Developer Accused of Operating 'Zombie HOA' for 20 Years

Homeowners at the Villa Portofino East townhome complex in Homestead, Florida, have filed a lawsuit accusing developer Prime Homes at Villa Portofino East of maintaining control over their Homeowners Association (HOA) for 20 years. The lawsuit, filed last month in Miami-Dade Circuit Court by residents Edney Del Risco, Eliseo Moreno, and Madeline Garcia, alleges that affiliates of developer Larry Abbo's Prime Group and PMG Asset Services have continuously appointed their own representatives and employees to the HOA board since the 117 townhomes were sold. Homeowners claim the developer has collected dues throughout this period while retaining governance authority, despite statutory requirements for transferring control to residents once specific turnover conditions are met.

According to Florida's Homeowners' Association Act, residents are entitled to elect a majority of the association's board within three months after 90% of the parcels in the community have been conveyed to non-developer owners. The plaintiffs allege that the developer-controlled HOA has improperly manipulated the calculation of residential parcels to delay this transfer of power. The developer's representatives and attorneys have reportedly informed homeowners that the turnover requirements have not yet been satisfied, a claim strongly disputed by Risco, Moreno, and Garcia, who have co-owned a townhome since 2022. Their attorney, Eduardo Gomez, stated that other residents share these concerns and that the named plaintiffs are the ones who initiated legal action.

The legal challenge centers on the interpretation and application of Florida's HOA statutes, specifically concerning the developer's obligations and the homeowners' rights to self-governance. The residents contend that the developer has effectively operated a "zombie HOA," continuing to exert control long after the legal framework suggests control should have passed to the community members. This prolonged developer control impacts decision-making on community matters, financial management, and the overall direction of the Villa Portofino East complex.