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Published February 3, 2020
Two weeks ago, I wrote to you about House Bill 623 that is making its way through The Florida Legislature. Another change to the law currently included in the bill is the following language:
718.112 Bylaws.—
(1) GENERALLY.—
(c) Any provision of the declaration, the association bylaws, or reasonable rules or regulations of the association which diminish or infringe upon any right protected under the Fourteenth Amendment to the United States Constitution or Art. I of the State Constitution is void and unenforceable without further action of the association. The association may record a notice in the public records of the county in which the condominium is located evidencing its intention to not enforce such provision. The failure of the association to record a notice in the public record may not be the basis for liability or evidence of discrimination or a discriminatory intention.
To simplify, the 14th Amendment made The Bill of Rights (The first ten amendments to the Constitution) applicable to the states. So this law basically says no provision of your governing documents can infringe upon the rights you have under the Bill of Rights. All of you know several of these rights such as the right to free speech, freedom of assembly, and freedom of religion.
There is plenty of law out there that says when you move into an association, you may give up some of the rights you may ordinarily have in your private home. You do this by agreeing to be bound by the governing documents. For example, courts have upheld the rights of Florida associations to prevent the use of the common elements for religious purposes, allowed associations to impose reasonable restrictions on speech through time limitations at meetings, impose restrictions on placement of political signs on the property or even placement of religious symbols in excess of certain sizes on your windows and doors.
The adoption of this proposed amendment by The Florida Legislature may throw all of these restrictions into doubt, including another one I haven’t mentioned yet. The Second Amendment is the right to bear arms. Inasmuch as Florida law allows associations to prohibit alcohol use on the common elements and prohibit religious ceremonies on the common elements I always opined that the association had the right to ban weapons on the common elements via a rule. If this proposed amendment passes, no way would an association be allowed to ban guns from the common areas.
I have serious concerns that if this amendment passes, associations will potentially be embroiled in case after case, where the association attempted to impose all of the reasonable restrictions mentioned above, and unit owners taking the position that the association is prohibited from doing so because it violates their constitutional rights. Until now, you couldn’t sue an association for a violation of these rights inasmuch as the action by the association did not constitute “state action.” This new statute changes all that if it passes and will open a Pandora’s box and flood of litigation between associations and their owners.
If you are a believer that associations are notorious for not providing their owners with rights guaranteed by the U.S. Constitution, this new proposed law may not bother you. If on the other hand you believe that the association should still be able to impose reasonable restrictions in order for all of us to live in harmony with each other, this new law should bother you. A LOT.
Tags: Condo and HOA Laws, Law and Legal
Stop and Take a Look when you see the FLORIDA RISING MAGAZINE IN A FEW DAYS.
We are the new marketing company for the magazine, Today We signed a Contract to produce and manage: The FLORIDA RISING MAGAZINE – Is one of 18 magazines we publish for other companies and some associations.
FRM has over 118,000 Emails in their Database and over 47,300.00 Paid Subscriptions to date. We will send this publication all over Florida and it even gets sent to property condo owners living up in the northern states.
Thank You for reading the FRM sponsored by THE STATE OF FLORIDA PROPERTY MANAGEMENT ASSOCIATION
The Publishing will still be handled by SFPMA, Noting will change. Only Graphic Design and Promotions will be at a different level.
We wish to take our publication to the next level so bringing in your agency will be a great help to our Members, Advertisers and our Industry. ~Frank J Mari / Executive Director
Tags: Florida Rising Magazine, SFPMA Social Media
Welcome to the board! Being a new HOA board member, you are going to be wearing many different hats and stepping into a few challenging roles to help make sure your HOA is running smoothly. Now that you’ve been elected, the big question is…What’s next?
For many newly elected board members it is their first time in the position, presenting a pretty steep learning curve. Lucky for you, Vesta has a few tips to get you more comfortable in your new position.
Just follow these board member basics and you’ll have all the tools you need to become the best board member you can be!
1. Understand your role
While you volunteered for this position, you also should realize that it is not to be taken lightly. The board is responsible for the management of all aspects of the association. You are a key element in ensuring that your association continues to operate and that all of the residents are happy with the HOA they chose to live in. Vesta has an article on understanding the roles of the HOA board that you can read here.
The best way to quickly learn how your association achieves these goals is to read your association covenants, by-laws and other governing documents. Don’t be afraid to ask veteran board members about their responsibilities and the minutia of the job. Often experience is the best teacher, so talking to seasoned board members is a great way to figure out what to do and more importantly, what not to do.
2. Team up with a great property management company that you can trust
If your board works with a property management company that you trust to do right by your community, you can use them as a resource to help you ease into your new role! Working effectively with your management company is a great way to make sure you’re getting everything you can out of what they offer.
Having a close relationship with your HOA’s CAM will open doors for you and the rest of your board that will lead to efficient and effective methods of management. As a part of their services, your CAM should be providing you and your residents with clear communication in enforcing your association’s policies and assisting with your budget, financials and even managing your vendors!
3. Participate
If you want your board to be effective, all board members should be participating, both during and between meetings. Make sure you’re going to every meeting you can, volunteering for projects and taking an active role in the management of your community.
Everyone on the board should be doing whatever they can to make every meeting count. When a meeting is run poorly, more issues are created than solved. While making sure your meetings are productive can be a tall order, it can really be as simple as following procedure, reading the agenda, keeping accurate minutes and reviewing what was discussed at the end of the meeting.
You can find some tips about leading productive board meetings here.
4. Communicate
Many of your neighbors will probably agree that communication between the board and community is vital to the success of a community. Transparency is necessary if you want to maintain a positive relationship between your board and your neighbors. Make sure you keep your community informed about issues, ideas and changes that are going on in the community you both live in.
5. Take advantage of the Community Associations Institute
In their own words, CAI is an international membership organization dedicated to building better communities. CAI serves community associations by providing guidance through seminars, workshops, conferences and education programs for community managers and other industry professionals.
CAI offers many educational services including online training and in-person workshops that you can attend. Many property management companies also host board certification classes that you can attend
Volunteering for your community is rewarding and challenging; it’s important to take some time now to learn about your role as a board member and how to best serve your association. Following these guidelines is a great way to ensure your transition is smooth and that you enjoy your time on the HOA board!
Tags: Condo and HOA, Condo and HOA Board of Directors, Management News, Members Articles
Effective August 2019, the Regulatory Council of Community Association Managers changed the requirements for continuing education for license renewal. The number of hours required have been reduced from 20 to 15 hours each license period. The new requirements are:
(a) Three-hours of legal update seminars. The legal update seminars shall consist of instruction regarding changes to Chapters 455, 468, Part VIII, 617, 718, 719, 720, and 721, F.S., and other legislation, case law, and regulations impacting community association management. Licensees shall not be awarded continuing education credit for completing the same legal update seminar more than once even if the seminars were taken during different years.
(b) Three-hours of instruction on insurance and financial management topics relating to community association management.
(c) Three-hours of instruction on the operation of the community association’s physical property.
(d) Three-hours of instruction on human resources topics relating to community association management. Human resources topics include, but are not limited to, disaster preparedness, employee relations, and communications skills for effectively dealing with residents and vendors.
Three-hours of additional instruction in any area described in paragraph (3) (b), (c) or (d) of this rule or in any course or courses directly related to the management or administration of community associations.
By KBR Legal Rembaum Association Roundup
Tags: Education - Property Management, Education & Licensing, Law and Legal, Management News
In a condo or HOA the normal method to collect delinquent maintenance fees is to send an owner to the attorney. The attorney will then move the process through the courts. This means foreclosure for delinquent maintenance fees. The object is to foreclose and take “intervening title” on properties.
It’s “intervening title” because in most cases the unit still has a mortgage. Soon enough the lender is coming for their collateral. The association can hold title but they cannot sell the unit as it may have a debt attached to it. With luck the association can get this title without too much expense and rent out the unit. That is the only way the association can recover money if somebody does not bid the unit when it goes for sale.
The association foreclosure worked in the past but now it is becoming obsolete.
The rental revenue may cover losses for maintenance fees. It may also cover the rehabilitation of the unit, commissions and marketing of the unit to a renter. There are also the legal costs & fees that the association spent to get the title.
With luck the association can hold on to this unit long enough to recover their money. Its a hard way to recover delinquent maintenance fees. It is also an obsolete maneuver to foreclose to recover money.
This is how it has always been, especially during the real estate meltdown of the last decade. Now, the times they are a changing.
In Florida, an amendment to Florida Statute § 697.07 has been proposed. This new law will entitle banks to step in and take those rents. In essence this completely neutralizes the benefit of foreclosure for community associations.
Delinquent maintenance fees, legal costs, late fees, late interest will remain a loss. Only the lender will benefit when an association forecloses. In other words there will be no good reason for a community association to foreclose on a unit. They will not be able to monetize it should they prevail in court.
These are not isolated events but a trend. Banks may be slow learners but they will always make decisions that will benefit their bottom line in the end.
In South Carolina a bill pre-filed this month would prohibit HOAs from foreclosing at all. This bill would strip this power from associations. “Real property used as a primary residence may not be sold if the action was instituted by a homeowners association attempting to collect unpaid dues, fee, or fines”, the proposed bill states.
These are not isolated events but a trend. Banks may be slow learners but they will always make decisions that will benefit their bottom line in the end.
Association foreclosures are likely to become less common nationwide. This is a good thing! Community associations and their attorneys have long abused this power. Small debts get inflated with legal fees, and the case gets moved to foreclosure. Ultimately this does little to benefit the association.
Eliminating foreclosures will limit community association’s power to collect delinquent assessments. Fortunately, there are other alternatives to recovering delinquent maintenance fees.
People are fallible and don’t always manage their financial affairs well. Such people need a wake up call, NOT their home confiscated.
In 2009, during the height of the real estate meltdown, many properties did not have equity. Originally purchased by “Flippers and investors,” many were simply abandoned. Banks were stalling foreclosure and these properties were sitting there rotting. In those times it made good sense for the association to rush to the courthouse and foreclose on delinquent units.
Today most homes have equity and are appreciating in value. It’s unlikely the current owners would let the property be taken from them if they can avoid it. If equity outweighs the debt it would be foolish to lose a property. Most units delinquent in their maintenance payments will pay without legal intervention.
Eliminating foreclosures will limit community association’s power to collect delinquent assessments. Fortunately, there are other alternatives to recovering delinquent maintenance fees.
Retaining a collection agency that specializes in community association debt is becoming an increasingly popular option.
Many collection agencies work on a contingency basis, while Lawyers get paid regardless of the outcome of the cases they take. This means collection agencies are much more motivated to seek a timely resolution.
Strategies employed by debt collectors have a much lower impact on your community. With a strategy of engagement and education, these agencies are looking to resolve issues and improve communications within the community. This is done with the use of proper notifications, outbound calls, credit bureau reporting, letters sent to mortgage holders, placing of liens, and other techniques.
Frankly, association foreclosure on delinquent owners is obsolete. Even without the change in the laws this method to collect on delinquencies needs to be reconsidered.
It’s time for management companies and boards of directors to think how the future collects and engage specialized collection companies to collect delinquent condo and HOA debts.
Tags: Condo and HOA Collections, Members Articles
Axela Technologies Inc, a specialized collections company servicing Community Associations, announced today the promotion of longtime industry expert Mitch Drimmer to President of Business Development. The appointment comes as the company exceeded 600% growth in 2019 under Drimmer’s leadership.
Axela Technologies, a specialized collections firm servicing the community association industry, has promoted Mitchell Drimmer to President of Business Development. This promotion was precipitated by strong growth in Axela’s collections division in 2019. In his new role, Drimmer will spearhead the formation of a national sales team as the company continues to enter new markets.
In his prior role as VP of Business Development, Drimmer worked with community associations and their management companies to introduce innovative strategies to collect delinquent maintenance fees. Under Drimmer’s watch in 2019, the company expanded operations, and grew its’ client base by over 600%. He has traveled nationwide, speaking at industry events and educating community association managers about the most effective ways to address the ever-present issue of delinquencies, solidifying his position as a thought-leader within the industry.
“Mitch has done a fantastic job getting the word out that there is a new and better way to recover delinquent fees,” says Martin Urruela, CEO of Axela. “He is committed to helping community associations and their managers adopt new technologies to better run their communities and businesses. Above all, Mitch is a fantastic communicator and teacher, and cares deeply about the success and well-being of the communities that we serve”.
Axela believes that legal action and foreclosure should be the measure of last resort when addressing association delinquencies. Through proprietary technologies that automate and streamline the process, Axela customers can escalate a unit to collections easier than ever to start seeing results immediately.
“In the United States, we have over 73 million people living in associations paying almost $100bn in annual assessments. A large percentage of which goes uncollected due to simple process inefficiencies,” states Drimmer. “Our mission at Axela is to ease the burden on managers and boards with the best collection solutions available in the market. It works; as evidenced by the fact that less than 5% of our collection files move to foreclosure. And did I mention we’ve never lost a customer?” quips Drimmer.
Drimmer has worked for Axela Technologies since early 2018, joining the company as the first business development executive. He earned a Bachelor of Arts in History from Hunter College in New York City, and has worked in the community association collections space since 2007.
Tags: Business Articles, Condo and HOA Collections, Management News, Member Highlights
A will is a legal document that lets you communicate your last wishes regarding distribution of your possessions, such as cars, home, money, and other items, to the people who you want to receive these assets upon your death. It also lets you appoint a guardian for minor children.
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With a power of attorney form, you can appoint a trusted person to be your agent to handle financial, health, property or other matters when you cannot take care of things yourself.
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1. Low speed vehicles can only be operated on roadways with a speed limit of 35 MPH or less.
2. Low speed vehicles must be registered (Tag) and insured as with any motor vehicle.
3. To operate a low speed vehicle, you must have a valid drivers license in your possession.
4. Low speed vehicles must be equipped with all safety equipment such as, headlights, tail lights, seat-belts. mirrors etc..
5. Low speed vehicles are subject to all traffic regulations as provided by Florida Statutes and must be registered and insured.
**REMINDER** “Unregistered” golf-carts traveling anywhere within the City is never permitted except when traveling to and from a nearby golf course on a municipal street authorized by the governing municipality and as provided for in Florida Statute 316.2122.
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Tags: Condo and HOA Budgets, Florida Rising Magazine, Golf Car Articles, Management News, Member Highlights
Put your phone down while driving! We all know how dangerous it is to text while driving and the Florida legislature has done something about it. Florida joins 43 other states which allow law enforcement to pull over drivers for texting while driving.
The new law, which was signed by Gov. Ron DeSantis on May 17, 2019, went into effect on July 1, 2019. In explaining his support for the bill, Gov. DeSantis stated that Florida had almost 50,000 motor vehicle accidents in 2016 which were caused by distracted driving and 233 of these accidents resulted in fatalities.
How does this new law change the prior law on texting while driving?
The new law now makes texting while driving a primary offense, meaning that law enforcement can pull you over if they suspect that you are texting on your phone while operating a vehicle. Previously, texting while driving was a secondary offense, meaning that a driver could only be cited for texting while driving if they were pulled over for another offense.
What’s the penalty?
For a first offense, the fine is $30 and for a second offense, the fine is $60. You will also be responsible for paying court costs.
A first offense will be treated as a non-moving violation; a second offense will add 3 points on your license.
Can you use your phone while you are stopped at a traffic light?
Yes, the new law permits drivers to use their phones in a motor vehicle which is stationary.
Can law enforcement confiscate your phone if they see you texting while driving?
No, law enforcement are trained to detect the signs of texting while driving and are not permitted to confiscate or otherwise access your phone without a warrant.
While the law took effect on July 1, 2019, law enforcement will only be issuing warnings until January; after that, officers will start to issue citations.
Ana Cristina Rossi, Esq.
Learn more about Ana Cristina here!
Tags: Law and Legal, Management NewsIn the last few months, a growing number of community associations across Florida are being threatened with litigation because their websites are allegedly not friendly to visually impaired users.
Frankly, not a darn thing. It appears that the lawyers and firms threatening these specious lawsuits are conveniently conflating the obligations found under Title III of the ADA for places of public accommodation with the different set of obligations found in the Fair Housing Amendments Act (FHA) for housing providers.
Or, these lawyers are simply trying to avoid application of the ADA altogether since most private residential communities are not considered places of public accommodation. The ADA requires that every owner, lessor or operator of a “place of public accommodation” provides equal access to users who meet ADA standards for disability.
These lawsuits are attempting to apply the ADA standards for websites to housing providers impacted by the FHA.
These threatened website lawsuits are uniform in style (mostly forms sent in mass) and generally allege that a “tester” was unable to navigate an association’s website, resulting in a discriminatory impact on those who are visually impaired.
The suits allege that community association websites were not accessible to visually impaired persons thus violating the FHA. Community associations are considered housing providers under the FHA and, as such, must make reasonable accommodations for residents and guests with verifiable disabilities.
This is true in the realm of service and support animal requests and these new website lawsuits attempt to expand that obligation to include visually impaired visitors to an association website. It is curious that these testers did not reach out first and request that the allegedly deficient websites be modified for a visually impaired person to more easily navigate the site. Instead, demands are being summarily sent to community associations statewide who have websites in an attempt to reach a quick settlement.
The demand letters offer a conditional release for payment of “reasonable attorney fees” because the attorney sending the letter claims the firm is entitled to compensation for work completed to investigate, research and determine the community association’s noncompliance.
Of course one cottage industry begets another. In addition to a handful of law firms who believe they can generate some revenue with these tester lawsuits, we now also have a number of companies advising communities that they can make their websites compliant for fees ranging anywhere from $2,000-$5,000 and annual hosting around $300-$1,000 per year.
In actuality, the cost depends on the content and functionality of the website including the number of features that must be optimized for the visually impaired. There are also some solutions that are free depending on the website platform.
Many of the demands and threatened lawsuits appear to lack any merit and seem to be merely an attempt to obtain a quick settlement payment from community associations or their insurers.
Many of the communities who have been threatened have website features that are password-protected, are accessible only to owners, or don’t have the features that are the subject of the complaint, so the allegations appear to be specious.
While we can debate the merits of these tester lawsuits and even seek legislative clarification in the upcoming 2020 Legislative Session, in the interim, associations with websites need to speak with experienced counsel to confirm whether or not their association’s website must have the necessary software for disabled users.
This confirmation is particularly important if your community uses its website to list properties for sale or lease. As for the attorneys who have decided to send out these blanket demands without the benefit of further investigation, let’s hope they have a change of heart when associations push back.
Donna DiMaggio Berger is a board certified specialist in condominium and planned development law, a shareholder at Becker Law and the executive director of the Community Association Leadership Lobby.
Tags: Condo and HOA, Condo and HOA Laws, Law and Legal, Management News, Members Articles