FCAP members Dan Gleason, CAM, CFCAM and Ronald Scott Kaniuk, Esq with Bakalar & Associates, PA recently discussed Master HOA authority and unit leases. Here is a look at their informative Q&A.
Dear FCAP,
One of my associations is the lone condo district in a larger HOA association made up of 13 districts. The master HOA association wishes to limit the ability of the condo association owners to leases of only 2 years in length and the lessees can never lease again in the condo association even from a different condo owner. FS 718.110 (13) seems contrary to that notion, but the master claims in its documents that it is not a condo association and therefore unaffected by FS 718. The condo owners have not consented to this change in the master association’s documents and no vote has been taken by members of the condo association to accept or reject this change. Some of the condo owners have long term lessees whom they want to keep as lessees. Will they lose their long term lessees and if so when?
Dan Gleason, CAM, CFCAM
Dear Dan,
It seems that there are 2 questions presented here.
The first question is whether or not the Master HOA can enact rules to limit the ability of the Condominium Association owner to lease their property (both in duration of lease and identity of lessee). The answer to this question is Yes, the Master HOA can enact rules to limit the ability of the Condominium Association owner to lease their property (both in duration of lease and identity of lessee), but need to follow the applicable rules to modify the governing documents for the Master HOA.
The second question is, assuming such rules could be enacted, what the effect will be on existing leases. The answer to this question is that existing leases would be unaffected. The Master HOA would not have the power to void or seek to void a valid lease between an owner as landlord and a tenant. However, any such amendment would have an effect to limit new leases entered into by any property owners, whether or not they are currently leasing their property.
FS 718.110(13) governs the rights of the Condominium Association to restrict rentals. It is ineffective against Homeowners Associations, who are governed by Section 720.
Ronald Scott Kaniuk, Esq.
Bakalar & Associates P.A.
www.assoc-law.com
