Yay! Someone with some firsthand knowledge. So how is it worded in your purchase contract as far as the land and what happens to the owner of the unit if the building is condemned, or as in this case, no longer exists? My comment about the land was coming from the standpoint that I did not believe an individual owner could transact a sale of any portion of the land on their own. Since you say it’s owned by your community, that would appear to tie in with the judge saying the proceeds would be divided up among the owners or their estates. Do you need a certain number of people to agree to the sale? Articles I have read about the collapsed condo have mentioned that several of the board members quit approximately two years ago, implying it was due to dissention regarding the special assessments for the repairs. Do you typically need a certain number of people on the board in order for decisions to be made? Is this why a judge might have to step in? I find the logistics very interesting since I have never been the owner in a communal property development (condo, townhouse, etc.). I tried Google, but couldn’t find a clear answer for a situation like this. Any clarity you can provide as to how it all works would be appreciated. Thanks!
I can only answer the questions I know about our community/HOA/state laws.
That said I live in a TH not a condo HOA but here where I live the State laws are the same for each type of community; here they are called a Common Interest Community (CIC). Each State has their own CIC laws but in my experience, being on the BOD, most of these state laws are very common with other states. BOD often leverage other state laws to assist in the running or getting laws changed.
HOA's are obligated by State laws, CIC bylaws and Community specific rules & regulations; they are all legal documents.
Each TH here is on a lot that is sold with the TH.
I do not know about what would happen if the whole community was destroyed and only the land was left; though our community bylaws etc. do say that the community/HOA is responsible for the buildings and the land (called common elements in our bylaws) and therefore own the land even if their are no buildings on it.
Our elected BOD must have a Quorum, which is defined in our bylaws, to make decisions and vote on maintenance issues. I think the press does not know what they are talking about when they call the BOD insufficient or non-existent. (Classic media, reporting without know the truth...sorry) If people resign from the BOD often others can be appointed by the BOD to fill that position until that term is up; this expedites or supports the HO community to have a voice.
Any issues/problems of major spending must be approved of by the HO by vote; in ours major spending is not just a BOD decision. Major is also defined. There has been a new State law that stipulates that the BOD is obligated to keep the property up to inspection standards. It seems to override any vote by the community if things are emergent. So a separate 'assessment' can be done. We have not had any of those yet so when things are 'backed up against a wall' I imagine it is difficult and then the BOD gets blamed. JMHO.
If the major assessment is not voted in, the BOD can increase dues by a certain percent and spend the money on 'emergent' issues.
I do not know why there is a judge stepping in but I can speculate and understand why; lots of lives lost, lost of $$$ involved, underlying issues with the community itself, insurance and government regulations and laws/issues.
I am glad to see this, as this is horrific and people are very stressed about every aspect of it. Someone needs to get a handle and organized on how things can or should be moving forward.
Hopefully the judge will look at all of the aspects and decide to help and look-out for the good of the HO.
Again this is ONLY my situation and not the situation in FL.
Hope this helps somewhat.