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Court Decision Clarifies HOA Developer Reserve Funding Obligations (FL)

/ Owner - January 16, 2017

Last month, Florida’s Fifth District Court of Appeals issued yet another opinion in Mackenzie v. Centex Homes, by Centex Real Estate Corp., Case No. 5D16-1254 (Fla. 5th DCA, December 22, 2016) reinforcing that a developer is obligated to contribute money to an association’s statutory reserve accounts prior to turnover, even when the developer has chosen to deficit fund the association’s operating expenses in lieu of paying regular assessments. The case clarifies an ambiguity in the Homeowners Association Act and provides additional help for communities that may otherwise find themselves in financial turmoil when significant repairs are required to maintain private roads, drainage infrastructure, clubhouses, and other common amenities.    Read the article………..

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