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MANDATORY CONDOMINIUM & COOPERATIVE BUILDING INSPECTIONS & NON-WAIVABLE RESERVE REQUIREMENTS SENATE BILL 4-D

MANDATORY CONDOMINIUM & COOPERATIVE BUILDING INSPECTIONS & NON-WAIVABLE RESERVE REQUIREMENTS SENATE BILL 4-D

  • Posted: Dec 18, 2024
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MANDATORY CONDOMINIUM & COOPERATIVE BUILDING INSPECTIONS & NON-WAIVABLE RESERVE REQUIREMENTS

We are reposting this, for all the buildings That have not had inspections…..

SENATE BILL 4-D

With home insurers leaving Florida in droves, and following pressure from members of both political parties in the legislature to actually do something about it, in May 2022, the governor called a special legislative session to address the problem. A very real concern to the insurers is the effect of both time and inclement weather on Florida’s aging high-rise buildings. Until now, and for the most part, Florida law largely ignored these concerns. Enter Senate Bill 4-D (SB 4-D) which already became effective upon being signed into law by Governor DeSantis on May 26, 2022. This new piece of legislation addresses condominium and cooperative building inspections and reserve requirements (while this article primarily addresses these new laws in the context of condominium association application, they are equally applicable to cooperative associations).

By way of background, during the regular legislative session, there were several bills introduced in the Florida House of Representatives (House) and in the Florida Senate (Senate) addressing building safety issues, but none of them were passed into law due to the inability to match the language of the bills in both the House and the Senate which is a requirement for legislation to pass and go to the governor for consideration. As such, it was a little surprising to many observers that the legislature was able to approve SB 4-D in essentially a 48-hour window during the special session in May. The language used in SB 4-D was initially drafted into a proposed bill in November 2021. At that time, and during the most recent legislative session, input was provided by many industry professional groups including engineers, reserve study providers, and association attorneys. Many of these industry professionals indicated that there were challenges with some of the language and concepts being proposed in SB 4-D during session.

Notwithstanding these challenges, and in an effort to ensure some form of life safety legislation was passed this year, SB 4-D was unanimously approved in both the House and Senate and signed by the governor. A plain reading of this well intended, but in some instances not completely thought-out, legislation evidences these challenges. Some will say it is a good start that will need significant tweaking, which is expected during the 2023 Legislative Session. Others praise it, and yet others say it is an overreach of governmental authority, such as an inability to waive or reduce certain categories of reserves. You be the judge. We begin by examining the mandatory inspection and reserve requirements of SB 4-D.

I. MILESTONE INSPECTIONS: MANDATORY STRUCTURAL INSPECTIONS FOR CONDOMINIUM AND COOPERATIVE BUILDINGS. (§553.899, Fla. Stat.)

You will not find these new milestone inspection requirements in Chapters 718 or 719 of the Florida Statutes, but rather in Chapter 553, Florida Statutes, as cited above.

MILESTONE INSPECTIONS:

The term “milestone inspection” means a structural inspection of a building, including an inspection of load-bearing walls and the primary structural members and primary structural systems as those terms are defined in section 627.706, Florida Statutes, by a licensed architect or engineer authorized to practice in this state for the purposes of attesting to the life safety and adequacy of the structural components of the building and, to the extent reasonably possible, determining the general structural condition of the building as it affects the safety of such building, including a determination of any necessary maintenance, repair, or replacement of any structural component of the building. The purpose of such inspection is not to determine if the condition of an existing building is in compliance with the Florida Building Code or the fire safety code.

SUBSTANTIAL STRUCTURAL DETERIORATION:

The term “substantial structural deterioration” means substantial structural distress that negatively affects a building’s general structural condition and integrity. The term does not include surface imperfections such as cracks, distortion, sagging, deflections, misalignment, signs of leakage, or peeling of finishes unless the licensed engineer or architect performing the phase one or phase two inspection determines that such surface imperfections are a sign of substantial structural deterioration.

MILESTONE INSPECTIONS FOR BUILDINGS THREE STORIES OR MORE IN HEIGHT:

A condominium association under chapter 718 and a cooperative association under chapter 719 must have a milestone inspection performed for each building that is three stories or more in height by December 31 of the year in which the building reaches 30 years of age, based on the date the certificate of occupancy for the building was issued, and every 10 years thereafter.

WITHIN THREE MILES OF COASTLINE:

If the building is three or more stories in height and is located within three miles of a coastline, the condominium association or cooperative association must have a milestone inspection performed by December 31 of the year in which the building reaches 25 years of age, based on the date the certificate of occupancy for the building was issued, and every 10 years thereafter.

The condominium association or cooperative association must arrange for the milestone inspection to be performed and is responsible for ensuring compliance.

The condominium association or cooperative association is responsible for all costs associated with the inspection.

IF THE CERTIFICATE OF OCCUPANCY WAS ISSUED BEFORE JULY 1, 1992:

If a milestone inspection is required under this statute and the building’s certificate of occupancy was issued on or before July 1, 1992, the building’s initial milestone inspection must be performed before December 31, 2024. If the date of issuance for the certificate of occupancy is not available, the date of issuance of the building’s certificate of occupancy shall be the date of occupancy evidenced in any record of the local building official.

Upon determining that a building must have a milestone inspection, the local enforcement agency must provide written notice of such required inspection to the condominium association or cooperative association by certified mail, return receipt requested.

Within 180 days after receiving the written notice the condominium association or cooperative association must complete phase one of the milestone inspection. For purposes of this section, completion of phase one of the milestone inspection means the licensed engineer or architect who performed the phase one inspection submitted the inspection report by e-mail, United States Postal Service, or commercial delivery service to the local enforcement agency.

A MILESTONE INSPECTION CONSISTS OF TWO PHASES:

    (a) PHASE 1: For phase one of the milestone inspection, a licensed architect or engineer authorized to practice in this state must perform a visual examination of habitable and non-habitable areas of a building, including the major structural components of a building, and provide a qualitative assessment of the structural conditions of the building. If the architect or engineer finds no signs of substantial structural deterioration to any building components under visual examination, phase two of the inspection (discussed below) is not required. An architect or engineer who completes a phase one milestone inspection shall prepare and submit an inspection report.

    (b) PHASE 2: A phase two of the milestone inspection must be performed if any substantial structural deterioration is identified during phase one. A phase two inspection may involve destructive or nondestructive testing at the inspector’s direction. The inspection may be as extensive or as limited as necessary to fully assess areas of structural distress in order to confirm that the building is structurally sound and safe for its intended use and to recommend a program for fully assessing and repairing distressed and damaged portions of the building. When determining testing locations, the inspector must give preference to locations that are the least disruptive and most easily repairable while still being representative of the structure. An inspector who completes a phase two milestone inspection must prepare and submit an inspection report.

POST-MILESTONE INSPECTION REQUIREMENTS:

Upon completion of a phase one or phase two milestone inspection, the architect or engineer who performed the inspection must submit a sealed copy of the inspection report with a separate summary of, at minimum, the material findings and recommendations in the inspection report to the condominium association or cooperative association, and to the building official of the local government which has jurisdiction. The inspection report must, at a minimum, meet all of the following criteria:

    (a) Bear the seal and signature, or the electronic signature, of the licensed engineer or architect who performed the inspection.

    (b) Indicate the manner and type of inspection forming the basis for the inspection report.

    (c) Identify any substantial structural deterioration within a reasonable professional probability based on the scope of the inspection, describe the extent of such deterioration, and identify any recommended repairs for such deterioration.

    (d) State whether unsafe or dangerous conditions, as those terms are defined in the Florida Building Code, were observed.

    (e) Recommend any remedial or preventive repair for any items that are damaged but are not substantial structural deterioration.

(f) Identify and describe any items requiring further inspection.

LOCAL GOVERNMENT ENFORCEMENT:

A local enforcement agency may prescribe time lines and penalties with respect to compliance with the milestone inspection requirements.

A board of county commissioners may adopt an ordinance requiring that a condominium or cooperative association schedule or commence repairs for substantial structural deterioration within a specified time frame after the local enforcement agency receives a phase two inspection report; however, such repairs must be commenced within 365 days after receiving such report. If an association fails to submit proof to the local enforcement agency that repairs have been scheduled or have commenced for substantial structural deterioration identified in a phase two inspection report within the required time frame, the local enforcement agency must review and determine if the building is unsafe for human occupancy.

BOARD’S DUTY AFTER OBTAINING THE MILESTONE REPORT:

Upon completion of a phase one or phase two milestone inspection and receipt of the inspector-prepared summary of the inspection report from the architect or engineer who performed the inspection, the association must distribute a copy of the inspector-prepared summary of the inspection report to each unit owner, regardless of the findings or recommendations in the report, by United States mail or personal delivery and by electronic transmission to unit owners who previously consented to receive notice by electronic transmission; must post a copy of the inspector-prepared summary in a conspicuous place on the condominium or cooperative property; and must publish the full report and inspector-prepared summary on the association’s website, if the association is required to have a website.

WHO PAYS FOR THE MILESTONE INSPECTION:

Pursuant to section 718.112, Florida Statutes, if an association is required to have a milestone inspection performed, the association must arrange for the milestone inspection to be performed and is responsible for ensuring compliance with all of the requirements thereof. The association is responsible for all costs associated with the inspection.

FAILURE TO OBTAIN THE MILESTONE INSPECTION:

If the officers or directors of an association willfully and knowingly fail to have a milestone inspection performed pursuant to section 553.899, Florida Statutes, such failure is a breach of the officers’ and directors’ fiduciary relationship to the unit owners.

MANAGER’S DUTY:

If a community association manager or a community association management firm has a contract with a community association that has a building on the association’s property that is subject to milestone inspection, the community association manager or the community association management firm must comply with the requirements of performing such inspection as directed by the board.

EXEMPTIONS:

For clarity, the otherwise required milestone inspection does not apply to a single family, two-family, or three-family dwelling with three or fewer habitable stories above ground.

FLORIDA BUILDING COMMISSION REQUIREMENTS:

The Florida Building Commission must review the milestone inspection requirements and make recommendations, if any, to the legislature to ensure inspections are sufficient to determine the structural integrity of a building. The commission must provide a written report of any recommendations to the Governor, the President of the Senate, and the Speaker of the House of Representatives by December 31, 2022.

The Florida Building Commission must consult with the State Fire Marshal to provide recommendations to the legislature for the adoption of comprehensive structural and life safety standards for maintaining and inspecting all types of buildings and structures in this state that are three stories or more in height. The commission must provide a written report of its recommendations to the Governor, the President of the Senate and the Speaker of the House of Representatives by December 31, 2023.

II.    STRUCTURAL INTEGRITY RESERVE STUDIES AND MANDATORY RESERVES:

The reserve legislation set out in section 718.112 (f)(2)(a), Florida Statutes, is, for all intents and purposes, re-written. Prior to examining these most recent revisions, it is necessary to first examine the definitions set out in section 718.103, Florida Statutes, where a brand new term is added as follows:

    Structural integrity reserve study means a study of the reserve funds required for future major repairs and replacement of the common areas based on a visual inspection of the common areas applicable to all condominiums and cooperative buildings 3 stories or higher.

Hereafter, the structural integrity reserve study is referred to as “SIRS”. Now we can turn our attention to the requirements of the SIRS as set out in section 718.112 (f)(2)(a), Florida Statutes

THE STRUCTURAL INTEGRITY RESERVE STUDY (required for all condominium and cooperative buildings three stories or higher regardless of date of certificate of occupancy):

An association must have a SIRS completed at least every 10 years after the condominium’s creation for each building on the condominium property that is three stories or higher in height which includes, at a minimum, a study of the following items as related to the structural integrity and safety of the building:

a.     Roof.

b. Load-bearing walls or other primary structural members.

c. Floor.

d. Foundation.

e. Fireproofing and fire protection systems.

f. Plumbing.

g. Electrical systems.

h. Waterproofing and exterior painting.

i.  Windows.

j. Any other item that has a deferred maintenance expense or replacement cost that exceeds $10,000 and the failure to replace or maintain such item negatively affects the items listed in subparagraphs a.-i., as determined by the licensed engineer or architect performing the visual inspection portion of the structural integrity reserve study.

The SIRS may be performed by any person qualified to perform such study. However, the visual inspection portion of the structural integrity reserve study MUST be performed by an engineer licensed under chapter 471 or an architect licensed under chapter 481.

As further set out in the legislation, at a minimum, “a structural integrity reserve study must identify the common areas being visually inspected, state the estimated remaining useful life and the estimated replacement cost or deferred maintenance expense of the common areas being visually inspected, and provide a recommended annual reserve amount that achieves the estimated replacement cost or deferred maintenance expense of each common area being visually inspected by the end of the estimated remaining useful life of each common area.”

The amount to be reserved for an item is determined by the association’s most recent structural integrity reserve study that must be completed by December 31, 2024. If the amount to be reserved for an item is not in the association’s initial or most recent structural integrity reserve study or the association has not completed a structural integrity reserve study, the amount must be computed using a formula based upon estimated remain useful life and estimated replacement cost or deferred maintenance expense of each reserve item.

If the condominium building is less than three stories then the legislation provides that, “in addition to annual operating expenses, the budget must include reserve accounts for capital expenditures and deferred maintenance. These accounts must include, but are not limited to, roof replacement, building painting, and pavement resurfacing, regardless of the amount of deferred maintenance expense or replacement cost, and any other item that has a deferred maintenance expense or replacement cost that exceeds $10,000.”

The association may adjust replacement reserve assessments annually to take into account any changes in estimates or extension of the useful life of a reserve item caused by deferred maintenance.

If an association fails to complete a SIRS, such failure is a breach of an officer’s and director’s fiduciary relationship to the unit owners.

NON-WAIVABLE AND WAIVABLE RESERVES IN THE UNIT OWNER CONTROLLED ASSOCIATION:

As to the SIRS, the legislation is patently clear that unit owners may not vote for no reserves or lesser reserves for items set forth SIRS report. There is on-going debate amongst attorneys in regard to whether a condominium under three stories can waive or reduce reserves for any of the reserve items required to be in the SIRS that are included in the under three story condominium reserve, for example, roof and painting (For those interested, examine lines 1029 to 1033 and 1050 to 1071 in SB 4-D).

MANDATORY RESERVES IN THE DEVELOPER CONTROLLED ASSOCIATION:

Before turnover of control of an association by a developer to unit owners other than a developer pursuant to section 718.301, Florida Statutes, the developer-controlled association may not vote to waive the reserves or reduce the funding of the reserves (Previously, a developer could fully waive all reserves for the first two years, meaning this is a monumental change).

PRE-TURNOVER DEVELOPER DUTY:

Before a developer turns over control of an association to unit owners other than the developer, the developer must have a SIRS completed for each building on the condominium property that is three stories or higher in height.

III.    OFFICIAL RECORDS:

Official records of the condominium and cooperative association include structural integrity reserve studies, financial reports of the association or condominium, and a copy of the inspection reports and any other inspection report relating to a structural or life safety inspection of condominium or cooperative property.

In addition to the right to inspect and copy the declaration, bylaws and rules renters have the right to inspect the milestone inspection report and structural integrity reserve study inspection reports as well.

Structural integrity reserve studies must be maintained for at least 15 years after the study is completed. In addition, inspection reports report and any other inspection report relating to a structural or life safety inspection of condominium property must be maintained for 15 years after receipt of such report.

IV.    ASSOCIATION WEBSITES:

In addition to other positing requirements, the inspection reports described above and any other inspection report relating to a structural or life safety inspection of condominium property and the association’s most recent structural integrity reserve study must be posted to the website.

V.    JURISDICTION OF DIVISION OF CONDOMINIUMS, TIMESHARES, AND MOBILE HOMES:

Pre-turnover, the Division of Florida Condominiums, Timeshares, and Mobile Homes (Division) may enforce and ensure compliance with rules relating to the development, construction, sale, lease, ownership, operation, and management of residential condominium units, and complaints related to the procedural completion of milestone inspections. After turnover has occurred, the Division has jurisdiction to investigate complaints related only to financial issues, elections, and the maintenance of and unit owner access to association records, and the procedural completion of structural integrity reserve studies.

VI. NEW REPORTING REQUIREMENTS FOR ALL CONDOMINIUM AND COOPERATIVE ASSOCIATIONS:

On or before January 1, 2023, condominium associations existing on or before July 1, 2022, must provide the following information to the Division in writing, by e-mail, United States Postal Service, commercial delivery service, or hand delivery, at a physical address or e-mail address provided by the division and on a form posted on the division’s website:

  1. The number of buildings on the condominium property that are three stories or higher in height.
  2. The total number of units in all such buildings.
  3. The addresses of all such buildings.
  4. The counties in which all such buildings are located.

An association must provide an update in writing to the division if there are any changes to the information in the list within six months after the change.

VII.    APPLICABLE TO ALL SELLERS OF UNITS:

As a part of the sales process, the seller of a condominium or cooperative unit and developers must provide to potential purchasers a copy of the inspector-prepared summary of the milestone inspection report and a copy of the association’s most recent structural integrity reserve study or a statement that the association has not completed a structural integrity reserve study.

VIII.    GLITCHES:

As with any new legislation of such a substantial nature, there often follow in subsequent years what are referred to as “glitch bills” which help provide additional clarity, remove ambiguity, and fix unintended errors. To name a few: (i) the term “common areas” is used in the legislation when in fact the correct term is “common element;” (ii) clarity needs to be provided regarding whether reserve items that are required to be in SIRS, but show up in the under three story reserves, such as paint and paving, can be waived or reduced by the membership; and (iii) for those buildings that are within three miles of the coastline, additional clarity could be provided to provide better guidance as to how to perform the measurement.    

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Tips for Budgeting in HOAS and Condominium Associations. by Campbell Property Management

Tips for Budgeting in HOAS and Condominium Associations. by Campbell Property Management

Tips for Budgeting in HOAS and Condominium Associations

by Campbell Property Management 

Creating a budget is one of the primary and most important functions that any community association board does during its tenure. The budget will serve as the guideline to determine the dollar amount owners are charged to live in their communities. There are differing obligations to consider when budgeting for a Homeowners Association (HOA) versus a condominium association. Today, we will discuss the differences and offer tips when creating your own community association budget.

Let’s start with HOAs.

HOA budgets are often a bit simpler than those for condominium associations. That is because HOA budgets normally do not require reserves. Reserves refer to funds set aside for future capital expenses and major repairs or replacements of common property or assets within the community. Unless members of the association have voted to create reserve accounts, or the original developer of the property put reserves in the HOA’s Declaration of Covenants, Conditions, and Restrictions (CC&R) – commonly referred to as simply the “declaration” – reserves are not mandatory for HOAs. However, if the HOA votes to put money away for future capital expenses, or defer line items (like maintenance), they have that option. Unlike condominium associations, HOAs are not limited or hamstrung by Florida’s Reserve Statutes, which require specific line items in the condo’s budget. For HOAs, the reserves are more like a savings account to use at the board’s discretion.

One of the misconceptions of the budgeting process is going into it with the intention of trying to hit a target assessment mark. Members may get in the mindset of trying to raise or lower assessments or reach a specific number, like deciding we want $400 a month assessments, then trying to figure out how to get there. Whether for HOAS or condominium associations, that’s really not how budgets are supposed to work.

Budgets are estimates of expected expenses for the upcoming year that are created in order to derive a necessary revenue stream. The idea is to put all of your expected expenses into a basket, itemize them through your budget, the sum of which is the necessary amount of revenue you have to generate. When you divide that amount by unit owners, that is what produces the amount of the community’s assessments, which are the monthly fees associated with living within that community.

Of course, budgets are guidelines – you’re not restricted or expected to spend every dollar on each line item. A budget is not a cap for how much you are able to spend on those items and it’s also not a restriction to only spend those specific items listed in the budget. Again, it’s an estimate and guideline so an association can collect the appropriate amount of money from its residents.

Ultimately, things may happen that were not taken into account at the time of the budgeting process. Sometimes more money is needed and other times less money is spent than what was budgeted. Both situations are certainly within the parameters of what is acceptable because this is an estimation and a guideline for best practices relative to budgets; it is not a hard and steadfast rule.

Regarding condominium associations

Florida’s Condominium and Cooperative Acts law requires associations to fund for reserves, which is the default that has existed for decades. Through next year, the board will retain the ability to call for a vote to waive or partially fund reserves. However, as of January 1, 2025, all structural integrity reserve items must be fully funded and can no longer be waived or partially funded (the well-intended purpose of this legislation is to prevent another Surfside tragedy).

With these tips in mind, we hope you have a good budget season. If ever you have any questions or concerns, please feel free to reach out to one of Sachs Sax Caplan’s experienced community association attorneys at 561-994-4499. We look forward to working with you.

 

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Budget preparation time is upon us! We strongly encourage, that every year around this time, association managers and Boards review and ensure that your capital reserve study is accurate and up-to-date.

Budget preparation time is upon us! We strongly encourage, that every year around this time, association managers and Boards review and ensure that your capital reserve study is accurate and up-to-date.

Budget preparation time is upon us! We strongly encourage, that every year around this time, association managers and Boards review and ensure that your capital reserve study is accurate and up-to-date.

This is one of the most important decisions a board will make for the future of their association. It is an easy and effective way to ensure your community’s capital replacement items are being properly funded with minimal impact on the individual homeowners. 

With the recent update to the Capital Reserve Study Standards, the impact of inflation and supply chain issues over the past few years (in some cases resulting in costs as much as 50% higher for some typical components), it is even more critical to have an updated reserve study to ensure the financial health of your community.

To stay on track for a healthy financial future, it is recommended that your Reserve Study be updated every three (3) years.

The Falcon Group Capital Reserves team consists of 6 CAI Certified Reserve Specialists (RS) as well as a Professional Reserve Analyst (PRA) designation awarded by the Association of Professional Analysts.

Contact our Reserve Specialists today for a new or updated reserve study!

 

Contact Us:

Tampa Bay

1211 1st Avenue, N.
Suite 106
St. Petersburg, FL 33705

P (813) 438-3568

West Palm Beach

5651 Corporate Way
Suite 4
West Palm Beach, FL 33407

P (561) 290-0504

Miami

15405 NW 7th Avenue
Miami, FL 33169

P (305) 663-1970

Capital Reserve Study ( what is involved )

The primary purpose of a Reserve Study is to offer recommendations as to the amount of money a community, building or other organization should set aside on a yearly basis for the future replacement or major refurbishment of their commonly owned elements.

The Falcon Group believes that a properly funded capital reserve program is the right formula for keeping a community’s physical assets in prime condition while providing some key benefits to residents. We strongly recommend updating your Capital Reserve Study Every 3 years.

A regularly updated Reserve Study can provide the following benefits:

  • Maintaining and/or increasing property values by maintaining exterior appearances through timely repair or replacement of common elements.
  • Facilitating project efficiency and cost effectiveness, as well as, minimizing disruptions and unit owner inconvenience by allowing the association to secure contractors to complete an entire project during a finite and desired schedule.
  • Reducing the likelihood of member dissatisfaction associated with the passage of large or sudden assessments.

All of our Capital Reserve Studies are prepared under the direction of a Reserve Specialist (RS) and/or a Professional Reserve Analyst (PRA).

The Falcon Group has prepared over 3,500 Capital Reserve Studies. Each Capital Reserve Study we perform is a customized analysis, prepared in coordination with our Reserve Specialist (RS) and our client, and is based on a “real-world” methodology for each item in regards to:

  • Inspection

  • Evaluation for repair or replacement

  • Evaluation for anticipated “Useful Life”

  • Integrated into a repair or replacement plan and budget

 

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Condo HOA Loans: We can assist you in obtaining the necessary funds for Projects, Reserves, or Cash Flow.

Condo HOA Loans: We can assist you in obtaining the necessary funds for Projects, Reserves, or Cash Flow.

  • Posted: Oct 23, 2024
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Condo HOA Loans

We can assist you in obtaining the necessary funds for Projects Reserves or Cash Flow.

Your Trusted Community Association Financial Resource

 

Don’t go it alone. Whether your Community requires Conventional or Private Lending, CondoHOALoans can assist you in obtaining the necessary funds for Projects, Reserves, or Cash Flow.

When your Community Association works with our Law Firm to facilitate and secure financing, your Community will also have the optional benefit of receiving 100% FREE Delinquent Account Collection Services.

Not sure if financing is right for your Association? Download the Association Funding Options Infographic and take our Free Financial Health Survey to find out.

 

Take the Free Financial Health Survey

Completing this Survey will provide you with a written report you will be able to immediately download upon completion.

Take Our FREE Financial Health Survey

 

Association Funding Options

Getting started with CondoHOALoans is easy.

We’ll help your community identify funding resources and lending options for all of its financial needs. Our Legal Services to your community do not end at the successful closing of your loan with the Lender of YOUR choice. As a valued client of Katzman Chandler, you will have the option, but not the obligation, to have ALL future delinquent accounts collected for FREE.

 

The Condo Building Maintenance Crisis in Florida

As a consequence of hurricanes, business cycles, and fluctuations in the real estate market over the last 20 years, financial distress has been caused to those who live in Community Associations as well as the Communities Association entities themselves.  There presently exist hundreds (if not thousands) of communities whose stories can be illustrated by the timeline below.

Many of these communities presently have underfunded budgets, inadequate cash flow, and lack adequate reserves to accomplish necessary preventative maintenance and actual present maintenance needs. Overall, Boards are starting to realize that there is a lot to do, with little or no money to do it.

 

CondoHOALoans is the best solution for customized, competitive lending options.
Download the Infographic to learn more.

(833) 427-3863

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Loans and Borrowing Money – What Community Associations Need to Know

Loans and Borrowing Money – What Community Associations Need to Know

Loans and Borrowing Money – What Community Associations Need to Know

The video is ready – if you missed the webinar…watch the video now.

by Becker

There is a lot of confusion when it comes to obtaining a loan as a community association. This webinar is intended to clear the confusion and provide you with the necessary tools to obtain a loan.

You will learn:

  • What is and is not collateral for a community association loan
  • What type of loan documents to avoid
  • The borrowing process from beginning to end
  • When to get your attorney involved
Becker - Mark D. Friedman
Mark D. Friedman
SHAREHOLDER
Becker
mfriedman@beckerlawyers.com

Watch the Video !

 

Solutions for Your Commercial Roofing Needs by TLC Construction Industries, Corp

Solutions for Your Commercial Roofing Needs by TLC Construction Industries, Corp

  • Posted: Jul 25, 2024
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Let us help you with your roofing construction projects. Contact our team today to talk with one of our roofing experts. (941) 735-3935

Your Commercial Roofing Specialists

At TLC Construction Industries, Corp., we provide turnkey solutions for all your roofing needs. Our goal is to provide the highest level of quality and service at a fair cost. Established in 2022 with a goal to provide property owners with professional roofing solutions.

Our team is located in North Port, Florida, offering our services to clients on the East Coast and the rest of the United States.

What We Offer

  • Roof Condition Assessments
  • Roof Maintenance
  • New Roof Installations
  • Reroofing Services
  • Waterproofing
  • Restoration Services
  • Parking Garage Inspections/Waterproofing/Repair
  • Infrared Surveys

 

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The Corporate Transparency Act and Your HOA/Condo.

The Corporate Transparency Act and Your HOA/Condo.

  • Posted: Jul 16, 2024
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By: Mitchell Drimmer, CAM

President, Axela Technologies

Starting next year, Community Associations (HOAs & Condos) in the U.S. will have to follow new rules. These rules are part of something called the Corporate Transparency Act (CTA). The CTA requires most Community Associations (HOAs & Condos) to share information about the people who own or control the association. This is called a beneficial ownership report. While some non-profit groups are exempt from this rule, most Community Associations (HOAs & Condos) are not.

Community Associations (HOAs & Condos) are groups that take care of neighborhoods. There is a lot of money flowing in and out of these associations and many boards of directors and even their management companies are not quite ready for this process. There are a lot of Community Associations (HOAs & Condos) in the U.S., more than 355,000 of them. They serve around 74 million people which is about 24% of the population of the United States.  Community Associations (HOAs & Condos) are not exempt as they may be the perfect place to engage in money laundering for the purposes of fraud (unjust enrichment), and terrorism. The CTA was specifically established to make money laundering more difficult.

The new rule says that Community Associations (HOAs & Condos) need to provide specific information about the people who own or control the association. This includes their names, addresses, and other details. This information will be collected by a government agency called FinCEN. The goal is to make sure this information is not available to the public, but it can be used by law enforcement. There remain some questions regarding owner access to association records but as we all know Federal law overrides State laws and an association’s by-laws.

Most Community Associations (HOAs & Condos) need to report. They are considered “reporting companies” under the CTA. This means they must file the beneficial ownership report. There are some exemptions, but most Community Associations (HOAs & Condos) won’t qualify for these exemptions. This will add costs to the management of community associations and naturally will be passed through to the owners making life more expensive for community associations. Adding this to structural inspections, increased insurance premiums, and rising costs, this is not good news.

Community Associations (HOAs & Condos) need to figure out who their beneficial owners are. These are people who have control over important decisions in the HOA. It could be board members or others who influence how the HOA operates. Community Associations (HOAs & Condos) need to collect specific information about these people and report it to FinCEN. They also need to update this information if anything changes. The Board of Directors will now be scrutinized more than ever before, making it even more difficult to enjoin volunteers to run for board positions.

The new rule starts on January 1, 2024.

Existing Community Associations (HOAs & Condos) have until January 1, 2025, to file their first report.

Community Associations (HOAs & Condos) formed after this date must file within 30 days of their formation.

Community Associations (HOAs & Condos) need to understand these new rules and make sure they follow them. It’s important to collect the right information and report it on time. If they need help, they can talk to community association specialists who have studied this matter. These rules are meant to increase transparency and prevent fraud, so following them is essential.

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Brighten Your Business: How Commercial LED Lighting Boosts Productivity and Sales

Brighten Your Business: How Commercial LED Lighting Boosts Productivity and Sales

  • Posted: May 15, 2024
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Brighten Your Business: How Commercial LED Lighting Boosts Productivity and Sales

The lighting in your business space does more than just brighten up the area; it can have a profound impact on productivity and sales. As businesses strive to create optimal working environments and enticing shopping experiences, commercial LED lighting has emerged as a game-changer. In this blog, we’ll explore the powerful ways in which LED lighting can elevate your business, enhancing both productivity among your employees and customer satisfaction, ultimately leading to increased sales.

A well-lit workspace is vital for employee productivity and well-being. Studies have consistently shown that commercial LED lighting can positively influence concentration, focus, and overall mood among workers. The bright, uniform illumination provided by LEDs reduces eye strain and fatigue, leading to improved performance and reduced errors. With LEDs, your team will feel more comfortable and motivated, leading to increased efficiency and productivity that directly impacts your business’s bottom line.

  • Focused Lighting Solutions:

One of the key advantages of commercial LED lighting is its versatility. LED technology allows for focused lighting solutions, meaning you can highlight specific areas or products in retail spaces. Whether it’s accentuating merchandise in a store or illuminating important workstations in an office, LEDs provide the flexibility needed to create the perfect ambiance for each section of your business. By directing attention to critical areas, you can guide customers to key products, driving sales and optimizing their overall shopping experience.

  • Vibrant and Inviting Spaces:

First impressions matter, and your business’s lighting sets the tone for customers’ overall experience. Commercial LED lighting offers a range of color temperatures and intensity levels that can be tailored to match your brand’s personality and image. Whether you want to create a warm and welcoming atmosphere in a restaurant or a bright and energetic vibe in a retail store, LED lighting can be customized to suit your specific needs. A vibrant and inviting space will leave a lasting impression on customers, encouraging them to return and recommend your business to others.

  • Energy Efficiency and Cost Savings:

Beyond boosting productivity and sales, commercial LED lighting also presents significant cost-saving opportunities. LEDs are known for their energy efficiency, consuming up to 75% less energy than traditional incandescent bulbs. This reduction in energy usage translates to lower electricity bills, freeing up financial resources that can be reinvested in other aspects of your business. Additionally, LEDs have a longer lifespan, reducing the need for frequent replacements and maintenance costs.

As you strive to create a thriving business environment, don’t overlook the power of commercial LED lighting. The benefits extend far beyond just lighting up your space; they enhance productivity, elevate customer experiences, and contribute to cost savings. Embrace the versatility and efficiency of commercial LED lighting to brighten your business, boost employee morale, and entice customers into a captivating shopping journey. With the right lighting strategy, your business will shine brightly and enjoy the rewards of increased productivity and sales.

L.o.T.’s Solution

Inefficient lighting wastes energy which contributes to the rising global consumption of fossil fuels. Lighting of Tomorrow is on a mission to reduce America’s environmental footprint. By partnering up with industry experts, Lighting of Tomorrow facilitates communities to switch from inefficient lighting fixtures to new state-of-the-art LED lighting technology. Our goal is to achieve significant energy cost reductions through the installation of energy-efficient lighting Our services include: ✓professional lighting consultation ✓lighting installation ✓lighting maintenance

Members of SFPMA. find us on the members directory

 

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BKB Cleaning Company is a pressure washing services company. We provide Roof Cleaning, Gutter Cleaning, Driveway Pressure Cleaning and Window Cleaning

BKB Cleaning Company is a pressure washing services company. We provide Roof Cleaning, Gutter Cleaning, Driveway Pressure Cleaning and Window Cleaning

  • Posted: Apr 16, 2024
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BKB Cleaning Company

954-692-3107

BKB Cleaning Company is a pressure washing services company. We provide Roof Cleaning, Gutter Cleaning, Driveway Pressure Cleaning and Window Cleaning. We service both residential and commercial customers. Call for a free quote.

BKB Cleaning Company serving communities in Parkland, Coral Springs, Margate and Boca Raton. If you are looking for the best pressure washer  for residential and commercial properties.

 

We believe in arriving on time at the customers home, providing extra ordinary service and leaving you happier than when we arrived. We care about our customers property and treat it with great care. Our cleaning process includes no pressure roof cleaning, driveway power washing and power wash fence.

We have the ability to wash with either hot water or cold water. When you wash with hot water you are able to get more dirt off than cold. We give the option to our customer as to which one they want.

We also have the ability to provide soft wash services to ensures that your home walls and roof are safe for years to come. It is safer way of cleaning because no pressure washer is used to apply chemicals or to clean the roof or home. This helps your home and or roof stay clean and safe from damage from a pressure washer. As technology evolves, so must we. That is why we are relentless in researching and testing new ways to get house washing done better and faster. We know the last thing you want is to have someone at your home all day.

 

Brian Bustamante
brian@bkbcleaning.com
954-692-3107

BKB Cleaning Company
6665 NW 75th Pl, Parkland, FL 33067
http://www.bkbcleaning.com
info@bkbcleaning.com

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How long should HOA repairs take?

How long should HOA repairs take?

How long should HOA repairs take?

We recently published an article on how communities can speed up maintenance projects. In this article, we’ll look at how long some common maintenance jobs should take to complete.

 

Table of contents

 

The obligation to maintain the property

HOAs have an obligation to maintain certain parts of the development. They must set aside a portion of the dues or fees collected from owners to pay for big and small maintenance projects. If the association fails to meet those obligations, it not only creates safety problems for members, but legal issues for the association as well.

If members feel that the board is not properly caring for the property, they can write official complaints, vote to remove board members, or even sue the HOA.

Maintenance must be taken seriously, but it is far easier to manage when you have a system or solution that enables you to organize components, schedule/assign work, and track tasks.

 

Defining maintenance obligations

The maintenance responsibilities of an association versus those assigned to individual owners depend primarily on whether the item or equipment is classified as part of a common area, exclusive use common area, or separate interest.

Common areas typically refer to shared spaces such as pools, sidewalks and roads. Exclusive use common areas are spaces or elements used by one or more, but fewer than all, of the owners. Separate interests are the separately owned lots belonging to members.

While some maintenance obligations are quite clear, others can be a little murky. This is especially true with exclusive common areas since they tend to be things like patios and windows. Roof maintenance may also be confusing; some HOAs cover roof repairs while others do not.

The association’s CC&Rs should detail maintenance obligations and define who is responsible for what. But if there is some uncertainty, boards are advised to refer to civil codes and/or consult with the HOA’s attorney.

 

Why timelines matter

There are several reasons why time matters when it comes to maintenance projects. The main one is so staff and management can plan for disruptions and costs. However, there are times when maintenance work will impact owners, and they will also need to know approximately how long the work will impact their day-to-day lives.

For example, if a parking lot is being repaved, owners will need to be informed of the work, they will need to move their vehicles before the work begins, and know how long they will have to find temporary parking.

Contractors can’t know for sure how long maintenance work will take to complete, but they should be able to provide an educated estimate. Tracking the time it takes for professionals to complete routine and unplanned maintenance is another good way to predict future repair timelines. Having this knowledge allows those responsible for setting up maintenance work to complete projects with more confidence (plus they’ll know if a vendor is taking too long to complete certain jobs).

 

How long should HOA repairs take?

There is no way to know for sure how long any maintenance project will take. Even a standard preventative maintenance job can become lengthy if a contractor discovers additional damage to an element. Other factors, including availability of materials, permit requirements, complexity of the project, size of the community, and weather will all impact the timeline of a project.

That being said, below are some estimates of how long common HOA maintenance work takes to complete.

To get a more accurate time estimate, speak with a contractor or repair expert. They will be able to look at the specific qualities of your community and provide you with a realistic timeline.

Pool repairs

There are many different types of pool repairs. Some can be completed in a couple of hours while others will take several days.

A simple structural leak generally takes a day or two of work. Half a day is needed to complete the first step of a crack injection repair, and another half day is required to “staple” the cracks together and plaster the damaged area.

If your pool has a heater and the warming system breaks, the entire pool may be shut down for a week. The heater can be replaced in a day, but it could take longer. After the new pool heater is installed, it might be another three days before the pool is warm enough to use again.

Most plumbing leaks can be resolved in two days, but the time it takes to fix a pool leak from plumbing can vary according to the extent of the damage.

Pool resurfacing involves the removal and replacement of the top layer of the pool surface. This may be done to give the pool a clean fresh look, or to address several small cracks. In general, this renovation process takes one to three weeks.

 

Water/electricity lines

A water line is an underground pipe that transports water from a water source to a home’s or building’s service pipe. These pipes typically run beneath sidewalks and streets.

A water line pipe might crack, allowing water to spill out. This can cause many issues, including unsanitary water, higher water bills, low water pressure, and floods.

Due to the severity of this problem, a water main break needs immediate attention. Plumbing technicians will need to turn the water off while they repair the break. Once the pipe is in working order, they will flush it before reconnecting it to the plumbing system.

The good news is this type of repair only takes between four and eight hours.

If an electricity line goes out due to weather, it can generally be restored in a couple of hours. However, if an entire pole comes down, the outage could easily last a full day.

 

Roofs

In many cases, HOAs have delegated the responsibility of maintaining roofs to the individual owners. But if the association covers the costs of repairs, expect each home to take up 1-3 days of the contractors’ time. More complex designs and materials will add time to that estimate.

 

Gutters and downspouts

Routine maintenance of gutters and downspouts prevents more serious water damage from occurring. Like roofs, many HOAs have stated that owners are responsible for maintaining these items.

Minor gutter repairs can be completed in as little as one to two hours. Partial replacements can take two to four hours, and full replacements can take two to three days of work.

The timing is similar for downspout repairs and replacements.

 

Parking lots

Most HOAs can complete routine parking lot maintenance in two to three weeks, but timing will vary depending on the size of the lot and weather conditions.

Paving can take less than a week, but keep in mind that proper curing (letting the asphalt cool and settle) is an important part of the process as well. Depending on the size of the parking lot, thorough curing can take anywhere from one to two weeks.

 

General landscaping

While not a traditional repair, landscaping is a maintenance job that can be hard to plan for, at least the first couple of times. The size of the property, availability of materials, and weather conditions can greatly impact the time it takes to finish the job. Once you have found a landscaper that you like, you will become more familiar with the time it takes to do certain jobs.

From start to finish, most projects fall into the two- to three-week range, but cutting grass or trimming plans can take half a day.

 

Conclusion

HOAs have an obligation to maintain certain areas of the development. By scheduling routine maintenance, associations help prolong the useful life of elements and components, and keep the community safe and attractive too.

It’s important for staff, board members and management to have repair timelines so that they can budget for costs and time accordingly. While projects don’t always go according to plan, just having a guideline allows them to manage expectations more effectively.

 

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