From Seeking Rents, April 26:
A homebuilding giant is lobbying for the power to collect endless profits from homeowners
A bill backed by Fortune 500 homebuilder Lennar Corp. would to let developers lock homebuyers into paying perpetual fees that do nothing but pad developer profits.
Homebuilding giant Lennar Corp. is lobbying Florida lawmakers to let residential developers lock homebuyers into paying never-ending fees that would turn housing subdivisions into fountains of endless profit.
Records show that lobbyists for one of the country’s largest homebuilding corporations began shopping the idea in the Florida Legislature shortly after an appellate court ruled the scheme illegal under the state’s current laws.
The Lennar-backed legislation would overturn that court decision, in which another developer was ordered to refund nearly $35 million in fees it had improperly collected from residents of a retirement community south of Orlando.
It could also cripple a series of similar, and still-pending, lawsuits against other developers that have engaged in the same tactic — including a potential class-action complaint targeting Lennar, which did more than $35 billion in sales last year.
The legislation remains very much in play as Florida lawmakers enter an uncertain final week of their 2025 legislative session — thanks to some last-minute maneuvering in the Capitol that appears meant to sidestep a key lawmaker who has called the proposal “very problematic for consumers and homeowners in Florida.”
Representatives for Miami-based Lennar, one of the most influential corporations in in Tallahassee, did not respond to requests for comment.
The issue involves master-planned communities that entice buyers with recreational facilities for residents — amenities like golf courses and clubhouses, spas and fitness centers, and tennis and bocce ball courts.
Often, the developer will turn those amenities over to the community’s homeowners’ association, or HOA, which collects assessments from residents to cover the cost of operations and maintenance. Residents who fail to pay their assessments can have liens placed on their property and ultimately lose their homes to foreclosure.
Some developers have chosen instead to retain ownership of those facilities for themselves....
....MUCH MORE
