Introduction to the Issue
TALLAHASSEE — It took 5,500 Florida homeowners several years to win a landmark class action lawsuit against their developer, who was making millions in profit each year by charging them “club fees” to use their neighborhood pool, clubhouse and other amenities.
Now, as the Legislature plays out the final week of its regular spring session, a half-dozen bills are in play that not only would allow developers to charge those mandatory fees but also would protect them against current and future lawsuits.
Background on the Lawsuit
An appeals court had ruled in June 2023 that the amenities fees were illegal and ordered their subdivision’s developer, Avatar Properties, to pay back Solivita homeowners the $63 million Avatar collected over the past two decades.
The 6th District Court of Appeals said that under Florida law governing homeowners associations, developers may not charge more than routine maintenance and operational costs for such amenities.
The judgment against Avatar, a subsidiary of Taylor Morrison Homes, came out to about $10,000 per household. Taylor Morrison has a market capitalization of $5.6 billion, making it one of the most profitable homebuilders in Florida.
Reaction from Homeowners
“Residents are up in arms about this,” said Lita Epstein, vice president of the Solivita Homeowners Association, a 55-plus gated community on the Osceola-Polk County border in Central Florida, which spent seven years fighting a financial burden that allowed their developer to make millions off them.
Yet the developer is still charging fees, homeowners say, that are in violation of a court injunction, and the association has filed a motion of contempt.
Ever since the ruling, lobbyists for the state’s largest developers began working with lawmakers to change the law itself, leaving Solivita residents afraid Avatar will start charging even more.
The Proposed Bills
In the meantime, developers are pitching their argument to a body that may be more receptive than the courts: The Florida Legislature.
Lennar Homes, a Fortune 500 company and the state’s largest residential developer with $28 billion in market capitalization and over $33 million a year in sales, immediately fired up its team of lobbyists to rewrite the law in its favor and make the changes retroactive to as early as October 2023.
Not only that, Lennar continues to charge fees to Championsgate homeowners in western Osceola County despite the 6th Circuit’s ruling, even though it is being sued over the practice.
Details of the Bills
Emails obtained by Seeking Rents, an online media outlet, and shared with the Orlando Sentinel show Lennar’s lobbyists emailing proposed bill language to legislative staffers to amend the state’s Homeowners Association Act, allowing developers to charge unlimited “club fees” or “membership fees” that they alone would control.
Of the multiple bills addressing the issue, the one that appears to be closest to the finish line is HB 579, sponsored by Rep. Toby Overdorf, R-Palm City, which was on the House schedule for a floor vote Tuesday.
It would carve out an exemption for amenity fees from the profit-making prohibition on homeowners associations.
It also would allow developments that had imposed mandatory amenities fees prior to Oct. 1, 2025, to keep those fees in effect as long as they met the conditions in the new law.
Criticism of the Bills
But Lisa McGill, a lawyer for a statewide association that represents community association members, has expressed reservations about the bill.
McGill said the Community Associations Institute-Florida Legislative Alliance “is not in favor of fees that are not for the purpose of maintenance, repair, replacement, use or care of the amenities that accompany home ownership within the community.”
“Developers could use the Florida homeowners association act to create developer-owned, for-profit amenities clubs to flow millions of dollars in perpetual profits to the developer — forever,” said Carter Andersen, one of the lawyers who represented the Solivita homeowners and is suing Lennar on behalf of Championsgate homeowners.
Conclusion
The proposed bills have sparked controversy and concern among homeowners, who fear that they will be forced to pay exorbitant fees to use amenities that they already pay for through their homeowners association dues.
The issue highlights the ongoing struggle between developers and homeowners in Florida, with developers seeking to maximize their profits and homeowners fighting to protect their rights and interests.
As the legislative session comes to a close, it remains to be seen whether the bills will pass and what impact they will have on homeowners across the state.
FAQs
Q: What are the proposed bills about?
A: The proposed bills would allow developers to charge mandatory “club fees” or “membership fees” to homeowners for the use of amenities such as pools, clubhouses, and tennis courts.
Q: Why are homeowners opposed to the bills?
A: Homeowners are opposed to the bills because they fear that they will be forced to pay exorbitant fees to use amenities that they already pay for through their homeowners association dues.
Q: What is the current law regarding homeowners association fees?
A: Under current law, developers may not charge more than routine maintenance and operational costs for amenities.
Q: How much did the developer, Avatar Properties, have to pay back to Solivita homeowners?
A: Avatar Properties had to pay back $63 million to Solivita homeowners.
Q: What is the status of the bills?
A: The bills are currently being considered by the Florida Legislature, with one bill, HB 579, scheduled for a floor vote.
