Central Florida Times | 4th Quarter 2022

CENTRAL FLORIDA

TIMES

P.O. Box 941125 Maitland, FL 32794 www.caicf.org exdir@caicf.org 407-913-3777

2022 BOARD OF DIRECTORS

Frank Ruggieri, Esq., President

Jarad Pizzuti, President-Elect

Tracy Durham, CMCA, AMS, CFCAM, PCAM, Vice President

Leslie Ellis, CPA, MSA, CGMA, Treasurer

Jessica Cox, Secretary Stacey Loureiro, CMCA, AMS

Lynne Sadowski

Matt Vice, Past-President

Tom Wheir

Ken Zook

A Message from the President

Dear Valued Members,

As they say, all good things must come to an end and I respectfully submit this as my final President’s Message. That “good thing” has been the opportunity and honor bestowed upon me by the Board and Chapter to serve as its President. I was asked to help with the Chapter’s business plan during my tenure, that includes a “mission statement,” which every organization should have. I believe it’s appropriate to include that in my final message as President:

Become the foundation for the advancement and betterment of Central Florida communities by bringing together community leaders with those who serve their communities through education, community resources, and leadership.

The President of any organization that reaches the end of their tenure should rightfully ask the simple question, “Is the organization better off than when I assumed the office?” In this case, there can be no doubt we’re better off, but it has nothing to do with me. The Chapter has never been stronger. I believe that is a function of the foundation of Members we have established on our Board and Committees, and the number of enormously talented and passionate Members getting involved on our Board and Committees, set to assume leadership roles in the future.

I remain committed to advancing the interests of our Central Florida communities in any way that I can and look forward to seeing all of you at future meetings. Happy New Year!

Sincerely, Frank

Frank A. Ruggieri, Esq., The Ruggieri Law Firm

2021-2022 President, Central Florida Chapter CAI

Chapter News

BY REINI MARSH, CHAPTER EXECUTIVE DIRECTOR

Aswe finish out the year, I want to take a moment to reflect and extend a big “Thank You” to the membership, for all their volunteer hours, and especially to our devoted sponsors. The Chapter simply could not run without your support.

We’ve had a great year! The National CAI Conference came to Orlando in May with all the educational classes and PCAM Case Study at The Great Outdoors. The Chapter Party was the best one yet with over 400 in attendance. Our Annual Golf Tournament was an absolute blast as usual. The Annual Meeting and Gala was a lovely time (check out the pictures in the following pages). The last gathering of the year was a successful event in Brevard County at Viera. Thank you to Eva Rey from the Viera Company for her assistance with the venue and catering. We hope to start doing an event in Brevard County once a quarter.

The 2023 CA Day & Trade Show is on sale and there are still some remaining spots open to exhibitors. The first ad came out in the

December issue of the Florida Community Association Journal. I anticipate the attendance to be very strong. Thank you to our Trade Show Committee, who are the hardest working committee members and make this event the best show in the State of Florida! For more information, check out the brochure displayed on pages 14-17 of this quarter’s newsletter.

In 2023, we’ll be offering some themed luncheons. The January meeting will feature a Cajun menu. February will be a Hawaiian menu and CAI National will be sending Dawn Bauman, who oversees the Advocacy Department, to speak with us on The State of the Community Association Industry. Due to the Trade Show in March, there will be no monthly meeting. April’s meeting will feature a different menu theme and Cathi Sleight will do a class on Electronic Voting. As always, stay tuned to the website (caicf.org) for the most up-to-date information on upcoming events and meetings!

Happy New Year to you all and thank you from the bottom of my heart for all your help!

Calendar of Events

More details regarding upcoming events will be posted to caicf.org under the “Events” tab. Check back regularly for the most up-to-date information. CAICF Board Meetings will be held before or after each of the Monthly Meetings. 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!

• January 5th: Monthly Meeting: Luncheon - Panel Discussion on Community Association Management Companies presented by Gina Holbrook, Christy Borden and Ben Isip at Dubsdread in Orlando. The luncheon will feature a Cajun menu this time! Registration begins at 11:30am and the program begins at 12pm. Manager Members & Homeowner Leaders (HOA Board Members) are FREE and Business Partners will be $37. PLEASE REGISTER ASAP. NO SHOWS AND CANCELLATIONS AFTER 1/4/23 AT 12PM WILL BE BILLED. Click here to register. Want to sponsor the January meeting? Click here for all the details.

the program begins at 12pm. Manager Members & Homeowner Leaders (HOA Board Members) are FREE and Business Partners will be $37. PLEASE REGISTER ASAP. NO SHOWS AND CANCELLATIONS AFTER 2/1/23 AT 12PM WILL BE BILLED. Click here to register. Want to sponsor the February meeting? Click here for all the details.

• March 3rd: CA Day & Trade Show: What is the Tune of Your Association from 9am-6:30pm at the Marriott World Center in Orlando. There will be FREE Education Classes available to registered attendees, 128 vendor expo booths to visit, thousands of dollars in raffle prize giveaways, and the Backstage Pass After Party. After Party tickets are $50 online prior to the event and $60 the day of. Or purchase 6 tickets for $275. Each registered CAM and HOA Board Member will receive one free drink ticket. Business Partners may NOT attend the Trade Show unless they have purchased a booth or a sponsorship package of $500 or more. For more details and to register, click here

• February 2nd: Monthly Meeting: Luncheon - The State of the Community Association Industry presented by Dawn Bauman from the Advocacy Department of CAI National at Dubsdread in Orlando. The luncheon will feature a Hawaiian menu for this meeting! Registration begins at 11:30am and

• April 6th: Monthly Meeting: Luncheon - Electronic Voting presented by Cathi Sleight of Vote HOA Now at Dubsdread in Orlando. Registration begins at 11:30am and the program begins at 12pm. Manager Members & Homeowner Leaders (HOA Board Members) are FREE and Business Partners will be $37. PLEASE REGISTER ASAP. NO SHOWS AND CANCELLATIONS AFTER 4/5/23 AT 12PM WILL BE BILLED. Click here to register. Want to sponsor the April meeting? Click here for all the details.

Each sponsor for the Chapter Meetings receive face time in front of the membership with the microphone to talk about your company. You will also be able to put give-away items and collateral on all the tables. Space is also provided for our sponsors to display their marketing materials. Every sponsor is important to our chapter and your generous donation goes directly to off set the costs of the program. Only three sponsors are permitted per program. Please consider sponsoring today!

CONTACT REINI MARSH AT EXDIR@CAICF.ORG OR 407-913-7777

LOOKING FOR A SERVICE PROVIDER?

CAI Central Florida has a list of great service providers in most every industry a Community Association could need! The best part is, they are members! Check it out at: caicf.org/directory.

Upcoming Workshops, Webinars & Manager Education Classes

COMMUNITY CONNECTIONS WORKSHOP SERIES

This series is hosted in partnership by Orange County Neighborhood Services Division and the City of Orlando Office of Communications & Neighborhood Relations. The workshops are free to all.

HOA & Condo Board of Directors Certification Training

Saturday, January 14th from 9am-12pm

Serving on an HOA or condominium association board requires Florida’s certification compliance within 90 days of being elected. Participants will be provided with a broad overview of the many responsibilities and areas of oversight required by condominium and homeowners’ association board of directors. Learn about condominium and HOA operations, records maintenance and owner access to records, dispute resolution options, budgets and reserves, election requirements and financial reporting. Click here for the workshop information and to register on Eventbrite.

Best Practices for Voluntary Neighborhood Organizations

Saturday, February 11th from 9am-11am

Running a voluntary neighborhood organization isn’t easy, but it doesn’t have to be hard. In this neighborhood roundtable, you will get to hear from experienced voluntary leaders who have been right where you are, wherever that may be. Leaders will share their learned knowledge and best practices on a wide variety of subjects, from opening a bank account and getting a Tax ID, to successfully securing city and county grant funding, and hosting the kind of events neighbors want to come out to. Bring your questions and a friend, and find your are not alone. Click here for the workshop information and to register on Eventbrite.

Neighborhood Beautification and Community Garden Bus Tour

Saturday, March 11th from 9am-11am Have you ever wondered what types of projects other neighborhoods

have done to beautify their neighborhoods? Join us for a bus tour of city and county funded neighborhood beautification projects. We’ll show you hidden neighborhood gems that came about with a little grant funding and some big neighborhood ideas. Click here for the workshop information and to register on Eventbrite.

FLORIDA DBPR WEBINAR

Special Assessments 101: Things You Should Know

Thursday, January 19th from 12pm-1pm

The Education Initiative is a partnership between the Division of Condominiums, Timeshares and Mobile Homes’, Office of the Florida Condominium Ombudsman, and the Condominium and Planned Development Committee of The Real Property, Probate and Trust Law Section of The Florida Bar. This presentation will contain comments and viewpoints from attorneys which will be provided for informational purposes only. The comments and viewpoints should not be construed as legal advice. Please note that this is NOT a CEU (Continuing Education Unit) course. Click here to register.

EDUCATION FOR MANAGERS

CAI offers many online learning opportunities (click on the dates below to register or obtain more info) that lead to professional credentials. View the 2022 Education Catalog for additional resources.

» January 19-20: M-100 - The Essentials of Community Association Management (Live Virtual Class)

» January 26-27: M-201 - Facilities Management (Virtual Class)

» February 2-3: M-360 - Leadership Practices in Building Community (Live Virtual Class)

» February 16-17: M-202 - Association Communications (Live Virtual Class)

» February 23-24: M-204 - Community Governance (Virtual Class)

» March 2-3: M-100 The Essentials of Community Association Management (Live Virtual Class)

NEW CHAPTER MEMBERS

BUSINESS PARTNERS

Century Fire Protection

David Solomon

DoodyCalls

Jesse Johnson

Encore Bank

Patricia E. DuBuque, CMCA, AMS, PCAM

Sherwin-Williams

Lina Phan

The Greenery, Inc.

Austin Rice

The Viera Company

Eva Rey

Thornton Tomasetti

Michele Stein

NATIONAL BUSINESS PARTNERS

Addresses of Distinction Street

Signs & Mailboxes

Austin Edwards

NATIONAL BUSINESS PARTNERS

CONTINUED

AquaGuard, LLC

Stephan K. Ward-Smith

Capital One Matthew Majikes

MANAGEMENT COMPANY

ESWINDOWS

Oscar Gutierrez

MANAGER MEMBERS

Gail Spence

Outdoor Resorts at Orlando, Inc.

Kellie King

Towers Property Management, Inc.

Alexis J. Berbas, CMCA

Gregory Burgey

Jessica Longacre

Christopher Lee Parkhurst

MANAGER MEMBERS

CONTINUED

Andrew Potchak

VOLUNTEER LEADERS

Kay Griffith

Gatherings of Lake Nona 1 Condo Association

Jane C. Omahen

Gatherings of Lake Nona 1

Condo Association

WANT TO JOIN OUR CHAPTER?

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 caicf.org/resources/ membership to learn more!

SPONSORSHIPS

ITEMS BELOW SUBJECT TO CHANGE WITHOUT NOTICE

BACKSTAGE PASS

AFTER PARTY SPONSORS

$3,000 - 2 Available

» Logo and company name on all promotional materials.

» Full page, full color ad in the Trade Show program.

» Logo on approximately 17,000 mailers/tickets that are distributed via mail and delivered to board members and CAMs.

» Two free Parking Passes for day of show.

» Highlighted as sponsor in the Trade Show program.

» Presenting Sponsor Signage at the front entrance and at the After Party.

» After Party wristbands to be printed with sponsor’s logo.

» Privilege to provide beverage napkins with company logo at the After Party.

» May provide material to insert in approximately 1,200 Trade Show bags.

PUB BAR SPONSORS

$1,200 - 4 Available

» Logo and company name on all promotional materials.

» Half page, full color ad in the Trade Show program.

» One free Parking Pass for day of show.

» Highlighted as sponsor in the Trade Show program.

» Signage at the front entrance and at the bar area.

» Privilege to provide beverage napkins with company logo at the Trade Show bar.

» May provide material to insert in approximately 1,200 Trade Show bags.

STAGE CREW DECOR PRESENTING SPONSORS

$2,000 - 2 Available

» Logo and company name on all promotional materials.

» Full page, full color ad in the Trade Show program.

» Two free Parking Passes for day of show.

» Highlighted as sponsor in the Trade Show program.

» Presenting Sponsor Signage at the front entrance and at the decor area.

» May provide material to insert in approximately 1,200 Trade Show bags.

GREEN ROOM

CAM DRINK SPONSOR

$2,000 - 1 Available

» Logo and company name on all promotional materials.

» Half page, full color ad in the Trade Show program.

» Two free Parking Passes for day of show.

» Highlighted as sponsor in the Trade Show program.

» Signage at the front entrance and at the bar area.

» Privilege to provide beverage napkins with company logo at the Trade Show bar.

» May provide material to insert in approximately 1,200 Trade Show bags.

» 1 Drink Ticket for CAM

PAPARAZZI PHOTO

BOOTH SPONSOR

$1,500 - 1 Available

» Logo and company name on all promotional materials.

» Full page, full color ad on back cover of the Trade Show program.

» One free Parking Passes for day of show.

» Logo on all photos.

» Highlighted as sponsor in the Trade Show program.

» Presenting Sponsor Signage at the front entrance and at the photo booth.

» May provide material to insert in approximately 1,200 Trade Show bags.

GROUPIES SPONSOR

$600 - 15 Available

» Logo and company name on all promotional materials.

» Business card size, full color ad in the Trade Show program.

» Highlighted as sponsor in the Trade Show program.

» Signage at the front entrance.

» May provide material to insert in approximately 1,200 Trade Show bags.

BUSINESS CARD AD

$250 - Unlimited

» Business card size, full color ad in the Trade Show program.

CLASSROOM PRESENTERS & SPONSORS

CEU Class Presenter: $900 - 1 Available

CEU Class Sponsor: $900 - 3 Available Legal Panel Presenter: $900 - 3 Available Legal Panel Sponsor: $900 - 3 Available Board Certification Presenter: $1,300 - 1 Available Board Certification Sponsor: $1,300 - 3 Available

» Industry Exclusive

» Business card size, full color ad in the Trade Show program.

» Ability to leave marketing material at each seat.

» Five minutes to introduce your company at the beginning of class.

» Highlighted as sponsor in the Trade Show program.

» Signage outside of classroom space.

BODY GUARD SECURITY SPONSOR

Free - 1 Available

» Provide staff for security of Trade Show and After Party. Approximate times are 8am to 6:30pm.

» Half page, full color ad in the Trade Show program.

» Logo and company name on all promotional materials.

» Three free Parking Passes for day of show.

» Highlighted as sponsor in the Trade Show program.

» Signage at the front entrance.

» May provide material to insert in approximately 1,200 Trade Show bags.

TO BUSINESS PARTNERS

A Pond for All Seasons

BY AQUATIC WEED CONTROL, INC.

Ponds and waterways are created to serve one or more purposes, which can be anything from water runoff areas to a beautification project. The time of the year will determine what can happen to any waterway in Florida. There are basically two aquatic seasons - wet and dry - with the average annual temperature of 75°. These seasons affect the aquatic vegetation in and around your waterway all year long.

THE DRY SEASON: NOVEMBER – MAY

Some of these months are cooler and dryer than others. February is traditionally the coldest month and by the time we get to February, plants and fish are already tired of it and can’t handle much more.

PLANTS: When you combine cold weather and water, plants can start to turn brown. They may look dead, but they are not. Most aquatic plants have an underground root system that allows the plant to spring back when the temperature and water levels return to normal.

FISH: Many ponds have fish added to help keep unwanted vegetation

in check between aquatic visits. Tripold carp are there to eat and love hydrilla, muskgrass, pondweed, elodea, duckweed and cattail. When water temperatures drop below 50°, most fish will go into shock and then die of stress. You might see them close to the surface as they try to swim deeper where the water is warmer. A fish in distress will look lethargic, confused and maybe even try to swim upside down.

When you add the average temperature for a month, the water levels can be impacted. These conditions allow the water levels to continue to drop month after month. An average month of May sees very little rainfall and the temperature begins to climb. This leads to lower water levels which affect the waterway’s vegetation and fish.

Every waterway will react differently during the dry season. When the water levels fall below normal, this leaves exposed banks that reveal a surplus of untapped nutrients. This nutrient area can give new weeds a growth boost. As the water levels drop, your aquatic professional is doing regular and preventive spraying.

Ponds left untreated have unwanted vegetation that will take advantage of the drought conditions to encroach into exposed banks and take root. When the water levels return, two things will happen.

1. Some of these plants will keep growing and be hard to get under control.

2. Some drown and die which causes a new problem. When this happens they release all the nutrients that they were holding. This will create a bright green algae ring around the shore.

Your aquatic professional will treat the exposed banks so that

when the water levels do come back the weeds will not. Exposed grasses like Slender Spikerush, Torpedograss and Eel grass are hard to kill when water levels are normal. This is the best season to get to those and other unwanted vegetation that causes trouble at normal water levels.

Fish will also feel the effect of low water levels. The water can get too warm and reduce their living space. This puts stress on the fish and you may lose a few or the entire pond. Your professional will know what to do when fish are present. The dry season is also a good time to remove unwanted vegetation that is unsightly or overgrown. Keep in mind that 90% of Florida has more than 125 days of rain per year.

Aquatic Weed Control was established in Orlando in 1992 to provide costeffective and innovative ways to solve aquatic vegetation problems. They are headquartered in Orlando with service locations in Tampa, Ft. Myers and Daytona Beach. Their longstanding reputation for quality service and friendly staff is not an accident. It is their sound belief in combining quality service with dedication that has guided the company over the years. To learn more, visit aquaticweedcontrol.net or call 407-859-2020.

STATUTES & CONSTRUCTION DEFECTS

What are Statutes of Limitations & Repose?

BY AARON CREWS, ESQ., BECKER

Statutes of limitations and statutes of repose both restrict the maximum amount of time that a plaintiff has to file a civil lawsuit. Statutes of limitations begin to run on the date a plaintiff is damaged or learns they have been damaged and are based on the policy that people should not be allowed to sleep on their rights once those rights have accrued. Whereas statutes of repose begin to run when a specified event occurs and are based on the policy that defending parties should not suffer from indefinite fear of legal action.

STATUTES OF REPOSE AND LIMITATIONS FOR CONSTRUCTION DEFECTS

Most construction defect claims in Florida are governed by the limitation periods laid out in §95.11(c), Florida Statutes, which covers actions “founded on the design, planning, or construction of an improvement to real property” (“Construction Defect Action(s)”).

In Florida, Construction Defect Actions have a limitation period which requires that a lawsuit be commenced within 4 years of the limitation period beginning to run.

For a plaintiff’s general Construction Defect Action, the 4-year statute of limitations imposed by §95.11(c) will be triggered by one of four possible triggering events, whichever occurs last: 1)

actual possession of the property by the owner; 2) issuance of a certificate of occupancy; 3) abandonment of construction, if the job was not completed; or 4) the completion or termination of the contract between the engineer, architect, or licensed contractor and their employer (“Triggering Event(s)”). However, if a plaintiff’s Construction Defect Action involves a latent defect, the 4-year statute of limitations will run from the date the plaintiff discovers the defect or the date when the plaintiff should have discovered the defect through “the exercise of due diligence.” §95.11(c) also imposes a statute of repose for all Construction Defect Actions by requiring that any Construction Defect Action be commenced within 10 years of the last occurring Triggering Event.

WHY YOU SHOULD CARE AND WHAT YOU SHOULD DO

Few things are certain about statutes of limitations and statutes of repose other than the fact that they can both completely extinguish a plaintiff’s right to bring a legal cause of action. If the applicable statute of limitations or statute of repose expires on your cause of action, you will never be able to file a claim against the party at fault, and you may very well be left without any hope of recourse.

STATUTES &

DEFECTS

Determining and calculating the applicable statute of limitations and statute of repose can be challenging to say the least. For all these reasons and more, it is important to explore your legal options and consult an attorney as soon as you begin to suspect you may have issues that could require legal action.

Aaron Crews is an attorney in Becker’s Construction Law & Litigation and Business Litigation practices. He represents clients through all aspects of litigation including performing discovery, drafting pleadings, motions, and briefs, and conducting extensive research and analysis on complex procedural and substantive legal issues. While in law school at the University of Florida Levin College of Law, Mr. Crews worked as a law clerk for the Florida Division of Administrative Hearings. He also served as Editor-in-Chief of the Journal of Technology Law and Policy, and received Dean’s List recognition. For more information, visit beckerlawyers.com.

5 HOA Landscaping Tips to Keep Residents Happy

ARTICLE & PHOTOS BY BRIGHTVIEW LANDSCAPE SERVICES

Homeowner Association residents expect a hassle-free, beautiful, relaxing home environment. Maintaining high landscaping standards is a key part of the equation. Here are 5 tips to help ensure your residents are happy by removing the “complaint department” from your list of responsibilities.

1. MAINTAINED COMMERCIAL LANDSCAPING CONSISTENTLY YEAR ROUND

As the saying goes, if you fail to plan, you will plan to fail. The same is true for the aesthetics of your community. Keep your residents happy and give them a beautiful environment to come home to, any time of the year, with three well-documented plans: 1. Proactive landscape plans with solutions for enhancements 2. Year-round maintenance plans 3. Storm response plan (e.g. snow, wind, rain, hail)

Landscape services planning starts with a site assessment. Document and take pictures of the current conditions of the property, define objectives, and measure success against your documented standards.

2. PROTECT PROPERTY VALUES

HOAs and property managers play a pivotal role in maintaining property values through commercial landscaping management. Eyecatching and vibrant landscapes create curb appeal attracting real estate agents, investors, and new homeowners. Rental rates are 7% higher for multi-family dwellings that have high-quality landscapes, according to The National Association of Landscape Professionals. And the WSJ reports curb appeal raises house values by 7-14%.

Opportunities for high-impact landscaping include:

BECOME THE CHAMPION OF YOUR COMMUNITY WITH BEAUTIFUL WATER

Managing a community lake isn’t easy. When your lake is covered in algae or weeds, it not only creates an eyesore that can lead to flooding and loss of property value, but can also lead to complaints from residents. Water shouldn’t be a source of stress and you should be proud of the community you manage. It’s time to turn those complaints into compliments. Partner with our aquatic experts today to achieve clean, beautiful water.

Restoring Balance. Enhancing Beauty. 855.534.3545

Spectacular Flowers

Uniformly Mulched Beds

Neatly Pruned Trees & Shrubs

3. BUDGET TRANSPARENCY WITH HOMEOWNERS

HOA budgets are under constant scrutiny and Landscaping is typically one of the larger line items. Keep your commercial landscaping budget in control with preplanning and minimal unbudgeted expenses:

» Streamline processes by consolidating vendors. Combine services – design, landscape maintenance, water management, tree care, snow removal, and parking lot maintenance.

» Reduce risk by partnering with a reputable company with local and national resources.

» Keep expenses under control by utilizing natural resources, reducing waste, and managing water usage and runoff.

» Avoid unexpected bills due to negligence or inexperience by utilizing qualified experts:

• Horticulturist

• Certified Arborists

• Pesticide specialists for plantings, trees, and ground cover

• Certified Irrigation Technicians

• Certified Snow Professionals

» Share with your homeowners how the budget is being allocated.

4. CHOOSE THE RIGHT VENDOR

The right vendor should become an extension of your HOA management team. Conversely, the wrong vendor will cause you to spend extra hours fielding calls from unhappy residents. Criteria for vendor selection:

» Employees are easily identifiable (through their uniforms) on your property and are courteous to your residents

» Well-documented environment, health, and safety (EH&S) protocols

» They do what they say they are going to do - the first time

» Has local (weather, plant, and environmental) knowledge

» Can bring in the nation’s top agronomic, horticultural, and arboricultural talent

» Can leverage national team support at peak times or in an emergency

» Has established processes and programs to ensure quality

» Measures performance against agreed expectations

» Is highly reputable and financially stable

5. OPEN LINES OF COMMUNICATION

Effective communication is the foundation of a successful partnership. It’s critical that you know how your homeowners are feeling, what is concerning them, and what their expectations are of you. Communications with a commercial landscaping partner are most effective when there is a primary point of contact who has a detailed understanding of the property. The account manager should be readily available to property managers and HOAs to provide information, recommendations and answer questions. Effective communications include:

» Strategic planning meetings to establish priorities and timelines in line with the HOA’s vision and goals for the property.

» Periodic review meetings evaluate performance and provide the opportunity to adjust.

Since 1939, BrightView partnerships have provided high-quality, costeffective, and consistent commercial landscape services. To learn more, call 866-936-3606 or visit brightview.com.

POSITIVE THINKING

ANTs

BY BETSY BARBIEUX, CAM, CFCAM, CMCA, FLORIDA CAM SCHOOLS

ANTs. Most people are infested with them. Right now, day after day. The bad thing about ANTs is they spread. You could be an innocent bystander, but you’ll get them if you don’t protect yourself. You must intentionally stop them. You can’t just hope they’ll go away. Procrastination will only make them worse. Procrastinating is the same as saying “Yes, come on in. You’re welcomed here. Make yourself at home. Bring your relatives. Mi casa es su casa.”

And they do. Eventually you are overrun. You try to exterminate them, and you fail. You try to get your friends to help, and they can’t. You leave the house more often, or sleep longer, or eat more, drink more, or spend more. They won’t go away.

You could be having a big problem with ANTs right now. These ANTs are of a particular species. Though the species is as old as man, it is a fairly new discovery. Modern specialists have been testing treatments for only the last 100 years, though you find some remedies contained in ancient literature.

Some people are better than others at killing them. But if you’re not successful at killing them the problem is you’re not using the right pesticide. You’re trying to get rid of them the cheap and easy way.

Ironically, though the solution to the pest problem is not “out there.” The answer lies within.

So, what is this species of ANTs? Dr. Daniel Amen, author of Change Your Brain, Change Your Life, calls these “ANTS,” Automatic Negative Thoughts. No human being is without them. It’s something we all have, every day, practically every hour—day and night.

You could be having ANTs about your incomplete hurricane repairs from last year’s storms. The seawalls aren’t capped yet. Your contractor was forced to stop construction because turtle season was more important than tourist season or property values. You still haven’t received all your insurance proceeds. Seems there is a huge gap between what you thought flood insurance covered and what your insurance company says it covers. Too late you learn the difference between flood waters and wind driven rain. And those signs that you thought were covered under your policy? Now you find out they weren’t. Guests keep passing you by because there is no sign. Now you learn that sidewalks and walkways are not covered. You’ve dipped and dipped into your reserves. You’ve assessed. You’ve secured loans guaranteed by future special assessments.

POSITIVE THINKING

What happens now if you have another hurricane season like the last one? Worry, worry, worry. If only ... What if? The worry becomes circular and goes around and around, especially at night. This is crazy; it isn’t even your property! You’re just the manager, yet you take responsibility for it and worry about it as if it were your own.

Before we get ahead of the situation and make a mountain out of an ant hill, maybe there are a few lessons we can learn from real ants. You know the little insects that leave that tell tale trail across your kitchen floor.

First of all, offensive action is the best defense. Ants were created to build cities, protect the queen, collect food, and nurture the larvae. Ants were created to take action. Can you imagine what a dump truck full of sand must look like to an ant? It must look to the ant like what our hurricane repairs look like to us. That load of sand could be the insurmountable projects we have as managers or our personal financial disasters or the relationship that is surely going to kill us.

Have you ever watched ants build a city in an ant farm? Give them a week and you’ll see amazing feats of construction. They take action, one grain of sand at a time. But moving only one grain of sand at a time your ANTS will say it is impossible, the task is too large, the risk too great, the expense too high. But to the worker ant, it’s the only thing to do. Keep moving forward one step at a time. Somehow the ants know there is eventually a payoff. For them--a city. For the manager who takes action—the completed seawall, the loan approval, a fair settlement on your insurance claim. For you personally—that debt paid off or a relationship mended.

Second, ants are persistent. They keep doing what they know to do whether it looks like they are getting anywhere or not. You should

do the same. Set your face toward your goal. Don’t be distracted to the left or the right. Do what you are good at doing. Delegate what you are not good at doing. Often it is cheaper to hire someone than to learn it yourself. Don’t let good get in the way of the best. Do something, anything consistently that moves you toward your goal no matter how impossible it seems.

Third, ants are objective. They maintain that objectivity by working together in groups. Make yourself be around other people who can give you a reality check. Don’t take yourself so seriously. Let others help you brainstorm solutions to your personal and professional dilemmas. There is strength in numbers. Two or three brains are better than one. You can’t brainstorm by yourself. Once you’ve brainstormed some ideas, write them down, and get into action. Then you are back at step one. Action—Persistence—Objectivity. Keep repeating these three steps and your ANTs won’t control you. You’ll control them.

Worry looks around, sorrow looks back, faith looks up.

Betsy Barbieux, CAM, CFCAM, CMCA, a Professional Development Coach, of Florida CAM Schools, LLC, can be reached at Betsy@FloridaCAMSchools.com, or 352326-8365. For more information, visit floridacamschools. com. Subscribe to CAM Matters™ on YouTube.

Financial Statements & the Budgeting Process – Condominium/HOA Basics

BY MARK GERSTLE, CPA, CFF & ROBERT ROSEN, CPA, GERSTLE, ROSEN & GOLDENBERG, P.A.

The most important task undertaken by an association’s board of directors and property managers is the budget process and determining the use of Association funds. The budget is the means by which management and the board of directors of a common interest realty association (CIRA), meets its obligation to the membership. An understanding of the Financial Statements process makes it easy to understand what all these numbers mean. This is the way we see the forest through the trees.

1. FINANCIAL STATEMENTS: BALANCE SHEET & STATEMENT OF REVENUE AND EXPENSE

BALANCE SHEET

Cash vs. Equity, What’s Available to Spend? (Cash vs. Accrual)

» There is a difference between cash in the bank and the true amount available for future spending.

» The cash balance at a particular date represents what is in the bank, but by itself does not reveal whether the money is already committed.

» The operating fund balance (or Equity) represents the net position of funds available to spend.

» The result of the difference between the assets and liabilities.

» Cash and other “spendable” assets less liabilities, A/P. prepaid fees, due to other funds, equals your balance which is your equity or “available to spend.”

» It really represents the operating cushion for the operating budget.

» Industry standards say that 1-2 month or 10% of the operating budget is a prudent policy – not too small, not too big.

Fund Accounting – Operating, Reserves or Special Assessments

It represents the idea that certain monies are for designated/ different funds. (Purpose). All Associations have an Operating fund and most have a Reserve Fund. The Association’s Declaration and Florida Law may restrict how these funds can be spent. Other Associations will have a Special Assessment Fund, Property Fund, and an Insurance Proceeds Fund to designate that these funds have a restricted purpose.

Prepare Capital Expenditures / Deferred Maintenance / Reserves / Special Assessment / SB-4

» Whether funded by maintenance fees, special assessments, insurance proceeds or by a combination, know the next cycle

of major projects. Don’t use a reserve category coded as “deferred maintenance” unless budgeted.

» New – SB-4D Bill Passed – Structural Integrity Reserve Study (SIRS)

» Effective for the 2025 Budgets, Reserve studies need to be completed by 2024.

» Mandatory Non-waivable Reserves.

» Unit owners may not vote for no reserves or lesser reserves for items set forth in the SIRS report. Developer controlled association may not vote to waive the reserves or reduce the funding of the reserves.

» New components include walls and foundation.

» Milestone inspections for buildings three stories or more in height – Must have a milestone inspection performed for each building that is three stories or more in height by December 31st of the year in which the building reaches 30 years of age.

» Within three miles of the coastline - If the building is three or more stories in height and is located within three miles of the coastline the Condo or Co-Op must have a milestone inspection when the building reaches 25 years of age.

» If the certificate of occupancy was issued before July 1, 1992 the initial milestone inspection must be performed before December 31, 2024.

» Structural Integrity Reserve Studies and mandatory Reserves - An association must have a SIRS completed at least every 10 years. To name some items needed for structural integrity and safety of the building: Roofs, Load-Bearing walls, Floors, and Foundation.

STATEMENT OF REVENUE AND EXPENSES

» Statement of Revenue and Expense shows year to date and monthly revenue (monthly fees, interest, other) and expenses in detail actual and budget.

» These numbers per GAAP and Florida law are on the accrual basis.

» This method records revenue when billed, not when collected.

» This method records expenses when work/service is completed and not when paid.

» Prepare Operating Projections / Support Schedules - Prepare a line item narrative or schedule showing for each expense the scope of work, job description and cost.

» Review the general ledger for coding accuracy. Miscoded and/or unrecorded transactions can unwittingly lead to future variances. Pay particular attention to items labeled as repairs that should be reserve expenses.

» Follow Through / Monitor Variances in Expenses and Other Revenues - In the end, know what you have and understand what you need.

» Monitor monthly financial reports for the changing nature of budget variances and operating results so that there are no surprises.

2. KNOW YOUR DECLARATION AND FLORIDA LAW

Each declaration is unique and may have specific rules to follow. Florida Statutes (718, 719 and 720) and Administrative Rules (61-B) have mandatory guidelines to follow.

3. HAVE POLICIES AND PROCEDURES GUIDELINES – INTERNAL CONTROLS

Establish policies and procedures that define operations and establish operating and reserve benchmarks. Developer Procedures and Policies for each line item and basis for an Operating Manual.

Gerstle, Rosen & Goldenberg, P.A. is a Florida based accounting firm formed in 1985 by founding Partners Mark Gerstle and Robert Rosen. Brian Goldenberg joined the firm shortly after inception and later became a Partner. To learn more, call 305-937-0116 or visit grgcpa.com.

Fraud and Your Association

BY TRUIST ASSOCIATION SERVICES

While businesses have been busy retooling to adjust to the pandemic, fraud criminals have been at work devising fresh attacks. The same tech tools that make running a business easier and more flexible can expose businesses to new fraud schemes and cybercrime. Business fraud is on the rise for organizations of every size, and homeowner and community associations aren’t immune from this type of attack. Association leaders need to understand the different forms fraud can take and learn how to prevent it to keep your association and its homeowners safe.

WHAT DOES FRAUD LOOK LIKE?

Many associations still receive a large number of homeowner payments by check, exposing them to the most fraud prone payment type of all. A recent survey showed that 66% of businesses have experienced actual or attempted check fraud.1

ACH debits are another top source of fraud with 34% of businesses reporting being targeted1 As a common form of payment to associations, ACH payments are another fraud risk to watch closely.

THE ESCALATING THREAT OF BUSINESS EMAIL COMPROMISE

When it comes to fraud schemes, business email compromise (BEC) is one of the most financially damaging. In 2020, 62% of businesses reported attempted or committed BEC fraud.1 BEC criminals often use a handful of email-based techniques to obtain illicit funds from their targets1:

» Spoofing an email account and making it difficult to detect changes that appear to be from a legitimate source.

» Sending phishing emails that appear to be from trusted sources to trick the recipient into divulging confidential information.

» Compromising a genuine email account to issue fraudulent payment instructions.

» Using malware to infiltrate the network so they can view payments and invoices and create scam payment requests through legitimate email accounts.

The last step of a BEC scheme is often a wire transfer, used in 43% of the cases to move funds and complete the fraud.1

WHEN THE THREAT COMES FROM WITHIN

Though external threats often draws the headlines, internal fraud can be just as damaging. Internal fraud actually hits smaller organizations harder than larger ones—billing fraud happens at double the rate in smaller companies while check and payment tampering occurs four times more often.2

Internal fraud makes up 37% of all business fraud, and another 20% of fraud involves collusion between an internal and an external partner.3 Many of those convicted of fraud were living above their means, with a quarter of criminals experiencing financial difficulties.2

FRAUD

Most internal fraud loss involves some form of financial asset misappropriation2:

» Theft of cash on hand

» Check and payment tampering (stolen checks, false invoices)

» Expense reimbursement padding

Internal fraud can carry painful financial consequences. The typical internal fraud lasts 14 months before it’s detected and generates losses averaging $8,300 per month.2

HOW TO REDUCE THE RISKS OF FRAUD

To help protect your association from fraud, focus on prevention. Key strategies include:

» Increased transparency – Share detailed payment, collection, and account information at each board meeting. Hold the appropriate people accountable.

» Regular account reconciliations and audits – Have your CPA conduct random audits of financial accounts. This is especially important when there is management or board turnover.

» Strong internal/dual controls – Approve checks or have two people sign over a certain amount. This can catch payment errors as well as curb fraud.

» Secured and monitored blank check supplies – Keep association blank checks secure, and periodically review the stock to ensure a check has not been removed.

» Team-wide fraud awareness – Conduct regular education sessions to keep fraud awareness top of mind and engage the entire team in identifying fraud before it strikes.

» Secure insurance from loss – Fraud and cybercrime insurance can help associations deal with the damage and losses from fraud attacks. Be sure to update your policy annually to cover the most important risks to your association and its homeowners.

BUILD THE DEFENSES THAT WILL PROTECT YOUR ASSOCIATION FROM FRAUD

Talk to your Truist Association Services relationship manager Marianne Brown at 727-260-5004 or Marianne.Brown@Truist.com about how we can help protect your association from fraud keeping your association on sound financial footing.

Sources: 1) 2021 AFP Payments Fraud and Control Survey, Association for Financial Professionals, 2021; 2) 2020 Report to the Nations, Association of Certified Fraud Examiners, 2020; 3) 2020 Global Economic Crime and Fraud Survey, PricewaterhouseCoopers, 2020.

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The Benefits of Membership cont’d.

CAI is the foremost authority in community association management, governance, education, and advocacy for the 345,000 homeowners associations, condominiums, and co-ops in the United States and millions of communities worldwide.

As a member of CAI, you are part of a global network of nearly 40,000 community managers, management company executives, homeowner leaders, and business partners.

Community Managers

Elevate your career and increase your salary with tailor-made education and credentials that give you a competitive edge in the growing community association business.

Management Company Executives

Communities count on you for professional management and guidance. CAI membership helps your company boost credibility and increase exposure to potential clients.

Homeowner Leaders

CAI provides resources and support to save your association time and money, and education to lead your community successfully.

Business Partners

Membership conveys your commitment to the community association industry and the potential for expanding your client base! Visit www.caionline.org regularly for the latest CAI happenings and information. Log in

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