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central florida times


Second Quarter 2016

contact information P.O. Box 941125 Maitland, FL 32794 407-850-0106

board of directors Suzan Kearns, CMCA, AMS, PCAM, President Gina Holbrook, CMCA, President-Elect Paul Melville, Vice President Bill Jackson, CPA, Treasurer Brian Peck, Secretary Lou Biron John Dougherty Chris Martinez Diane Rullo, PhD Matt Vice Erik Whynot, Esq.

a message from the president They say time flies when you’re having fun, and we’re halfway through 2016! Thank you for your participation in making this a good spring for the Central Florida Chapter of CAI. In May, the CAI National Convention was in town at the Rosen Shingle Creek and with that, the Central Florida Chapter had the opportunity to showcase our chapter at the National Party. This year the theme was Cinco de CAI-O and the party was held at Madam Tussauds at the Orlando 360. The party was a success with more than 250 attendees and raised money for the chapter. Thank you to Reini, the committee lead by Gary Van der Laan, and to our Sponsors: BrightView Landscaping, Converged Services Inc (CSI), Optimal Outsource, Vice Painting, Village Management Software, and Your Private Adjustor. Thank you also to all the members that volunteered to help during CAI National and attended our National Party. Education and networking are what CAI is all about. The National Convention is an opportunity to network with managers, business partners, and volunteers from across the nation. It was an educational and fun three days. All of the PMDP classes (Professional Management Development Program) were offered and several of our members took the PCAM (Professional Community Association Manager) Case Study. There were many from across the nation that walked the stage to be recognized for earning their PCAM designation in the past twelve months. Congratulations to our very own Kent Taylor of Leland Management for earning his PCAM! I’m so very proud of our chapter for having 22 PCAMs, 58 AMSs (Accredited Management Specialist), and over 100 CMCAs (Certified Manager of Community Association). We also have three CIRMS (Community Insurance and Risk Management Specialists) and five RS (Reserve Specialists) that are members of our chapter. At the National Conference in 2015, CAI rolled out a program for volunteers, the Board Leadership Development Workshop, that teaches Board Members how to communicate with their residents and work with their business partners to make their community a place that their owners are proud to call home. This year CAI rolled out a program to business partners called Business Partner Essentials that helps them better understand CAI, community associations, and the industry. By taking the two part course, business partners can earn the CAI Educated Business Partner distinction. At CAI National each year, Chapter Awards are given for chapters with outstanding programs. Reini Marsh entered our chapter for one and as a result, our Chapter was awarded an Achievement Award for Membership Programming for our “Meet the Managers” event! Thank you Reini and thank you to Cathy Bowers who brought this program to the chapter as an event for our Business Partners five years ago. It’s one of our most popular events. Time certainly does fly…I’m halfway through my term as President and it seems


President’s message continued on next page

President’s message continued like only yesterday I was elected to the Board of Directors. We have Meet the Managers coming July 14th and the Luncheon, Mastering the One Hour Board Meeting, on August 4th. Thank you all for your participation in making our chapter great. I feel honored to be your President and look forward to seeing you soon!

Suzan Kearns Suzan Kearns, CMCA, PCAM President, CAI Central Florida Chapter

central florida chapter update 2016 calendar of events More details regarding upcoming events will be posted to under Events. Check back regularly for the most up-to-date information! •

July 14th: Meet the Managers at Dubsdread County Club in Orlando

October 6th: Breakfast - “Legal Panel” (Location TBD)

August 4th: Luncheon - “Mastering the One Hour Board Meeting” at Dubsdread County Club in Orlando

October 21st: Annual Golf Tournament at Celebration Golf Club

November 3rd: Luncheon - “Conflict Resolution” (Location TBD)

November 5th: Sunshine Dream Village Volunteer Work Day

December 1st: Annual Meeting/Winter Gala (Location TBD)

August 6th: Sunshine Dream Village Volunteer Work Day

August 18th: Summer Social (Location TBD)

September 1st: Luncheon - “Running Efficient Meetings and Election Processes” (Location TBD)

event rsvp reminder 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. Thank you for your help!

interested in getting more involved? join a caicf committee! If you are interested in getting more involved in the chapter, joining a committee is a great thing to consider. Below are the different committees that we currently have active. Please feel free to contact any of the following committee chairs: CA Day/Tradeshow Committee John Dougherty Leland Management Communications Committee Bianca Duffield The Association Law Firm Education Committee Gary van der Laan Leland Management Phil Masi Assured Partners


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Golf Committee Scott Pollock Sentry Management Rick Shreve True Property Group Legislative Committee Lou Biron Sihle Insurance Group Membership Committee Paul Melville Universal Contracting

Meet the Managers Committee Cathy Bowers True Property Group Social Committee Tara Munoz Gala Committee Gina Holbrook Premier Association Management Sunshine Foundation Committee Jennifer Agravat

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From Finances to Engineering, Ensure a Healthy Beginning for Your Association


ongratulations! Your community association has reached the Florida statutory threshold of 90% member owned. The developer is now stepping off of the board of directors and handing the brand new not-for-profit “baby” association to the membership. Whether you are an owner in a condominium association or a homeowners’ association, turnover from developer control is the most important event in your association’s short history. Both types of associations are entitled to elect a majority of their respective board of directors within three months after 90% of all parcels “in all phases of the community” or all “units that will be operated ultimately by the association” have been sold. The turnover triggers between condominium associations and homeowners’ associations vary slightly. However, triggers such as a developer abandoning the property, filing for bankruptcy or receivership, or defaulting on a mortgage note are not common and present a series of other issues and complications that are beyond the scope of this article. The most common trigger for both types of associations is when the developer has successfully sold at least 90% of the parcels or units within the community or, for a condominium association, within three years after 50% of the units have been sold. 6

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Florida Statutes provide a list of documents that a developer must provide to the membership at or around turnover. More often than not, the new board does not receive all of the turnover documentation that is required by statute. It is similar to being handed a box full of IKEA parts and asked to assemble an entertainment center without the instructions. While it may not be an issue of immediate concern where the developer fails to provide copies of all governmental permits, for the new owner-controlled board to proceed forward in the best interest of the association it should know, 1) what contracts the developer-controlled board entered into; 2) what ongoing and outstanding financial obligations is the new board being asked to assume; 3) what is the overall financial well-being of the association; 4) did the developer fund reserves and, if so, through what method and in what amount were they funded; and 5) what are the terms and duration of any warranties provided by contractors who worked on the property. The newly elected owner-controlled board should receive a copy of every contract or agreement that was entered into prior to turnover. The Florida Condominium Act provides

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developer turnover continued the new owner-controlled board with the ability to cancel certain contracts entered into by the developer on behalf of the association. However, there are statutory time frames related to any proposed cancelation that should be adhered to. The Florida Homeowners’ Association Act provides cancelation rights for specific types of contract under Section 720, 309, Florida Statute. However, whether you are a new board member of a condominium association or a homeowners’ association, you should be fully informed as to the extent of association pre-turnover contractual obligations; and it is the developer’s obligation to provide this full disclosure to the new board. The audited financial statements from the developer-controlled board should provide answers to most of these important questions. Florida law for both types of associations specifically requires that the financial statements be provided by and independent certified public accountant within ninety (90) days of election of the owner controlled board. However, the association should keep in mind that the requirement to hire an “independent” CPA is a developer obligation. It is very rare that the audited financials from the developer hired CPA fully and accurately disclose all monies owed by the developer to the association; more often than not, the developer financials will show the exact opposite. The association should hire its own CPA to review and audit the pre-turnover financials. One primary analysis that should be performed is on the developer’s deficit funding where the developer has elected to avail itself of a statutory pre-turnover assessment guarantee period. Community association reserve funding can be a fairly complicated issue that involves both accounting and engineering expertise. The purpose of funding reserves is to ensure that an association will have money on hand to perform capital improvements with regard to specific common elements located on the property. The financial disclosure should illustrate whether the developer established reserves, for what elements reserves were established, whether the reserves were partially or fully funded, or whether the developer waived reserve funding for the first two years of the community’s existence. Pursuant to Florida law, the developer may opt to waive the first two years of reserve funding; after that, any waiver or partial funding of an association’s established reserve accounts must be done by a membership vote. Both the initial developer option to waive, and any subsequent waiver or approval to partially fund, should be clearly shown in pre-turnover board and membership meeting minutes. Certification from an architect or engineer is only a turnover requirement for condominium associations. The best way to 8

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ensure that an association’s reserve designations are adequately funded is for the association to hire an engineer to perform a comprehensive common element inspection and reserve study. A reserve study will confirm the appropriate value for the remaining life of reserve elements. Further, the association should retain an independent engineer to inspect the property and association common and limited common elements for the purpose of identifying construction defects on the property. Community association construction defect litigation, and the statutory requirements related to such claims, is very complex. The association should work with its’ engineer and attorney to ensure that these claims are properly considered and acted upon in the best interest of the community. The issues and potential problems outlined above just scratch the surface of turnover related traps facing a newly elected board of directors. The owner-controlled board should retain an attorney knowledgeable in community association law, a CPA who is familiar with community association accounting practices, and retain an engineering firm that is experienced in community association construction defect issues. The association should also work closely with its’ management company to ensure that turnover is managed smoothly. One way in which to help ensure a smooth turnover is to have the developer establish a turnover committee made up of non-developer owner-members. Developers can come and go just about as quickly and predictably as the rising and setting of the sun. Directors are charged with helping to ensure their community association is viable and healthy for many years to come. The viability, health, and longevity of your association starts with turnover.

Erik Whynot, Esq. is a Partner Attorney at Katzman Garfinkel and on the Board of Directors for CAI Central Florida. Learn more at www.

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“Devoted to the Personalized Representation of Community Associations” 390 N. Orange Ave. Ste. 2300 Orlando, FL 32801

6767 N. Wickham Rd. Suite 6767 Melbourne, FL 32940

first-party insurance claims for property damage SUBMITTED BY DAN WEBERT, BARKER MARTIN, PS


here are some all-too-familiar scenarios playing out as community associations in the region continue to age. For example, perhaps a community begins to repair or replace the siding, as contemplated in its reserve study, only to uncover severe hidden decay. Or a routine condition assessment reveals that the second-floor balconies require shoring to address unforeseen rot giving rise to safety concerns. Maybe window leak repairs expose sheathing and framing members that have been severely deteriorated. In these and similar circumstances, the defining characteristics are that the repairs are extensive, expensive and unplanned-for. They fall well outside of the maintenance plan and already underfunded reserves. In situations like these, associations must sometimes choose between funding repairs through unpopular assessments and financing or by performing substandard repairs that fit within the association’s tight budget. Hearing of horror stories, some associations even choose not to evaluate the condition of their buildings for fear of what might be uncovered. In some cases, there may be a better option to consider.

WHAT ABOUT INSURANCE? For years, building owners, managers and some attorneys have been led to believe that property insurance policies do not cover damage relating to construction defects and that any damage that occurs over time is automatically excluded from coverage. The reason for this is twofold. First, covered claims often fall into the “sudden and accidental” category – think exploding water tanks, bursting pipes, flooding, damage to the buildings from a car or other accidents, etc. Because these claims are commonplace, many start to think these are the only claims covered under a property policy. Second, insurance companies have routinely denied claims whenever any sort of construction defect is involved or damage occurs over 12

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time, citing exclusions for construction defects or known conditions. In fact, most policies purport to exclude damage caused in any way by construction defects. But when a construction defect or other excluded peril (such as rot) is specifically excluded by a policy, there may be other ways of demonstrating coverage. It is possible, for example, that even policies that exclude damage caused by construction defects may cover property damage in a state of “collapse.” Depending on the exact language in the policy, “collapse” does not necessarily mean the building has to be falling down. In fact, courts often define “collapse” to include “substantial structural impairment,” which is a term subject to wide interpretation by experts. This is especially true for older policies that do not otherwise define “collapse.” In fact, even policies that purport to limit collapse coverage to circumstances where all or part of the building have fallen down, there are less-than-obvious types of damage that might apply. For example, in Kings Ridge Cmty Ass’n, Inc. v. Sagamore Ins. Co., portions of the roof deflected downward but the roof was otherwise still standing. The point is that it is not always obvious what qualifies as a collapse even under policy language that seems quite severe. And a layman will always be at a disadvantage in interpreting the policy. Obtaining coverage under the collapse provision is only one of a number of ways to potentially get coverage for damage to a building. Depending on the language in the policy, a community may also be able to establish coverage if the damage was caused in part by a “covered peril” such as “wind driven rain” or “hidden decay.” “First party claims” as these claims are sometimes called, can be made against property insurance policies going back for many years. A “first party claim” is simply a claim that a community association

first-party insurance claims for property damage cont. makes for coverage under its own insurance policies. These claims differ from “thirdparty claims.” In third-party claims, a person sues someone and the person sued looks to his or her liability insurance for coverage. This type of first party claim is especially beneficial for communities that have discovered substantial damage, but that are beyond the general statutes of limitations and repose for claims against developers or contractors for construction defects. Most often, these are communities that are older than ten years. Especially where other avenues of recovery are exhausted, researching the likelihood of recovery on a first party claim should be part of every building owner’s due diligence before resorting to special assessments or funding the repairs themselves. Unlike in construction defect litigation, most often the first party insurance claim is made by tender to the insurance carriers and subsequent negotiation. No lawsuit is typically necessary. Sometimes, however, when the parties cannot agree, one of the other files a suit to have the language in the policy interpreted or to determine appropriate damages. Establishing coverage under past policies requires careful analysis of the complex and convoluted language of the first party policies as well as a solid understanding of the interpretations given to the various policy terms as they have evolved over the years. It is also possible that the very nature of the tender and language used can jeopardize whether you are successful in triggering coverage. Thus, it is often necessary to get legal assistance before tendering this type of claim to your insurer. To determine whether a community has a chance of recovering money under its historical property insurance policies, there are two primary aspects to carefully consider:


(1) the nature and history of defects or damage to the building, and (2) the language in the property insurance policies dating back to the earliest possible date of damage. Through review of these two components, experienced counsel should initially assess the likelihood of recovery under these policies. Establishing coverage under old policies requires careful analysis of the complex and convoluted language of the association’s policies as well as a solid understanding of the interpretations given to the various policy terms used over the years. For example, the courts in various states interpret the exact same word – “collapse” – to mean very different things. Some courts require a building to be reduced to rubble whereas other courts only require that the building suffer from substantial impairment. There are many such pitfalls. For instance, in NPV Realty Corp. v. Nationwide Mut. Ins., the insurance company prevailed because the insured was only able to provide evidence of gradual damage. The insurer successfully argued that plaintiff’s evidence did not fall within the policy definition of “collapse.” Having professionals and experts versed in the nuances of coverage is pivotal in bringing a first party claim.

WHAT’S THE RISK OF PURSUING A CLAIM? Many associations fear the impact of firstparty claims on the insurability of the community going forward. The thought is that exploring a claim will show up on the community’s so-called “loss run” and make future insurance impossible to obtain or cost prohibitive. This need not be the case if a thoughtful approach is taken. First, merely reviewing available insurance policies to determine if a claim is possible should not impact insurability. The loss run is impacted by claims made and paid, not the mere request for insurance policies,

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and certainly not by the mere analysis of the policies by counsel. It cannot hurt to evaluate your options. Second, there may be historical policies a community can tender to that will not show up on the loss run regardless if a claim is paid. Experienced counsel and can advise on policies that may or may not show up on the loss run—frequently policies greater than three years old--and recommend a strategy for tendering to the various available policies based on the policy language, the timing of the policy and the observed damage. Finally, a community must always consider the likely impact on the cost of insurance going forward relative to the range of potential recovery. The idea here is that even the doubling of the $15,000 cost of a property insurance policy to $30,000 for three years may pale relative to the chance of recovering $250,000 under the policy. The real risk is in failing to analyze and identify a potential option or waiting too long to make a claim. Almost all insurance policies have claims limitations provisions that require a claim be made within just one or two years of “discovery.” Discovery can mean a lot of things and the mere knowledge of some damage may not preclude all claims. The best advice is to take action to analyze a community’s options as soon as damage is discovered and to let experienced counsel determine if too much time has elapsed to make a viable claim. In sum, first party insurance claims may be an option for communities facing substantial and unanticipated repair costs. Communities should consider such claims among other options in evaluating sources of funds for needed repairs.

Dan Webert is a partner with Barker Martin, a Florida attorney, and manages its Portland, OR office.

6th Annual




Celebration Golf Club 701 Golf Park Drive, Celebration, FL 34747

8:30am Shotgun Start

Registration Starts at 7am Four Person Scramble








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Two Foursomes included plus 8 commemorative golf polo shirts with company logo and tournament logo. Company logo on all materials, plus time to address the attendees at the awards luncheon.


Foursome included. Company logo on all materials and time to address attendees at the awards luncheon.




Contest for free car! Company name/logo on sign at hole during play. Acknowledgement at luncheon.


Contest for $5000 cash! Company name/logo on sign at hole during play.


Bags on carts with logo, plug at the beginning of the tournament, plus swag in the bags.

Company name/logo on sign at hole during play.


Company name/logo on sign at hole during play.


Company name/logo on sign at the range.

ALL SPONSORS WILL RECEIVE: ✓ Acknowledgement on Sponsors signage at event. ✓ Company logo/link on event website. ✓ Opportunity to supply promotional materials for goodie bags. *Course does not permit outside food or beverage. If you would like to contact the course, they will allow their team to serve alcohol at your tee for a small corkage fee. If you need a tent, table or chairs, please contact the course directly.

TEE SPONSORS: $300 (18)

Company name/logo on sign at hole during play. 2 reps per hole sponsor. Bring a raffle item. (Additional reps are $30 per person.)

BEVERAGE CART SPONSORS: $225 (4) Company name/logo on cart.



Name: _________________________ Company: _______________________ Address: ________________________ City, State, Zip: ____________________ Phone: __________________________ Email: __________________________

□ Check Enclosed □ Charge to Credit Card Below: □ Visa □ Master Card □ American Express Name on Card: _______________________ Account #: __________________________ Exp Date: ____/____ CVV #: __________ Signature: __________________________

Participant: □ $125 (Individual Player) □ $450 (Foursome) Team Name: _______________________ Player #1: _________________________ Player #2: _________________________ Player #3: _________________________ Player #4: _________________________

Level of Sponsorships:

Total Enclosed: $ ___________________

Make checks payable to: CAI Central Florida Chapter P.O. Box 941125 Maitland, FL 32794

Note: Please contact us to verify availability of sponsorships. Sponsorship is not guaranteed until form and payment are received.

□ $4000 (Gold) SOLD □ $2800 (Silver) SOLD □ $1500 (Breakfast Bag) □ $1200 (Hole in One) SOLD □ $400 (Putting Contest) □ $400 (Longest Drive) □ $400 (Closest to Pin) □ $300 (Range) □ $300 (Tee) □ $225 (Beverage Cart)

welcome new members! BUSINESS PARTNERS Advanced Indoor Remediators Mr. William Craddock, III American Total Protection Mr. Victor M. Martinez Capital Land Management Mr. James Piney Cohen Grossman Law Firm Mr. Harvey V. Cohen CSG Consolidated Service Group Mr. Rodney Hughes First Green Bank Ms. Mary Ann Sheriff


Waste Pro of Florida, Inc. Mr. D. Timothy Stoner

Ms. Terina Stevens Towers Property Management, Inc.

VOLUNTEER LEADER Mr. Michael Kulich Turtle Creek Homeowners’ Association

want to join?


Homeowners, Managers, and Business Partners can become members. If you provide products or services to community associations, CAI can give you direct access to thousands of potential customers and provide unique opportunities through networking luncheons, socials, and other great events. Visit to learn more!

Ms. Rebecca Kiesel Mr. Jason Russell Manley Ms. Cynthia Paul Montsinger, CMCA, AMS

Pavement Technology Inc. Mr. Christopher Lawrence Evers

Mr. Clarence Sutherland Sutherland Management, Inc.

Mr. Brian Pettit Mrs. Katie Marie Ciccotelli Sentry Management, Inc.

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hoa reserve accounts: what are you missing? SUBMITTED BY PATRICK HOWELL, ESQ. OF BECKER & POLIAKOFF


aintenance, repair and upgrade of the common areas of a community can be costly, and reserve accounts can be a great planning tool for large projects. In 2007, Section 720.303(6) of the Florida Statutes was added to the Florida HOA Act establishing procedures and rules related to reserves if a) they were originally established by the developer prior to turnover; or b) a majority of the homeowners voting to establish specific reserves. Local governments are now requiring reserves for gated communities. Orange County, as well as cities such as Winter Garden and Ocoee, require developers to fund reserve accounts for the gated communities that are developed within those jurisdictions. This is because gated communities have private roads and sidewalks, which are the maintenance responsibility of the HOA, and not the local government. Repairing or replacing this infrastructure can be pricey, and a community that has failed to plan for these costs could find itself in a predicament that only a huge special assessment could rectify. Locally-required reserve funds include funds for roads, sidewalks, drainage areas, storm-debris cleanup, and similar anticipated expenses, and vary as to the amount that must be funded. In the case of roads, typically the largest reserve fund, 1/12 of the total amount needed to resurface the community must be put into reserves every year.

accounts, either by paying too little into the reserve accounts, or by attempting to “waive” the funding of reserves prior to turnover. An Orange County Circuit Court Judge recently ruled that a developer may not “waive” the funding of these mandatory reserve accounts prior to turnover. The Fifth District Court of Appeal, in the case of Meritage Homes of Florida, Inc. v. Lake Roberts Landing Homeowners Ass’n, Inc, 2016 WL 830440 (Fla. 5th DCA 2016), affirmed that decision, and further held that a) once a developer establishes a reserve account, the reserves must be fully funded each year, unless reserves are waived or reduced at a member meeting (a board meeting will not do); and b) the developer may not vote its interests at the member meeting – only the non-developer owners may vote. Further, a shortchanged HOA is able to recoup the attorneys’ fees and costs expended, should they prevail in an action against a developer. An HOA that believes it has been shortchanged should immediately contact its community association law firm for advice.

This article was prepared by Patrick Howell, 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

Annual deposits into reserve funds must begin upon receipt by the community of its “certificate of completion”, which is very early in the development of a community. In at least one locality, Orange County, developers must “superfund” the reserve accounts by placing a full year of funds into the association’s reserves prior to turnover.

firm undertakes no obligation to advise of subsequent changes in the law. He can be contacted via email at 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 for additional information. The firm can

Many communities that have turned over discover that their developer did not adequately fund the association’s reserve 20

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be reached at 111 N. Orange Avenue Suite 1400 Orlando, Florida 32801 - Tel: 407.215.9660 / Fax: 407.999.2209.

With community association lending expertise like ours, you’ll get the job done right.

take that to the bank. Mark Evans Regional Account Executive 321-745-8444 Toll Free 866-800-4656, ext. 7488 AFN45863_0813

Member FDIC Equal Housing Lender

get help getting your association to great BY CAI PRESS, A DIVISION OF COMMUNITY ASSOCIATION INSTITUTE


AI offers a free, downloadable brochure, From Good to Great - Principles for Community Association Success, that can help association boards, community managers and homeowners build and sustain better, more harmonious communities. The following four documents - all reviewed and adopted by the CAI national Board of Trustees are included in From Good to Great:


Model Code of Ethics for Community Association Board Members

Board members should not:



Strive at all times to serve the best interests of the association as a whole regardless of their personal interests.

Community Association Fundamentals - a basic primer on how associations should function


CAI developed the Model Code of Ethics for Community Association Board Members to encourage the thoughtful consideration of ethical standards for community leaders. The model code is not meant to address every potential ethical dilemma but is offered as a basic framework that can be modified and adopted by any common-interest community.

Board members should:

Model Code of Ethics for Community Association Board Members - 19 things association board members should and should not do

Reveal confidential information provided by contractors or share information with those bidding for association contracts unless specifically authorized by the board.


Associations ensure that the collective rights and interests of homeowners are respected and preserved.


Associations are the most local form of representative democracy, with leaders elected by their neighbors to govern in the best interests of all residents.


Associations provide services and amenities to residents, protect property values and meet the established expectations of homeowners.


Associations succeed when they cultivate a true sense of community, active homeowner involvement and a culture of building consensus.


Association homeowners have the right to elect their community leaders and to use the democratic process to determine the policies that will protect their investments.


Association homeowners choose where to live and accept a contractual and ethical responsibility to abide by established policies and meet their financial obligations to the association.



Make unauthorized promises to a contractor or bidder.

Association leaders protect the community’s financial health by using established management practices and sound business principles.


Advocate or support any action or activity that violates a law or regulatory requirement.


Association leaders have a legal and ethical obligation to adhere to the association’s governing documents and abide by all applicable laws.


Use their positions or decision-making authority for personal gain or to seek advantage over another owner or non-owner resident.


Association leaders seek an effective balance between the preferences of individual residents and the collective rights of homeowners.


Use sound judgment to make the best possible business decisions for the association, taking into consideration all available information, circumstances and resources.


Act within the boundaries of their authority as defined by law and the governing documents of the association.


Provide opportunities for residents to comment on decisions facing the association.



Perform their duties without bias for or against any individual or group of owners or non-owner residents.

Spend unauthorized association funds for their own personal use or benefit.



Disclose personal or professional relationships with any company or individual who has or is seeking to have a business relationship with the association.

Accept any gifts—directly or indirectly—from owners, residents, contractors or suppliers.


Misrepresent known facts in any issue involving association business.


Conduct open, fair and well-publicized elections.



Always speak with one voice, supporting all duly adopted board decisions—even if the board member was in the minority regarding actions that may not have obtained unanimous consent.

Divulge personal information about any association owner, resident or employee that was obtained in the performance of board duties.


Make personal attacks on colleagues, staff or residents.

Rights and Responsibilities for Better Communities - 32 principles and practices to help associations promote harmony, enhance communication and reduce the potential for conflict

10. Harass, threaten or attempt through any means to control or instill fear in any board member, owner, resident, employee or contractor.

10. Association leaders and residents should be reasonable, flexible and open to the possibility—and benefits— of compromise, especially when faced with divergent views.


And more!

With more than 32,000 members dedicated to building better communities, CAI works in partnership with 60 domestic chapters, a chapter in South Africa and housing leaders in a number of other countries. In addition to providing information, education and resources to those involved in community association governance and management, CAI also advocates on behalf of common-interest communities before legislatures, regulatory bodies and the courts. We believe homeowner and condominium associations should strive to exceed the expectations of their residents. Our mission is to inspire professionalism, effective leadership and responsible citizenship—ideals reflected in communities that are preferred places to call home.

Goodto Great From

Principles for Community Association Success

» Rights and Responsibilities for Better Communities » Community Association Governance Guidelines » Model Code of Ethics for Community Association Board Members » Community Association Fundamentals

Learn more at, or start getting member benefits immediately by joining at

Preview the brochure at www.

11. Reveal to any owner, resident or other third party the discussions, decisions and comments made at any meeting of the board properly closed or held in executive session.

Community Association Governance Guidelines 12 benchmarks of fair, responsible and successful community governance

CAI provides learning opportunities for community managers, homeowner volunteer leaders, association residents and service providers. Visit to learn more. (888) 224-4321

Community Associations Institute |

One-third of Americans who are eligible to vote have never registered. Even worse, of those who have registered and are eligible to vote, fewer than 58 percent did so in the last presidential election. More than 67 million people live in community associations; these individuals can play an important role in building their communities’ political power. If you or others in your community haven’t registered to vote, CAI has made it easy for you. Register to vote at YourVoteCounts. Deadlines vary from state to state, so register today. Every vote counts—and together, we can have a powerful impact and protect America’s communities.


CE N TRAL F L O R I D A T I M ES | 2 ND Q UARTER 2 0 1 6

CAI CENTRAL FLORIDA CHAPTER MEMBERSHIP BENEFITS In addition to the many perks associated with a National CAI Membership, your local Central Florida Chapter offers even more value and engagement to its members:



If three members from the same board join the chapter, your first year of membership dues are FREE

CAICF will pay for HALF of your manager tuition fees for required education credits



Company recognition & networking Maximize business brand opportunities with current & recognition & enjoy exclusive potential clients, as well as face-to-face networking industry-specific business partners opportunities with potential clients

LOCAL CHAPTER EDUCATION AND NETWORKING EVENTS Quarterly Board Certification classes CEU credit hours at specified luncheon events Participation opportunity at the Annual Golf Outing Invitation to the Summer Social & 2015 Holiday Awards Gala Admission and exclusive perks at one of the best community association tradeshows in Central Florida

Opportunity to attend and speak at panels, Q&A sessions, education classes, and Business Roundtable events Participation & sponsorship opportunities at the Annual Golf Outing Invitation to the Summer Social & 2015 Holiday Awards Gala Admission, exclusive booth vendor pricing, and sponsorship opportunities at one of the best community association tradeshows in Central Florida

Professional Designations & Certifications Local Professional Management Development Program Classes Quarterly Board Certification classes CEU credit hours at specified luncheon events

ACCESS TO SPECIALIZED COMMUNITY ASSOCIATION SERVICE PROVIDERS Online service directory Personal interaction at monthly events Panels and Q&A sessions

SPONSORSHIP & MARKETING OPPORTUNITIES In addition to brand recognition, sponsors enjoy benefits like a free booth at the trade show, advertising opportunities, first consideration at speaking events, discounted pricing for future sponsorships and events & advertising on the chapter website Inclusion in the Service Directory


Interested in joining the CAI Central Florida Chapter? For assistance or more information, reach out to the Executive Director by calling 407-850-0106 or e-mailing at To join now, visit for membership categories and dues. Prior to joining online you will be prompted to log in or create an account. Membership dues are non-refundable.



Gain an HOA banking team that’s been around the block With over 25 years of experience in the community association industry, our team delivers the solutions and the support to meet your unique needs. From accelerated payment processing to the latest in fraud protection, we help simplify the overall management of your associations’ banking on our easy-to-use 24/7 online platform. Learn how we simplify banking and the financing of your projects at

Towers Property Management is a family owned and managed business. We take pride in each community that we work with. We specialize in Our clients are more than just Homeowners Associations, a number to us. Condominiums, and Bookkeeping Services for the Self-Managed Community. Associations are our only business so we can focus our entire efforts on your

Amanda Orlando, CMCA® Regional Account Executive 386-424-0830

We proudly serve Orange, Seminole, and Osceola Counties.

References and free estimates are available by contacting us at: Office: 407-730-9872 Fax: 407-730-9877

Financing subject to credit and collateral approval. Other restrictions may apply. Terms and conditions subject to change. ©2016 MUFG Union Bank, N.A. All rights reserved. Equal Housing Lender. Member FDIC. Union Bank is a registered trademark and brand name of MUFG Union Bank, N.A.

Specializing in Community Associations Since 1962 For more information contact: Matt Reedy, AAI Sales Executive (p)321-574-6939



With you. Every step of the way. At Reserve Advisors, our clients expect a high level of quality and service, and we deliver. We’re fully committed to you during every step of the reserve study. Let our experience and expertise be your guide.

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For your no-cost proposal, please call Nilsa Corsino at (800) 980-9881 or visit

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Union Bank HOA Services Valley National Bank World of Homes

Profile for Overflow

CAICF 2nd Quarter 2016 Newsletter  

CAICF 2nd Quarter 2016 Newsletter