ENFORCING CODES
or just a 
LOOSE CANNON?

 
 

    THE NEWEST TWIST IN THIS STORY !

Short report of this mornings (3-4-2000) "SPL" Boardmeeting.
The meeting was called to order shortly after 11 a.m. by Billy Sanchez. Present: Billy Sanchez, Earl Kratzer, Lori Held and Jan Bergemann. Robert T.Held obviously couldn't make it! The Meeting was very informal. No official printed invitation or agenda, no approval of the minutes of the last Board-Meeting! 
Kathy Sanchez presented the so-called 7.Amendment to the Deed-Restriction in the name of the declarant Darcy Partnership, which means a change of our Deed-Restrictions 4.03 as follows:

NOW, THEREFORE, the Declarant hereby amends the Declaration as follows:
I. Article II, Section 4.03 is hereby amended as follows:

4.03 No sign of any kind shall be displayed on any Lot, except one plate bearing the owner's name and number of residence and up to two signs advertising that the premises are protected by a
                            security-system. Specifications and approval as to 
                            the size, location, design, and type of material of 
                            each such residence plate and security sign shall 
                            be at the sole discretion of the Committee.
3.   In all other respects, the Declaration remains unmodified and in full force and effect.
4    Capitalized terms not defined in this amendment shall have the meanings set forth in the Declaration.

According to Earl, a discussion about this change was not allowed - "not on the agenda!". This amendment clearly changes the "No signs" policy of Oakbrook, and doesn't solve the problem of the "For Sale" signs. My opinion: if you already change an existing section of the deed-restrictions, than bring the whole section up to par. The vote on the motion ended 3:1 as expected!
It was interesting to see that Earl Kratzer, who is personally involved in this argument, voted "YES", having his own security-sign in his front-yard. Meaning: I got what I wanted, who cares about the others! 
Even our politicians in Washington, who are definitely not famous for their ethics, abstain from voting, if they have a personal interest in an issue.
But - What's new?
The meeting was postponed at 11.12 a.m.
Because they were not willing to discuss the still open issues about signs, I have to take my complaints to other places in order to get answers. If the other members of the Board are unwilling to discuss problems in open Board-Meetings, I don't think that they can complain in the future it being my fault, if discussions are taking place in other places than the Clubhouse.

P.S.: The whole issue about changing amendment leaves me definitely confused. First we were told by Bob Held (Darcy Partnership), that he as the declarant can change amendments without anybody's approval. Now, it's the Board which has to approve the amendments, the developer wants to push down our throat. Florida Statutes 617.306 Section 1 clearly calls for a membership-vote to change amendments.
Our Oakbrook Deed-Restrictions state:
. No modifications, amendments or additions will be made to the restrictions without the prior written approval of the Association.(Article 7 Section 1.01).
The legal definition of the word "Association" is membership, not Board or anything else!
Then it would have to read: "written approval of the Board of the Association!" 
It sure does not!


 
           Our Association-Funds got Lucky!
Last week all our members, who are concerned about our Association-funds, could relax 
a little again. The threat of a very expensive law-suit, which some "members" of our community were willing to risk, went away. But not by ways of reason or common sense, but plainly by luck! The Schemenauers, who waited nearly 2 years for a buyer, suddenly found one on very short notice. The deal closed last week! That elimates for the time 
being the threat of a law-suit, which could have turned out very expensive for our Association-funds.
That particular case is gone, but only until next time, when homeowners feel, they had enough of this dictatorship and are willing to call the bluff (meaning amendments not necessarily backed by Florida Statutes) of a few people in our community. As long as the developer-ruled Board is not willing to start doing things by the book, this threat will continue! Let's just hope, it's not in the near future!
If you haven't read the connected story yet, please do so!

 
For the 3rd. time in about 1 1/2 years an Oakbrook Home-Owner is targeted for a so-called violation of the deed-restrictions.  Since 2 years these homeowners are trying to sell their home here in Oakbrook. First with the help of Realtors, now on their own. One of the big problems with trying to sell their house is the overland-wire, which suddenly popped up behind their back-yard. According to the realtor at one time involved in the sale, and experience with potential customers, these wires are a major handicap.
Nevertheless, the developer-ruled Board of the Association is now trying for the 3rd. time to have them remove the "For Sale" sign in their front-yard.
It all started in summer of 98 when letters were received from the Association attorney, Katherine Jones, to remove the "For Sale" sign.  In the end they were informed by their attorney that the association attorney withdrew the violation-complaint.
Already at that time it was suggested that the association should purchase a certain amount of  "For Sale" signs, which homeowners, who intend to sell their houses, could borrow for that purpose in order to have uniformed signs in Oakbrook. This is the way it's done in a lot of other associations.
In December of 99 they received another letter from the Code-Enforcement Committee (see below) . As you can imagine they were very upset about receiving this letter. Because they are now living in North Carolina I was asked to represent them at the meeting. In order to prepare for this meeting I mailed a letter (see below) to each of the 5 Code Enforcement Committee members. I attended the meeting of the Code Enforcement Committee on 12-21-99. The case of my satellite-dish was in the meanwhile resolved in my favor. Despite the fact that I had advised the association attorney about the federal laws governing satellite dishes from Day ONE, it had taken about 9 month and an undisclosed amount of association funds to solve this problem. This was by the way the second time that I was harassed by the developer-ruled Board with unfounded violations at the expense of the home-owners.
Could it be, because I'm the President of the OHG?
At the meeting, representimg the homeowners, I had a very good conversation with the members of the Committee. My understanding was that they would get more detailed legal advice before any further steps would be taken and I would be informed about the results.
The Committee followed up on this, because Stephen Faustini from Upchurch, Bailey & Upchurch wrote a letter to Billy Sanchez, addressing the problem of prosecuting sign-violations (see below). This letter, according to members of the legal profession, more or less warns the association not to take any further steps regarding the signs, because of a very doubtful outcome of any possible court-case. To my knowledge there are some more problems, which the attorney didn't address in his letter. Anyway, any further prosecution of this case could be very costly to the association and is, according to this letter, not really recommended.
But this didn't stop one of the members of the Board to write another letter to the homeowners, starting again at step 1. As you can see below, this letter came from Earl Kratzer, not from the Code Enforcement Committee. At the Public Boardmeeting, on 2-5-2000, he admitted that he read the attorney's letter, before writing his letter.
I complained by e-mail to George Nagy and Cassandra Meyers about this letter, because it definitely was not what we agreed upon at the committee-hearing in December.
This leaves the following questions:
Why did Earl Kratzer write the letter and not the Code Enforcement Comittee?
Are they all willing to risk a long-lasting, very expensive law-suit, when the association attorney already tried to dissuade them, stating a very doubtful outcome?
Is it worth risking the paying home-owners money for a "For Sale" sign?
The legal cost for this issue up to now would have already paid for uniformed "For Sale" signs.
The homeowners did everything they could in order to resolve this matter from paying for an attorney to trying to resolve the problem by discussion.
Their patience in this matter is starting to run very short and a harassment-suit is being considered. They - and a lot of other people - feel  that they should have the right to advertise their home with a "For Sale" sign in their frontyard.

Earl Kratzer seems to be taking it upon himself  to involve the association in a very high-risk expensive law-suit. His front-yard is featuring one of the security-company signs mentioned by the association's attorney in his letter, as you can see yourself.
Did he write himself one of these violation-letters?
In Germany there is a saying, which I think fits perfectly for this situation (translation): Clean up your own house, before you accuse other people of being untidy!
Or is he just a loose cannon, who is willing to waste the association-funds for useless gain? When he was serving on the Board of the OHG, the other board-members and the OHG-attorney had a hard time preventing him from writing a letter of complaint directly to the court-appointed mediator, which would have endangered the whole law-suit. 

As a Director of the Board, appointed by the developer, he has the fiduciary duty to the members of the Association to protect their welfare and money. 
I personally don't see my money spend wisely by risking a possible very expensive law-suit for a "For Sale" sign, especially if this problem could easily be resolved in a nice, inexpensive way, which as well would help other home-owners, who for any reason want to sell their homes one day.
Because we're talking here about your - the due-paying homeowners - money  I would like to get your answers to the following questions:
1.) Do you think that the OPA should risk an expensive law-suit under the described circumstances (considering the association-attorneys comments) ?
2.)Should the issue be solved by purchasing uniformed "For Sale" signs?
3.) Should the Association work out all the legal flaws in their paperwork, before risking any expensive law-suits?
Please e-mail your answers to janberg@aug.com , with possible comments,
so I know how the community feels about this issue and I can act accordingly?
Thank you for your interest !
Jan Bergemann


 
The Public Board-Meeting on Saturday, 2-5-2000, added a new funny twist to this story. The Directors of the Board now want to pass an amendment, which allows "small, tasteful security-signs". This is definitely not changing the facts of the above stated facts. It just shows to me that they are trying to change existing deed-restrictions for their personal gain.
A sign is a sign! Ask yourself the question, why the developer is so determined to go after "For Sale" signs. May be you can come up with an interesting answer?

         Here you'll find the scanned versions of all the letters mentioned above sorted by date!
 
 

Scanned Version - Text unchanged!

Date: 12-6-99_____________________

Homeowner:Joseph & Marianne Schemenauer Address:P.O. Box 2022, Washington,N.C. 27887 Lot: 217

3324 Cedar Glen Way St.Augustine, Fl. 32086

Type of Violation: Sign - For sale by Owner- deed restriction 4.03

As an Oakbrook Deed Restricted Community Homeowner you should be well aware of the conditions we must live within. Therefore, since you choose not to correct your violation after having been notified, this Code Enforcement Committee must send this final single notice to you. The Committee will allow 14 days for you to correct the violations, or for the appeal. After that time a fine will be imposed according to the Fifth Amendment of the Covenants. If unpaid this fine could result in a lien against your property and would therefore, be recorded as such with the county. 
As an Oakbrook Homeowner you will also lose the privilege of the use of the Clubhouse for a period of time. 
The Code Enforcement Committee hopes that you use this 14 day period wisely to address this situation. 
The Code Enforcement Committee meets on the third Tuesday of the month at 6 p.m. for appeals, at the Clubhouse. If you have difficulty with this, please call a Code Enforcement Committee member. 

The Code Enforcement Committee
Barbara Castellano 
George Nagy 
Cassandra Meyers 
Robert McGee 
Lenore Straus 

Oakbrook Homeowners Association 
3270 Kings Road South 

St. Augustine, Florida 32086


 
 
 
This is the text of the letter, I mailed to every one of the 5 Committee-Members on 12-9-99:

Dear Committee-Member
I don't want to tell you how to run your committee or what you want to enforce.
I just would like to give you some food for thought in order to prevent any unreasonable expenses for the Association by the actions of the Committee.

1.) You can not only go strictly by the deed-restrictions, because State- and Federal-Law override these (Ethnic Satellite Dishes, For sale Signs etc.). Make sure that this is not the case, before you send out your Violation-Letters.

2.)The amendments, your letters are based on, are, to say the least, very shaky, because they are not membership-approved. Minimum some of the violations have taken place, before these amendments were even enacted (legal or not!).

3.)Before you write these letters, you should make sure, that not the same cases have already been acted upon by association-attorneys and have been dropped because of lack of legalities. Please check the existing attorney correspondence. It could be considered harassment.

As you all know there have been high legal costs to the Association (estimated at about $ 10.000.00) in the past for trying to prosecute so-called violations. To my knowledge all ended in favor of the home-owners or have been dropped, before they went to court. Even in these cases the association was stuck with their own legal expenses. There have even recently been cases, where the judges issued verdicts, where Directors and Committee-Members were charged with the legal cost, because of obvious violations of their duty and Florida Statutes.

We all moved and invested here to live in a nice neighborhood. I personally don't think that anyone here purposely wants to violate any restrictions, which causes any grievances for the neighbors.

Your committee has taken on a very critical task, which could be very expensive to the association, if not handled right. Do not act upon information given to you by people, who in the end are not paying for the cost of possible law-suits. It's the paying home-owners, who will be stuck with them.

Suggestions to prevent problems like this have been made, but have never been acted upon by the Board.

I hereby repeat these suggestions to you:

Ethnic Satellite-Dishes: Part of ADC! Make permit necessary for placement (Federal Law prohibits the total disallowance). Have whoever wants to place one on his/her lot ask the ADC, where he/she can place it. The Satellite-Dish companies will furnish a lot-plan with suggested and possible locations, which don't interfere with the reception. The ADC can then decide, which location they'll prefer. 

"For Sale" Signs : Same thing. The ADC can decide size and look of sign and placement (in reasonable location). This is the way it's handled in lots of other deed-restricted communities with great success and the people would definitely then be willing to follow the rules. 

Note: I know that Joe + Marianne Schemenauer received a violation-letter. This is as well a case, which was long and far discussed by attorneys (at the time together with Jim Holland). It was finally dropped by the association attorney. If the above suggestions would come into place, this problem would as well be immediately solved without any further cost to Association. You will anyway have a hard time to enforce sign-regulations, as long as the Avalon-signs, which clearly are against the deed-restrictions (f.ex.7.01 and use of common areas etc.) are in place. There is one straight rule: either it counts for all or nobody! 

Amendments: See December Newsletter: Open Letter to Directors of Board. 

These are just suggestions, which I feel would solve a lot of problems before they really start. I don't think we need any more expensive legal cases. The money could be brought to much better use for the community. Before this committee gets the Association involved in anything, proper research should be done.
With best regards
Jan Bergemann
 


 
 
 
Scanned Version - Text unchanged

LETTERHEAD Upchurch, Bailey & Upchurch
VIA FACSIMILE

797-5361 and 794-4427 January 3, 2000

Mr. Billy J. Sanchez
Oakbrook Property Owners' Association, Inc.
3290 Kings Road South
St. Augustine, Florida 32086

Re: Oakbrook Property Owners' Association 
Our File No.4-96-238

Dear Billy:

This letter is a follow up to my correspondence to you
dated December 21, 1999. As I wrote previously, I am aware 
of no binding precedent which would prohibit the Association
from enforcing the "no sign" restriction. As with all restrictions, 
the "no sign" restriction cannot be enforced in a manner that is
unreasonable or arbitrary. If the matter went to court, whether
the restriction can be enforced depends in large part on whether 
owners have a reasonable alternative for advertising their lots,
and whether the restriction has been uniformly enforced. If those
conditions do not apply, then owners may have a legitimate basis
for challenging the restriction.

Also, we advised you some time ago that owners are evidently
being permitted to maintain signs provided by home security
companies. This is an example of non-uniform enforcement of the 
"no-sign" restriction that should be remedied by an amendment
to the Declaration.

A specific issue has arisen regarding two Avalon signs posted
in the community. One of the signs is apparently near the entrance
and the other is near a model home. 
Article II, Section 4.14 of the Declaration provides that:
Nothing contained in these covenants and restrictions shall prevent
the Declarant, or any person designated by the Declarant, from erecting
or maintaining such commercial and display signs... as the Declarant
may deem advisable for development purposes for Wellington
Oaks. [Emphasis added]. Keep in mind, however, that the sign
restriction at Article II, Section 4.03, applies only to lots. While
the Association, as the beneficial owner of the common property
could allow Avalon to put signs on that property, lot owners could
contend that they too should be entitled to place signs on common
property. As such, I do not recommend that any signs be permitted
on common property, including the Avalon signs.

Please let me know if you have any questions or if  I can be
of further assistance.

Sincerely yours,
    (signed)
Stephen A. Faustini 

SAF/jgs


 
 
 
Scanned version - Text unchanged!
January, 18th., 2000

Mr. & Mrs. Joseph Schemenauer
P.O. Box 2022
Washington, N. C., 27889

Subject: For Sale by Owner Sign

Dear Mr. & Mrs. Schemenauer,

The Code Enforcement Committee has advised me of the information gathered regarding the "For Sale by Owner" sign on your property at 3324 Cedar Glen Way, St. Augustine, Fl. 32086. The committee has been advised that the "For Sale By Owner" sign be removed. We are, therefore, sending you this notice and will allow you 30 days from the date of this letter to remove the sign before a fine of $25.00 a day will be imposed. This fine could total as much as $1000, according to the Florida Statues. This committee understands that you are not living at this residence, and as such, are giving you a reasonable amount of time to assign the task of removing the sign.

We hope that this resolves this matter. If you should have any further need to contact us for any reason, please send your concerns to The Code Enforcement Committee, at 3290 Kings Rd. South, St. Augustine, Fl., 32086.
Thank you for your attention to this matter.
Regards
(signed) 
Earl Kratzer
Earl Kratzer, V.P. Board of Directors of the Oakbrook Property Owner's Association, & The Code Enforcement Committee
cc: Richard Waler


 

RE : Letter "For sale" sign
Date: Mon, 24 Jan 2000 
I received this letter from Joe Schemenauer today.
This is not what we agreed upon at the meeting of the Code-Enforcement
Committee in December, when I appeared for the Schemenauer's regarding
the last letter. Before we take any further steps regarding this matter I
would like to get an official statement from the committee.
I was under the impression that you would seek further legal advice and
inform us about the outcome, before any further official letters would be
sent. This letter definitely totally undermines the authority of the Code
Enforcement Committee.
Thanks
Jan
P.S.: I would appreciate, if you would inform the other members of your
committee about this issue.

 In response to this e-mail I received on Friday, 1-28-2000, the following letter:

Dear Jan,
As requested I am enclosing the information requested. The decision to act was reached by the Code Enforcement Committee members.
I hope that this information is helpful. Please contact us if there is anything further that you need.
Regards,
The Code Enforcement Committee

Barbara Castellano
Cassandra Meyers
George Nagy
Lenore Straus
Explanation: enclosed was the attorney's letter (s.a.)