Post by Admin on Nov 18, 2013 6:42:09 GMT -5
Here is a summary of the voting requirement to revitalize. This is being reposted because there is much MISinformation going around.
In short, revitalization is simply a resurrection of the dead document. Revitalization requires at least HALF of the homeowners to approve it. FIFTY+ PERCENT YES VOTE to Revitalize. Here is the law:
By contrast, a new Declaration of Covenants is an entirely NEW contract and as such, requires ONE HUNDRED PERCENT YES vote to become the brand new law.
Not only must 100% of the voting owners approve a brand new contract, so must any entity such as banks and finance companies which have any collateral or lien interest in the affected lot.
As a bonus (if you will), Florida requires that the revitalized Covenant contain an amendatory provision in cases where the original Declaration did not. That is the case with SLohA's original Declaration--it had NO provision to amend.
Florida also requires that the minimum voting threshold is 2/3! (This would be quite favorable to SLohA as the 1986 Amended Covenant provides for an almost-unattainable 3/4 voting threshold.)
So, if 50% of the owners say "Revitalize", SLohA will again have its original document AND have an Amendatory provision that requires only a 2/3 approval vote to amend--an improved and more realistic document that will cover all eligible lots (homesteaded lots exempted)! It can then proceed to amend the document to re-declare SLR as a manufactured home and RV park community in accordance with its current land use permitted by Polk County. It can also, at the same time, rewrite Rules that relate to "now" instead of for a 40 year old RV park.
Incidentally, it could also avoid YEARS of litigation and legal fees, questionable and unstable governing status, settle title problems for sellers and buyers, and achieve an improved and updated document in the process. On the downside, some lots are exempt and not every lot will choose to be re-encumbered by the revitalized Declaration.
In short, revitalization is simply a resurrection of the dead document. Revitalization requires at least HALF of the homeowners to approve it. FIFTY+ PERCENT YES VOTE to Revitalize. Here is the law:
720.405(6) A majority of the affected parcel owners must agree in writing to the revived declaration of covenants and governing documents of the homeowners’ association or approve the revived declaration and governing documents by a vote at a meeting of the affected parcel owners noticed and conducted in the manner prescribed by s. 720.306.
By contrast, a new Declaration of Covenants is an entirely NEW contract and as such, requires ONE HUNDRED PERCENT YES vote to become the brand new law.
Not only must 100% of the voting owners approve a brand new contract, so must any entity such as banks and finance companies which have any collateral or lien interest in the affected lot.
As a bonus (if you will), Florida requires that the revitalized Covenant contain an amendatory provision in cases where the original Declaration did not. That is the case with SLohA's original Declaration--it had NO provision to amend.
Florida also requires that the minimum voting threshold is 2/3! (This would be quite favorable to SLohA as the 1986 Amended Covenant provides for an almost-unattainable 3/4 voting threshold.)
720.405 (4)(c) if there were no amendment provisions in the previous governing document, amendment provisions that require approval of not less than two-thirds of the affected parcel owners
So, if 50% of the owners say "Revitalize", SLohA will again have its original document AND have an Amendatory provision that requires only a 2/3 approval vote to amend--an improved and more realistic document that will cover all eligible lots (homesteaded lots exempted)! It can then proceed to amend the document to re-declare SLR as a manufactured home and RV park community in accordance with its current land use permitted by Polk County. It can also, at the same time, rewrite Rules that relate to "now" instead of for a 40 year old RV park.
Incidentally, it could also avoid YEARS of litigation and legal fees, questionable and unstable governing status, settle title problems for sellers and buyers, and achieve an improved and updated document in the process. On the downside, some lots are exempt and not every lot will choose to be re-encumbered by the revitalized Declaration.