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Every community association will experience a significant property damage claim at some point during its lifespan. In addition to windstorms, fires and floods there are the everyday water leaks with which volunteer boards and managers must contend. While it is reasonable to believe that after years of dutifully paying your insurance premiums your damage claims will be paid quickly and in full, the reality is often quite different.
Time-strapped volunteer board members and managers are at a significant disadvantage while trying to shepherd an insurance claim on their own. And the insurance company’s adjuster is not there to help you maximize your claim-in fact, it is the opposite. The insurance company’s adjuster is there to minimize or even deny your claim if possible. Our team intimately knows your business and will fight hard to maximize your insurance payout.
Condominium Budgets, Reserves, and Insurance, Oh My!
Rembaum’s Association Roundup What Managers and Board Members Need to Know About HB 913
Car v. Fence: Will Your Insurance Policy Cover the Damage?
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Journal Notes
It was P.T. Barnum who said, “Money is a terrible master but an excellent servant.” This August issue is concerned with helping the men and women who voluntarily give of their time to serve on the board of directors of their community associations to be good stewards of the association’s money. FLCAJ trusts the various articles in this issue will help you to use money as an excellent servant.
On page 8 Beth Lanham-Patrie of Becker shares about the recent legislation of House Bill 913 (HB 913) and how it affects what associations should consider this budget season. She points out, “…if a board proposes an annual budget which exceeds 115 percent of the prior year’s budget, the board must simultaneously propose a substitute budget that does not include ‘discretionary expenditures that are not required to be in the budget.’” LanhamPatrie details the timeline of sending out both budgets 14 days in advance of a unit owner meeting and the voting process that must take place.
Turn to page 12 to read Jeffrey Rembaum’s article detailing the changes for licensed community association managers in HB 913. These statutory requirements are for management companies and individual CAMS, and they went into effect on July 1.
If you flip over to page 20, you will find a showcase of several financial companies who use their expertise to help associations with their financial responsibilities. You can read a brief bio for each of these communities as well as locate contact information to reach out to them with further questions.
On page 36 a variety of companies share best financial practices about everything from managing service contracts in your annual budget and paying your fair share of the reserves to smart budgeting for restoration projects to proactive post-loss claims budgeting.
When you turn to page 56, Gary Porter of Facilities Advisors shares how ongoing maintenance in community associations is often an afterthought. He gives five reasons for why this is the case and recommends associations combat this by writing out a comprehensive maintenance plan by someone with the credentials and experience to do it right.
Other articles in this issue focus on fraud protection, insurance essentials, the process of filing an insurance claim, special assessments, HB 913’s focus on modernizing rules about structural safety and reserve funding as well as financial transparency and protections, and top budgeting mistakes for HOAs to avoid.
May your financial decisions serve you well this August.
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Condominium Budgets, Reserves, and Insurance, Oh My!
BY ELIZABETH (BETH) LANHAM-PATRIE
A
s budget season approaches for condominiums, it would behoove the association to start a little earlier this year. Thanks to House Bill (HB) 913, there are numerous changes to Chapter 718. This bill was signed by the governor on June 23, 2025, and went into effect on July 1, 2025.
As a preliminary matter, Section 718.112(2)(e), Florida Statutes, has been amended to provide budget meetings may be conducted by video conference. Video conference has been defined in Section 718.103 by adding subsection (33) and is defined to mean
“…a real-time audio and video-based meeting between two or more people in different locations using video-enabled and audio-enabled devices. The notice for any meeting that will be conducted by video conference must have a hyperlink and call-in conference telephone number for unit owners to attend the meeting and must have a physical location where unit owners can also attend the meeting in person. All meetings conducted by video conference must be recorded, and such recording must be maintained as an official record of the association.”
It is important to note that all meetings conducted by video conference MUST also have a physical location so that unit owners have the option to attend in person.
Chapter 718 still requires that notice of the budget meeting be hand delivered, mailed, or electronically transmitted (to those unit owners who have agreed to receive notice via electronic transmission) along with a copy of the proposed budget. In the past I have written articles stating that exceeding 115 percent of the assessments for the preceding fiscal year carried little risk since the unit owners had to contest the budget within a specific limited period of time and a majority of the members had to approve a revised budget. HB 913 has fundamentally changed this provision.
ELIZABETH
“BETH” A. LANHAM-PATRIE, SHAREHOLDER, BECKER
Elizabeth “Beth” A. Lanham-Patrie has been practicing law since 1993, and she has focused on representing community associations since June 2001. Beth provides a variety of legal services to condominium, homeowner, and cooperative associations and is a transactional attorney with extensive experience drafting and amending governing documents and preparing and reviewing contracts. Beth is also involved in resolving disputes between associations and owners. Ms. Lanham-Patrie is also one of only 190 attorneys statewide who is a board-certified specialist in condominium and planned development law. For more information email bpatrie@beckerlawyers.com, call 407-875-0955, or visit www.beckerlawyers.com
Under HB 913, if a board proposes an annual budget which exceeds 115 percent of the prior year’s budget, the board must simultaneously propose a substitute budget that does not include any “discretionary expenditures that are not required to be in the budget.”
As a first step, the board must look to whether the proposed budget actually exceeds 115 percent of the prior year’s budget. The items to be excluded in this calculation have been slightly modified by HB 913; however, key expenses such as insurance premiums and mandatory reserves are still excluded from the 115 percent calculation. Associations will need to discuss with their managers, attorneys, and certified public
A UNIT OWNER MEETING MUST BE HELD TO VOTE ON THE SUBSTITUTE BUDGET BEFORE THE BOARD CONVENES TO ADOPT ITS PROPOSED BUDGET.
THEREFORE, IF THE UNIT OWNERS VOTE TO APPROVE THE “SUBSTITUTE BUDGET,” THAT IS THE ADOPTED BUDGET. IF THE UNIT OWNERS REJECT THE SUBSTITUTE BUDGET, THEN THE BOARD MEETS TO APPROVE ITS PROPOSED BUDGET.
accountants (CPA) whether any additional expenses can be calculated as part of the exclusion from the 115 percent increase. It is important to note that HB 913 amends §718.112(f)2.a, Florida Statutes, regarding mandatory reserves. This section has always provided that the association must reserve for any other item
that has a deferred maintenance expense or replacement cost that exceeds $10,000. The reference to $10,000 has been deleted and substituted with “…$25,000 or the inflation-adjusted amount determined by the division under subparagraph 6., whichever is greater.”
If it is determined that the association’s proposed budget exceeds 115 percent of the budget for the preceding year, then both the board’s proposed budget and a “substitute budget” without the “discretionary expenditures” must be sent to unit owners at least 14 days in advance. A unit owner meeting must be held to vote on the substitute budget before the board convenes to adopt its proposed budget. Chapter 718 does not define what are “required” versus “discretionary” expenses; therefore, the board will once again need to consult with its manager, its CPA, and quite possibly its attorney to assist in making this determination.
A unit owner meeting must be held to vote on the substitute budget before the board convenes to adopt its proposed budget. Therefore, if the unit owners vote to approve the “substitute budget,” that is the adopted budget. If the unit owners reject the substitute budget, then the board meets to approve its proposed budget. The substitute budget requires approval by a majority of voting interests or any greater percentage specified in the bylaws. Associations should consult with their attorneys to determine whether amending the bylaws to require a greater percentage is a good option for the association.
As set forth above, insurance premiums are excluded from the calculation as to whether a proposed budget exceeds 115 percent of the budget for the preceding year; however, I am often asked whether the association has to include insurance premiums as part of the budget or whether the association can specially assess for the insurance premiums. Section 718.112(2)(f), Florida Statutes, still provides as follows:
“(f) Annual budget.—
1. The proposed annual budget of estimated revenues and expenses must be detailed and must show the amounts budgeted by accounts and expense classifications, including, at a minimum, any applicable expenses listed in s. 718.504(21)…”
Section 718.504(21), Florida Statutes, provides the budget shall contain “…estimated items of expenses of the condominium and the association, except as excluded under paragraph (b), including, but not limited to, the following items, which shall be stated as an association expense collectible by assessments or as unit owners’ expenses payable to persons other than the association:…” One of the items listed as an expense for the association is insurance. Therefore, insurance premiums should be included as part of the annual budget.
With all these burdensome new laws in HB 913, I would like to end on a positive note. Section 718.111(13), Florida Statutes, Financial Reporting, has been amended to give the association 180 days, as opposed to 120 days, after the end of the fiscal year or other date provided in the bylaws, to deliver to unit owners via mail, personal delivery, or email/facsimile (if the unit owner has consented to email or facsimile delivery of notices) the most recent financial report. HB 913 does add, however, evidence of compliance with this requirement must now be made by an affidavit executed by an officer or director of the association. n
Fast, simple,
What Managers and Board Members
Need to Know About HB 913
BY JEFFREY A. REMBAUM, ESQ.
On June 23, 2025, Florida Governor DeSantis signed House Bill 913 (HB 913) into law. Its provisions took effect on July 1st. In last month’s Roundup we discussed how HB 913 amends the Florida Condominium Act, Chapter 718, Fla. Stat. In today’s article the Roundup considers how HB 913 affects Chapter 468, Fla. Stat., which addresses the statutory requirements for both management companies and individual licensed community association managers (LCAMs). Kaye Bender Rembaum’s comprehensive legal update is, or will be, ready for download very soon. Please go to www.kbrlegal.com to download your copy.
The following information is presented generally in the order in which it is presented in HB 913.
Photo courtesy of Kaye Bender Rembaum
If an LCAM’s license is revoked, then such individual cannot own any interest in a management company during the 10-year period after the effective date of the license revocation and cannot reapply for ownership in a management company until such 10-year period is completed.
LCAMs must create and maintain an online licensure account with the Florida Department of Business & Professional Regulation (DBPR). In addition, all LCAMs must both identify the community(ies) for which he or she is designated as an on-site manager, and such records must be updated within 30 days of any changes.
A community association management company must identify for the DBPR all
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
If an LCAM has his or her license suspended or revoked, then the DBPR is obligated to provide notice to the LCAM’s management company in which they are employed and must also notice all community associations to which the LCAM is assigned.
An LCAM must not knowingly perform any act directed by a community association if such act violates any state or federal law.
If the community association is subject to the statutory requirements of the structural integrity reserve study and/or milestone report, then such LCAM must comply with all relevant sections of law as directed by the
JEFFREY REMBAUM, PARTNER, KAYE BENDER REMBAUM
professional standards and recordkeeping requirements imposed by part VIII of chapter 468, Fla. Stat.
An LCAM must attend at least one board meeting or member meeting per year (while this is not a new requirement in HB 913, it is important to note).
All LCAMs must post their hours of availability and summary of duties in a conspicuous place in the community, which must also be posted on a website (or app) if the association is required to have one (while this is not a new requirement in HB 913, it is important to note).
LCAMs and management companies must provide a copy of the management contract if requested by a member. (This obligation is separate and distinct from an official record request, and while not a new requirement in HB 913, it is important to note.)
A rebuttable presumption of conflict of interest exists if the LCAM, or their relative, proposes to enter into a contract or other transaction with the association or actually enters into such contract for services or goods other than community association management services. Such a proposed conflict must be disclosed on the board meeting notice and agenda along with a copy of the proposed contract attached to the meeting notice (and such contract must be approved by two-thirds of all directors present at the meeting). However, if the community association manager or firm previously disclosed a conflict of interest in an existing management contract with the association, such conflict of interest does not need to be additionally noticed and voted on during the term of the management contract but, upon renewal, must be noticed and voted on as described above.
If a violation of the conflict-of-interest requirements occurs, then the contract itself is voidable by the board; and the association only owes the vendor for monies due up to the date of cancellation and is not liable for any other damages including liquidated damages, etc. which may otherwise be due under the contract.
If the association receives and considers a bid for a good or service that exceeds $2,500, and the good or service is unrelated to community association management services, and such good or service would be reasonably construed as a conflict of interest under § 468.4335 F.S., the association must receive multiple bids from other providers; however, this requirement of multiple bids does not apply to any goods or services that are disclosed in the management services contract as a conflict of interest.
If you have any questions regarding anything discussed herein, please be sure to discuss them with your association’s legal counsel. n
Car v. Fence: Will Your Insurance Policy Cover the Damage?
BY MICHAEL J. GELFAND, ESQ.
W
hy ask? Of course, your Florida community has casualty property insurance…. Even you were impressed by the voluntary leadership’s extraordinary care to obtain coverage in the face of astounding price increases.
Casualty property insurance has been thought of as hurricane or storm coverage, but it is also intended and marketed to address “something bad” that was not your fault, other damage from unanticipated events. Think of fire, lightning, or a car with an uninsured driver missing a turn and ending up in your living room or
Photo by iStockphoto.com/Aleksandar Tupanceski
community pool! (Yes, those do happen.)
So, why are more and more Florida communities asking whether there is coverage? It seems, even if only anecdotally, that more claims are denied. There are also fears that the so-called “tort reform” legislation has gone too far, encouraging insurers to improperly deny claims.
When asking questions, please do ask your insurance broker to explain your community’s policy, and ask what areas and structures are actually covered. You may be surprised, or after reading this article not surprised, as to where the line is drawn as to what is covered.
A real live dispute was spawned when a vehicle left the road and smashed into a fence. The facts in Anytime Restoration Services of Florida, Inc. v. Citizens Property Insurance Corporation, 50 Fla. L. Weekly D 517 (Fla 3rd DCA, February 26, 2025), indicate a homeowner’s fence was attached to his house. The vehicle damaged the fence when crashing into the property. The
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.
homeowner hired Anytime Restoration to remove the fencing from the property.
After receiving an assignment of the insurance benefits, Anytime submitted a bill for the fence removal to Citizens. Citizens denied the claim, arguing that damage to the fence was excluded under the policy. After Anytime sued Citizens for breach of contract, the trial court entered summary judgment for Citizens, finding that the fence was not covered because the fence was not part of the covered “principal building.”
The Florida appellate court disagreed with the trial court’s decision, finding that the trial court should have entered summary judgment for Anytime. The court pointed out that the problem arose with two seemingly conflicting policy provisions. On the one hand, the policy provided coverage for the dwelling on the residence premises. On the other hand, the policy provided coverage for “other structures on the residence premises” set apart from the dwelling by clear space. This includes structures connected to the dwelling by only a fence, utility line, or similar connection.
The trial court relied on the policy’s definitions to exclude coverage for the removal of the fence. However, the appellate court read further, the entire definition, and explained that the portion of the limiting definition of “principal building” to catastrophic ground cover collapse was not applicable.
Instead, the appellate court found that because the fence was attached to the dwelling, the fence was covered. The court stated the following: “By its plain language, therefore, the policy establishes that ‘structures attached to the dwelling,’ such as the fence here, are covered under Coverage A.” Because the damage to the fence was covered, the court found that the removal of debris was also a covered expense.
This decision reminds us that it is important to know and understand what your insurance policy will cover when an association sustains damage. Even though it may look unlikely that the damage is covered under one provision, there may be another provision with a differing interpretation. When faced with damage to common property, it is usually a good idea to consult with your association’s attorney.
But that is not all. As you can see from the next case, it is always important to submit your claims on time!
CLAIM NOTICE SUBMITTED 13 MONTHS AFTER DAMAGE IS DENIED!
In another insurance case filed against Citizens, this time a Florida appellate court determined that the insured’s damage
was not covered. Why? It was all a question of timing!
The facts recited in Bouchard v. Citizens Property Insurance Corporation , 50 Fla. L. Weekly D 441 (Fla. 3rd DCA, February 19, 2025), indicate that policy owner Bouchard noticed water leaking through his roof when Tropical Storm Eta hit on November 8, 2020. Nevertheless, Bouchard waited over 13 months, until December 22, 2021, to submit a claim to Citizens. Citizens’ adjuster inspected the property within a month of the claim, on January 20, 2022, and denied the claim, arguing it was filed too late.
Bouchard sued Citizens for breach of contract. When Citizens moved for summary judgment, Bouchard submitted an affidavit by a licensed engineer stating it was his conclusion that Tropical Storm Eta caused the damage. The trial court concluded that the claim was not promptly filed and granted summary judgment for Citizens.
The Florida appellate court agreed with the decision of the trial court. The court explained that when a claim is not submitted on time, a rebuttable presumption of prejudice to the insurer arises. That rebuttable presumption then shifts to the owner, Bouchard, the burden of overcoming the presumption that the 13-month passage of time prejudiced Citizens. The appellate court also ruled that the affidavit the owner filed was improperly conclusory.
The lesson to be learned is to file property insurance claims swiftly! If you wait too long, it is likely that you will not be reimbursed for expenses to fix the damage. n
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2025 Financial Company Showcase
Editor’s Note: The August FLCAJ magazine is excited to present this premier Financial Company Showcase. The financial service providers below are a wonderful introduction to a variety of financial-focused businesses that are eager and willing to help your community thrive. Don’t hesitate to call them and visit them on the internet.
ASSOCIATION RESERVES
Association Reserves was established in 1986 as a professional consulting firm serving community associations and other clients throughout the United States and abroad. To date our firm has completed over 80,000 reserve studies for a wide range of property types, including over 1,000 structural integrity reserve studies (SIRS) completed by our Florida team.
Our clients enjoy access to industry-leading tools and technology, including uPlanIt, our interactive online tool that is provided free with each professional reserve study we complete. Our team of experts represents a wide range of technical backgrounds, including engineering, architecture, construction management, and accounting and includes ten CAI-credentialed reserve specialists.
We don’t take a one-size-fits-all approach to our work because we know that every property is different, and we take the time and care to ensure our results
Photo by iStockphoto.com/ValeryBrozhinsky
will help you to make wise decisions regarding the long-term care of your physical and financial assets. From our first phone call to final delivery of your study, we hold ourselves to the highest standards of professionalism.
For more information about Association Reserves, call 954-210-7925, email wsimons@reservestudy.com, or visit www.ReserveStudy.com
ATLAS INSURANCE AGENCY
Atlas Insurance Agency is an independent agency based in Sarasota, Florida, proudly serving condominium and homeowner associations throughout Sarasota, Manatee, and Charlotte Counties since 1953. Our dedicated community association division works alongside property managers and boards of directors to support their insurance needs with responsive service, clear communication, and a practical understanding of the industry.
We assist with the placement of essential coverages for community associations. Our team takes a
Financial Tip: Regularly review your association’s insurance deductibles and ensure reserve funds align—coverage gaps can lead to costly surprises when storms or claims hit.
hands-on approach to presenting each community to insurance carriers in the best possible light—helping ensure properties are positioned competitively in a complex market. With access to a broad range of regional and national carriers, we offer flexible coverage options to meet a variety of needs.
To further support our clients, Atlas offers a dedicated claims advocate who helps coordinate communication, monitor progress, and assist in navigating the claims process when challenges arise.
We are also an approved continuing education provider for licensed CAMs, offering courses to help managers understand insurance complexities and stay informed about industry developments.
Contact us to learn how Atlas helps associations manage insurance with confidence, clarity, and yearround support.
For more information about Atlas Insurance Agency, call 941-552-4113, email ttremitiere@atlasinsuranceagency. com, or visit www.atlasinsuranceagency.com.
Call us today for your
• Water Management Programs for over 8,000 municipal & condo pools since 1983.
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COGENT BANK
Cogent Bank has been a Florida - grown, state - chartered institution since 2001, and today it manages more than $2.2 billion in assets across eight full - service banking centers spanning North, Central, and Southwest Florida. Cogent pairs deep financial expertise with a concierge approach that helps businesses, professionals, and families navigate complex financial goals.
Its comprehensive approach to solutions—offering commercial and personal lending, sophisticated treasury management, competitive deposit products, and friction-free mobile tools—is engineered to make everyday banking refreshingly simple.
Beyond traditional services, Cogent delivers forward-thinking programs such as association banking, which provides integrated payment platforms, accounting software compatibility, treasury management tools, and FDIC-insured deposit solutions designed to streamline financial operations for community associations.
Above all, Cogent bankers take time to listen,
learn, and craft innovative strategies that evolve as their communities grow, fostering relationships anchored in transparency, responsiveness, and shared success.
For more information about Cogent Bank, call 888-5770404 or visit www.cogentbank.net
EXPERT RESERVE SERVICES
Expert Reserve Services is a familyowned and -operated business proudly serving the reserve study and replacement cost valuation needs of Florida condominium and homeowner associations since 1999.
We recognize that no two associations are alike. That’s why every report we produce—whether a reserve study or a replacement cost valuation—is custom-tailored to meet the specific needs of each client. There is no boilerplate or no one-size-fits-all approach.
Our commitment to quality and service is reflected in our following track record:
• Over 26 years in business
• More than 3,000 reserve studies completed
• Over 7,000 replacement cost valuations conducted
• A client retention rate of over 96 percent for report updates
Although our service area has expanded across the southeastern United States, Expert Reserve Services remains proudly Florida based. From our headquarters in Daytona Beach, we serve all 67 Florida counties.
As a reminder, it is the fiduciary duty of association boards to ensure that financial reserves and insurance coverage are sufficient to protect the association’s long-term interests.
For more information, call us at 866-480-8236 or visit www.expertreserveservices.com
FIRST CITIZENS BANK
First Citizens Bank’s community association banking business is a national leader in providing individualized service, customized technology, smart savings solutions, and operational efficiency for homeowner associations (HOA) and community association management companies nationwide. Our business banking solutions include operating and reserve accounts, certificates of deposit, money market accounts, online banking, payments services, and HOA loans. First Citizens Bank helps personal, business, commercial, and wealth clients build financial strength that lasts. Founded in 1898 and headquartered in Raleigh, N.C., we provide a unique
legacy of strength, stability, and long-term planning that has spanned generations.
For more information on community association banking, see www.firstcitizens.com/CAB. First Citizens Bank, Member FDIC
RESERVE ADVISORS
Maintaining a community association physically and financially can be complicated, but planning for the future doesn’t have to be a pain. As your long-term partner, Reserve Advisors helps associations thrive by educating and empowering you with an accurate budget and action plan, meeting the true demands of ownership through reserve study solutions that fit your needs.
Since we were founded, we’ve helped pioneer the standards that all reserve study providers are measured by today. This success comes from our independence, extensive knowledge, and experience. We pride ourselves on delivering unbiased recommendations that give community associations the plans they need to address the following:
Financial Tip: Regular reserve studies are crucial in maintaining a stable budget, spreading out the cost of major capital projects over several years, and preventing the need for sudden due increases or special assessments.
Prevent Unforeseen Expenses—Avoid unexpected repairs and replacements that can strain your associa-
tion’s budget and lead to special assessments.
Prioritize Maintenance—We help you prioritize repairs that can be challenging with limited resources, so you can address minor issues before they become major problems.
Alleviate Miscommunication—We provide clarity regarding financial matters and maintenance plans that can cause friction among homeowners and the board.
For more information on how Reserve Advisors can help your community thrive, visit reserveadvisors.com or call 800-980-9881.
THE ERRO GROUP
The ERRO Group unwittingly began over 17 years ago at a selfmanaged community in Miami Beach, where we witnessed firsthand the serious operational challenges that poor accounting could create for an association. Through trial and error and hands-on experience, we developed The ERRO Group’s core principles of accountability, transparency, and empowerment.
Today The ERRO Group provides customized accounting and financial reporting solutions tailored to the unique needs of each community association. Serving more than 30 properties across Southwest and Southeast Florida, we leverage our industry expertise as LCAMs and accountants to deliver reliable, accurate, and accessible financial services.
Our goal is to give boards and property managers
the tools and insights they need to make informed decisions, ensuring their communities operate efficiently and with confidence. That is The ERRO Group difference—helping communities thrive through specialized financial support.
For more information, call 786-767-2111, email er@ theerrogroup.com or info@theerrogroup.com, or visit www. theerrogroup.com
U.S. CENTURY BANK
Established in 2022, U.S. Century Bank is one of the largest community banks headquartered in the Miami metro area and in the state of Florida. With $2.7 billion in assets, it is rated 5 Stars by BauerFinancial, the nation’s leading independent bank rating firm. U.S. Century Bank offers customers a wide range of financial products and services, including personal, business, jurist advantage, MD advantage, global banking, and association banking, through a network of 10 banking centers and industry-leading digital banking platforms.
U.S. Century Bank is the one-stop shop for homeowners’ associations and property managers, providing lockbox and coupons to online payments and term loans with fixed rates that align with your community’s budget. Let us be your financial partner.
For more information about U.S. Century Bank’s HOA services and products, call 305-715-5181 or visit www. uscentury.com. We look forward to working with you. n
Community Community
Florida Community Association Professionals (FCAP) primarily publlshes the Florida Community Association Journal, the leading resource for Florida community association managers, service providers, and board members. Through our publication, we provide education, industry insights, and resources to support the professionals who serve Florida's community associations.
Contact us at 800-443-3422, info@fcapgroup.com , or www.fcapgroup.com for more information..
BECAUSE YOU ASKED
By Betsy Barbieux, CAM, CFCAM, CMCA
Betsy,
My condominium documents state that our association can have three to five members on the board. The documents name the positions: president, vice president, secretary, and treasurer. We would like to have four members on the board, but the management company states that I need to have an odd number of members. Can you provide some guidance in this?
— Libby
Libby,
Unless your documents require an odd number of directors, there is no law or Robert’s Rules of Order provision that requires an odd number.
In the event there is a tie vote on the board of directors, the motion fails. Remember the president does vote and is a full participating member of the board. No board member has the “tie breaking” vote.
Your question, however, has mixed two things together—board members and officers. Be sure you are clear about the differences between board members and an officer. Here is a CAM Matters™ show that might be helpful: https://www.youtube.com/ watch?v=Ce6qTaLa0XM
In a corporation, the members elect the leadership group—board members. The number of seats is set out in the articles of incorporation or bylaws. The corporation begins with the number of directors selected by the developer. If the documents give a range of board seats, only the membership can increase or decrease that number (within the range given in the documents) by a vote of the membership amending the documents.
Directors run for a board seat. They do not run for an officer position. In other words, you don’t run for president. You run for a board seat.
Directors elect from among themselves the officer positions that are named in the bylaws or articles of incorporation. The board may appoint non-board members to assistant or vice officer positions.
Hope this helps! Be sure to subscribe to CAM Matters™ so you don’t
miss any of the monthly shows. www.youtube.com/c/cammatters
— Betsy
Betsy,
Is there any gain in us engaging in a conversation with other insurance companies? We are satisfied with our current agent but don’t want to miss an opportunity to save money. Last year we asked the same question and were advised not to muddy the waters with another insurance company. I’m just double checking to be sure we are not missing an opportunity.
— Sandy
Sandy, When purchasing commercial insurance, only the agent can shop the carriers. So, all you can do is “shop” for the agent who will work diligently on your behalf and negotiate with the carriers.
Individuals who shop for house, boat, and car insurance can go to different agencies and compare premiums and coverage. Commercial insurance is not the same.
If you are confident that you have a good agent who has good relationships with the main commercial carriers, then changing agents won’t benefit you unless the new agent has relationships with different carriers. I doubt that changing from good agent to good agent would benefit you.
— Betsy
Betsy Barbieux
Betsy,
Well, you offered to answer questions, so here is mine. What is the latest with regards to SIRS versus other capital improvement items? Separate accounts for each? Can a board use funding from one to help pay for other capital improvement items if priorities change?
— Paul
Paul,
I try not to give opinions about the SIRS reserves and funding but instead refer you back to your reserve study specialist. They will have the best and most current advice.
As far as regular reserves that are set out in a straight-line calculation, using funds from one component for another can only be done after the approval of a majority of the entire membership. Members must vote using the limited proxy with the statutory “warning” on it.
Since the new law, HB 913, has been enacted, the replacement cost/deferred maintenance for anything more than $25,000 is the new threshold, not $10,000. I think that threshold will be the same for regular reserves and SIRS.
— Betsy
Betsy,
A question came up here regarding enforcement of covenants and regular “patrol”—for lack of a better term—by the management to drive around and inspect the community for violations.
Should we have a log of areas surveyed and have a regular schedule? I would think this method removes any potential for accusations of selective enforcement; others have the opposite opinion.
— Tom
Tom,
Yes, it is always best to have a written policy for violation inspections and notifications to avoid the accusations of selective enforcement.
I would start with something like the following:
1. List the types of obvious violations: maintenance, trash, vehicles, and yards.
2. Assign inspection tasks to a person, management, or committee.
3. Determine inspection frequencies and create a log of the inspected lots.
4. Notify owners of the new process—this lists the frequencies and start date for compliance.
5. Determine notification process and timelines—i.e., email, friendly letter, unfriendly letter with drop dead date for compliance. (Always send certified mail/RRR and regular U.S. mail postage.)
6. Assign the notification process to a person, management, or committee.
7. Refer a noncompliant owner to the board for the imposition of a fine or use rights suspension. (must have fine/appeals committee in place before you start No. 1—this step costs the association nothing)
8. Or refer a noncompliant owner to an attorney. (This step costs the association dollars that may not be recoverable.)
— Betsy
NAVIGATING THE TOP BUDGET AND FINANCIAL TOPICS FOR FLORIDA HOAS AND CONDOMINIUM
By Marcy Kravit, CMCA, AMS, PCAM, CFCAM, CSM Senior Director of Community Association Relations—Developing Markets
Hotwire Communications
As a board member and former community manager, I have seen firsthand how strong financial management is the backbone of a thriving community. Florida’s environment is marked by unpredictable weather, rising costs, and aging infrastructure, and it requires us to stay proactive and plan for the future. Addressing current challenges while preparing for what’s ahead is essential to keep our communities safe, vibrant, and financially sound.
Below are some of the most pressing financial topics communities are facing today. I also offer practical recommendations and questions to guide your planning.
RISING INSURANCE PREMIUMS AND COVERAGE CHALLENGES
Florida communities are experiencing significant increases in property and flood insurance premiums. These rising costs can have a major
Marcy L. Kravit
impact on our budgets. To manage this, I recommend reviewing your insurance policies annually to ensure they match current risks. It is also wise to compare rates and explore risk mitigation strategies like storm shutters, flood barriers, and regular maintenance to help lower premiums.
The following are questions for boards and managers:
• Are we reviewing and updating our insurance coverage each year?
• Have we put risk mitigation measures in place that could reduce our premiums?
• Are we working with experts familiar with Florida-specific risks to advise us?
RESERVE FUND FUNDING AND ADEQUACY
Maintaining adequate reserve funds is critical, especially in Florida’s coastal regions where infrastructure deteriorates faster. I recommend conducting traditional reserve studies and structural integrity reserve studies according to the appropriate statutes. Adequate reserves enable us to handle unexpected repairs, replacements, and future upgrades without resorting to special assessments that can burden homeowners.
The following are questions to consider:
• Are our reserve studies current and reflective of the actual condition of our assets?
• Do we have enough funds set aside to cover major repairs over the next decade?
• How transparent are we with residents about reserve funding and long-term planning?
BUDGET TRANSPARENCY AND OWNER COMMUNICATION
Transparency builds trust in our communities. It is important to share clear, detailed budgets and financial reports with owners. Hosting educational sessions and providing online access to financial documents can help residents understand how their dues are used and foster confidence in our management.
The following are questions to ask:
• Are we providing understandable financial updates to residents?
• Do we hold regular meetings or webinars to explain our budget decisions?
• Are we actively seeking feedback from owners and responding promptly?
MANAGING DEFERRED MAINTENANCE AND CAPITAL PROJECTS
Long-term planning is essential. We need to prioritize safety-related repairs and major upgrades. Including these projects in our annual budgets and reserve studies helps us stay ahead of deterioration and avoid costly emergency repairs.
The following are questions to consider:
• Do we have a comprehensive maintenance plan and schedule?
• Are we allocating funds each year for capital improvements?
• How are we involving residents in decisions about major upgrades?
FUNDING LARGE PROJECTS AND AVOIDING SPECIAL ASSESSMENTS
When reserves are insufficient, communities often face difficult decisions about levying special assessments. To minimize reliance on assessments, I recommend building a healthy reserve fund and planning projects well in advance. Clear and honest communication about the necessity of assessments helps residents understand their importance.
The following are questions to ask:
• Are we planning and funding projects proactively?
• How effectively are we communicating assessment needs to residents?
• Are we exploring phased approaches or alternative funding options?
UTILITY COSTS AND SUSTAINABILITY
Utility expenses—such as electricity, water, and waste disposal—can significantly impact budgets. Implementing energy-efficient upgrades like LED lighting, solar power, and water-saving fixtures can reduce ongoing costs while supporting our sustainability goals.
The following are questions to consider:
• Have we evaluated potential savings from energy upgrades?
• Are we applying for rebates or incentives for green initiatives?
• How can utility savings be incorporated into our longterm budgets?
LEGAL AND COMPLIANCE COSTS
Florida’s laws and regulations are constantly changing. Working with experienced legal and financial professionals helps ensure compliance and reduces
the risk of costly penalties.
The following are questions to ask:
• Are we regularly reviewing and updating our governing documents?
• Do we have access to legal counsel familiar with Florida statutes?
• How are we communicating legal or regulatory updates to residents?
FUTURE-PROOFING AND INFRASTRUCTURE UPGRADES
Looking ahead, it is essential to plan for future-proofing our communities. This includes budgeting for technology upgrades, infrastructure renewal, and safety systems that meet or exceed current standards.
The following are questions to consider:
• Do we have fiber-optic internet to provide our remote workers the best service possible?
• Have we future-proofed our community?
• Are we allocating funds for upcoming technology upgrades like smart systems?
• Do we have a plan to replace aging electrical equipment and upgrade electrical panels and wiring?
• Are budgets set aside for modern fire safety systems including alarms, sprinklers, and emergency lighting?
• How are we preparing for climate change impacts such as sea level rise and extreme weather?
MAKING NEW RESIDENTS FEEL AT HOME
A community is stronger when new residents feel welcomed. Consider hosting onboarding events, providing digital welcome kits, and pairing newcomers with long-term residents. Small gestures like welcome gifts or social gatherings foster a sense of belonging and pride. Here are some questions to consider:
• Do we have a formal onboarding process for new residents?
• Are we creating opportunities for residents to connect and build relationships?
• How can we make new residents feel valued from the start?
FINAL THOUGHTS
Managing a community’s finances in Florida involves more than just balancing the books. It requires strategic planning, proactive maintenance, and a focus on technology and future-proofing. By addressing these key topics and asking the right questions, we can keep our communities safe, vibrant, and well-prepared for what is ahead.
From my experience as a board member and former community manager, I believe that a thoughtful, proactive approach will help us create communities that stand the test of time. Together, we can build neighborhoods that residents are proud to call home now and in the future. n
FLORIDA COMMUNITY ASSOCIATION JOURNAL
Free, Friendly Financial Assistance
Editor’s Note: 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.
PLANNING—MANAGING SERVICE CONTRACTS IN YOUR ANNUAL BUDGET
By Darion Samuels
Effective annual budget preparation is essential for community associations, and strong partnerships with service providers play a vital role in this process. A well-planned budget ensures financial stability, supports long-term goals, and helps maintain the quality of services residents expect.
UNDERSTAND CONTRACT TERMS
One key aspect is reviewing existing service contracts. Knowing where your service agreement stands, especially when it’s set to expire, can make all the difference in smart planning. If your association is nearing the end of a long-term contract, like a seven-year agreement, it’s the perfect opportunity to step back and ask, Are these services still meeting our community’s needs? This moment opens the door to reassessing priorities, exploring new technologies, and ensuring you’re getting the best value moving forward. This is also the ideal time to
Photo by iStockphoto.com/Jacob Wackerhausen
explore potential upgrades or enhancements, especially with the rapid pace of technological advancement.
ACCOUNT FOR RATE INCREASES
Many service contracts include built-in annual rate increases, often around two to three percent, which can quietly add up over time. If these escalations aren’t factored into the budget early on, they can lead to unexpected shortfalls. By understanding these terms upfront, associations can plan more accurately, avoid surprises, and maintain better control over long-term financial planning.
ENGAGE IN PROACTIVE PLANNING
Associations should kick off budget discussions well in advance, ideally several months before the fiscal year ends. Starting early gives ample time to gather input from vendors, review past spending trends, and plan for upcoming projects or changes in service needs. It’s also a great opportunity to compare rates from other providers, ensuring the association is getting the best value for its investment. Early preparation leads to more informed decisions and a smoother budgeting process overall.
These tips are essential for annual budget planning. A clear understanding of contracts and early engagement are key to building a strong, effective financial plan.
Darion Samuels is senior HOA account manager for ADT|Community Association Program. For more information, call 800-878-7806 or visit ADT.com/community-associations
DON’T UNDERESTIMATE YOUR CURRENT YEAR EXPENSES: A BUDGETING WAKE-UP CALL FOR ASSOCIATIONS
By Ana Sanchez Rivero
When preparing your association’s annual budget, one of the most common and costly mistakes is underestimating current-year expenses. Your current financial performance is a powerful tool—use it. Review your year-to-date actuals and project them through the end of the fiscal year. This gives you a clearer picture of what your association is truly spending in each category.
That said, dig deeper. Examine your general ledger to identify one-time projects or unplanned repairs that may have inflated a line item. Don’t assume those expenses will repeat, but also don’t ignore planned projects that will impact next year’s costs. Budget for them.
Lastly, resist the urge to trim the budget just to avoid increasing assessments. Chronic underbudgeting only postpones reality and often leads to financial shortfalls or special assessments. An honest, datadriven budget helps ensure stability, and that’s what every community needs.
Ana Sanchez Rivero is president and business development coordinator for Allied Property Group. For more information, visit www.alliedpropertygroup.net
A NEW PROPOSAL
By Connie Lorenz
We all dread the day when we must replace our roadways and parking lots. Being financially prepared for the expense seems like it might be a moving target or an unattainable dream. Some communities discover that
their budgets aren’t quite meeting the mark in today’s unstable environment. Working with multiple communities in various aspects of asphalt, ranging from simple repairs all the way up to a full depth mill and replacement, I was very happy to see that some of the contractors are starting to budge on their pricing, especially if they are a desirable community to work with, not for!
Working with difficult communities or with boards that are unreasonable has allowed contractors the right to refuse to work with certain properties, and that leaves those communities to pay a higher price.
However, I have had some properties that are wonderful to work with, but they receive their proposals and find that their preferred contractor is outside of their budget. Guiding the property manager to make a phone call to share with the sales representative that their community wanted to work with them, but their pricing was too high, soon found they were on the receiving end of a new proposal that reflected a much lower price. Working together makes it worth it for all involved.
Connie Lorenz is president of Asphalt Restoration Technology Systems. For more information, call 800-2544732 or visit www.asphaltnews.com
PAYING YOUR FAIR SHARE
By Will Simons, RS
We often hear from board members that residents don’t want to pay for reserves, saying things like, “Why should I pay for a new roof in 15 years if I won’t even be living here?” This way of thinking misses the point of reserve funding. Instead of seeing reserves as saving up for a future project, think of it this way: every year, your building’s parts are slowly wearing out. That roof, the paint, the pavement—they’re all deteriorating right now. So, when you contribute to reserves annually, you’re not just saving for a far-off repair. You’re actually paying your fair share of the “wear-and-tear bill” that’s happening today. This means everyone who lives in the community and benefits from these components, as they slowly age, contributes their part. It doesn’t matter who lives there when the actual replacement happens, because everyone has already paid for the portion of the asset they “used up” during their time in the building.
Will Simons, RS, is president of Association Reserves. For more information call 954-210-7925, email wsimons@ reservestudy.com, or visit www.ReserveStudy.com.
TAILORED BANKING AND FINANCIAL EXPERTISE FOR ASSOCIATIONS AND PROPERTY MANAGEMENT COMPANIES
By Justin Zaleski
Associations and property management companies require specialized banking to meet complex financial needs.
Bank OZK recommends association clients plan for the unexpected. Whether it’s a natural disaster or unexpected repair, our experienced association team members can help communities navigate the complexities of capital projects or handle unexpected emergencies.
Bank OZK delivers first-class service through local lockbox solutions, streamlined receivables, and efficient payment processing. Our ICS/CDARs offer enhanced FDIC insurance, simplifying account oversight. For capital projects or emergencies, we provide fixed and variable-rate loans and lines of credit. Financial best practices include maintaining transparent records, regular statement reviews, and leveraging 24/7 online banking.
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solutions, and integration with management software to improve efficiency. We understand the operational challenges associations face and are committed to reducing delays, enhancing processing, and driving long-term stability. Choose a partner that delivers trusted financial services and supports your community’s growth.
Justin Zaleski is SVP, regional executive, retail banking at Bank OZK. For more information, call 844-905-6975 or visit ozk.com/associationservices
GENERALLY ACCEPTABLE ACCOUNTING PRINCIPLES (GAAP)
By Joesph Markovich, Esq.
In navigating through budgeting and financial issues, you may have come across the term “generally acceptable accounting principles,” or GAAP for short. GAAP provides financial accounting and reporting standards for organizations like community associations, ensuring that financial statements are consistent and comparable to past financial statements as well as those of other organizations. GAAP encompasses a range of guidelines, including how to classify and report financial transactions, which helps organizations make informed decisions based on accurate financial data.
These principles are generally provided by the Financial Accounting Standards Board (FASB) and are crucial for maintaining transparency and integrity in financial reporting. While GAAP provides a framework, it is subject to updates and changes to reflect new financial realities and practices. For those interested in understanding GAAP in more detail, they should consult with a qualified accountant who can provide tailored insights and guidance based on specific needs and circumstances.
Joseph Markovich is an attorney in Becker’s condominium, co-op, and HOA practice group. For more information, visit www.beckerlawyers.com
NOW’S THE TIME TO REEVALUATE YOUR COMMUNITY’S CONNECTIVITY
By Rick Murphy
With budget season around the corner, it’s a great time for board members and property managers to start exploring bulk TV and internet solutions that can bring longterm value to their community. Bulk agreements offer significant cost savings—often up to 50 percent less than what individual residents would pay for the same services on their own.
Beyond savings, associations can benefit from a one-time payment (commonly called a door fee), which can be used for capital projects like landscaping, building improvements, or other community enhancements.
Perhaps most important for financial planning, these agreements typically come with rate stability. Pricing is locked in for 8–10 years, with small, predictable increases (usually 2–4 percent annually) that are agreed upon upfront—providing much-needed clarity compared to retail rates, which often spike after promotional periods.
If your association finalizes budgets between August and November, now is the time to schedule vendor meetings and explore your options while there’s still time to plan.
Rick Murphy is director of community relations for Blue Stream Fiber. To learn more about how Blue Stream Fiber can help support your community’s projects, visit www.bluestreamfiber.com/bulk.
QUICK TIPS FOR BUDGET SEASON
By PJ Biondolillo
Budget season is approaching—be sure to start early and plan ahead! Work with your management company to develop a plan, define responsibilities, gather information, and map out key deadlines. Below are some quick tips for this budget season:
Insurance—The market is beginning to soften. Speak with your insurance agent to explore potential savings opportunities.
Compliance—
• Condominiums—Be aware of new legislation. Work with your management company and attorney to ensure full compliance with new laws, especially surrounding reserves.
• HOAs—Review your governing documents as they may require more notice or stricter reserve funding than Florida Statute 720.
Communication—Host budget workshop meetings before the official budget meeting to walk owners through the budget and gather feedback. Transparency builds trust.
By starting early, staying informed, and fostering communication, your association can approach budget season with confidence and success.
PJ Biondolillo is director of operations for Campbell Property Management. For more information, call 954-4278770 or visit www.CampbellMGT.com.
SMART SUMMER 2025 BUDGETING FOR RESTORATION PROJECTS
By Gabriella Bianchini
Florida summer storms coupled with humidity and salt in the air are tough on buildings and condominiums and cause them to deteriorate. This weather combination also presents the perfect opportunity to budget for your concrete restoration project.
For community associations and HOAs, this season is an ideal time to assess structural needs like concrete spalling, column and balcony repairs, waterproofing, and condominium façade repairs before small issues become costly emergencies for your building.
It’s important to keep up with milestone inspections and reserve study requirements. Increasing statewide planning is more than smart—it’s essential. By aligning your condominium association with concrete restoration goals and summer budgeting, boards can lock in Florida-licensed structural engineers and general contractors that specialize in this type of concrete restoration work before the rush of fall sched-
We help communities develop proactive strategies that protect property and preserve long-term value for Florida’s coastal skyline condominiums. A mid-year check-in on your restoration priorities might be the most important financial decision your board makes all year.
Gabriella Bianchini is the director of safety and marketing for Carousel Development & Restoration. For more information, call 561-272-3700, email info@cdri.net, or visit www.CDRI.net.
FINANCIAL PREPAREDNESS IN YOUR COMMUNITY’S DISASTER PLAN
By Tomi Andrews
The need to have a disaster plan in place for your community has never been more apparent. Many forget to include the financial preparedness piece to disaster preparation. Here are a few financial preparedness points to consider having in a disaster plan:
• Names of the signers on the association’s accounts. Include the bank name, account numbers, and
that the signers on the accounts are current board officers; update information when the board changes.
• Consider securing an emergency line of credit before storm season begins. This way restoration efforts can begin right away. Waiting either for the insurance payout or for passing and collecting a special assessment could make or break your community’s ability to rebuild.
• Know what uninsured risks exist for your community and, if possible, budget for them.
• Review and update the plan regularly so that the stakeholders are on the same page when the storm passes and recovery begins.
Tomi Andrews is senior association banking relationship manager for Centennial Bank. For more information, call 941-552-0925, email TAndrews@my100bank.com, or visit www.my100bank.com/association-banking.
PRACTICAL STEPS TO SECURE YOUR ASSOCIATION’S FINANCES AND PREVENT BANK FRAUD
By Georgia Miller
To safeguard their finances, community associations should
implement robust fraud controls that create layered protections. Start with dual authorization for large checks and transfers, and regularly reconcile bank statements with internal records to catch discrepancies early.
To foster a vigilant culture, associations should educate board members and staff on fraud risks while enforcing strong passwords and multi-factor authentication to enhance security. Maintain open communication with the association’s bank, and report any suspicious activity to help prevent losses. In addition, regular internal and external audits help identify vulnerabilities and reinforce accountability.
Tools like positive pay reduce check fraud by allowing the bank to verify issued checks against a list provided by the association, flagging discrepancies for review. Variations such as ACH positive pay and reverse positive pay extend this protection to electronic payments, offering greater control and transparency. By combining these practices and tools, associations can significantly protect their financial resources.
Georgia Miller is the SVP community association relationship manager at Cogent Bank. For more information call 888-577-0404 or visit www.cogentbank.com
WEATHER ECONOMIC UNCERTAINTY WITH CONFIDENCE
By Kyle A. Alonso, Esq.
Financial planning for community associations goes beyond line items and spreadsheets—it requires legal awareness to anticipate and manage risk. Budgets should account for statutory reserve requirements, rising insurance premiums, and potential deductible gaps in windstorm and flood coverage. Associations must also ensure that increases in assessments or special assessments are adopted in compliance with governing documents and applicable statutes, or they risk legal challenges.
Collections programs are another critical intersection of finance and law. Clear collection policies, proper notice procedures, and timely legal action can significantly improve recovery rates on delinquent assessments. Associations should also review contracts and internal controls annually to safeguard against fraud and unauthorized spending.
Legal insight can strengthen an association’s financial position by ensuring that budgets, policies, and risk management practices are not only fiscally sound
but also legally compliant, helping communities weather economic uncertainty with confidence.
Kyle Alonso, Esq., is a senior associate at Haber Law. For more information, visit haber.law
SMART BUDGETING FOR COMMUNITY SUCCESS
By Marcy Kravit, CMCA, AMS, PCAM, CFCAM, CSM
With over 20 years of managing properties and serving on my HOA board, I’ve learned that a well-crafted, realistic budget is the key to a thriving community.
In today’s landscape of rising costs—from maintenance to insurance--and the increased demand for reliable telecommunications, strategic planning is more important than ever.
Take telecommunications, for example. Hotwire Communications delivers essential fiber-optic services that keep residents connected, informed, and safe. Budgeting for dependable telecom isn’t a luxury; rather it’s the fourth utility and a fundamental part of your community’s infrastructure.
The following are key tips for creating a successful budget:
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Start with history—Review year-to-date financial statements, compare actual expenses, and identify patterns to make informed projections.
Evaluate each line item—Were some costs unexpected due to aging infrastructure or normal wear and tear? Consider exploring cost-saving alternatives or renegotiating contracts.
Review contracts carefully—Understand how and when costs escalate, and plan for those increases accordingly.
Build reserves—Set aside adequate reserves for unforeseen expenses and emergencies to protect your community’s long-term health.
Communicate openly—Keep residents informed throughout the process—transparency fosters trust and cooperation.
A proactive approach—Explore options and maintain open dialogue, this can transform your community. Staying informed and flexible ensures your neighborhood remains connected, secure, and resilient.
Remember, a thoughtfully developed budget isn’t just about numbers; it’s the foundation for a stronger, happier, more sustainable future.
Marcy Kravit, CMCA, AMS, PCAM, CFCAM, CSM is senior director of community association relations–developing markets for Hotwire Communications. For more information, visit www.hotwirecommunications.com.
SECURITY CHALLENGES ARE EVOLVING EVERY DAY—ARE YOU KEEPING UP?
By Mark Blum
At Kent Services we specialize in identifying threats and vulnerabilities before they become problems. Our comprehensive approach includes a full
security assessment built around the triple perimeter strategy—securing your outer perimeter, interior space, and everything in between. We also focus on reducing gap time—that critical window between detection and response. The faster you act, the more you prevent.
What’s your current security strategy? Is it proactive, layered, and technology-driven? At Kent Services we combine highly trained security officers with cutting-edge technology and robotics to give you complete coverage and peace of mind.
But more than just tools and personnel, we believe security is community. It›s about partnership, communication, and trust. Security is not a checkbox—it’s a mindset. And at Kent, security is who we are. Security is Kent Services.
Mark Blum is operations manager at Kent Services. For more information email mblum@kentservices.com, call 561-800-5223, or visit www.kentservices.com.
PROACTIVE VENDOR FRAUD PREVENTION APPROACHES FOR COMMUNITIES
By Suzel Broe
Among the many fiduciary responsibilities Florida community managers and association boards have is protecting association funds from outside threats. Vendor fraud, such as fake invoices, vendor impersonations,
and unauthorized payments, is an increasingly common threat.
Community managers and board members should implement the following essential safeguards to combat the potential financial and reputational damage that vendor fraud can cause:
• Rigorous vetting, including verification of proper licenses and insurance, before approving any new vendor
• Multi-step payment approval and verification for any banking information changes, and utilization of property management systems for invoice tracking, audit logs and fraud prevention
• Conducting regular vendor audits and reviews of financial statements and bank reconciliations
• Using secure, association-approved communication platforms and requiring proper documentation before approving any requests
Through these proactive steps, managers and board members can ensure their community is wellprotected from these evolving threats.
Suzel Broe is chief financial officer—financial services. For more information on KW PROPERTY MANAGEMENT & CONSULTING, contact Suzel Broe at (305) 476-9188 or sbroe@kwpmc.com, or visit www.kwpmc.com.
PRUDENT BOARDS PURSUE DELINQUENCIES PROMPTLY
By Keith F. Backer, Esq.
Prompt collection of regular and special assessments is critical for Florida community associations.
Assessments fund essential services such as landscaping, insurance, repairs, and security. Not only do nearly all of a board’s goals for maintenance, replacement, or enhancement of common facilities rely on the resources generated by assessments, but when owners fail to pay, the financial burden of those priorities unfairly shifts to the paying members. Florida law provides associations with powerful tools to collect delinquencies, including liens and foreclosure rights, but these remedies are most effective when pursued early. The laws that provide owners with between 30 and 45 days to pay after each stage of the collection process should encourage boards to begin collection of unpaid assessments when owners are 15 days delinquent. Delays often lead to larger balances, greater legal costs, and reduced likelihood of recovery. Associations that actively pursue delinquencies protect their financial stability and fulfill their fiduciary duty to all homeowners. Postponing action can jeopardize an
entire community’s financial health.
Keith F. Backer, Esq., is partner at Poliakoff Backer. For more information, call 800-251-3562, email kbacker@ bapflaw.com, or visit www.bapflaw.com
HOW TECHNOLOGY CAN STRENGTHEN HOA ACCOUNTING
By Camille Moore
Managing HOA finances without the right tools can create unnecessary challenges. Manual processes slow down reporting, increase the risk of errors, and make it difficult for board members to gain a comprehensive understanding of the full financial picture. Even basic tasks, such as tracking expenses or preparing budgets, can become tedious and inefficient.
Technology changes that. With the right systems, boards can benefit from the following:
• Automated processes that reduce manual work and minimize errors
• Real-time insight into association financials
• Secure digital portals for board members and homeowners
For communities seeking enhanced oversight and greater confidence in their financials, adopting the right technology is essential. RealManage supports this shift with industry-leading software that offers full transparency into association finances. Our tech-driven approach empowers boards to achieve peak performance by managing with greater efficiency and trust.
When your board has the right tools in place, financial management becomes less about guesswork and more about making smart, strategic decisions that benefit the entire community.
Camille Moore is a creative content writer for RealManage. For more information, visit.realmanage.com.
ACCURATE BUDGETS NEED ACCURATE RESERVE STUDIES
By Matt Kuisle
If your last reserve study was completed over three years ago, it may be in your budget’s best interest to get it updated. Numerous factors outside of your control can contribute to changes in project timing, project costs, and most importantly,
Beyond the Boardroom invites you to attend a powerful in-person event that will deliver the vital legislative and industry updates your community needs to stay compliant, protected, and proactive.
THURSDAY, AUGUST 21, 2025 MORI
Morning and Afternoon Sessions
Presented by Martell & Ozim, P.A.
Morning Session
9:00 – 11:00 AM
HOSSEINI CENTER
1200 W International Speedway Blvd, Daytona Beach, FL 32114
Ample parking – Daytona State College will be on break!
Choose the Session that Fits Your Day:
Afternoon Session
12:30 PM
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LEGISLATIVE UPDATES YOU CAN’T AFFORD TO MISS:
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funding plans. Two such factors are changes in inflation and changes in useful lives.
Increases in inflation change the costs for materials, labor, and overall construction, outdating projected project costs. If you are using an older reserve study as the basis of your community’s budget, it’s likely that you will be facing higher project costs than you’re budgeting for.
The rate of deterioration for components, especially in Florida’s climate, can change unexpectedly, impacting project timing. When the remaining useful life of a major component is shortened, it’s crucial to understand exactly when it will need replacement to avoid funding shortfalls, deferred maintenance, or additional expenses.
Updating your association’s reserve study is essential for the financial and physical well-being of the property and residents alike, keeping budgets and repair and replacement schedules on track.
Matt Kuisle, PE, PRA, RS is regional executive director—southeast for Reserve Advisors. For more information, call 800-980-9881, email matt@reserveadvisors.com, or visit www.reserveadvisors.com
NEW LAWS IMPACTING CONDOMINIUM ASSOCIATION BUDGETS AND RESERVES
By Eduardo J. Valdes
New legislative changes effective July 1 include several key measures impacting condominium association budgets and reserves.
Associations are now allowed to meet their reserve funding requirements by obtaining loans or lines of credit from lenders with owner approval. However, financially strained associations should exercise caution before taking on debt and the burden of interest payments.
Rather than paying interest to lenders, the new law allows associations to earn interest by enabling directors to use their best efforts to make prudent investment decisions. They may invest reserve funds in certificates of deposit or depository accounts without a vote of the unit owners.
Additionally, for budgets adopted on or before December 31, 2028, associations that have completed a required milestone inspection within the previous two calendar years may vote to pause or reduce their reserve fund contributions for up to the next two consecutive annual budgets. This pause, which must be approved by a majority of all voting interests, allows associations to focus on funding more immediate repairs and capital needs.
These and other changes aim to give associations greater flexibility as they navigate the mounting pres-
sures of long-term maintenance planning and the state’s growing condominium affordability crisis.
Eduardo J. Valdes is an attorney with the South Florida law firm of Siegfried Rivera. Additional information is available at www.SiegfriedRivera.com and 1-800-737-1390.
THE IMPORTANCE OF MAINTAINING VEHICLE SECURITY GATES
By Sunbelt Gated Access Systems
Vehicle security gates are critical for controlling access, enhancing safety, and protecting property in residential, commercial, and industrial settings. Regular maintenance ensures these gates function reliably, preventing unauthorized entry and safeguarding assets. A well-maintained gate deters potential intruders as malfunctioning gates can signal vulnerability, inviting security breaches. Routine inspections catch issues like worn hinges, faulty motors, or damaged sensors early, reducing costly repairs and downtime. Lubricating moving parts, checking electrical systems, and testing safety features like auto-reverse mechanisms prevent accidents and ensure compliance with safety standards. Additionally, maintaining gates preserves their aesthetic appeal, boosting property value and curb appeal. Neglecting maintenance can lead to unexpected failures, compromising security and convenience. By scheduling regular upkeep, property owners ensure seamless operation, extend gate lifespan, and reinforce a secure environment, protecting both people and property from potential threats.
For more information about Sunbelt Gated Access Systems, call 904-354-7060 or visit sunbeltsys.com
PAYMENT BOOKS
By Tom Weidenhamer
TNW Corporation
Community associations need a reliable way to communicate with all members of the association. In this digital age of communication, not all members are as technically savvy as other members. The sure way to reach all members with important communications is the printed word on paper. This ensures that all members will have easily understandable communication
regarding assessment payments, budgets, board of director elections, and other important notifications including those that require approval by members. Printed payment books, envelopes for first notice of annual meeting, board of director election envelopes, and notices for voting on other matters are a sure method of reaching all members. TNW Corporation in Destin, FL, has been providing these products reliably for clients over 25 years.
Please visit our website at www.sos-products.com or call Tom’s cell at 850-585-1400.
BUDGETING FOR CLAIMS: SAFEGUARDING YOUR COMMUNITY AFTER A LOSS
By Rick P. Tutwiler, CPIA, PCLS
Among a board’s vital fiduciary duties is proactive post-loss claims budgeting. Disasters like hurricanes trigger immediate, high-cost needs: debris removal, emergency services, dry-outs, roof tarping, board-ups, and overtime staffing. These volatile expenses demand swift payment, often before any insurance reimbursement. Compounded by frequently prolonged investigations involving numerous adjusters and consultants, delays are common, and coverage is never guaranteed.
Boards should proactively budget for best- and worst-case loss scenarios, ensuring adequate reserves can fund immediate and long-term needs to avoid cash flow crises, liens, or special assessments.
Smart boards conduct mock scenarios, understand policy terms, and prepare for insurance processing delays. We’ve seen insurance carriers default on fundamental policy duties; therefore, boards and managers must be prepared, practice scenarios, and avoid significant penalties within their disaster plan. Disasters don’t wait, and neither should your budget. Don’t let disaster recovery catch your community off guard.
Rick Tutwiler is president of Tutwiler & Associates. For more information, call 800-321-4488 or visit www.PublicAdjuster.com
PARTNERING WITH YOUR BANK: MORE THAN JUST A CHECKING ACCOUNT
HOW ASSOCIATION BANKING TEAMS HELP WITH TREASURY SERVICES, FRAUD PREVENTION, AND CAPITAL PLANNING.
By Rick Alfonso
For community associations, a strong banking relationship goes far beyond maintaining a checking
account. Association banking teams such as U.S. Century Bank’s offer specialized expertise that supports financial stability, efficiency, and growth. Here’s how they do it.
Through treasury services, community banks like U.S. Century Bank help streamline the collection of dues, automate payments, and improve the association’s cash flow management. Lockbox services, remote deposit, and digital banking tools make it easier for associations to stay organized and reduce administrative burden.
Fraud prevention is another key benefit. With rising cyberthreats, U.S. Century Bank can offer secure payment platforms, dual control features, and real-time account monitoring to safeguard association funds.
Perhaps most importantly, as your banking partner, we can assist with capital planning. Whether preparing for major repairs or funding long-term projects, let our experienced association bankers provide guidance on your reserve funding strategies and tailored financing options.
Rick Alfonso is SVP, director of specialty products for U.S. Century Bank. For more information, call 305-7155200 or visit uscentury.com.
STOP FRAUD
By Raj Baterina
Fraud can happen anywhere, even in wellmanaged community associations. That’s why it’s so important to have the right checks and balances in place.
Start by making sure there are clear internal controls, like requiring two signatures on checks and separating financial duties among different people. Reviewing bank statements regularly is another simple but effective step. It also helps to keep things transparent. Make sure the board reviews monthly financial reports, and think about bringing in a qualified CPA for an annual audit or review.
With so much done online these days, don’t forget to use strong passwords and secure systems for all financial accounts. Board members should be familiar with common fraud risks and feel comfortable speaking up if something seems off. A little extra attention to detail can go a long way in protecting your association’s finances and keeping the community’s trust.
Raj Baterina is administrator/marketing assistant for Vesta Property Services. For more information, call 904-355-1831 or visit www.VestaPropertyServices.com. n
We are with you through the process and will continue with you throughout our partnership.
You might not see us on a billboard or hear about us on the radio because we invest in providing concierge-level service to each community we serve.
Dedicated Account Management and Property Support Specialists physically in your community.
Assigned technicians to provide a familiar face who knows your property, your services, and your individual needs.
Locally based full-time employees in our contact centers—no outsourcing —you’ll be doing business with your neighbors.
Continuous on-demand education about your products, so you can get the most out of your services.
Our dedicated, local support is there for you every step of the way to provide customized solutions to meet your community’s unique needs.
We’ve put the decision makers, service professionals, and property support specialists right in your backyard. Let’s get in touch and talk about how to future-proof your property with Fision Fiber Optics by Hotwire Communications.
TNW Corporation Assessment Payment Books and Election Envelopes 850-585-1400 www.sos-products.com
The Prime Directive
BY GARY PORTER, RS, FMP, CPA, RRC
I
n more than 40 years of working in the community association industry, I’ve reviewed thousands of governing documents. Nearly all state a version of the same purpose: “This corporation is organized for the administration, fiscal management, and operation of the association and to maintain, repair, and improve the common elements.” This is the prime directive—the association’s central mission and legal obligation. Yet despite this clear mandate, maintenance is too often an afterthought. It rarely takes center stage in day-to-day operations. That doesn’t mean it’s entirely ignored, but it often receives far less attention than it deserves. There are many reasons why this happens, and most of them are deeply embedded in how associations function.
A PEOPLE-FOCUSED INDUSTRY
Community associations are, above all, people businesses. Volunteer board
Photo by iStockphoto.com/JARAMA
members and management professionals spend much of their time addressing homeowner concerns, enforcing policies, and balancing budgets. As a result, physical maintenance often falls into the background until something breaks or fails.
Lifestyle amenities, member satisfaction, and visible upgrades often take priority, especially when funds are limited. But without strong maintenance practices, even the best amenities will eventually deteriorate.
LIMITED MAINTENANCE KNOWLEDGE
Board members typically come from diverse, nontechnical backgrounds. They bring valuable life and work experience but often lack the expertise needed to evaluate or plan maintenance activities. That’s understandable; it’s not their profession.
GARY PORTER, RS, CPA, FMP, RRC, RSS, CEO FACILITIES ADVISORS
Gary Porter is CEO of Facilities Advisors, which has provided financial services to condominium and homeowners’ associations since 1976. He has authored five books and more than 400 articles on association financial matters and has made dozens of presentations to industry groups. Mr. Porter holds the FMP (Facilities Management Professional) credential, which designates him as an expert in facilities management, the most critical skill in component condition assessment. He holds CAI’s RS (reserve specialist) designation and also holds the RRC (registered reserve consultant) credential, the highest designation available to reserve preparers. For more information, visit www.facilitiesadvisors.com or call 877-304-6700.
Professional managers bring broader operational knowledge, but even they are generalists. Their job is to coordinate with experts, not replace them. Complex facilities require deep technical skills—skills that only come from years of focused experience or specialized training. Facilities maintenance is a professional discipline. I hold the Facilities Management Professional (FMP) credential from the International Facility Management Association (IFMA), a rigorous program that takes most participants two years and thousands of dollars to complete. Licensed engineers are the largest group of credentialed members. What’s troubling is how rarely I see similar credentials within the community association world. While we emphasize credentials for
& INNOVATIVE LEGAL TEAM
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managers, we place little value on professional qualifications for those who direct or perform critical maintenance work.
ABSENCE OF A COMPREHENSIVE PLAN
Every association has a maintenance program—a collection of whatever tasks they are currently doing. But very few have a true maintenance plan. That’s a formal, structured set of procedures outlining what should be done, when, how, and by whom.
Think about your association’s finances. Would you operate without a budget? Of course not. The budget sets expectations and provides a basis for measuring performance. Maintenance deserves the same structure.
A complete plan should include the following:
• A full inventory of physical assets
• Maintenance checklists for each item
• Inspection schedules to monitor condition
• Performance benchmarks and tracking tools
• A reporting system with clear accountability
Without this, most associations are flying blind. They don’t even realize it because there’s no plan to measure against.
MISUNDERSTANDING THE RESERVE STUDY
Too many people mistakenly believe that a reserve study is a maintenance plan. It’s not.
A reserve study is a financial planning tool—effectively, a long-term budget for major repairs and replacements. It doesn’t include the preventive steps necessary to extend the life
of assets. It may identify 90 percent of what needs maintenance but says little about how to maintain it.
For example, painting is often included in reserve studies. But technically, painting is a maintenance expense—not a capital improvement. Several court decisions confirm this distinction. Confusing capital budgets with maintenance plans results in serious gaps in care.
A REACTIVE CULTURE
Many associations operate reactively, fixing things when they break. But studies consistently show that preventive maintenance saves money: at least $3 in long-term costs for every $1 spent proactively.
In the commercial world, this is common sense. Preventive maintenance is simply good business. In associations where maintenance is required, the financial logic still hasn’t been widely embraced.
Photo by iStockphoto.com/A stockphoto
Maximize Your Community’s Value
We are a boutique firm that specializes in providing accounting services for Community Associations including:
Julie Jaram, MBA
360 Central Avenue, Suite 800 St. Petersburg, FL 33701
Often, everyone involved assumes someone else is handling maintenance. The result?
• Boards don’t have the knowledge to evaluate quality.
• Managers lack deep technical training.
• Employees are redirected to member service roles.
• Contractors are selected based on cost, not qualifications.
• Suggestions to improve maintenance are discouraged to avoid higher costs.
• Boards avoid raising assessments—even to keep up with inflation. This is a systemic problem that, left unaddressed, can lead to structural failures and mounting liability.
THE SOLUTION: PROFESSIONAL PLANS AND PEOPLE
Ideally, every association should have a written, comprehensive maintenance plan created by someone with the credentials and experience to do it right. That means professionals with deep training—not just a general contractor or engineer with occasional experience. State laws require licensed professionals for structural inspections. Why wouldn’t we hold the same standard for ongoing maintenance?
We must stop treating maintenance as an afterthought. It’s the foundation of everything associations do. Fulfilling the prime directive means placing maintenance where it belongs— at the center of association governance, with the planning, expertise, and investment to do it well. n
Fiduciary Responsibilities: Detecting and Preventing Association Fraud
BY JOEY SCHELLBACH
S
erving on an association’s board requires trust and accountability. Board members serve as decision-makers and stewards of the community and its resources, meaning they hold a fiduciary responsibility to act in the association’s best interests. This includes making informed decisions in all areas of the community and its finances. However, associations are often at risk for fraud, making it essential to understand where responsibilities as a board member end and where the management company’s responsibilities begin in fraud detection and prevention.
BOARD MEMBER FINANCIAL PROTECTION RESPONSIBILITIES
One common misconception is that hiring a management company relieves the board of its fiduciary responsibility. This is not necessarily true. While a community management company can ensure anti-fraud measures or best practices are in place for the communities they serve, board members are the decision-makers for the association’s finances. They oversee the community manager and management company’s involvement in its finances and budgeting. Board members are also responsible for establishing financial policies within the association’s bylaws, approving or amending the association budget, reviewing financial reports with their management
Photo by iStockphoto.com/weiyi zhu
company, and ensuring that their association and management company have a system of checks and balances or internal financial controls to prevent fraud. If needed, board members should review their management contract, which can also help clarify the company’s responsibilities versus their own.
It is important for board members to remember that acting in the community’s best interest should also ensure that its residents remain involved and informed on changes, issues, and concerns with their association’s financial health. Residents have the right to understand how their community’s finances are managed and to know if fraud is suspected. All board members—not just the treasurer—should maintain contin -
JOEY SCHELLBACH, SENIOR VICE PRESIDENT, BUSINESS DEVELOPMENT, SENTRY MANAGEMENT
uous financial oversight with their management company to fulfill this fiduciary responsibility. They must meticulously review the financial reports for errors, ask questions, ensure the management company adheres to the association’s policies, and create a culture of financial transparency. This practice ensures that the financial oversight role does not land on one community member’s shoulders but, instead, allows multiple individuals to identify areas of concern within the association’s finances. Depending on the association’s system of checks and balances, this approach not only helps detect warning signs of fraud but also serves to discourage it from happening in the first place. Board members should also hold the management company accountable, confirming that it follows strong financial controls and provides regular financial reports.
Joey Schellbach is the senior vice president of business development at Sentry Management. Joey has over 10 years of experience in the community management industry and helps to introduce prospective boards to Sentry’s full-service management options. For more information, visit sentrymgt.com
FINANCIAL PROTECTION RESPONSIBILITIES OF MANAGEMENT COMPANIES
Community management companies have unique responsibilities and tasks to protect the associations they serve from fraud. In addition to managing day-to-day financial operations, the company also acts as a first line of defense against fraud and financial mismanagement as many of its duties require strict attention to detail, financial expertise, and a high standard of integrity. For instance, management companies are accountable for maintaining financial records, producing financial reports, managing association bank accounts, collecting assessments, processing vendor invoices and payments, and assisting with budget preparation. A reputable management company will be vigilant while reviewing vendor contracts, coordinating state and federal tax filings, and handling association insurance and coverage for liability protections to reduce unforeseen losses.
Additionally, management companies will maintain a system of antifraud measures and fraud detection. For example, some measures that they may implement include strict separation of duties, such as separating vendor setup, invoice processing, and bank account access; multi-level payment approvals for large invoices; requiring multiple signers on checks or bank withdrawals to prevent a single individual from accessing account information; bank account reconciliations by individuals without payment authority; utilizing lock boxes; and more. A reputable company will ensure that its checks and balances and anti-fraud measures are consistently enforced and regularly reviewed. These systems should be adaptable to evolving risks, compliant with industry best practices, and designed to safeguard association funds from both internal and external threats.
FRAUD PREVENTION AND DETECTION TIPS
Preventing fraud is not a one-time task to check off; it requires continuous vigilance from all to detect. Board members must consistently maintain a high level of awareness and education to ensure that the association’s finances are monitored properly.
Here are some tips that board members can use to identify and prevent association fraud:
Proactive Monitoring— Board members should strive to review financial reports during each meeting and evaluate the effectiveness of the board’s or management company’s fraud prevention measures whenever possible. This ensures vulnerabilities are identified and addressed promptly and proactively.
Continued Education—Board members should make a conscious effort to learn more about identifying and preventing fraud. If available, they should participate in continuing education on topics like financial management, conflict of interest, and fraud recognition. It is also beneficial for board members to familiarize themselves with the various types of fraud—such as embezzlement, invoice manipulation, kickbacks, and election tampering—to identify warning signs when they occur.
Monitor and Document Warning Signs—Once board members understand the different kinds of fraud and their warning signs— including, but not limited to, missing invoices, receipts, or records; mismatched bank and financial statements; complicated financial statements; or forgery—it is vital to document the evidence to maintain transparency with the board, residents, and management company. This documentation will also be useful for any future legal needs.
Auditing—Consider having a third-party auditor or accountant conduct periodic reviews of the community’s finances or test its anti-fraud measures. This added oversight can catch issues early and demonstrate to the community that the board is committed to transparency and financial integrity.
By working together, board members and their management company form a critical partnership in protecting the association’s financial health. As each has distinct responsibilities, both must share a commitment to safeguarding the association and its finances. Through ongoing education, proactive oversight, and strong internal controls, board members can understand and fulfill their role in protecting the association against fraud. n
Building Back Better: Navigating Poststorm Building Code Challenges in Florida’s Condominium Communities
BY RICK DELAHAIE
WEATHERING THE AFTERMATH
When hurricanes rip through Florida’s coastlines, the initial devastation often draws the headlines. But for many community associations, the real battle begins after the storm has passed. Amid the debris and insurance claims lies a quieter but critical crisis—one centered on the labyrinth of Florida’s ever-evolving building codes.
For condominium communities, especially those along the vulnerable coastlines,
Photo by iStockphoto.com/Alexander Shapovalov
rebuilding after a storm is far more complicated than simply repairing damage. Building code compliance, permitting, and inspections often become roadblocks that delay recovery and rack up costs. In some cases, well-meaning efforts to rebuild can worsen the situation.
In this article we dive into the core of these challenges and share a real-life case study from Sanibel Island, where failure to understand building code requirements and lack of experience nearly derailed a community’s recovery until a specialized contractor stepped in and turned the project around.
THE HIDDEN STORM: CODE COMPLEXITY AFTER HURRICANES
Florida is no stranger to hurricanes, with the state accounting for nearly 40 percent of all U.S. hurricane landfalls since 1851.
RICK
DELAHAIE,
GENERAL CONTRACTOR & ELECTRICAL CONTRACTOR AND COFOUNDER, GENERAL CONSTRUCTION & DEVELOPMENT LTD.
Rick Delahaie is the cofounder of General Construction & Development Ltd., a SW Florida-based general contracting and building firm specializing in coastal residential and condominium restoration. With over 30 years of construction experience and expertise in Florida Building Code compliance, General has guided countless owners through complex post-storm recoveries. Rick’s leadership blends technical precision with a commitment to client advocacy, ensuring that every project is built stronger, safer, and smarter. He is a licensed Florida general contractor, Florida electrical contractor, and a trusted advisor to condominium boards across the Gulf Coast and beyond. For more information, call 239-790-8729, email build@generalconstructioncorp.com, or visit generalconstructioncorp.com.
Coastal communities from the Panhandle to the Keys are at high risk, and condominiums are particularly vulnerable due to aging structures, shared ownership responsibilities, and strict permitting environments.
Post-storm-building code compliance has become one of the most common and costly challenges community association boards face. The problem lies not just in repairing storm damage but in adhering to Florida’s rigorous and frequently updated building codes, which are designed to ensure safer, more resilient structures in the face of stronger and more frequent storms.
Unfortunately, many boards and property managers hire general contractors who are unfamiliar with the specialized nuances of the Florida Building Code (FBC), especially updates related to wind load resistance, floodplain management, and structural retrofitting. These knowledge gaps, to name a few, often result in the following:
• Incorrect or incomplete permit applications
• Use of outdated materials or methods
• Missed or overlooked structural requirements
• Drainage infrastructure needs
• Failed inspections and costly rework
• Exposure to stop-work orders and code violations
IF LEFT UNADDRESSED: A DOWNWARD SPIRAL
When these problems go unchecked, communities suffer. Beyond the immediate financial burden, the consequences can be severe.
• Prolonged displacement of residents
• Higher insurance premiums due to compliance risks
• Devalued property due to unresolved violations
• Legal disputes among owners or between condominium associations and contractors
• Safety hazards from improperly repaired structures
For Florida community associations, proper code compliance is not just a best practice; it’s a necessity for legal, financial, and human safety.
LEARNING FROM THE PAST, BUILDING FOR THE FUTURE
Historically, many community associations have relied on familiar local contractors for storm recovery. While these teams may offer quick
availability and trusted relationships, they often lack the depth of experience needed for full-scale code-compliant restoration.
The new gold standard involves hiring specialized general contractors with a deep understanding of FBC updates, coastal FEMA requirements, and municipal permitting workflows. These professionals provide the following:
• Perform preconstruction code audits
• Coordinate with structural engineers and inspectors
• Upgrade materials and assemblies to meet or exceed standards
• Ensure complete documentation for insurance and resale
• Proactively work with local building officials to avoid delays
The result? Faster recovery, fewer legal issues, and greater peace of mind for board members and residents alike.
CASE STUDY: SURFSIDE 12, SANIBEL ISLAND, FL
After Hurricane Ian ravaged Sanibel Island in 2022, Surfside 12, a picturesque 12-unit beachfront condominium, suffered significant wind and water damage. Eager to act quickly, the condominium board hired a restoration contractor who promised an expedited recovery. But shortly after mobilizing, the project veered off course.
Without a comprehensive understanding of FBC updates and FEMA regulations/exemptions, the contractor made numerous structural errors to make way for new electrical/ plumbing infrastructure without engaging structural engineers, incorrectly replaced damaged roofs, removed crit
YOUR HOA LENDER
ical structural elements, and proceeded without approved permits. As a result, the project failed multiple inspections; a stop order was issued; and units remained uninhabitable for over one year.
Faced with mounting pressure and resident frustration, the board reached out to an experienced Florida contractor to assist in determining the damage both from Ian and the prior contractor.
ON-TIME & Accurate FINANCIAL REPORTING THAT’S SENTRY
Sentry makes sure associations’ financials are always accurate and delivered on-time. Plus, board members can access a live view of the financial reports in Sentry’s CommunityPro® portal at any time for unmatched precision.
SENTRYMGT.COM
TURNING THE TIDE: REBUILT THE RIGHT WAY
Surfside 12 was at a standstill. They began with a forensic audit and brought in structural engineers to assess and document both the damage and the code violations, providing a clear path to completion.
From there, the game plan was as follows:
• Developed a revised scope of work aligned with the 2023 FBC (common areas and owner units)
• Coordinated new permits and cleared existing violations
Most importantly, they maintained open communication with the board, residents, and city inspectors at every step. Within a year, Surfside 12 wasn’t just restored; it was rebuilt as stronger and safer. And more importantly, owners had peace of mind.
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.
WHAT THE COMMUNITY HAD TO SAY
“When our first contractor left us in an execution and structural mess, having the right contractor to step in and completely turn the project around was critical. They didn’t just repair the damage; they educated us every step of the way and delivered results we expected.”
— Greg D., Board President, Surfside 12
“We were facing time constraints, residents’ frustrations, and litigation. Attention to code and detail saved our community, not just physically, but financially and emotionally.”
— Julian S., Treasurer, Surfside 12
A BLUEPRINT FOR RESILIENT RECOVERY
Florida’s condominium communities cannot afford to overlook the importance of code compliance in post-storm recovery. While the immediate instinct is to repair quickly, the smarter and ultimately the safer approach is to build back better by partnering with code-knowledgeable contractors, investing in up-to-date materials and methods, and embracing long-term resilience over short-term savings.
Recovery isn’t just about rebuilding walls; it’s about restoring peace of mind. Through proper working relationships with communities like Surfside 12, they continue to prove that the right team, armed with the right knowledge, can transform crisis into opportunity. n
Insurance Essentials for Community Associations: Protecting Your Community with Confidence
BY ELSY SILVESTRE
Navigating insurance policies for your community association can be overwhelming. Here are some key considerations when reviewing your association’s insurance policies.
Don’t Ignore the Small Premium Policies! While property insurance often dominates the budget and gets the most attention, reviewing smaller policies’ terms, conditions, and coverages is critical. Lines of coverage outside of property insurance can include valuable protections for your association—or leave significant gaps if not adequately understood. The best practice is to evaluate in depth, annually, what is included and excluded and notify your broker of any changes, such as a new appraisal or modification to the property.
No Two Policies Are Identical: A thorough comparison of the policies is essential to ensure that unexpected limitations don’t catch your association off guard. “No two policies are identical, and comparing the coverage forms is critical, especially in general liability,” says Andrea Northrop, Esq., of Patriot Growth Insurance Services. “A mentor of mine liked to say that the ‘standard’ general liability ISO form is 16 pages long. Anything more than that is likely altering or reducing coverage provided in the first 16 pages.“
The Truth About Flood Insurance: Flood insurance is not included in standard property insurance
Photo by iStockphoto.com/phakphum patjangkata
policies, making it a self-insured risk for many associations. A common misconception is that being outside a “mandatory” flood insurance zone means no risk. However, all of Florida is considered a flood zone, and over 20 percent of flood claims come from areas not designated as special flood hazard zones. Understanding your exposure to flood risks and considering supplemental flood insurance is crucial.
There’s No Such Thing as Full Coverage: No single insurance policy covers everything. Every policy has exclusions, whether it’s property, liability, or directors’ and officers’ insurance. It’s vital for board members to recognize these limitations and address gaps through supplemental coverage or risk mitigation strategies. Understand Deductible Applications: Deductibles,
ELSY SILVESTRE, SENIOR EXECUTIVE ASSISTANT, CASTLE GROUP
Elsy Silvestre is a senior executive assistant at Castle Group, where she supports the CEO and COO with highlevel strategic operations. Originally from Queens, New York, Elsy brings over a decade of experience in executive administration, leadership, and communication. She also leads CastleCares®, overseeing statewide philanthropic initiatives. Elsy holds a master’s in management and a B.A. in English from Thomas Edison State University. Outside of work, she enjoys writing, exploring new ideas, and continuing to learn— always striving for excellence in both her professional and personal life. For more information, visit www.castlegroup.com.
particularly hurricane deductibles, can be confusing and financially significant. These are often expressed as a percentage, but the real impact comes when that percentage is applied to the total insured value. For example, a five percent hurricane deductible may sound manageable until it is calculated on a multimillion-dollar property. Ensure your association has a clear plan in place for covering deductible costs when disaster strikes.
Being proactive and thorough in your community association’s insurance review can save your community from financial hardship and unnecessary stress. By understanding the nuances of your policies and planning for potential risks, your board can ensure your community’s long-term security and well-being. n
What Associations Should Know About the Process of Filing an Insurance Claim
How to Prepare Beforehand to Make the Process as Smooth as Possible
BY DILLON B. MARKSBURY, MBA
Let’s be honest; insurance isn’t exactly the most exciting topic. For most people it’s confusing, expensive, and something you only think about when you absolutely have to. In Florida the whole thing gets more complicated (and costly) thanks to the recency and frequency of catastrophic events. Yet, it doesn’t appear to diminish the attractiveness of our beautiful state. Florida has experienced explosive population growth over the last 10 years, which has led to extensive development to meet the rising demand. As a result, community associations are growing rapidly, and the need to understand the insurance landscape is critical—especially since many residents have never experienced a hurricane and may not know what to do when a claim becomes necessary. This article breaks down what associations need to know about effectively navigating insurance claims to make the process as smooth as possible.
STEP 1—HAVE A PLAN BEFORE THE STORM HITS
With the increased frequency and severity of hurricanes since 2017, pre-disaster planning is becoming more and more important for community associations. At the end of the day, board members are simply volunteers; most don’t have professional
Photo by iStockphoto.com/Yuliia Kaveshnikova
experience dealing with catastrophic events. Without a plan in place, the pressure to make quick decisions in the middle of chaos can lead to costly delays, confusion, and missed steps of recovery. A solid plan helps take the guesswork out of what to do next and gives your board and residents some peace of mind. Options to consider regarding your plan may include the following:
• Communication plan
• Emergency contact list
• Emergency reserve funds
• Volunteer response committee
As Benjamin Franklin once said, “By failing to prepare, you are preparing to fail.” That couldn’t be truer in this case.
Born and raised in Englewood, Florida, Dillon Marksbury brings a strong foundation in finance, business strategy, and client service to his role at Atlas Insurance. He holds a bachelor of science in finance with a minor in entrepreneurship from Western Kentucky University and earned his MBA from the University of Tampa. Dillon serves as a commercial risk advisor at Atlas Insurance Agency, where he works closely with board members and property managers across Southwest Florida. His focus is on helping community associations navigate insurance decisions with clarity and confidence. With a background rooted in risk management, Dillon is dedicated to supporting long-term planning and protection strategies that align with the operational needs of each association. For more information, call 941-366-8424 or visit atlasinsuranceagency.com
You don’t have to, and shouldn’t, go through this alone. Your insurance agent should be someone you trust to guide you through the tough stuff, not just someone who sells you a policy and disappears. A good agent isn’t there only to chase the cheapest premium; rather, the agent should help you understand all options available to you, explain how the insurance industry works, help forecast future premiums, and guide you through the claim process until it is resolved. That kind of support matters more than you might realize, especially when you’re dealing with damage, deadlines, and residents looking for answers.
Planning for the future is complicated. Your reserve study shouldn’t be.
We help associations maintain physical and financial health through education, ongoing support, and reserve studies tailored to your community’s unique priorities. Contact us at reserveadvisors.com or (800) 980-9881.
STEP 3—REVIEW YOUR POLICY
Insurance is one of the largest line items in the budget, and yet, the least understood. If you don’t understand your policy, you won’t know what to expect when you file a claim; or worse, you may assume something’s covered when it is not.
Take the time to sit down with your agent and go over the following:
• Who’s insured
• What’s covered (and what’s not)
• Your deductibles
• Exclusions
• Gaps in exposures
• What the association is responsible for (versus unit owners)
Ask questions, even the “dumb” ones. This is one of the biggest expenses in your budget; it’s worth knowing exactly what you’re paying for.
STEP 4—KNOW WHAT TO EXPECT DURING THE CLAIMS PROCESS
If you have lived in Florida for a while, you have most likely had to file a claim due to a hurricane. In this instance, you may have reached out to your agent about what to do only to be given a 1-800 number and told to go call your insurance company. This can make the claims experience frustrating and painful.
That’s why understanding how the claims process works and what your agent will or won’t do for you is so important. Ideally, your agent should walk you through the process, help you gather what you need, and act as your go-between with the insurance carrier.
The goal of the claims
process is to get your community back to where it was before the damage. Here is a guide to help associations effectively navigate through the claims process.
Act fast to prevent more damage. Take reasonable steps to preserve property and mitigate further loss. Insurance is intended to cover loss from a covered peril, not further loss as a result of not mitigating the damage right away.
Document everything. Collect as much information as possible at the time of occurrence. Take photos of the damage, save any damaged or broken items, and gather contact information for all parties involved (those who were injured and witnesses). Keep detailed notes on every interaction with your insurance carrier, adjusters, and vendors. These details can be invaluable if there’s a dispute or supplemental claim later.
File an incident report with your agent. Your agent should have an incident report readily available and help get the claim submitted quickly.
Assign a claims coordinator internally. Designate one or two individuals—often the property manager and a board liaison—to track claim activity, document communications, and coordinate next steps. This helps avoid confusion, missed deadlines, and duplicated efforts.
Understand the role of the field and desk adjusters. The field adjuster is gathering data, determining the extent of damage, taking photos, and preparing the file for the desk adjuster. The desk adjuster looks to the policy to determine how the information received from the field adjuster interacts with
COMMUNITY ASSOCIATION LAW SERVICES:
Covenant enforcement
Covenant amendments
Contract review/negotiation
Collection of assessments
Meeting package preparation
Attendance at meetings
Legal counsel on all day-to-day operational decisions
Review and negotiation of loan/line of credit documents
General litigation
And more!
TURNOVER & CONSTRUCTION DEFECT SERVICES:
Turnover meetings
Review of turnover
documents
Assisting in the selection and hiring of turnover auditors, engineers and other consultants
Chapter 558 inspections and procedures
Negotiating repair protocols
the policy and what can and cannot be afforded based on policy language.
Be patient as recovery takes time. While mitigation needs to happen quickly, full recovery is often a longer journey. Contractors, engineers, adjusters, permits, cash flow, et al. all need to be coordinated; and you will not be the only one going through this process. There will be many people in your situation (or worse) who will be expecting results quickly, so keep realistic expectations. Depending on the extent of the catastrophe, it could take months if not years to recover.
Navigating the insurance claims process isn’t something most community associations think about until disaster strikes. But in Florida, where hurricanes and other severe weather events are a near certainty rather than a possibility, being unprepared can come at a high cost. While insurance may feel like a confusing line item in your budget, understanding how it works, building a relationship with a knowledgeable agent, and having a plan in place before disaster hits can make all the difference.
7 board certified attorneys in condominium & planned development law
5 board certified attorneys in construction law
Recognized by Chambers & Partners, Super Lawyers, Best Lawyers
All aspects of state/federal litigation for construction warranty claims, from settlement negotiations through trial *Information for
The goal is simple—protect your community, minimize chaos, and expedite recovery. By being proactive, creating a predisaster plan, reviewing your policy thoroughly, asking the right questions, and knowing what to expect when filing a claim, you empower your board to respond with confidence instead of scrambling in crisis. Insurance may never be exciting, but with the right preparation, it doesn’t have to be overwhelming. Your residents are counting on leadership when it matters most, and preparation is the first step toward resilience. n
Special Assessments: In-House vs. Financed—
What Boards Should Consider
BY ERIC GANDARILLA, LCAM
W
hen faced with a major repair, renovation, or capital project, community associations often rely on special assessments to raise the necessary funds. These assessments typically take one of two forms: an in-house special assessment, where owners pay the association directly over a short period of time; or a financed special assessment, where the association secures a loan and repays it using owner contributions.
Photo by iStockphoto.com/Elena Shlyapnikova
Both options can work well, but they carry different risks and advantages. Choosing the right one requires understanding your community’s financial profile, the urgency of the project, and the board’s long-term goals.
WHAT IS AN IN-HOUSE SPECIAL ASSESSMENT?
An in-house special assessment is the most direct approach. The association calculates the cost of the project, allocates amounts per unit, and sets a payment schedule. Owners then pay the association directly, often over several months.
The main advantage is the simplicity and speed. There’s no lender involved, so associations avoid the time-consuming loan application process and the interest, legal, and administrative fees that come with it. Owners also save money by not paying financing charges.
ERIC GANDARILLA, LCAM, COFOUNDER AND CFO, THE ERRO GROUP
Eric Gandarilla is a cofounder and chief finance officer for The ERRO Group. At The ERRO Group, we specialize in guiding Florida community associations through complex financial planning, including special assessment strategy. Our team provides the clarity, tools, and support boards need to make confident decisions—tailored to their unique community needs. For more information, call 786-767-2111, email er@ theerrogroup.com or info@theerrogroup.com, or visit www.theerrogroup.com
WHAT IS A FINANCED SPECIAL ASSESSMENT?
Financed assessments allow associations to borrow the full project amount upfront from a financial institution. Owners repay the loan over time, usually as part of their monthly assessments.
The major benefit here is immediate access to funds. Large-scale or urgent projects—particularly those in the millions—can proceed without delay. Repayment over time makes even significant costs more palatable for owners, spreading the burden over years instead of months.
This method shifts the financing responsibility to individual owners. If needed, they can seek out personal financing on their own terms. For associations with financially stable owners and manageable project sizes, this can be an ideal route. However, collectibility is key. If many owners are on fixed incomes or financially stretched, delinquencies are likely to rise. This can jeopardize the association’s ability to collect enough funds on time, especially if the money is needed upfront. Boards may need to include a higher contingency rate in their calculation to compensate for potential shortfalls, driving up the total amount assessed.
But this route has complexities. Associations must qualify for the loan, which involves underwriting, financial reviews, and potentially applying to multiple lenders. Interest rates, fees, and the association’s financial standing all impact terms. Associations with higher delinquency rates or lower reserves may still qualify but often at a cost.
There’s also the matter of loan administration. Prepayments by owners can cause cash flow issues if the loan isn’t reamortized correctly. The association could find itself short on funds even though some owners paid early. Careful structuring and ongoing loan oversight are crucial.
WHAT BOARDS SHOULD CONSIDER
There’s no one-size-fits-all answer. Choosing between an in-house or financed assessment depends on a few key factors:
Community Composition— What is the financial capacity of the owners? A financially healthy association may comfortably handle a large in-house assessment in months. Others may struggle with much less over a longer period.
Project Size and Timeline— If the work is urgent and the funding requirement is high, financing may be necessary regardless of the owners’ financial capacity.
Cost vs. Convenience—In-house assessments avoid added costs but can be difficult to collect quickly. Financing offers speed but at a price.
Administrative Bandwidth— Managing a loan involves lender communication, documentation, and payment tracking. Boards and managers must be prepared for the added responsibility.
It’s also worth noting that even financially healthy associations may choose financing strategically—to preserve reserves, avoid overburdening owners, or simplify project execution. Conversely, a smaller project might not justify the administrative overhead of a loan.
There’s no perfect option. Every community is different, and each project presents its own set of variables. Boards must weigh the financial, operational, and community impacts of each path.
Partnering with the right professionals can make all the difference.
THERE’S NO PERFECT OPTION. EVERY COMMUNITY IS DIFFERENT, AND EACH PROJECT PRESENTS ITS OWN SET OF VARIABLES. BOARDS MUST WEIGH THE FINANCIAL, OPERATIONAL, AND COMMUNITY IMPACTS OF EACH PATH.
Boards should consult with their management team and accountant early in the process to evaluate the feasibility of each approach. n
HB 913—Modernizing Florida’s Condominium Laws
BY ANASTASIA KOLODZIK, PRA, RSS, CAM
Florida’s legislature has enacted significant reforms with House Bill 913, a sweeping update to the condominium and cooperative association statutes. Signed by Governor Ron DeSantis on June 23, 2025, and effective July 1, 2025, this law delivers longsought changes in the wake of the tragic 2021 Surfside collapse—balancing improved safety protocols with muchneeded financial relief and transparency for residents.
Photo by iStockphoto.com/Zerbor
WHY HB 913 WAS NEEDED
The collapse of Champlain Towers South in Surfside, which killed 98 people in June 2021, was a wakeup call. Florida responded with a robust 2022 condominium safety law mandating structural integrity reserve studies (SIRS), milestone inspections every 10 years, and funding of sufficient reserves for major structural maintenance.
While the safety intent was sound, older buildings—particularly in South Florida—were hit with steep reserve-building assessments, skyrocketing HOA fees, and declining resale values, with units devalued to as low as $9,000–$10,000 in extreme cases. The need for affordability, transparency, and flexibility became urgent, especially for retirees and fixed-income residents.
KEY CHANGES IN HB 913
A. Structural Safety and Reserve Funding
1. Extended Deadlines for Reserve Studies
• SIRS completion deadline moved
ANASTASIA KOLODZIK, PRESIDENT, EXPERT RESERVE SERVICES INC.
Anastasia Kolodzik is president and oversees the reserve study department of Expert Reserve Services, which is a Florida-based, family-owned and -operated company serving all 67 counties. Anastasia works closely with board members and association managers and recognizes this as the key ingredient to preparing a proper reserve study. She has been certified by the State of Florida to teach reserve studies continuing education to community association managers. For more information, call 386-677-8886, email expertprofessionalservicefl@gmail.com, or visit www.expertreserveservices.com
from Dec. 31, 2024, to Dec. 31, 2025, providing critical breathing room.
2. Milestone Inspection Refinements
• Inspections are still required for buildings with three or more habitable stories, but HB 913 delays some deadlines and eases compliance pressures.
3. Flexible Fund-Building Options
• Associations can now fund reserves via loans, lines of credit, or special assessments, approved by a majority vote of total voting interests.
4. Temporary Pause in Reserve Contributions
• After a milestone inspection, associations may pause reserve funding for up to two consecutive budgets (through Dec. 31, 2028) to address urgent repairs. This does not alleviate the requirement to have a SIRS performed. An updated SIRS must be obtained each time the budget for structural components changes.
5. Increased Reserve Threshold
• The monetary threshold for reserves rose from $10,000 to
$25,000 (with inflation adjustment starting Feb. 1, 2026), allowing minor repairs to be excluded from statutory reserves. This does not include items a–f in FS 718.112(2)(g).
6. Reserve Pooling and Accounting Changes
• Reserves may now be pooled, so long as critical items abide by recommended baselines. Associations can switch accounting methods for reserve calculations without a member vote.
B.
Financial Transparency and Protections
1. Annual Financial Reports
• Deadline extended from 120 to 180 days after fiscal year-end.
• Boards must now include signed affidavits confirming timely delivery of financial statements.
• Reducing the level of financial reporting now requires a majority vote of all voting interests, not just those present at a meeting.
2. Budget Oversight and Limits
• If a proposed operating budget exceeds 115 percent of prior year assessments, a substitute budget (excluding discretionary spending)
must also be presented, and member approval secured. This only applies to monthly operations and does not include traditional and structural reserves.
C. Digital Access & Records
1. Official Records Online
• Bank statements, ledgers, affidavits, meeting minutes, and recorded video conference recordings (for at least 12 months) are now official records and must be uploaded within 30 days to the association website or mobile app.
2. Video Conferences and Electronic Voting
• Boards may conduct meetings virtually; notices must include hyperlinks and physical meeting addresses.
• Electronic voting is authorized when 25 percent of unit owners petition for it.
• Physical meetings must occur within 15 miles or within the same county as property.
D. Manager Oversight and Conflict of Interest
1. CAM Licensing and Accountability
• Community association managers (CAMs) with revoked licenses are barred from holding any license or ownership role in a firm for 10 years.
• All CAMs and firms must maintain online DBPR licensure accounts and update assignment data promptly.
• Contracts must include a 12-point-font compliance statement, professional standards cannot be waived, and managers must attend at least one board or membership meeting annually.
2. Conflict Disclosure Requirements
• Inspectors, engineers, and contractors bidding on SIRS or milestone inspections must disclose potential conflicts in writing (e.g., intent to do followup work).
• A rebuttable presumption of conflict arises for contracts exceeding $2,500, and these must be disclosed and board approved.
• Boards may void conflicted contracts without requiring 20 percent homeowner approval.
E. Insurance and Sales Process
1. Insurance Updates
• “Adequate insurance” may now be based on replacement cost as determined by an independent appraisal (required every three years).
• For condominiums of three or more associations, insurance must cover probable maximum loss from a 250-year windstorm event.
2. Presale Disclosure Extension
• Buyers have seven days (up from three) to rescind a nondeveloper resale contract following disclosure.
F. Association, Board, and Regulatory Oversight
1. Expanded Division Authority
• The DBPR Division of Condominiums gains authority over
milestone inspection compliance, insurance and bonding mandates, board education, and SIRS reporting.
2. Swift Repair Authorization
• Boards are empowered to take immediate action on structural repairs to prevent safety issues—without delay.
3. Increased Digital Engagement
• Greater participation and transparency are mandated: electronic voting, virtual meeting options, accessible records, and digital communications are now required.
EXPECTED IMPLICATIONS AND BENEFITS
Balanced Financial Burden
• Homeowners, especially those in aging buildings, gain flexibility in funding required reserves—loans, lines of credit, or special assessments rather than steep upfront fees.
Affordability for Vulnerable Residents
• Pausing reserve contributions during critical repairs helps retirees and low-income homeowners avoid unaffordable spikes in HOA dues.
Preservation of Property Values
• Flexibility and deadline extensions ease developer and homeowner distress, reducing the sharp devaluation seen in older units due to excessive mandatory fees. Governance and Market
Efficiency
• Stronger rules for CAMs, conflict disclosure, digital recordkeeping, and inspection oversight promote accountability, reducing the potential for mismanagement.
Enhanced Safety Without Overreach
• Safety remains a core goal; boards are empowered to act quickly.
WHAT ASSOCIATIONS NEED TO DO NEXT
Action Area
Reserve Planning
Funding Mechanisms
Recordkeeping
Meetings & Voting
CAM Management
Conflict & Procurement
Insurance
Education & Governance
Association Responsibilities
Review SIRS timelines; plan to meet Dec. 31, 2025, deadline; update SIRS when budget changes
Decide whether to use loans, lines of credit, or special assessments; secure majority vote
Ensure all required documents are posted online within 30 days
Update bylaws to allow video conferences, electronic voting; ensure physical meeting locations
Verify CAMs are licensed; maintain DBPR compliance; include required clauses in management contracts
Adopt processes for conflict disclosures and bidding; void conflicted contracts if needed
Commission independent appraisals every three years; ensure adequate coverage per standards
Train board and CAM personnel; stay in communication with DBPR and local agencies
Consulting with legal counsel, reserve specialists, engineers, and financial advisors is key to meeting new compliance timelines and optimizing the flexibility HB 913 offers.
CONCLUSION
HB 913 reflects a mature legislative response to the complexities of condominium safety and solvency: foundational structural measures remain but with added flexibility, stronger governance, consumer protections, and affordability mechanisms. As structures age and hurricane risks persist, these reforms aim to protect both homeowners’ safety and finances—and enhance transparency in condominium governance.
Even as HB 913 marks a new chapter in Florida’s condominium regulation, implementation will be complex. Associations must act—review policies, update contracts, train staff, and hold meetings to ensure compliance. Done well, this law could set a national standard for balancing safety mandates with financial well-being in multifamily housing. n
Photo by iStockphoto.com/ThongSam
Top Budgeting Mistakes HOA Boards Should Avoid
BY CAMILLE MOORE
B
udgeting is one of the most critical responsibilities of an HOA board, yet it’s also one of the most common sources of missteps. A wellconstructed budget helps ensure financial stability, supports longterm planning, and reinforces resident trust. But even the most wellintentioned boards can fall into avoidable traps that undermine community success.
Understanding the most common budgeting mistakes is the first step in establishing a solid financial foundation for your association. Below are key pitfalls every board should work to avoid.
UNDERESTIMATING EXPENSES
Too often boards attempt to maintain last year’s budget levels without accounting for actual cost increases. This may seem fiscally responsible in the short term, but underestimating recurring expenses, such as landscaping, insurance, or utilities, can result in mid-year shortfalls and unplanned adjustments.
Accurate budgeting starts with updated vendor contracts, market comparisons, and a clear understanding of inflationary pressures. Skipping this due diligence risks forcing reactive decisions later in the year.
INADEQUATE RESERVE CONTRIBUTIONS
Failing to fund reserves adequately is one of the most serious financial mistakes a board can make. Reserves are intended to cover the cost of major capital repairs and replacements such as roofing, paving, or mechanical systems; and underfunding them leaves the association exposed to risk.
Boards should work from a professional reserve study and review it regularly to ensure contribution levels align with future needs. Relying on special assessments or emergency loans is not a sustainable strategy.
NOT ACCOUNTING FOR DELINQUENCIES
Budgeting based on 100 percent collections is unrealistic in most communities. Delinquent assessments are an unfortunate but expected aspect of association management.
Boards should use historical data to estimate an appropriate delinquency rate and incorporate it into their annual projections. Accounting for this variable helps ensure adequate cash flow and avoids operational disruptions.
OVERLOOKING HISTORICAL TRENDS
A budget built without reference to prior years’ performance is little more than an educated guess. Reviewing historical budget-to-actual reports provides valuable insights into spending patterns, cost overruns, and underfunded categories.
Trend analysis enables more precise forecasting and helps boards make informed adjustments. Without it, boards risk repeating past miscalculations.
REALMANAGE
If you’re looking for professional guidance, RealManage offers a suite of services tailored to help HOA boards like yours operate smoothly and ethically. From governance best practices to financial management, we’ve got you covered. For more tips, insights, and resources, check out the RealManage blog at www.realmanage.com/blog. It’s packed with educational content designed to empower board members and promote stronger communities. Let RealManage be your partner in building a better community. Contact us to learn more at www.realmanage.com/lp/proposal-request
TREATING THE BUDGET AS STATIC
The budget should not be viewed as a fixed document. Economic conditions, service needs, and vendor pricing can all shift throughout the year. Boards that fail to monitor and adapt will risk misalignment between actual expenditures and budgeted figures.
Regular financial reviews, ideally every month, allow boards to make timely course corrections and maintain fiscal control.
FAILING TO ENGAGE PROFESSIONALS
Creating a budget is a complex task that often requires specialized expertise. Relying solely on volunteer board members, particularly those without financial backgrounds, can lead to errors in forecasting, reporting, or regulatory compliance.
Boards should collaborate with experienced community managers, reserve analysts, accountants, and legal counsel when appropriate. A collaborative approach reduces risk and strengthens the final product.
POOR COMMUNICATION WITH HOMEOWNERS
Even the most accurate and well-crafted budget can lead to friction if it is not communicated effectively. Homeowners are more likely to support financial decisions when they understand the reasoning behind them.
Boards should take a proactive approach by sharing summaries, hosting informational sessions, and clearly outlining how assessments are being used to support the community’s priorities. Transparency fosters trust and promotes a cooperative environment.
BUDGETING WITHOUT A STRATEGIC OUTLOOK
A budget should not only meet current operational needs but also support long-term goals. Unfortunately, many boards budget year to year without integrating future planning.
Major improvements, infrastructure replacement, or amenity upgrades should be anticipated and included in multi-year planning efforts. Aligning the budget with a long-range vision allows boards to lead more effectively and avoid financial strain when major projects arise.
AVOIDING MISTAKES STARTS WITH THE RIGHT MANAGEMENT PARTNER
Avoiding these common budgeting errors requires diligence, planning, and the right support. Associations that prioritize financial discipline and long-term strategy are better positioned to maintain property values, meet resident expectations, and adapt to changing conditions. n
Photo by iStockphoto.com/Natalya Kosarevich
Negotiation Tips
BY BETSY BARBIEUX, CAM, CFCAM, CMCA
Today you have likely negotiated several times. It might have been about which restaurant to choose for lunch, the bedtime for your children, or a misunderstanding at work. Your day is filled with interactions and transactions with others that are smaller and larger types of conflicts that often require negotiation with the other person.
Conflicts can happen at home, work, or play. So, negotiation will depend first on the relationship. Is it an employer/employee, a parent/ child, spouse, manager/resident, or manager/board member? The type of relationship will determine the type of conflict resolution and negation tips applied. Not all situations are the same.
SEPARATE THE PERSON FROM THE PROBLEM
One of the hardest things to do in negotiating is to separate the person from the issue. Whether you like the person or not should not be a factor when negotiating. Avoid assigning any motive to the person’s words or actions. Stick to the facts. When negotiating, it’s hard to disregard the history of the situation such as underlying betrayal, mistrust, disagreements, and unresolved conflicts.
USE YOUR LISTENING SKILLS
Listen carefully. Remember you have two ears and one mouth. Speak with words the other person will understand. Don’t talk down to them. Active
listening includes asking open-ended questions to probe for the underlying meaning or needs. Don’t let the questions sound like an interrogation. Use the looping technique—that is, restating back to the person what you believe he or she said.
DANGERS OF PRESUMPTION
When you presume the motives of others, you will likely assign a negative one that presumes the person’s actions are directed at you. They may be, but maybe they are not. The result is that future conversations with this person are met with suspicion. Presuming motives erodes trust and goodwill. Take time to have a conversation with the person to clarify her words or actions. Without that conversation, you may come to an
incorrect conclusion. That wrong conclusion may cause you to make the wrong decision, whether the decision is a course of action or an opinion of the person.
FOCUS ON INTERESTS, NOT POSITIONS
If both parties stay focused on what they want, they are likely at odds with each other. Neither one wants to give in or lose. It’s an often-used illustration, but it helps explain this point. Two people are negotiating over an orange. They both want it (that’s their position). If they stay at the level of “positions” (I want it), there is no way to resolve the dispute without one (or both) of the parties “giving in.” If they can get to the interests, however, more options open up. For example, if one party wants to bake with the orange peel and the other party wants to eat the orange, both parties could achieve 100 percent of their interests. If they had focused strictly on their positions, they probably would have agreed to cut the orange in half, thereby obtaining only 50 percent of their interests. It is not always easy to move past the position to the interest of each party, but it is worth trying for a mutually positive resolution.
BEFORE YOU DECIDE, IMAGINE ALL POSSIBILITIES
When negotiating with another person, brainstorm all options. Don’t discard any ideas yet. Try to be creative and think of as many options or courses of action as possible.
USE OBJECTIVE CRITERIA
Try to stick to the facts. Be objective, not emotional. Use data, written documentation, policies, and objective criteria. Try to make the issue less personal. Watch out for phrases like “you always” and “you never.”
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/cammat ters. For more information, contact Betsy@FloridaCAMSchools.com, call 352-326-8365, or visit www.FloridaCAMSchools.com.
KNOW YOUR BEST—AND WORST—OUTCOMES
Each person should be clear about his or her best outcome and worst. The best outcome is the two can move forward though it may be in a mutually redefined relationship. The worst outcome is the two will walk away separately and go their own way.
DIRTY TACTICS
Be aware of the manipulative, dirty player who has or uses dubious intentions, psychological warfare, personal attacks, good guy/bad guy tactics, threats, and deliberate misrepresentation.
Sam Horn’s Tongue Fu!: How to Deflect, Disarm, and Defuse Any Verbal Conflict offers practical strategies for navigating challenging conversations and transforming conflict into cooperation. Here are three of her negotiating tips:
Horn emphasizes the crucial importance of maintaining calm and composure during verbal attacks or disagreements. By staying unruffled, you can manage your own emotional state, think clearly, and prevent the escalation of conflict. Techniques like deep breathing and mental reframing are key to achieving this.
Horn provides specific guidance on the language we use, highlighting “trigger words” that often escalate conflict and offering “friendly phrases” that foster rapport. A significant takeaway is to avoid accusatory or defensive language like “but,” “should,” “no,” or “can’t because.” Instead, she advocates for constructive alternatives like “and” (instead of “but”), “next time” (instead of “should”), “sure, as soon as” (instead of “no, you can’t because”), and turning orders into polite requests. This shifts the focus from blame and limitation to solutions and cooperation.
A fundamental principle is to approach interactions with empathy and a solution-oriented mindset. Horn suggests actively listening to understand the other person’s perspective and acknowledging their emotions. When people complain, instead of explaining or making excuses, she recommends the “AAA Train”: Agree, Apologize, Act. This means acknowledging the person’s right to feel upset, expressing regret, and then taking action to address the issue. The goal is to move past fault-finding and collaboratively seek solutions, turning potential conflict into an opportunity for growth and understanding.
Remember, you learn more with your mouth closed and your ears open. n
Reader's Choice Award Spotlights
Editor’s Note: FLCAJ would like to congratulate these three outstanding 2025 Readers’ Choice Awards winners! (For a full list of 2025 RCA winners, please read the March 2025 issue or visit www.fcapgroup.com/flcaj/readers-choice/
Dania
S. Fernandez & Associates P.A
Diamond Level Winner—Legal Services
(Winner 2025 and seven previous RCA wins)
We’re honored to be recognized as a Readers’ Choice Award winner. Thank you to everyone who has trusted our firm throughout the years. It’s an immense pleasure not only to represent condominium and homeowner associations but also to be a source of guidance for our clients, investors, managers, owners, and tenants along the way.
Our commitment to excellence is evident in every aspect of our work. We take pride in our ability to navigate complex legal landscapes and deliver results that meet and exceed our clients’ expectations. Our dedication to our clients is unwavering.
It means a great deal to be recognized for our continuing efforts to serve boards of directors, owners, and tenants through offering board member certification courses, workshops, and webinars across Miami-Dade and Broward Counties. Our educational initiatives are designed to empower our clients with the knowledge and skills they need to make informed decisions and effectively manage their communities.
We love what we do. We work hard to ensure we go the extra mile for our clients by providing valuable resources, expert consultations, and representation. Our firm provides a team approach to legal representation. We are not just your legal representative; we are a team player working in tandem with the board of directors, management offices, insurance agents, and accountants. We understand the value of community, and we strive to maintain and strengthen that community along the way.
The Law Office of Dania S. Fernandez & Associates P.A. is known for excellence in legal matters involving condominiums and homeowner associations, real estate litigation and transactions (commercial and residential closings), and insurance claim work (plaintiff) within Florida. Our expertise in these areas is unmatched, and we are committed to upholding the highest standards of legal practice.
Our firm’s success is built on a foundation of trust, integrity, and professionalism. We are grateful for
our recognition and remain dedicated to continuing our tradition of excellence. As we look to the future, we are excited about the opportunities to further serve our community and positively impact the lives of those we represent.
For more information on Dania S. Fernandez & Associates P.A., call 305-254-4492 or visit daniafernandez. com. We are here to help you with your legal needs and look forward to serving you.
FirstService Residential
Diamond Level Winner—Management Companies (Winner 2025 and ten previous RCA wins)
Property management is a balancing act. When you lead your community on a path to change, every decision is an important one. With competing priorities, juggling it all as a community leader can seem complex, but it doesn’t have to be.
At FirstService Residential we’re simplifying property management. Our hospitality-minded teams serve residential communities across the United States and Canada. We partner with boards, owners, and developers to enhance the value of every property and the life of every resident. We have the expertise and depth of resources to anticipate needs and respond. Residents can count on 24/7 customer care and tailored lifestyle programming, amenity activation, and technology for their community’s specific needs. Market-leading programs with FirstService Financial and FirstService Energy deliver additional levels of support.
Boards and developers select FirstService Residential to realize their vision and drive positive change in the communities in their trusted care. With our professional scale, we’re big enough to make your budget go further, and our service-first philosophy means we don’t stop until what’s complicated becomes uncomplicated—to make life simplified.
For more information about FirstService Residential, visit LifeSimplified.com today!
CEPRA Landscape
Gold Level Winner—Landscaping (Winner 2025 and one previous RCA win)
CEPRA isn’t just a landscape company—it’s a labor of love that grew out of decades of handson experience and a desire to do things differently.
Founded in 2015 by people who live and breathe this work, CEPRA remains proudly owned by its founders, not by private equity or outside investors. This independence and autonomy allow us to focus on what really matters: doing the right thing, taking care of our people, and reinvesting in their growth and well-being.
We believe in building relationships that last, partnering with clients who share our values, and continually providing advancement for our teams.
Customers, Employees, Products, Reputation, and Advancement—This is CEPRA. It is an acronym that symbolizes the source of our success and what’s needed for our brand to thrive. When we live and work by these core values, our success is bountiful. These values are the foundation of our success, and they guide every decision we make.
We’re not here to follow the crowd or chase shortcuts. We’re here to set a new standard for what a landscaping company can be: one built on trust, hard work, and a vision for the future.
Our name reminds us of our purpose every time we see it, hear it, and say it. It represents a new era and a new standard for landscaping services. CEPRA. See the difference.
For more information about CEPRA Landscape, visit www.cepralandscape.com. n
