WHAT IS PAST IS PROLOGUE

Hi all,
As Cable Chair I receive some interesting questions; this one has arisen before, in this BLOG, but I am going to re-post the answer as it is important to all Associations:

THIS IS NOT LEGAL ADVICE; PLEASE READ THE STATUTE REFERENCED. The law provides strong sanctions, so do not get creative or you may end up in Court as the Defendant.
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Question:

"May the Association have Comcast cut off Cable services to a Unit Owner who is delinquent in their monthly fees."

The short answer is NO! please read the following:
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Hi all,

FS 718 does indeed provide strong sanctions in the case of delinquency of Fees. In essence they are:

1) Acceleration of all monies due to the end of the Budget year.(Filing of lien)

2) Charging Interest on amount due up to 18%

3) Administrative/Late fee up to greater of $25.00 or 5% of each delinquent installment.

4) Rejection of lease if Unit Owner is in arrears.

No mention of “Removal of Privileges” is contemplated in The Act, so don’t get “creative” Please read the extracts following:

REF: http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=Ch0718/ch0718.htm

FS 718.112(g)

(g) Assessments.--The manner of collecting from the unit owners their shares of the common expenses shall be stated in the bylaws. Assessments shall be made against units not less frequently than quarterly in an amount which is not less than that required to provide funds in advance for payment of all of the anticipated current operating expenses and for all of the unpaid operating expenses previously incurred. Nothing in this paragraph shall preclude the right of an association to accelerate assessments of an owner delinquent in payment of common expenses. Accelerated assessments shall be due and payable on the date the claim of lien is filed. Such accelerated assessments shall include the amounts due for the remainder of the budget year in which the claim of lien was filed.

FS 718.116(3)(4)

(3) Assessments and installments on them which are not paid when due bear interest at the rate provided in the declaration, from the due date until paid. This rate may not exceed the rate allowed by law, and, if no rate is provided in the declaration, interest shall accrue at the rate of 18 percent per year. Also, if the declaration or bylaws so provide, the association may charge an administrative late fee in addition to such interest, in an amount not to exceed the greater of $25 or 5 percent of each installment of the assessment for each delinquent installment that the payment is late. Any payment received by an association shall be applied first to any interest accrued by the association, then to any administrative late fee, then to any costs and reasonable attorney's fees incurred in collection, and then to the delinquent assessment. The foregoing shall be applicable notwithstanding any restrictive endorsement, designation, or instruction placed on or accompanying a payment. A late fee shall not be subject to the provisions in chapter 687 or s. 718.303(3).

(4) If the association is authorized by the declaration or bylaws to approve or disapprove a proposed lease of a unit, the grounds for disapproval may include, but are not limited to, a unit owner being delinquent in the payment of an assessment at the time approval is sought

Randall further notes in the Comment stream:

718.112 (2)(n)

Director or officer delinquencies.--A director or officer more than 90 days delinquent in the payment of regular assessments shall be deemed to have abandoned the office, creating a vacancy in the office to be filled according to law.

718.112(2)(d)....

or who is delinquent in the payment of any fee or assessment as provided in paragraph (n), is not eligible for board membership.

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Dave Israel