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SO HOW ARE ELECTIONS GOING TO WORK? By Eric Glazer, Esq.

SO HOW ARE ELECTIONS GOING TO WORK? By Eric Glazer, Esq.

  • Posted: Nov 14, 2023
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SO HOW ARE ELECTIONS GOING TO WORK?

By Eric Glazer, Esq.

Unfortunately, it looks as if we will still need to social distance when it’s time for our annual elections.  So how do we do this practically?

In a condominium, it’s much easier than an HOA to run the election with social distancing because the procedures allow for mail-in ballots.  The association must still have an in person  “annual meeting” but it can be very small, with only a few people showing up while everyone else tunes in to watch live on their computer.

The votes can be counted by any volunteers in attendance, or the ballots can be forwarded to counsel for the association, who, with volunteers appointed by the board in advance, can count the ballots at the attorney’s office — and everyone can watch live on their computer.  It really is no big deal.

It’s more complicated in an HOA however, because typically HOAs don’t follow the same election procedures that condos do.  Ballots are not mailed in.  People must vote in person, after nominations are taken from the floor.  And, after nominations are taken from the floor, parcel owners are then given a ballot and asked to write in the names of the candidates of their choice. How can nominations be taken from the floor if people are afraid to go to “the floor?”  How can we distribute paper ballots to people who are logged on by the computer?  The truth is….we can’t.

So for HOAs who have real concerns that their election process will be tainted because it’s impossible to comply with the procedural election requirements of their bylaws, I have a suggestion.  AMEND YOUR BYLAWS AND DO IT NOW.  I always thought the HOA election process stinks and that the condo statute is far superior.  Well, now is a perfect time to convince your community that if they want fair elections to occur in their community and that will allow them to vote from home during a pandemic, their docs need amending now.

 

As Eric mentions, amended the HOA By-laws now. It is much easier to amend the By-laws as opposed to the Declarations.

Comment -There is a BIG difference between a Condo and HOA. Two different laws, one association is regulated by the DBPR (Condo) and the other is a half baked regulation for only recalls and elections by the DBPR. HOAs are at the greatest risk. It allows elections to be held in accordance with the antiquated by-laws of the Governing Documents. There are over 10 different ways to hold an election because there are so many variables in the individual by-laws. It is hard enough to hold an HOA election because of quorum requirements. No wonder property owners ignore HOA annual meeting elections and board meetings. It was so simple pre-FS 720.

 

 

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HOW TO COLLECT WHAT’S DUE? By Eric Glazer, Esq.

HOW TO COLLECT WHAT’S DUE? By Eric Glazer, Esq.

  • Posted: Oct 23, 2023
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We are already starting to see an uptick in the amount of owners falling behind on paying their assessments to their association.  It is wise for an association to know how the collections process works in for the board to put in place a policy that works best for the association.

In both condos, Co-ops, and HOAs, the procedure is the same.

  1. To start, the association must first deliver a thirty day written notice of late assessments to the unit owner which specifies the amount owed the association and provides the unit owner an opportunity to pay the amount owed without the assessment of attorney fees.
  2. If the owner fails to bring their account current, the association must then provide the delinquent unit owner with another letter which is a 45 day notice of its intent to file a lien and its intent to foreclose its lien. The association can demand attorney’s fees, interest and late fees in this letter.
  3. If the owner fails to bring their account current, the attorney can record a lien and threaten to foreclose on the lien if their account is not brought current within 45 days.  The association can demand attorney’s fees, interest and late fees in this letter.
  4. If after 45 days the owner still fails to bring their account current, the association may file a foreclosure action in court.

Keep in mind that because the unit owner must receive a 30 day letter, a 45 day letter and another 45 day letter, it takes a long time to bring a delinquent owner into court.  That is why associations may need to rethink their collection process and start it a little earlier.  If not, by the time it gets to court, the owner may by 9 or 10 months delinquent.

Especially in condominium buildings, things are about to get tough.  There are now mandatory inspections, mandatory repairs, mandatory fire sprinkler or ELSS installation, a tremendous rise in insurance and the inability to waive reserves.  Stay on top of your collections.

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Eric Glazer

Eric Glazer graduated from the University of Miami School of Law in 1992 after receiving a B.A. from NYU. He has practiced community association law for three decades and is the owner of Glazer and Sachs, P.A. a five attorney law firm with offices in Fort Lauderdale and Orlando.

Eric is Board Certified by The Florida Bar in Condominium and Planned Development Law.

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Get certified for free IN MIAMI AND WEST PALM BEACH while attending the Condo and HOA Expo.

Get certified for free IN MIAMI AND WEST PALM BEACH while attending the Condo and HOA Expo.

  • Posted: Oct 16, 2023
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South Florida Condo & HOA Expo

Seminars

Learn From Industry Leaders!

Get the tools and information you need to manage your condo or HOA more efficiently.

Regional and national experts will offer insights into the latest industry trends and best practices in legal oversight, financing, maintenance, renovations, energy efficiency, administration, communication and more.

Bring your questions to these lively, informative sessions and come away with a clear blueprint for improved management for the future.
OCTOBER 17TH, 2023 AT 8:30 A.M.
AT THE HYATT GRAND HOTEL IN MIAMI .

 
OCTOBER 19th, 2023 AT 8:30 A.M.
AT THE PALM BEACH COUNTY CONVENTION CENTER
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SO WHERE DO WE STAND NOW IN REGARDS TO RESERVES ? by Rafael Aquino

SO WHERE DO WE STAND NOW IN REGARDS TO RESERVES ? by Rafael Aquino

  • Posted: Oct 04, 2023
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SO WHERE DO WE STAND NOW IN REGARDS TO RESERVES ?

by Rafael Aquino

The use of associations funds is one of the most critical roles a board of directors manages on behalf of its members. Many times the benefit of those funds can make or break an association. It is essential to get a snapshot of what’s going on with the association’s funds before the purchase of your unit and even more so after your purchase. While it may seem challenging to know what is going on before your purchase, the reality is that you can get an idea by reviewing the financials and checking to see the association has a reserve study on file.

 

Not enough homework is done early on by potential buyers, or their agents, to determine the association’s financial strength, and they assume that all is well. That assumption can cost thousands of dollars if made incorrectly. How can you avoid it? The first step would be to dig into the financial statements; within those statements, you’ll know much money your association has in its operating account and reserve account (if it exists.) Second, you can review the Income/Expense (also known as a P&L) to determine if significant variances exist. If they do, you will need to find out why they exist. You can then compare your current operating and reserve account funds to what your reserve study states you should have. The reality is that most associations won’t meet the suggested capital contributions needed within the reserve study; however, you do want to know if the difference isn’t outrageous. If it is, you may decide not to purchase in that building, or if you’re a current owner, it may be time to sell. Remember, it’s not if it will happen, but when it will happen.

  

For individuals wondering what a reserve study is, it is a long-term capital budget planning tool that helps the board of directors and management identify both the physical analysis (useful life) and the financial analysis of the components in the common areas. This tool will allow your board to plan appropriately, project its future projects, and determine when and how the money they do have should be spent. I’ve seen it firsthand where a board wants to upgrade the pool area because they promised the owners they would improve the look of the property, but at the same time the cooling tower needs a significant overhaul. As odd as it may seem for most, this decision is simple; however, that is only true based on the leaders (board) you have appointed.

 

While many communities don’t have reserves, this should not stop you from obtaining a reserve study. The cost to get a reserve study is minimal compared to the information/knowledge you and your board would gain. We strongly recommend our clients obtain it; in fact, we had a client who listened to our suggestion and purchased a reserve study a few months before the budget season. Once they received the study, they quickly realized that it was time to start putting real plans in place. A few months later, that board decided to begin funding the reserves.

 

For those potential buyers looking to purchase in an association, make sure you do your homeowner. For those owners that already own in an association, make sure to ask your board members if they have a reserve study on file and if not to consider getting one. I believe it’s better to know what will potentially come so the proper steps and plans can be taken to either correct and/or communicate it to your membership.

 

As the Co-Founder and CEO of Affinity Management Services, Rafael P. Aquino leads his team to redefine excellence. They serve community   associations   efficiently

 

and effectively with dedication and passion. Rafael’s energy and positive spirit is the foundation of Affinity Management Services’ company culture, which instills enthusiasm and excitement when providing expert advice to its board members and relieving the day-to-day burdens of running a community association.

Since 2007, Rafael has developed a work culture that values responsive and high-quality services. He has led his team by following a proactive vs reactive philosophy. The same approach Rafael instills in the day to day operations of each association. Today, Affinity Management Services maintains its success and benefits as a result of the foundation Rafael has built and continues to foster by providing educational seminars, continuing education classes for association managers and board members alike.Rafael and his team help condominium and homeowners’ associations save money and improve their communities. His calm, personable, and service-oriented nature helps him to establish strong relationships with ease. Rafael is known as a sincere and honest leader who looks out for the best interests of his clients and communities, and he strongly advocates for their needs. His role requires coordination and communication, as such he takes logical and intelligent steps to approach challenges head-on.


As a graduate of Florida International University’s electrical engineering program and a licensed community association manager, Rafael’s education and skills equip him with unique insights to tackle complex problems through critical thinking. He understands how each component within a system works together in order to effectively arrive at solutions, techniques, and conclusions. Therefore, as he manages the multiple challenges of running a community association management company, he understands how each property is its own unique system and tailors’ specific services to assure that all their needs are met.

For more information about Rafael P. Aquino and Affinity Management Services please visit www.ManagedByAffinity.com or call 1-800-977-6279
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FLORIDA’S NEW “LIVE LOCAL” ACT By Eric Glazer, Esq.

FLORIDA’S NEW “LIVE LOCAL” ACT By Eric Glazer, Esq.

  • Posted: Sep 27, 2023
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FLORIDA’S NEW “LIVE LOCAL” ACT

By Eric Glazer, Esq.

Here’s a new law that is already causing chaos in our communities.  As many of us are unfortunately already learning, there is a lack of affordable housing in our state.  In order to combat this problem, The Florida Legislature passed a new law.

The Live Local Act is a new Florida law that was designed to increase affordable housing development. The nearly 100-page piece of legislation allocates up to $811 million for affordable housing programs. It also carves out a variety of tax incentives, land-use policies and other strategic initiatives to encourage developers to build more affordable housing in the state.  Among them is a provision that modifies the approval process for new housing developments by requiring local governments to relinquish control of several zoning and land-use regulations.

Although I have not had the time to review the new law, it appears that the major problem with the new rules is that apparently, local officials are preempted from weighing in on zoning, density and height restrictions for eligible developments. Qualifying projects are defined as any residential housing project on commercial, industrial or mixed-use land that allocates at least 40 percent of units to be affordable for residents earning up to 120% of the area median income.

Think about this for a moment.  Think about a piece of land in your community that is commercial, industrial or mixed use and that is only a story or two tall.  Think about the fact that your local zoning laws require the structure to remain only a story or two tall.  Now think about throwing those height restrictions in the garbage, and instead allowing a developer to build affordable housing that is 30 stories tall on all of these properties, and nobody in your community has the power to stop it.  That’s the position that developers are certainly taking.

All of your local laws regarding height and density would be pre-empted by this new law and affordable housing, as tall as can be, would be the new law of the land.  Cities like Doral and Miami Beach are already fighting back.  No doubt that the courts will have to weigh in on this one.

Should the State of Florida be allowed to make a law that pre-empts your local zoning code and instead allow affordable housing to be built on any commercial, industrial or mixed-use property, without any restriction regarding density or height?  Seems scary to me.

 

 

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OWE MONEY? YOU MAY NOT BE ALLOWED TO RUN FOR THE BOARD By Eric Glazer, Esq.

OWE MONEY? YOU MAY NOT BE ALLOWED TO RUN FOR THE BOARD By Eric Glazer, Esq.

  • Posted: Sep 24, 2023
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OWE MONEY?  YOU MAY NOT BE ALLOWED TO RUN FOR THE BOARD

By Eric Glazer, Esq.

I feel like I handled a thousand annual meetings in the last month, flying from one to the other.  When running the meetings, and depending upon whether the association is a condominium or HOA, it is important to know if the person running for the board, or even the winner of the election, is eligible to serve because they owe money to the association.

Let’s start with condominiums first, Florida Statute 718.112 (2)(d) states:

A person who has been suspended or removed by the division under this chapter, or who is delinquent in the payment of any assessment due to the association, is not eligible to be a candidate for board membership and may not be listed on the ballot.

So, in a condominium, the person’s eligibility to run and initially serve on the board is decided when the owner submits their notice to be a candidate, and that is no less than 40 days before the election.  If at that time,  the owner is delinquent in any assessment their name cannot be printed on the ballot and sent to the unit owners.  On the night of the election the association need not worry if anyone is delinquent and cannot serve because their name was already excluded from the ballot.

The law in a Florida HOA is much different.  Florida Statute 720.306(9)(b) states:

A person who is delinquent in the payment of any fee, fine, or other monetary obligation to the association on the day that he or she could last nominate himself or herself or be nominated for the board may not seek election to the board, and his or her name shall not be listed on the ballot. 

Lots of differences between the two statutes here.  In a condominium, you can only be prevented from being placed on the ballot if you owe an assessment.  In an HOA, your name can be prevented from being placed on the ballot if you owe any fee, fine or other monetary obligation to the association; a far more restrictive provision in an HOA.

In addition, remember that in most HOAs, nominations are taken from the floor on the night of the election.  That is the “day that he or she could last nominate himself or herself or be nominated for the board.”  Therefore, on the night of the election, we need to know if any of the proposed nominees owe any fee, fine or other monetary obligation.  If so, their name cannot be accepted into nomination.  They cannot run.

ONCE A DIRECTOR BECOMES 90 DAYS DELINQUENT

The Condominium Act states:

718.112: Director or officer delinquencies.—A director or officer more than 90 days delinquent in the payment of any monetary obligation due the association shall be deemed to have abandoned the office, creating a vacancy in the office to be filled according to law.

The Homeowners Association Act states:

720.306(9)(b) A person serving as a board member who becomes more than 90 days delinquent in the payment of any fee, fine, or other monetary obligation to the association shall be deemed to have abandoned his or her seat on the board, creating a vacancy on the board to be filled according to law.

 

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New law makes condos fix everything – Episode 66

New law makes condos fix everything – Episode 66

  • Posted: Sep 06, 2023
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Attorney Eric Glazer and co-host Karen Curtis will be taking your calls and YouTube questions on whatever topic you need answers to or whatever you need to get off your chest. Call us at 877-850-8585 during the show or chat with us on YouTube Live Chat. Condo Craze & HOAs Live on YouTube

Sunday@11am on YouTube! Link to the live stream

 

 

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BOARD MEMBERS BETTER BE CAREFUL By Eric Glazer, Esq.

BOARD MEMBERS BETTER BE CAREFUL By Eric Glazer, Esq.

  • Posted: Aug 22, 2023
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BOARD MEMBERS BETTER BE CAREFUL

By Eric Glazer, Esq.

Board members I’m telling you now……..be careful.  I’m seeing it already.  Unit owners are starting to freak out over the passage of huge assessments to cover the costs of mandatory inspections, mandatory repairs and massive increases in insurance rates.

As we know, we’re not talking about pesky increases to the monthly cost of living in your home.  We are talking about increases that will cause many to no longer be able to afford to live in their home at all.  We are talking about increases that will force people to sell and no longer live in the condominium that they have lived in for perhaps decades.

Notwithstanding the fact that none of these increases are the result of anything the Board members did or didn’t do, board members know who is likely to be blamed for this financial disaster many unit owners find themselves in ——the Board members.  So what else is new?

Board members are used to being blamed when things go wrong even though it’s not their fault.  That comes with the territory.  They get yelled and screamed at, the meeting ends and then it’s usually over.  Maybe there’s some nasty e-mail that float around the community.  This time it’s different.

Even if unit owners come to the realization and accept that they can’t afford to live in the condo any longer, the question is….so where can they go?  Every condo seems to be in the same shape.  Or if owners choose to move to a place that’s simply newer and not yet required to perform these inspections and repairs, you can bet they cost a lot more money than where they currently live.  There’s simply no place to turn to.

When there is desperation and fear, people become irrational and often times violent and that is why I honestly fear for the safety of condominium board members throughout the state.  This is not a knock on the millions of law abiding condominium owners throughout the state.  They  were thrown into this position because The Florida Legislature failed all of you.  Instead of always requiring condominium owners to put away money for a rainy day, The Florida Legislature cow-towed to the whims of developers, law firms and other special interest groups who always lobbied against mandatory reserves.  The only reason why mandatory reserves are now required is because 98 innocent men, women and children died at The Champlain Towers in Surfside as a result of not having nearly enough money on hand to make obviously needed structural repairs in their condominium.

So Board members……….you didn’t volunteer in your community to get punched out or worse at your board meetings.  My advice is….when you know you’re about to pass a special assessment at a meeting, and at that meeting people are going to be going crazy……protect yourselves.  Make sure there are police or at least security at the meeting.  Better be safe than sorry.

 

WE WILL TAKE YOUR CALLS AND ANSWER YOUR CONDO AND HOA QUESTIONS THROUGHOUT THE HOUR. CALL US AT 877-850-8585 DURING THE SHOW.

 

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