Homeowners in this New Tampa gated community have complained about their cable TV and Internet service for years. Now, their homeowners association has sued the developer-owned cable company to get out of the 15-year contract. Live Oak's homeowners association filed the complaint Dec. 13 asking for a declaratory judgment that its contract with Century Communications is unenforceable. Further, the association charged Century with breach of contract for failing to "provide good television and Internet signal" to the homeowners, who are charged for the services even if they elect to go with another provider.
Century is owned by the Falcone family, which also founded Transeastern Homes. Transeastern, Live Oak's original developer, initially controlled the master homeowners association, but it was replaced by Engle Homes when parent company TOUSA bought out the Falcones' interest in the former Transeastern developments.
About half of all the homeowners association dues -- $1.6 million -- go directly to Century Communications each year. Residents have complained that the Internet service is too slow and the cable TV service is antiquated. Century's high-definition programming is limited, it doesn't offer digital videorecorders, and it's not compatible with TiVo.
The Federal Communications Commission voted Oct. 31 to prohibit cable companies from using exclusive contracts for television service in apartments, condos and other private developments. But Century Communications, which provides cable TV, Internet and home security monitoring in Live Oak Preserve and The Hammocks, was exempt from that ruling.
General Manager Bill McKissock said the ruling did not apply to private companies whose cable lines do not cross public streets. He also said Century's contract with Live Oak isn't exclusive because it hasn't stopped satellite providers or Verizon from selling their services in the community. But the bulk billing arrangement means residents are required to pay Century even if they use another service provider.
The FCC is considering whether to extend the ruling to satellite TV providers and private cable companies and whether to prohibit bulk billing arrangements such as the one in Live Oak Preserve.
The commission announced it would make a decision by mid-April. The FCC decision, however, likely wouldn't take effect before June, and it would be specific to cable TV service. So even if the ruling nullifies part of the contract, it might not prevent Century from raising its fees for home security monitoring and Internet service to make up for losing the cable revenues.
Source: AllHeadlineNews.com