The Community Connection - August 2023

upcoming events

September 14 - RFP Program

contact information

10950-60 San Jose Blvd., #182 Jacksonville, FL 32223

ced@neflcai.com

2023 board of directors

President - Leslie Pragasam, CMCA, EBP

Business Partner

First Coast Mulch

President-Elect/Interim Treasurer -

Zenzi Rogers Manager

Lennar

Secretary - Kate McAdams, EBP

Business Partner

Performance Painting, Business Development

Director - Pilar Willis Dixon, CIC, CIRMS

Business Partner

Brown & Brown Insurance

Director/Past President- Jesse Martinez-Skinner, CMCA, AMS, Manager

Associa CMC Jackonsville

Director - Catie Marks

Manager

May Management

Chapter Executive Director - Robin Miller

NEFLCAI

NEFLCAI provides education, networking, resources, and advocacy for Community Associations in Northeast Florida and the professionals who serve them.

October 13 - Escalation: Enforcement of Your Government Documents

November 10 - De-escalation

November 30 - Monte Carlo Casino Night

Winter Gala

2023 committees

Membership

Pilar Willis Dixon - Board Liaison

Alanda Williams - Chair

Social

Catie Marks - Board Liaison

Amy Newhouse - Chair

Programs

Zenzi Rogers - Board Liaison

Ashleigh Northrop - Chair

EXPO

Kate McAdams - Board Liaison

Frank Prescuitti - Co-Chair

Patty Truax-Stewart - Co-Chair

COMMUNICATIONS

Robin Miller - Executive Director/Editor

Brooke Hassan - Co-Chair

Tara Tallaksen - Co-Chair

GALA

Stacy Montoya - Co-Chair

Joshua Donlon - Co-Chair

If you're interested in being on a committee for 2023, we'd love to have you.

Please reach out to our Executive Director Robin Miller to get connected.

ced@neflcai.com

letterfromthe president

Dear Members,

As we embrace the peak of summer, I'm delighted to present the August edition of The Community Connection magazine. At the time of publication, I also hope everyone is doing okay with Hurricane Idalia.

This month's theme, "A is for August," brings forth a wealth of insights tailored to our HOAs:

Amenities: Discover innovative ways to enhance the offerings that make our communities shine, ensuring residents enjoy a truly exceptional living experience.

Affordability: Uncover strategies to balance fiscal responsibility with community aspirations, safeguarding both financial stability and resident satisfaction.

Architectural Guidelines: Dive into the realm of architectural harmony, exploring guidelines that preserve the unique aesthetics and charm of our neighborhoods

Athletics: Explore the vital role of sports and recreation in fostering vibrant community spirit, and learn how to create spaces that promote health and togetherness.

Alignment for a Healthy Work-Life Balance: Delve into maintaining equilibrium in our modern lives, with insights on fostering wellness and connectivity within our bustling communities.

Aquatics: How to keep residents happy while maintaining beatiful aquatic features.

I invite you to immerse yourself in the enriching content our magazine offers this month. Let the wisdom shared empower our HOAs to flourish as we continue to cultivate thriving, balanced, and harmonious neighborhoods.

But that's not all – I'm thrilled to share some exciting upcoming events that you won't want to miss!

Save the Date! Monte Carlo Themed Holiday Gala – November 30:

Mark your calendars for a night of glamour and enchantment at our Monte Carlo Themed Holiday Gala on November 30.

Apply for the Outstanding Neighborhood Awards: We believe in celebrating the achievements that make our community truly outstanding. If your neighborhood has been implementing creative initiatives, fostering unity, or driving positive change, we encourage you to apply for the Outstanding Neighborhood Awards.

Many thanks to all of you. I'm grateful.

-Leslie

As an additional sponsor benefit, click on each sponsor's ad to be taken to their website and learn more about their company.

Articles in this publication are courtesy of individual and company contributors and are independent views of that company.

Leslie Pragasam First Coast Mulch President - 2023

Zenzi Rogers Lennar President -Elect/ Interim Treasurer -2023

Liaison to the Programs Committee

Kate McAdams Performance Painting Secretary- 2023

Liaison to the EXPO Committee

2023 Committee Chairs

Robyn Severs, Esq., Legislative Action Committee Chairperson

Becker Alanda Williams Membership Committee Chairperson

Manin Construction

Frank Prescuitti

EXPO Committee Co-Chair Koehn Outdoor

Patty Truax Stewart

EXPO Committee Co-Chair Associa of Jacksonville

Jesse Martinez-Skinner CMCA, AMS Associa CMC Jackonsville

Board Member at Large2023

Chair of the Nominating Committee

Pilar Willis Dixon CIRMS

Brown & Brown Insurance

Board Member at Large/Immediate Past President - 2023

Liaison to the Membership Committee

Catie Marks May Management

Board Member at Large2023

Liaison to the Social and Gala Committees

Ashleigh Northrop Programming Committee Chairperson

Sentry Management

Tara Tallasken Communications Committee

Co-Chair

Robin Miller Northeast Florida Chapter of CAI

Executive Director

Meet the 2023 NEFLCAI Board of Directors

Vesta Property Services

Brooke Hassan Communications Committee Co-Chair

Vesta Property Services

Stacy Montoya

Gala Committee Co-Chair

Martex Landscape

Joshua Donlon

Gala Committee Co-Chair

Ball Janik

Welcome to our new members since May 1.

Marie Baker, Amelia Island Plantation Community Association, Volunteer Leader

Miranda Blankenship, Manager

Daniel Brazzano, Brazzano Real Estate and Management, Manager

Christopher James Carasella, CMC-Jacksonville, Manager

Patricia Corrigan, Beau Rivage of Jacksonville, Volunteer Leader

Gustavo Diaz, Hugus, Inc., Business Partner

Anna Green, CMC-Jacksonville, Manager

P. S. Hoover, CMCA, AMS, Association Management Team, Manager

Mary jo Kilcullen, 1951 Market Condominium Association, Inc, Volunteer Leader

Bonnie Mackenzie, CMC-Jacksonville, Manager

Brandon Chase Mills, McGriff Insurance Services, Business Partner

Nicole Parrish, Atlantic Southern Paving and Sealcoating, Chapter BP

Harold Shailer, Volunteer Leader

Nathan W Simkonis, Mor-Sports Group, Inc., Chapter BP

Will G. Simons, RS, Association Reserves, Chapter NATL

Logan Stanko, Hydro-Kleen Pressure Washing, Business Partner

Koriann Tasnady, CMCA, May Management Services, Inc., Manager

Monica Tindall, Volunteer Leader

Misty Torres, Horizon Realty Management, Inc., Manager

Richard Worth, BuildingLink.com, Chapter NATL

"A"menities: Tips to Determine How Your HOA Clubhouse Can Be Used

Our association is considering allowing instructors to give exercise classes in our clubhouse. What should we consider?

by: Thomas Moriarty, HOA Resources

There are numerous considerations when allowing third parties to use a common area clubhouse to provide classes or other services. However, it is the facilitation of exercise classes that raises the most concern.

First, there’s a risk that the facility would be considered a health club or gym. For example, in Massachusetts that would mean that at least one automated external defibrillator must be located on the premises. Of course, one exercise class does not mean the clubhouse will be

considered a health club, but the question should be analyzed and answered.

Additionally, whether the classes will include the public must be considered. If the public is invited, the clubhouse would likely be a public location that must comply with the Americans with Disabilities Act. Compliance can be expensive, and a failure to comply can expose the association to lawsuits, administrative proceedings, and penalties.

As a party responsible for the management

and maintenance of the facility, the association could be liable if a person is injured. The board should ensure that the clubhouse space is fit for the intended uses it is contemplating. Also, as no level of inspection or maintenance can guarantee a user will not suffer an injury, the association should require all participants to sign a liability waiver. The waiver should separately release the association and should include a statement to the effect that the association does not make any representations about the qualifications of the instructor or services provided. The board also should check with its insurance agent to make sure the use is covered. Furthermore, I would ask the instructor to indemnify the association in the event it gets sued for anything related to the exercise class. If the instructor is to be paid, the association should confirm that this does not impact whether insurance coverage will be available under its general liability policy. It also should be discussed with the insurance carrier whether the board has workers’ compensation available to cover the instructor.

But We Can't "A"fford It! But We Can't "A"fford It!

by: Kelly Richardson, HOA Resources

Homeownership entails dealing with occasional unanticipated expenses. Recently, I didn’t plan on a main water line breaking, but it happened. Days (and much money later), the problem was resolved. I didn’t want the expense, but it happened. I couldn’t say to the water company or my neighbors, “I’m sorry, I can’t stop this flooding right now, I can’t afford it.”

HOAs are a collection of interconnected homeowners, and major common area repair expenses affect them all. One of the many benefits of HOA living is that homeowners share costs of keeping up the HOA community, with economies of scale usually reducing the individual cost. The association’s duties are really nothing more than the individual homeowner has – they’re just shared.

I hear frequently from readers that the HOA needs replacement or repair of building components, but the HOA “can’t afford it this year.” However, nothing in the Davis-Stirling Act references financial hardship as an excuse from any of its requirements. Here is a quick review of some major requirements.

Maintenance – Civil Code Section 4775 requires HOAs to maintain and repair common areas. Nothing in that statute says “if the finances are in order,” or “if the money is in the budget.” Leaky roofs or pipes or unsafe balconies need to be repaired. Just like the individual owner who has to dig up their water supply line, it has to be done. Delay almost always makes things worse.

Termite treatment and repair – Civil Code 4780. Condominiums, stock cooperatives and community apartments are required to deal with termite prevention and damage repair. The statute does not have an exemption for times in which the HOA funds are low.

Balcony inspection –HOAs must complete inspection of “elevated vertical elements” no later than January 1, 2025, and to repair anything found which could be a safety threat. The statute, Civil Code Section 5551, does not mention ability of the HOA to pay for the inspection or repairs.

Assessments – Civil Code 5600(a) – “the association shall levy regular and special assessments sufficient to perform its .

obligations,” which means that HOAs are required to budget for its reasonably anticipated costs of operation – not its hope-for costs but its anticipated costs. Target-based budgeting, in which the board dictates to its manager what assessment increase to budget for, has the process backwards and violates this legal requirement.

Reserves – Associations should set aside money to offset the ongoing deterioration of common area components which the HOA replaces or repairs. Some HOAs skimp on those savings contributions to reduce pressure on assessments, but that means the HOA is quietly slipping into debt. The reserve fund can also be a very valuable emergency fund from which the HOA can borrow for up to one year, during which

time the HOA can rearrange its finances (as would any homeowner experiencing major unexpected expenses).

Emergency assessments – The law allows HOAs to deal with major surprises. Civil Code Section 5610 allows boards to pass emergency assessments to deal with major expenses which were unanticipated when the last budget was prepared. That must be accompanied by a written board resolution explaining to the membership why the emergency assessment became necessary.

Homeownership, including shared ownership, involves occasionally unavoidable expenses. Those expenses are best addressed head on, since they don’t go away or diminish with time.

by: Marc Markel, HOA Resources

We are rewriting our architectural guidelines. What are some definitions and standards for “reasonable” xeriscaping?

What I often ask clients is, “What would someone think is reasonable after hearing the facts and not being involved in the emotion of the decision? Also, what would the neighbors think?” The best thing to do is to have guidelines as to what is appropriate and what is not. Having town meetings to discuss alternatives is always a good idea.

The Texas property code states that a property owners association may not include or enforce a provision in a dedicatory instrument that prohibits or restricts a property owner from using droughtresistant landscaping or waterconserving natural turf.

The association can regulate the type of turf to encourage or require the use of water conservation. The code also permits the association to regulate the installation or use of gravel, rocks, or cacti. The code further authorizes the association to regulate the installation of efficient irrigation systems, including establishing visibility limitations for aesthetic purposes.

The code permits the association to require an

owner to submit a detailed description or a plan for the installation of drought-resistant landscaping or water-conserving natural turf for review and approval by the property owners association to ensure, to the extent practicable, maximum aesthetic compatibility with other landscaping in the subdivision.

A property owners association may not include or enforce a provision in a dedicatory instrument that prohibits or restricts a property owner from using drought-resistant landscaping or water-conserving natural turf.

A property owners association may not unreasonably deny or withhold approval of a proposed installation of drought-resistant landscaping or water-conserving natural turf or unreasonably determine that the proposed installation is aesthetically incompatible with other landscaping in the subdivision.

If you would like help developing reasonable guidelines, the best source would be an experienced landscape architect and your association counsel.

"A"rchitectural Guidelines to "A"rchitectural Guidelines to "X"eriscaping! "X"eriscaping!

7 Alignment Tips 7 Alignment Tips 7 Alignment Tips for a Healthy for a Healthy for a Healthy Work/Life Balance Work/Life Balance Work/Life Balance

by: Leslie Alvarez, CMCA, AMS, LSM, PCAM

These past several years have been indescribably stressful for everyone. Economic concerns after a year’s long pandemic, lack of socialization, mask-wearing, and general fear and anxiety have only increased the slow erosion of kindness and empathy we have seen devolve over the past few years.

In our business, verbal and written abuse have reached new, unacceptable levels, and basic respect and common courtesy are no longer so common. We are told not to take the job personally, but it is personal. It's our livelihood. It's our reputation. It's our name. It is very hard to not take insults and rudeness personally. Our health takes a toll.

One time I lost 20 pounds in less than six months due to the stress of a position, and I have seen and experienced other managers suffering other stressinduced health issues. I believe it's time for some important behavioral changes in the industry. We need a significant focus and shift to ensure community managers are treated with respect and courtesy. It all starts with setting reasonable boundaries for your mental and physical health. If more of us do that, we can start a movement and create real industry change for the next generation of community managers.

Here are a few boundaries to establish to maintain a healthy work-life balance:

1) Establish an appointment-only policy. Many times, residents will stop in the office and demand to see the manager. They wouldn't do this to their cardiologist or attorney. Yet, with us, they have no hesitation. Establish the fact that you are a professional and require appointments. If your board opposes this concept, you can offer a schedule of "open-door" hours where walk-in traffic can access you freely.

2) Establish a weekly update meeting. Oftentimes, we spend hours meeting with every director. They pop into the office for just a couple questions, and our morning is blown. This repeats itself with each director. The bigger the board, the more our week can get blown away bit by bit. However, we can take control by scheduling a recurring weekly meeting with board members to give updates on pending projects and priorities for the week. This is not considered an official meeting. Ideal participants are the president and the treasurer.

3) Schedule as many board meetings and committee meetings as possible during business hours. This may be a challenge for board members who have full-time Jobs. However, when you serve on the board for a professional nonprofit organization like the United Way or Red Cross, your meetings are not at 7 p.m., and certainly are not on the weekends.

4) When you leave the office, leave the office. Establish the understanding with your boards that while you are available for an emergency, you are not available for everything that strikes their fancy to talk to you about after hours. If you respond to a nonemergency email after hours, you are effectively training your board to believe you will respond, and they will have an expectation as such.

5) Manage your email. An organized email inbox is imperative to your success. In today's technological age, some things can be a quick phone call, text, or Microsoft Teams message. This helps to avoid bogging down everyone's emails for a quick conversation and avoids frustration and unnecessary delays when waiting for a response on something relatively easy.

6) Manage your time effectively. Time block for big

projects. Blocking time out to accomplish projects allows you to be focused on the actual task and project without feeling the need to multitask.

7) Prioritize your personal events. Make sure your personal schedule is a priority and is on your professional calendar. This way you won't doublebook yourself and miss important personal events.

Let's not just talk about change, let's go make it happen.

Leslie Alvarez, CMCA, AMS, LSM, PCAM is the manager of St. Andrews Country Club POA in Boca Raton, Florida and also provides consulting & education services to community association boards and managers through her company Community Association Consulting Experts.

LeslieAAlvarez@hotmai.com

Serving Fun and Community: Pickleball in Planned Communities

by: Vesta Property Services

A Social Sport that Fosters Connection

residents. In this blog post, we’ll delve into the world of pickleball and how its presence in planned communities is contributing to a healthier and more connected way of life.

The Rise of Pickleball

Pickleball, often described as a cross between tennis, badminton, and table tennis, has rapidly gained traction as the go-to sport for individuals seeking a combination of low-impact exercise and competitive fun. Its adaptable nature, played on a smaller court with lightweight paddles and a perforated ball, makes it accessible to players of various skill lev As this sport’s popularity has soared, planned communities have embraced it as a fantastic addition to their range of recreational offerings.

One of the standout features of pickleball is its ability to bring people together. Planned communities have recognized this and capitalized on the sport’s social nature to cultivate a stronger sense of camaraderie among residents. Pickleball courts often become hubs of activity, offering a space where neighbors can come together, challenge each other on the court, and build lasting friendships. The game’s doubles format encourages teamwork and collaboration, fostering a spirit of community that extends beyond the court.

Inclusive for All Ages

One of the most remarkable aspects of pickleball is its appeal across generations. While many recreational sports tend to skew toward specific age groups, pickleball effortlessly bridges the gap. In planned communities where residents span various age ranges, this inclusivity becomes even more valuable. Grandparents can share the court with their grandchildren, and newcomers to the game can

quickly find themselves absorbed into a welcoming pickleball community.

Fitness and Wellness Benefits

Beyond its social benefits, pickleball also contributes to residents’ overall health and wellbeing. The game offers a full-body workout that improves cardiovascular health, agility, balance, and coordination. In planned communities where leading an active lifestyle is encouraged, pickleball courts become a place where residents can engage in physical activity while having a blast. This aligns perfectly with the holistic approach that many planned communities take toward promoting wellrounded wellness.

Events and Tournaments

Pickleball enthusiasts in planned communities often organize events, leagues, and tournaments that infuse an extra layer of

excitement into the sport. These occasions create opportunities for residents to showcase their skills, bond with fellow players, and build a strong sense of community pride. As planned communities continue to innovate, pickleball tournaments may become annual highlights, drawing participants from both within and beyond the neighborhood.

Pickleball’s meteoric rise in popularity is no surprise, given its combination of physical activity and social engagement. In planned communities, its presence serves as a catalyst for deeper connections, healthier lifestyles, and an overall sense of togetherness. By incorporating pickleball courts and events, planned communities are not only providing residents with a dynamic recreational outlet but also fostering an environment where bonds are forged, memories are made, and the joy of living well is celebrated.

by: Brendon Donnelly, Aquatic Specialist & Business Development Consultant at SOLitude Lake Management and HOA Treasurer

Managing a community involves a lot of moving parts, and for most community managers, dealing with complaints from residents is one of their least favorite responsibilities. When left unmanaged or improperly managed, lakes and stormwater ponds can be a common source of these complaints. Nuisance weeds and algae, bad odors, fish kills, muck, erosion, and other eyesores are just a handful of the issues that can affect aquatic ecosystems and aggravate the people who live around them. And while finding solutions can be simple, getting homeowners on the same page can be one of the most challenging parts of the job.

When lake and pond problems begin developing, complaints are usually first raised by the people living near the main inflow of the waterbody where excess nutrients, pollutants, and debris first enter the system. This area may be more prone to water quality imbalances that fuel nuisance growth and degrade the ecosystem. It’s important for communities to get ahead of these imbalances early before they create bigger problems, but

homeowners who are not experiencing weeds and algae downstream, or who do not live on waterfront properties, may not support the use of funds towards lake and pond maintenance or may not agree with the solutions that have been chosen by community leaders.

Often, this stems from a lack of understanding. Most people are unfamiliar with the science behind freshwater management and are not aware of the far-reaching impacts lakes and stormwater ponds have in residential communities. Some people don’t even realize that stormwater facilities exist in their communities in the form of dry basins. It’s up to community managers to close this education gap. This involves teaching residents about the important functions of stormwater ponds, the value they provide to every homeowner, and why investing in their health is an investment into the community as a whole.

An excellent place to start is by educating board members who can disseminate knowledge and

resources to the rest of the community. Decision makers not only need to understand how community waterbodies work to collect stormwater runoff, but they should also be aware of the potential legal and safety issues that can arise from poorly managed systems. Clogged stormwater equipment can result in flooding that endangers residents and can cause significant damage to landscaping, outdoor amenities, and community infrastructure. Crumbling shorelines create hazards that can lead to falls and accidents. Warm, stagnant water can become a breeding ground for annoying, disease-carrying mosquitoes. With the support of a lake management partner, community managers can better educate board members and residents.

Once most residents are on board, disagreements over management styles are still common, with some residents in favor of all-natural and “do-ityourself” remedies like beneficial bacteria or handpulling weeds. These can be helpful solutions when used as part of a comprehensive management program, but they are not always effective in addressing more systemic issues like erosion and sediment build-up, and can end up costing communities valuable time and funds in the long run. Though it can be difficult to resist the pressure to provide instant gratification to complaining residents, it’s important to prioritize effective longterm solutions like dredging.

Every waterbody fills with organic material over time, reducing its capacity to hold and filter stormwater runoff before releasing it downstream. Though this is a natural process, it can occur much faster in lakes and ponds that are not proactively managed. During dredging projects, hundreds to thousands or millions of pounds of nutrient-rich muck, sediment, and debris are removed from the waterbody to restore depth and create a clean slate for a healthier, more balanced ecosystem. Though dredging lacks the ‘wow’ factor of painting the club

Every waterbody fills with organic material over time, reducing its capacity to hold and filter stormwater runoff before releasing it downstream. Though this is a natural process, it can occur much faster in lakes and ponds that are not proactively managed. During dredging projects, hundreds to thousands or millions of pounds of nutrient-rich muck, sediment, and debris are removed from the waterbody to restore depth and create a clean slate for a healthier, more balanced ecosystem. Though dredging lacks the ‘wow’ factor of painting the club house or replacing tennis courts, it can have a significant impact on the health and safety of community waterbodies.

Unfortunately, many communities are far past due for dredging. This is often due to lack of awareness; however, in some cases, previous leadership may be to blame for ignoring growing sedimentation problems and leaving them for the next community manager to deal with. This can cause significant financial strain to residents, as dredging costs can be high and communities may have to raise dues to fund the urgently needed work. However, ignoring the problem may result in exorbitant damage that leads to the downfall of a community. In fact, it has become increasingly common for residents to take legal action against previous property managers for neglecting this important duty.

Community managers that find they have inherited a neglected waterbody should not be deterred –they have the unique opportunity to become champions of their community by educating shareholders about the importance of proper pond management and the value it adds to every home. By addressing issues effectively and promoting the benefits of well-managed lakes and ponds, they can avoid being a scapegoat and instead become the champion that their community needs.

Closing the education gap also includes teaching

residents about environmental stewardship and the personal impact each individual has on local waterbodies. Reducing the use of lawn and garden fertilizers, properly disposing of trash and pet waste, and bagging grass clippings and yard debris can help prevent pollutants from exacerbating water quality issues. As residents become more informed and involved in the maintenance of their community waterbodies, the more they will come to appreciate the dedication of community leadership.

Ultimately, the key to successfully fielding resident complaints is by becoming an educator. When residents understand the complex science behind lake and pond management, they are more likely to

support proactive maintenance strategies that prevent water quality issues, algae, weeds, and other problems – before they can become a source of complaints. Community managers that embrace this role can bring communities together, improve the desirability of their association, and cement their reputation as a trustworthy and capable leader.

SOLitude Lake Management is a leading environmental firm specializing in the sustainable management of lakes, stormwater ponds, wetlands, and fisheries. Learn more about this topic at www.solitudelakemanagement.com/knowledge.

2024 Budget Allocation: 3 Things Condo Associations Must Include

by: Tammy ZuknickI, American Momentum Bank

It’s approaching that time of year again: budgeting season. The time homeowners and condominium associations take a look at how their financials are faring in 2023 and what they need to plan for in 2024.

Budgeting can be tricky any year. But as condo associations work on 2024’s budget, they will need to be especially attentive and strategic. That’s because a few major factors recently have come into play that will significantly impact financial planning and management for many condo associations in Florida.

Below are three things condominium associations must include in next year’s budget and why.

Fully funding reserves to meet the requirements set forth in the new Building Safety Act for Condominiums and Co-Ops.

Florida Governor Ron DeSantis signed Senate Bill 4-D into law during a special legislative session in May 2022. The new Building Safety Act for Condominiums and Co-Ops aims to prevent another tragedy like the 2021 condo collapse in Surfside, Fla., in which 98 people lost their lives.

Most of the provisions of the law will take effect in 2024.

One provision is that recertification – inspection to determine a building’s structural and mechanical safety – will be required for condo buildings three stories or taller after 30 years - or 25 years if the building is within 3 miles of the coast - and every 10 years thereafter.

For example, if your three-story Orlando condo building is 30 years old in 2024, it will be required to undergo recertification next year, and again in 2034, again in 2044, and so on.

The law also requires that if the inspection finds structural repairs are needed, work must begin within a year of the report. It further stipulates that condominium associations have sufficient reserves to pay for those structural integrity repairs and maintenance. (While a majority vote by owners could waive fully funding reserves in the past, this law now prohibits that option.)

Condo boards will also be prohibited from using reserve funds outside of their purposes.

The buildings requiring inspection the soonest will need to act the quickest to ensure their reserves will cover necessary structural integrity expenses to comply with the new law. Be sure to consider this during 2024 budgeting.

Funding back reserves to meet the new law’s requirements for future structural repairs and maintenance.

Similarly, the Building Safety Act for Condominiums and Co-Ops requires that condo boards have “structural integrity reserve” studies conducted every 10 years. These studies aim to determine how much money needs to be set aside for the community’s future repairs and maintenance.

The study must include expenses related to the roof, load-bearing walls, fireproofing and fire protection systems, plumbing, and any item with a deferred maintenance or replacement cost that exceeds $10,000.

In short, points one and two above mean that condo associations that have made a habit of financially kicking the can down the road will very soon lose the option to continue doing so. And, even associations that have been funding their reserves well up to this point may need to increase their 2024 budgets to cover future expenses and requirements set forth by the new law.

Funding an insurance deductible in the case of a major storm.

With the state’s insurance crisis continuing to push rates up, many associations have opted for a higher deductible to lower the monthly premium. This is an understandable approach to managing finances.

So, condo associations should have a solid understanding of when recertification is required for their community and plan future budgets appropriately, starting now.

However, we’ve also seen – most recently after Hurricanes Ian and Nicole last year – the financial challenges that can result after a storm

hits a community that hasn’t budgeted enough funds to cover its insurance deductible.

Often, bank loans are not available to cover insurance deductibles. This means these communities may need to levy steep special assessments to homeowners to meet the deductible and have necessary repairs made, which is hardly an ideal option.

When budgeting for 2024, consider the full picture of the community’s insurance situation, and reserve enough funds to cover the deductible fully.

Final thoughts

Between the new law and Florida’s insurance crisis, condo associations will need to be fully informed and proactive when budgeting for 2024. The ultimate goal is to increase reserve funding accordingly to protect the association's financial health and your homeowners’

investments.

In June, Governor DeSantis signed Senate Bill 154 to address and resolve issues that emerged from SB 4D. While working on the 2024 budget, consult with an attorney to ensure your association is prepared to comply with applicable laws and understands their impacts (as this article is not intended to provide legal advice).

Finally, communicate information about the new law and insurance industry changes, and what they mean, to unit owners. Communication and education are essential for a smoother process, especially in cases where boards need to increase budgets.

Tammy Zuknick is Vice President, Association Banking at American Momentum Bank. She can be reached at tzuknick@americanmomentum.bank and (941) 713-8523.

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