Many communities throughout Florida have been developed with multiple levels of associations. In these instances, the home within the community is typically subject to provisions of the governing documents for each of the associations. Often, the documents of an association that operates and manages property that is common to several other communities (a “Master Association”) provide that the “Member” of the Master Association is the association that operates one of the subdivisions within the community (a “Sub-Association”). When documents are written in such a manner, questions arise as to the rights and obligations of the individual homeowners relative to the Master Association, such as entitlement to attend meetings of the board of directors and undertake record inspections. In a recent decision of the Florida Fifth District Court of Appeal, the Court decided that if the homeowner is obligated to pay assessments for the benefit of the Master Association, that homeowner is a “Member” of the Master Association, with all such entitlements.
In the case of Rosenberg v. Metrowest Master Association, Inc., et al., Case No. 5D12-4062, July 5, 2013, the homeowner had filed a law suit against the Master Association, which resulted in a ruling for the Master Association at the trial court level. Thereafter, the Master Association requested prevailing party attorney’s fees, which were granted. The homeowner appealed that decision, claiming that he did not qualify as a Member of the Master Association and, as a result, would not be subject to prevailing party attorney’s fees under the Statute. The argument was based on the provision of the governing documents for the Master Association which identified the Sub-Association as the Member.
In affirming the decision of the trial court, the Appellate Court disagreed with the homeowner, indicating that the definition of “member” in Section 720.301(10) of Florida Statutes is the operative provision in determining the status of an individual homeowner. Under the Statute, a “member” includes “any person or entity obligated by the governing documents to pay an assessment or amenity fee.” The homeowner pointed out to the Court that his assessments are paid to the Sub-Association and not to the Master and, as a result, he did not meet the Statutory definition. The Appellate Court decided that it does not matter whether or not the assessments are required by the documents to be paid directly to the Master Association, so long as each homeowner is ultimately obligated to pay a proportionate share to the Master Association, which may be paid through the Sub-Association.
Based upon this ruling, a master homeowner association is required to recognize membership rights of homeowners within the community that might not otherwise have been available to the homeowner due to the manner in which the governing documents are drafted including, but not limited to the entitlement to attend and speak at a Master Association board meeting and undertake inspections of the Official Records of the Master Association. This requirement applies regardless of when the master association documents were first recorded against the property, even if they pre-date the initial adoption of Chapter 720 F.S.