LIVING Community
TOPIC
CHAPTER EXECUTIVE DIRECTOR
Joe Napoli
CAI SOUTHEAST FLORIDA BOARD OF DIRECTORS
Jason Schoenholtz, CAM, CMCA, AMS, PCAM (President)
Diana Zayas-Bazan, CAM, CMCA (President-Elect)
Sebastian Martinez, CAM, CMCA (Treasurer)
Diana Kuka (Secretary)
Michael Poorman, MBA, PCAM (Past-President)
David Bermudez (Director)
Roberto Blanch, Esq. (Director)
Jane Bolin, Esq. (Director)
Debbie Ellison (Director)
Dr. Marcelo Martinez, CAM, CMCA (Director)
Fabiola Bens (Director)
CHAPTER COMMITTEES
Membership Committee
Homeowner Leader Committee
Community Manager Committee
Business Partner Committee
Events Committee
Young Professionals Committee
CORRESPONDENCE (CHAPTER & MAGAZINE)
(Sales, Marketing, Advertising, Creative, Subscriptions)
Joe Napoli
CAI-SE Florida Chapter 304 Indian Trace, Suite 538 Weston, Florida 33326 954-816-0661 | ced@cai-seflorida.org
CAI-SEFL Chapter Website: www.cai-seflorida.org
National Website: www.caionline.org
READER COMMENTS & ARTICLES WELCOME
Columns and ideas from all of our Chapter members are always welcome. Send submissions in Microsoft Word format to: ced@cai-seflorida.org. Articles appearing in Community Living reflect the author’s opinion and not necessarily that of CAI. Acceptance of advertising does not constitute an endorsement of the product or service.
Community Living is published quarterly by the Southeast Florida Chapter of the Community Associations Institute
This publication attempts to provide CAI’s membership with information on community association issues. Authors are responsible for developing the logic of their expressed opinions and for the authenticity of all presented facts in articles. CAI does not endorse or approve statements of fact or opinion made in these pages and assumes no responsibility for those statements. This publication is issued with the understanding that the publisher is not engaged in rendering legal, accounting or other professional services. If legal advice or other expert assistance is required, the services of a competent professional should be sought.
Q1
| 2025 Contents
Chapter Events
CAI Education Opportunities
Golf Tournament Photos
Cost-Effective Techniques: Asphalt Pavement
Reserve & Preserve
The Infrastructure Dilemma
Why are Roof Inspections Important?
Handling Overdue Assessments
Awards Dinner Photos
The Importance of Milestone Inspections
Your Guide to HOA Financing Options
What is CAI?
Community Associations Institute (CAI) is a national organization dedicated to fostering vibrant, competent, harmonious community associations. For more than 40 years, CAI has been the leader in providing education and resources to the volunteer homeowners who govern community associations and the professionals who support them. Our members include community association volunteer leaders, professional managers, community management firms, and other professionals and companies that provide products and services to associations. Our local chapter serves over 630 members with annual events including Mini Expos, Golf Tournament, CAM & Board Member Education events and so much more.
Become a Member!
Community Associations Institute is committed to making diversity, equity, and inclusion a core aspect in our membership, on our staffs, and within the community association housing model at large. We firmly believe in the unique strengths of every individual and that diversity makes organizations more successful and communities more fulfilling. By actively cultivating diversity, we benefit from a vastly richer mix of ideas, perspectives, and life experiences that expand our thinking and our possibilities. We strive to foster a culture of discovery, innovation, and service as we continue to focus on our mission to build better communities.
At the Community Associations Institute Southeast Florida Chapter, diversity, equity, and inclusion stands for more than just a goal or quota. We strive to create an environment that reflects the various members we serve and where everyone feels empowered to bring their full, authentic selves. Together, we continue to build an inclusive culture that encourages, supports, and celebrates the diverse voices of our community.
Diamond Sponsors
Platinum Sponsors
Gold Sponsors
Management Company Sponsors
Become a Chapter Sponsor!
It’s the fast track to community association decision-makers! Every member of CAI Southeast Florida enjoys the opportunity of networking with community association decision makers. Becoming a Chapter Sponsor invests in your local Chapter and elevates your brand even more by being continuously recognized at Chapter events and through Chapter communications. Every sponsor receives a nice discount when they reserve for events, including expo booths and golf tournament entries. Learn which sponsorship works best for you. Scan the QR code or visit cai-seflorida.org/event/chapter-sponsors-2025.
FROM THE CHAPTER PRESIDENT
Greetings!
BY JASON SCHOENHOLTZ, CAM, CMCA, AMS, PCAM CHAPTER PRESIDENT
Iam honored to serve as this year's President of the Community Association Institute's Southeast Florida Chapter. Building on the remarkable work accomplished last year, my goal is to further expand and engage our Chapter's Homeowner Leaders. Additionally, I am committed to reengaging and enhancing our services and offerings to provide greater value to our Managers and Management Company leadership.
As the owner of an association management company for the last 10 years and a licensed CAM manager for the past 25 years, I have witnessed firsthand the immense value of CAI's mission, particularly in education and advocacy. This year's Florida Legislative session, which began on March 4 and runs through May 2, is a critical period for our advocacy efforts. Members of CAI's Florida Legislative Alliance will be diligently working on your behalf to shape the laws that our state government will consider this year.
As a proud member of this statewide committee, I urge you to be vigilant of calls to action and to respond when you receive them. The system we use for these makes these calls to action very easy. While our team works behind the scenes year-round, your active participation is essential to ensure our leaders in Tallahassee hear our voices.
Our Chapter has an exciting lineup of local events that I encourage you to attend. Being a member is valuable, but active participation allows you to fully benefit from your membership. Please review the events calendar on our website (cai-seflorida.org) and while you are there sign up for our weekly newsletter. We invite you to join us in every way possible—not just as a member, but as an active participant. Consider joining a committee and becoming part of the next chapter in our great organization. That’s how I started my journey to chapter president. I look forward to meeting you in person at one of our events.
CAI’s global organization will be particularly focused on Florida over the next two years, with the national conference in Orlando this year and in our own backyard in Hollywood next year. You can find more information on CAI's conference and other National and Global efforts on their main site, www.caionline.org
With the unprecedented growth in our chapter, dynamic leadership, and national focus on Florida, there has never been a better time to get more involved with CAI. Whether for education, to better your community, further your career, or all of the above, I look forward to supporting you on your journey.
Chapter News
BY JOE NAPOLI, CHAPTER EXECUTIVE DIRECTOR
Welcome to the 1st Quarter Edition of Community Living! We’ve kicked off the year in spectacular fashion! Our Annual Golf Tournament was an absolute hit—an unforgettable day filled with fun, entertainment, fantastic raffles, delicious food, and, of course, some truly impressive golf! A huge thank you to all who participated and an extra special shoutout to our incredible sponsors, whose generosity and enthusiasm made the event so memorable. Be sure to check out the photos on pages 18-19 and click here to see the video!
We also celebrated our members and supporters in style at our Annual Awards Dinner—a truly magical evening in a stunning setting. Congratulations to all of our award winners! Your dedication and contributions continue to elevate our Chapter. And once again, a heartfelt thank you to our sponsors for making this event a night to remember.
On top of these amazing events, our record-setting growth continues. This quarter, we surpassed 630 members, adding over 100 new members in just the past year. This remarkable momentum is a testament to the value our Chapter provides—but even more importantly, it’s a direct result of you—our engaged members— spreading the word and actively participating. We couldn’t do this without you.
Looking ahead. Our action-packed year is lining up and we can’t wait to see you at our upcoming events. Here are some highlights.
• Hot Topic Breakfasts Return! Starting in April, we’re bringing back our highly popular Hot Topic Breakfasts in both Broward and Miami-Dade. Stay tuned for dates and locations!
• M-204 Community Governance Course – May 29-30: For the first time in a while, our Chapter will co-host an in-person
M-204 Community Governance course offering 14 continuing education credits at the Deerfield Beach DoubleTree. Don’t miss this opportunity to expand your knowledge—register today here
• CAM & Homeowner Leader Workshops + Mini ExpoSeptember 25: Last year’s dual-track CAM & Homeowner Leader Workshops paired with a mini expo was a resounding success, providing Business Partners with valuable networking opportunities while delivering top-tier professional development. This year, we’re taking it a step further—both workshops and the expo will take place on the same day, creating an even more dynamic experience. Mark your calendar for September 25, and we’ll be announcing the venue soon!
Don’t miss CAI’s National Conference – May 7-10 in Orlando. As you’ve likely seen in our announcements, CAI’s Annual Conference & Expo is coming up May 7-10, and this year, it’s right in our backyard— Orlando! This is an incredible opportunity to engage with industry leaders from across the country and around the world, gain valuable education and professional development, and expand your network in ways that can benefit your career and community. If you haven’t registered yet, we highly encourage you to take advantage of this convenient and impactful event!
Thank you for your support. We are beyond grateful for your ongoing support and commitment to making CAI Southeast Florida the thriving community it is today. We’re here to serve you, so please don’t hesitate to reach out if you ever need anything. Stay connected, register for upcoming events, join one of our Committees and keep the momentum going by visiting our website. Let’s continue making this Chapter the best it can be!
CHAPTER EVENTS & EDUCATION
Calendar of Events
More details regarding upcoming events will be posted to cai-seflorida.org under the “Events” tab. Check back regularly for the most up-to-date information. Please be sure to register for all events in advance, as we need an accurate head count for space and food purposes prior to the event. All event details are subject to change.
APRIL 2025
• Tuesday, April 8: Educational Webinar: Fundamentals of Reserves at 12:00 pm on Zoom with Association Reserves
• Thursday, April 10: Webinar: Get Involved - All You Need to Know About Our Committees at 12:00 pm on Zoom
• Tuesday, April 15: Board of Directors Meeting from 8:3010:00 am via Zoom
• Tuesday, April 22: Hot Topics Education Event at the Intercontinental in Doral from 8:00 am - 9:30 am. The topics will include “Fitness and Nutrition for Busy Professionals” (non-CEU) and “Understanding Construction Defects” (CEU). Sponsorships will be available! Registration and more details coming soon!
MAY 2025
• Wednesday-Saturday, May 7-10: CAI Annual Conference in Orlando
• Tuesday, May 13: Florida Legislative Update Webinar
• Tuesday, May 20: Board of Directors Meeting from 8:30 - 10:00 am via Zoom
• Thursday-Friday, May 29-30: PMDP Class M-204: Community Governance from 9:00 am - 5:00 pm at DoubleTree by Hilton in Deerfield Beach hosted by the Southeast Florida and Gold Coast Chapters. Learn how to avoid legal problems and gain cooperation when establishing guidelines. This course covers the legal basis of community rules, policies, and procedures.
JUNE 2025
• Sunday, June 1: Young Professionals Hawaiian Luau Summer Picnic from 11:00 am - 3:00 pm at C.B. Smith Park in Pembroke Pines. Get ready for a tropical extravaganza! Our Hawaiian Luau Summer Picnic, hosted by the Southeast Florida Chapter of CAI, promises a day of family-friendly fun and community spirit. Complimentary tickets for CAMs and Homeowner Leaders. Tickets for Business Partners are $300 (2 tickets). The day includes games & activities, entertainment, food & treats and community connection! Sponsorships are available! Check out the website for all the details.
• Tuesday, June 10: Educational Webinar
• Friday, June 13: Membership Gathering, International CAM Day Appreciation & Legislative Update
• Tuesday, June 17: Board of Directors Meeting from 8:30 - 10:00 am via Zoom
• Tuesday, June 24: Hot Topics Education Event in Broward
• Thursday-Friday, June 26-27: Florida Keys Workshop, Mini Expo & Fishing Tournament
JULY 2025
• Tuesday, July 8: Educational Webinar
• Tuesday, July 15: Board of Directors Meeting from 8:30 - 10:00 am via Zoom
• Tuesday, July 22: Hot Topics Education Event in Miami Dade
AUGUST 2025
• Tuesday, August 12: Educational Webinar
• Tuesday, August 19: Board of Directors Meeting from 8:3010:00 am via Zoom
• Tuesday, August 26: Hot Topics Education Event in Broward
SEPTEMBER 2025
• Tuesday, September 9: Educational Webinar
• Tuesday, September 16: Board of Directors Annual General Meeting
• Thursday, September 25: HOL/CAM Workshop & Expo
OCTOBER 2025
• Tuesday, October 14: Educational Webinar
• Thursday, October 16: Board of Directors Strategic Planning
• Thursday, October 23: Young Professionals Halloween Party from 7:00 - 10:00 pm. Get ready for a night of thrills and chills! There will be a costume contest, music & dancing, drinks & food, and mysterious networking. Sponsorship opportunities are available! Check out the website for all the details.
• Tuesday, October 28: Hot Topics Education Event in Miami Dade
NOVEMBER 2025
• Wednesday, November 5: Annual Election of Directors
• Thursday, November 6: Homeowner Leader Roundtable Event
• Wednesday, November 12: Educational Webinar
• Tuesday, November 18: Board of Directors Meeting from 8:3010:00 am via Zoom
• Thursday, November 20: Annual Holiday Gala & Awards Event
DECEMBER 2025
• Tuesday, December 2: Hot Topics Education Event in Broward
• Tuesday, December 16: Board of Directors Meeting & New Board Member Transition from 8:30 - 10:00 am via Zoom
CAI NATIONAL
Education Opportunities
CAI offers many online learning opportunities (click on the dates below to register or obtain more information) that lead to professional credentials. View the 2024 Education Catalog for additional resources.
» March 20-21: M-205 - Risk Management
» April 3-4: M-320: High-Rise Maintenance and Management
» April 24-25: M-100: The Essentials of Community Association Management
» May 5-7: M-100: The Essentials of Community Association Management (Orlando; Live Onsite Class before Annual Conference)
» May 6: M-201: Facilities Management (Orlando, FL; Live Onsite Class before the Annual Conference)
» May 6: M-202: Association Communications (Orlando, FL; Live Onsite Class before the Annual Conference)
» May 6: M-203: Community Leadership (Orlando, FL; Live Onsite Class before the Annual Conference)
» May 6: M-400: Contemporary Issues in Community Association Management (Orlando, FL; Live Onsite Class before the Annual Conference)
» May 22-23: M-206: Financial Management (Live Virtual Class)
» May 29-30: M-203: Community Leadership (Live Virtual Class)
» May 29-30: M-204: Community Governance (Deerfield Beach)
» June 5-6: M-100: The Essentials of Community Association Management (Live Virtual Class)
» June 12-13: M-202: Association Communications (Live Virtual Class)
» June 26-27: M-370: Managing Developing Communities (Live Virtual Class)
» July 10-11: M-201: Facilities Management (Live Virtual Class)
» July 17-18: M-350: Manager and the Law (Live Virtual Class)
» July 24-25: M-204: Community Governance (Southborough, MA)
» August 7-8: M-100: The Essentials of Community Association Management (Live Virtual Class)
» August 14-15: M-310: Management Company Administration (Live Virtual Class)
» August 21-22: M-202: Association Communications (Live Virtual Class)
NEW CHAPTER MEMBERS
BUSINESS PARTNERS
A Cam Educational Services
Diana Zayas-Bazan, CMCA
Airbnb
Jim Alderman
Aurora Consulting Group
Jose O Nunez
DynaServ
Michael Kruzick
Elevated Facility Services
Kip Sanchez
Global Strategic
Jordan Pearson
Highlight Risk Services LLC
Annabelle Amelia Lastre
HOA Books, LLC
Pablo Alejandro Maida
Lincoln Security Services
Roberto Sosa Ruiz
OpticalTel
Eric Riveron
Persons Services Corp
Samantha Vincenty
PSI Roofing
Poul Folkersen
BUSINESS PARTNERS CONT.
RealManage Insurance Services
William Gruppo
RentRedi Inc.
Edward Barone
Resolute CPA
Deborah Forbush
Roofing Concepts Unlimited
Gary Bauer
Thompson Exterior Services
Joseph Aversa
Wicked Clean
Roberto Felix Nieves
NATIONAL BUSINESS PARTNERS
Hotwire Communications
Marcy Lynn Kravit, CMCA, AMS, PCAM
Superior Fence & Rail
Raul Trestini
MANAGER MEMBERS
Lisa Tamar Pastor
Campbell Property Management
Daleik A. Vaughn, CMCA
Castle Group
Carlos A. Aguilar
Legacy Residential
MANAGER MEMBERS CONT.
Rakesh Kumar Gupta, CMCA
Miami Management, Inc.
Erol Ugljanin, CMCA
Related Management
Jose G. Alvarez
Ian Arnaldo Ochoa
Martin Reategui, CMCA, AMS
Heather J. Rivera
Irta Xhahysa
MANAGEMENT COMPANY
Association Services of Florida
Luis Rodriguez
VOLUNTEER LEADERS
Cypress Bend Protective Corporation
Alan Dugca
Louis Escoto
Paul Keefe
Fairways Royale Association Inc.
Diego Gamboa
Shore Drive Apartments Inc.
Michael Chapman
Anthony Linzalone
Lanny Ross
John-Charles Toussaint
Gary Wojciechowski
New and Returning CAI-SEFL Chapter Members from December 4, 2024 to March 10, 2025
CAI ANNUAL CONFERENCE
Join us for the ultimate gathering of community association managers, homeowner board members, and business partners at the 2025 CAI Annual Conference and Exposition: Community NOW. Connect with old friends and meet new ones at spectacular networking events, inspiring education sessions, and the world-class exhibit hall showcasing the latest technology and solutions for community associations.
EDUCATIONAL SESSION TOPICS
» Strategic Planning
» Artificial Intelligence
» Prepare and Respond to Disasters
» Hybrid and Remote Work
» Advocacy Programs
» Recruiting Board
» Members, Maintenance Strategies
» International Standards
» Insurance Underwriting
KEYNOTE SPEAKER: JOHN ONDRASIK
The only way for a story to progress is to turn the page. John Ondrasik — the songwriter and performer known as the platinum-selling, Grammy-nominated, Five For Fighting—knows this well. In the two decades since his first major single, “Superman (It's Not Easy),” hit the stratosphere, the artist has both evolved and come back 'round full circle. Creativity, if nothing else, is paradoxical.
CAI CENTRAL FLORIDA CHAPTER PARTY
CAICF invites you to the famous Sea World's Aquatica for a fabulous
beach party! Grab a pair of flip flops and enjoy the beach and games on May 8 from 7:00 - 10:00 pm. Buses depart Rosen Shingle Creek at 6:30 pm. Tickets are $125 each and include two drink tickets, dinner, DJ and fun! Registration to the Chapter Party can be added to your Conference registration or you can register separately through the Chapter's website at www.caicf.org
REGISTRATION
Full conference registration includes: All education sessions; All general sessions; Wednesday welcome reception (one ticket); Thursday expo & lunch (one ticket); Friday expo & lunch (one ticket); Friday dinner (one ticket); Friday dinner (one ticket); All session recordings on demand after. Members are $899. Third and additional registrants are $849. Non-Members are $999. Homeowner Members are $784. Visit www.caionine.org/2025AnnualConference to register today. For more information, visit the event website and watch the promo video below on YouTube
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To learn more about how Castle Group can serve your community, visit www castlegroup com or call (954) 792-6000
Corporate Transparency Act Update Suspended for Domestic Reporting Companies
BY COMMUNITY ASSOCIATION INSTITUTE
On March 2, the U.S. Treasury Department issued a statement regarding enforcement of the Corporate Transparency Act.
The official notice says, “not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory guidelines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either.”
Further, the department said it will be issuing a proposed rule making to narrow the scope of the act to foreign reporting companies only.
This recent action is interpreted to mean the Corporate Transparency Act and its reporting requirements are no longer in effect for U.S. citizens or domestic reporting companies, including all applicable community associations.
We thank the many CAI advocates who contacted their members
of Congress to express their opposition to the act’s reporting requirements for community associations. Your voices were heard!
CAI’S FEDERAL LAWSUIT STATUS
On October 24, 2024, CAI’s preliminary injunction request was DENIED by the federal judge in this case. While this decision was not the outcome CAI had hoped for, it does not mark the end of CAI’s efforts. CAI appealed the court’s denial of the preliminary injunction request on November 4, 2024, and on November 12, 2024, filed its opening brief of the appeal in the Fourth Circuit urging a pause on reporting requirements for community associations while this lawsuit is adjudicated. The Government filed it response to CAI’s appeal on February 7, 2025. CAI filed its reply on February 28, 2025.
CAI’s other lobbying and advocacy efforts continue on Capitol Hill seeking both a one-year delay of implementation of the CTA’s reporting requirements and an exemption for community associations. The lawsuit itself is continuing to go through the legal process even as the preliminary injunction decision is being appealed.
Cost-Effective Techniques to Prolong the Life of Your Asphalt Pavement
BY CHADWICK MACKEY, QUALIFIER & CIVIL ENGINEER, DMI PAVING AND SEALCOATING
Your parking lot is more than just a place for vehicles to park—it’s a reflection of your business. A well-maintained asphalt surface can significantly enhance your property’s overall curb appeal, impacting customer satisfaction and even business success. Like any construction material, asphalt deteriorates over time, but with the right care, you can extend its life and reduce the need for costly repairs.
Here are a few cost-effective strategies to prolong the life of your asphalt pavement:
1. PROTECTION FROM WATER
Water is one of the biggest threats to the integrity of asphalt. When water pools on the surface or seeps into the base, it can cause significant damage such as cracks, potholes, and subbase erosion. Preventing water from collecting on your parking lot is key to
preserving its surface. Effective measures include regrading low-lying areas to ensure proper drainage and directing water into designated drainage systems or greenspace. By addressing these concerns early, you can mitigate the risk of water damage and avoid costly repairs in the future.
2. RETAINING SURFACE CONSISTENCY AND SMOOTHNESS
One of the most effective ways to maintain your asphalt is by protecting it from the damaging effects of the sun and other elements. Overexposure to UV rays causes the asphalt to oxidize, leading to surface degradation and the separation of aggregate materials from the binder. To prevent accelerated decay, it’s crucial to apply sealcoating every 2-3 years. This regular maintenance protects the top
Continued on page 22
Community Assoction Management
ASPHALT
layer of asphalt, keeping your pavement smooth and functional for much longer.
3. ADDRESS PROBLEMS EARLY
Localized issues such as fatigue cracking, small potholes, and minor surface deterioration are inevitable as asphalt ages. However, addressing these problems as soon as they arise can prevent them from worsening into larger, more expensive issues.
4. SEALCOATING: THE BEST PREVENTATIVE MEASURE
Sealcoating is a crucial part of pavement maintenance that serves as a protective layer for your asphalt, shielding it from harmful elements such as water, oil, and UV rays. It helps preserve the integrity of your investment, extends the lifespan of your pavement, and improves the visual appeal of your property.
What is Sealcoating?
Sealcoating involves applying a thin layer of an asphalt-based sealant on top of your existing pavement. This sealant forms a barrier, protecting the underlying asphalt from the elements.
When Should You Apply Sealcoating?
It’s always best to incorporate sealcoating into a regular, ongoing maintenance program, every 3-5 years depending on the amount of traffic on your roads.
Benefits of Sealcoating
Sealcoating offers numerous advantages that contribute to the longevity and appearance of your asphalt pavement:
» Protects Against Sun and Weather: Sealcoating creates a protective layer that shields your asphalt from the harsh effects of UV rays, rain, snow, and extreme temperatures. It helps prevent oxidation, fading, cracking, and damage caused by freeze-thaw cycles.
» Reduces the Risk of Further Damage: By providing a barrier to water, oils, and other contaminants, sealcoating reduces the risk of potholes, cracks, and surface degradation. It acts as a shield against moisture that can seep into the asphalt and cause damage over time.
» Cost-Effective Long-Term: While sealcoating involves an upfront cost, it’s an investment that can save you money in the long run by minimizing the need for costly repairs and replacements. Routine sealcoating extends the lifespan of your asphalt surface and reduces the frequency of major repairs.
Maintaining the integrity of your asphalt parking lot doesn’t have to break the bank. By implementing a few key strategies, such as proper water drainage, early repairs, and, most importantly, regular sealcoating, you can extend the life of your asphalt surface, avoid costly repairs, and enhance the overall curb appeal of your property. Sealcoating, in particular, is one of the most cost-effective and preventative measures to preserve your pavement’s appearance and functionality for years to come. Keep up with regular maintenance, and your asphalt surface will continue to serve your business efficiently and effectively.
Chadwick Mackey is a Qualifier and Civil Engineer for DMI Paving and Sealcoating. Chad utilizes his engineering background to help a wide array of clients evaluate their properties for ADA compliance and technical design fixes. He has over 23 years of consulting, civil design, construction estimating, and field experience. He serves as an Expert in Florida ADA Compliance and site upgrade design and construction and is a certified instructor for CEU classes pertaining to asphalt and concrete pavement construction and maintenance. For more information, visit dmipavingandsealcoating.com.
RESERVE FUNDS
Father Time and Mother Nature: Reserve to Preserve
BY NICO F. MARCH, FOUNDER & MANAGING DIRECTOR, THE MARCH GROUP
Condominium living in Florida comes with an undeniable truth: time and nature are constant forces working against a community’s physical and financial stability. No matter how well-built a condominium is, deterioration is inevitable. This is why reserves are not a luxury but a necessity—ensuring structural integrity, financial security, and long-term value. Simply put: Reserve to Preserve.
THE BATTLE AGAINST FATHER TIME
Father Time is relentless. Roofs age, elevators wear out, and plumbing systems corrode. Yet, too many communities rely on reactive maintenance—waiting for failures before acting. This approach is both inefficient and costly. A well-funded reserve ensures financial preparedness for inevitable repairs and replacements. Without reserves, communities face three major risks:
1. Deferred Maintenance Costs More – Ignoring aging infrastructure only worsens problems, increasing expenses.
2. Special Assessments Hurt Homeowners – Insufficient reserves force boards to impose costly special assessments, straining residents financially.
3. Property Values Decline – Buyers scrutinize reserve studies. Underfunded reserves make communities less attractive, driving down home values.
THE WRATH OF MOTHER NATURE
From hurricanes and snowstorms to extreme heat, nature takes a toll. Climate change has intensified these threats, making reserve planning
more crucial than ever. A community without adequate reserves is vulnerable. Consider:
• Hurricane damage: Roofs, windows, and landscaping can be destroyed in minutes. Without reserves, recovery stalls, and as we have seen recently, insurance may not cover all costs.
• Winter wear: Even in Florida, like in New Orleans recently, the potential for ice damage to roads and walkways exists, creating safety hazards and risks.
• Extreme heat & Increased humidity: HVAC systems overwork, leading to expensive breakdowns and increased energy costs.
Insurance helps, but it does not cover everything. Deductibles, uninsured damages, and proactive mitigation require available reserve funds.
THE DANGER OF OPERATING IN A VACUUM
Despite these realities, some condominium associations function as if they are immune to time and nature. This mindset leads to critical financial mistakes:
• Ignoring Reserve Studies – Without regular assessments, financial shortfalls become inevitable.
• Underfunding Reserves – Keeping assessments artificially low results in future budget crises.
• Relying on Hope – Hope is not a financial strategy. Major expenses will arise a matter of when, not if.
Continued on page 25
RESERVE TO PRESERVE: A SMARTER STRATEGY
A well-funded reserve is not just about avoiding financial headaches— it protects the community’s foundation:
• Preserve Property Values – Strong reserves signal to buyers and lenders that the community is well-managed.
• Preserve Financial Stability – Homeowners are not blind sided by unexpected expenses.
• Preserve Quality of Life – Proactive maintenance ensures residents enjoy safe, well-kept amenities.
BUILDING A HEALTHY RESERVE FUND
1. Conduct Regular Reserve Studies – Professionals should assess major components and project future costs every 3-5 years.
2. Fully Fund Reserves – Follow study recommendations to ensure financial stability.
3. Invest Reserves Wisely – Consider FDIC-insured or US Government backed investment options that balance returns and liquidity.
4. Educate Homeowners – Transparency fosters trust and support for long-term planning.
5. Plan for the Unexpected – Emergencies happen. A contingency fund or emergency credit line, prevents financial scrambling.
FUTURE-PROOFING YOUR COMMUNITY
Ignoring the impacts of time and nature leads to financial distress and resident dissatisfaction. The reality is simple: buildings age, disaster strike, and unexpected costs arise.
The best defense is a well-funded reserve. By adopting the philosophy of Reserve to Preserve, communities can protect their financial future, maintain property values, and ensure a high quality of life for residents.
Preparing for the inevitable, especially in Florida, is not just smart, it is essential. Communities that plan ahead will thrive, while those that neglect reserves will struggle. Do not wait for a crisis. Start building a stronger future today.
Nico F. March is the Managing Director for The March Group, LLC. He has collaborated with Community Associations since 1974 and has served on numerous HOA Boards, including the Board of Directors for the Community Association Institute. Nico is the author of “Reserve Studies and Funds: How and Why Community Associations Invest Their Assets” (ISBN: 978-1-59618-053-6). Click here to purchase this material at caionline.org.
The Infrastructure Dilemma: How Aging Condos are Reshaping Association’s Priorities
BY DANIEL CORCEGA, CMO, SMAART COMPANY, ROYALE MANAGEMENT SERVICES
Across the country, aging condominiums are forcing homeowners’ associations to confront a stark reality—what was once new and modern is now deteriorating. Many of these communities, built decades ago, are showing signs of wear that can no longer be ignored. From structural issues to outdated electrical and plumbing systems, the challenges of aging infrastructure are rapidly reshaping the priorities of associations boards. The cost of inaction is high, leading to declining property values, rising insurance premiums, legal liability, and frustrated homeowners.
For many boards, the challenge is not just recognizing the problem but determining how to address it effectively. Financial constraints,
regulatory pressures, and community resistance to increased fees make it difficult to implement the necessary repairs. Yet, avoiding these critical discussions only makes the problem worse.
A CRISIS IN THE MAKING
Time takes its toll on every building. Cracks appear in concrete, plumbing systems corrode, roofs weaken, and electrical wiring struggles to keep up with modern demands. Maintenance that was once routine becomes urgent, and what was once an inconvenience turns into a liability.
Continued on page 28
CONDO BUILDINGS
Recent condominium collapses and structural failures have highlighted the dangers of neglecting aging infrastructure. In response, many states have tightened building inspection laws, requiring associations to conduct thorough safety assessments and make necessary repairs. But compliance comes at a cost. Inspections often reveal millions of dollars in deferred maintenance, leaving boards scrambling to figure out how to pay for them.
Compounding the problem is the financial strain that many associations already face. Reserve funds, which should be set aside for major repairs and replacements, are often underfunded. Special assessments—one-time fees charged to homeowners to cover emergency costs—are an unpopular but increasingly necessary tool. Faced with mounting expenses, some associations delay repairs, hoping to stretch their budgets further. But postponing necessary work only leads to larger bills in the future, as small issues grow into costly structural failures.
THE NEW REALITY: HOW ASSOCIATIONS MUST ADAPT
For decades, many associations boards have focused on keeping homeowner dues low, avoiding fee increases whenever possible. But in the face of aging infrastructure, this mindset is no longer sustainable. The new reality demands a shift in priorities—one that places longterm stability over short-term convenience.
One of the most pressing changes is the need for increased reserve contributions. Experts recommend that associations fund at least 70% of their projected repair costs over a 30-year period, yet many communities fall far below this benchmark. Conducting regular reserve studies, adjusting monthly dues accordingly, and planning for future repairs rather than reacting to crises will ensure financial stability.
Another major shift involves regulatory compliance. Stricter laws now require structural inspections, and associations must stay ahead of these mandates to avoid legal and financial repercussions. Keeping up with new building codes, scheduling engineering assessments, and budgeting for mandated repairs is no longer optional—it is essential for the safety of residents.
BALANCING HOMEOWNER CONCERNS AND LONG-TERM PLANNING
Convincing homeowners to support increased fees or major renovations is one of the most difficult tasks for association boards. Residents are often resistant to higher costs, especially those on fixed incomes. However, education and transparency are key. Boards that communicate openly about the necessity of repairs, the risks of inaction, and the potential long-term savings are more likely to gain homeowner support.
Some communities have successfully implemented gradual fee increases to lessen the financial burden. Others have pursued association loans as an alternative to lump-sum special assessments, allowing repairs to proceed without placing an immediate strain on homeowners. Exploring grants and government programs for energyefficient upgrades is another way to offset costs while modernizing infrastructure.
At the heart of this issue is the need for proactive, not reactive, management. Waiting until an emergency forces action is the most expensive and disruptive path forward. Instead, associations must embrace preventative maintenance—regularly inspecting roofs, plumbing, and electrical systems, addressing small repairs before they become major problems, and planning for long-term sustainability.
Aging condominiums present one of the most significant challenges associations boards have ever faced. But with careful planning, financial foresight, and a commitment to safety, these challenges can be met head-on.
Associations that take the initiative today—by strengthening reserves, ensuring compliance, investing in modern infrastructure, and fostering open communication with homeowners—will create stronger, safer, and more valuable communities. Those that delay risk facing skyrocketing costs, legal trouble, and declining property values.
The decisions made today will shape the future of these communities for decades to come. The question is no longer if these changes need to happen, but how soon associations will take action to secure their long-term stability.
Daniel Corcega is a seasoned marketer with over a decade of expertise in digital marketing, branding, strategic execution, and communication. As Marketing Director at SMAART Company and their divisions, he spearheads innovative marketing solutions to drive impactful results and elevate brand value. For more information, visit royalemanagement.com.
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Why Are Roof Inspections Important?
ARTICLE & PHOTO BY ZACHARY TOWERS, VICE PRESIDENT OF REVENUE, BEST ROOFING SERVICES
Your roof is one of the most important parts of your property, yet it is often overlooked. Regular roof inspections help prevent costly damage, extend the lifespan of your roof, and ensure your building remains structurally sound. Whether you manage residential or commercial properties, scheduling inspections can save thousands in repairs.
WHY ROOF INSPECTIONS MATTER
✓ Detect Issues Early – Minor roofing problems, like cracked tiles or missing shingles, can escalate if left unchecked. Inspections help catch them early.
✓ Prevent Expensive Repairs – A small leak today can lead to severe structural damage. Addressing issues before they worsen can prevent costly repairs.
✓ Ensure Structural Integrity – A well-maintained roof protects your property from harsh weather conditions, including storms and heavy rainfall.
✓ Maintain Insurance Coverage – Many insurance policies require roof inspections. Proper documentation ensures compliance and smooth claims if damage occurs.
✓ Enhance Property Value – A well-maintained roof increases property appeal, whether you’re selling or leasing.
WHEN TO SCHEDULE A ROOF INSPECTION
Experts recommend professional inspections twice a year—once in
spring and once in fall—to address seasonal changes. However, certain conditions may require additional inspections:
» After Severe Weather – High winds, storms, or hurricanes can cause hidden damage.
» Before Buying or Selling a Property – A roof inspection provides insight into a roof’s condition and lifespan.
» If the Roof is Over 10 Years Old – Older roofs require frequent assessments to detect early signs of deterioration.
ROOF INSPECTION CHECKLIST
A professional inspection evaluates various aspects of your roofing system, ensuring safety and durability.
1. Exterior Inspection
» Check for missing, damaged, or curling shingles/tiles.
» Inspect deteriorated sealant around vents and chimneys.
» Look for moss, algae, or mold growth.
» Assess standing water or drainage issues.
» Inspect flashing around skylights, vents, and chimneys.
» Evaluate gutters and downspouts for blockages or improper drainage.
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ROOFING
2. Interior Inspection
» Check ceilings and walls for water stains or discoloration.
» Inspect attic spaces for mold, mildew, or poor ventilation.
» Look for sagging or uneven roof decking.
» Assess insulation levels and moisture buildup.
3. Structural Integrity Evaluation
» Examine the roof deck for warping or weakness.
» Inspect trusses and beams for movement or cracks.
» Ensure chimneys and additional structural components are stable.
4. Leak Detection & Water Damage
» Identify active leaks or high-moisture areas.
» Inspect roof valleys, joints, and penetrations for vulnerabilities.
» Use infrared technology (if available) to detect hidden leaks.
5. Drone-Assisted Inspections (if applicable)
» Capture high-resolution images of hard-to-reach areas.
» Detect small cracks and surface wear invisible from the ground.
» Provide a comprehensive visual assessment of the roof.
» After completing an inspection, property owners receive a detailed report outlining findings, recommended maintenance, and necessary repairs.
HOW MUCH DOES ROOF INSPECTION COST?
The cost of a roof inspection depends on various factors, including the roof size, materials, and required technology.
» Standard Roof Inspection: $150–$400
» Drone Roof Inspection: $250–$600 (offers high-resolution imagery without requiring ladders)
» Comprehensive Inspection (Including Infrared Scans): $500–$1,000 for larger properties
» Investing in inspections helps property owners avoid unexpected and costly repairs.
THE ROLE OF DRONE TECHNOLOGY IN ROOF INSPECTIONS
Advancements in technology have made inspections safer and more efficient. Drone inspections provide a non-invasive, high-resolution alternative for evaluating roofing conditions, especially on steep or multi-story buildings.
BENEFITS OF DRONE INSPECTIONS
✓ Enhanced Safety – No need for workers to climb dangerous roofs.
✓ High-Resolution Imaging – Identifies damage invisible to the naked eye.
✓ Faster Turnaround – Reduces inspection time and speeds up reporting.
Drone technology offers aerial views and detailed documentation, making it a valuable tool for property assessments.
WHAT HAPPENS AFTER A ROOF INSPECTION?
Once an inspection is complete, the property owner receives a comprehensive report that typically includes:
» Photographic evidence of damage or wear.
» Recommendations for repairs, maintenance, or replacements.
» An estimated lifespan of the current roofing system.
» Preventive measures to avoid further deterioration.
If significant damage is found, a follow-up consultation may be necessary to discuss next steps.
Regular roof inspections are a proactive approach to property maintenance. Scheduling biannual inspections, post-storm assessments, and pre-sale evaluations ensures long-term durability, reduces unexpected expenses, and helps maintain structural integrity.
Investing in inspections protects your property, prevents major repairs, and saves money in the long run.
Zachary Towers is Vice President of Revenue at Best Roofing. He previously worked in the insurance restoration industry, managing large loss commercial projects and building teams across multiple regions.
Since 1978, Best Roofing has been committed to understanding client needs and building strong, professional relationships that stand the test of time. We offer a seamless, stress-free experience, delivering quality service and clear communication at every stage of your roofing project. With the personalized care of a dedicated team and the expertise of a large contractor, Best Roofing has become the trusted partner for South Florida’s community associations, property managers, and commercial property owners. Over the past 46 years, Best Roofing has crafted a proven 31-Step Process that ensures success. Out of more than 100,000 roofing contractors nationally, Best Roofing is continually recognized among the top 1% by leading manufacturers for our quality, consistency, and volume. Our highly trained and certified teams, supported by a fleet of over 150 vehicles, are equipped to provide solutions for Flat, Tile, Shingle, and Metal roofing systems. Our unwavering commitment to excellence in roof repairs, restorations, and replacements has solidified our position as South Florida’s premier roofing company. For more information, call 888-892-2378.
MILESTONE INSPECTIONS
Preserving Building Integrity
With BillerReinhart, you get reliable, thorough inspections, tailored to your building's needs
We will help you keep your property safe and in compliance with state regulations
Our detailed reports, client-focused service and knowledge of local laws set us apart.
•Treasury services and payment processing
•Variety of ways for homeowners to pay
•Coupon books and statements
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Give us a call today to see how we can help or learn. more at Truist.com/AssociationServices
Henry Campos, Relationship Manager 786-514-3030 | Henry.Campos@Truist.com
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Handling Overdue Assessments Best Practices for HOA Board Members
BY EMMA HARRAH, MARKETING COORDINATOR, VESTA PROPERTY SERVICES
Homeowners’ Associations (HOAs) rely on timely assessment payments to maintain common areas, provide essential services, and uphold property values. However, dealing with overdue assessments can be a challenging responsibility for HOA board members. Striking the right balance between firm enforcement and fair treatment is key to ensuring financial stability while maintaining positive community relations.
If your HOA struggles with delinquent payments, implementing clear policies and proactive strategies can make collections more effective and less stressful. Here are the best practices to handle overdue assessments efficiently and professionally.
FOLLOW GOVERNING DOCUMENTS & STATE LAWS
Before taking any action on overdue assessments, HOA board members must thoroughly review the association’s governing documents, including the Covenants, Conditions & Restrictions (CC&Rs) and bylaws. These documents outline the association’s rights regarding
assessments, late fees, interest charges, and collection procedures. Additionally, it is crucial to comply with state laws governing HOA collections. Many states have regulations on how and when an HOA can take enforcement actions, such as sending late notices, applying liens, or pursuing foreclosure. Failing to follow legal guidelines can lead to disputes and potential liability for the association.
IMPLEMENT A CLEAR & CONSISTENT COLLECTION POLICY
A well-defined collection policy provides transparency and ensures fairness for all homeowners. Your policy should clearly state assessment due dates, late fee structures and interest rates, the process for overdue payments, and steps for escalating delinquent accounts. To promote compliance, communicate this policy to homeowners annually and include it in welcome packets for new residents. Consistency in enforcement helps prevent misunderstandings and reinforces the importance of timely payments.
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SEND REMINDER NOTICES PROMPTLY
One of the most effective ways to encourage timely payments is to send reminders as soon as a payment becomes overdue. Start with a friendly reminder via email, letter, or automated message. Often, homeowners may have simply forgotten to pay and will quickly resolve the issue once reminded. If the payment remains unpaid, follow up with a formal late notice detailing the amount due, any penalties, and a deadline for payment. This proactive approach prevents minor delinquencies from becoming long-term issues.
OFFER PAYMENT PLANS (WHEN APPROPRIATE)
Some homeowners may experience temporary financial hardships that prevent them from making full payments. In such cases, offering a structured payment plan can be a win-win solution. A reasonable payment plan allows the homeowner to catch up while ensuring the HOA continues receiving funds. Any agreement should be documented in writing and approved by the board to maintain transparency and consistency.
ENFORCE LATE FEES & INTEREST
Late fees and interest charges serve as deterrents against non-payment and help cover administrative costs associated with collections. However, they should be applied fairly and consistently. While it may be tempting to waive late fees for homeowners who request exceptions, doing so too frequently can set a bad precedent and encourage others to delay payments. Instead, apply fees as outlined in the governing documents and consider case-by-case exceptions only in extraordinary circumstances.
USE A COLLECTION AGENCY OR ATTORNEY WHEN NEEDED
If internal collection efforts fail, involving a professional collection agency or HOA attorney can be the next step. These professionals specialize in recovering overdue assessments while ensuring compliance with state and federal collection laws. Before escalating the issue, check whether state laws require a pre-lien notice before filing a lien against the property. Taking the correct legal steps is essential to protect the HOA from potential legal challenges.
PLACE A LIEN ON THE PROPERTY (AS A LAST RESORT)
When all other collection efforts have failed, an HOA may file a lien against a delinquent homeowner’s property. A lien serves as a legal claim that must be satisfied before the property can be sold or refinanced.
In extreme cases, HOAs may have the option to pursue foreclosure. However, foreclosure should always be a last resort, as it can be costly and time-consuming. Ensure that all actions comply with state laws and consult an attorney before proceeding with such measures.
KEEP COMMUNICATION PROFESSIONAL & DOCUMENT EVERYTHING
Throughout the collection process, maintaining professional and respectful communication is critical. HOA board members should avoid aggressive or harassing tactics that could lead to legal repercussions. Keep detailed records of all correspondence, payment attempts, and homeowner responses. Documentation is essential in case a dispute arises or legal action becomes necessary. Having thorough records can also support the HOA’s position if legal intervention is required.
Emma has been with Vesta Property Services since 2021 and has worked in a variety of roles. She started at Durbin Crossing, a community in St. Johns, FL. There, Emma participated in event planning, social media marketing, and E-Blast/Newsletter creation. She then transitioned to Fleming Island Plantation, a new contract for Vesta, to help get their marketing efforts up and running. Most recently, Emma was promoted to the Marketing Coordinator position at Vesta’s Corporate Office. Here she is working alongside the Marketing team to implement the efforts of Marketing Vesta and its TopRated management services. For more information, call Emma at 904355-1831 or visit vestapropertyservices.com.
The Importance of Milestone Inspections
BY BRIAN WALTER, PE, SI, PRESIDENT & PRINCIPAL STRUCTURAL ENGINEER BILLER REINHART ENGINEERING GROUP
Imagine a busy commercial building suddenly facing structural failure. The potential danger and disruption highlight the necessity of maintaining a building’s safety and stability. Milestone inspections are crucial in identifying issues early, preventing catastrophic failures, and extending a structure’s lifespan.
THE PURPOSE OF MILESTONE INSPECTIONS
Milestone inspections are conducted at specific intervals to assess a building’s structural integrity. Their primary goal is to ensure occupant safety by detecting weaknesses or hazards before they escalate. These inspections also help maintain property value, as routine maintenance prevents minor problems from becoming major, costly issues. For commercial properties, regular assessments support business operations and tenant satisfaction.
KEY COMPONENTS OF A MILESTONE INSPECTION
1. Structural Assessment: Inspectors evaluate foundations, loadbearing walls, beams, and other critical components. They look
for cracks, corrosion, or deformation that may indicate deeper problems. Advanced techniques such as non-destructive testing (NDT) may be used to assess structures without causing damage.
2. Mechanical and Electrical Systems: Inspectors examine HVAC systems, plumbing, electrical wiring, and fire safety measures. Ensuring these systems function properly is vital for occupant safety and building efficiency.
3. Building Envelope: The roof, exterior walls, windows, and doors are inspected for water infiltration, insulation deficiencies, and energy efficiency concerns. Proper maintenance of the envelope prevents costly repairs and prolongs the building’s life.
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4. Interior and Exterior Conditions: Common areas, individual units, parking structures, and landscaping are reviewed for damage, wear, and compliance with safety standards.
WHEN ARE MILESTONE INSPECTIONS REQUIRED?
Inspection frequency varies based on factors such as building type, age, and local regulations. Typically, inspections occur at regular intervals throughout a building’s lifecycle. A new structure may undergo an initial inspection within a few years of completion, followed by assessments every five to ten years. Additional inspections may be required following significant renovations, changes in occupancy, or natural disasters such as earthquakes or hurricanes.
THE BENEFITS OF REGULAR MILESTONE INSPECTIONS
1. Preventative Maintenance: Early detection allows for timely repairs, reducing the risk of costly emergencies and ensuring the building remains safe and functional.
2. Cost Savings: While inspections involve an upfront cost, they help property owners avoid expensive large-scale repairs or replacements. Identifying issues early prevents financial strain due to structural failures.
3. Regulatory Compliance: Regular inspections ensure buildings adhere to evolving safety codes, protecting property owners from legal issues and potential fines.
4. Enhanced Building Performance: Well-maintained electrical and mechanical systems improve efficiency, lowering utility costs. A properly maintained building envelope also regulates indoor temperatures, enhancing occupant comfort.
5. Increased Property Value: Properties with routine maintenance retain their value better over time. For commercial buildings, this translates to higher tenant satisfaction and stable rental income.
CHOOSING THE RIGHT PROFESSIONAL FOR MILESTONE INSPECTIONS
Selecting a qualified inspector is crucial. Look for professionals with extensive experience in structural engineering and building assessments. They should also be familiar with local codes and regulations. When evaluating inspection services, consider their track record, references, and portfolio to ensure thorough and accurate evaluations. A reputable provider will offer a detailed report outlining findings, recommendations, and necessary maintenance.
Brian Walter is the President of Biller Reinhart Engineering Group, bringing extensive expertise in structural engineering design, consultation, assessments, and inspections. Throughout his career, he has developed detailed layouts and designs for structures incorporating concrete, steel, masonry, and timber, utilizing both static and dynamic analysis. His proficiency extends to conducting condition surveys and crafting comprehensive design and construction plans to renovate and restore existing structures. Contact us today at 855-4827655 or email info@billereinhart.com to schedule your inspection. For more information, www.billerreinhart.com.
Your Guide to HOA Financing Options
BY JAYME GELFAND, PCAM, VICE PRESIDENT, REGIONAL SALES OFFICER, FIRST CITIZENS BANK
When it’s time for one of your homeowners associations to finance a capital project, how do you help them secure the funds? You could charge homeowners a special assessment or dip into HOA cash reserves, but those options put burdens on the homeowners or the association. Another option to consider is financing from a bank that specializes in loans designed for the needs of HOAs. Bank financing for HOAs is structured to allow associations to move forward with projects and capital improvements without putting a burden on homeowners or capital reserves.
IS COMMUNITY ASSOCIATION BANK FINANCING RIGHT FOR YOU?
With community association bank financing, a loan is made directly to the association, which is then responsible for repayment using the funds collected from assessments from the homeowners over a multiyear period. In addition to avoiding substantial upfront payments for new projects or expenses, HOA financing allows an association to continue contributing to their reserve funds.
ADVANTAGES OF USING A BANK THAT UNDERSTANDS ASSOCIATION NEEDS
Veteran community association bankers harness their knowledge of the industry to help HOAs and community associations navigate the entire financing process—from loan selection to homeowner communications to any operational concerns. Once a loan is selected,
an experienced HOA banker will have the capabilities and willingness to speak to homeowners on behalf of the board at meetings and answer questions regarding terms throughout the loan period.
In addition to the loan process, banks with experience in community association lending can assist management companies with the financial management side of their businesses. They’ll work closely with accountants and attorneys to ensure everyone is satisfied with the methods of payment and operational aspects of the financing program.
When examining your banking options, it’s also wise to consider financial strength. Banks with long histories serving HOAs—as well as strong balance sheets—are often better positioned to fund new projects with agreeable terms, robust support systems and accessible customer service.
TYPES OF FINANCING AVAILABLE THROUGH ASSOCIATION BANKING
Digging into the details of the HOA loans available can help you determine which type of financing is best for your project. Community association banks typically offer HOAs multiple loan options that can accommodate a range of projects and budget sizes. For example, First Citizens offers three HOA lending options: quick-term loans,
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traditional term loans and revolving lines of credit. Lines of credit aren’t as popular for funding larger projects because the funds need to be repaid annually.
Traditional term loans offer HOAs more flexibility as the terms range from 5 to 15 years with fixed rates and no maximum loan limits. Quick-term loans are popular because they offer up to 10-year terms, have no minimum loan amounts and offer 3- to 5-day turnaround times in cases where no additional information is needed.
UNDERSTANDING THE HOA LOAN REQUIREMENT AND APPROVAL PROCESS
Once a community association decides to move forward with an HOA loan application, the approval criteria is straightforward. First Citizens’ requirements are that the association needs to manage a minimum of 25 units, have an effective collection policy in place and have up-to-date financials.
When processing an application, we review the HOA’s current income statement, balance sheet and aging report. In certain instances, a board vote or an amended HOA declaration may also be required, so it’s wise to understand the association’s governing documents and the applicable state laws when applying.
Discussing your association’s needs with an association banking
FINANCING
professional can help you quickly determine what may be an effective option for your situation.
Jayme Gelfand brings over 40 years of experience in the community association industry to her role as VP, Regional Sales Officer covering the Southeast Florida region of First Citizens Bank. Jayme comes to First Citizens Bank after 10 years servicing the community association industry at another financial institution. 30 years was spent in association management servicing association developers and property management companies. Jayme holds her CMCA, AMS, and PCAM designations with CAI. Jayme had served as Chapter Executive Director for the Gold Coast Chapter of CAI for fourteen years. Jayme is dedicated to supporting associations in achieving their goals by providing guidance to the Association members and Board of Directors to make informed decisions and ensure products meet requirements governing documents. Jayme plans to continue this dedication by providing quality services to assist with operating, financial, and administrative banking needs to her clients. Jayme looks forward to getting to know you and your communities. You can reach out to her directly at jayme.gelfand@ firstcitizens.com and 561-251-1980.
Understanding Risk Transfer in Property Management:
Why Some Jobs Require Licensed Contractors
BY DALEIK VAUGHN, MBA, LCAM, CMCA, REGIONAL DIRECTOR, AKAM
Asproperty managers, we are often tasked with making decisions that balance operational efficiency, costeffectiveness, and risk management. One of the key responsibilities in this role is knowing when to delegate maintenance and repair tasks to in-house staff versus hiring a licensed and insured contractor. The distinction between the two can have significant implications for liability, safety, and legal exposure.
A REAL-WORLD SCENARIO: POOL DECK REPAIRS
During a recent property walkthrough with the Board of Directors at one of the properties in my portfolio, the Board requested that our in-house maintenance team handle minor concrete crack repairs and floor painting at a ground-floor pool deck area. While the scope of work may have seemed manageable for our maintenance team, I pushed back—not because I doubted their capability, but because of the liability risks associated with the job.
Pool decks are high-traffic areas where slip-and-fall accidents are a major concern. The application of paint or sealants on a walking surface, especially in a wet area, requires precise selection of materials and proper application techniques to ensure compliance with safety
standards. If an improper product is used or applied incorrectly, the community could be exposed to legal claims from residents or visitors who suffer an injury due to hazardous conditions.
Rather than allowing our maintenance team to proceed with the work, I recommended transferring the risk to a licensed and insured general contractor or a professional painter who is certified in applying the specific products. This decision was not just about quality control—it was about ensuring the community and our management company were protected from unnecessary liability.
WHY RISK TRANSFER MATTERS
Property managers must recognize when it is necessary to transfer risk by hiring a qualified contractor. Here are a few key reasons why:
1. Liability Reduction
If an in-house team performs work outside their normal scope and something goes wrong (e.g., improper application leading to slip-andfall injuries), the community and management company could be held
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liable for negligence. Hiring a licensed contractor shifts the liability to a professional who carries the appropriate insurance.
2. Compliance with Regulations
Certain repair and maintenance tasks require compliance with local building codes, OSHA safety regulations, and industry standards. Licensed contractors are trained to follow these guidelines, ensuring the work is performed legally and safely.
3. Insurance Coverage
A professional contractor carries general liability and workers’ compensation insurance. If an accident occurs on-site, their insurance policy will cover damages, reducing the financial exposure of the community.
4. Material Selection and Application Expertise
Specialized coatings, sealants, and concrete repair materials require expert handling. A trained contractor will use the right materials and techniques to ensure long-term durability and compliance with safety standards.
5. Warranty and Accountability
Reputable contractors offer warranties on their work, ensuring that if issues arise, they are responsible for repairs. In-house staff may not be able to offer the same level of accountability.
WHEN IN DOUBT, CONSULT LEGAL COUNSEL
A prudent property manager should always consult with the community’s legal counsel when faced with uncertainty regarding liability exposure. Legal professionals can provide guidance on contractual requirements, insurance considerations, and best practices for risk management. Engaging an attorney before undertaking a
RISK MANAGEMENT
potentially high-risk project can prevent costly litigation and protect both the community and the management company from undue exposure.
Property managers must exercise sound judgment when determining whether a job can be handled in-house or requires professional expertise. While cost-saving measures are important, they should never come at the expense of safety and legal protection. Transferring risk to licensed and insured contractors when necessary is a proactive approach to mitigating liability and ensuring long-term operational success.
In the end, risk management is about making informed decisions that safeguard residents, protect assets, and uphold professional standards in property management. By recognizing when to transfer risk and consulting legal counsel when needed, property managers can ensure that their communities operate smoothly while minimizing exposure to potential claims and liabilities.
Daleik Vaughn, MBA, LCAM, CMCA® is a Regional Director with AKAM and Adjunct Professor of Residential Property Management at Nova Southeastern University. For more information, contact Daleik at dvaughn@ akam.com or visit akam.com.
