NE Florida CAI Chapter Vol. 6 Iss. 1

NEFLCAI.COM

VOL. 6 | ISS. 1

Northeast Florida Chaper Community Association Institute

THE COMMUNITY CONNECTION IN THIS ISSUE

Why Borrow?

A Technological Breakthrough in Pond Management An HOA’s Best “If Used By” Date Board Leadership - Strategic Planning for Communities Five Ways Communities Can Work Together to Stop Non-Violent Crime

Association Ledgers and the “Balance Forward:” Avoid Opening Pandora’s Box

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Contents

FIRST QUARTER 2019

FEATURES

09 Why Borrow?

When faced with large or unexpected capital improvement projects, it is often necessary for an Association to borrow funds in order to move forward.

By Josh Ormiston | Alliance Association Bank

DEPARTMENTS

09

15 Ask the Experts Mediation.

21 PCAM Expertise 28 Events

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The Future Is Here: A Technological Break-Through in Sustainable Lake & Pond Management

A new game changing technology will make the management of stubborn algae blooms a no-brainer with more long-lasting results that are beneficial for the environment.

By Bo Burns | SOLitude Lake Management

19 An HOA’s Best “If Used By” Date Understanding Your HOA’s Covenants and Restrictions Expiration Date, and Acting to Preserve or Revitalize Them

By Colby Keefe, Esq. | McCabe | Ronsman

24 Five Ways Communities Can Work Together to Stop Non-Violent Crime Non-violent crimes like burglary go unsolved due to lack of evidence. Learn how your community can work together to help stop this trend.

26 Association Ledgers and the “Balance Forward:” Avoid Opening Pandora’s Box Association accounting records must be properly kept and must comply with the law in order to collect delinquent assessments.

By: Robert L. Tankel, Esq. | Tankel Law Group

Presented by: Davis McKnight | Flock Safety

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

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a message

contact information

541 Sweet Mango Trail St. Augustine, FL 32086 www.neflcai.com info@neflcai.com 904-907-7234

2019 board of directors Catie Marks, President David Robinson, President-elect Patricia Truax-Stewart, PCAM, Treasurer Pilar Willis-Dixon, Secretary Jimmy Dycus, Immediate Past President Yvette Gurick, PCAM, Director Carmen Mazzeo, Homeowner Leader, Director Karen Foy - Chapter Executive Director

committees Membership - Mary Price; Board Liaison: Patricia Stewart/Karen Foy Finance - Patricia Stewart; Board Liaison Expo - Cindy Dunlop; Board Liaison Karen Foy Programs/Education - Ed Ronsman Social/ Gala - Melissa Rowe; Board Liaison - David Robinson, Karen Foy Legislative Action, Pilar Willis-Dixon & Robyn Severs, Esq.

newsletter Editor - Leslie F. Pragasam; Board Liasion - Jimmy Dycus/Karen Foy

from the president Hello and Happy New Year!

After three years on the board, I am extremely honored and humbled to have been selected to serve this association on the board and now as president - I have big shoes to fill. I deeply believe in CAI and its cause as it relates to homeowners, managers and business partners. As I see things, our three membership categories have one common goal: preservation of home values through the long-term success of a community. It is integral that each take their role seriously and know how to perform it effectively in order to maintain the integrity of the community association in which they live or work. CAI is the only body that unites these three interests and gives each the tools they need to excel in this niche space.

MEMBERSHIP will continue to be a motivating factor in all board decisions. We are proud to say we have overcome the 200-member hurdle! Mary Price, our newly appointed Membership Chair, has been a wonderful addition, fielding all of our new member inquiries and streamlining the application process! Together with the help of our executive director, Karen Foy, we look forward to seeing how this momentum positively affects membership numbers as the year goes on.

Last year we relocated our Expo and Education Day to the Renaissance Resort. Overall this move was a great success. All categories of members expressed satisfaction with the upgrade in accommodations.

We have already made great progress on planning our anchor events including The Expo and The Gala. The Expo will be held in April this year.

More information will follow in your weekly CAI email update.

Again, I am looking forward to everything 2019 will bring and am so excited to continue serving this chapter of CAI. I hope that my confidence in CAI will translate into a great year and an even more improved chapter. Should any member have any questions as the year continues, please feel free to reach out to me directly cmarks@mayresort.com.

Thank you, Catie Marks, President

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chapter news

Introducing the 2019 Board

NEFL-CAI proudly welcomes the 2019 Board of Directors! From left to right, Past President - Jimmy Dycus; CED - Karen Foy; President - Catie Marks; President elect - David Robinson; Treasurer - Patricia Stewart; Secretary - Pilar Willis Dixon (not pictured); Director - Yvette Gurick; Director - Carmen Mazzeo THE COMMUNITY CONNECTION EDITORIAL CALENDAR

Month Article/Submissions Due Ads Due April 2019 March 1, 2019 March 18, 2019 July 2019 June 3, 2019 June 17, 2019 October 2019 September 2, 2019 September 16, 2019 January 2020 December 2, 2019 December 16, 2019

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February 7-8, 2019

2019 Florida Leadership Forum

Sheraton Orlando North 600 N. Lake Destany Rd. Maitland, FL 32751 407.660.9000

February 28, 2019 Educational Event

Ocean Village Club 250 A1A South St. Augustine, FL 32080

March 28, 2019 Chapter Breakfast Meeting Jacksonville Golf & Country Club 3985 Hunt Club Road Jacksonville, FL 32224

April 25, 2019

7th Annual Expo

Renaissance Hotel World Golf Village 500 S. Legacy Trail St. Augustine, FL 32092

May 13-18, 2019

Educational Event Rosen Shingle Creek 9939 Universal Blvd.

Orlando, FL 32819 866.996.6338

Florida community managers, homeowners and association board members, and business partners will join together for an event that focuses on engaging in advocacy efforts and discussing legislative trends and hot topics that affect all aspects of community association living. You will​have the opportunity to hear from local and statewide legislative leaders, the Florida Legislative Action Committee and other respected legal experts.​ There will be something for everyone, to include those who live in, work for or provide services to Florida community associations. The Florida Leadership Forum will include two education programs – one from community managers and board members and other homeowner leaders as well as another program for business partners. ​

Join us for our first Educational Event presented by Ball Janik in which they will discuss “Construction Defects: Handling Issues Throughout the Life of Your Association” Please Check the Website for more details.

Join us for our monthly Chapter Meeting. Our tpoic will be Spring Cleaning.

8:30 AM - 9:30 AM

For more information, please contact Karen Foy at info@neflcai.com.

NEFL-CAI has a zero-tolerance policy regarding suitcasing. Any company suspected of suitcasing will be escorted from the building. For questions regarding this policy, please contact Karen Foy at info@neflcai.com.

Through shared perspectives, experience and knowledge, a strong peer network is one of the best resources for creating community legacies. Shape your future success and strengthen your personal and professional connections by meeting colleagues from around the world and building on their collective wisdom. The Annual Conference features plenty of opportunities to develop connections and expand your network with small-group interactions and large social events. Receptions, meetings, exchanges and ShopTalks offer a variety of venues for advancing ideas and cultivating the professional contacts that can be as critical to success as education and experience.

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calendar of events

For more information on NEFL-CAI meeting, upcoming events, or meeting sponsorship availability, please contact Karen Foy at info@neflcai.com or visit www.neflcai.com.

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Why

Borrow?

by Josh Ormiston Vice President, Alliance Association Bank, a Division of Western Alliance Bank

W

hen faced with large or unexpected capital improvement projects, it is often necessary for an Association to borrow funds in order to move forward. Oftentimes the accumulated reserve funds are not enough to cover the project and a one-time special assessment would be too onerous on the unit owners. However, aside from necessity it may actually be prudent for an Association to borrow funds when contemplating repair or improvement of the common elements. Borrowing is oftentimes considered taboo for organizations, but it may just provide the financial flexibility and reasonable means to distribute the cost of large long term projects to those who benefit from them.

Generally, a large percentage (if not all) of the common elements in an Association will last for longer than the ownership length of the property. According to the Federal Reserve Report on the Economic Well-Being of U.S. Households in 2014, the average tenure of homeowners is 15 years, while the median tenure is 12 years. With the construction materials being used today, structural elements such as roofing and siding can last upwards of 40 years. The common elements of an association can’t just be left to deteriorate as the associations have the obligation of maintaining and even enhancing the common elements of their community. In doing so, they provide a positive living environment for their members, but they also protect the financial investment each member has made by choosing to own property. The burden of paying for necessary or desired improvements to the community should not just belong to those who will be in the Association for the entire life of the improvements. However, should a short term owner be paying the entire cost for improvements that last longer than their tenure in the property will exist?

Utilizing financing is a way to spread the cost of common area improvements out over time, and is a way to address the issue of assigning the cost of improvements to those who are benefitting from them. If monthly assessments are increased to cover loan payments, the financial burden is spread out over the length of the loan. In this manner, a homeowner who sells their home a few years after completion of a capital improvement project will only share a portion of the financial burden. The new home owner would pick up where the prior owner left off. Thus the cost of maintaining/enhancing the community is more equitably spread over those community members that are benefitting from the financed project. If an Association felt so inclined, they could even offer members the option to pay their portion of the project cost up-front or to participate in the lending program. In this manner those who considered themselves longterm residents would have the option of avoiding interest costs. If this approach is used, all residents are given options that may make approving a large dollar project more palatable, and getting a loan may actually enhance the association’s chance of gaining community support.

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The Future Is Here: A Technological Break-Through in Sustainable Lake & Pond Management

Algae: it comes in many forms and colors. It’s slimy, stinky and can ruin the beauty and function of your community lakes and ponds. It’s also one of the oldest known organisms on this planet, which might explain its knack for survival, even under the toughest conditions. Over time, HOAs and property management companies have learned to pick sides when it comes to the safe eradication of stubborn and harmful algal blooms—some in favor of natural management techniques; others in support of applying EPA-registered algaecides to ensure the job gets done.

But this year, a new game changing technology will make the management of stubborn algae blooms a no-brainer with more long-lasting results that are beneficial for the environment.

Nanobubble aeration is a premium innovative technology designed to exceed the capabilities of traditional lake and pond aeration systems by providing up to 79,000x more oxygen!

Put simply, nanobubbles are like traditional aeration systems on steroids. Produced by compact on-shore generators, these ultra-fine bubbles are completely invisible to the eye and about 1 million times smaller than ordinary bubbles. As a result of their tiny size, nanobubbles have no natural buoyancy and do not rise to the surface of the water and burst like you might expect.

Amazingly, they remain within the water column for up to 2-3 months, providing unparalleled oxygenation to struggling lakes and stormwater ponds in your community.

The benefits of a continuously oxygenated lake or pond are enormous. First, oxygen is a key player in the battle against undesirable nutrients by facilitating the conversion of phosphorus to forms that do not sustain algae development. Excess nutrients can easily enter community lakes and ponds in the form of grass clippings, lawn fertilizers, trash, and droppings from dogs, geese and other wildlife. The presence of oxygen also helps to balance pH and other related water quality parameters that encourage the growth of fish, native organisms and beneficial phytoplankton – rather than detrimental bacteria like E. Coli, and cyanobacteria species that can be toxic to humans and wildlife and are believed to contribute to degenerative diseases like ALS, Alzheimer’s and Parkinson’s.

Another amazing benefit of nanobubbles? In addition to engulfing an entire aquatic ecosystem in concentrated oxygen,

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by Bo Burns, Biologist & Market Development Manager at SOLitude Lake Management

nanobubbles are negatively charged and, therefore, attracted to positively charged organic matter in the water column. When they connect with positively charged metals and pollutants, including dangerous cyanobacteria toxins, nanobubbles cause them to implode(!), holistically cleansing the waterbody from the inside out.

This innovative water quality solution did not just appear overnight. Nanobubbles have been used in the medical field, the oil and gas business, food preparation areas, and even the beauty industry for purification purposes.

Through many promising tests and trials, we’ve learned some exciting things: Property owners who utilize nanobubbles can expect to significantly reduce and even eliminate reliance on traditional algaecides. Nanobubbles have no negative impacts on fish and wildlife when monitoring and managing dissolved oxygen levels—in fact, research suggests nanobubbles help make fish more active, leading to better fishing and recreation. Nanobubbles help strengthen the health and longevity of the entire food chain, starting from the smallest beneficial organisms in your pond and ending with your family.

Nanobubble aeration isn’t just a quick fix or band-aid; it’s a custom, data-driven solution rooted in years of scientific study and first-hand monitoring experience. The technology doesn’t necessarily replace regular proactive management strategies, but it is truly one of the missing pieces to the puzzle of sustainable freshwater management. Used in conjunction with traditional tools like floating fountains, buffer management, mechanical hydro-raking and regular lake and pond inspections, nanobubbles can help keep your water resources healthier and prettier for much longer periods of time, while eliminating nuisance algae and dangerous cyanotoxins before they begin causing problems.

Nanobubble aeration is poised to transform the entire approach to management of lakes and ponds and will be an invaluable tool as urban development and undesirable nutrient loading continue to increase.

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Ask The Experts W. Jeff Earnshaw, Esq. Partner at Jackson Law Group

What Condominium or Homeowner Associations Should Expect at Mediation Condominiums and Homeowners Associations often participate in mediation either as part of a lawsuit or as an attempt to settle a dispute prior to litigation. Most Board Members have never participated in a mediation and usually have questions about mediation and the mediation process.

Here are some basics about what a Community Association should expect when facing an upcoming mediation.

Q A

What is Mediation?

The first thing to understand about mediation is just what it is and what it isn’t. Mediation is an alternative dispute resolution process where a neutral third-party (the Mediator) works with the Association and the other party to try to resolve the parties’ differences in a way that both sides can agree to. It is essentially a conversation, where each party shares their side of the dispute, and the Mediator tries to help them reach an agreement. A mediation is not a trial or hearing, and the Mediator is not a judge or jury. Instead, the Mediator facilitates the discussion about the sources of the dispute and the possible resolution. The benefit of mediation is that the parties are in control of the possible resolution so that it is not decided by a judge, jury, or arbitrator. In order to encourage the parties to be open and work together towards a settlement, the mediation is confidential, and nothing said or presented at mediation can be used against a party later or shared with anyone else.

Q

Who pays for Mediation?

A

The fees charged by the Mediator are generally split evenly by the parties, and each party is also responsible to pay the cost of their own attorney attending mediation on their behalf. Sometimes the parties will reach an agreement either prior to mediation or as part of a settlement agreement to have one party pay the entire Mediator fee, but most often those fees are shared equally.

Q A

Who attend Mediation for the Association?

There are some exceptions, but Florida law generally requires that mediation be attended by (a) the Association’s representative(s); (b) the Association’s attorney of record, if any; and (c) a representative of the insurance carrier, if the Association has made an insurance claim and is considered an insured party. The Association’s representative(s) is/are required to have full authority to make a final decision about a settlement and to execute a binding settlement agreement at the mediation without the need to go back to the Board for approval. The Board of Directors will, therefore,

need to pass a corporate resolution prior to the mediation that grants the person or persons attending the mediation the necessary authority.

Q A

How should I prepare for Mediation?

The Association’s representative(s) should become familiar with the background of the dispute and ensure that they are familiar with the Association’s position and goals to be achieved at the mediation. The Association should gather documents and photos that will help convey their side of the dispute. It is also advisable that the Association meet with its attorney prior to the mediation to discuss any specific questions about the dispute or possible outcomes.

Q A

What happens at Mediation?

The mediation will usually begin with the parties sitting at table, and each party will take turns presenting their side of the dispute to the Mediator. Usually, the parties’ attorneys will make their initial presentation to the mediator if they are represented by counsel.

The Mediator will then discuss the dispute and possible outcomes with the parties and will often separate the parties into separate rooms so that the Mediator can speak with each party individually. If the parties reach an agreement, then there will be a settlement agreement drafted at the mediation that will be signed

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by the parties and their attorneys. If the parties are not able to reach an agreement, then the parties will continue with their dispute.

Q A

What about after the Mediation?

If the parties reached an agreement at mediation, then they are bound by the terms of the settlement agreement. If the parties did not reach an agreement at mediation, they are still free to settle their dispute at a later date. Regardless of whether a settlement is reached or not, the mediation process is confidential, and the parties are not allowed to share what was said or occurred at mediation without the permission of the other side. The exception is that the Association’s members are generally entitled to review a settlement agreement entered into by the Association.

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An HOA’s Best “If Used By” Date Understanding Your HOA’s Covenants and Restrictions Expiration Date, and Acting to Preserve or Revitalize Them

Community Association Managers and Board Members should beware of the inevitable expiration date of homeowner association governing documents.

Depending on the time of development of the community, the HOA may be operating without an enforceable Declaration of Covenants, Conditions, and Restrictions (CC&Rs).

to a non-developer owner), the most conservative approach is to calculate 30 years from the date of recording the CC&Rs.

The good news is that an HOA does not have to wait until the documents expire to take action. Sections 712.05 and 712.06 of the Florida Statutes provide an association with the option to be proactive and preserve its

In 1964, the Florida legcovenants. This requires holdislature enacted the Marketable ing a duly noticed meeting of Record Title Act (MRTA) with the the Board of Directors with a goal of simplifying a property’s Statement of Marketable Title chain of title and streamlining Action; obtaining approval from marketable title. MRTA recogniz- 2/3 of the Board of Directors es the marketable title - free and to proceed; and preparing and reclear of all claims - of any person cording a Notice of Preservation with legal capacity to own land of Covenants and Restrictions in who has held title, alone or jointly the official records of the associwith a predecessor in title, for 30 years or more. In essence, MRTA shortens the chain of title to a 30-year period. Any claims and restrictions outside the 30-year period may be extinguished.

While MRTA may be beneficial for some, it poses a major threat to HOAs seeking to enforce its governing documents. Specifically, the 30-year title period also serves as an expiration date for an HOA’s CC&Rs. While the time period generally is calculated as to each parcel (reviewing when the parcel was originally transferred

Provided by Colby Keefe, Esq. of McCabe & Ronsman ation’s county. Membership approval is not required to preserve the governing documents.

On the other hand, for associations that have already met and passed their “expiration date,” Sections 720.404 and 720.405 of the Florida Statutes provides a procedure for revitalizing (reinstating) the CC&Rs. Revitalization of CC&Rs is a more involved process, and includes obtaining written approval from a majority of the affected parcel

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owners to reinstate the covenants as they existed prior to expiration (no changes can generally be made during this process). The association must thereafter obtain approval from the Florida Department of Economic Opportunity. Finally, the names of the owners and the legal description of the properties subject to the revitalized covenants must be included as part of the submission to the State for revitalization.

Interestingly, MRTA typically does not affect condominium associations. This is because a deed conveying condominium property typically references the official records book and page of the declaration of the condominium. On the other hand, a deed conveying property located within an HOA does not typically include the book and page of the recorded CC&Rs; thus, they are at risk of being extinguished from the chain of title after thirty years.

If you manage or reside in a homeowners’ association in Florida, review your governing documents to determine your community’s “expiration date”. As of July 2018, homeowner associations are required to consider at least annually whether pres20 | THE COMMUNITY CONNECTION

ervation of the governing documents is required.

As always, discussion with the association’s legal counsel is imperative in making sure that the statutory procedures are met for either preservation or revitalization of the community’s governing documents.

Board Leadership Strategic Planning for Communities

Successful communities, whether an HOA, or a Condominium rely on the service and dedication of their volunteers. Although most communities are over-reliant on the work of their volunteers, they are truly the leaders of the community.

Provided by Patricia Truax Stewart of Castle Group which is to create a strategic plan. One of the best measures of success in any community is longterm strategic planning. This also plays a major role in developing a budget. Once the strategic plan is developed, then the Board has the tools to properly develop a budget based on their strategic goals.

The primary responsibility of each board administration is to come together to act as one leadership voice for the community, recognizing

Each community varies, but in some comthat their fiduciary duty is to preserve, mainmunities, rather than a Strategic Plan, they rely tain and enhance the value of the assets of the on a reserve study. Although this is a great tool as community, through enforcing the governing part of the strategic planning process, to keep up documents, with one levying and of the key collecting of assessLeadership is the ability to establish standards and man- goals “enhancing ments and age a creative climate where people are self-motivated property conducting towards the mastery of long-term constructive goals in a values”, a business participatory environment of mutual respect compatible key ingrewith good is to judgment. with personal values”. This is a great quote from Michael dient develop a Vance which establishes the definition of “Leadership”. strategic

plan.

One of the key objec Most tives each strategic plans are five (5) years. Once the plan year for any community association is to create is developed, then the Board may review the plan strategic goals and objectives. There are two (2) every two (2) years to make sure they are staying major components in creating strategic goals. on course. Some of the key areas to consider when The primary objective each year is for the Board developing a Strategic Plan as the following: of Directors to develop a budget for their com• SWOT Analysis – Develop Strengths, Weakness, munity which provides for both operational and Threats and Opportunities capital/reserve funding. This is critical to the • Identify Key Challenges success of any community. The budget is the • Create Both a Mission and Vision Statement for framework and model for the work to be done your Community by the community for the coming year.

• Determine Key Strategies • Develop Long-Term Objectives

Before the budget can be developed, each

It is important to use the SWOT Analysis to community should consider the 2nd component FIRST QUARTER 2019 | NEFLCAI.COM | 21

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set priorities. Another success would be for committees and the board to shift focus from operational day to day which is typically with your management company or on-site manager to strategic only and relying on staff to implement your directives. Another success would be for the Board to shift focus from the year ahead to a long-range vision of the future.

When developing your long-term strategies, you always want to ask yourself “What do we want our community to be like in five (5) years”? It is important to develop long term objectives. For example, some categories to consider might be “Stewardship of the Community Curb Appeal”; “Superior Governance”; “Financial Sustainability”; “Lifestyle Amenities”. After the Board of Directors develops the long-range planning, then an annual Business Milestones Summary shall be developed which shall be the framework for the coming year.

We recommend every community strive to develop a strategic plan, develop strategic goals and initiatives and utilize staff and management to im-

plement the goals and objectives!

In addition to a well-developed strategy plan, as a community manager in the industry for many years, one of the key ingredients to a successful community and volunteer leadership is to effectively provide each of the boards an annual planning calendar and a business management plan. The management plan will establish the goals and directives for the coming year as established in the Strategic Plan. This will also be a useful tool when developing the budget. As part of best practices, I would emphasize the importance of being realistic in setting the goals and never have more than five “5” categories in any given year. Otherwise, it becomes unrealistic.

Again, think strategic and transition implementation of the plan to the staff and management for the most effective resources for a successful community.

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Five Ways Communities Can Work Together to Stop Non-Violent Crime Provided by Davis McKnight of Flock Safety “A porch pirate stole my package!� We are seeing more and more posts like this come across our social media feeds. With over 7.6 million property crimes reported in 2017, and the use of eCommerce sites like Amazon on the rise, this story continues to repeat across the nation.

Unfortunately, 87% of non-violent crimes like burglary go unsolved. This is due to lack of evidence.

It is pretty shocking to hear that the lack of evidence means there is only a 1 in 10 chance that police can solve a crime when it occurs in your community. In speaking with local authorities, they expressed a need for communities to work together to help gather actionable intelligence to bring justice for victims. Here are five steps your communities can take to work together and eliminate non-violent crime. #1 Build a security plan.

The first step to neighborhood safety is making sure you have a security plan that helps prevent and solve crime.

Do the neighbors know each other? Who do they contact if something occurs? Create a directory with each person in the neighborhood, including name, email, phone number, and if they have an outdoor security camera. #2 Invest in home security.

There are many affordable preventive technologies for which homeowners can invest, like doorbell cameras and home security systems. These are great at identifying when an incident occurred and to see if you can pick up any details on the suspect and / or vehicles involved. #3 Warn off would-be burglars.

Place neighborhood watch or warning signs at the 24 | THE COMMUNITY CONNECTION

entrances of the neighborhoods. Put flood lights in the amenities areas. Your goal is to make it as obvious as possible that thieves will be watched and caught if they try anything. #4 Capture the license plate.

Based on research, 70 - 80% of crime is committed with a vehicle. Tracking down the details related to the car can be the pivotal turning point in a case. This can be done with an automatic license-plate recognition (ALPR) camera. This specific video technology is designed to capture numbers and letters from a license plate that is either still or moving, and gives the police the evidence they need to solve crime. #5 Check your budget.

On the other end of the spectrum are higher end options to the protect the whole community like security gates, off-duty patrol officers, and military grade technology. All of these are considerable investments, but they can help pull together the story for police to better understand the case.

When property managers and their neighborhood associations combine their actions, resources, and information, the whole community benefits and can eliminate property crimes.

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Association Ledgers and the “Balance Forward:” Avoid Opening Pandora’s Box By: Robert L.Tankel, Esq. | Tankel Law Group One of the major issues association lawyers face when collecting delinquent assessments is the dreaded “balance forward” on ledgers. The amounts due in those ledgers are a potential Pandora’s Box of problems. In order to collect delinquencies based on those ledgers, they must comply with law. The ledgers are required to contain amounts that can be identified as monies that the association can lien and sue to collect if unpaid.

The accounting records are the lifeblood of every corporation, and must be properly kept, and associations are no exception. The Condominium Act and the Homeowners’ Association Act require that a ledger for each owner be kept for at least 7 years. The specific provision on point from Chapter 720 reads as follows: “All financial and accounting records must be maintained for a period of at least 7 years.

The financial and accounting records must include: 1. Accurate, itemized, and detailed records of all receipts and expenditures.

2. A current account and a periodic statement of the account for each member, designating the name and current address of each member who is obligated to pay assessments, the due date and amount of each assessment or other charge against the member, the date and amount of each payment on the account, and the balance due.”

The law could not be clearer. These records must be kept. If not, there are potential civil penalties (and criminal charges under the Condominium Act) for failing to allow access or destroying records. For CAMS, improper record keeping is the basis for penalties under the Florida Administrative Code. Lawyers are debt col26 | THE COMMUNITY CONNECTION

lectors and under Florida and federal law, have civil liability for improperly attempting to collect debts.

Given all of this potential liability, it’s surprising how often, in my 35 plus years of representing associations, we have received ledgers containing a “balance forward” to collect. When we see such entries, before proceeding with collections against an owner, we stop and ask the client or CAM what those amounts consist of. If it can’t be explained, we go back to the previous custodian of records to get a breakdown of those amounts. If it can’t be explained, we will not collect it.

When an association transfers official records from one CAM to another, it is vital that the ledgers be checked for compliance with law. CAMS and Associations who keep what are essentially illegal records should be asked to explain deficiencies as soon as possible. Doing so is sometimes the only way an association can have an outside party review it’s records for compliance, whether transitioning from self-managed to a CAM or CAM to CAM. At a minimum, the new custodian of records needs to write up the violation and the association should consider complaining to the appropriate authorities.

Ledgers must be kept as required by law. If amounts alleged to be due on the ledgers can’t be explained, they can’t be legally collected. A “balance due” cannot be explained by anybody, and means nothing. Keep your accounting records properly, and Pandora’s Box will stay closed.

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events Thanks to our event sponsors, Ramco Protective & Fidus Roofing, the Annual Gala & Awards at Manifest Distilling was a wonderful beginning to the Holiday season! The 2019 Board of Directors was annouced and awards to the outgoing board members and committee chairs were presented. This year, Cindy Dunlop of Cogent Bank & Melissa Rowe of Puroclean shared the coveted Volunteer of the Year award!

All in attendance enjoyed the atmosphere, food, drinks, delicious desserts, music, & danced the night away. One of the highlights of the night was outgoing President, Jimmy Dycus, singing Ice Ice Baby.

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events Our first breakfast of 2019 on January 24th at Jacksonville Golf & Country Club was sponsored by Flock Safety. Members packed the room to learn “All About CAI� & how they can become more involved in their local chapter. Committee chairs described their needs and encouraged members to share their time and strengths. Committees include Newsletter, Expo, Gala & Social, Finance, Membership, and Programming.

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Directory PREMIER LISTING

AEGIS COMMUNITY MANAGEMENT SOLUTIONS, INC. DAVID BURMAN AMS, PCAM DAVIDB@AEGISCMS.COM AEGISCMS.COM

ALLIANCE ASSOCIATION BANK PAUL KNUTH PKNUTH@ALLIANCEASSOCIATIONBANK.COM ALLIANCEASSOCIATIONBANK.COM

PREMIER LISTING ANSBACHER LAW BARRY B. ANSBACHER BBA@ANSBACHER.NET WWW.ANSBACHER.NET

ASPHALT RESTORATION TECHNOLOGY GEORGE RING GEORGE.RING@ASPHALTNEWS.COM ASPHALTNEWS.COM

BALL JANIK BALLJANIK.COM

ANGIUS & TERRY, LLP LAURIE SHRADER LSHRADER@ANGIUS-TERRY.COM ANGIUS-TERRY.COM

30 | THE COMMUNITY CONNECTION

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PREMIER LISTING

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PREMIER LISTING

BB&T ASSOCIATION SERVICES GEORGIA MILLER GGMILLER@BBANDR.COM BBT.COM

COMMUNITY ADVISORS, LLC CHARLES SHEPPARD, RS CSHEPPARD@COMMUNITYADVISORS.COM COMMUNITYADVISORS.COM

BECKER ROBYN M. SEVERS, ESQ. RSEVERS@BECKERLAWYERS.COM BECKERLAWYERS.COM

COGENT BANK MS. CINDY DUNLOP CDUNLOP@COGENTBANK.NET

CASTLE GROUP PATRICIA TRUAX STEWART, CMCA, AMS, PCAM PSTEWART@CASTLEGROUP.COM CASTLEGROUP.COM

FIDUS ROOFING CONSTRUCTION & PAVERS SHANE KOWALCHIK SHANE@THEFIDUSGROUP.COM THEFIDUSGROUP.COM

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GUNSTER, YOAKLOY & STEWART, P.A. THOMAS JENKS TJENKS@GUNSTER.COM GUNSTER.COM

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JACKSON LAW GROUP, LL.M., P.A. ANDREW JACKSON, ESQ. INFO@JACKSONLAWGROUP.COM JACKSONLAWGROUP.COM

FLOCK SAFETY DAVIS MCKNIGHT DAVIS@FLOCKSAFETY.COM WWW.FLOCKSAFETY.COM

LAKE & WETLAND ADAM GRAYSON ADAM.GRAYSON@LAKEANDWETLAND.COM LAKEANDWETLAND.COM

FLORIDA WATERWAYS, INC. MR. JIM SCHWARTZ JIM@FLORIDAPOND.COM WWW.FLORIDALAKE.COM

MAY MANAGEMENT SERVICES, INC. CATIE MARKS CMARKS@MAYRESORT.COM MAYMGT.COM

32 | THE COMMUNITY CONNECTION

Disclaimer - Information listed reflects that provided from the CAI National Office. Any changes or updates to listed contact information may be made by logging into your account at www.caionline.org or through the National Office.

PREMIER LISTING

PPG PAINTS ELIZABETH PIKE ELIZABETH.PIKE@PPG.COM PPG.COM

MCCABE | RONSMAN MR. EDWARD RONSMAN ERONSMAN@FLCALEGAL.COM FLCALEGAL.COM

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PUROCLEAN EMERGENCY RESTORATION SERVICES MELISSA ROWE MROWE@PUROCLEAN.COM PUROCLEAN.COM

SOLITUDE LAKE MANAGEMENT TRACY FLEMING INFO@SOLITUDELAKE.COM SOLITUDELAKEMANAGEMENT.COM

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VALLEY NATIONAL BANK BILL WENDELL BWENDELL@VALLEYNATIONALBANK.COM VALLEYFLORIDA.COM

TANKEL LAW GROUP MR. ROBERT TANKEL BOB@TANKELLAWGROUP.COM TANKELLAWGROUP.COM

34 | THE COMMUNITY CONNECTION

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VERDEGO BILLY GENOVESE BGENOVESE@VERDEGO.COM VERDEGO.COM

Disclaimer - Information listed reflects that provided from the CAI National Office. Any changes or updates to listed contact information may be made by logging into your account at www.caionline.org or through the National Office.

BASIC LISTING

Alden Contracting & Services, LLC Travis Megahee Allied Universal Mr. Jimmy Dycus James.Dycus@aus.com

Amelia Island Management Mr. Nick Lambiase, Jr., CPM, LCAM nick.lambiase@omnihotels.com Arthur J. Gallagher Risk Management Mr. David Dawson david_dawson@ajg.com Associa CMC Mr. Jim Giancola

BCM Services, Inc. Mrs. L. Denise Wallace denisew@bcmservices.net

Brightview Landscape Services Mr. George Rugen george.rugen@brightview.com Brown & Brown of Florida, Inc. Pilar Dixon, CIC, CIRMS pwillis@bbjax.com Burg Simpson Eldredge Hersh Jardine PC Ms. Michelle Ybarra mybarra@burgsimpson.com CertaPro Painters Mr. Jeff Lee jlee@certapro.com

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CINC Systems Ms. Vickie Johnson, CMCA, AMS vickie@cincsystems.com Clark Simson Miller Mr. Jason Miller sales@csmhoa.com

Coastal Construction Products Mr. Ron Mans rmans@coastalone.com

Coastal Insurance Underwriters, Inc. Mr. Chuck Bushong cbushong@ciuins.com Core Outdoors

Covert Appraisal Services, Inc. Ms. Constance Covert Connie@covertappraisal.com

D. Armstrong Contracting, LLC Mr. Dennis Armstrong dennis@darmstrong.net Distinguished Programs Michael Thabet

Driveway Maintenance, Inc. Ms. Michelle Lippai Duval Asphalt Ms. Jennifer Garrett jgarrett@duvalasphalt.com

EmpireWorks - Reconstruction And Painting Ms. Sherry Payne

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Envera Ms. Shar Caballero SCaballero@Enverasystems.com Enverasystems.com Evergreen Lifestyles Management Mr. Kraig Carmickle Fidelity Bank Ms. Mary E. Price mary.price@lionbank.com First Coast Association Management Ms. Alice Hubbard alice@firstcoastam.com

First Coast Mulch Mr. David Robinson davidr@firstcoastmulch.com First Federal Bank of Florida Mr. Mike Mickler micklerm@ffbf.com

Fletcher Stein Insurance Agency Ms. Carie Whitcomb cwhitcomb@fletcherstein.com Florida Certified Contractors Mr. Adam Russo

Florida Community Association Journal Mr. Jim McMurry jmcmurry@adpub.com

Global Solution Partners Mr. Keith Ruehl, RS kruehl@globalsolutionpartners. com

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Herbie Wiles Insurance Mr. Wayne Howell whowell@herbiewiles.com Heritage Insurance Mr. Randy Jones heritagepci.com

Home Team Pest Defense Mr. Dan Eckman dan.eckman@pestdefense.com Ian H. Graham Insurance Ms. Sylvia Tagle sylvia.tagle@aon.com

Inspections R Us Ms. Marianne E. Bailey marianne@inspectionsr.us Jimerson & Cobb, P.A. Mr. Hans Wahl hwahl@jimersoncobb.com Kings III Emergency Communications Gerry Heskett gheskett@kingsiii.com

Krystal Klean Mr. Anthony Lewis Morgan tmorgan@krystalklean.com

Lake Brown Williams CPAs & Consultants, Inc. Janice Brown Martin Home Exteriors Mr. Chris Lentzke chrisl@mhejax.com

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MBAF, CPAS & Advisors Condominium & Association Division Mr. Jeffrey L. Ducker jducker@mbafcpa.com McCabe Law Group, P.A. Mr. Michael John McCabe mccabe@jaxlandlaw.com McCall Services, Inc. Mr. Jerry Hall jhall@mccallservice.com

McGowan Program Administrators Mr. Joel W. Meskin, Esq., CIRMS jmeskin@mcgowanins.com

Metro Property Services Mr. John Moore office@metropropertyservices. com Mutual of Omaha Bank Mr. Keith Collopy keith.collopy@mutualofomahabank.com

Nabr Network Mr. James Garner james.garner@nabrnetwork.com Norman Insurance Advisors, LLC Mr. Andy Norman anorman@normaninsuranceadvisors.com North Florida Emulsions Mr. Jeffrey King northflemulsions@bellsouth.net

36 | THE COMMUNITY CONNECTION

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Owens Corning Ms. Zack Farris zack.farris@owenscorning.com Pacific Premier Bank Mr. Michael Coleman mcoleman@ppbi.com

Popular Association Banking Ms. Molly Hime mhime@popular.com

Property Management Systems, Inc. Mr. Scott William Steffen, CMCA ssteffen@pmsiofflorida.com Pursiano Barry Bruce Lavelle, LLP Mr. Jason Bruce, Esq. jbruce@pblbh.com Ramco Protective of Orlando Benjamin Griggs Reserve Advisors Mr. Nick Brenneman nick@reserveadvisors.com Seacoast Commerce Bank Sentry Management, Inc. Mr. Gordon Wolfram

Servpro of Mandarin, the Beaches/Ponte Vedra & St. Augustine Ms. Robin Braddock robin@servpromandarin.com

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Sherwin-Williams Mr. Linsey Ritch swrep5784@sherwin.com

Vote-now.com LLC Mr. James Claiborne jclaiborne@vote-now.com

Sovereign & Jacobs Property Management Companies Mrs. Ellen Lumpkin elumpkin@sovereign-jacobs.com

Yellowstone Landscapes Mr. Blaine Peterson bpeterson@austinoutdoor.com

Shimp Sign and Design, Inc. Mr. Roy Luster Shimp, Jr. rlshimp@comcast.net

Sperlonga Data & Analytics Mr. Scott Swanson s.swanson@sperlongadata.com

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Williams Law Association, P.A. Mr. K.C. Williams III, Esq. kcw@williamspa.com

Zenpura Pest Solutions Me. Ken Maszy ken@zenpura.com

The Bush Law Group, LLC Mr. Steven Bush

The Lake Doctors, Inc. Mr. Eric Williams eric.williams@lakedoctors.com TOPS Software, LLC Ms. Stefanie Ford stafanief@topssoft.com

Union Bank Homeowners Association Services Ms. Amanda Orlando, CMCA amanda.orlando@unionbank. com

Vesta Property Services, Inc. Ms. Leslie Pragasam lpragasam@vestapropertyservices.com

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