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THE RETURN OF THE CORPORATE TRANSPARENCY ACT INJUNCTION

THE RETURN OF THE CORPORATE TRANSPARENCY ACT INJUNCTION

THE RETURN OF THE CORPORATE TRANSPARENCY ACT INJUNCTION

by Rembaum’s Association Roundup

Recently we reported to you that a panel of the U.S. Court of Appeals for the Fifth Circuit vacated (reversed) the Texas District Court’s previously enacted injunction that had the effect of making the Corporate Transparency Act’s registration requirements applicable once again.

Guess What? On December 30th, 2024 the U.S. Court of Appeals for the Fifth Circuit again reinstated the nationwide injunction. FinCen’s website provides that, “in light of a recent federal court order, reporting companies [which includes Florida’s condominium, homeowners’, and cooperative associations] are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.

The FinCen website provides a procedural history that further explains the current situation as follows:

On Tuesday, December 3, 2024, in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al., No. 4:24-cv-00478 (E.D. Tex.), the U.S. District Court for the Eastern District of Texas, Sherman Division, issued an order granting a nationwide preliminary injunction. The Department of Justice, on behalf of the Department of the Treasury (Treasury), filed a Notice of Appeal on December 5, 2024 and separately sought of stay of the injunction pending that appeal.

On December 23, 2024, a panel of the U.S. Court of Appeals for the Fifth Circuit granted a stay of the district court’s preliminary injunction entered in Texas Top Cop Shop, Inc., pending the outcome of Treasury’s ongoing appeal of the district court’s order. Treasury immediately issued an alert notifying the public of this ruling and recognizing that reporting companies may have needed additional time to comply with beneficial ownership reporting requirements, Treasury extended reporting deadlines. However, on December 26, 2024, a different panel of the U.S. Court of Appeals for the Fifth Circuit issued an order vacating the Court’s December 23, 2024 order granting a stay of the preliminary injunction. On December 31, 2024, the Department of Justice, on behalf of Treasury, sought a stay of the injunction pending the ongoing appeal from the Supreme Court of the United States.

In the meantime, as of December 26, 2024, the injunction issued by the District Court in Texas Top Cop Shop, Inc. is once again in effect. FinCEN is complying with—and will continue to comply with—the District Court’s order for as long as it remains in effect. As a result, reporting companies are not currently required to file beneficial ownership information with FinCEN. Reporting companies may continue to voluntarily submit beneficial ownership information reports.

As new information is obtained we will share it with you, our readers. For those who are interested, our prior Association RoundUp articles regarding the Corporate Transparency Act debacle follow below.

THE CORPORATE TRANSPARENCY ACT STRIKES BACK

In the never ending saga regarding the applicability of the Corporate Transparency Act, there is yet another twist in that the judge in the Texas litigation, which we wrote about to you on December 14 and who issued the nationwide injunction, reversed course on December 23, when he lifted the court’s previously enacted injunction making the Corporate Transparency Act’s registration requirements applicable once again. However, FinCen, in light of the short notice, has extended the deadline in which to register to January 13, 2025 absent other deadline extensions.

As reported in our prior article, a recent update from the United States Department of Treasury, Financial Crimes Enforcement Network (FinCen) provides an extension of time to comply with the requirements of the Corporate Transparency Act for the initial reporting deadlines, but there are strict requirements regarding the applicability of the extension as discussed below.

FinCen, on October 29, 2024, extended the initial reporting deadlines to June 30, 2025, for associations in counties affected by Hurricane Milton where:

(1) Federal Emergency Management Agency (FEMA) assistance is available for individual or public assistance; and

(2)IRS tax filing deadlines have been extended.

Associations in the following counties appear to be subject to the extension:

Alachua, Baker, Bradford, Brevard, Broward, Charlotte, Citrus, Clay, Collier, Columbia, DeSoto, Dixie, Duval, Flagler, Gilchrist, Glades, Hamilton, Hardee, Hendry, Hernando, Highlands, Hillsborough, Indian River, Lafayette, Lake, Lee, Levy, Madison, Manatee, Marion, Martin, Miami-Dade, Monroe, Nassau, Okeechobee, Orange, Osceola, Palm Beach, Pasco, Pinellas, Polk, Putman, Sarasota, Seminole, St. Johns, St. Lucie, Sumter, Suwannee, Taylor, Union, and Volusia.

Of course, to be absolutely certain, please check with your association’s attorney.

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The December 23, 2024 email communication received from the Financial Crimes Enforcement Network as reported on above follows:

Updates to Beneficial Ownership Information Reporting Deadlines – Beneficial Ownership Information Reporting Requirements Now in Effect, with Deadline Extensions

In light of a December 23, 2024, federal Court of Appeals decision, reporting companies, except as indicated below, are once again required to file beneficial ownership information with FinCEN. However, because the Department of the Treasury recognizes that reporting companies may need additional time to comply given the period when the preliminary injunction had been in effect, we have extended the reporting deadline as follows:

  • Reporting companies that were created or registered prior to January 1, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN. (These companies would otherwise have been required to report by January 1, 2025)
  • Reporting companies created or registered in the United States on or after September 4, 2024 that had a filing deadline between December 3, 2024 and December 23, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN.
  • Reporting companies created or registered in the United States on or after December 3, 2024 and on or before December 23, 2024 have an additional 21 days from their original filing deadline to file their initial beneficial ownership information reports with FinCEN.
  • Reporting companies that qualify for disaster relief may have extended deadlines that fall beyond January 13, 2025. These companies should abide by whichever deadline falls later.
  • Reporting companies that are created or registered in the United States on or after January 1, 2025 have 30 days to file their initial beneficial ownership information reports with FinCEN after receiving actual or public notice that their creation or registration is effective.
  • As indicated in the alert titled “Notice Regarding National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.)”, Plaintiffs in National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.)—namely, Isaac Winkles, reporting companies for which Isaac Winkles is the beneficial owner or applicant, the National Small Business Association, and members of the National Small Business Association (as of March 1, 2024)—are not currently required to report their beneficial ownership information to FinCEN at this time.

On Tuesday, December 3, 2024, in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al., No. 4:24-cv-00478 (E.D. Tex.), the U.S. District Court for the Eastern District of Texas, Sherman Division, issued an order granting a nationwide preliminary injunction. On December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit granted a stay of the district court’s preliminary injunction enjoining the Corporate Transparency Act (CTA) entered in the case of Texas Top Cop Shop, Inc. v. Garland, pending the outcome of the Department of the Treasury’s ongoing appeal of the district court’s order. Texas Top Cop Shop is only one of several cases that have challenged the CTA pending before courts around the country. Several district courts have denied requests to enjoin the CTA, ruling in favor of the Department of the Treasury. The government continues to believe—consistent with the conclusions of the U.S. District Courts for the Eastern District of Virginia and the District of Oregon—that the CTA is constitutional. For that reason, the Department of Justice, on behalf of the Department of the Treasury, filed a Notice of Appeal on December 5, 2024 and separately sought of stay of the injunction pending that appeal with the district court and the U.S. Court of Appeals for the Fifth Circuit.

The Kaye Bender Rembaum Team Remains Available To You and Your Community Association

Visit KBRLegal.com for awesome free resources, including news with Legal Morsels and Rembaum’s Association Roundup, and our Event Calendar, including upcoming free classes.

 
Which Sediment or Muck Removal Option Is Best for My Waterbody?

Which Sediment or Muck Removal Option Is Best for My Waterbody?

Virtually all explanations of dredging include the physical scooping up of underwater sand and clay sediments to enhance a merchant ship’s access to a port or waterway. If these waterways become inaccessible, the economic consequences are far-reaching.

Today, however, massive algal blooms, animal fatalities from toxic byproducts of algae, and the spread of invasive plants and animals are sharing the front-page news with national economic interests. For those of us living on a waterbody, it’s clear that our personal economic interests are rewarded via higher property values if the nearby water is both navigable and healthy. As a waterbody ages and becomes “silted-in,” organic nutrients fuel invasive plant and algae growth, and property owners suffer the consequences of bright green water, fish kills, and dangerous swimming conditions. Unfortunately, the solution to these rampant biological problems involves more than just scooping up the muck. Hence, we need to look at dredging options and aquatic management in a unified perspective.

Choosing the Dredging Tool for Your Waterbody

Fortunately, there are many proactive aquatic management solutions that can be implemented to help slow or prevent the aging of waterbodies, such as proper land use management, maintenance of beneficial vegetative buffers and sediment traps, installation of aeration systems, and utilization of nutrient absorbing products. However, when sediment buildup is too much to dock a boat or when aquatic plants and algae are perpetually out of control, you’ll need to call in a professional waterbody manager accompanied by a portfolio of dredging techniques.

There are several methods of sediment or muck removal: hydraulic dredging, clamshell or backhoe dredging, dry dredging, and hydro-raking. The chosen method will depend on a number of factors, including sediment composition, environmental sensitivity, the volume of materials removed, budget, and disposal considerations.

Which Dredging or Sediment Removal Option Is Best for My Waterbody?

Mechanical Dredging

Mechanical dredges (clamshell or backhoe dredgers) use buckets to scoop out bottom sediment and transfer it to trucks or barges for transport to disposal sites. Truck transportable mechanical dredges such as Aquamogs can remove small volumes of sediments such as shoals that prevent boater access to a lake, while large oceangoing dredgers are capable of digging to great depths to facilitate the new era of ultra–large container ships. In the case of the drawdown and excavation method (dry dredging), the whole waterbody is drained and sufficient shoreline access is needed for the trucking and hauling involved. However, most lakes cannot be emptied due to environmental concerns or high water tables.

Hydraulic Dredge

Hydraulic Dredging

Hydraulic dredges are the workhorse of the dredging industry and are effective in moving large volumes of organic and inorganic sediment. They work by sucking slurry (a mixture of sediment and water) from the bottom and then pumping it to an offshore location through a pipeline. Hydraulic dredges have almost continuous operating cycles, allowing the removal of large volumes of material in a short time while minimizing the resuspension of material into the water column due to their closed-cycle system of operation. Typically, this method is better suited for sediments with little debris mixed in, as large objects and rocks can damage the cutter and clog the pipeline. A large disposal area is also required.

Hydro-rake

Hydro-raking

Unlike the mechanical and hydraulic dredge, the hydro-rake cannot be used to remove sediment, however, it is an effective tool for accumulated muck removal. Hydro-raking is frequently chosen as a method to remove nuisance aquatic vegetation, root structures, debris, and organic muck on a smaller scale waterbody.  The hydro-rake can best be described as a floating barge upon which is mounted a backhoe with a digging bucket or rake capable of removing accumulated muck in water as shallow as 18 inches. Hydro-raking can effectively target organic muck accumulations and debris in coves, stormwater ponds, and other shallow areas. If a pond is periodically maintained through hydro-raking, the need to perform a large-scale dredging project may be eliminated, saving financial resources and minimizing ecological disruptions.

Paragraph 5 - Managing vegetation in and around - fountains and aeration

How to Maintain Balanced Water Quality

Dredging is generally thought of as an expensive activity, but both your waterbody can benefit significantly from just a few days of budget-friendly spot dredging at pump intakes, swimming areas, or around boat docks. However, the ultimate cost-savings approach is proactive management. By taking preventative steps to reduce erosion, limit weed and algae growth, and maintain balanced water quality, it’s possible to prolong the need for both dredging and hydro-raking. The best way to accomplish this is through an annual management program that leans on sustainable strategies like aeration, nutrient remediation, shoreline maintenance, and many other custom solutions to maintain a healthy, functional waterbody.

To learn more or navigate through a wide variety of sediment, aquatic plant, or algae removal options for your waterbody, we encourage you to speak with your lake or pond management professional.

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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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2025 Sales for Members: Advertising in our Magazine and in the News Blast and on our website.

2025 Sales for Members: Advertising in our Magazine and in the News Blast and on our website.

  • Posted: Jan 25, 2025
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Take advantage of our Advertising Sale Today.

We have Advertising in our magazine and in the News Blast Avail for 2025

  • News blast: Your company will show as a sponsor for the full year, we publish over 3 blasts per week, M,W,F  We also have a special Engineering every Thursday on that your logo is on that page with a link to our Directory, ( only 10 spaces @ 450.00 for the year )
  • Magazine Advertising Sponsorship’s, Full Pages, Half Pages and other. This sale is buy 3 months we match it with the same amount of months. (buy 3 get 3 months free)

 

 

ADVERTISING SALES

1-  We are running this sale for all members become a featured sponsor of our Email News Blast

  • We publish our Email Blast filled with News, Articles, Member Information, This is sent 3 days every week. Mon, Wed and Friday at 9am
  • Your company has a 300px by 300px logo picture linked to your website
  • Be seen as supporting sfpma 156 days for the year.  52weeks @3x every week

Special Price of 450.00 for the entire year

This is limited there are only 10 spots ( 8 remaining ) Act now. we are getting ready for 2025

Write articles we will publish.

 

2- Take out Advertising in our Publication – FLORIDA RISING MAGAZINE

  • Take out half and full pages 12 months of company advertising
  • take advantage of this special pricing

  • See our Advertising FLAT Rates: This Special ends FEB 2025

    Quarter Page: (12 months/300.00)

    Half Page*: (12 months/450.00)

    Full Page*: (12 months/750.00)

*You can write articles every month we will publish. Each month we have the ability to publish member companies articles, promotions used to educate readers on what you do and how you can help. (min 3 months)

Call us today and lock your Spaces or Fill out the Form We will call you!

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    Keep Your FL Lake Clean and Problem-Free by SOLITUDE

    Keep Your FL Lake Clean and Problem-Free by SOLITUDE

    Addressing Major Lake Issues Before the Growing Season

    The growing season refers to the time of year – typically the spring months – when aquatic weeds, algae, and toxic cyanobacteria (blue-green algae) begin to appear in the water. The timeframe can differ depending on the region of the country in which a waterbody is located and natural weather variations. But no matter where you live, nuisance growth may indicate imbalances in the aquatic ecosystem that were not addressed in the weeks and months leading up to this defining season.

    Many property owners do not realize that the management of lakes and ponds shouldn’t end when winter weather arrives. In fact, it is a great time to reevaluate waterbody goals for the coming year and implement management solutions that are more difficult to apply when the water is being actively used for recreation, stormwater collection, or aesthetic purposes.

    Prepare Your Lake for Spring: Here’s Where to Start

    Typically, the off-season months provide a valuable window to complete long-awaited projects like shoreline restoration, mechanical hydro-raking, or dredging, and nutrient remediation. Each of these solutions can help support healthier water quality conditions and reduce the risk of major lake issues when the growing season arrives.

    Prevent algae and weeds next growing season with these management tips:

    Repair Shoreline Damage & Enhance Your Buffer Zone

    Jagged, crumbling, exposed shorelines can endanger people working or spending time in and around the water. Degraded shorelines can also contribute to the accumulation of muck at the bottom of lakes and ponds, and even cause waterfront properties to “shrink” as earth collapses into the water. These conditions don’t occur overnight; rather, they are a result of prolonged wear and tear from recreation, wind and rainfall, nuisance wildlife activity, urban development, and poor landscaping practices.

    If ignored, erosion can aggravate water quality imbalances that increase the risk of weeds, toxic algae, and other problems during the growing season. Restoring degraded shorelines well before this time will help ensure your waterbody starts off on the right foot come spring.

    littoral-shelf-beneficial-buffer

    Repair Erosion Damage with Bioengineered Shorelines

    Cutting-edge bioengineering techniques using a durable mesh material have made it possible to safely restore the aesthetics and functionality of degraded shorelines while repurposing eroded earth. Depending on the size and scope of a project, this process may require significant downtime, so the fall and winter months are an opportune time to take advantage of this service.

    Once installed, these bioengineered shorelines will provide many years of stabilization and erosion control, particularly when beneficial vegetative buffers are also maintained around the waterbody to filter pollutants from stormwater runoff known to provoke water quality imbalances.

    • Shoreline Erosion Repair Results

    Remove Muck & Debris with Hydro-raking

    Lakes and ponds are consistently inundated with eroded sediment and debris such as branches, leaves, lawn clippings, trash, and other detritus that create bottom muck containing highly concentrated nutrients as they decompose. Over time, muck levels can increase, reducing the overall depth and volume of the waterbody. Excessive build-up may lead to a host of problems during the growing season, including flooding, depleted dissolved oxygen levels, water murkiness, bad odors, fish kills, and increased weed and algae infestations.

    It is possible to physically remove build-up using mechanical solutions like hydro-raking and dredging. Hydro-raking is often used for “spot treatments” in areas with disproportionate materials, such as stormwater pipes and dock areas. A hydro-rake is essentially a floating barge with a rake attachment that can remove up to 500 pounds of decomposing material in each scoop and deposit it on the shore for physical removal or repurposing during shoreline restoration projects.

    Hydro-Raking Services

    Restore Depth with Dredging

    If build-up has reached more concerning levels, dredging may be required. Professionals choose from two primary types of dredging equipment based on the goals for the property – each can restore the waterbody to its original depth and volume, but may reset the ecosystem entirely. Conducting dredging far ahead of the upcoming growing season provides a window to begin implementing proactive solutions to ensure water quality is healthy and stable come spring.

    The off-season is an excellent time to complete mechanical projects as they can both interfere dramatically with the use of the waterbody. Removing muck and debris that accumulated during the warmer months will also help reduce overall nutrient concentrations, providing less fuel for algae and weeds when the growing season arrives.

    Balance Water Quality with Nutrient Management

    Phosphorus and nitrogen are the primary nutrients responsible for the growth of excess weeds and algae and are found in both the water column and the bottom sediments. Naturally-occurring nutrient remediation products like Phoslock and Aluminum Sulfate (Alum) can be professionally applied to bind with nutrients, making them unavailable for uptake by weeds and algae. Other solutions like EutroSORB may be used to filter and physically remove undesirable nutrients from the water.

    Nutrient remediation can be effective in the warmer months and, when implemented by licensed professionals, is low-risk for use around people and animals. However, conducting nutrient remediation services during the off-season can help prevent nuisance growth before it becomes a problem, allowing people to start enjoying their waterbodies sooner. It’s important to note that regions that experience more severe winters and freezing waters may not be candidates for off-season nutrient remediation services. A professional can help stakeholders determine the most effective time of year to apply nutrient remediation products.

    Avoid Water Quality Issues This Growing Season

    It can be confusing for stakeholders to know what their waterbodies need – and when – but it’s never too early or late to begin implementing these or other lake and pond management solutions. Ultimately, we share your goal of maximizing the use of your water resources throughout the year. By taking advantage of the cooler months to complete these impactful projects, stakeholders can avoid major water quality issues that the growing season is known for. Instead, they can focus on enjoying the water without looming threats of nuisance growth – and the complaints, safety concerns, and unexpected costs that come with it.

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    Community Association Software Solutions for Condo, Co-Op, and HOA Management

    Community Association Software Solutions for Condo, Co-Op, and HOA Management

    Trusted by over 6,500 communities throughout the U.S. and worldwide, BuildingLink is the premier provider of  community management software solutions. BuildingLink leverages over two decades of innovation and experience,  offering 60+ intuitive modules to manage documents, maintenance, vehicle, keys, packages, amenity reservations, community communications and more! Managers love the functionality and service while residents love the convenience of our mobile app!

    FULLY EQUIPPED WITH DOZENS OF TIMESAVING, AND INNOVATIVE FEATURES.

    Solutions-Icon

    Maintenance

    BuildingLink’s suite of maintenance solutions ensures your property is running efficiently.

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    Resident Experience

    Elevate your resident experience with BuildingLink’s mobile, portal, and smart home features.

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    Record-Keeping & Administration

    Streamlined record-keeping, administrative tasks, and building details at your fingertips.

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    Concierge & Front Office

    From hyper-efficient package tracking to formatted incident reports and key management, all seamlessly managed with BuildingLink.

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    Communications

    Strong communication tools mean more informed, cohesive, engaged, and organized communities.

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    BuildingLink Payments

    Our payments solution seamlessly integrates with many accounting platforms, ensuring a smooth resident payment experience. Residents can pay monthly account balances securely online with single sign-on.

     

    Start Running a Better Community Today!

    BuildingLink is the market’s undisputed leader in property management solutions, empowering customers through industry-leading technologies, extraordinary support and training programs, and the ability to tailor our solutions to fit their unique needs.

    SCHEDULE A DEMO
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    Event: January 23rd from 2-4pm, get updated on ‘2025 Legal Update’ byKBR Legal’s – Lisa Magill, Esq. BCS

    Event: January 23rd from 2-4pm, get updated on ‘2025 Legal Update’ byKBR Legal’s – Lisa Magill, Esq. BCS

    On January 23rd from 2-4pm Est (via Zoom), get updated on the most recent legislative changes and discuss the statutory changes made by the Florida Legislature and how they directly affect managers, board members, and their communities.

    Lisa Magill, Esq. BCS will lead the ‘2025 Legal Update’. Complimentary for all; just click below to enroll.

    Date & Time
    Jan 23, 2025 02:00 PM
    Course 9633017 | Provider 0005092 | 2 CE in Legal for CAMS Instructor: Lisa A. Magill, Esq. BCS | Kaye Bender Rembaum, P.L. Get updated on the most recent legislative changes and discuss the statutory changes made by the Florida Legislature and how they directly affect managers, board members, and their communities.
    This course offers continuing education credits (CEU) for: -Licensed Community Association Managers Sign UP Now. 
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    Out With the Old, In With the New by Published by Eric Glazer, Esq.

    Out With the Old, In With the New by Published by Eric Glazer, Esq.

    The Presidential Inauguration is a reminder of how smoothly leadership transitions can happen at the national level. But in our community associations, things aren’t always so predictable. Discover insights into the often chaotic turnover of power in Florida condos and HOAs—and what it means for your community.

    Whether you’re happy about today’s Presidential Inauguration or not, one thing is for sure and for certain; it’s going to happen. Since 1937, it has taken place at noon on January 20, the first day of the new term, except in 1957, 1985, and 2013, when January 20 fell on a Sunday. In those years, the presidential oath of office was administered on that day privately and then again in a public ceremony the next day, on Monday, January 21.

    That consistency is a lot more than we can say for our community associations. How many of you have complained that our associations have not held an annual meeting or an election in forever, or at least not in the last year? What about complaints that the Board of Directors has simply changed the dates of our annual meeting on more than one occasion and extended their term in office?

    The terms of Board members expire at the annual meeting. So when are you supposed to have an annual meeting and election? The date of your annual meeting is contained within your bylaws. But suppose the Board wants to have the annual meeting on another date for any variety of reasons? Can they do so? Not according to one court which held that the annual meeting must be held on the date contained in the association’s bylaws. Not to do so would be as if an amendment was made to those bylaws without the proper vote of the unit owners.

    And despite this ruling, dozens, if not hundreds or maybe even thousands of condominium and HOAs won’t hold their annual meeting and election this year on the date mandated by their own documents.

    The last few years has also brought drama to the country regarding the requirements of outgoing administrations to turn over official records. Trump got charged with a crime and Biden was found to have wrongfully retained official records but wasn’t charged with a crime.

    When it comes to condominiums, “An outgoing board or committee member must relinquish all official records and property of the association in his or her possession or under his or her control to the incoming board within 5 days after the election. The division shall impose a civil penalty as set forth in s. 718.501(1)(d)6. against an outgoing board or committee member who willfully and knowingly fails to relinquish such records and property.” Surprisingly, there is no equivalent statute for HOAs, except if that director was removed by way of recall.

    So today, pomp and circumstance and tradition will rule the day and like clockwork, one administration will hand off to the incoming administration. And in our community associations, no doubt tradition is likely to continue as well. Perhaps that’s a rare example of where the government works better than we think.

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

    Since 2009, Eric has been the host of Condo Craze and HOAs, a weekly one-hour show airing at 7 p.m. each Thursday on YouTube. This show allows viewers to engage in live chats with Eric and other participants but also enables a broader audience to access free advice, making valuable insights more widely available.

    See: www.condocrazeandhoas.com

    Eric is the first attorney in the State of Florida that designed a course that certifies condominium and HOA residents as eligible to serve on a Board of Directors and has now certified more than 20,000 Floridians all across the state. He is certified as a Circuit Court Mediator by The Florida Supreme Court and has mediated dozens of disputes between associations and unit owners. Eric also devotes significant time to advancing legislation in the best interest of Florida community association members.

     

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    ASSOCIATION BUDGETING FOR DUMMIES

    ASSOCIATION BUDGETING FOR DUMMIES

    ASSOCIATION BUDGETING FOR DUMMIES

    by Steven J. Weil, PhD, EA, LCAM, Royale Management Services, Inc.

    A “dummie,” in this case, is a first-time association member and/or someone with little or no association budgeting experience who wants to know more about how and why the budget is created before they vote on it.

     

    Bookkeeping sfpmaIs it really necessary to go through all that work year after year?

    The first answer is, yes, because it’s the law. Florida law (718.112 (2) (f) 2) requires that annual budgets be prepared and, further, that reserve calculations be made by using a formula that estimates useful life and replacement cost.

    The real answer is that the budget is a tool used by the association’s board to determine how much owners will be required to pay in maintenance costs for the coming year in order to keep the association financially stable.

    The budget is a financial plan, a guide; but the process is an art, not a science. That’s why it’s important to leave room for unplanned expenses. A shortfall may result in an assessment, which will not make anyone happy. The only thing owners hate more than a maintenance fee increase is a special assessment that is necessary because the budget does not adequately cover the ongoing operating and maintenance costs. The tricky part of the process is to balance what is required with the often competing interests of those who want the lowest possible increase with those who are willing to pay more for better services, better amenities or other improvements.

    There are two parts to every budget: the operating budget and the reserve budget.

    • The operating budget should include all the necessary regular and recurring expenses that are expected in the coming year, no matter how small, such as repairs, maintenance, payroll, utilities, supplies, insurance and administrative costs.

    • The reserves are designed to accumulate funds for major ongoing repair and replacement.
    Statutes make it mandatory that reserve budgets first include estimated expenditures for roof replacement, building painting and pavement resurfacing at a minimum.

     

    Aside from what the law requires, a good reserve budget also covers other large capital items that will wear out and need to be replaced over the life of the association, such as: elevators, windows, common area air conditioners, docks, generators, et al.

    Projected estimates take into consideration the cost to replace each item, prorated over the years of its estimated life. A common mistake in estimating this value is the failure to take into account the rise in replacement costs that occurs over time.

    Reserve funds cannot be used for purposes other than those intended without a majority owner’s vote of approval in advance.

     

     

    How do you build a budget that works? The big secret is to start months before your current budget year ends!

    1. Step one is the information-gathering process, including a review of long-term contracts, upcoming expected maintenance and repairs, details of possible fee increases and a “wish list.” This time-consuming step includes getting quotes from vendors, examining recurring contracts for things like insurance policies, lawn and landscaping, trash removal, etc. Sometimes closely-scrutinized contracts can be renegotiated to save money. It’s also important to use caution when reducing maintenance and repairs numbers to delay an expense outlay. That could result in increased costs in the long run.

    2. Step two is to compare and, using a spreadsheet or special budget software, enter into the appropriate columns the year-to-date income and expenses — projected through year end — with the budget for the current year, to review for increases, and show the percent of difference.

    3. Step three: compare projected expenses for the coming year with “other” income (non-assessed) — such as laundry income, application fees, clubhouse rental, dock rental and any other items for which the Association collects fees other than maintenance fees.
      Using those figures, it is then possible to calculate the maintenance fees needed to fund the budget for the coming year. These required maintenance fees are calculated by subtracting the total projected “other” (non-assessed) income from the total projected expenses. This number is then allocated by the formula shown in the association documents. (The number is often based on the number of units or on square footage.)

    According to the Statutes, owners may petition the Board if it adopts a budget where assessments rise more than 15% over those for the prior year. The budget must be in keeping not only with the State Statutes but also with the association’s documents, which may be more stringent.

    Final approval by the board where the proposed budget is adopted must be done at a properly noticed budget meeting. A notice of this meeting, along with a copy of the proposed budget, must be sent to all owners at least 14 days prior to the meeting. Only association members may vote to waive or reduce the budgeted reserves through full or partial funding.

    Failing to fund reserves at all puts everyone’s future at risk. If owners can’t afford the monthly cost how are they going to come up with the money when the roof, elevator or other capital component needs replacing? Often this is done by borrowing, making monthly maintenance payments higher because of what is required to pay back a loan, creating a double whammy of current debt repayment for past depreciation and creating an excuse not to meet current obligations. In some buildings this can create a death spiral.

     

     

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    Axela Technologies – Your Trusted HOA Collections Solution Platform 🌟

    Axela Technologies – Your Trusted HOA Collections Solution Platform 🌟

    Homeowners Association (HOA) collections can be a source of stress and anxiety for those who fall behind on their dues. Nobody wants to risk losing their cherished homes due to unforeseen financial challenges. But here’s some good news – there’s a better way!

    🌟 Enter Axela Technologies – Your Trusted HOA Collections Solution Platform 🌟

    We understand that life sometimes throws curveballs, and financial struggles can happen to anyone. That’s why we take a compassionate and understanding approach to HOA collections, unlike some attorneys who may resort to foreclosure threats.

    📖 In our latest article, we dive into the stark differences between attorneys who may pursue foreclosure and Axela Technologies, your partner in HOA collections.

    💡 So, what sets Axela apart?

    ✅ Compassion: We genuinely care about your situation and work to find solutions that fit owner’s needs.
    ✅ Understanding: We know that financial difficulties can be temporary, and we’re here to help owners get back on track.
    ✅ Communication: We believe in transparency and open dialogue to find the best resolution.
    ✅ Avoid Foreclosure: Our goal is to prevent foreclosure threats and help you keep people in their homes!

    Learn how to ease the burden and provide peace of mind during challenging times.

    We Know Community Associations

    Specialized Collection Solutions for Condos & HOAs

    Take Control of Your Accounts Receivables

    If your community association is suffering from high delinquency rates and long recovery times for delinquent fees, it’s time to take a proactive approach to community association collections.
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    The Consequences of Poor Collection Practices

    When members of your HOA or Condo association pay late or have decided not to pay their fair share, it causes problems for everyone. Legal fees and dissent between the board and community members are just the start. A long-term pattern of delinquencies can affect your community’s ability to become approved for government loans for new owners, or to get loans for capital improvements.

    There is an alternative to a legal process of lien and foreclosure. A  collections process is the best alternative to foreclosure.
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    A Better Way to Manage Delinquencies

    Axela-Technologies is dedicated to helping create streamlined accounts receivable and collections tools for management companies, condo and homeowners associations and others in the real estate industry. We work with you to get a jump on recovering delinquent funds quickly, painlessly and ethically.

     

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