twenty-five
year period were not enforceable. Alternatively, the CRIA was not the developer =s successor. In essence,
there was not a direct chain, or link, of approval rights from the developer to the suing
association.
The second decision, Hernandez v. Trout Creek Dev. Corp., 25
Fla. L. Weekly D437 (Fla. 2nd DCA February 16, 2000), dealt with a very unusual
claim. Normally we read of owners who state that they do not desire to be in an
association. In Hernandez, lot purchasers sued the developer for not creating a
homeowners =
association to enforce covenants!
Instead of creating a homeowners = association, the developer
created the AMeadow
Pointe Community Development District.@ The District, created pursuant to Florida Statutes Chapter 190 was
allegedly endowed with authority to enforce the covenants. Thereafter, the developer
created a voluntary homeowners= association purportedly assigning the voluntary association enforcement
authority.
The appellate court =s analysis divided the dispute into two separate issues. First, the court noted
that the Declaration of Covenants provided the developer the right to enforce the
covenants. The developer assigned this right to the voluntary association. Thus, the
voluntary association would have the right to enforce the covenants. Second, the court
noted that a special taxing district created under Chapter 190 does not have authority by
statute to enforce covenants.
The third and final decision was just recently released. In Cudjoe
Gardens Prop. Owners Ass =n, Inc. v. Payne, 25 Fla. L. Weekly D2305 (Fla. 3rd DCA September
27, 2000), the Association in a very roundabout way was found to have authority to enforce
covenants. The Paynes did not dispute that their home was constructed in violation of
setback requirements. The Paynes defended their efforts noting that the Association did
not have authority in the documents to enforce the covenants.
The appellate court noted that as lot owner, the Association could
enforce the covenants as any other owner. Unlike most associations which do not own lots,
because of Cudjoe Garden =s unique circumstances the Association was able to pull the proverbial Abunny out of the hat@ and enforce the covenants.
To the extent there is a Amoral to the story@ it is to ensure that the
Association has authority to enforce covenants before action is taken. Recent legislative
enactments such as '718.303(1) and '617.305(1), now '720.305(1) Fla. Stat. may provide authority for associations to
enforce covenants; however, those statutes may be held to not retroactively apply to
associations created before the statute was enacted. In that circumstance, associations
will desire to be extra careful before filing suit.
CELLULAR TOWER ALERT
Cellular phones + location = association income? Many associations,
particularly condominium associations in the right Alocation@ have been approached to
provide leases or easements for the installation of cellular towers and antennas. These
installations raise numerous issues. Issues include whether the compensation to be paid is
appropriate, and what risks are created for the association and members. Other issues
include the alteration of property and the approval necessary for the alteration. Many
times the installer seeks advance consent to begin permitting. Associations are urged to
carefully consider cellular telephone agreements before executing or making
representations indicating any agreements.
FIRM NOTES
We hope that clients find the firm =s new font and layout more
readable. With the acceptance of Times New Roman font, particularly in the appellate
courts, most of the firm=s work will be in this new font.
Please note that the firm =s offices will be closed for the observance of Veteran=s Day, Friday, November 10,
and for Thanksgiving Day and the Friday thereafter, November 23 and 24, 2000. We wish all
of our clients a healthy holiday.
This information is provided for public
information purposes only and is provided without obligation or fee. It is distributed to
the firm's association clients to provide a general notice of recent legal changes. This
information is not to be considered as legal advice. The changes in the law may not have
been reviewed by Florida courts and may be subject to further challenge. Before taking any
action you are urged to consult with counsel to ensure that your legal rights are
protected.
8 2000 by Gelfand & Arpe, P.A. |
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