Legislative Matter

Miami-Dade Legislative Item
File Number: 072880

Printable PDF Format

Clerk's Official Copy

File Number: 072880

File Type: Resolution

Status: Adopted

Version: 0

Reference: R-1240-07

Control: Board of County Commissioners

File Name: LOAN TO BIRD LAKES HOA

Introduced: 9/26/2007

Requester: NONE

Cost:

Final Action: 11/6/2007

Agenda Date: 11/6/2007

Agenda Item Number: 11A3

Notes:

Title:

RESOLUTION AUTHORIZING A LOAN TO THE BIRD LAKES HOMEOWNERS ASSOCIATION TO PAY FOR COSTS ASSOCIATED WITH THE APPOINTMENT OF A RECEIVER FOR THE BIRD LAKES ESTATES AND ALLOWING FOR THE WAIVER OF THE REPAYMENT OF THAT LOAN UNDER CERTAIN CIRCUMSTANCES

Indexes:

TEAM METRO

Sponsors:

Joe A. Martinez, Prime Sponsor

Sunset Provision: No

Effective Date:

Expiration Date:

Registered Lobbyist:

None Listed

Legislative History
Acting Body	Date	Agenda Item	Action	Sent To	Due Date	Returned	Pass/Fail

Board of County Commissioners	11/6/2007	11A3	Adopted				P
REPORT:	Commissioner Martinez explained the intent of the foregoing proposed resolution. Commissioner Moss spoke in support of the foregoing proposed resolution. Commissioner Sorenson stated that she was also in support of the foregoing proposed resolution; however, she suggested that, in order not to set a precedent, Team Metro issued letters emphasizing to homeowners that in the future they must have a Homeowners Association. Assistant County Attorney Thomas Robertson explained that from a policy standpoint, a good way to avoid the filing of such lawsuits in the future would be to send notification to each of the residents advising them of what was about to occur. Mayor Alvarez assured the Board that the County Administration had taken the necessary steps to avoid this situation from occurring again.

Governmental Operations and Environment Committee	10/12/2007	3D	Forwarded to BCC with a favorable recommendation				P
REPORT:	The foregoing proposed ordinance was read into the record by Assistant County Attorney Geri Bonzon-Keenan. Commissioner Martinez explained the intent of the foregoing resolution. He noted Team Metro filed a lawsuit against this Homeowner Association (HOA) for numerous code violations, but the HOA was not notified of the lawsuit. He noted the appointed receiver was notified to cease the lawsuit, but increased his fees in the process. Commissioner Martinez stated the County Attorney was negotiating with other attorneys to reduce that fee. Chairwoman Seijas asked the Assistant County Attorney to provide an explanation. Assistant County Attorney Thomas Robertson explained that this area generated numerous code violations, of which many were on common properties owned by the HOA, and the County was required to file a lawsuit against the HOA directly. He noted the County Attorney asked the Courts to appoint a receiver in order to reconstitute the HOA, but the receiver made some mistakes. He also noted the HOA was informed that a receiver was appointed and the case could be settled if costs could be determined. Mr. Robertson further noted there was a small litigation risk, and these funds would help offset the costs of the HOA and settle the lawsuit, which would alleviate numerous code violations in that area. In response to Commissioner Edmonson’s question regarding the mistakes made by the receiver, Mr. Robertson noted he preferred not to discuss this subject since the court proceedings were ongoing. He noted, however, that anything the County Attorney believed was an error by the receiver would be presented to the Court to have the receivers fees adjusted accordingly. In response to Commissioner Gimenez’ question regarding whether this HOA was dissolved, Mr. Robertson noted the County Attorney requested the Courts appoint a receiver in order to reconstitute the HOA and to take control of the property owned by the association in order to bring them into compliance. The receiver, he noted, tried to reconstitute the HOA, but amassed several bills for payment by the County. He noted the County Attorney was considering paying those bills, which was the purpose of today’s meeting, but with the understanding that the County Attorney had the right to challenge them for the correct amounts. Mr. Robertson also noted the other option was to litigate the receivers fees, however, those fees are set by the Courts but could be appealed. Commissioner Gimenez questioned whether this was structured as a loan or a grant. Mr. Robertson noted this was structured as a loan to ensure the HOA organized and complied with the code violations within a six month period, but would be waived if they complied, otherwise, they would be required to repay the loan. He noted if this was structured as a grant, the monies could not be legally recovered. Commissioner Martinez noted Team Metro initiated the lawsuit, which he and the County Manager were unaware of until they heard it on the news. He further noted that when this resolution was drafted, the funding was to come from Team Metro. In response to Commissioner Gimenez’ questioned as to whether this would set a precedent for other cases, Mr. Robertson noted it could be questioned in the future; however, it would not bind the County Commission to take actions with respect to future cases. Concerning Commissioner Gimenez’ question whether the County would receive any releases or waivers or whether the HOA could file a lawsuit against the County, Mr. Robertson noted the County would include releases as part of its settlement; and that once the receiver was paid, he would issue releases. He also noted the County Attorney would take measures to ensure that the HOA could not seek litigation against the County. Commissioner Rolle spoke in support of this resolution. Hearing no further discussion, the Committee proceeded to vote on the foregoing proposed ordinance as presented.

County Attorney	9/26/2007		Assigned	Thomas H. Robertson		9/26/2007

County Attorney	9/26/2007		Referred	Governmental Operations and Environment Committee	10/12/2007

Legislative Text

TITLE
RESOLUTION AUTHORIZING A LOAN TO THE BIRD LAKES HOMEOWNERS ASSOCIATION TO PAY FOR COSTS ASSOCIATED WITH THE APPOINTMENT OF A RECEIVER FOR THE BIRD LAKES ESTATES AND ALLOWING FOR THE WAIVER OF THE REPAYMENT OF THAT LOAN UNDER CERTAIN CIRCUMSTANCES

BODY
WHEREAS, the County, through TeamMetro, has sued the Bird Lakes Estates Homeowners Association (HOA) to correct certain County Code violations which exist on both common properties and individual properties; and
WHEREAS, the HOA had become defunct and no longer operating at the time of the filing of the lawsuit; and
WHEREAS, the lawsuit has resulted in the appointment of a Receiver to reconstitute and organize the HOA so that the code violations may be corrected; and
WHEREAS, the work of the Receiver has resulted in costs that may be born by the home owners through assessment from the HOA; and
WHEREAS, mistakes have occurred in the Receivership and with respect to notice to the residents resulting in extra fees and costs; and
WHEREAS, the residents of various areas of the Bird Lakes development have different interests in the out come of the lawsuit depending on their location and have needed to retain attorneys to represent their interests and have been obligated to pay those attorneys; and
WHEREAS, the residents of the area are living on limited incomes and are not able to absorb the costs of the Receiver or the costs of private attorneys; and
WHEREAS, the residents have now expressed a desire to organize and operate the HOA without the Receiver and intend on operating the HOA which will resolve and potentially settle this lawsuit; and
WHEREAS, the residents may have available to them methods to recover the costs of the Receiver, but those methods may take some time to effect,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that the County Mayor is authorized and directed to extend and fund a loan to the Bird Lakes Homeowners Association for the payment of the costs incurred as a result of the lawsuit including the costs of the Receiver and or private attorneys in an amount not to exceed $250,000. The Mayor is authorized to waive the repayment of the loan in his discretion, provided the HOA has taken all reasonable steps to recover the costs through other available methods and has taken all reasonable steps to organize and operate and fund itself for the benefit of the residents and has addressed, to the satisfaction of the Mayor, the County code violations within the HOA.