HOA Nut House

Judge Orders Cory Lake Association To Turn Over Records

By KENNETH KNIGHT | The Tampa Tribune

CORY LAKE ISLES - A judge has ordered the Cory Lake Isles Property Owners Association to turn over all its financial records to a group of homeowners.

Circuit Judge Martha Cook ruled Thursday that the residents should have access to all official documents of the property owners association, including financial information. She said the association has 20 days to hand over the records.

Homeowners in the courtroom applauded when Cook made her ruling.

Mark Basurto, attorney for the seven Cory Lake homeowners who filed the lawsuit, said his clients are eager for the property owners association to comply.

"We want to know what happened to our money," Basurto said.

Philip Friedman, attorney for the property owners association, said his client is also hoping for an amicable resolution.

"The property owners association looks forward to a resolution of all these issues so the community can enjoy the peace and tranquility that comes from living in a beautiful community such as Cory Lake Isles," Friedman said.

The decision marks the second time the homeowners have sought access to their property owners association's financial records. They originally sued in October, seeking permission to see how community developer Gene Thomason had been spending homeowner assessments.

Thomason also owns the company, Cory Lakes Limited, that provided landscaping, security and management for the 1,000-home gated community.

In March, Thomason's lawyers turned over six boxes containing 15,000 documents for his company dating to 2002.

Some homeowners have accused Thomason of diverting funds for his personal use.

Basurto said in court Thursday that his clients had not been given access to all of the association's financial records. He said the boxes of documents did not include bank statements, itemized records of receipts and expenditures, audited financial statements, ledgers, balance sheets, copies of contracts, income tax returns or copies of bids for the past year.

Basurto said he wrote a letter in January asking the property owners association to comply but did not get a response.

"I want to make it clear to the court that my clients are frustrated with the process," Basurto said.

Friedman told the court that the Cory Lake Isles residents never attempted to arbitrate their differences with the property owners association.

He asked the judge to dismiss the lawsuit because the residents did not seek arbitration as is required by the statutes of their deed-restricted neighborhood. Cook disagreed and denied the request.

"The records being sought … and the monies they alleged were accessed are not property owner association assessments," Friedman said in an interview.

The neighborhood covenants gave the association exclusive authority to assess residents for maintenance and operations of the community, but homeowners were billed by Cory Lakes Limited.

"We look forward to their understanding of the monies the developer has spent on the community was over and above what was collected by the developer," Friedman said.

Reporter Kenneth Knight can be reached at (813) 865-4842 or kknight@tampatrib.com.

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