SUNCOAST REVIEW
BUDGET SEASON – ARE YOU READY?
Once you have your budget put together, present it to your board with confidence
Upcoming Events
November
A LETTER FROM THE SUNCOAST CHAPTER PRESIDENT
I hope everyone had a great summer! Here we are in the home stretch of 2024 Summer is over, school is back in session, and we are barreling toward the holidays which will be here before we know it But, before we get there, we have a very exciting fall lined up with some of our biggest events of the year First, in November we will have our semi-annual Legal Q&A breakfast After all of the new legislation that went into effect on July 1, 2024, it will be an opportunity for all to come and ask questions to our attorney members about the experiences we have had since July It is always a well attended event, and space is limited, so sign up early! Next, on November 21st we will hold our Community Connections trade show which was rescheduled due to Hurricane Helene
It will be our first event in the new venue of Ruth Eckerd Halls.
It is a chance for our members to get together, socialize, have some food and drinks, and get to all take a quick break from the hectic life that comes with working in community associations Then, at the end of the year, we will have our highly anticipated golf outing which was also rescheduled from October and will now be in December. It is always a great day, and whether you golf, or want to volunteer and have some fun in the sun, it is a great day for all.
I can’t wait to see you at all of our exciting events this fall, and as my term as Chapter President draws to a close, I want to reiterate what an honor and pleasure it is to serve in that capacity. I also cannot thank our Board, ED, and volunteers enough It has been an exciting year, and I cannot wait for the future of this chapter!
Sincerely,
Stephan C. Nikoloff, Esq.
BUDGET SEASON – ARE YOU READY?
Written by: Jocelyn St. Hilaire, CMCA, AMS, PCAM
Ahh budget season…. some most seasoned property m we all cringe when this tim the most common reaso managers don’t feel like th planning takes a lot of hou communication with vendo next year’s plan, sometime drawing board after review their board members The budget season a little mor prepare way in advance example, if there is a “dow when homeowner request time to start putting togeth for the following year. Ask long-range plan showing over the next 3-5 years H running so you can plug in Have a checklist to refer to you are on task with Communicate with your b budget deadline so you them accordingly
While keeping assessments to a minimum increase is always the goal, make sure you build in enough wiggle room into your budget for the unexpected, especially those small, unexpected property repairs that you wouldn’t use your reserve funds for (e g a dead tree, landscaping upgrades needed, electrical repairs, storm damage, etc )
Once you have your budget put together, present it to your board with confidence – you worked hard on this and it’s time to show them your knowledge! Try to anticipate their questions as much as possible and have details included in the spreadsheet for them to see, especially for any line items that might be a higher increase than typical. If your vendors need to request a higher contract increase, make sure they are prepared to attend a board meeting to request that increase from the board and ensure they have any needed contract addendums ready for the board to sign
Communication is key! Make sure you are giving the board more information than you think they need, as this will help deflect some on the spot questions at the meeting. Ensure that all communication going out to the homeowners is as transparent as possible – the more information you give them, the less you will be bombarded with calls and emails questioning budget decision.
Finally, when you are all done, make sure you take some time for yourself to re-charge Budget season is very draining on a manager and usually comes around the same time as annual meetings and board elections so make sure when it’s all done to take time and unplug from work for a bit – you’ll come back a happier and more relaxed manager ��
CAI-FLA'S IMPACT ON COMMUNITY ASSOCIATION LEGISLATION
The Community Associations Institute Florida Legislative Alliance (CAI-FLA) had a busy year advocating in Tallahassee on behalf of the approximately 9,674,000 Floridians living in 3,855,000 homes in more than 49,420 community associations across the Sunshine State! Much of the legislation we saw introduced was in response to the situation with a South Florida community where board members were arrested on allegations of fraud and theft CAI-FLA knew the original drafts of the bills were incredibly detrimental for associations, and legislators made it clear to us that the bills were going to be passed in some form In response, CAI-FLA worked hard to make these bills a little more bearable While we still have many concerns about the negative effects the bills may have on community associations, the result was a marked improvement from what was originally anticipated. CAI-FLA is planning on addressing lingering concerns in the upcoming legislative session and will continue to advocate for Florida’s community associations, their members and business partners.
With that said, we wanted to take a moment to reach out to you directly with the highlights of what was passed in 2024:
Changes applicable to Department of Business and Professional Regulation-
Adds power to investigate conflicts of interest; failure to respond to written inquiries & to remove officers or directors for accepting kickbacks, use of debit cards for personal expenses, abandonment of office or when charged with a crime
Enhanced penalties for willful / repeated violations
Websites are required for condos with 25units or more
SB 50 / HB 59 HOA RULES AND COVENANTS
What’snewforHOAs?
Distributerules/covenantsby10/1/24toallowners Furnishnewownerswithrules/covenants Mayuploaddocumentstowebsite–withnoticeof postingsentelectronicallyorviamail
CS/CS/HB 1021 COMMUNITY ASSOCIATIONS
Changes applicable to Managers-
Return all official records within 20 business days Disclose all conflicts of interest andinclude conflict disclosures on all contracts, meeting agenda & minutes
Enhanced penalties for willful / repeated violations Websites are required for condos with 25units or more
Changes applicable to official records-
Association obligated to make good faith effort to obtain and/or recover records absent from inventory Association must furnish checklist of records made available for inspection- Checklist must identify any requested records not made available during inspection; Checklist must be retained for 7 years
HB 1029/ SB 1366 MY SAFE FLORIDA CONDOMINIUM PILOT PROGRAM
Programwebsite-https://msflh.com/condos/
Theprogramcoverscondominiumslocated within15milesinwardofacoastline Grantsmustbematchedbyassociations.For roof-relatedprojects,themaximumgrant awardis$1,000perunit,andforopening protection-relatedprojects,it'samaximumof $1,500perunit Thetotalgrantawardper associationcannotexceed$175,000
Theprogramisintendedtoprovidelicensed inspectorstoperforminspectionsforand grantstoeligibleassociations,asfunding allows Associationsmustreceiveapprovalbya majorityvoteoftheboardofadministration ortotalvotingintereststoapplyfor inspectionsorgrants.Unitownerscan participatethroughassociation-awarded grantsbutnotindividually Associationsmustprovidedetailed applications,includinginformationon contractorsandcommitmentstocomplete mitigationimprovements.Applicationsmust benotarizedandsignedbytheboardof administration
Changes for association operations-
Must hold board meetings at least quarterly and allow members to ask questions aboutStatus of construction projects; Revenues and expenses for current fiscal year
Requires all directors to attend education sessions- Initial session is 4 hours; Yearly 1 hour updates required; Certificate valid for 7 years of continuous service; Must certify annually that all directors complied 8 hours of education annually for directors from communities with more than 2,500 parcels
Leave office if charged with criminal offenses concerning the HOA
Officers and Directors Must-
Complete mandatory education covering financial operations/transparency, recordkeeping, fining process and meeting notice requirements- 4 hours of education annually for directors from communities with less than 2,500 parcels; 8 hours of education annually for directors from communities with more than 2,500 parcels
Leave office if charged with criminal offenses concerning the HOA
Changes to parking/vehicle regulations-
Cannot prohibit parking personal vehicle (including pick-up truck) in driveway or other parking area
Cannot prohibit owners, tenants, guests or invitees from bringing or parking work vehicles in the community
CS/CS/HB 1203 HOMEOWNER ASSOCIATIONS
HOAs Must-
Post official records on a website (communities with 100 or more parcels) by Jan. 1, 2025
Furnish documents or provide access to law enforcement within 5 business days of receipt of a subpoena
Obtain an annual audit (communities with 1,000 or more parcels regardless of income) Stop use of any HOA debit cards
Officers and Directors Must-
Complete mandatory education covering financial operations/transparency, recordkeeping, fining process and meeting notice requirements- 4 hours of education annually for directors from communities with less than 2,500 parcels;
Changes to fining-
HOA cannot levy fines for- Leaving garbage receptacles out less than 24 hours before or after the designated garbage day; Leaving holiday decorations or lights up, unless they have not been removed after 1 week after the association provides written notice. New procedures for fines- Hearing must be held within 90 days of notice; Cannot collect fine if violation remedied within time frame in notice or before hearing; Cannot require payment less than 30 days from notice that fine approved; Must furnish person sought to be fined with written committee finding within 7 days of hearing; Must furnish instructions for payment of fine or compliance with suspension of use rights
SB 600/HB 293 HOA HURRICANE PROTECTION
AmendsSection720.3035asfollows-
HOAsmustadopthurricaneprotection specifications
HOAcanrequireownertoadheretoexisting unifiedexteriorbuildingscheme
HOAscannotpreventanownerfrominstalling hurricaneprotectionthatconformtothe specificationsadoptedbytheHOA
Defines “hurricane protection” to include roof systems recognized by the Florida Building Code, storm shutters, impact resistant windows/doors, reinforced garage doors, erosion controls, generators, and fuel storage tanks
Thank you for your support this year during an eventful legislative session! Please keep an eye out for future advocacy opportunities as we get closer to the next legislative session, and please reach out togovernment@caionline.orgwith any questions.
Sincerely,
Community Associations Institute Florida Legislative Alliance
HOW TO STAY ON YOUR TOES WHEN YOU’RE DEPOSED
By: David M. Milton, ESQ.
You’re a board member or a community association manager, and, after months or even years of effort, your association is running smoothly: your meetings are efficient, and your vendors are reasonably priced and performing well. And then, out of nowhere and to everyone’s dismay, your association ends up involved in a lawsuit
You don’t want to sit for a deposition, but despite your association’s attorney’s best efforts, your deposition has been scheduled and you’ve received a formal notice of deposition * Sitting for a deposition can be intimidating; at the very least, it’s anxiety-producing. These few tips can help you alleviate some of that anxiety
First, speak with your association’s attorney to discuss the issues that are likely to come up in your deposition, and then review any relevant documents. Preparation is essential. In addition to preparation, here are three general principles that can help your deposition to be as painless as possible.
1. Tell the truth
This is the first and most important pointer The truth can be hard because it might seem like the truth will hurt the association, but the truth will keep you out of trouble, and good attorneys can (like Tom Cruise in A Few Good Men) handle the truth.
There are a few statements that, at first blush, might not look like the truth but that, in fact, be true truth: a) I don’t know, and b) I can’t remember. If either of those statements is true, don’t be afraid to make them – and stick to them, especially when the attorney asking the questions tries to make you feel dumb or illinformed for not knowing or not remembering.
2. Don’t try to be an expert
One of the ways some lawyers try to trick witnesses is to ask questions that require expertise to answer. For example, they’ll ask detailed questions about construction defects. Although you could say you saw stucco cracks or heard other people mention cracks, you don’t have the evidence or expertise to explain why the stucco cracks exist or what damage (existing and future) the stucco cracks are causing Let the experts offer their expert opinions; you can do this by saying you’re deferring to the association’s expert(s)
Another trick some lawyers will employ is to ask – in a roundabout way – for an interpretation of a legal document like a contract or an association’s governing documents
While you might recognize a contract or the association’s governing documents (facts you can acknowledge, if true), it may constitute the unlicensed practice of law to interpret those documents If a question feels like it would require a legal interpretation, you can respond by saying that you can’t provide a legal interpretation and will defer to the association’s attorney for any interpretations
3. Do your best
Nobody – not even experts who are involved in lawsuits regularly – gets everything right all the time Some attorneys will try to intimidate you into speculating or changing your answer but don’t get rattled. If you do give an answer that requires clarification, your association’s attorney will have the chance to ask questions to get that clarification. Just do your best.
Serving on an association’s board or as its manager is a hard, and often thankless job, but your association will be better off because of your effort
LOOKING FOR A NEW JOB?
Please log in to the Suncoast CAI portal and visit the Job Board.
POLITICAL RUMORS
By: Louis Orloff, CAI-FLA Homeowner Delegate
The recent article from 9/9/2024 in the Herald/Times Tallahassee gives a good outline for this discussion:
This is an election year. Historically nothing gets done until after the November vote count is done.
However, there are some people who are not up for reelection, and they are already warming up albeit for next session.
This is an election year Historically nothing gets done until after the November vote count is done
However, there are some people who are not up for reelection, and they are already warming up albeit for next session
DeSantis urges Legislature to quickly help condo residents with ‘crushing assessments’
Gov. Ron DeSantis on Monday said Florida lawmakers should take action this year to address a condominium crisis that could see owners priced out of their homes, striking a more urgent tone than just a month ago when he deferred to legislators about whether such action was needed.
So, while the Governor seems to think something needs to be done, he is not calling a special session and the legislators are not rushing to do so either
“We do need to do something this year,” DeSantis said at a news conference in Miami Lakes.”
“This is not something that we can put off until next March or April. I think there are a lot of looming deadlines, and we have to have a plan forward to keep people in their units if that is what they want to do.”
Deadlines. Structural Integrity Study no later than 12/31/2024. The results of that study will indicate what the financial burdens will be for the unit owners. Association boards will need to re-do budgets when they get the new information and there may be some new assessments So, let’s look at some real immediate cost drivers
A Insurance – increased rates Understand that insurance is a giant trampoline surround the earth. A tornado in Kansas raises rates in Florida and everywhere else that is covered by insurance. The insurance industry is intertwined, holding hands like the springs on a trampoline absorbing risk
B Insurance – mandating replacements of roofs
This may be something that the State Insurance Commissioner can fix. Or since insurance adjusters are not necessarily qualified to judge the lifespan of a roof, perhaps this is a battle left for the courtroom.
Associations could face millions of dollars in repairs. Increasingly, condo owners are anxious about shouldering hefty special assessments and higher monthly fees that could force them out of their homes.
c Unit owners who have not wanted to maintain their properties and have waived saving money in reserves will now need to pay up 98 people died at Champlain Towers Some of them voted to not raise fees to fix the building and others bought units and were not given information about the structural problems The new version of Chapter 718 goes a long way to fixing the later situation
“I think there are some things that need to be done,” DeSantis said. “I don’t know that every single repair will prevent a Surfside, that’s just the reality. So why would we want to be forcing people to have to make a choice to leave based on repairs that may need to be done but may not need to be done in this instant or may be able to be done over a period of time where you can absorb the cost better.”
Our pollical leadership needs to delay pandering We are still waiting for the Florida Building Commission’s report on what standards of inspection should even be followed in a SIRs study Statute requires a fully funded PLAN to exist based upon these reports. Many items are not going to need to be replaced for years The difference is that reserve funds must be put into place and cannot be waived, so that when the money is needed for the repairs it will be there If on the other hand, the balconies are hanging loose on the building façade and no reserves exist, then that association is going to have to take action to raise funds.
And political rumor, the Senate leaders have tried now over the last 5 years to put in place some financial options and have been blocked every time by the House. Unless the House leadership or the Governor want to actually put something into law that will help associations make better financial decisions, I doubt we will see anything happen until 2025
In the meantime, if you have a burning question or rumor you have heard that needs an answer. Get started with your discussion athttps://exchange.caionline.org/home (you must be signed in) Then, click Communities in the top toolbar, choose My Communities, and click on Florida Chapters Community. Let’s start a conversation together.
THANK YOU
2024 SUNCOAST SPONSORS
2024 DIAMOND CHAPTER SPONSORS
BASHOR & LEGENDRE, LLP, CPA's
BLUE STREAM FIBER
2024 GOLD CHAPTER SPONSORS
ACENTRIA INSURANCE
ACPLM, INC
GORDIAN STAFFING
McGRIFF INSURANCE SERVICES
MUNYAN PAINTING & RESTORATION
RESOURCE PROPERTY MANAGEMENT
USI INSURANCE SERVICES
2024 PLATINUM CHAPTER SPONSORS
ALLIANCE ASSOCIATION BANK
BLACKROCK ASPHAULT COMPANY
BURG SIMPSON ELDREDGE HERSH JARDINE, P.C.
CADENCE BANK - ASSOCIATION SERVICES
CONDOMINIUM ASSOCIATES
FIRST PRIORITY RESTORATION
GREENBERG NIKOLOFF, P.A.
KARINS ENGINEERING GROUP, INC
MANAGEMENT AND ASSOCIATES
PINNACLE FINANCIAL PARTNERS
P&R PROCOATINGS, INC
RABIN PARKER GURLEY, PA
VALLEY BANK/INSURANCE SERVICES
YARD-NIQUE
BECKER AND POLIAKOFF
BILLER REINHART ENGINEERING GROUP, INC.
MARSH MCLENNAN AGENCY
ISLAND PAINTING & WATERPROOFING
MITCHELL INSURANCE SERVICES
PCS INSURANCE GROUP
POPULAR ASSOCIATION BANKING
REALMANAGE
ROSE PAVING
RUSSELL LANDSCAPE
SAFER HOME SERVICES
SHERWIN-WILLIAMS
UNITED FIRE PROTECTION