In a rare opportunity and as a result of the lawsuit, Directors of Kings Point’s 91 Condominium Associations are now in the process of choosing sides. Through their attorneys they are deciding whether to support the Defendants KPRC & Vesta or the Plaintiffs. These decisions could result in an opportunity for the majority of the 500-650 Directors to take back control of their own assets.
All money and assets currently under the management of Kings Point Recreation Corporation (KPRC) belong to the 91 condominium associations, which are controlled by the 500-650 Directors who represent the 7,200 homeowners.
Ownership Structure: The recreational facilities (clubhouses, pools, golf courses) were originally owned by the developer and leased. In 2012, KPRC was formed to receive ownership of these assets from the developer, which were then transferred to the 91 individual condominium associations.
Tenant in Common: The associations hold title to the recreational assets as “tenants in common,” meaning the residents, through their respective associations, collectively own the property.
Indirect Ownership: While individual homeowners do not hold title to the recreation land, they own it “indirectly” because they vote for the boards of their specific condo associations, which in turn elect the directors for KPRC.
Operational Control: KPRC operates as a not-for-profit corporation created to manage these assets and maintain the financial operations of the recreation areas on behalf of the associations.
Under Florida Statute 718 (the Condominium Act), the control of association funds and assets is vested in the board of administration (directors), and actions—including financial decisions—are generally taken by a majority of the board members present at a meeting where a quorum is established.
This may be the perfect time to start fresh, add more checks and balances and award control of the assets to the 7,200 individual homeowners where they belong.