Thursday, September 24, 2009

HOA Tacking On $4,000 Fee To Sold Homes - News Story - WFTV Orlando

HOA Tacking On $4,000 Fee To Sold Homes - News Story - WFTV Orlando: "ORANGE COUNTY, Fla. -- An Orange County homeowners' association (HOA) is taking some drastic measures to make up its financial shortfall. The HOA at Stoneybrook East and West is tacking on a new $4,000 fee for foreclosed homes sold in the subdivision."
The stated rationale: "Jim Gustino represents Stoneybrook's HOA and he says there has always been a $1,000 fee, but they upped it $3,000 to recoup losses and get the bank's attention. "Try to spur the banks to complete foreclosures in a reasonable period of time. Properties neglected that are a blight to the community bring in families who pay dues," Gustino said."


Anonymous said...

So there is now a "transfer fee" on all the homes. However, the HOA discriminates between foreclosed and non-foreclosed properties by charging $1000 on non-foreclosed properties and $4000 on foreclosed properties?

This "transfer fee" has quickly become a cancer across the nation as industry-controlled HOAs seek ever newer ways of bilking homeowners out of money. Aside from the propriety of a "transfer fee" in the first place, the HOAs are now discriminating with respect to which members pay the transfer fee.

Anonymous said...

Transfer fees (aka Capital Improvement Fund Fee, Capital Enhancement Fund Fee and/or an association's "financial salvation fee"), with or without appreciation to creative and innovative association lawyers, started popping-up in Arizona in early 2007 and across the country.

Might reasonable persons agree these fees are in-fact taxes and, with respect to Stoneybrook East and West, a curious attempt at social engineering, "We just want good neighbors to move in, good people that are living and playing with our kids (Sara Au, Stoneybrook East)," by taxing "someone" at closing (sic)?

Who pays? The buyer is not subject to the association's governing documents until recordation of a deed. The seller has already paid dues (base assessments for operations, reserves and capital and/or special, neighborhood and/or benefitted assessments) to operate, maintain and enhance the association's common property.

"Transfer Fees, Capital Improvement Fund Fees and/or Capital Enhancement Fund Fees" are simply evidence of an association's failure to fund its capital needs from the date a capital asset is placed into service to the date the "fee/fund" is assessed to a purchaser (without any authority) buying a home in an association or assessed to seller in an association who has already paid dues to his/her association for years (1,3, 5, 10, 15, 20 or more) to operate, maintain and enhance the association's common lands (parks, landscaped open areas and other), streets, facilities (meeting room [s], guard gate [s], parking areas and other), amenities (recreational facilities: swimming pool [s], tennis court [s], golf course, fitness center, all-purpose building [s] and other) and/or other property shared in common ownership.

These "fees/funds/taxes" are little more than associations and their lawyer's efforts to bootstrap a solution on the backs of homeowners (current [sellers] and future [purchasers]) for the collective failure over time of the association, its boards of directors, management companies, law firms and other agents.

Anonymous said...

In addition to the $4000 fee they are assessing. The HOA is tacking on additional fees 72 hours prior to closing based on the past due balance of the previous owner. In the state of Florida it is illegal to go after the seller for interest on past due hoa fees so James Gustino is passing them on to the people who are purchasing the foreclosure properties.

Anonymous said...

You people who have posted comments against this type of policy either don't live in a neighborhood which has a good HOA that actually does its' job & works in the best interest of the community, or you have little knowledge of the current State HOA recovery laws. If you did have actual acurate knowledge you would be applauding the HOA attorneys for implementing this because without these fees on Foreclosed properties the members of the cummunity itself would be faced with footing the bill. These fees go to the HOA which is run by the homeowners of that community for the benefit of the community. I absolutely sympahtize with anyone who is told at the closing table or only a short time before that he or she now owes an additional $4,000.00, but when that happens the buyers agent is the one to blame for not knowing this up front not the HOA. The simple fact is this is being done in an attempt to collect past due fees on the neglected property so the homeowners who already live in the community don't have to pay additional fees. This is also the result of the law being changes approx. 1-1/2 years ago which dramatically limited an HOA ability to recoup past fees. You people must somehow believe that the fees the HOA collect go to somewhere other than the community. I would advise being somewhat educated on the subject before you jump to a conclusion which only shows your absolute ignorance. To all the HOA's who have implemented this policy I wish to commend you for doing your job. For all the individuals who purchased a foreclosed home & were not appropriately notified prior to closing, I would suggest going after the $4000.00 from your agent for his or her failure to find this info. which should have allowed you to re-negotiate the purchase price with the bank because the bank is really the entity who should be paying the fee but current law does not allow the HOA to collect it from the bank.

Evan McKenzie said...

The people who post here are for the most part very well informed concerning both the workings of their own associations and the public policy situation in their state and across the nation. That statement, "You people must somehow believe that the fees the HOA collect (sic) go to somewhere other than the community" is true. An enormous amount of those fees get shuffled off into the pockets of lawyers and property managers. Some of that goes for necessary activities. Some goes to pay making handicapped children use the back door, forcing people to tear down their kid's swing set or their political signs, or some other preposterous and antisocial enforcement action. Sometimes it goes to pay for elections that would shame a banana republic and quasi-judicial kangaroo courts. The ignorance would lie with anybody who claims to know what goes on in CID-land but doesn't know about the abuses of power that have led so many people to organize and try to change the situation.

Anonymous said...

I agree with the majority of the comments pertaining to the $4000 fee but you must also be aware of the fact that this HOA in florida is in the business of making money at any cost! They don't care if they push you into foreclosure and they don't care about the state laws either because there are none in florida that help homeowners in hoa communities. The worst decision of my life was buying a home in this community built to kill the american dream and make the rich board members richer! Fraud friendly florida thrives in Stoneybrook west and East.The guy who spoke about the state of current hoa laws is a liar and is insulting the intelligence of every homeowner in florida stuck in an hoa community.(about 80% of homes in FL)at last count. Also if the stupid hoa's in florida allowed home owners to rent to qualified screened tenants until they could move back in there property there would be no foreclosure problem and plenty of surplus funds for real community problems.

Anonymous said...

I live here, and know that this HOA LOVES fees.

If you are delinquent by $20, for more than 30 days, it will cost you:

• $25 late fee
• 18% interest, starting at original due date
• $50 re-activation fee per gate access bar code
• $50 re-activation fee per resident ID card
• $125 re-connect fee for TV and internet service
• Attorney’s fees
No guests are allowed during this time

That $20 would cost a typical family of four, with a two adults and two cars, at least $350 (plus interest and attorney’s fees).

If you're going to post something negative about this HOA, you better do it anonymously.

Welcome to Stoneybrook. Enjoy your stay.

Anonymous said...

I find some irony that the lawyer representing Stoneybrook East is also a member of the board.

Anonymous said...

I was seriously considering a home in Stoneybrook because it looked like such a nice community, but any community that thinks it is appropriate to keep delinquent members from receiving guests is not somewhere I will consider living. I think it is horrible what each family facing financial difficulty, embarrassment, and severe punitive fines is facing. I truly hope you can find a way to move on and out of Stoneybrook. I will be looking in the Winter Park area and I'll ask my husband to commute to the Lockheed location. It is not the 4K fee- it is the ill will of your HOA against previous homeowners.

Anonymous said...

Thank you anonymous for your considerate message regarding the homeowners in Stoneybrook. I am one of those delinquent homeowners, trying to become current since 2007. However with the fines, financial difficulty it has been hard. And no I cannot have guests nor friends to visit me. It is embarrassing, but one day I will be current. But no you don't want to move to Stoneybrook West. Please pray for me that I get out of this delinquent situation at Stoneybrook.


signed, still standing

Anonymous said...

glad to be an outsider.

I thought Fl law did not allow anyone to refuse you access to your home. If that is so, how is the HOA able to prevent you from having your children or others visit you in your home.

They are allowed to keep you a virtual prisoner in solitary confinement?

What if you need emergency help?
What if you need repairs to your home?

It is not to the HOA's advantage to have homes go into disrepair or items like this to be spread across the world via internet.