Associations Can Suspend Rights of Delinquent Owners Only by “Properly Noticed Board Meeting”

Apr 4, 2016 | Board of Directors, Community, Community Manager, Residents

Question: My condominium association board is looking at ways to address owner assessment delinquency. We are interested in suspending use rights and voting rights. Our board does not meet frequently, and we do not want the additional administrative hassle of holding meetings just to suspend delinquent owners. Can’t we just issue a standing order that owner rights are suspended when the account goes delinquent?  N.R. (via e-mail)

Answer:  No. Suspension of voting rights and common facility use rights for an owner’s failure to pay assessments is governed by Sections 718.303(4) and (5) of the Florida Condominium Act. The statute provides that an owner who is more than ninety days delinquent in the payment of a fee, fine or other monetary obligation to the association, may have their use rights in the common elements, common facilities or other association property suspended until the amounts outstanding are paid. However, this suspension does not apply to limited common elements intended to be used only by the subject unit, common elements needed for access to the unit, utility services provided to the unit, parking spaces, or elevators. Voting rights can also be suspended for accounts more than ninety days delinquent.

The association can impose the non-payment suspensions without notice and hearing. However, the law provides that suspensions of use and voting rights for non-payment must be approved at a “properly noticed board meeting.”  Following such approval, the association must then notify the unit owner, and if applicable of a unit’s occupant, of the suspension by mail or hand delivery.

Section 720.305 of the Florida Homeowners’ Association Act imposes similar requirements for homeowners’ associations seeking to impose such suspensions. Both statutes also permit suspension for violations or governing documents, but require a hearing process.

 

 Originally appeared in the Florida Condo HOA Blog