5-25-99
A Difficult Recovery
Homebuyers lost thousands when builder abandoned project. Now they're fighting state fund that's been slow in paying compensation.
By TERRY SHERIDAN Review Staff
 In
a move that could affect homeowners statewide, 22 people who years
ago lost money to a Broward County builder want the state's construction
recovery fund temporarily shut down until they are paid what's
still owed them.
A suit filed last week in Broward Circuit Court on the group's behalf contends that the Florida Construction Industry Licensing Board in Jacksonville, which oversees the fund, violated state law in failing to pay them by Jan. 1. The homeowners claim they're due $100,000.
The recovery fund, which is fed by statewide building permit fees, is used to compensate homebuyers and owners when builders fail to fulfill their obligations. The state board reviews consumer complaints against licensed construction contractors and metes out discipline when warranted. Other than civil court judgments, the board is the only recourse homeowners have against licensed contractors.
But waiting for payment has become a fact of life for 22 people who plunked down thou- sands of dollars in deposits on homes to be built in the western Broward County development of Bonaventure, only to see the builder abandon the project.
Four years ago, the buyers sued builder Treasured Spaces of Florida Inc. for nearly $235,000 money. Under prior law, the state limited totals against a single licensee to $100,000. So Oppenheim last year worked to revamp the state law, which now allows larger payments but limits the total against one licensee to $100,000 per year and $250,000 total. Any claim that exceeds the annual cap can be paid in sub- sequent fiscal years - but only after all claims for the current calendar year are paid.
But the subsequent payments have yet to be made. The homebuyers say the state is late in its payment because it illegally turned over its funds to other homeowners with claims, according to the suit. Oppenheim's clients want to get paid before the board pays out money to any other claimants.
"Be recovery fund gets about $1.2 million annually and [the board] spent it all by February, but if they had followed the law, we would have been paid in January," said Oppenheim. "On July 1, (the board] gets a new allocation, but they don't plan on doing anything. For them to act this way is completely irresponsible."
But the state board says it is doubly puzzled by the new law. First, the law deals with a calendar year while state government runs on a fiscal year. And, the law doesn't make clear which claims should be a priority.
The board will ask the state Legislature to clarify the law next year, said executive director Rodney Hurst. He said funding for. The construction, recovery fund can vary from $1.2 million to $1.4 million annually.
Meanwhile, Charles Sauls Sr., under whose license Treasured Spaces operated, cannot use that license until he repays the recovery fund for the money it has had to pay as a result of LaCosta. Efforts to locate Sauls for comment were unsuccessful.
The LaCosta subdivision, begun in 1993, originally was to have about 70 homes. But Treasured Spaces abandoned the project in 1995, leaving about 30 homes completed and the remainder un- finished.
About 18 more homes eventually were completed by Coastal Construction and Consultants Corp. in North Miami, though not A the homes belonged to the group of 22 would-be owners. Now, the members of the group involved in the lawsuit against the state primarily are scattered throughout Broward and Miami-Dade counties.
Two in the group, Christopher and Mary Jo Abel, finally moved into LaCosta in 1996 - after buying their unfinished house from Coastal and then hiring con- tractors to complete it. Mary Jo Abel won't say how much the house eventually cost to complete, but said, "it was a lot more" than originally projected According to the suit, their original contract price with Treasured Spaces was for $187,000, and they had deposited $22,240.
"We're glad we're here, though - that was the whole point of doing all this," she said.
Other would-be buyers gave up on moving into the community. Jesse Alper and Martine Aerts no longer could afford LaCosta after they lost their $20,500 deposit.
"It's all been so complex, but it's taken longer than we thought it would to resolve," Aerts said.
They've since purchased a townhouse at West Lake in Hollywood. "We scaled back because of the loss," Aerts said. "The other house was very promising but, ooh- la-la, the trouble. I would hope that bad luck like this only happens once."
So far, they've received $5,000 from the recovery fund.
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