Doral Pilot Program on Community Association Fraud May Provide Model for Local Enforcement

The firm’s latest Miami Herald “Real Estate Counselor” column was authored by shareholder Gary M. Mars.  The article, which is headlined “Doral Pilot Program on Community Association Fraud May Provide Model for Local Enforcement,” focuses on a new pilot program by the City of Doral to detect potential cases of theft and abuse by associations. It reads:

. . . The new program, which was the subject of a recent article by Doral Family Journal, seeks to create a mechanism for residents to submit complaints related to potential financial irregularities in their communities. Its goal is to allow authorities to evaluate whether sufficient evidence exists to initiate criminal investigations.

During the discussion of the proposal, Mayor Christi Fraga said the new pilot program was in response to residents facing alleged financial misconduct involving homeowners and condominium associations. She emphasized that the city’s police department must investigate complaints which rise to the level of potential fraud, organized schemes, or improper solicitations to determine whether there is sufficient evidence for criminal charges.

Mayor Fraga further explained that the program would not be intended to intervene in administrative disputes or internal association conflicts, including rules enforcement, board member disagreements, or election outcomes. Instead, it would be focused on determining whether a crime has occurred, and on initiating investigations that could lead to legal actions.

The city approved the initiative as a one-year pilot program, during which the municipality will absorb the associated costs and external financial-auditing support. The results will be used to determine whether funding mechanisms, cost-recovery structures, or specialized personnel dedicated exclusively to such investigations will be required to implement the program on a permanent basis.

The theory behind such a program is sound. My colleagues and I have seen cases in which local law enforcement agencies have been alerted to potential wrongdoings involving association finances. The responses can vary greatly, but one of the most common has been that such matters are civil rather than criminal in nature.

It’s easy to understand why that would be. Civil cases involve disputes between individuals and organizations over money, while criminal cases are for offenses against the state seeking punishments like fines and incarceration.

Prior to the changes in Florida law that began in 2017 and were expanded in 2024 and 2025, law enforcement officials would correctly tell many property owners bringing such allegations to relay them to the state’s Department of Business and Professional Regulation for investigations and arbitrations. They would also commonly indicate that such matters are civil disputes that require the filing of a lawsuit to pursue.

The changes that began nine years ago added teeth to the state’s HOA and condo laws, and now association infractions can rise to the level of third-, second- and first-degree misdemeanors. Many such matters require specialized reviews of association finances to determine whether records are accurate and funds have in fact been misappropriated.

Such a fraud detection program could prove to enable municipalities to provide the necessary attention and resources to such matters to change the prevailing erroneous presumptions of their law enforcement agencies. They could provide for the creation of a clearinghouse for the intake of complaints that will ensure they each receive the analysis and response they deserve.

The funding question, as is practically always the case, will probably prove to be paramount. Investigations of such financial crimes will require highly specialized and knowledgeable professionals who will need to carefully review association records. Current local law enforcement resources and capabilities may be insufficient, and expanding them for such potentially complex matters could prove to be costly.

Complaints from some home and condominium owners related to the financial oversight of their associations will presumably always arise. Many such matters will lack evidence meriting further investigation, but certainly some will demonstrate they exceed the threshold. . .

Gary concludes his article by noting that more than nine years after the changes to the state’s association laws were enacted, many local law enforcement agencies and their officials still misconstrue matters that may rise to potential criminal offenses as civil disputes. He writes that such fraud detection pilot programs could prove to be an effective step for local law enforcement agencies to receive and allocate the required resources to help ensure as few associations as possible become a victim.

Our firm salutes Gary for sharing his insights into this new pilot program and its potential with the readers of the Miami Herald.

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