The Pregen Firm Weighs In On Co-Op Nightmare in Miami's Overtown

Legal Analysis: Shareholders at Town Park Village Face Ejectment Risks

In the ongoing legal battles surrounding Town Park Village's Overtown co-operative, I've recently analyzed a complex situation that has left many shareholders facing an uncertain future. While recent court rulings spared these shareholders from immediate eviction, the reality is that they could still lose their homes and every dollar they have invested in the cooperative.

The Situation at Town Park Village

At least 14 residents of Town Park Village are currently facing ejectment cases in Miami-Dade Circuit Court. These residents, who have called Town Park Village home for years, allege that the board of directors has manipulated records to strip them of their rights. Latasha Robinson, a long-time resident who inherited her unit from her mother, recently discovered that her name had been removed from the deed. According to Miami-Dade Property Appraiser records, the unit now belongs to Town Park Village itself. Robinson's struggles highlight a broader issue faced by many residents. The board has required her to sign a new tenant agreement, which she refused to do as it included terms that would strip her of some of her shares and drastically increase her monthly payments. "I never agreed to any of this," she stated. Additionally, the board has imposed high fees without proper meetings or consensus from the residents.

The Legal Landscape

While Chapter 83 of the Florida Statutes specifically excludes co-operatives from its scope, (meaning residents cannot be evicted) Robinson and the other shareholders are still at risk of losing their homes. As I mentioned in a recent interview with CBS News Miami, the current legal framework leaves shareholders extremely vulnerable. Florida law does not permit shareholders to be evicted, but they can be ejected, which means losing both their homes and their investments. The situation at Town Park Village is further complicated by the board's decision to impose significant fee increases, which Town Park claims were approved through a legally binding vote. However, many residents contest the legitimacy of this vote. Pamela Smith, a shareholder, expressed her frustration, stating, "We never voted about anything." Others, like Lillian Slater, who previously served on the board, echoed similar sentiments, saying they had no contact with the board regarding these changes.

The Full CBS New Miami story can be found here

What Lies Ahead?

The outcome of these ejectment cases will likely hinge on the legality of the board's voting process. For a vote to be valid, it must be conducted according to the cooperative's bylaws, which require a minimum of 20% of members to be present either in person or by proxy. Additionally, the bylaws stipulate that the board must consist of no fewer than five and no more than nine directors. However, records obtained by CBS News Investigates reveal that only four members of the board voted to evict residents without any opposition (who knows what may have happened with the vote on the fee increase). The implications of these proceedings are dire. If the shareholders lose in court, they stand to lose not just their homes but also their investments, with little to no financial compensation. As Robinson poignantly stated, "I invested a lot here... I feel betrayed."

Conclusion

The situation at Town Park Village serves as a stark reminder of the vulnerabilities faced by shareholders in co-operative housing. As this legal battle unfolds, it is crucial for residents to stay informed and engaged in the process. The outcome will not only determine their immediate living situations, but also set a precedent for co-

operative housing governance in Florida. As a legal advocate, I remain committed to ensuring that the rights of these shareholders are upheld and that justice is served.