In the long list of homeowner association horror stories, the one emerging from the Hammocks Community Association in Miami's WestKendall suburbs is in a class by itself.
There are charges of racketeering, money-laundering, and faking evidence. The board threw out two-thirds of the ballots after a fake bomb threat prevented them from ousting the board. Apparently, $2 million in homeowners fees was taken away.
This isn't a fight over mailboxes. It is gangster style.
The homes that fall under the Hammocks Homeowners Association are not news to those who know about it. According to the Miami Herald, neighbors said they felt vindicated after prosecutors announced a number of charges. They had been fighting for a long time.
This is a tale of suburban greed going crazy if half of the allegations are true. The Miami-Dade State Attorney said in the press conference that the HOA was a criminal enterprise.
Four people were charged, including the former president. The homeowners association diverted money from hard-working families to themselves and their associates, according to a report. The arrest warrant states that board members are accused of stealing at least $2 million of their neighbors' maintenance fees by writing checks to fake companies. Financial abuse had been going on for a long time.
The judge appointed a receiver to work with the board until new elections can be held.
It's cold to steal from your neighbor. That wasn't the only thing that happened. In an even more brazen move, association leaders this year jacked up monthly maintenance fees by an incredible 400% without explanation, possibly because the association needed to pay for attorneys to defend board members against the homeowners who were suing them. That is for chutzpah.
The board hadn't met in public in 4 1/2 years, but still tried to block the investigation by filing a federal lawsuit against the State Attorney's Office. I wonder who is paying for that.
There is a huge group of people. Over 18,000 people live in 6,500 homes, townhouses and apartments in the suburbs. A lot of money came in and there was a lot of temptation.
It doesn't take a large group of people to misuse money. There are more instances of questionable expenses or theft occurring in smaller, less-prominent HOAs that have not gotten the attention of the Hammocks.
Home ownership can be supported by homeowners associations. The quality of life and property values are important to everyone. They are notorious for escalating disputes into pitched battles, such as fining homeowners for planting an unauthorized flower bed or parking their car in the wrong spot. They can become dictatorships if there aren't enough checks and balances. We've seen it in the hammocks.
Don Kearns, a leader of the Justice for the Hammocks coalition, told the Herald that it was time for the state to tighten up Florida Statute 720, which governs homeowner associations. He said that it was a Wild West free for all. There are unscrupulous characters running your community.
The current turmoil did not come as a surprise to the state House member representing the Hammocks, Juan CarlosPorras. He told the Editorial Board that he heard about the misuse of power, the abuse, the neglect, and the extortion.
He said he is working on legislation to tighten oversight of homeowners associations in Florida.
It should be given the wide range of allegations against the former leader.
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