HOMEOWNERS were left raging at being forced to pay twice for insurance after their entire HOA board suddenly quit.

The community’s insurance provider in Florida demanded more than $20,000.

The whole homeowners association (HOA) board at Grenadier Lakes at Welleby in Sunrise resigned nearly a fortnight ago, reported CBS News.

Residents were further shocked when the community’s insurance provider demanded more than $20,000 by Friday.

So they launched a frantic online fundraiser to protect their homes.

One man said it was an, “Oh my God situation.”

The board resigned en masse last Monday, leaving the community in financial limbo, said CBS.

That was because state law delayed the election of new leadership.

Plus, with no board in place to authorize payments, homeowners were left in a perilous financial situation.

Six days the board quit, condo owners read shocking messages – which revealed that two months worth of insurance had not been paid – for January and February.

Condo owner Keith Tannenbaum said, “This is not the life of Riley living here, we’re not in the lap of luxury.”

He also said that “it hurts” having to find the extra cash. “But we want to keep our property.”

The insurance company demanded close to $25,000 by Friday.

Residents risked being financially liable should someone get hurt in their community. 

Without a board, no one has authority to spend the fees collected to cover expenses that are sitting in the HOA’s bank account.

To make things even more tricky for the condo owners, a Florida law also forces them to wait 30 days to appoint a new authority – without exception.

“Payment has not been made in two months,” said Marlon Bryan, an attorney representing the unit owners. “Right now, we’re in flux until somebody tells us what to do.”

Bryan said it means that residents have to keep paying association dues or risk a lien on their homes – and also find more money to pay insurance dues.

“That 30 days is an eternity for them,” he said. “I think the legislation needs to look at whether this needs to be amended.”

What is an HOA?

One in five Americans live in an area with a Homeowners’ Association – or HOA. But what exactly is it that they do?

• An HOA is a homeowner’s association – an organization that aims to maintain a clean and cohesive place to live for its residents.
• Entire neighborhoods, subdivisions, condominiums, family homes, or townhouses within “a planned development” will often make up an HOA.
• They also act as a governing body for tenants, who run and fund the HOA through monthly fees.
• Their principal aims are to keep the community functioning and visually appealing and to maintain property values.
• They primarily focus on common areas of a neighborhood, such as roads, parks, and pools – but may also stipulate what residents can do with their properties, such as yards and driveways.
• Often these restrictions enforce uniformity on properties, for example, ensuring most houses look the same and all driveways are clear of weeds.
• An HOA rulebook of covenants, conditions, and restrictions (CC&R) is distributed to all residents, and an elected volunteer board of directors enforces these regulations.
• Breaking these rules can result in penalties such as fines and even litigation – as most HOAs are incorporated and subject to state law.
• HOAs are often the subject of controversy, with some members feeling that the rules are too punitive and restricting, or that the leadership has too much power.
• But others like that HOAs give communities the power of self-governance, and can ensure a degree of harmony between residents.

The bizarre situation comes a week after former board members tried to pass a $4.5 million assessment to repair structural and electrical problems.

Bryan successfully filed an injunction for condo owners to block it. He also encouraged them to crowd-fund the insurance money.

The online fundraiser said, “Grenadier Lakes at Welleby, our beloved community, is facing a serious challenge that threatens our homes and financial well-being.

“Due to rising insurance costs, our association is at risk of losing coverage, putting every homeowner in jeopardy.

“To make matters more difficult, our board of directors has resigned, leaving the property management unable to disburse our funds in our association account.

“Without immediate action, we could face policy cancellations… and devastating financial consequences for all residents…

“We are rallying together to raise the necessary funds to ensure our community remains insured and protected.”

In less than 24 hours, they reeled in enough donations to cover January’s bill – all of which came from generous neighbors.

But, unless a judge issues an emergency order to elect a new board, they have less than a fortnight to now pay February’s insurance bill.

One man said: “It just shows the resilience of our community.”

Residents are pinning their hopes on the judge to approve an emergency motion to elect a new board, and intervention from Florida State Sen. Rosalind Osgood to push for legislative changes.

“We’re hoping she reaches out to her colleagues and uses us, unfortunately, as Exhibit A to make some changes to the law,” said Bryan.

The U.S. Sun has contacted Grenadier Lakes and Bryan for comment.