Naples residents and leaders sound the alarm over cost of condo sprinkler system retrofit..

Naples homeowners aren’t happy about the potentially staggering costs associated with complying with the Florida Fire Prevention Code.

The Naples City Council this week discussed the cost associated with complying with the recently revised code. The discussion came about a month before City Council is scheduled to sit down with representatives from the state fire marshal’s office to discuss a state-mandated sprinkler system retrofit. The retrofit must be done by Dec. 30, 2014. But Monday’s discussion had less to do with the retrofit and more to do with code violations that have been popping up in low-, mid- and high-rise condominium complexes in the past few months.

Fire Chief Stephen McInerny has said that the city began inspecting multifamily residences back in June. Those inspections, he said at the time, turned up code violations that had been in place for a while. Those condominiums now need to get in compliance, McInerny said, something that could come at a high cost.

In a memo to City Council members, McInerny outlined the potential costs to condominiums for different code violations. McInery said the pricing — which came directly from fire alarm companies — varied, and he didn’t have an estimate for how much residents will have to pay to get their units in compliance.

That concerned Councilman Gary Price. “We have the obligation to try and work through how many buildings and what the costs are,” he said. “When I asked for the associated costs and estimates, I got a one-page memo and no one can tell me how many units are affected. Our citizens deserve better. I deserve better. We deserve better.” Residents agreed. Condominium owners said the estimates McInerny presented to council weren’t exactly on target.

Ewing Sutherland, president of Gulfside Condominium Association and a member of the Community Advocacy Network, said the retrofits and push to comply were proving costly for condominiums. “This enormous cost associated (with it) are unaffordable by many owners,” Sutherland said. “It could also put associations into receivership.”

McInerny said the high cost could be because some associations are making the choice to retrofit the sprinkler system in addition to making changes to get them in compliance with code. And while McInerny said he understood the frustration condo owners were experiencing, he also said he couldn’t turn a blind eye to code violations.

“What do you want me to do, just ignore it?” McInerny asked. You have violations that exist now and (we’re working to see) how they can be corrected.” McInerny said his department is willing to work with associations in order to comply with current code.

Taken from Connect with Naples.

Do fines always REALLY Work??

In these tough economic times, Board Members are trying to do whatever they can to save money. While this mindset is obviously necessary, Boards need to be careful about being "penny wise and pound foolish." Clients often call us and ask what they can do to stop owners from violating the association's rules and regulations. This question is normally followed with an explanation that the Board cannot spend a lot of money on legal fees to enforce the rules. In other words, the Board asks that we get these people to comply with our rules but to do it cheaply. This brings up the fining process.

Imposing fines may be an inexpensive alternative to filing lawsuits or arbitration petitions, but does it actually help in unit owners correcting violations or deterring owners from violating the association's rules and regulations?

First, the association cannot even consider this option unless the authority to impose fines is found within the governing documents (usually it is), if you are not sure, ask your property manager. If the board indeed has the power to impose fines, it must establish a separate committee (usually known as a fining committee or enforcement committee). The committee must consist of at least 3 owners who are not board members, not related to board members and do not live in the same household as a board member (the law was recently amended). Then, before any fine may be imposed, the Board must provide the offending owner with reasonable advance notice (i.e. 14 days) of the date, time and location for the owner to appear before the committee. The offending owner must be given the opportunity to explain to the committee why a fine should not be levied. If the fining committee determines not to impose a fine, no fine may be imposed and the Board cannot overrule the fining committee and levy a fine where the committee voted not to impose a fine. Even if the committee votes to fine an offending owner, the fine cannot exceed $100.00 per day for a continuing violation and no fine in a condominium may exceed $1,000.00 for any single violation. Homeowners Associations may have the ability to levy fines in excess of $1,000.00.

So, do fines REALLY work? In both Condominiums and Homeowners Associations, no fine (if unpaid) may become a lien against the owner's unit. Therefore, if a unit owner fails to pay a fine, the association would need to file a claim for damages in small claims court. Also, the imposition and payment of fines does not necessarily mean compliance. A fine does not force the owner to comply. As you can imagine, many owners would gladly pay a $1,000.00 fine in order to keep their dog or continue with that unapproved tenant in their home. Therefore, while imposing fines may seem like an attractive and cost-effective solution, it does not guaranty an owner's compliance with the association's governing documents. If an owner refuses to abide by the rules, the Board's only realistic option may be to file a lawsuit and seek an injunction against the non-complying unit owner. If successful, the association is entitled to an award of its reasonable attorney's fees and costs. Then, if the owner still fails to comply, the judge may levy sanctions, hold the owner in contempt of court or ultimately issue a bench warrant for the owner's arrest.

Based on our experience, it is our recommendation that the Board always try issuing fines first. Then, if the non-complying unit owner fails to pay the fine and continues to be in violation, we recommend the Board seek legal action, at which point the associations' attorney will not only seek an injunction against the unit owner, but will also seek payment of all fines. Typically, this type of legal action usually takes at least 90 days.

So what do you think, does fining always REALLY work?