Lisa Magill, an attorney who represents condo and homeowner associations, had evidence three years ago that directors in a Pompano Beach-area condo stole $178,000. She reported it to police but "I couldn't get past step one," she said.
It's a civil matter, they told her.
Attitudes are changing. In Broward County alone, three court cases against former association directors, managers and employees charging fraud or misuse of owners' money are scheduled to be heard between Dec. 20 and Jan. 24.
"Now, there seemingly is a willingness on the part of law enforcement agencies and prosecutors to recognize that these cases aren't dogs, that they are real crimes like anything else," said Magill, president of the Southeast Florida chapter of the Community Associations Institute.
Her nonprofit group will conduct a free, all-day event Jan. 26 that will include an hour-long class on how to detect and prevent community association fraud. Owners can attend the one-hour class at 1:30 p.m. or the whole program at the Wynmoor Community Council in the 1300 block of the Avenue of the Stars, Coconut Creek. For more information and directions, see www.cai-seflorida.org.
State condo ombudsman Danille R. Carroll will be the keynote speaker. Her topic will be the Miami-Dade County pilot program she developed with state Rep. Julio Robaina, R-Miami, to get cases prosecuted. The program includes a brochure and checklist to help owners. See them under the heading "Pilot Program" in www.sun-sentinel.com/condos.
Magill credits Robaina for the change in attitude by law enforcement. Charges in the three pending Broward cases were filed by Broward State Attorney Mike Satz based on investigations by the Hallandale Beach, Hollywood and Davie police departments. Robaina is working to get officials in Palm Beach County involved.
CAI, a national organization based in Alexandria, Va., made up of lawyers, managers, accountants and other professionals who run condo and homeowner associations, isn't alone in trying to help owners and boards. Some associations are doing it on their own. For example, at Townhouses at Jacaranda in Plantation, the board set up a security and ethics program to prevent even the perception of dishonesty, said owner Bryan Sklar.
Sklar suggests boards require two signatures on all checks, use different accounting and auditing companies, disallow credit or ATM cards on any accounts, use a defined sealed-bid process for purchasing, publish for owners the policies and procedures used to protect their money and treat the association as a business.
Q&A Q. Denise Weinstein had her Coral Springs house and garage door painted mocha with white trim. No, said her homeowner association. The garage door can't be the same color as the house and must be white, like the trim.
The board ordered Weinstein to repaint the garage door white or her clicker for the gate would be disabled and she wouldn't be allowed to continue teaching Pilates to friends in the clubhouse.
Weinstein said her association documents don't require garage doors to be the trim color, which means the board is enforcing a nonexisting rule. Since she isn't violating the bylaws, does the board have the right to punish her, she asks.
A. Jeff Rembaum, a West Palm Beach attorney who deals with condo and homeowner issues, said Weinstein's board is powerless to require the change if it hasn't adopted architectural guidelines. If it has, then the board can require the change. He also said all owners must be told about any new standards.
The threat to disable her clicker is meaningless, Rembaum said. The board can't impede an owner's right to enter or exit the community.
If the association has adopted architectural guidelines and owners don't comply, the board might have the power to keep her out of the clubhouse. But no fine or suspension of privileges can be imposed without the association meeting a host of requirements spelled out in the law, such as providing the alleged offender with a hearing in front of three owners who aren't directors.
Source : http://www.multifamilyexecutive.com/
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