Dear Homestead Homeowners:
Many of you have recently received letters from Possinger Law demanding payment on behalf of MJ
Management. For those who may have forgotten, MJ Management signed a Management and Lease
Agreement with 18 Paradise under which MJ Management agreed to manage the golf course and
maintain the Homestead Common Open Space.
While acting under the Agreement with 18 Paradise, MJ Management recorded the Sixth and Seventh
Amendments to the Homestead Declaration of covenants and charged Homestead owners an $83
special assessment and raised the maintenance fee from $36 to $93 per month. After the May 2024 trial
of our class action lawsuit, Judge Freeman ruled that the Sixth and Seventh Amendments were
absolutely void.
18 Paradise terminated MJ Management’s agreement on June 1, 2023. On June 23, 2023, 18 Paradise
sued MJ Management for $265,640.00 that was due under the management agreement. On July 21,
2023, a default judgment for $265,640.00 was entered against MJ Management. A court later set aside
that judgment to give MJ Management a chance to respond, but you get the picture.
Based on MJ Management’s records, it appears that MJ Management collected more than $1.5 million
under the Sixth and Seventh Amendments. You might think that after Judge Freeman ruled those
amendments void, that MJ Management would be making arrangements to refund the amounts paid
under them. But you would be wrong.
Instead, MJ Management and its attorney Jeffrey Possinger are demanding that Homestead owners pay
more money. If you have received such a demand, you might be asking yourself if you should pay.
Before paying MJ Management or Possinger, you might ask yourself, what agreement do I have with MJ
Management? As far as we know, the answer is none.
Under the Declaration of Covenants, the maintenance fee is owed to the “Declarant.” 18 Paradise is the
Declarant and MJ Management is not. MJ Management appears to be claiming that 18 Paradise
assigned the maintenance fees to it. If so, the person making the assignment (here 18 Paradise) has to
tell people. Has 18 Paradise notified you that it has assigned Declarant rights to MJ Management?
Anyone who pays MJ Management or Possinger Law runs the risk that 18 Paradise may demand the
SAME payments because as the Declarant it is the one entitled to them.
We also would point out that the purpose of the maintenance fee was to pay for maintenance of the
Common Open Space. Since MJ Management was fired, it did not maintain the Homestead Common
Open Space. It is quite possible that anything that anyone pays to MJ Management or Possinger Law
now will just go into their pockets. We continue our advice that you should only pay for maintenance
fees to the Declarant 18 Paradise and then only if 18 Paradise provides you with an accounting for fees
that have already been collected from you.