FLCAJ — August 2024

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Journal Notes

Condominiums, cooperatives, and homeowners’ associations have to be maintained, repaired, and renovated, and this means spending a good deal of cash. Boards of directors should want to spend the association’s money appropriately and wisely. Therefore, the August issue is replete with articles that seek to help boards in this endeavor.

On page 34 there are multiple tips for managing a community’s money, spending money to save the community money and headaches, budgeting best practices, and mitigating financial risk, to name a few.

Turn to page 46 to see what advice Lisa Elkan with Alliance Association Bank offers for preventing common mistakes that lead to financial frustration. She recommends the following: accurate recordkeeping, realistic budgeting, completion of a professional reserve study, restraint in cutting corners to cut costs, and having a team of experts.

On page 52 Sundeep Jay, RS, PRA, with J.R. Frazer shares the actions associations should be taking as the structural integrity reserve study (SIRS) deadline approaches on December 31, 2024. He recommends that the association provide a copy of any engineering inspection report completed on any of the community buildings in the last five years. He also encourages boards and current owners to fund the necessary updates to their aging buildings.

When you flip to page 56 you will find an article by Kathy Naughton of Centennial Bank addressing the issue of how to determine if the association’s bank is safe and in good financial condition.

Turn to page 62 to read about proper budgeting for your 2025 condominium association insurance renewal from Star Herbig with Florida Community Association Insurance. She provides helpful counsel to ensure adequate insurance coverage and appropriate limits so the community isn’t left in a bind.

On page 68 Julie Celozzi with Cogent Bank shares several ways associations can protect themselves against financial fraud. Two of her recommendations are to receive secondary statements, which is a monthly report from the association’s bank that can be used to cross reference your association’s internal records, and to bring outgoing mail directly to the post office and not risk it being stolen from the mailbox.

FLCAJ hopes that the remainder of 2024 and all of 2025 will see your community association establish itself on sound financial principles.

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REMBAUM'S ASSOCIATION ROUNDUP

BY JEFFREY

A. REMBAUM, ESQ.

THE FLORIDA LEGISLATURE IS CALLED UPON TO ACT TO PUT A STOP TO DEVELOPERS WHO REQUIRE HOA MEMBERS TO PURCHASE THEIR COMMUNITY CLUBHOUSE AND/OR CLUBHOUSE OPERATIONS AFTER TURNOVER

Photo courtesy of Kaye Bender Rembaum

Building property subject to a homeowners’ association (HOA) should not entitle a developer to be in a position to financially gouge the association’s members month after month by using the assessment regime to continually line its pockets. Essentially, that is what association member Gundel argued in court against his association’s developer, Avatar Properties, who built out the Solivita Homeowners’ Association. In this HOA the club facilities, including a spa and fitness center, dining venues, indoor and outdoor pools, parks, tennis courts, and more, were not subjected to the declaration, but rather remained under the exclusive ownership and control of Avatar, the developer, and therefore were not a part of the common areas. This means that

JEFFREY REMBAUM, PARTNER, KAYE BENDER REMBAUM

Attorney Jeffrey Rembaum has considerable experience representing countless community associations that include condominium, homeowner, commercial, and cooperative associations throughout Florida. He is a board-certified specialist in condominium and planned development law and is a Florida Supreme Court circuit civil mediator. Every year since 2012 Mr. Rembaum has been inducted into the Florida Super Lawyers. He was twice awarded as a member of Florida Trend’s Legal Elite. Kaye Bender Rembaum P.L. is devoted to the representation of community and commercial associations throughout Florida with offices in Palm Beach, Broward, Hillsborough, and Orange Counties (and Miami-Dade by appointment). For more information, visit kbrlegal.com

as a part of the turnover process, the developer was not required to turn over the club facilities and operations to the now member-controlled HOA but rather retained ownership and control of those facilities. Can you imagine paying hundreds of thousands of dollars for a beautiful new home in a gorgeous community, which includes access to a sprawling clubhouse with dining rooms, spas, and all of the amenities and yet, even though those club amenities are in the middle of the community, they are owned by a corporation not subject to Chapter 720, Florida Statutes, in any fashion, with the intent being that such club amenities will never be under the control of the HOA’s members?

In the case, Avatar Properties Inc. v. Gundel , Case no. 6D23-170,

Julie Jaram, MBA

360 Central Avenue, Suite 800

St. Petersburg, FL 33701

727.290.2578

• www.devinandco.com

Frazer, Inc.

561-488-3012 JRFrazerENT@aol.com www.JRfrazer.com

CAN YOU IMAGINE PAYING HUNDREDS OF THOUSANDS OF DOLLARS FOR A BEAUTIFUL NEW HOME IN A GORGEOUS COMMUNITY, WHICH INCLUDES ACCESS TO A SPRAWLING CLUBHOUSE WITH DINING ROOMS, SPAS, AND ALL OF THE AMENITIES AND YET, EVEN THOUGH THOSE CLUB AMENITIES ARE IN THE MIDDLE OF THE COMMUNITY, THEY ARE OWNED BY A CORPORATION NOT SUBJECT TO CHAPTER 720, FLORIDA STATUTES, IN ANY FASHION, WITH THE INTENT BEING THAT SUCH CLUB AMENITIES WILL NEVER BE UNDER THE CONTROL OF THE HOA’S MEMBERS?

decided June 22, 2023, by Florida’s Sixth District Court of Appeal, the Court (which, in our opinion, was the correct decision) explained that within the Solivita Declaration, the developer included language for each association member to pay as a part of the annual assessment a sum of money unilaterally determined by the club operator for both club operations and what also was just pure profit as argued by owner Gundel.

The Court explained that the assessment imposed by Avatar (the developer) for the mandatory club membership had two components. One component was the amount required for club expenses to be shared proportionately by each resident. The second component was for a membership fee that represented, according to the Court, an annual profit charge to each owner that was due and payable to Avatar. In fact, if a member did not pay, then their home could even be subject to the lien and foreclosure process by the association.

In the trial court’s summary judgment hearing, the Court ruled in Gundel’s favor, finding that assessments for the club, which constituted profit, were improper because pursuant to Section 720.308 of the Florida Statutes, assessments cannot be levied for profits, but only for expenses.

In response to this case and possibly for other reasons, at least one developer designed a new HOA community with a big difference: it made the clubhouse building and the dirt upon which it was constructed to be a part of the common areas of the HOA. Then through a complicated process laid out in the declaration, the developer provided that the clubhouse operations were not owned by the HOA and that after turnover of control of the HOA to the members, the members must purchase the “operations” of the club at what many consider a grossly inflated price. Should the association members decide not to make the purchase, then the developer maintains the right to sell the club operations to a third party for which the assessment paying members will be at the financial mercy of the club operator forever. No doubt the association membership is already paying for the clubhouse operations through their monthly assessments, and in our opinion to now require the membership to spend millions of dollars to buy those clubhouse operations is just plain wrong!

Let’s break this alternate scheme down. Although previously disclosed in the declaration and its attached club plan, either i) the association membership agrees to purchase the club operations at an inflated price for millions of dollars (and for what—the right to operate their own clubhouse?); or (ii) the developer retains the right to sell the club operations to a third party who will then be entitled to charge members assessments to both fund the operations and, like any business, earn a profit for doing what should have been handed over to the membership as a part of the turnover process. After all, what clubhouse operator is going to operate at cost and not expect a profit? Either way, the members lose, lose, and lose.

This type of plan ultimately hurts owners as it will likely create a five figure per member assessment obligation either in the nature of paying back the loan necessary to purchase the clubhouse operations or to be forced to pay a new clubhouse operator. The only money a post-turnover association member should have to pay for their clubhouse operations are the actual money expended for operations (i.e., what it costs to provide the restaurant, spa and pool services, etc.). Common area facilities were never designed or even contemplated to be a continual profit center for a developer or developerrelated entity.

Worse still, it appears that these types of schemes have no room for negotiation. The purchase price has been predetermined by the developer years ago when it initially recorded the community’s governing documents. While the developer can argue it is all disclosed in the governing documents (and therefore proposed buyers/future members have notice of this issue), it takes a fairly sophisticated legal mind to understand how this process is going to work. In this author’s experience, the financial obligations associated with either having to buy the clubhouse and/or the clubhouse operations is often quite a surprise to the members.

In short, requiring the membership to purchase the clubhouse operations based on an unreasonable financial

formula requires that the association borrow the millions of dollars necessary to pay the developer. In the end the obligation to pay the loan will be wrapped up in the assessment regime which means, once again just like in the Avatar case, the developer is improperly requiring the association to levy assessments for the developer’s (or third-party club operator’s) gross profit rather than only the legitimate expenses as contemplated by Section 720.308 of the Florida Statutes.

In our opinion, it is evident the Florida legislature needs to protect the citizens of the State of Florida by declaring such schemes unlawful. Clearly, the clubhouse operations should be turned over to the association membership as part of the turnover process, and the membership should not be charged for that which they should already own. If it is the clubhouse structure issue which needs to be purchased because it was not included in the overall purchase price of the houses within the community, then certainly the developer is entitled to recoup its legitimate expenses associated with the buildout; but post turnover the developer should not be entitled to profit at the expense of the association membership. If the developer wants to profit from the clubhouse in the clubhouse operations, then certainly the developer could have included those sums within the purchase price of each member’s home. Their decision not to do so and to artificially deflate the price of a home as a result thereof should not be allowed.

One cannot help but wonder if these types of clubhouse schemes could rise to the level of violating Florida’s Deceptive Trade and Practices Act as set out in Chapter 501, Fla. Stat. In fact section 501.24, Fla. Stat., provides in relevant part that unfair methods of competition, unconscionable acts or practices, and unfair or deceptive acts or practices in the conduct of any trade or commerce are hereby declared unlawful. While the developer can argue that the clubhouse scheme is fully disclosed, it is our opinion the owners can certainly argue that this practice is, at best, unfair and at worst unconscionable.

Board members and members who live in an association with these types of obligations are strongly urged to discuss their options with competent legal counsel so as to make informed decisions whether to buy the clubhouse and/or the clubhouse operations or consider filing a lawsuit against the association’s developer, arguing as Gundel did in the Avatar case, that this type of profit making activity is unlawful. Also, it must be noted that while the Sixth District Court of Appeal fully agreed with the outcome of the trial court, it certified a question to the Florida Supreme Court regarding the matter. However, the Florida Supreme Court declined review. Therefore, it appears the Gundel opinion remains valid. Nevertheless, it does not go far enough to protect association members from having to purchase their clubhouse and/or clubhouse operations after turnover. Therefore, the Florida legislature needs to do its job and protect the citizens of the state by outlawing this process altogether and requiring an HOA developer to turn over the HOA clubhouse and all of its operations to the association as a part of turnover process. n

Exactly What Must Be Included in the Notice of Late Assessments?

BY CAROLYN C. MEADOWS, ESQ.

A

s most of us are by now familiar with, in 2021 the Florida legislature enacted significant statutory changes to Chapters 718, 719, and 720, requiring a new notice to delinquent owners that must be mailed by an association before demanding payment of attorney’s fees related to the collection of unpaid assessments. Since July 1, 2021, the effective date of the legislation, most associations and management companies have experienced preparing and sending the Notice, or “NOLA.”

However, some questions remain which create a gray area

Photo by iStockphoto.com/Deagreez

and which leave association boards and managers to navigate the potential risk of failing to strictly comply with the content requirements of the statute as no case law currently provides guidance.

So, this question from boards and managers frequently arises, “We prepared and mailed this notice; does it comply with the statute?”

Properly preparing and mailing the NOLA saves time and money as well as reduces the risk that an owner can effectively and successfully challenge the association’s compliance with the statute. If a NOLA does not comply with the statute, at best it must be re-sent prior to demanding payment for attorney’s fees incurred in collections, resulting in at least a 30-day delay. A NOLA which does not

CAROLYN C. MEADOWS, ATTORNEY, BECKER

Carolyn Meadows focuses her practice on condominium, homeowner, and cooperative associations, assisting board members with their day-to-day operations, budget, corporate governance, contracts, enforcement of association covenants, and management issues. She represents all types and sizes of community associations throughout Florida, handling such matters as collections and foreclosures and other association-related matters in arbitration and court. She was recognized as a 2021 Super Lawyers, Rising Star, and is also a member of the Florida Bar’s Real Property, Probate, and Trust Litigation Section and the St. Petersburg Bar Association. For more information call 813-527-3900, cmeadows@beckerlawyers.com, or visit www.beckerlawyers.com

comply with the statute could be the basis for an owner making a claim that the association violated fair debt collection laws by attempting to collect a debt which was not actually owed or slander of title if a claim of lien has been recorded based on a noncompliant NOLA, among other possible claims.

Fortunately, Sections 718.121(5), 719.108(3)(c), and 720.3085(3)(d) Florida Statutes, provide the same form and state that the Notice “must be in substantially the following form”; however, there is still room for interpretation.

THE NOTICE OF LATE ASSESSMENTS MUST INCLUDE THE FOLLOWING INFORMATION:

NOTICE OF LATE ASSESSMENT

RE: Unit of (name of association)

The following amounts are currently due on your account to (name of association), and must be paid within 30 days of the date of this letter. This letter shall serve as the association’s notice to proceed with further collection action against your property no sooner than 30 days of the date of this letter, unless you pay in full the amounts set forth below:

*Interest accrues at the rate of percent per annum.

Although required in the form, many associations neglect to include the due dates for the maintenance or assessments being demanded. We advise that an association must include the due dates for the “maintenance” (or “assessments”). Although there is no case law addressing this issue, many associations choose to attach an accounting ledger to the NOLA, providing the due dates, description, and amount due for the assessments. We also recommend distinguishing “regular” assessments from “special assessments” as separate line items as applicable. Late fees may be included if the governing documents for the association authorize late fees. We recommend reviewing the declaration and bylaws for the association to confirm entitlement to charge late fees before including them in the NOLA. Late fees must also be no greater than the maximum allowed by the applicable statute. Interest may be calculated and included to the extent the association chooses to do so. The rate may be designated in the association’s governing documents or may default to the statutory 18 percent per annum if no rate is specified. If the association chooses to not include an interest total, we recommend the

Late fees may be included if the governing documents for the association authorize late fees. We recommend reviewing the declaration and bylaws for the association to confirm entitlement to charge late fees before including them in the NOLA.

Late fees must also be no greater than the maximum allowed by the applicable statute.

association must include the rate of interest as required by the form, “Interest accrues at the rate of ____ percent per annum.” In the absence of case law on this issue, we recommend adhering strictly to the form, language, and types of charges allowed in the statutory form. Although arguments may be able to be made for variation in the language and inclusion of other charges such as administration fees, following the statutory form as closely as possible will most effectively reduce the risk of an owner successfully challenging your NOLA. n

Preparing for a Complicated Budget Season

BY JONATHAN S. GOLDSTEIN

The upcoming budget season will not be a typical one for condominiums with buildings that are three stories or more because associations must obtain their structural integrity reserve study (SIRS) if they have not already done so and then grapple with the question of how to implement the requirement to fully fund the structural integrity reserves. In particular, associations must work with legal counsel to determine requirements for a budget voted on and “adopted” before December 31, 2024. On the one hand, it is arguable that Section 718.112(2)(f)(2)(a) requires structural integrity reserves to be maintained in the upcoming budget, regardless of when it is adopted; however, it is also arguable that unless a budget is adopted “on or after December 31, 2024,” the members

Photo by iStockphoto.com/diego_cervo

can still waive or reduce structural integrity reserves through an appropriate vote of the membership. Whether the Division of Florida Condominiums, Timeshares, and Mobile Homes would agree with the latter interpretation is still undetermined, and this is just one of various issues that would benefit from Division rulemaking.

A similar issue that would benefit from Division rulemaking and that boards should consult with legal counsel about is whether structural integrity reserves can be funded using the more flexible cash flow (pooled) method versus the straight-line method, in which every reserve component must be funded individually and should be presented as a distinct line entry in the reserve schedule included within the budget. Straight-line funding eliminates the flexibility to use those allocated funds for another reserve component. Associations should also consider whether to seek member approval (a majority of the membership voting interests) to transfer preexisting reserve beginning balances from one reserve account to another reserve account as part of the adoption of a post-SIRS budget. This may be an integral part of reserve planning if reserve schedules are incorporat -

JONATHAN S. GOLDSTEIN, EQUITY PARTNER AND CO-CHAIR OF THE CONDOMINIUM AND HOA PRACTICE GROUP

Jonathan S. Goldstein is a Martindale Hubbell “AV” rated partner at Haber Law. His practice areas include condominium and homeowners’ association (HOA) law, commercial litigation, and construction litigation. He is board-certified in condominium and planned development law. Mr. Goldstein has represented community associations in all facets of general representation and collections, including but not limited to turnover and construction-related disputes, covenant enforcement, amendment drafting, meeting attendance, arbitration before the the Division of Florida Condominiums, Timeshares, and Mobile Homes, lien foreclosures, and corporate governance. For more information about Haber Law, call 305-379-2400 or visit www.haber.law

ing the use of pre-existing balances for pooled reserve components to which such balances were not previously allocated. Similarly, given that nonstructural reserves can still be waived or used for alternative purposes with a membership vote, thought can be given as to whether to seek a vote to apply non-SIRS preexisting balances to the SIRS account or to seek their waiver. Similarly, many associations voluntarily reserve for certain nonstructural reserve components in the aggregate and may wish to revisit such practice with their reserve specialist, legal counsel, and management team. Since 2023 the membership vote required to use reserves for an alternative purpose (including to use them for other items in the pool) is a majority vote of the total eligible voting interests of the association.

THE INFORMATION CONTAINED IN THIS ARTICLE HAS BEEN PREPARED FOR INFORMATIONAL PURPOSES AND DOES NOT CONSTITUTE PROFESSIONAL ADVICE. YOU SHOULD NOT ACT UPON THE INFORMATION CONTAINED IN THIS ARTICLE WITHOUT OBTAINING SPECIFIC PROFESSIONAL ADVICE. n

Understanding the New Law on Hurricane Protections for Homeowners’ Associations

BY MICHAEL TOBACK, ESQ.

I

n late May Florida’s governor signed House Bill 293 into law, which addresses hurricane protections for homeowners’ associations. Association directors, committee members, and property managers should review and, if necessary, revise their current approval policies to ensure compliance.

HOUSE BILL 293: HURRICANE PROTECTIONS FOR HOMEOWNERS’ ASSOCIATIONS

Specifically, the new law states that all Florida homeowners’ associations, regardless of when they were first established, must adopt hurricane protection specifications for all of the structures and types of improvements located on a parcel within their community. The law details that “hurricane protection” includes, but is not limited to, roof systems that comply with the Florida Building Code and meet ASCE

Photo by iStockphoto.com/Bilanol

7-22 standards, permanent fixed storm shutters, roll-down track storm shutters, impact-resistant windows and doors, polycarbonate panels, reinforced garage doors, erosion controls, exterior fixed generators, fuel storage tanks, and other hurricaneprotection products.

The hurricane protection standards that an association board (or applicable committee) must adopt may cover the color, style, and other factors deemed relevant by the board, though adopted standards must comply with all applicable building codes.

With such approved specifications in place and notwithstanding any other provision(s) in an association’s governing documents, HOA boards and architectural review committees are barred from denying owners’ applications for the installation, enhancement, or replacement of hurricane protections that conform to their community specifications.

“The board or committee may require a parcel owner to adhere to an existing unified building scheme regarding the external appearance of the structure or other improvement on the parcel,” reads the new legislation.

MICHAEL TOBACK, ATTORNEY, SIEGFRIED RIVERA

Michael Toback joined Siegfried Rivera as an attorney in 2015. He concentrates his practice in the areas of condominium and community association law, with matters including but not limited to drafting and negotiating contracts; providing opinion letters on a wide range of community association topics; drafting, interpreting, and amending governing documents; litigating enforcement actions in court and/or with the Department of Business and Professional Regulation’s Division of Florida Condominiums, Timeshares and Mobile Homes; preparing for and attending both board and membership meetings; and assisting in the recovery of delinquent assessments. Additionally, he assists the firm’s construction litigation practice group in handling construction defect cases. For more information call 561-296-5444, email MToback@siegfriedrivera.com, or visit www.siegfriedrivera.com.

CONSIDERATIONS FOR HOMEOWNERS’ ASSOCIATIONS

Given that this law has already gone into effect upon its gubernatorial approval, homeowners’ associations that require prior review for owners’ storm-hardening property improvements should immediately review and address their policies and standards. Questions regarding the adoption of such specifications and how they will be enforced via an application and review process should be referred to highly qualified and experienced association legal counsel.

This new law is aimed at protecting the health, safety, and welfare of the people of the state of Florida while also enabling associations to help ensure uniformity and consistency in the hurricane protections installed by owners in their communities. Given its plain language, HOAs and their boards of directors would be well advised to develop and utilize clear specifications for all such improvements, focusing only on their aesthetic qualities to maintain uniformity. Please contact us with any questions on this new law. n

Slippery Algae and Pre-suit Mediation

BY MICHAEL J. GELFAND, ESQ.

SLIPPERY ALGAE SLIDES YOU INTO COURT

Here in Florida, everyone knows that the climate we love also loves something we usually do not love. Algae grow everywhere—on the ground, on sidewalks, on walls, and even on decks. And algae grow like wildfire!

What are the duties of community associations to stop the slime? Of course, there is the flip side: what happens when someone slips and falls on the algae

Photo by iStockphoto.com/Zinkevych

that was not cleaned? Will the property owner be liable for negligence?

A recent Florida appellate court decision provides guidance and warnings for Florida community associations as well as for all who own or control Florida real property. In Williams v. Weaver , 49 Fla. L. Weekly D 610 (Fla. 5th DCA, March 15, 2024), the decision indicated that Williams went to Weaver’s house to perform lawn services. While walking onto a deck located on the front lawn before beginning his work, Williams slipped on a dark area covered in algae, fell, and injured his back.

Williams sued Weaver for negligent maintenance of the property. Weaver testified that he cleaned the deck annually, but he also said that it had not been cleaned for several

MICHAEL J. GELFAND, ESQ., SENIOR PARTNER, GELFAND & ARPE, P.A.

Michael J. Gelfand, Esq., the senior partner of Gelfand & Arpe, P.A., emphasizes a community association law practice, counseling associations and owners how to set legitimate goals and effectively achieve those goals. Gelfand is a dual Florida Bar board-certified lawyer in condominium and planned development law and in real estate law, a certified circuit and county civil court mediator, a homeowners’ association mediator, an arbitrator, and parliamentarian. He is a past chair of the Real Property Division of the Florida Bar’s Real Property, Probate & Trust Law Section, and a Fellow of the American College of Real Estate Lawyers. Contact him at ga@gelfandarpe.com or 561-655-6224.

months. When shown a photograph of the deck taken at the time of the incident, Weaver admitted that the deck needed to be cleaned at that time.

One might think that was it. The failure to clean would have meant automatic liability for property owner Weaver, but that was just one factor for analysis. The trial court determined that the algae on the deck was “open and obvious” and that it was “common sense” that one could fall on the deck. Thus, the trial court granted a summary judgment for Weaver, concluding that a trial was not necessary because a reasonable jury could not find otherwise.

The Florida appellate court disagreed with the trial court’s decision

not to hold a trial and reversed the trial court decision. The appellate court’s analysis began with recognizing the age-old precept that a property owner owes a duty of care to a business invitee such as Williams and that the owner must maintain their property in a reasonably safe condition.

This gives rise to two distinct duties of a property owner: (1) give warning of concealed perils, which are known or should be known to the property owner but are not known to the invitee, and (2) maintain the premises in a reasonably safe condition.

The appellate court then explained a critical distinction. Whether a danger is open and obvious is not the question of whether the object, in this case the algae on the deck, is obvious. Instead, the question is whether the dangerous condition of the object is obvious. In addition, the property owner still has a duty to maintain the property in a reasonably safe condition.

This decision will likely be a warning for Florida associations that actually own property, such as cooperative and many homeowners’ associations, as well as condominium associations that administer common elements and association property. A belief that a dangerous condition is open and obvious may not protect an association from claims and trials.

Returning to the beginning, this decision reinforces the need for most Florida associations to properly inspect their premises and make timely efforts to maintain their premises. Perhaps in Florida this also means, as a practical matter, once a year cleaning of a deck may not be often enough!

FAILURE TO COMPLY WITH PRE-SUIT MEDIATION REQUIREMENTS CAUSES PROPERTY OWNER’S LAWSUIT AGAINST ASSOCIATION TO BE TOSSED

Do NOT Go Directly to Court! It is not Monopoly®, and the money is not pastel play dollars. For quite some time laws have required Florida community association litigants to air many disputes in mediation or arbitration before going to court and filing a lawsuit. The process is referred to as mandatory presuit arbitration or mediation or alternative dispute resolution. What is the consequence of not complying? It can be very costly, both in terms of money and losing face!

Recently a Florida appellate court ruled, in a decision that will impact owners in Florida condominium, cooperative, and homeowners’ associations, that a property owner’s lawsuit against her association must be dismissed because the owner failed to comply with the Homeowners’ Association Act’s mandatory pre-suit mediation requirements. In Dunmar Estates Homeowner’s Association, Inc. v. Rembert , 49 Fla. L. Weekly D 502 (Fla. 5th DCA, March 1, 2024), Rembert, a property owner, requested records from the association.

Having decided that she was denied access to all of the requested records, Rembert sued the association for failing to provide her with timely access to records. However, Rembert did not first comply with the Act’s mandatory presuit mediation requirements. The trial court denied the association’s motion to dismiss.

The Florida appellate court disagreed with the trial court’s denial, finding that Rembert’s case must be dismissed. The court pointed out that the Act, Section 720.311(2)(a), Fla. Stat. (2021), specifically provides that an “aggrieved party,” Rembert, is required to serve a demand for pre-suit mediation before filing a lawsuit if there is a dispute between the parcel owner and the association about any of the following:

• Use of or changes to owner’s parcel, common areas

• Covenant enforcement

• Amendments to association documents

• Board and committee meetings

• Access to official association records.

Therefore, because Rembert failed to comply with the Act’s requirement of mediation before filing her lawsuit, the lawsuit should have been dismissed.

This decision reinforces the significance for both Florida community associations and their owners/members to comply with mandatory arbitration and mediation pre-suit requirements, “pre” meaning before filing a lawsuit! Failure to comply requires dismissal of the lawsuit, so the defendant wins. There is no do-over in that lawsuit.

The kicker is that after a dismissal, usually the defendant can collect attorneys’ fees and costs from the plaintiff! Further, the plaintiff cannot proceed with a new case until paying the costs assessed in the first case. n

Community Community

Florida Community Association Professionals’ (FCAP) training is offered on two levels. Level one consists of courses meeting Florida’s continuing education requirements for CAMs, and level two is the Florida Advanced CAM Studies (FACS) course. For further information about the more than 31 online continuing education classes available or to pursue the Certified Florida Community Association Manager (CFCAM) designation, please visit www.fcapgroup.com/membership/education-training/ .

BECAUSE YOU ASKED

By Betsy Barbieux, CAM, CFCAM, CMCA

Betsy,

There were a few takeaways that were eye-opening to me. I believe the presentation emphasized that the association operates like a business even though it is not for profit, but there are certain distinguishing factors and privileges granted to its members that are not afforded to shareholders of a company. For example, boards can encourage members (who are akin to shareholders) to attend, listen, and provide comments on the agenda items at board meetings. However, I did not know that meetings were not intended as Q&A sessions, which is how I have seen them conducted in the past. I also was not aware that the board did need to give a response to those owners’ comments.

I am not an association attorney, so while we are familiar with the entirety of Chapters 718 and 720, we focus on the sections that we typically raise during litigation. Learning that the board does not have to be held hostage by the membership answering every question they have about agenda line items, as I have seen done in other communities, was eye-opening.

I will be sure to share your YouTube channel. Thank you for reaching out.

- Amber

Amber,

It was a pleasure to meet you, and thank you for your kind comments! You said you learned something new. Would you mind sharing that with me? I’d like to make sure I always include it when I give the presentation on angry owners.

- Betsy Betsy,

I have questions about HB 1203. We are an HOA with 32 villas with no common areas. We do not have a management company. We are a three-member board; I am from the UK, another is from Norway, and the third lives in Florida.

Completing four hours of education annually is going to be very difficult for us, especially since English is not the first language of our Norwegian member. How are the hours reported? To whom? How does the DBPR know who all the board members are in the state of Florida? If required for reporting purposes, two of us do not have social security numbers.

And to make matters worse for me, I am a practicing lawyer in the UK and required to selfreport if I break the law in any way. The UK penalties for breaking the law or failing to report are severe. If I am unable to complete the Florida training in a timely manner, am I breaking the law?

It’s difficult enough to get board members, but now it may be impossible with this new law.

- Dennis

Dennis,

The processes and systems are not in place and I’m sure will not be in place for months to know whether a board member is in compliance with these new laws. I don’t see a compliance date mentioned in the legislation.

I am not aware of a social security number being required for board members. If that is the case, half the board members in Florida don’t have one since they live out of the country.

Betsy Barbieux

There is no indication of how or when the Division of Condominiums will develop the syllabus for the providers (like me) to expand/change our existing board course materials. It also appears from the legislation that the Division is to provide a standardized certificate of completion.

There is no system in place to track a board member’s compliance with CE hours since board members do not have a license. That system will have to be developed. There is not a complete HOA registry for the Division to know if an HOA association has more or less than 2,500 parcels.

Similarly, there is no way to track the required CE hours for CAMs of HOAs. There is no system in place to know who manages an HOA versus a condominium/co-op, and it will likely take forever for the Regulatory Council to develop a curricula syllabus.

Both HB 1021 and HB 1203 are a mess and do not dovetail with any other required curricula or existing electronic reporting systems. I have written to the governor twice and asked him to veto these two bills.

The CAM Matters™ show is out now, and you can see my frustration with these two bills.

- Betsy n

MASTERING COMMUNITY MANAGEMENT: A ROADMAP TO EFFECTIVE TASK MASTERY

By Marcy Kravit, CMCA, AMS, PCAM, CFCAM, CSM Director of Community Association Relations

Hotwire

Communications

FCAP Education Program

Coordinator

Marcy L. Kravit

In the dynamic realm of community associations, community association managers are the key that holds communities together.

Tasked with executing board decisions, meeting directives, and ensuring vendor accountability, CAMs play a vital role in shaping the success and harmony of the communities they serve. In this guide we will delve into the importance of CAMs attending to assigned tasks, executing them effectively, following up with diligence, and fostering strong partnerships to ensure community prosperity.

THE FOUNDATION—ATTENDING TO BOARD DECISIONS AND DIRECTIVES

At the heart of community management lies the duty of CAMs to attend to tasks assigned as a result of board meeting decisions and directives. Whether it involves implementing new policies, overseeing community projects, or managing financial matters, CAMs are entrusted with bringing the board’s vision to fruition. By understanding the board’s objectives and priorities, CAMs can align their efforts to support the community’s strategic goals and enhance its overall well-being.

THE JOURNEY—FROM EXECUTION TO FOLLOW-UP AND COMPLETION

While executing tasks is essential, the true mastery of community management lies in the art of follow-up and follow-through. CAMs must go beyond the mere task completion and ensure that every initiative is seen to, through attending to the details and its conclusion. By maintaining a proactive approach, tracking progress, addressing challenges promptly, and providing regular updates to the board of directors, CAMs can foster transparency, accountability, and trust within the community. This commitment to thoroughness and communication not only ensures the successful implementation of projects but also instills confidence in community stakeholders.

THE SECRET WEAPON—VENDOR ACCOUNTABILITY AND PARTNERSHIP

In the intricate ecosystem of community management, vendors play a crucial role in delivering essential services to residents. CAMs must act as vigilant guardians, overseeing vendor performance and ensuring compliance with contractual obligations. By establishing clear expectations, monitoring service quality, and fostering open communication with vendors, CAMs can uphold standards of excellence and ensure that the community receives top-notch services.

Strong vendor partnerships built on mutual respect and accountability are the key to creating a thriving community environment.

AN AWARD-WINNING & INNOVATIVE LEGAL TEAM INSIGHTS, TIPS, AND TRICKS FOR SUCCESS

1. Effective Communication—Clear and open communication is the cornerstone of successful community management. Regular updates, transparent reporting, and active engagement with stakeholders enhance collaboration and build trust within the community.

2. Organization and Task Management—Utilize tools such as project management software to streamline task management, set priorities, and track progress. Establishing clear timelines and milestones helps to ensure that tasks are completed on schedule.

3. Proactive Problem-Solving— Anticipate challenges, address issues promptly, and seek creative solutions to overcome obstacles. Proactive problemsolving demonstrates leadership and drives positive outcomes for the community.

4. Continuous Learning and Development—Invest in ongoing professional development to stay abreast of industry trends, best practices, and emerging technologies. Networking with peers and industry experts provides valuable insights and resources for personal and professional growth.

Community association managers hold a position of immense responsibility and opportunity to shape the success and vibrancy of the communities they serve. By attending to tasks with dedication, executing them effectively, following up with diligence, and fostering strong partnerships with vendors and stakeholders, CAMs can create a community environment where residents thrive and harmony prevails. Embracing the principles of transparency, accountability, and collaboration, CAMs can lead their communities to greater success! n

COMMITTED TO HIS COMMUNITY—THOMAS A. NEWGENT, CFCAM

Thomas Newgent is currently the property manager for Beach Woods Property Owners Association in Melbourne Beach, Fl. He comments, “I took this position after being with the Bluffs of Sebring Condominium Association for five years, where I started as an irrigation technician and worked my way up to assistant manager. I felt that it was time for a change, and Beach Woods at Melbourne was the perfect fit for me and my family.”

Newgent was born and raised in Avon Park, a small town in Central Florida that is mostly known as the town north of the Sebring International Raceway where the ISMA 12 Hours of Sebring is held. After different jobs in various fields, he started in golf course maintenance and worked his way up to superintendent before moving on to the Bluffs. He remarks, “I attended Florida Gateway College for horticulture and am getting ready to start another path with Eastern Florida State College for business management.”

When asked what led to his decision to pursue his CAM license, he notes, “I always enjoyed the big projects, from the planning to execution, so it was natural to take another step in the direction of community management and obtain my CAM. Now there is no shortage of projects to plan and execute.”

In terms of pursuing the CFCAM designation, Newgent comments, “I wanted to show my community the commitment that I have to the residents and the board of directors to do what is absolutely in their best interest—even though we all know not all residents think that is the case all the time.”

Newgent shares, “The biggest issue facing communities right now is Amazon. Post-COVID everyone lives in a world of next-day delivery, and unfortunately the community projects and needs are not always that easily available. It may work for a time, but how well and for how long? The next issue is education. I encourage everyone—even my maintenance staff and board members—to take the time to educate themselves as much as possible. The last issue is focused on support. Managing a community of any size has its challenges. Unfortunately, some people don’t know where or to whom to turn. Reach out and make professional connections with people in the same field. Between trade shows, LinkedIn, or the FCAP Directory, reach out and make those connections with like-minded people who may have already gone through the problems you’re facing now.”

When Newgent is asked what professional achievement he is proudest of, he shares, “Honestly, doing what I am doing now makes me the proudest. I overcame a lot of personal doubts about the profession to be where I am. It also makes a big difference to hear residents say ‘thank you’ occasionally.”

His biggest influences have been past managers. He has had the opportunity to work for some great people who have taught him a great deal not only professionally but also personally. They have also taught him how to push himself to be a better manager of properties and personalities.

When not managing, Newgent shares how he spends his time. “I am a husband and a father of three. We enjoy trips to Disney as a family, and personally I enjoy pretty much any activity outdoors to get the mental reset that is something everyone in this industry needs.”

FLCAJ would like to congratulate Thomas Newgent on becoming the most recent CAM to obtain his CFCAM designation! n

Celebrating 40Years

An Association property loss claim can become a complicated and time-consuming challenge for even the most experienced board and property manager. It can take them away from managing the day-to-day responsibilities of the community and can also sow discord and mistrust amongst community members. Add the technicalities of your insurance policy and the insurance co-negotiated settlement. At Tutwiler & Associates, we’ve been through the drill and understand the value of clear communication with the board and association members to set realistic expectations. And with recent Florida legislative changes, an insurance appraisal may be a path to a quicker settlement without litigation. Our experience handling condominium, apartment, and homeowner association claims in Florida is unmatched. We invite you to call us to discuss becoming part of your team.

Save Your Association Some Money

Boards of directors have a fiduciary duty to the community associations they serve. The following tips are provided as a beginning place for directors to begin to carry out these duties responsibly.

FINANCIAL STRATEGIES FOR BOARD MEMBERS

By Ana Rivero

Managing an association›s money is an important facet of being a board member. Here are some pro tips for making it more manageable!

Keep Track of Everything—While your property management company will be collecting funds, monitoring is still essential. Accounting software can streamline your process, reduce errors, and help ensure precise recording keeping, necessary for compliance.

Conduct Regular Financial Audits— Reviews are essential to identify discrepancies and prevent fraud. The board should maintain meticulous records of all financial transactions.

Stick to Your Annual Budget—Creating multiple budgets based on different scenarios can help prepare for various market conditions and keep your

Photo by iStockphoto.com/artisteer

completed—the original work was ripped out and redone and the area was still falling apart! The board member didn’t want to be honest with me, however, when I jokingly stated, “What did you do, hire the guy you met in the parking lot at the local do-it-yourself store?”

No true Floridian contractor will buy their supplies from the local retail stores as it’s not cost effective for us. We buy from suppliers that approve us for distribution and application of their products. Because of Florida being so transient, a lot of our suppliers will not sell to the contractors that come down during the winter months.

Support your local businesses! The sweet taste of a low price is far outweighed by the bitter taste of a poor-quality project!”

Connie Lorenz is president of Asphalt Restoration Technology Systems. For more information, call 800-2544732, email connie.lorenz@asphaltnews.com, or visit www.asphaltnews.com

THE HELPING HAND OF A GOOD COMMUNITY MANAGEMENT SYSTEM

By John More

association on track.

Rely on the Experts—Whether it’s your property management company, a professional accountant, or legal counsel, they are experts for a reason.

By adhering to these practices, boards can optimize their financial operations and make informed decisions for long-term success.

For more information on Allied Property Group, call 305-232-1579 or 239-241-6499 or visit www.alliedpropertygroup.net.

HOW IT’S DONE IN FLORIDA

By Connie Lorenz

While working with a community for six months, getting them prepared to move forward with a rejuvenation program utilizing Pavement Dressing Conditioner (PDC), I hosted a “What to Expect” meeting and discovered that an area we had quoted to be repaired had been repaved by another company. I was upset about the poor quality of the project and was going to help the board get the proper paving by reaching out to the contractor and educating the contractor about how we do things in Florida.

Why educate a Florida contractor? Because it wasn’t. How did I know that? Because the board paid the contractor within 24 hours of the work being

Good community management systems help in all facets of an association’s business. People often buy into associations for the amenities, like tennis courts, spa, gym, and pool, which are ready to use without owner maintenance. However, these come at a cost to the association.

Owners agree to pay for maintaining common areas and amenities when joining an association. Failure to pay means losing access to these areas. It’s frustrating to pay fees on time while others, who don’t pay, use the amenities. Restrictions must be applied based on association rules, but blocking all doors is illegal and difficult with commercial access systems.

The right management system allows easy barring of non-paying units from certain areas. Once fees are updated, access should be easily restored. A proper management system with a built-in access system helps collect owed money effectively.

John More is the owner and president of Asterix Software and Asterix Hardware. For more information, visit www.asterixsoftware.com.

Photo by iStockphoto.com/felixmizioznikov

MINIMIZE DAMAGE—DETECT WATER LEAKS

By Beatriz Eguaras

Water damage is the leading cause of insurance claims in residential buildings. The costs and deductibles for water damage coverage are skyrocketing. Buildings with a history of significant water claims may find it difficult to obtain insurance and may need to consider self-insuring. Fortunately, there is a better way to manage water leak risks. We believe that Aware Building’s “Whole-Building Leak-Detection” wireless solution is the answer. Detecting water leaks early is crucial for minimizing damage.

Where does your building incur its water damage? Our wireless leak sensors can be placed anywhere—in bathrooms, underneath sinks, near dishwashers and washing machines, in PTAC units or water heater closets, and in mechanical rooms. Our sensors can monitor and alert you to the presence of water as well as changes in humidity, temperature, and more!

We are here to help you take proactive measures rather than reacting to unexpected situations. Aware Buildings is excited to work with you to keep your risk profile in good shape!

Beatriz Eguaras is a senior account manager for Aware Buildings. For more information contact Aware Buildings at info@awarebuildings.com.

REVENUE AND SAVINGS FOR YOUR COMMUNITY

By Keith Minarik

One of the many advantages of a bulk telecommunications agreement is the potential for a telecom service provider to offer a door fee to the homeowner association (HOA) or condominium association (COA) upon contract execution. This one-time per-door payment provides a valuable opportunity for communities to bolster their reserves or fund neighborhood projects. For HOAs and COAs, these door fees can significantly improve financial flexibility. The additional funds can be allocated to various initiatives, such as upgrading amenities, enhancing security systems, or offsetting the costs of large assessments. Furthermore, these agreements ensure residents receive fast, high-quality, and reliable internet services, fostering a more connected and

appealing community environment along with significant savings compared to retail pricing.

Ultimately, incorporating door fees into bulk telecom agreements not only supports financial stability but also promotes continuous community improvement, benefiting both communities and their residents.

Keith Minarik is vice president of community development with Blue Stream Fiber. To find out more about how Blue Stream Fiber can help support your communities’ projects, visit https://www.bluestreamfiber.com/partner

THE IMPORTANCE OF A PREVENTIVE MAINTENANCE PLAN

By Ashley Dietz Gray

Maintaining condominium or HOA common elements is vital for the seamless operation of any community. Creating a comprehensive preventive maintenance plan is not just about ensuring the smooth functioning of common elements; it is also about prioritizing the safety and comfort of all community members. By proactively addressing maintenance needs, communities can prevent potential safety hazards, minimize disruptions to daily operations, and save on costly repairs. Regular maintenance also contributes to the preservation of property values, ensuring that investments in the community remain sound and stable.

Neglecting maintenance can result in issues like elevator malfunctions, air conditioning problems, and unexpected equipment breakdowns. To prevent such problems, it’s crucial to establish a proactive maintenance schedule that identifies all common elements in need of upkeep.

For condominiums, outside professionals should handle roofs, elevators, cooling towers, generators, and alarm systems while in-house staff can take care of tasks like air filter replacement, touch-up painting, and cleaning. HOAs should entrust professionals with maintaining trees, electrical systems, lakes, and pools while in-house staff can handle pressure washing, minor repairs, and basic maintenance duties.

Prioritizing preventive maintenance is a fundamental aspect of responsible community management that benefits everyone involved.

Ashley Dietz Gray is vice president of marketing for Campbell Property Management. For more information, call 561-704-4042, email adietz@campbellproperty.com, or visit www.campbellpropertymanagement.com.

BASIC FINANCIAL STATEMENTS

By Julie A. Jaram, MBA

Reading and interpreting financial statements for your community association is an integral part of the community’s success. Often, it may seem as though accountants speak a different language. Below is an overview of the basic financial statements with a brief description to clarify the purpose of each report.

Income Statement

The purpose of the income statement is to keep track of income and expenses over a specific period of time (for the six months ended June 30, 2024). This statement should contain a couple of key columns—actual amounts and budgeted amounts for income and expense categories. This allows the reader to assess where they stand for a specific period of time, and whether they are within or outside of budgeted amounts for each category. Net income/loss is listed at the bottom of the income statement and overall states if the association has a surplus or deficit for the period stated.

Balance Sheet

The balance sheet depicts a snapshot of the association’s financial status at a given point in time and is made up of three sections: assets, liabilities, and members’ equity/fund balances.

Assets are items that the association actually owns. Assets consist of items such as cash, accounts receivable (assessments due from owners not yet paid), prepaid expenses, and deposits (money held by the association that will eventually be returned).

Liabilities are amounts owed by the association (most likely payments due to vendors for products or services).

Members’ equity/fund balances state the current balance in the operating and reserve funds and the current period’s net income or loss.

These basic reports are typically prepared on a monthly basis and sent to board members for review. A few key things to consider when reviewing include the following:

• Compare cash balance on balance sheet to bank statements to ensure balance ties out

• Review accounts receivable—specifically, if the amount is continually increasing

• Compare budgeted expenses to actual figures

• Confirm reserve expenses are paid from a reserve fund

Julie Jaram, MBA, is a partner for Devin & Associates. For more information, call 727-290-2578, email jjaram@devi nandco.com, or visit www.devinandco.com.

BUDGETING TIME

By Ed Williams, RRC

So, it is budgeting time. This is just a reminder not to forget about your roof(s). Most manufacturers require that the roof be inspected at least once a year by a competent professional in order to maintain the warranty. In addition to this once-a-year timetable from the manufacturer, we recommend that inspections be done before and after any significant damaging weather, like a hurricane, occurs. Small repairs may mean the difference between a complete loss of the roof or little to no damage.

In addition, insurance companies are requiring replacement of roofs when they are 20 years old. If your current budget assumes the roof will last longer than 20 years, then adjustments will need to be made. This applies mostly to flat roofs. If you have tile, metal, or shingles, you should check with your agent to find out what their companies require.

Ed Williams is the owner of Ed Williams Registered Roof Consultant. For more information, call 772-335-5832 or email EdWilliamsRegisteredRoofConsultant.com.

BUDGET PREPARATION CHECKLIST—KEEP IT SIMPLE

By Lauren Chieffo, LCAM

As associations gear up for budget season, it’s crucial to navigate the process with strategic planning to ensure financial stability and address the unique needs of your community. To keep the budgeting process straightforward, focus on clear, consistent communication, prioritize essential expenses, and use historical data to guide your projec-

tions and decisions. Here is a checklist of our best practices for preparing your budget.

• Set a Budget Meeting Date—Remember to post/ provide notice properly and consider if a workshop is desired.

• Reserve Study—Does the association have an updated reserve study? Are SIRS required?

• Vendors & Contracts—Check contracts and reach out to vendors to review potential contractual updates.

• Projects—Go over projects the association would like to complete in the next year and request bids for proposed work.

• Review Trends & Data—Use the previous year’s budget, current financials, and yearly trends to estimate costs.

• Plug in Your Assumptions—Plug the estimated numbers into a budget spreadsheet and calculate Association dues.

• Lauren Chieffo, LCAM, is a Regional Director with GRS Community Management. For more information, call 561-641-8554, email residentservices@grsmgt.com, or visit www.grsmgt.com

FINANCIAL BEST PRACTICES FOR COMMUNITY ASSOCIATIONS

By Marcy Kravit, CMCA, AMS, PCAM, CFCAM, CSM

Effective financial management is essential for community associations. Key practices include transparent budgeting, regular financial reviews, and proactive risk management. Specialized accounting software can streamline tracking and ensure accurate reporting. Regular financial audits build trust among residents. Implement fraud prevention measures and train board members in financial management to safeguard community assets. Establishing reserve funds and appropriate insurance policies protects against unexpected challenges.

Additionally, incorporating bulk television and internet services from providers like Hotwire Communications is cost effective. By negotiating bulk service agreements, associations can secure lower rates than individual residents would pay. This not only saves residents money but also enhances the overall value of living in the community by providing high-quality, reliable service at a fraction of the retail cost.

Marcy Kravit, CMCA, AMS, PCAM, CFCAM, CSM, is director of community association relations. For more information visit www.hotwirecommunications.com.

PLAYBOOK FOR COMMUNITY FINANCE SUCCESS

By Suzel Broe, CFO

compliance deadlines, do not lose sight of fundamental budgeting and finance best practices. Sound financial health ensures a community’s stability amid any broader shifts.

There are certain “musts” for every association during budget season, including the following:

• Conduct a transparent budgeting process with regular reforecasting

• Prevent financial mismanagement through the segregation of duties, strong internal controls, and employee training

• Diversify association investments.

• Implement economic safeguards such as reserve funds and robust insurance coverage, engaging legal professionals to ensure compliance and a professional management team

These strategies bolster an association’s financial well-being and lay a secure foundation for long-term success. Stay proactive and informed, and empower your community for a brighter financial future.

For more information on KW PROPERTY MANAGEMENT & CONSULTING, contact Suzel Broe chief financial officer—financial services at 305-476-9188 or sbroe@kwpmc.com, or visit www.kwpmc.com

BENEFIT FROM COST SAVINGS AND EFFICIENCY

By Stephen J. Kirschner, CPA

My HOA in Boynton Beach can serve as an example of how your association can benefit from cost savings and efficiency. We utilize multiyear contracts that are mutually cancellable on 60-day notice without cause. For cable and internet service, we use a consultant at a reasonable fee. We have the same vendor over several contracts, including wiring the homes for fiber optic.

Management is for a fixed fee, with salaries included and reasonable annual compensation increases. Our property manager does the books on site reviewed monthly by a management company controller.

In a time when Florida community managers and association boards are navigating significant changes in the insurance landscape and upcoming state law

Billing is monthly, so delinquencies show up faster. And we accelerated the due date from 30 to 15 days. In addition to the 18 percent APR (annual percentage rate), we added a $25 administrative fee for every month payment is late.

We screen both buyers and renters, and renters require a $1,000 security deposit against any damages. However, the owner is still responsible for the maintenance. Create a realistic budget and watch for variations,

which is where you see if you have a problem.

Steve Kirschner is a Florida Supreme Court certified mediator for Lasula Consulting & Mediation. For more information, call 561-840-9798, email stevekirschner@mediatorcpa.com, or visit mediatorcpa.com.

MAIN INGREDIENT FOR A HEALTHY COMMUNITY

By Ryan Clifton

The main ingredient for a healthy community is proper budgeting. A proper budget will cover all required operating expenses to maintain the community while fully funding reserves.

A best practice for budgeting is to adequately fund the irrigation system budget line to optimize its performance. Your expensive landscaping thrives, survives, or dies mostly based on the performance of the irrigation system. Consider a preventive maintenance program or independent inspector for your system.

Also, create a project list. Prioritize the order of your list first by association needs and then association wants. Each budget year, add the appropriate number of projects from this list. This list will provide better management of the projects and proper communication of project completion to membership.

The best way to manage reserves is to obtain and update your reserve study. It is essential to follow the reserve study’s funding and project schedules and to obtain an updated study every three years. The simple remedy to avoiding special assessments is to follow the reserve study plan!

A proper budget will enhance the beautification of the community for families to enjoy while avoiding financial hardship for the members.

Ryan Clifton is vice president of developer operations, CMCA, with Leland Management. For more information call 888-465-0346 or visit www.lelandmanagement.com.

HOW TO BUILD AND MAINTAIN A FINANCIALLY HEALTHY COMMUNITY ASSOCIATION

By Camille Moore

Maintaining a financially healthy community association ensures that your community remains attractive, well-maintained, and valuable. A financially sound association can adequately fund maintenance, improvements, and unexpected expenses, benefiting all

residents. Here’s how to build and maintain a financially healthy community association.

Establish a Clear Budget—Assess community needs, prioritize essential expenses, and include a reserve fund for unexpected repairs.

Accurate Financial Records—Maintain transparent accounting and conduct regular audits to ensure accountability.

Fair and Consistent Fees—Review and adjust assessments annually and enforce timely payments to prevent delinquencies.

Cost-Effective Vendors—Obtain competitive bids for services and invest in preventive maintenance to avoid costly repairs.

Engage and Educate Homeowners—Communicate regularly about the association’s financial status and offer financial education related to the association. Consider having your auditor present annually at the annual meeting.

Professional Management—Hire experienced managers, provide ongoing training for board members, and seek out industry best practices.

Camille Moore is a creative content writer for RealManage. For more information email camille.moore@ realmanage.com or visit www.realmanage.com.

MITIGATING FINANCIAL RISK: RESERVE STUDIES, LENDING, AND INSURANCE

By Matt Kuisle

Traditionally used as an internal planning tool, reserve studies are increasingly capturing the external attention of lenders and insurers. Neglecting to conduct or follow a reserve study can have significant financial repercussions as associations that fail to adequately budget for necessary repairs and maintenance often face costly surprises down the line.

Lenders have begun scrutinizing structural integrity and requiring greater transparency from associations. Recently Fannie Mae and Freddie Mac released a list of

blacklisted properties that are ineligible for lending due in part to structural issues, deferred maintenance, and failure to conduct reserve studies and fund reserves properly.

Insurance companies are also utilizing reserve studies when assessing risk and gauging the association’s ability to cover potential claims without resorting to special assessments or loans.

The growing focus on reserve studies reflects a broader shift toward risk management and financial diligence. Boards and managers must adapt by prioritizing proactive maintenance and budgeting practices through conducting regular reserve studies.

Matt Kuisle, PE, PRA, RS is regional executive director with Reserve Advisors. For more information, call 813-536-7201, email matt@reserveadvisors.com, or visit reserveadvisors.com.

BUDGET FOR CHUTE REPLACEMENT

By Joanna Ribner

Trash chute maintenance and replacement is a relatively new area of concern, but chutes do have a life expectancy. Most budgets do not have chute replacement in their reserves, but they should. The cost of replacing a chute, or part of a chute, averages $8,500 per floor when you add in permits and fire sprinklers! In taller buildings this adds up quickly!

Florida’s humid, salty air escalates metal erosion, reducing the life of your chute. Annual maintenance certainly helps to extend it, but rust and age will win out. Annual inspections can monitor rust areas and tears, so we can put an association on notice that the chute has one or two years left. The last thing you want is a chute collapsing and having to be closed down for months while permits are obtained and a replacement is fabricated—on top of not having a plan for the expense!

Joanna Ribner is president of Southern Chute. For more information call 954-475-9191 or visit www.SouthernChute.com or www.TrashChuteParts.com.

fulfill its fiduciary duty. Don’t let insurers or vendors control the process as this can lead to disputes and delays.

Instead take the following steps:

1. Assign a point person or subcommittee to manage all aspects of the claim. This ensures organized communication and prudent decision making.

2. Don’t be in a hurry to fix everything, but do mitigate any further damage. Get multiple quotes, communicate with your insurer(s), and ask lots of questions. Document everything and leave nothing to misinterpretation.

GET YOUR INSURANCE CLAIM OFF TO A GOOD START

By Rick P. Tutwiler, CPIA, PCLS

After a major property loss, your association should take charge of the insurance claim process to

3. Associations seeking expert claim handling have the option of hiring a public adjuster experienced in association losses. Licensed adjusters have expertise in policy interpretation, claim presentation, and negotiation. This takes the burden off your board to self-educate and ensures the claim submission aligns with the policy contract.

By taking these steps, your association can protect its interests, ensure a smoother claims process, avoid costly mistakes, and return to normal operations faster. Remember, your association’s financial well-being depends on a successful claim resolution.

Rick Tutwiler, CPIA, PCLS, is president and CEO of Tutwiler & Associates Public Adjusters. For more information, call 800-321-4488 or visit publicadjuster.com.

Photo by iStockphoto.com/nathaphat

Devin & Associates

360 Central Avenue, Suite 800 Saint Petersburg, Florida 33701

727-290-2578

jjaram@devinandco.com devinandco.com

Cogent Bank

407-545-2662

www.cogentbank.com

Moving You Forward

Popular Association Banking 7920 Miami Lakes Drive W. Miami Lakes, Florida 33016 800-233-7164

www.popularassociation banking.com Serving the community association industry exclusively.

5830 142nd Avenue N. Clearwater, FL 33760 888-722-6669 www.Truist.com/ AssociationServices

INSURANCE VALUATIONS

Expert Reserve Services Inc.

433 Silver Beach Ave., Suite 104 Daytona Beach, FL 32118

866-480-8236

www.expertreserveservices.com Covering Florida's Insurance Valuation Needs

PUBLIC CLAIMS INSURANCE ADJUSTERS

Five Star Claims Adjusting 2950 W. Cypress Creek Road, Suite 125 Fort Lauderdale, Florida 33309

Herbie Wiles Insurance Agency

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Avoiding Financial Frustration in Communities: How to Prevent Common Mistakes

BY LISA ELKAN

Community management companies and their local community boards are known for working together to create exceptional residential experiences. From maintaining landscaping and amenities to ensuring critical repairs and undertaking capital projects, there is a significant onus on them to not only ensure that resident assessments are well managed but also to ensure the communities are ready to weather any storm.

An association’s finances provide a snapshot into its health, its ability to rise and meet challenges, and ultimately its ability to function to its full—and often legal—potential. Unfortunately, there are

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instances where the financial health of the communities may be at risk or compromised. Among the most common best practices to avoid financial frustrations are the following:

ADEQUATE BOOKKEEPING

Keeping an accurate record of financial transactions is a critical component of successfully managing a healthy community association. Not only does it help leadership keep an eye on cash flow, but it also determines where the money is being spent. Accurate bookkeeping also prevents fraudulent activity among individuals who may have access to the community’s funds. Similarly, property managers compare what they budgeted for expenses with actual expenses, which will allow a better understanding of the impact on the association’s bottom line. In the same vein, identifying potential issues with homeowners defaulting on payments and working with those homeowners will help prevent a shortage of operating funds.

LISA ELKAN, VICE PRESIDENT, GREATER SOUTH FLORIDA REGION, ALLIANCE ASSOCIATION BANK

Lisa Elkan is a vice president for the Greater South Florida Region and joined Alliance Association Bank (AAB) in 2013. With a diverse background in banking, she offers the insight and industry experience relied upon by AAB for homeowner associations, condominium associations, and cooperatives.

She began her banking career while still in college, working as a teller during her summers as a student at Iowa State University. After earning a B.B.A. in finance, she moved to South Florida, taking an auditor position with a commercial bank. Her work and interest in the bank’s investment and mortgages division would lead her to become a mortgage-backed securities trader for a capital markets firm.

For more information, call 561-212-2091 or email lelkan@allianceassociationbank.com.

BUDGETING REALISTICALLY

Repairs may be expensive, especially as costs continue to increase. Realistic budgeting that takes into consideration price increases in labor, equipment, and other resources is critical to ensuring that anticipated expenses can be covered with the cash an association has on hand or can anticipate borrowing to make improvements to the community. Inaccurate budgeting, which most often occurs by simply copying past years’ budgets without looking into increases, may lead the way to a shortage of funds, special assessments, and other charges that are passed on to the residents. Good practices include cushioning projected expenses by three to five percent to ensure any unexpected hiccups along the way are handled. It’s also a good idea to itemize expenses. This will allow managers to identify exactly where money has been spent.

CONDUCT A PROFESSIONAL RESERVE STUDY

Like financial reports that analyze the current state of the association, the reserve fund is an important tool to offset major repairs or maintenance

in the future or to cover unanticipated expenses. Like the operating fund, the cash in the reserve fund comes directly from member assessments. It’s vital to conduct a reserve study to take stock of the condition of the community and anticipate the cost and timing of a potential repair or replacement. The study will also take a critical look at the community’s revenue, expenses, and reserve fund balance, which gives boards and property managers the chance to adjust as needed. Otherwise an underfunded reserve fund may obstruct major needed improvements to the property and may result in higher or special assessments to allow work to move forward. A flush reserve fund can also provide associations with the leverage needed to secure a low interest rate loan that may be paid back over time.

REFRAIN FROM CUTTING CORNERS TO CUT COSTS

As prices increase and labor rates spiral, cutting costs is at the top of everyone’s list, and community associations aren’t exempt. While it may seem like taking the

least expensive bid is the most sensible budget-conscious decision, it may result in undertaking a more costly endeavor. Unqualified vendors, lower-grade materials, and rushed timelines may spell disaster for the bottom line as repairs or replacements then need to be undertaken again in months versus years. In everything it does, an association’s goals are to protect, maintain, and enhance the community.

HAVE A TEAM OF EXPERTS

Sometimes community associations rely on the skills of board members, volunteers, and others to help with important functions from accounting and legal issues to community management and more. Unfortunately, a lot may slip through the cracks without hiring dedicated resources to help with the heavy lifting. While it may be less expensive to tap into willing volunteers, being equipped with a team of professionals from the legal, financial, accounting, and community management areas allows them to be laser-focused on the best possible outcomes for the associations. An attorney with association industry experience may speak knowledgeably and offer important counsel when dealing with challenging situations.

PROVIDE BOARD MEMBER EDUCATION—ROLES AND RESPONSIBILITIES

Having a board of directors is a crucial component for the oversight of the communities; however, many times board members do not have a clear understanding, and associated wherewithal, to operate successfully as part of the body. Arming and educating each board member with the background and expectations of the community will help them better understand their roles and responsibilities as board members and how best to fulfill them. A board’s governing documents typically lay out who can and cannot serve on the board as well as the qualifications of each individual who serves.

An association is tasked with making big decisions for the health (and wealth) of its community. Understanding where common pitfalls lie may help them avoid costly mistakes and frustrations. n

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SIRS Deadline Approaches

BY SUNDEEP

JAY, RS, PRA

Many condominiums are now rushing to complete their SIRS report. The deadline for completing the SIRS report for residential condominium buildings that are three stories in height or taller is December 31, 2024. Though many condominiums might not have this completed by the end of this year, I recommend at least preparing for the information that will be required by your reserve study provider to help expedite the completion of this report.

First, you should provide a copy of any engineering inspection reports completed on your building in the last one to five years. Other items of importance that should be provided to your reserve analyst are contracts for roof replacements, painting, fire system updates, electrical updates, and plumbing updates. If your association is planning on future projects, such as roofing or painting, then these proposals should also be made available for the preparation

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THE SIRS REPORT TAKES APPROXIMATELY 10 TO 30 BUSINESS DAYS TO COMPLETE. THE MORE INFORMATION AVAILABLE FOR YOUR BUILDING(S), THE QUICKER THE RESERVE PROVIDER CAN COMPLETE YOUR REPORT(S). MOST RESERVE COMPANIES ARE BOOKING UP FAST AND ARE LIMITED IN TIME WITH THE CURRENT WORKLOAD THAT HAS BEEN CREATED BY THE NEW RESERVE STUDY LAWS PUT OUT BY THE STATE OF FLORIDA. THERE IS A BETTER CHANCE OF GETTING AN APPOINTMENT IF YOUR ASSOCIATION IS PREPARED WITH THE REQUIRED DOCUMENTATION.

SUNDEEP JAY, SENIOR RESERVE SPECIALIST AND PROFESSIONAL RESERVE ANALYST, J.R. FRAZER INC.

Sundeep Jay is certified as a senior reserve specialist and professional reserve analyst. He has been completing reserve studies and condominium/HOA property & flood valuation reports for a little more than eight years with J. R. Frazer Inc. He graduated with a degree in accounting and computer science from the University of Central Florida. During his career he assisted in building more than 70 to 80 residential homes as a real estate broker while also operating his own mortgage company as well as managing three franchise hotels. For more information, call 561-488-3012, email JRFrazerENT@aol.com, or visit www.JRfrazer.com

of your reserve study. Whether you store your capital expenditure items electronically and/or in a hard file, these items should be forwarded to your reserve provider prior to their on-site visit of your association. This way they can analyze these documents and contracts for a better understanding of your property before arriving at your condominium/co-op.

The SIRS report takes approximately 10 to 30 business days to complete. The more information available for your building(s), the quicker the reserve provider can complete your report(s). Most reserve companies are booking up fast and are limited in time with the current workload that has been created by the new reserve study laws put out by the State of Florida. There is a better chance of getting an appointment if your association is prepared with the required documentation.

Many clients have expressed their concerns over the figures that are being produced by the SIRS and non-SIRS items on these reserve studies. If you are using the pooled method, then your existing funds are now being split between two reports. Since many of the reports are producing deficit funding amounts, the splitting of the existing funds will create a larger deficit funding amount on your reserve studies. Even if you are using the straight-line method and previously your association did not include items such as plumbing, electrical, and/or doors/windows, this will also create larger deficit funding numbers for these categories, depending upon the remaining life for these specific assets. It is important to acknowledge that the State of Florida did not only instigate these new laws due to the building collapse in Surfside but also because the buildings in Florida are starting to age. Aging buildings will require updates. These updates will require reserve funding. It is only fair that individuals currently living in these buildings pay their fair share of these costs. Otherwise new buyers will have to pay for these costs to help maintain and update the building structure and safety components.

Though it may be acceptable not to update a building’s electrical and or plumbing systems in your own personal home, this is not the case where condominiums are involved. The board has a fiduciary responsibility to maintain and update the building on a periodic basis. Some items may have a life of 10 years while other component items may have a useful life of 45 to 60 years. Just because an elevator may be functioning in its 35th year does

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not mean that the elevator is acceptable and should not be modernized. If the first set of owners had an elevator that functioned properly for the first 20 years, the owners after this period should receive something similar. I have talked to unit owners who are scared to use their elevator and only send their groceries up the elevator while they walk up the three stories to their unit. Most times, items are not updated due to the fact that monies are not available in their reserve funds, and board members do not want to have a special assessment.

Electrical systems are another example where funding will be required by condominium buildings as their building ages. As stated above, even though the electrical system is working and passing inspections, that does not necessarily mean that the electrical and disconnect panels do not have to be replaced. This is one of the component items that is prone to fire and can lead to death. Most electrical systems are warrantied for 15 years but may work well up to another 25 to 45 years. It is important to take a serious look at your electrical system and make changes accordingly to avoid fires that could potentially lead to the deaths of unit owners. These are the concerns our legislatures have, and they know that if monies are available, these changes will occur—otherwise, projects will be neglected and or overlooked.

To further reiterate the above information, reserve funding is an integral part of an association’s budget. The new condominium laws will help provide the proper funds to board members to make the correct decisions on important projects that would have typically been overlooked in the past. n

Bank Safety and Your Association Funds

BY KATHY NAUGHTON, CMCA, AMS

W

hile the state of Florida has not seen any recent bank failures, the past two years have shown us concerning examples of bank failures across the United States. According to FDIC reports, in 2023 we saw five bank failures, including three of the largest bank failures in U.S. history: First Republic, Signature Bank, and Silicon Valley bank. To date in 2024, the FDIC reports one bank failure: Republic First Bank out of Philadelphia, PA.

How can association board members determine if their bank is considered safe and in good financial condition? Anyone can go to the FFIEC (Federal Financial Institutions Examination Council) website ( ffiec.gov ) and access data submitted by banks. The FFIEC site reports publicly available reports of condition and income (call reports) and Uniform Bank Performance Reports (UBPRs) for most FDICinsured banking institutions. The bank’s financial information is accessible, including deposits per branch, loans, nonperforming loans, written-off loans, and the bank’s loan loss reserve. The problem with these reports is that the data, available as presented, can be very technical and difficult to interpret.

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The banks are rated by bank supervisory authorities using an international rating system known as CAMELS. These ratings are comprised of data relating to six factors represented by the acronym: capital adequacy, asset quality, management, earnings, liquidity, and sensitivity. These CAMELS ratings are confidential, so the banks are not allowed to discuss these reports without written approval of the appropriate banking regulator under penalty of law.

Since this information is not publicly available, several private companies review all of the call reports and provide their own rating systems. Many of these ratings services provide the basic information free of charge, but there is typically a fee for a more detailed financial report. The information from the call reports and UBPRs is presented in a format that is more easily interpreted by the information seeker. They do not rely on information received from interviews with bank management but independently vet call reports and UBPRs filed. These private ratings companies are a great way to research banks before deciding on where to place association deposits.

There are several private companies that offer bank ratings, but one of the most consulted of the companies is Bauer Financial, which gives a free rating but charges fees for more detailed reports. Their ratings are updated quarterly and are typically published about six weeks after the end of a quarter.

Since Bauer Financial is the most widely consulting rating company (bauerfinancial.com),

YOUR ASSOCIATION CAN CONSIDER A BANK “SAFER” WITH A THREE STAR OR HIGHER BAUER RATING, BUT THERE ARE BANKS THAT SPECIALIZE IN ASSOCIATIONS THAT CARRY FIVESTAR RATINGS FROM BAUER. BEST PRACTICE DICTATES THE BOARD INVESTIGATE THEIR BANK AND CONSIDER KEEPING DEPOSITS AT $250,000 OR LESS TO ENSURE FDIC COVERAGE UNLESS THE BANK PROVIDES PRODUCTS THAT CAN INSURE FUNDS OVER AND ABOVE THE CURRENT FDIC LIMIT.

KATHY NAUGHTON, VICE PRESIDENT OF ASSOCIATION BANKING, CENTENNIAL BANK

Kathy Naughton is a vice president of the association banking group for Centennial Bank. Kathy has over 16 years in the property management industry, with experience as a portfolio property manager, board member, and banking professional. She is very active with CAI, having served multiple terms on the board of the Southeast Florida chapter and filled one term on the board of the Gold Coast chapter. She also holds both her Certified Manager of Community Associations (CMCA) designation and her Association Management Specialist (AMS) designation. For more information visit www.my100bank.com

Four Stars—Excellent. These institutions are also on Bauer Financial’ s Recommended Report.

Three and ½ Stars—Good Three Stars—Adequate Two Stars—Problematic One Star—Troubled Zero Stars—Bauer’s lowest rating.

Your association can consider a bank “safer” with a three star or higher Bauer Rating, but there are banks that specialize in associations that carry five-star ratings from Bauer. Best practice dictates the board investigate their bank and consider keeping deposits at $250,000 or less to ensure FDIC coverage unless the bank provides products that can insure funds over and above the current FDIC limit.

Many community associations will have accumulated fund amounts greater than $250,000, especially with the new SIRS requirements for reserve funding put it place in the state of Florida for many condominiums. Having uninsured deposits over $250,000 in any one bank could be considered risky without proper bank products in place to insure the funds. You will find that many banks do not have an association banking department and may not offer products for additional FDIC insurance to associations. Talk to your banker about what products they offer to ensure FDIC protection.

the following is what their star ratings mean:

Five Stars—Superior. These institutions are on Bauer Financial’ s Recommended Report.

Many banks that specialize in community associations offer both Certificate of Deposit Account Registry Service (CDARS) and Insured Cash Sweeps (ICS). These products provide FDIC insurance on deposits greater than $250,000 by spreading funds between the custodian bank and other partner banks who participate in the IntraFi network. These accounts earn interest while maximizing protection for funds beyond the typical FDIC limit. The CDARS products have limited time frames of investment, typically 13, 26, 52, and 104 weeks. There would be a penalty imposed for early withdrawal, and they do require periodic board consideration on whether to renew the investment. The ICS product is typically attached to an existing association bank account and always offers complete liquidity and accessibility through automated sweep capability. Rates will vary by institution, so consult with your banker and be safe out there! n

Ruth Anglickis, PD / CEO

“We

Budgeting for Your 2025 Condominium Association Insurance Renewal

BY STAR HEBIG, CRM, CIC, CRCMP, CASP, BSF, CAM

One of the essential responsibilities a board carries is to make sure their association is adequately insured and properly covered to protect against various risks, losses, and liabilities. Managing insurance renewals effectively involves strategic budget planning with a trusted agent who can help forecast premiums. With over 35 years’ experience insuring associations in Florida, I have seen this insurance premium cycle many times. The industry goes years without any major wind event, and premiums remain stable and may even decrease, so there are many insurers competing to write your association insurance at a reasonable rate. Then a couple of hurricanes barrage Florida resulting in limited carriers, tighter underwriting guidelines and skyrocketing premiums; and in some cases, Citizens becomes the only option. Condominium associations in Florida must navigate a complex landscape of

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insurance challenges shaped by environmental risks, regulatory requirements, and limited carriers to provide coverage. The primary considerations affecting rates include age and condition of buildings—particularly the roof, the geographical location of the condominiums, proximity to coastal areas prone to hurricanes and tropical storms, combined with the coverage limits and deductibles chosen by the association—that all play crucial roles in determining insurance costs. Changes in the underwriting guidelines for Fannie Mae and Freddie Mac mortgages, capped the maximum wind deductible in Florida at five percent, which added to the already unprecedented high rates.

UNDERSTANDING THE IMPORTANCE OF PROPER INSURANCE COVERAGE

Insurance for condominium associations typically covers common areas, structures, liability protection, and potentially other specialized coverages depending on the association’s specific needs. The goal is to mitigate financial risks associated with property damage, legal liabilities, and other unforeseen circumstances that could impact the association and its residents. Be sure to carefully review policy exclusions and coverage limits so there are no surprises when filing a claim. Understanding what is and isn’t covered prevents gaps in coverage that could leave the association vulnerable.

1. Identifying Key Insurance Types

• Property Insurance— Covers physical structures and common area amenities against risks

STAR HERBIG, CRM, CAM, CIC, CRCMP, CASP, BSP, PRESIDENT, FCA INSURANCE

Star’s entire professional career has been dedicated to the insurance field. With a bachelor of science degree in business finance and a lifetime in the insurance arena, Star is recognized as a highly ethical professional with unmatched experience and skill at customizing insurance plans for inland and coastal associations. Her concentration on insuring associations has made her an expert in the complexities of insuring condominium and homeowner associations. She has earned the prestigious Certified Risk Manager (CRM) designation, which only a few obtain. In addition, she has earned the professional certification of Community Association Service Provider (CASP) and is a statecertified community association manager (CAM) continuing education trainer. Star loves educating boards, property managers, and residents and helping them understand insurance needs. For more information, call 407-920-1116 or email Star@CallFCA.com.

like fire, lightning, windstorms, hurricanes, collapse, vandalism, and natural disasters.

• Liability Insurance—Protects against lawsuits for injuries or damages that occur on the common property.

• Directors and Officers (D&O) Insurance—Provides coverage for board members against claims related to their decisions and actions on behalf of the association.

• Fidelity Bond Insurance (Crime)—Protects against theft of association funds.

• Flood Insurance—Essential in all of Florida since property policies exclude flood damage and wave action.

• Umbrella Coverage—Provides an additional limit of liability coverage if your primary coverage is exhausted. Additional coverage may also be extended to the D&O policy.

2. Assessing Coverage Needs Annually—Condominium associations should conduct a thorough assessment of their insurance coverage annually and when major changes occur (e.g., renovations, additions, policy changes). This includes reviewing your building values. Every association is required by Florida Statute 718.11 to obtain an insurance replacement appraisal every 36 months. The insurance carriers use these values as a guideline to determine the amount of insurance an association needs. These appraisals should be carefully reviewed to identify any errors, such as square footage, incorrect building construction, or roof age. Any error in the appraisal can have a major impact on the appraised value, which in turn impacts the insured value and premiums. Property insurance values are based on the appraised value, so it needs to be accurate.

3. Review Past Claims and Risks—Analyzing the association’s past insurance claims helps identify recurrent events. Carriers look at frequency and severity when determining eligibility and insurance rates. Proactively reviewing losses and putting a plan

in place to mitigate future losses can be very instrumental in rate determination.

4. Budget for Premium Increases—Insurance premiums can fluctuate due to various factors such as claims history, market conditions, and property valuation changes. Associations should discuss with their agent the anticipated potential rate increase based on their unique details.

5. Communicate with Residents—Keeping residents informed about insurance coverage, including who covers what, fosters transparency and ensures they understand their own responsibilities for personal insurance. Have your agent host an educational seminar for the residents to explain the association’s responsibilities vs the owner’s responsibilities and address questions before a claim arises.

Properly budgeting for insurance renewals and ensuring adequate coverage and appropriate limits are critical aspects of managing a condominium association’s budget. By understanding insurance needs, budgeting effectively, and regularly reviewing policies, association boards can protect their association property and provide peace of mind to residents. Working with an agent who specializes in association insurance will keep you informed about industry trends, regulatory changes, and tips and tricks to help you navigate Florida’s insurance challenges successfully. n

ELEVATOR COMMUNICATIONS MUST NOW INCLUDE:

 Two-way messaging for hearing and/or speech imparied

 Video capability

 Display message to indicate help is onsite

*Enforced upon new construction or modernization

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Keeping Your Association Protected against Fraud

BY JULIE CELOZZI

In my more than 30 years of experience in banking and finance, I’ve learned that no individual or entity is completely immune to fraud, including community associations. However, association board members can take the necessary precautions to maximize financial security on their own and with guidance from an experienced financial institution. At Cogent Bank this is one of our top priorities. See our

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tips for proactive steps you can take today to keep your association and its members safe from potential fraud.

ACH POSITIVE PAY

ACH Positive Pay is a great defense against potential fraud. When you sign up for ACH positive pay service, you can establish a list of approved vendors for your association— typically including anyone you send regular payments to—and establish filters, including expiration dates and payment caps to further secure your finances. The approved vendors who meet the criteria you established with your filters are cleared through positive pay to receive automatic payments. This will ultimately help streamline your association’s payments and maximize its financial security.

Cogent Bank is a state-chartered bank that has operated as a full-service business and personal bank since 2001. Cogent offers multiple banking centers in North, Central, and Southwest Florida that specialize in a wide array of traditional and nontraditional industries, including association banking, sports and entertainment banking, and non-profit banking, among several others. Cogent believes banking is personal and requires high-touch, innovative services designed to make managing financial transactions easier. To learn more, visit www.cogentbank.com.

SECONDARY STATEMENTS

Secondary statements are a unique way some banks, including Cogent Bank, can help you keep track of your finances and monitor potential fraud. A secondary statement is a monthly report you receive from your bank that you can use to cross reference with your association’s internal records. Any discrepancies you see may be an indicator of fraudulent activity, giving you a direct alert.

ACCESSIBILITY TO YOUR BANK

Financial experts witness fraud daily and are equipped with the knowledge and resources necessary to help prevent it before it happens. That’s why it’s so important to find a bank for your association that is easy to reach at any given time. Trust, transparency, and accessibility are essential in any banking relationship. Cogent Bank understands there is no one-size-fits-all

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solution to proper financial services, which is why we ensure that every client is given a hands-on, customized service catered to each of their unique needs. Not only is direct accessibility important, but also working with a community bank with local expertise and deep roots in the communities you mutually serve can be a bonus.

WORKING WITH EXPERTS

A financial institution that specializes in association banking, like our team at Cogent Bank, is an invaluable resource to help benefit and protect your association. Bankers with specialized training and experience working with associations can speak directly to the challenges and opportunities you face daily. Working with bankers with specialized expertise can allow them to audit your internal processes and identify opportunities to better secure your finances.

SKIP THE MAILBOX

The most common and simple way I’ve seen associations experience fraud is through their mailboxes. For ease, association boards often send and receive payments through a check in their mail, which compromises their financial security. It is all too easy for someone to intercept someone’s payments by stealing the checks from their mailbox, “washing” them, and depositing them in their own bank accounts. To avoid this, we always recommend bringing any outgoing mail directly to the post office to ensure your association’s safety.

STAY UP-TO-DATE

It’s essential to always keep your information up-to-date in accor-

dance with the State. The Florida Department of State’s Division of Corporations— commonly referred to as Sunbiz—contains a database of your association’s records. Fraudsters will access this data and alter it to their own benefit. Routinely keeping your information updated and accurate will help deter any fraudulent activity and protect your association’s finances. At Cogent Bank we understand what it means to be a true financial partner who puts your needs first. We provide personal connections with direct access to a full team, ensuring we are always available for immediate assistance. Our entrepreneurial spirit makes us adaptive and agile as we continue to grow to meet the needs of the markets we serve. n

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Your Pool Can’t Wait to Talk to You!

BY ALVARO G. MENDOZA

D

o you remember what you were doing in 1991–92? Some commercial pool owners and their service providers remember the humble beginnings of what is now one of the hottest trends in aquatics—remote monitoring and control of pool equipment. Remote monitoring is a simple concept in which a facility connects its pool equipment room to the outside world, allowing true two-way communication between equipment and operators/managers. It is not new as mentioned above, but it is truly a technology that has become better with age, one that has come of age as the world becomes more complex, and one that can help condominiums through the long, hot summer season. Why has getting connected to your equipment room become important? There are several reasons.

First is the increased pressure on facilities to maintain safe and irritant-free pool water. This ranges from the prevention of chemical spills or accidents to the protection of patrons from cryptosporidium, legionella, and other well-known diseases, that are more prevalent during the hot weather and are a byproduct of improper chlorination.

Next is the pressure to operate code-compliant facilities. No matter how exclusive your development or how many security checkpoints one must clear to enter the property, you operate a public pool in the eyes of the law. As such the facility must comply with strict state and national codes regarding water chemistry, flow, and filtration. The tolerance between too much and too few chemicals in the water can be a few parts per million, or the equivalent of a few inches in 17 miles. The typical facility is required to check its chemical levels manually at least once a day, but then what happens to the chemical levels from visit to visit can vary wildly depending on bather load, weather, and chemical feed rates.

Third is that the availability of on-site pool experts is diminishing. It is getting tougher and tougher to hire and retain pool chemistry experts. Leading companies can train and certify your existing maintenance team to handle your in-house chemical program, or you can hire an outside service provider, but there are well-documented deficiencies in both strategies. Left unchecked, this problem can expose the facility to severe liability.

All it takes to get connected is some affordable equipment and connection to an existing “open” Wi-Fi network or cellular modem that provides a Wi-Fi signal. The benefits are substantial.

There are four major effects of

ALVARO G. MENDOZA, CEO, AQUAFINITY, COMMERCIAL ENERGY SPECIALISTS (CES)

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remote monitoring, control, and communications on the quality of the facility:

• Remote monitoring, optimally in real-time, from a wide variety of mobile devices

• Full two-way remote control of any connected device (pumps, filters, heaters, chlorinators, and water fill)

• Digital log keeping down to one-minute increments, with the ability to easily review and store logs for up to five years

• Escalating alert notification of any out-of-range parameter until the issue is resolved.

Getting one or two of these is nice, but the real goal is to achieve all of them. Only then is the facility fully protected against accidents and liability.

While remote control has been around since 1992, it did not become a full solution until 2006 when a leading manufacturer came out with a new line of interactive chemistry controllers. The ability to communicate took a quantum leap. At that time many hundreds of customers got connected and started monitoring their own facilities; and monitoring programs expanded exponentially, providing monitoring, remote control, and “cyberservice.”

A few years later major innovations were developed, including phone apps that allowed customers to be in constant contact with their pools on property, across town, and around the world from their ever-present handheld devices.

Even a few years after that advance gigabit speed and proprietary connection protocols were introduced, which provided much desired layers of security for connections and data (requested by some, but absolutely required by the most discerning public or military facilities). Extensive one-year on-board data storage was added, as were tremendously simplified ways for controllers to connect to any local open network, whether wired or wireless. There are other simple communication solutions for facilities where the IT department completely locks down all internet traffic.

What can you accomplish when you’re connected? Here are just a few of the most popular benefits reported by condominiums around the U.S.

• Receive an alert when chemical levels are out of range, thus preventing the spread of disease and their associated legal challenges.

• Receive proof of all major parameters via 24/7/365 logs, thus protecting the facility from frivolous liability claims.

• Monitor and control your pool filters and get alerted when the strainers

need cleaning or the filters need to be backwashed.

• Receive alerts when a pool has developed a leak or is using too much water. The alternative is to receive a water bill much later and pay whatever ridiculous amount is requested.

• Monitor and control your pool pump remotely, saving energy and assuring the proper coderequired flow rates are being maintained, while receiving alerts when they’re not.

• Monitor and control pool temperatures at target levels, preventing complaints and issues while maintaining control over runaway heating expenditures.

• Monitor and control energy consumption of all equipment and receive alerts of budgetbusting energy costs.

Today it is simple to have the advantages of the four major benefits of aquatic remote control and communications mentioned above, complete with proactive reports delivered to you on a schedule including graphs on all parameters, controller calibrations, test kit readings, and more... wow!

What started out as a nice “feature” for a few customers to assure high standards at their facilities has transformed into a “musthave” industry requirement to be able to handle the crazy pace of today’s litigious society. Leadingedge condominium management companies and service providers are implementing communication control systems into their service strategy and are streamlining service and optimizing their efforts to provide the best customer service and patron satisfaction, with the least amount of manpower.

We’d like to say we’ve finally arrived at the end, but many are already working on the next step. Jump on board... “Your Pool Can’t Wait to Talk to You.” n

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Streamlining Association Accounting: Using Technology to Your Advantage

BY RODRIGO CONTRERAS

The landscape of community association accounting is evolving rapidly, and with it comes the need for more efficient, transparent, and streamlined accounting operations. For association boards, embracing a modern approach to accounting is no longer an option but a necessity. Practical technological enhancements, such as implementing an online owner’s portal, digitizing accounts payable, and creating a digital filing cabinet, are worthy investments that can profoundly improve accounting operations for associations. Although

Photo by iStockphoto.com/Pinkypills

implementation can seem daunting, considering key factors for integrating these technologies increases the likelihood of a smooth transition and lasting benefits.

PRACTICAL TECHNOLOGICAL ENHANCEMENTS

Effective technological enhancements should increase efficiency, transparency, and overall satisfaction in association accounting operations. In this context, these three key upgrades stand out for their significant potential to achieve these objectives.

1. Owners’ Portal: Enhancing Efficiency and Transparency

If your association has 150 units or more, Florida Statutes mandate a secure, owner-only

RODRIGO CONTRERAS, COFOUNDER AND CHIEF OPERATIONS OFFICER, THE ERRO GROUP

Rodrigo Contreras is a cofounder and chief operations officer for The ERRO Group. For more information call 786-767-2111, email ro@theerrogroup.com or info@theerrogroup.com, or visit www.theerrogroup.com

accessible website or portal. Starting January 1, 2026, this requirement will also apply to associations with 100 units or more. So why not turn this obligation into an opportunity to enhance accounts receivables efficiency and boost transaction transparency?

An easy-to-understand and user-friendly owners’ portal can greatly enhance the efficiency of managing accounts receivables. A portal that enables owners to make monthly maintenance and special assessment payments online using their preferred method—debit card, credit card, or bank account—and offers options for partial payments, one-time payments, or automatic enrollment is invaluable. This not only streamlines the collection of monthly maintenance fees but also has the potential to reduce delinquency rates by providing convenient and flexible payment options.

The ability for owners to view their account ledgers at their

Continued on page 80

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Continued from page 77

convenience enhances transparency and trust, making the owners’ portal an even more valuable resource for both owners and the association. Transparency is a key benefit here. When owners can easily access and understand their financial obligations and payment histories, confusion is minimized, and the number of inquiries to the management office decreases. This digital transparency fosters trust and ensures that owners are well informed about their financial standings, reducing disputes and enhancing overall satisfaction.

While an owners’ portal may seem like a minor enhancement, accounts receivables play a crucial role in establishing trust between owners and the association.

Errors in accounts receivables processing or poor access to account ledgers can erode owners’ trust. Streamlining accounts receivables with an owners’ portal is a cost-effective way to create a solid foundation of trust, ensuring transparency, reducing errors, and enhancing overall satisfaction.

2. Digitized Accounts Payable and Vendor Management: Speeding Up Processes

The importance of efficient accounts payable and vendor management systems is often underestimated, yet they are intrinsically linked and vital to association operations. Poor vendor management can disrupt a well-developed accounts payable process and vice versa.

Digitizing the accounts payable process from start to finish can significantly streamline operations. A system that allows for the digital upload of invoices, enabling managers and board members to view, approve, decline, or comment on them from the comfort of their homes, ensures a secure and efficient process. When combined with the ability to process approved payments with digital signatures, the accounts payable workflow becomes even faster.

A well-implemented digital vendor management system can further streamline the accounts payable process by creating profiles for each vendor, complete with a ledger of all received invoices, details of when and by whom they were approved, and comprehensive payment records. The result is a meticulously organized virtual filing cabinet, ensuring all invoices are paid and recorded properly.

These technological upgrades not only speed up the payment process but also create a ledger of payment activity. Fortunately, these two systems often come integrated, eliminating the need to search for separate solutions.

3. Digitized Association Files: A Virtual Filing Cabinet

How does your association store and organize owner files, vendor contracts, and other important documents?

The digitization of association documents goes beyond financial management; it creates a comprehensive virtual filing cabinet for all association records. Properly digitized and meticulously organized documents allow for quick and accurate retrieval of records, from years-old invoices to previous owner records.

This digital transformation reduces the time spent searching for essential documents, enabling accounting and management personnel to address matters swiftly and accurately. Moreover, it ensures that all records are stored securely and can be accessed easily when needed, promoting better governance and accountability within the association.

While this upgrade can significantly enhance the efficiency of your association, it may require considerable time and a substantial software investment, depending on your current procedures. However, if implemented correctly, this upgrade can have the most profound impact on your association’s efficiency.

IMPLEMENTING TECHNOLOGY IN ASSOCIATION ACCOUNTING: KEY CONSIDERATIONS

The aforementioned technological upgrades can be easily achieved through changes in software. However, associations must carefully evaluate their specific needs, the capabilities of their personnel, and current accounting structure before making any changes. A comprehensive assessment ensures that the chosen technological upgrades align with the association’s existing processes and resources, ultimately facilitating a smoother and more effective implementation.

With this in mind, following are the key considerations to address:

1. Conduct a Needs Assessment

Before introducing new software, conduct a thorough needs assessment. Identify the specific pain points in your current accounting operations and determine which solutions can address these issues most effectively. Engaging with board members and owners can provide valuable insights into the areas that require improvement.

2. Consult with Your Association’s Staff

Engage with your association’s staff to gather their insights and understand their technological capabilities. Their firsthand experience and feedback are invaluable in identifying additional pain points and ensuring that the technological upgrades meet the practical needs of day-to-day operations.

3. Consider Your Association’s Accounting Structure

Is your association selfmanaged, or do you outsource accounting, management, or both?

Your current accounting structure significantly impacts the ability to implement new software. Self-managed associations have complete control over their operating procedures, enabling them to make changes based on their needs assessment. In contrast, associations that outsource accounting, management, or both face the challenge of working within the procedures set by their accounting or management firm. However, your accounting or management firm may still be able to facilitate the implementation of your desired technological upgrades. If they are unable to support these changes, you should evaluate the importance of these technological upgrades to your association. It may be necessary to consider a change in firm or structure to achieve these goals.

The rapidly evolving landscape of community association accounting necessitates the adoption of efficient, transparent, and streamlined operations. Implementing practical technological enhancements, such as an online owner’s portal, digitized accounts payable, and a virtual filing cabinet, can significantly improve an association’s accounting processes. However, successful implementation requires a careful assessment of the current accounting structure, specific needs, and staff capabilities. By conducting a thorough needs assessment, consulting with staff, and considering the association’s accounting framework, associations can ensure a smooth transition and lasting benefits, ultimately enhancing operational efficiency and overall satisfaction. n

S Top Five Security Practices for Communities

BY NATHAN VARN

ummertime is often a time for relaxation and taking it easy. But as we head into a new season, don’t let the lazy days of summer distract you from securing your property and home. Home and community security take vigilance and watchful eyes 365 days a year. Bad actors don’t take days off, and when it comes to protecting your home or association, you shouldn’t take time off either.

Ensuring safety and security in all types of communities requires a combination of proactive measures and advanced technology. Remember: keeping a community secure is the responsibility of everyone in the community.

Here are five best practices to consider and better protect your community, your home, and your assets:

Photo courtesy Envera Systems

THOROUGHLY SCAN THE PROPERTY AND LOOK FOR POTENTIAL SECURITY BREACHES AND AREAS NEEDING ATTENTION.

Whether you’re the community association manager or a board member, you should set time aside to regularly walk the property—every inch of it. Do it together if you can! Take a notebook and pen to write down your observations, or note them in an app on your phone. Here are things to look for: broken fence lines, lighting that is out or blinking, motion-sensitive lighting functionality, bushes and shrubs that need trimming, dark places where a person might hide, security camera placement and operations, gates left open or not operating properly, any other barriers that have a security flaw, and adequate lighting for all common

NATHAN VARN, VICE PRESIDENT, ENVERA SYSTEMS

Nathan Varn is the vice president of sales and marketing for Envera Systems. He manages the sales, sales support, marketing, and account management teams while working closely with all of Envera’s departments to provide information, education, and best-in-class service for the communities that Envera secures. Envera Systems is an all-inclusive security provider that focuses on the unique needs of communities through technology-based solutions. Using trained virtual guards, Envera is able to verify visitors at entrances, monitor video, manage community databases, and more. Contact Envera at 855-380-1274 or www.EnveraSystems.com

areas, pathways, and entry points to deter unwanted behavior.

This assessment of your property should happen during the day and again when it’s dark. Your property will look different from day to night, and you’ll notice different areas that need to be addressed.

A simple set of guidelines to keep in mind when reviewing your property and neighborhood are the Crime Prevention Through Environmental Design (CPTED) recommendations. CPTED classifies the three primary categories to regularly evaluate in your community— mechanical, human, and natural. Following these guidelines ensures you address all technological security methods, methods that include humans on-site or remotely monitoring an area, and how landscaping is deterring or enabling criminal activity at your community.

BE SURE TO HAVE THE LATEST TECHNOLOGY INSTALLED IN YOUR COMMUNITY TO PROTECT IT.

Gated or ungated, one pool or three, technology-based security solutions help simplify security for associations. This includes managing access at all entry points, doors, and gates for both residents and visitors to prevent unauthorized individuals from accessing the community or an area. From a management perspective, an advanced access control

system employs a user-friendly interface to easily add or update authorized persons, manage times that an amenity can be accessed, and review analytics and logs should you need to.

Often an effective access management system is combined with the latest in video surveillance systems for proactive monitoring that protects amenities and other assets. It’s this layered technology approach that is key to security coverage across the community that efficiently deters certain behaviors, responds to incidents, and provides evidence to review.

When your community needs to update security technology, make sure to work with an experienced provider who can analyze your association’s specific security concerns and the best options to resolve those issues.

Photo courtesy Envera Systems

Boards of directors should remind residents to carry out the following security practices.

REVIEW THE LIST OF WHO IS ALLOWED ONTO THE PROPERTY.

If you live in a gated community, you should do a review of your visitor list and make sure it is up to date. Remove any permanent guests or vendors who no longer need to regularly visit your property. Update the days and times other visitors are allowed if any of those details have changed. And, make sure your household contact information is current so that your community security provider knows how to reach you regarding unregistered guests at the entrance(s).

Property managers and community staff should also reevaluate the community list of approved guests and vendors. This means updating and/or removing any community vendors that don’t service the association anymore as well as adding those that do.

PREPARE YOUR HOME FOR WHEN YOU PLAN TO BE AWAY.

If you have any last summer trips or upcoming vacations planned, remember that preparation goes beyond packing your suitcase. Here are several items to add to your checklist: Have your mail put on hold if you’re going to be away for a while! You can do this at the local post office or online at www.usps.com. Stop or put on hold everyday deliveries and arrange to have someone pick up any packages that may be delivered while you’re away. Nothing says “no one is home” more than boxes piled up outside your door. Monitor your front door with a camera and watch for unexpected comings and goings. Double check that your windows and doors are locked properly before you leave. And, only tell the necessary contacts when you plan to be away. This also means not posting messages or pictures on social media about your trip until you are safely back home.

All of these tips and more will help protect your property, but don’t forget to offer to help your neighbors when they’re going to be gone for an extended period. Remember that it takes a community, and protecting their property is also protecting yours.

BE VIGILANT.

Promptly report any suspicious activities to the authorities and share relevant information with neighbors and property management. If your community is regularly experiencing trespassing in a specific area or vandalism at an amenity, your community board and manager can work to find a solution that prevents the issue from continuing. And don’t forget to keep a list of emergency contacts, including local police, fire departments, and community security personnel.

By implementing these five security practices, you can enhance the safety in your community and your peace of mind this season and moving forward. Keep in mind, effective community security isn’t something that’s done once; it’s necessary to review, evaluate, and always be aware of around the neighborhood. Keeping this posture and perspective will help you as a homeowner, board member, or community manager to stay prepared and take the best care of the property. n

The Calm Before the Storm:

Implementing 2024 Legislative Changes to Hurricane Protection for Community Associations

BY RICHARD HUNTER AND GEORGE

The Florida legislature has enacted a number of legislative changes in advance of this year’s storm season, which will change how community associations have to prepare for hurricanes.

House Bill 1029 had an effective date of July 1, 2024, and was approved by the governor on April 24, 2024, creating Florida Statute §215.5587 and the My Safe Florida Condominium Pilot Program (MSFCPP) within the Department of

Photo by iStockphoto.com/DawnDamico

ROOT

Financial Services (Department). This program applies to condominiums, and its purpose is to provide hurricane mitigation inspections and hurricane mitigation grants. The legislature will review appropriations annually. This applies to condominiums within 15 miles of the coastline.

The program essentially attempts to extend the tenets of My Safe Florida Home Program (MSFH), which offered matching grants to homeowners for hurricane protection upgrades, to condominiums. An association must get permission from a majority of its board members or a majority of its members in order to apply for an inspection. The threshold for receiving a grant is higher, requiring unanimous consent of all members of the affected structure or building. This is a high

RICHARD HUNTER PRINCIPAL ADJUSTER, HUNTER CLAIMS

Richard Hunter is a principal adjuster with Hunter Claims. If you or the board of your association would like a professional analysis of your coverage or a pre-storm evaluation of your property, call 813-774-7634 or send an email to richard@ hunterclaims.com today.

GEORGE ROOT, ATTORNEY, STOCKHAM LAW GROUP, P.A.

George Root is an attorney in the Tampa office of Stockham Law Group, P.A. He focuses his practice on providing general counsel and litigation services for community associations throughout Florida. His services as general counsel include deed restriction violation enforcement, delinquent assessment collection, compliance, preservation of governing documents, revitalization of governing documents, interpretation of governing documents, risk management, litigation, creditor bankruptcy services, board meeting attendance, board certification courses, and a myriad of other community association legal needs.

threshold that is hopefully lowered in the future as voter apathy alone often prevents unanimous consent votes. A unit owner may not participate in this program individually apart from the association. It appears the approval process requires a vote to take place at a membership meeting, rather than via written consent forms.

The hurricane mitigation inspection must include an inspection

report summarizing what needs to be done to afford greater hurricane protection, a range of estimates for said improvements, and insurance premium discount information correlated to the suggested mitigation improvements. An application for the mitigation grant must contain the president’s signature attesting to having only filed one application made under penalty of perjury, a notarized listing of the licensed contractors the association intends to use, and a notarized commitment to complete the project. The entire project must be complete before the final grant is released. The project must be completed within a year of grant approval, absent an extension of time.

All grants are on a matching basis with the State paying two dollars to every association dollar. MSFCPP limits roof-

related projects to $11 per square foot times the square feet of the replacement roof, limited to $1,000 per unit, and the maximum grant contribution is limited to 50 percent of the project. The limit for opening protection-related projects grant contribution is a maximum of $750 per replacement window, not to exceed $1,500 per unit, and a maximum grant contribution of 50 percent of the project. The bill provides that an association may receive grant funds for both roof-related and opening protection-related projects, but the maximum grant contribution is limited to $175,000 per association.

House Bill 1021 changes the requirements for the installation of hurricane protection in a condominium building. This bill creates a uniform definition for hurricane protection. It also requires governing documents to clearly articulate and allocate the responsibilities of unit owners and associations for the costs of maintenance, repair, and replacement of hurricane protection, exterior doors, windows, and glass apertures.

House Bill 293 requires homeowners’ associations to adopt hurricane protection guidelines which may include the color and style requirements, location requirements, and other installation details. All guidelines regarding hurricane protection systems must comply with the applicable building code. The bill provides that regardless of any other provision in association governing documents, the homeowners’ associations may not deny an application for the installation, enhancement, or replacement of hurricane protection by a parcel owner which conforms to the specifications adopted by the homeowners’ association or committee.

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Examples of hurricane protection systems are roof systems, storm shutters, impactresistant windows and doors, polycarbonate panels, reinforced garage doors, erosion controls, exterior fixed generators, and fuel storage tanks. The bill provides a statement of legislative intent providing that in order to protect the health, safety, and welfare of the people of the state and to ensure uniformity and consistency in the hurricane protection installed by parcel owners, the bill applies to all homeowners’ associations in the state, regardless of when created. Considering that House Bill 1203 seriously curbs an association’s attempts to deny architectural applications if the denial is not tied to a specific covenant, clause rule, or other provision, it is time for most associations to overhaul their architectural guidelines.

Associations should use the next few months to overhaul their architectural guidelines to make sure that they are more specific and that they incorporate all of the hurricane protection measures cited above. Association boards will need to work with general counsel, contractor vendors, managers, and other professionals to make sure that these guidelines are up to date with industry standards and fit the aesthetic design of the community. Considering we are in the midst of hurricane season, there is no time to waste.

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Micromanagers

BY BETSY BARBIEUX, CAM, CFCAM, CMCA

Most of us have encountered a micromanager board member or supervisor. They’re involved in every project, have an opinion about everything, and can always show you a better way to do it. They seem to believe the place will fall apart without them and make themselves available to everyone and anyone via text or email. Always on their phones, they seem to have never established a time boundary for themselves and can’t separate their workday

Photo by iStockphoto.com/Nuthawut Somsuk

from home. The kids have learned not to count on them showing up for ball games. You might be a micromanager if the following apply:

• You are unable to delegate

• You overcommunicate, overexplain instructions, and offer step-by-step details

• You hover, but you try to make it look like you are not hovering

• You constantly schedule meetings

• You ask staff and others to account for every minute of their day

• You don’t allow others to slow down or stop; they must always hustle

• You sign off on all teammates' work

• You are the sole point of contact

Angela Robinson in her 2022 article, “8 Signs of a Micromanager Boss & Ways to Deal With It,” identifies some common behaviors of micromanagers.

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

Betsy Barbieux, CAM, CFCAM, CMCA, guides managers, board members, and service providers in handling daily operations of their communities while dealing with different communication styles, difficult personalities, and conflict. Effective communication and efficient management are her goals. Since 1999 Betsy has educated thousands of managers, directors, and service providers. She is your trainer for life! Betsy is the author of Boardmanship, a columnist in the Florida Community Association Journal, and a former member of the Regulatory Council for Community Association Managers. Subscribe to CAM MattersTM at www.youtube. com/c/cammatters. For more information, contact Betsy@FloridaCAMSchools.com, call 352-326-8365, or visit www.FloridaCAMSchools.com.

1. Does not delegate Instead of delegating, micromanagers will take on or have a hand in all functions. You’ll often hear them say, “See? I have to do everything because my staff never does anything!”

2. Overcommunicates

Communication is usually a good thing, but explaining everything over and over again is frustrating. It also slows down the task if the micromanager keeps checking on you and giving instructions again. Granted the intention may be to be thorough, but it often has the opposite effect.

3. Hovers

Micromanagers are always around. Every time you look up, he happens to be nearby. On days off, the micromanager conveniently leaves an item in the office or stops by just because he is in the area.

4. Calls constant meetings

Constant meetings are a hallmark of micromanagers. But during the meetings, the micromanager does most of the talking while everyone else zones out. The meeting will end with the micromanager asking if there are any questions or suggestions. It doesn’t take long to learn to be silent because the micromanager really did not want suggestions or questions. Instead he wanted total agreement.

5. Asks you to account for every minute of the workday

There are certain professions that do keep track of billable hours, but CAM management and all the support staff tasks are not one of those professions. All it takes is one phone call, and every planned task for the day is scrapped. In the CAM industry, we are more likely to get tasks done by the end of the week, not the day.

6. Demands continual hustle

Micromanagers can’t tolerate people standing around. But, if you remember the DISC different communication styles, these styles also work at different paces. D is fast paced and task oriented. I is fast paced and people oriented. S is slower paced and people oriented. C is slower paced and task oriented. So not everyone works well if forced to hustle.

7. Wants to sign off on every step Reviews and checks and balances are not bad things. In fact, these measures are essential for quality assurance. However, while good managers check-in from time to time, volunteer to give their opinions as needed, and ask to review important or sensitive tasks, micromanagers demand to oversee every piece of work that employees complete.

8. Positions self as sole point of contact

Micromanagers seem to be personally involved in all conversations. They need to be the “go-to” person so much so, they may not permit you to join professional organizations so you can network for problem solving and sharing ideas with other people.

Some micromanagers are oblivious of their overbearing habits. You may be able to share with them an observation about a recent behavior that could spark a conversation.

Others are quite aware of their behavior and are proud of it. Perhaps their behavior is a reaction to others who in the past took advantage of the work freedoms they were permitted. Micromanagers may have trouble distinguishing what level of involvement is helpful and what is excessive. Micromanagers who have anger issues should not be confronted. They could be creating a hostile work environment, and you should talk with their supervisor or seek help from an attorney.

GIVE BENEFICIAL FEEDBACK TO A MICROMANAGER

“I find that I work better when given space to think and experiment. Can you help make this happen?”

“I get performance anxiety,” “I

am more productive when focused for blocks of time,” or “Interruptions often block my creativity.”

“I want to work on being more independent.”

“Are there aspects of my performance that make you feel I need extra supervision?”

“I found this new tool that can keep you updated on my progress.”

“You seem like you have a lot on your plate. You don’t need to check on me so often. I’ll ask for help if I need it.”

DON’T SAY THIS

“Leave me alone, and stop bothering me.”

“Why don’t you do it then?”

“Obviously I can’t do anything right.”

“Everyone complains about your micromanaging.”

“It won’t get done any faster with you nagging me.”

LAST TIP

Remember your boundaries—what is within your control and what is not. The boundaries you control are thoughts, words, actions, attitudes and motives

What you don’t control are the past, the future, the actions of others, the opinions of others, what happens around you, what other people think about you, the outcome of your efforts, and how others take care of themselves. n

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Brian W. Pariser, P.A. 9155 S Dadeland Boulevard, Penthouse 1-Suite 1718 Miami, Florida 33156 305-670-7730

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Air Duct & Dryer Exhaust Cleaning, Mold Testing, Free Inspection 888-707-7763 www.adaflorida.com ALARM MONITORING

ASPHALT REPAIR/ REJUVENATION

Asphalt Restoration Technology: 800-254-4PDC (4732); www.asphaltnews.com.

BALCONY INSPECTIONS

Howard J. Miller, P.E., Inc.: Professional Inspections; Reports; Contract Administration; 561-392-2326.

CLEANING/JANITORIAL SERVICES

ASI American Service Industries: 305-821-3169; asiflorida.com; 50 Years of Professional Janitorial Services!

Promar Building Services LLC: Alfredo Amador; 561-598-4549; info@promarbuilding.com

CONCRETE RESTORATION PROJECT MANAGEMENT

Daniello Companies: 888-370-4333; www.concreterepairing.net.

CONSULTING AND MEDIATION

Lasula Consulting and Mediation: 561-840-9798; sjkcpa@gmail.com; www.mediatorcpa.com

DRAIN & SEWER SERVICES

Zoom Drain: 866-Call-Zoom; dave.guse@zoomdrain.com; www.zoomdrain.com

EDUCATION

ELECTRIC

Hypower Electrical & Utility Contractor 888-978-9300; www. hypowerinc.com

ELEVATOR SERVICE/REPAIRS

Connections Elevator: Elevator maintenance agreements, repairs and modernizations; 954-7921234; www.ConnectionsElevator. com.

ENGINEERS

Chalaire & Associates, Inc.: 561-848-7055; www.chalaire andassociates.com.

Consult Engineering, Inc: 941-206-3000; www.consultengineering.com.

Howard J. Miller, P.E., Inc.: Reports; Contract Administration; 561-392-2326.

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NV5: 954-495-2112; nv5.com

PEGroup Consulting Engineers, Inc.: 800-698-2818; 305-655-1115; www.pegroup.com.

Simpler Engineers: 954-3992075; simplerengineer.com

Swaysland Professional Engineering Consultants (SPEC): 954-473-0043; 888-264-7732. FENCING AND GATES

FIRE ALARM SYSTEMS

Bass United Fire & Security Systems, Inc.: 954-785-7800; www.bassunited.com.

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GENERAL CONTRACTORS

Hartman & Sons Construction, Inc.: 407-699-4549; fax: 407-6990919; Serving Central FL.

GENERATORS

A&A Power Generators: Blue Stream: 954-753-0100; www.mybluestream.com

INTERNET/TELEVISION/ VOICE SERVICES

Blue Stream: 954-753-0100; www.mybluestream.com

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LEAK DETECTION

Aware Buildings: info@awarebuildings.com; www.awarebuildings.com Catch Lots of Leaks! MANAGEMENT SOFTWARE

MILESTONE INSPECTIONS

Milestone Building Solutions: 800-545-5515; info@milestonebldg. com; milestonebldg.com OWNERS' REPRESENTATIVES

CCRS LLC Consultants: 954-320-9665; dave@coastalconstructionind.com; www.coastalconstructionind.com

PAINTING AND WATERPROOFING, ROOFING AND DEMOLITION

Extreme Companies of Florida; 239-800-5260; www.extreme companiesfl.com. Serving Most of Florida, Call for Details. PAINTING AND WATERPROOFING

Promar Building Services LLC: Alfredo Amador; 561-598-4549; info@promarbuilding.com

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JANITORIAL

Mike Douglass Trenchless Technologies: (877) 426-8660; www.pipeliningmd.com

PROPERTY MANAGEMENT

Asterix Software: 866-929-3511; www.asterixsoftware.com

ROOF MANAGEMENT & CONSULTING

Dan Tennis Roofing: 954-4857778; info@dantennisroofing.com; www.dantennisroofing.com

Pecora Corporation: 800-5236688; freemana@pecora.com

Ramco Protective: 888-3989700; www.ramcoprotective.com.

Chute: 954-475-9191; toll free 866-475-9191; fax 954475-9476; www.southernchute.com.

Hinterland Group: 561-6403503; hinterlandgroup.com

DISPLAY ADVERTISERS INDEX

Commercial Painting Solutions for Extreme Florida

Weather Conditions

• Interior Repaint

• Exterior Repaint

• Waterproofing

• Commercial and New Construction Painting

• Tenant Build-Outs

Demolition & Land Clearing Solutions for Extreme Florida Weather Conditions

• Residential

• Commercial • Industrial

• Land Clearing

• Bulk Material Hauling

• Commercial Horticulture Mulching

• DOT Compliant & Insured OT3141193

• Recycling Yard Roofing Solutions for Extreme Florida Weather Conditions

• Residential & Commercial

• Emergency Repairs

• Maintenance Programs

• Shingle Roofs

• Tile Roofs • Metal Roofs • Flat Roofs