NEFLCAI.COM
VOL. 3 | ISS. 1
THE COMMUNITY CONNECTION
PROVIDING EDUCATION, NETWORKING, RESOURCES AND ADVOCACY FOR COMMUNITY ASSOCIATIONS IN NORTHEAST FLORIDA AND THE PROFESSIONALS AND VOLUNTEERS WHO SERVE THEM.
CONDO CONVERSIONS
2016 EXPO
Converting Apartment Buildings into Residential Condominiums Angius & Terry
Dont miss your chance to be part of THE biggest event in Northeast Florida! Meet the area's BEST vendors & earn CEUs toward your CAM license renewal!!
SWATTING CALLS Tips to Handling Swatting Calls Universal Protection Service
SQUATTERS IN HOAS Can Anything Be Done? Associa
ABSENCE OF A QUORUM
NEW BOARD MEMBERS
How Do I Continue A Members’ Meeting If a Quorum Has Not Been Attained? Becker & Poliakoff
Meet the newest Board Members
NOCATEE PADDLE LAUNCH PHOTOGRAPHED BY LESLIE PRAGASAM
2016 EXPO April 21, 2016
9 AM - 5 PM
UNF University Center
Dawn Bauman
Senior VP, Government and Public Affairs at the National level of CAI.
Dawn will be speaking on recent legal matters which will affect Community Associations directly and the industry as a whole. Dawn and her team closely monitor legal matters across the country and are able to provide a unique perspective on what recent and proposed changes could mean for us in Northeast Florida.
Business Partners and Service Providers
We only have thirty booths available for the chapter Expo this year. Be sure to claim yours before they're gone! We have several different sponsorship opportunities and with prices starting at just $80, there is something for everyone. From registration to breakfast, lunch and dessert, tote bags and happy hour our pricing structure allows for any budget to benefit from advertising at this highly anticipated event! In 2015 we had over 100 Community Managers, Management Company CEOs and Community Board Members registered. In a survey of attendees over 97% of respondents had a favorable review of the event. This year we have doubled our marketing efforts as well as made adjustments based on feedback from attendees. The Annual Chapter Expo and Education Day is an excellent place to network and make new connections while reconnecting with current contacts.
SPRING TRAINING LINE-UP Stress Less in the Workplace - Angius & Terry Lake Assessments - Aquatic Systems Construction Gone Wild - Becker & Poliakoff Drones in the Neighborhood - Clayton & McCulloch Reserves & Budgeting - Community Advisors Electronic Voting - Terry Diggs from the DBPR Florida Friendly Landscaping - ValleyCrest Lending Solutions - Valley National Bank THE COMMUNITY CONNECTION | 1
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TABLE OF CONTENTS
LEARN Expo News
01
Condo Conversions
05
Tips to Handling Swatting Calls
09
Squatters in HOAs - Can Anything Be Done?
11
Absence of a Quorum at Meetings
12
What's Next?
11
INTRODUCTIONS
President's Message
03
Meet the New Board
15
Visit
WWW . NEFLCAI . COM for important information regarding upcoming events
President's Message
A Quarterly Publication of 21
Dear Members, I hope that you have had a great start to 2016! I’m very excited as we move into this new year and can’t believe that January is already over! All of our committees are doing a great job in providing exceptional events, including our Education Expo in April (it will be here before you know it!), our bimonthly lunches, and our social events, the first of which is scheduled for February 25 at Whiskey Jax. Our first Chapter luncheon was a success and our speakers Hans Wahl and John Vick provided us with a lot of great information on what to expect in 2016 with reference to proposed legislation and community security. Thank you to Hans and John for providing us with their time and knowledge. As you are most likely aware, we have an education event scheduled for February 18, 2016 with Robyn Severs, Esq. of Becker and Poliakoff providing an educational seminar. This will be offered exclusively to our community association managers and will focus on Service/Assistance Animals and how they are impacting communities. This course will provide continuing education credits – be on the lookout for the exact time and location! We are pleased to offer these educational events to our members and if you have any ideas for topics, or if you would like to teach a course, please do not hesitate to contact either myself or Stephanie, our wonderful Chapter Executive Director. Finally, if you have not already done so, please consider becoming an annual sponsor for our Chapter or look into sponsoring an educational event or at the Education Expo in April. We sincerely appreciate our current sponsors and it is because of you that we are able to offer these outstanding events. If you should have any questions on sponsorship opportunities, please do not hesitate to contact myself or Stephanie. Enjoy the newsletter! Sincerely, Ed Ronsman President The 2016 board & committees are well on their way in providing so many exciting educational events, chapter meetings & social events. I am looking forward to a fantastic year! Please send me your informative articles for consideration in an upcoming edition. I hope you will enjoy the first newsletter of 2016! Kindest regards, Leslie F. Pragasam Editor THE COMMUNITY CONNECTION | 3
W: neflcai.com E: info@neflcai.com M: 9802 Baymeadows Rd #12, PMB 201 Jacksonville, FL 32256 S: Facebook |Twitter @NEFL_CAI
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2016 CHAPTER SPONSORS Diamond
48
Gold
Silver
Aquatic Systems BB&T Gunster Law Jackson Law Group MAY Management Union Bank Universal Protection Service www.neflcai.com
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Converting Apartments Buildings into Residential Condominiums Heather Roembke - Attorney Angius & Terry LLC A condominium conversion is the process of transforming an existing rental building, usually apartments, into residential condominium units. When the economy booms, so does the trend of converting apartment buildings into residential condominiums. The market for residential condominium conversions usually arises when the price of singlefamily homes increases beyond the reach of a first time home buyer as converted condominiums are usually priced lower than singlefamily homes and/or new construction. In 1980, Florida enacted the Roth Act (Part VI of the Condominium Act) to govern the process of residential condominiums by conversion. Since condominium conversions are previously occupied structures, it is important to understand the building’s condition prior to purchasing. The Roth Act requires a condominium conversion report be prepared by an architect or engineer. What is in a conversion inspection report? Contained within the report are detailed disclosures pertaining to the age of the specified components in a structure, the building’s existing condition, structural soundness, the remaining useful life of the specified building components and the estimated cost of replacement of the specified components. The report is substantiated by attaching a copy of a certificate under the seal of an architect or engineer authorized to practice in Florida. Pursuant to Florida Statute, Section 718.616, each unit owner and the Association are third party beneficiaries of the report. Additionally, the developer must prepare a report disclosing whether there is termite damage or infestation and whether it has been properly treated. This statement must be substantiated by an inspection report by a certified pest control operator. It is important to consider the condition of the property prior to making a decision to purchasing a unit in a condominium conversion. Often apartment buildings converted into residential condominiums are older in age which can lead to a quicker deterioration of the property and/or lack of proper maintenance. If the conversion report reveals that construction defects exist, it is important the Association consult with a law firm that THE COMMUNITY CONNECTION | 5
has experience in handling construction defect litigation and, in particular, conversion cases. Legal counsel will review the conversion report and discuss with the Association its legal rights and options. Legal counsel will usually go through a condominium conversion checklist with the Association and review such things as: did the developer prepare a report that discloses the condition of the improvements, the condition of certain components and the current estimated replacement costs (as of date of the report)? These components include: roof, elevators, structure, electrical systems, pavement and concrete (including roadways, walkways and parking areas), heating and cooling systems, swimming pool, drainage systems/irrigation systems, plumbing, seawalls, pilings, docks and fire protection system. Furthermore, a developer is required to provide one of three types of postpurchase protections for unit owners regarding the improvements. The developer must also disclose which type of protection is being utilized. Under Florida Statute Section 718.618, the developer has three options when existing improvements are converted to ownership as a residential condominium: 1. Establish converter reserve accounts for capital expenditures and deferred maintenance; 2. Grant to the purchaser of each unit, an implied warranty of fitness and merchantability for the purposes or uses intended; 3. Post a surety bond equal to the total amount of all reserve accounts which would otherwise be required. A funded reserve accounts requires the developer to fund a reserve for air conditioning, plumbing and roof replacement. The age of any component or structure which the developer is required to fund in a reserve account must be measured in years, rounding to the nearest whole year. The amount of reserves funded must be based on the age of the component as disclosed in the inspection report. Florida Statute, Section 718.616(3) goes into more specifics regarding Condo cont'd pg. 7 www.neflcai.com
Condo from pg. 5 5how the rese5rve account must be funded. The developer must establish the reserve accounts in the name of the condominium association. Another option is for the developer to post a surety bond. This requires the developer to obtain a surety bond that may be used to fund repairs and replacement of the covered items. The bond is issued in the name of the Association and issued by a company licensed in Florida. If the developer fails to fund the converter reserves, the developer is deemed to have granted to the purchaser of each unit an implied warranty. Implied warranties require the developer to pay for repairs and replacement of improvements during the warranty period. According to Florida Statute, Section 7718.618, if the developer is deemed to have provided implied warranties, the warranty period begins with the notice of intended conversion and continues for 3 years thereafter, or the recording of the declaration to condominium and continuing for 3 years thereafter, or 1 year after owners other than the developer obtain control of the Association, whichever occurs last, but in no event more than 5 years. For this reason, it is important for a homeowners association governing a conversion to consult with experienced legal as soon as practical. An Association may challenge a limitation on warranties or establish other claims against a developer if: 1. Converter reserve accounts were not properly established or funded; 2. The developer failed to properly maintain the common elements during developer control of the Association; 3. The developer failed to disclose or remedy structural or maintenance defects he knew or should have known of existed; or 4. The developer failed to make appropriate disclosures under Florida Statute, Section 718.616. Due to the amount of construction defects that not corrected and covered up in the conversion process, it is not uncommon for such statutory warranties to be the focus of litigation. If too much time passes and the Association does not address these types of issues as wells as construction defects mentioned in the conversion report, the Association’s rights to pursue the developer for any remedy may become exhausted. It is important that Associations’ seek the guidance of legal counsel experienced in the area of construction defects as soon as turnover occurs so counsel may discuss with the Association what remedies may be available. For further information on condominium conversions, please refer to Florida Statutes, Sections 718.616 (Disclosure of condition of building and estimated replacement costs and notification of municipalities) and 718.618 (Converter reserve accounts; warranties).
THE COMMUNITY CONNECTION | 7
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Tips to Handling Swatting Calls
James Dycus - Business Development Manager Universal Protection Service
Ways to Mitigate Swatting: Swatting calls can be successfully mitigated using follow up questioning to identify inconsistencies or weaknesses in the caller’s storyline or to make the caller feel their attempt is failing. Those receiving the call should ask multiple questions in quick succession, and repeat questions later in the call to identify inconsistencies. The receiver of the call should ask questions such as: • What is your full name? (ask again later during call, and The activity has evolved over the last decade and includes a range of techniques designed to create public alarm and divert specifically ask for a middle name) law enforcement resources toward the hoax. Examples include • Where are you calling from? • What is your phone number? bomb threats, active shooter or hostage scenarios, and • Why didn’t you call 911 directly? (for VoIP calls to non weapons of mass destruction use. The activity is a common emergency dispatch line) threat to schools, hospitals, shopping malls and • What is your mobile or home number, in case we get private residents. It is predicted to expand to larger public disconnected? venues such as sporting events, hotels, mass transit, etc. • What is that noise in the background? (when background noise is inconsistent with the story) We are sharing some tips from an intel source to help you identify the crime and strategies to help mitigate it. However, if • Why does it sound like you are typing on a computer keyboard? you suspect a swatting incident, you are encouraged to • Are you targeting anyone in particular? immediately have a colleague call 911 and share as much detail as possible with the dispatcher, while keeping the caller on the line. Note things such as the exact time and date of the Caller claims to be inside or near a mall, hospital, or other commercial venue call, the caller’s phone number, the nature of the threat, • Where are you in the building? reason for it and timeline. • What are you near? • Which building are you in/on? (when there are multiple Ways to Identify Swatting: buildings in a complex) • The incoming telephone number is spoofed or blocked. • Do you know an employee? Swatting calls using Voice over Internet Protocol (VoIP) In an effort to help keep you informed of potential risks that could affect your facility, we are sharing the latest on an activity that is gaining more popularity as a criminal activity. We have learned through a credible source that swatting is on the rise. It involves initiating a false report of an emergency or violent threat intended to prompt an immediate tactical law enforcement response from a SWAT team.
services will appear as all zeros or nines, blocked, unavailable, or as one of the default Skype numbers: (661) 7480240, (661) 7480241, or (661) 7480242. • The swatting call is routed through a nonemergency dispatch line. Swatters using VoIP services cannot dial 911 directly, so instead they look up nonemergency lines of dispatch operations. • The caller’s tone and background noise is inconsistent with the claimed emergency, such as a shooting, or threat. Typing or clicking a computer mouse may be audible in the background, since swatters may use internet searches or online mapping tools to answer followup questions and provide descriptions of buildings or residences. • The caller is unable to answer followup questions requesting details such as full name, phone number or current location. • The caller claims to be armed or suicidal and willing to shoot law enforcement. THE COMMUNITY CONNECTION | 9
Caller claims to be at a residence • Where are you in the house? • Is it a one or twostory house? • What color is the house? • Who owns the house? • Who else lives in the house? • What are your parents’ names? Caller claims to be on the way or planning to target a location • Where are you coming from? • Are you in a car? • When will you arrive?
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Squatters in HOAs: Can Anything Be Done? John Krueger Vice President of Government Affairs for Associa Since the country’s economic crisis began in September 2008, it is estimated that more than six million homes were lost to foreclosure. And foreclosure was often just the start of problems for these properties. With that volume, many times these properties became “zombie” foreclosures, which means the property was abandoned and much time elapsed before the lender (or a buyer) took possession. These situations often led to properties falling into disrepair or subject to vandalism, theft of furnishings, or general poor condition. In some cases, to compound the problem, unauthorized persons moved into these properties attempting to establish adverse possession through some form of “squatters” rights. In a planned community setting, it is important to realize that a homeowners’ association (HOA) and its management company act in the best interest of the property owners (members). A “squatter’s” situation is viewed under the law as a landlord/tenant dispute. As a result, the HOA or management company has no legal authority to confront the occupier or remedy the situation but rather must work with the legal owner to resolve the conflict. Many times, this is difficult if the lender or new owner does not formally file a public record noting a title change or does not take possession of the house in a timely manner. Even when law enforcement is contacted to assist in these cases, they struggle with squatters who often quickly return following eviction or who present what
ultimately is bogus lease agreements or titles to the property. All of this puts the board and management company for an HOA in a difficult position. To reduce the risks posed by these problems, it is recommended associations do the following: Maintain accurate contact information with residents/owners Communicate regularly with members/owners and encourage them to provide any information regarding legitimate renters or owners’ relocation plans; Make note of those homes that have newspapers or mail accumulating or yards that fall into disrepair to determine possible signs of abandonment; and Notify law enforcement if knowingly vacant homes become inhabited by suspected nonowners or non residents. In the end, there is often little that an HOA can do to prevent squatters from trying to take up residency, but working with law enforcement, titleholders, and within the judicial system, squatters can be prevented from becoming longterm nuisances. Also, as economic conditions continue to improve in many regions of the country, this has reduced the abandoned housing inventory attracting these problems.
Upcoming Events Chapter Meetings Golf Outing March 17 Breakfast at UNF May 19 Luncheon at Maggianos
Socials
February 25 Happy Hour at Whiskey Jax April 28 TBD June 23 TBD THE COMMUNITY CONNECTION | 11
March 24 at Glen Kernan Golf Club May 26 TBD.
Education
March 10 Board Member Course April 21 EXPO June 16 CAM Course www.neflcai.com
How Do I Continue A Members’ Meeting If A Quorum Has Not Been Attained? Elizabeth LanhamPatrie, Esq. of Becker & Poliakoff Frequently, an association is not able to attain a quorum at a members’ meeting and must continue the meeting until a later date. In the bylaws for most association’s there is a section which provides: “…If, however, such quorum shall not be present or represented at any meeting, the members entitled to vote thereat shall have the power to adjourn the meeting from time to time...” However, how does an Association properly continue a meeting? It is important to note that the term "adjourn" can have two meanings. To adjourn a meeting can mean that the meeting has ended. However, to adjourn a meeting can also mean that it is continued to a later date. In order to adjourn/continue a members' meeting, one of the Members present should make a motion to continue the members’ meeting. If possible, the member making the motion should also state the date, place and time of the continued meeting as part of the motion. Then, a majority of those Members present must approve the motion.
meeting and for how long the original proxies remain valid. If you do not have an Association Attorney, we would be happy to assist you with these questions and concerns. This Article was prepared by Elizabeth LanhamPatrie, Esq. of Becker & Poliakoff. The information contained herein should not be acted upon without professional legal advice. The opinions expressed herein are as of the date hereof, and this law firm undertakes no obligation to advise of subsequent changes in the law. Becker & Poliakoff is one of Florida’s preeminent law firms, and the firm that pioneered Condominium and Homeowners Association law in Florida. Please visit our website at www.bplegal.com for additional information. The firm can be reached at 100 Whetstone Place, Suite 302, St. Augustine, Florida Tel: 904.423.5372 / Fax: 904.239.5938.
Even if the association’s bylaws do not provide for a procedure to continue/adjourn a members’ meeting, the procedure set forth above is consistent with Roberts’ Rules of Order, which provides limited actions that can be taken if a quorum is not attained for a meeting, such as recessing the meeting, continuing the meeting to a different date or closing the meeting. If an affirmative action to recess or continue the meeting is not taken, then the meeting is deemed closed. Therefore, if a quorum is not attained and the Members want to continue the members' meeting to a later date, it is important to remember to take a vote of the Members present to continue the members’ meeting. It is also important to remember to take this vote before the Members present disperse, which would prevent obtaining the necessary vote. Please contact your Association Attorney for additional questions regarding how to notice a continued members’
THE COMMUNITY CONNECTION | 12
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Check our website for past newsletters, how you can become more involved & join our wonderful chapter.
HEY!
YOUR COMPANY'S AD COULD BE HERE! THE COMMUNITY CONNECTION | 14
Finance, Newsletter, Programs, Education, Expo, Membership, Legislative Action, Social, and Golf - there's a place for everyone! Contact Leslie Pragasam at Leslie@AquaticSystems.com for pricing, specs or more information. www.neflcai.com
meet your new board members James Dycus
Business Development Manager at Universal Protection Service & 2016 President Elect
My number one goal is to see our chapter continue to grow and grow rapidly. I believe our chapter has a very “family” feel and we have a ton of fun together so these next couple years, I want to kick it into the next level of fun and hopefully increase our events and number of times we get together, even if it is just for “happy hour’. Additionally, we have done a very good job at getting our educational opportunities going, however I want to see us go even further and making our chapter of the CAI the one that offers the most opportunities available.
Bob Chamberlain
CAVL at Edgewater at Sunbeam & 2016 Treasurer
I feel the number one aspect of CAI is providing awareness to communities, managers, board members and business partners to enable a better educated industry. My goals for the NE Florida Chapter are Fiscal Responsibility Improvement & proper execution of our events for a successful 2016 year through planning, budgeting, and accountability assisted by timely and accurate reporting.
Sherry McNees
CAM at Community Management Concepts of Jacksonville & 2016 Secretary
My goal as a board member is to grow our chapter. I believe the last board set a great stage for future growth and development of the chapter and I want to help the chapter continue on that path. I plan to include more educational programming for community managers and community board members, stretching our presence further into St. Johns, Flagler, Clay and Nassau counties and helping to develop leaders within the chapter.
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