What Happened with the Election — and Why It Was Canceled
Dear Homeowners,
As many of you have seen, the August 14, 2025, membership meeting and election were canceled by an order issued by the Florida Department of Business and Professional Regulation (DBPR). We understand this may have come as a surprise, and we want to ensure all homeowners understand how we got here, what actions were taken, and how this impacts our community moving forward.
🔹 How This Began
In April 2025, homeowner Karen Paine — who also owns Paine Anderson, the former property management company recently dismissed by the HOA and currently the subject of a $2.2 million demand for damages — had her attorney send a formal demand letter to the Association regarding alleged issues related to the HOA’s Annual Meeting on March 27, 2025.
Although the Board did not fully agree with her interpretations of the Association’s governing documents, the Board chose to comply with her demands in good faith with the intent to avoid unnecessary conflict and legal costs to this community. This included:
â—Ź Scheduling a new membership meeting for the express purpose of an election of Directors
â—Ź Procuring a venue and police presence for the new meeting
â—Ź Printing and mailing a second round of official notices to all Owners
​
These steps came at significant expense to the HOA, funded by your dues. Ms. Paine should have been well aware of those expenses since she used to manage this HOA.
🔹 What Happened Next
Before the deadline in her own demand letter had passed, she rushed to file a complaint with the DBPR, initiating a formal dispute with the exact same items she submitted to the HOA in her original demand letter.
The Board provided the DBPR with documentation showing that the HOA had already scheduled a new meeting and election in accordance with her written demand as well as rebutted all her other points in the dispute.
Despite this, Ms. Paine continued to dispute the Association’s actions and communications with the DBPR.
Based on Ms. Paine’s unwillingness to accept that a new election would be held on August 14, 2025, the DBPR issued a formal order canceling the August 14 meeting and election on August 5, 2025 and requiring the HOA to continue with binding arbitration to determine how the HOA’s governing documents must be interpreted moving forward.
🔹 What This Means for Our Community
This escalation — which easily could have been avoided — now forces the community to continue with formal legal arbitration, resulting in:
â—Ź Delays to the election process
â—Ź Increased legal expenses, funded by all homeowners
● Disruption to the HOA’s ability to move forward on urgent priorities
These are not minor concerns — the stakes are high, and your attention to these developments is vital to protecting the financial health and legal integrity of our Association.
All of this was triggered by the actions of a single homeowner — the owner of the HOA’s former management company — who pursued this legal process through formal channels even after the HOA complied with the demands outlined in her attorney’s letter PRIOR to her own deadline.
This message is intended to keep our Owners informed of the sequence of events and actions taken by the HOA. We will continue to communicate transparently while complying with all legal and regulatory obligations.
We believe you deserve to know the full story, and as more information becomes available that we are legally free to share, we will post an update.
Thank you for continuing to stay informed and engaged.
Sincerely,
​The Highlands HOA Board of Directors
​