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Hobe Assoc. v. State, Dept. of Business Regulation

Citation: 504 So. 2d 1301Docket: BL-325

Court: District Court of Appeal of Florida; March 1, 1987; Florida; State Appellate Court

Narrative Opinion Summary

In this appellate case, a mobile home park owner, Hobe Associates, LTD., challenged the Florida Department of Business Regulation's Division of Florida Land Sales, Condominiums, and Mobile Homes regarding rent increase procedures. The Division had enforced a January 1 rent increase date stipulated in Hobe's draft prospectus and deemed Hobe's August 1985 Notice of Rent Increase insufficient under Rule 7D-32.02(1)(d) for lacking detailed reasoning. Hobe contended that these actions constituted final agency actions suitable for judicial review, the January 1 provision was non-binding, and that Rule 7D-31.01(5) was invalid. The court affirmed the denial of Hobe's petition for a formal administrative hearing, determining the Division's actions were informal and not subject to review. It upheld the Rule's validity, emphasizing the necessity of adhering to statutory tenant protections. However, new legislation in 1986 rendered Hobe's August notice valid, allowing recovery of lost rent from 1986 in accordance with updated statutory guidelines. The decision underscores the importance of compliance with administrative procedures and statutory regulations governing rent increases and prospectus amendments.

Legal Issues Addressed

Final Agency Action under Chapter 120.68, Florida Statutes

Application: The court determined that the Division's communications with Hobe were informal and did not constitute final agency actions subject to judicial review.

Reasoning: The hearing officer concluded that the Division's communications were not final agency actions but rather informational, intended to guide Hobe in correctly drafting its documents.

Notice Requirements for Rent Increase under Rule 7D-32.02(1)(d)

Application: Hobe's August 12, 1985 Notice of Rent Increase was initially deemed insufficient by the Division; however, new legislation in 1986 validated the notice's sufficiency.

Reasoning: Provisions of Chapter 86-162, Laws of Florida, override conflicting requirements of Rule 7D-32.02 of the Florida Administrative Code regarding 'concise explanation' for rent increase notices.

Prospectus Amendments under Florida Statutes §723.011(2) and §723.059(3)

Application: Hobe was bound by the January 1 rent increase provision in its prospectus due to statutory protections for tenants, preventing unilateral amendments without homeowner consent.

Reasoning: Under §723.011(2), the appellant was required to distribute the prospectus to tenants upon the rental agreement's execution or at occupancy.

Validity of Florida Administrative Code Rule 7D-31.01(5)

Application: The court upheld the validity of Rule 7D-31.01(5), finding it consistent with Chapter 723 and not restricting the subject matter of amendments to a prospectus.

Reasoning: Rule 7D-31.01(5) was found to be consistent with Chapter 723, countering the appellant's assertions.