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30/40 Year Building Recertification: Your Property Depends on it.

30/40 Year Building Recertification: Your Property Depends on it.

  • Posted: Jan 10, 2024
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30/40 Year Building Recertification: Your Property Depends on it.

Building inspections are crucial for maintaining the safety and integrity of buildings. This is particularly true here in South Florida due to our region’s unique climate and environmental conditions. High humidity, Salt Air, extreme heat, and the hurricane season can all cause damage to building’s structure and envelopes over time. These are some of the reasons why building recertification has become mandated in South Florida every 30 or 40 years, depending on the building’s age.

 

Identifying Hidden Problems

Building inspections are essential to identify underlying problems that may not be readily apparent to residents. For instance, buildings may develop foundation cracks, leaks in the roof, or other issues that can pose significant risks to the property’s structural integrity. Regular inspections can catch these issues early and detect severe problems that may cause serious water damage or building collapse.

Building inspections can prevent these situations, uncover hidden issues, and allow for prompt repair or replacement. Identifying problems early on can also save property owners money and time by preventing more severe cases from developing. Deterioration in coastal environments is a progressive problem that will cost more to address as time passes. By addressing these problems, property owners can promote their buildings’ safety and structural integrity.

 

Cost Savings

Building inspections can provide property owners with significant cost savings in the long run by identifying potential issues early on. Often, structural engineers can find problems during an inspection that can be repaired immediately at a lower cost than if they were allowed to escalate into more significant issues.

For example, if a building inspector discovers a small leak in the roof, the property owner can have it repaired before it causes more extensive damage to the interior of the building. If left unattended, this leak could cause extensive water damage, resulting in costly repairs and possible damage to the building’s structure.

Inspectors may identify areas in the building that could be more energy-efficient. In this case, the property owner can upgrade the building’s insulation, HVAC, or lighting systems—leading to significant savings in energy costs and reducing the property owner’s overall operating expenses.

 

Experience and Expertise

Structural Workshop has extensive experience conducting building inspections. Our experienced engineers and inspectors work closely with clients to help them keep their buildings safeand well-maintained. Whether you are a property manager, building owner, or homeowner, we can help you navigate the complexity of building inspections. Please get in touch with us today to schedule a recertification or learn more about our services.

 

If your company needs marketing please contact our member
Jessica Vail
Vail Marketing Solutions
(908) 528.4087
www.vailmarketingsolutions.com

 

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When are Budgets due?

When are Budgets due?

  • Posted: Jan 04, 2024
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Within 90 days after the end of the fiscal year, or annually on such date provided in the bylaws, the association must have prepared a financial report on the financial activities of the preceding fiscal year.

Within 21 days after the financial report is completed, but no later than 120 days after the end of the fiscal year, the board must provide each member with a copy of the financial report or, at a minimum, provide written notice that a copy of the financial report is available upon request, at no charge to the members.

 

Some things to consider:

  • Don’t delay – Start the process as early as possible so that you don’t miss items that could significantly impact your budget. Now is the perfect time to start preparations if your budget starts January 1.
  • It is a monotonous task, but a vital one. In this day and age, assessments will more than likely have to increase due to increases in insurance, utilities, and that never ending “wish list.” Have a budget plan. Look at the goals for the community. What does the Board want to achieve?
  • Review past budgets and the final year performance. If you overspent more years than not, obviously you need to make some changes.
  • Pet projects don’t always make the cut. Be realistic about what can be achieved.
  • Go over all contracts. You should have a spreadsheet of all contracts with expiration dates, whether they are auto renewed unless you send a cancellation notice, what is the cancellation timeline, does auto-renew have an increase and how much.
  • Ensure you are funding enough for your reserves.
  • Get a Reserve Study, or at least an updated Reserve Study to ensure you have accurate numbers.
  • Have a well-funded maintenance program. The disasters of the recent past is an indication of just how important it is to keep up even the most mundane maintenance. Proper maintenance may help delay some of the replacement items in your reserve study.

 

The financial report must consist of a complete set of financial statements prepared in accordance with generally accepted accounting principles. The level of financial reporting that must be prepared by the board is based on the total annual revenue (including reserves) of the association, as follows:

 

  1. An association with total annual revenues of $150,000 or more, but less than $300,000, shall prepare compiled financial statements.

  2. An association with total annual revenues of at least $300,000, but less than $500,000, shall prepare reviewed financial statements.

  3. An association with total revenues of $500,000 or more shall prepare audited financial statements.

  4. An association with total annual revenues of less than $150,000 shall prepare a report of cash receipts and expenditures.

 

Interestingly, if the board desires to raise the level of financial reporting, it may be increased without membership approval by board action alone, unless the governing documents provide otherwise. In addition, if the board is not inclined to approve a heightened level of reporting, but the members want to do so, then upon twenty (20%) percent of the parcel owners petitioning the board to increase the level of financial reporting from that required by Statute for that fiscal year, the board must notice and hold a membership meeting within thirty (30) days of receipt of the petition. To raise the level of financial reporting, a majority of members present at such meeting must cast their vote in favor of doing so.

 

However, lowering the reporting threshold is a different matter entirely because only the members can make that decision. To accomplish this, a majority of members present at a properly noticed membership meeting must cast their vote in favor of lowering the level of financial reporting. The meeting must take place prior to the end of the fiscal year in question.

 

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4 Things to Consider Adding to Your Budget For an Amazing Resident Experience by BuildingLink

4 Things to Consider Adding to Your Budget For an Amazing Resident Experience by BuildingLink

  • Posted: Jan 04, 2024
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If you’re like most multifamily communities, August marks the beginning of your budgeting season. To create an amazing resident culture, property managers need to get ready to sharpen their pencils. In today’s competitive environment, however, that means more than just nailing down your expense forecasting for the new year.

 

 Residents these days expect more than ever from their community’s amenities and services, reflecting broader changes in their lifestyle and work habits. With the continued trend of working from home, many residents are now looking to their apartment amenities to serve as extended living and working spaces. This presents an exciting opportunity to create an outstanding culture and experience that drives them to renew their leases and recommend the property to others. In this post, we share four things that property managers should consider adding to their budgets this planning season.

 

1. Community Events

If you haven’t already considered hosting community events, now is the time. By hosting fun and exciting events for your residents, you’ll help them form connections with their neighbors and engage with the property. These connections can create a sense of belonging and mutual support, leading to a happier and more harmonious community. The increased engagement between residents can also foster a culture where residents take better care of shared spaces, since they have a stronger sense of pride and ownership within their surroundings.

The scale of your community events can range from more casual gatherings, such as coffee hours in the lobby, to more elaborate occasions, such as holiday parties or outdoor movie nights. Budgeting for these events may vary accordingly. A small-scale event can be executed with a minimal budget, while a larger-scale event may need a more significant budget allocation to factor in food, entertainment, and decorations.

For those wrapping up the end of summer with a resident event, our blog, “Six Resident Event Ideas: Summer Edition,”can provide some great inspiration.

2. Concierge Services

For many, concierge services are one of the first things that comes to mind when you think about high-rise lavish apartment home living. Providing services that make residents’ lives easier is a huge draw that can drive satisfaction up and enhance their quality of life.

Don’t worry if your property can’t afford a full-time concierge to work as a front desk associate. You can choose to provide select key services that can be managed within your budget. Package tracking is an excellent example, as it eliminates the stress of missing deliveries for residents. Similarly, a reliable key management system can provide residents with peace of mind regarding access for guests, cleaners, pet sitters, and more.

Pro Tip: To optimize your front office and concierge services, consider using a platform such as ConciergeLink. From enhanced incident report management to paperless shift logs and time tracking, you’ll know your property is always running smoothly.

3. Fitness & Wellness Amenities

In today’s health conscious society, providing fitness and wellness amenities within your property is an excellent way to improve the culture, allowing residents to stay active without needing to leave the property. Consider budgeting for updated exercise machines, spa facilities such as a sauna, or meditation areas to help residents unwind and relax. If your property is limited in physical space, consider establishing a partnership with a local wellness center or gym as an alternative solution. You may be able to offer residents discounted gym memberships or wellness services adding value to their residency.

Providing ways for residents to take care of their physical fitness does more than improve their individual quality of life. It also helps create a vibrant community culture that residents can enjoy and take pride in, positioning your property as one that truly cares for and invests in its residents.

4. A Branded Mobile App

Leveraging a branded mobile app is a powerful way for property managers to improve communication with residents and enhance their overall living experience. These branded apps can serve as a centralized platform for residents to access important information, receive communication, request service fixes, and more. With a mobile app that reflects your property’s branding, you can foster a stronger sense of belonging and familiarity among residents.

BuildingLink offers custom mobile apps for both iOS and Android platforms. You can customize the app to your property’s logo and colors, providing your residents with a seamless and professional look that aligns with your brand identity. Learn more about our custom mobile apps here.

Partner With BuildingLink

Trusted by condos, co-ops, HOA’s and multifamily properties around the globe, BuildingLink helps property managers deliver superior resident experiences while streamlining maintenance and operations. We offer tools that will simplify your record-keeping and administration, communications, maintenance, and front desk operations.

When you’re ready for smarter property management, book your BuildingLink demo today.

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COAs must prepare operationally and financially for new legislation by Jim Weaver, Market President – First Federal Bank

COAs must prepare operationally and financially for new legislation by Jim Weaver, Market President – First Federal Bank

  • Posted: Jan 04, 2024
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 COAs must prepare budgets operationally and financially for new legislation by Jim Weaver, Market President – First Federal Bank

 

It would seem in today’s world the life of many Condo Associations are financially battling a 3–headed dragon known as Insurance, Milestone Inspections and Structural Integrity Reserve Studies. Alone, any one of these could result in a substantial financial blow to an Association but being impacted by all three could result in a financial crisis. To dissect this “dragon” from a Banker’s perspective, let’s look at a high–level overview of each of these:

 

Insurance:

Many Associations (and homeowners in general) are aware of the growing insurance crisis in the State of Florida and anticipated their premiums to increase but not to the levels many have experienced in 2023. After discussions with several property managers, most Associations were told in 2022 that they should expect increases in the neighborhood of 25% – 50% year over year. Although, at the time, these appeared shockingly high, the reality for many in 2023 has been increases of 100% to as much as 400% of their 2022 premiums. It is safe to say that even the most conservative of budgets and the best prepared Associations were not financially prepared for this hike. Many Associations have been forced to either finance their premiums through their insurance company or look to their bank partner for lines of credit to supplement what they had assumed would be sufficient reserves. While legislation is pending to assist with this problem, it is unlikely a return to the “old normal” will ever occur and financing of insurance premiums will become the “new norm”.

 

Milestone Inspections:

A milestone inspection is an on-site review of all the primary structural components within the condominium building(s). The inspections must be completed by a licensed architect or engineer. The initial Phase 1 inspection is a thorough visual examination. If no signs of “substantial structural deterioration” is found, no further investigation is needed. If there are signs of “substantial structural deterioration”, a Phase 2 milestone inspection must be performed. This inspection will be as limited or extensive as required to complete the investigation into the problem areas as identified in the Phase 1. If necessary, the inspector could require destructive testing on portions of the structure to complete the report. Upon completion of the Phase 2, the report should provide guidance for remediation/repair of distressed areas of the building.

Milestone Inspection reports are required for all condominiums three or more stories in height which aged 30 or more years by July 1, 2022; the initial milestone inspection must be completed by December 31, 2024. If the condominium reaches 30 years of age on or after July 1, 2022 and before December 31, 2024 the initial inspection must be completed before December 31, 2025. All others must have their initial inspections completed in the year in which the reach 30 years old and in all cases, every 10 years thereafter.

While the cost for these inspections may not present a financial crisis, the cost of needed repairs could. Well reserved and monitored Associations may have little or minor needs for additional funds, but others may have an immediate need to raise significant funds for near term required repairs.

 

Structural Integrity Reserve Study:

All condominium buildings of 3 stories or more are required to perform a Structural Integrity Reserve Study. This is performed to ensure proper availability of funds at the time of anticipated needed structural repairs or replacement as per the study. This study must cover the following:

Roof

Structure including load bearing walls and all primary structural members

Fire proofing and fire protection systems

Plumbing

Electrical Systems

Waterproofing and exterior painting

Windows and Exterior Doors

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 above.

At a minimum the study must:

1) Identify each item of the condominium being visually inspected

2) State the estimated useful life and estimated replacement cost or deferred maintenance expense of each item of the property being visually inspected

3) Provide a funding reserve schedule with a recommended annual reserve amount that achieves the estimated replacement cost or deferred maintenance expense of each item.

As of December 31, 2024 it is mandated that Associations may not vote to waive or provide for reserves in an amount less than full funding for those items included within the Structural Integrity Reserve Study.

 

For many Associations who have historically partially funded or waived reserve funding, the requirement to fully fund for items included in the study will have an immediate and impactful shock to their financial structure moving forward. Depending upon the findings, Associations may need to raise large sums of reserves in a relatively short period of time. Fortunately for most Associations, the full impact will not be felt until the 2025 budget; however being proactive in 2024 will help prepare for the inevitable impact.

Disclosure: The commentary above should not be considered a legal opinion and does not encompass the full requirements of the legislation of Senate Bill 154 as discussed above. It is strongly suggested that any Association confer with their Attorney and/or CPA to understand the full requirements and impact of the legislation well in advance of any deadlines specified in the bill.

Authored by:

Jim Weaver

Market President

First Federal Bank*

Weaverj@ffbf.com

*First Federal Bank is available to serve financial needs of their local markets. Visit FFBF.com/locator to find the nearest location.

 

Find First Federal Bank on the Members Directory

First Federal Bank is a community-based bank offering consumer and commercial banking solutions, services, and loans through banking offices in Florida’s Panhandle, North Central and East Florida, and coastal South Carolina.

Mortgage, SBA and USDA customers are served through lending offices across the Southeast and Midwest.

First Federal is headquartered in Lake City, Florida with assets totaling over $3.6 billion. First Federal has received a “5-Star, Superior” financial rating from BauerFinancial, Inc., of Coral Gables, Fla. for more than two decades and was recognized by Newsweek as “Best Small Bank in Florida” in 2020 and 2021. For more information, visit http://www.ffbf.com.

 

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Florida Legislature to Pass Law Prohibiting Associations From Charging Estoppel Fees

Florida Legislature to Pass Law Prohibiting Associations From Charging Estoppel Fees

  • Posted: Jan 02, 2024
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YOUR ASSESSMENTS ARE ABOUT TO GO UP AGAIN

Act Now Before It IS Too Late!

Of all the subjects I never would have thought I would be writing to you about, it is this: the Florida Legislature is dangerously close to passing legislation that prohibits a Florida community association from charging a fee for the preparation and delivery of an estoppel certificate!!! The text of Senate Bill 278, along with its companion House Bill 979, fully prohibits condominium and homeowners’ associations from being able to charge the requesting party a fee for the preparation of the estoppel certificate. But, however, the professional who assists the association prepare and issue the estoppel, such as the management company and attorney, will now charge the association and not the party who requested the estoppel. This year’s legislative session starts very early, on January 9th. Your legislators need to hear from you that you do not want them to support these bills because they will cause financial harm to your association.

Why should community associations be stuck with the bill for the estoppel? This bill will fully shift the financial responsibility for the estoppel from the buyer or seller right on over to the association. In other words, the association still has to pay its agents, be it the management company or attorney, etc., to prepare the estoppel. At times it takes a lot of work, coordination and effort to timely issue the estoppel, let alone all of the liability that comes along with its issuance.

Since when in the United States of America can the legislature require any of us work for free? Well, it may sound like that because the buyer or seller will not have to pay for the estoppel but we all know in reality, nothing is free. This draconian fee shifting legislation could in a great many cases, if not all, act to increase every homeowner and condominium unit owner’s assessments who live in the community. Preparing estoppels can take significant time, most, especially, if there is a long history of nonpayment associated with the account. Also, existing violations must be taken into account in the estoppel certificate, etc., If the math is wrong, the issuer of the estoppel could end being financially responsible for the shortage, and they could be subject to, amongst others, Federal Fair Debt Collection Practice Act claims due to a mistake. Therefore, there is significant time involved in gathering all of this information, ensuring it is correct, and then issuing the estoppel within the required 10-day business day legislative timeframe. To make a long story short, management companies will have to increase their fees charged to the associations to offset their inability to charge the fee to the requesting party for the estoppel, and thus, every member of your association will have to pay more.

As to any rumors of rare abuse by those charging excessive estoppel fees, there are already safeguards built into the existing legislation which provide for summary legal proceedings that can be brought to compel compliance with the existing estoppel legislation and its financial cap. It even provides for prevailing party attorneys fees.

If you hear that objections to this legislation from management companies and attorneys are because they do not want to lose revenue such is not the case at all. It’s really quite simple: This legislation will fully shift the responsibility for the estoppel fees, from that of the requesting party, to all the owners that already live in the association’s community and who have nothing to do with the transaction at all.

As this is holiday season, if this passes into law, what a horrible gift that would be. To prevent this legislation from becoming law, please reach out to your legislators and let them know that you object to Senate Bill 278 and House bill 979.

HERE is a link to the SB 278.

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Thank You to our members and industry professionals for a great year. We look forward to even more information this year along with our “Florida Rising Industry Magazine in 2024.”

Thank You to our members and industry professionals for a great year. We look forward to even more information this year along with our “Florida Rising Industry Magazine in 2024.”

  • Posted: Jan 02, 2024
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Thank You to all of our State of Florida Property Management Association Members for a great year. supporting and informing our industry about Condo, HOA’s and Property Management Services have been a Big Success.
As we move into 2024 we have even more members to let you know about and found on our Find-A-Service.com Directory.
In 2024 Condo Boards and Property Managers will need help with Florida: Condo Building Inspections SB4D
Board Members can find the right information on our new websites and pages. Https://FLBuildingInspections.com
Tune Into Condo Craze And every Sunday At 11:00 a.m. Find us on our YouTube channel for our live shows.

Tune Into Condo Craze And every Sunday At 11:00 a.m. Find us on our YouTube channel for our live shows.

  • Posted: Jan 02, 2024
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Tune Into Condo Craze And every Sunday At 11:00 a.m. Find us on our YouTube channel for our live shows.

Subscribe to our YouTube channel 

 

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

TAKING YOUR CALLS ON WHATEVER TOPIC YOU NEED ANSWERS TO OR WHATEVER YOU NEED TO GET OFF YOUR CHEST.

*OUR LAST SHOW ON 850. AFTER 15 YEARS – WE ARE LEAVING 850 WFTL AND GOING STRAIGHT TO YOUTUBE

 

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Join KBR for “Covenant Enforcement for HOAs and Condominiums”. Managers will receive one CEU in the OPP category. Dec. 13th at 11:30am, live on Zoom.

Join KBR for “Covenant Enforcement for HOAs and Condominiums”. Managers will receive one CEU in the OPP category. Dec. 13th at 11:30am, live on Zoom.

  • Posted: Dec 13, 2023
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Join KBR for “Covenant Enforcement for HOAs and Condominiums”. Managers will receive one CEU in the OPP category. Dec. 13th at 11:30am, live on Zoom.

Register NOW.

Covenant Enforcement for HOAs and Condominiums

Dec 13, 2023 11:30 AM 
Description
Course #: 9630145
Instructor: Kerstin Henze, Esq.
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HOA/Condo Board Certification class is designed to satisfy the statutory requirement so that you are eligible to serve.

HOA/Condo Board Certification class is designed to satisfy the statutory requirement so that you are eligible to serve.

HOA/Condo Board Certification class is designed to satisfy the statutory requirement so that you are eligible to serve. by Florida Condo & HOA Law – Powered by beckerlawyers.com

Register for HOA/CONDO Board Member Certification

WHEN: December 12, 2023 | 10AM – 12PM EST

 

2 ELE Credits
Provider: #0000811
Course: #9630016
If you are planning to serve on your homeowner association board, you probably know that you will need to comply with Florida’s certification requirements within 90 days of being elected. Our HOA/Condo Board Certification class is designed to satisfy the statutory requirement so that you are eligible to serve. More importantly, it will provide the tools and information you need to perform your job well and to avoid any potential liability associated with your new role.
Topics Covered:
• Defining your fiduciary duty
• Analyzing association operations
• How to properly maintain the association’s books and records
• The pros and cons of alternative dispute resolution
• Avoiding common election pitfalls
• Preparing budgets and funding reserves
• Understanding financial reporting requirements
• Assessing insurance needs for common areas
• Defusing conflict within the community
_______________________________________
PLEASE NOTE: Instructions to receive certificate of completion or CEU credit will be emailed a few business days after the class has concluded.
________________________________________
This online class will be presented on Zoom! Full live viewing instructions will be sent to all registrants.
________________________________________
REGISTER NOW:
https://online.beckerlawyers.com/…/landi…/rsvp-blank.asp
________________________________________
SPEAKER:
Joseph Arena
SENIOR ATTORNEY
Stuart
Becker
jarena@beckerlawyers.com

 

 

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4 “Tricks” to a Healthier Lake! Regularly test the water quality! by Allstate Resource Management

4 “Tricks” to a Healthier Lake! Regularly test the water quality! by Allstate Resource Management

The first step in keeping your lake healthy is regularly testing the water quality. Ensure that your lake management company is testing the water before treatments.

Use algae control.
Algae is a common problem in Florida lakes, but there are methods you can use to control it. Partnering with a professional lake company is key! A lake maintenance company can put together a comprehensive plan designed specifically for your lake.
Use aeration to promote healthy oxygen levels.
Aeration is essential for maintaining healthy oxygen levels in your lake. Use a lake aerator to keep the water moving and to promote healthy oxygen levels.
Control invasive plant species.
Invasive plant species, such as cattails or water hyacinths, can quickly take over your lake and create an unhealthy environment for aquatic life. Let our lake specialists work with your HOA to help control and eradicate invasive plants.
Contact us today: info@allstatemanagement.com or 954-382-9766
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