Friday, September 10, 2010

Homeowners Accuse HOA Of Using Lien Notices To Retaliate For Earlier Suit Charging Association w/ Illegally Amending Rules To Increase Their Control

In Charlotte County, Florida, the Sarasota Herald Tribune reports:

  • Residents in a retirement community here say they are being threatened with lien and foreclosure notices because of a legal battle with their homeowners association. About 50 residents of the Gardens of Gulf Cove, [...] are suing the association that manages the community, and the local board of directors. Their attorney, Barbara Stage, said the board illegally amended association rules to gain greater control over the budget and dues assessments.

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  • [R]esidents say that since the suit was filed in March, perhaps 90 homeowners have received "intent to lien" letters over late dues, without receiving bills or late-payment notices.

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  • The lawsuit was filed around the time quarterly payments were due, so the timing of the letters may be a coincidence. But Stage said it is common for HOAs to "play dirty" when they are sued, and the lien process is a moneymaker. Resident and plaintiff James McMahon noted that he was charged $256 in attorney's fees. Multiplied by 90 residents, that is about $23,000.

For more, see Homeowners association battle threatens homes.

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