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Association Developments
1999 a service provided
by Clayton & McCulloh CAN YOU BECOME A GATED
COMMUNITY?
Restricting non-owner vehicular traffic into to
residential developments has become increasingly
popular in recent years. Limiting access to a
development can help decrease crime, discourage
unwanted solicitors, and generally, increase property
values. In some areas, associations are even discovering
that unless they are a gated community, the resale values
of their homes do not keep up with the values of
neighboring developments. If your association has public
roads and is considering constructing a gate across its
entranceway, you should thoroughly consider both the
practical and legal difficulties you can expect to encounter.
There are several steps an association should undertake
prior to gating their community. The first step is for your
Declaration of Covenants or Declaration of Condominium,
Articles of Incorporation, Bylaws, and Rules and
Regulations (the "governing documents") to be reviewed
for provisions dealing with the authority of the association
to make improvements to common property. If in that
review it is determined that the roads in your community
are private, then you will be dealing with the association's
authority to make these common area improvements and
alterations. See Gated, pg 2
COVENANT ENFORCEMENT FOR
THE NEW MILLENNIUM
LEAD TOPIC FOR THE 2000 COMMUNITY
ASSOCIATION SEMINARS ANNOUNCED
Ever wondered what the new covenant issues will be
for the new millennium? What order should
amendments to your governing documents should
be created? Can your association allow fishing or boating
on the retention ponds? If you want the answers to these
questions (and a whole lot more), make your reservation
now for our 2000 Community Association Law
Seminars. It's completely free! You can save your
Association up to $950.00 by attending these seminars and
obtaining valuable legal advice for free! Plus, get a
complimentary continental breakfast. This year we are
featuring the following topics: Covenant Enforcement for the New Millennium Amend Your Documents or Perish! Drainage Systems: The Lurking Nightmare
These subjects are three of the five programs most
requested by community associations. This program
features three hours jammed packed with practical ideas and legal advice for your association. See 2000, pg 3
Volume XVIII Page Two Clayton & McCulloh A REVIEW OF YOUR DOCUMENTS IS AN ABSOLUTE NECESSARY STEP Gated (from pg 1) On the other hand, if your roads are determined to be public, there's nothing that can obstruct use of the roads except with the consent of your applicable government body. Generally, this authority will not be granted so long as the roads remain public, converting public roads within a subdivision from public to private gated ownership, maintenance and use is a major undertaking and has only recently been permitted by a few government entities. First, the city or county which owns the roads must agree to abandon their interest and vacate the road right of way in favor of the respective owners fronting on the road. Since this only puts title into the names of the various individual owners to the middle of the road for extent of the owners' road frontage, this vacation of the road obviously is not a complete solution to the problem. The balance of the issue of gaining association ownership and control requires each and every lot owner and all lien holders and mortgagees to execute and record appropriate documentation and make the transfer into the association. All association members and their mortgagees will have to join in consent to an appropriate amendment to the association documents to allow the roads to be received as common property of the association. At this point, in whether the roads were initially public or private, they are now private and are owned as common property of the association. It is at this stage that the association must have its documents further amended with the founder and consent of its Members and Mortgagees, to provide that the entranceway to the community may be gated or otherwise restricted. To accomplish such action, the association will need to have legal right of entry by ownership or easement to construct and install the gate at the entranceway. In conjunction with securing association approval and authorization to be authorized to gate the community, there will also be stringent requirements which the relevant city or county will impose before the roads will be allowed to be privatized and particularly, before any entranceway gates will be permitted after the authority of the association has been established, the public's rights in the road must be extinguished or "vacated." This process is relatively complicated and a full explanation of it is beyond the scope of this article. Basically, the city or county where the development is located must pass a resolution which vacates the rights of the public in the road. Unfortunately, the city or county may condition its passage of the above-described resolution on the association agreeing to transfer part of the common property it already owns to the city or county. The association's counsel should examine the governing documents and confirm that the association can take this action and should also advise the association of the proper procedure. If the governing documents do not allow the association to transfer common property to a public entity, the appropriate documents must be amended to make such an act by the association permissible. The ownership rights of the owners of the lots/units directly adjacent to the road must also be eliminated. Under Florida law, vacating of a public road by a city or municipality generally vests title to the road in the adjacent lot/unit owners. Consequently, the adjacent lots/units' owners must convey their interests in the vacated road to the association after the city or county has passed a resolution vacating the rights of the public. Of course, it may be difficult and time-consuming to get all of the adjacent lot/unit owners to cooperate. When title to the road has been conveyed to the association, the city or County Building Department must be contacted and the proper building permits must be obtained. There can be numerous complications and delays associated with this process. It is also very important to select a contractor who has experience in this area and who is willing to provide a great deal of assistance in dealing with the governmental authorities involved in the construction process. Your attorney should also be consulted whenever legal issues arise. see Gated, pg 3
Volume XVIII Page Three Clayton & McCulloh Gated (from pg 2) Resolution of the above-described legal and quasi-legal issues is only part of the solution; financial and practical problems must also be resolved. Unless a sufficient amount of money is being held in reserve, a special assessment must be levied to provide the funds necessary for the proposed construction. The procedures articulated in the governing documents for special assessments must be strictly adhered to. The kind of security system and the costs involved must also be carefully considered. The association may want to have a security guard on duty twenty-four hours a day, seven days a week, but this option may not be available because of the expense involved. Conversely, a system that involves access through the use of a card, speaker or code also has its disadvantages: this kind of system is less expensive than employing a full-time security guard, but probably not as secure. It may be necessary for the Board to appoint a committee which investigates the available options and makes a full report and recommendation to the board before the decision is made to go ahead with the project. For many associations, this process is intimidating and discouraging and in all cases the process is tedious, complicated and expensive. Nevertheless, with the demand by consumers for gated communities, many associations are choosing to proceed with the "gating process." If you would like more information on gating your community, please consult your association's attorney.
DO YOU HAVE TO
AMEND YOUR DOCS
EACH TIME THE
LAW CHANGES?
The dates are as follows: Saturday, January 29, Daytona Beach, Adam's Mark Resort Saturday, February 5, Melbourne, Hilton Rialto at the Airport Saturday, March 11, Orlando, Church Street Station
Registration begins at 8:30 a.m. The program begins at 9:20 a.m. and ends at 12:30 a.m. A complimentary continental breakfast is served. Our attorneys and Director of Client Services will be available to answer any individual questions before and after the seminar and during the break. There will also be time allowed during the program for questions and answers. If you are too shy to ask your questions during the seminar, you may submit written questions in advance. And because you are a client of Clayton & McCulloh,
we've added some special perks available just for our
clients and their managers. These perks will not be
available to other attendees.
see 2000, pg 4
Volume XVIII Page Four Clayton & McCulloh FREE GIFT FOR CLIENTS & MANAGERS 2000 (from pg 3)
further just for our clients and their managers!
Starting this year, these is a special register for
the seminar. The special program and gift will
be available on at the C&M Express Line.
The seminar flyers will be mailed approximately four weeks prior to each seminar. Please see the adjacent feature box for the approximate mailing dates to the location nearest you. Due to the hotels, seating will be very limited in the Daytona Beach and Melbourne areas. We encourage you to make your reservations as soon as possible. If you have never attended one of our seminars, you are missing a rare opportunity to obtain free legal advice presented in an entertaining and educational manner. Don't wait! Register now! Call any of our offices to reserve your seat for these popular seminars.
Special Note: In our last Association Developments (3RD Quarter 1999), we printed a web site for our clients to check for information on their corporate status. After the article was drafted, the State of Florida changed their web site address. You can reach this valuable web site by using one of the two following pathways: "www.dos.state.fl.us" or "www.sunbiz.org." Either pathway will get you there! We apologize for the error. We were advised by the State that they frequently change their web site pathway, but the above two pathways should be used from now on.
The Clayton & McCulloh Building 1065 Maitland Center Commons Blvd. Maitland, FL 32751
REGISTER NOW FOR OUR 2000 COMMUNITY ASSOCIATION LAW SEMINAR
Program Highlights
(See 1st page of newsletter for more information on these seminars)
For the "Covenant Enforcement for the New Millennium" section of the program:
What happens when someone builds the wrong type of home? Can an owner be forced to substantially demolish a home to meet with the architectural criteria? Learn if Associations can prohibit alterations permitted by counties, cities, etc., - especially if a building permit has been issued. What role does the Architectural Review Board play in relation to the Board? Can the Board over-rule the ARB's decisions? Can the Architectural Review Board over-rule the Board's decision pertaining to covenant matters? Is it mandatory for an Architectural Review Board to post notice and keep minutes? How do you start a covenant action against an owner? How do you get reimbursed for attorneys' fees? What happens when you lose? For the "Amend Your Documents or Perish" section of the program
For the "Drainage Systems - The Lurking Nightmare" section of the program:
All this and much, much more! Saturday, January 29, Daytona Beach, Adam's Mark Resort Saturday, February 5, Melbourne, Hilton Inn Rialto at the Melbourne Airport Saturday, March 11, Orlando, Church Street Station
8:30 a.m. - 9:20 a.m. - Registration, Meet our attorneys and Director of Client Relations and ask individual questions. 9:20 a.m. to 12:30 p.m. - Program. 12:30 p.m. - End of Program Our attorneys and Director of Client Relations will remain behind to answer any individual questions that were not answered during the seminar. The Clayton & McCulloh Building 1065 Maitland Center Commons Blvd. Maitland, FL 32751
© 2000 Copyright Clayton & McCulloh
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