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RECOGNITION OF PRESIDENTS?  By Jan Bergemann on Condo and HOA Blog

RECOGNITION OF PRESIDENTS? By Jan Bergemann on Condo and HOA Blog

  • Posted: Feb 24, 2023
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RECOGNITION OF PRESIDENTS?

By Jan Bergemann on Condo HOA Blog




I know that there are many good presidents who are working hard for the good of the community, keep open books and openly communicate with the members of the association.

But then there are lots of presidents, drunk with power and full of themselves. You wouldn’t believe the many ugly stories I’m hearing daily about presidents behaving like Joseph Stalin, Adolf Hitler or Fidel Castro. With the help of greedy attorneys and community association managers they create dictatorships that make living in community associations a living nightmare. They are even willing to ignore arbitration and court rulings and continue their evil doings even after being officially removed by elections or recalls. They are even willing to waste the association’s money on ridiculous appeals court filings.




The real reason why this can even happen in a so-called “civilized” country like the USA: The unwillingness of our government to enforce the many laws legislators create every year.

Many of these laws turn out to be just a waste of paper because too many of the so-called “specialized” community association attorneys are willing to help these dictatorial presidents to circumvent these laws, telling owners, who stand up at meetings to challenge actions of the board that violate the laws, to “sit down and shut up since they don’t have the money to sue the board anyway”!

Living in a community association isn’t something you can just enjoy by not participating, willing to ignore to happenings in the neighborhood until it’s too late. Apathy of owners allows these dictatorships to be created in the first place. Don’t let apathy destroy your community.

REMEMBER: EVEN THE BEST COMMUNITY IS ONLY ONE ELECTION AWAY FROM DICTATORSHIP.


Jan Bergemann

Jan Bergemann is president of Cyber Citizens For Justice, Florida ‘s largest state-wide property owners’ advocacy group. CCFJ works on legislation to help owners living in community  associations. He moved to Florida in 1995 – hoping to retire. He moved into a HOA, where the developer cheated the homeowners and used the association dues for his own purposes. End of retirement!

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FOUR STEPS TO A BETTER COMMUNITY  By Rafael Aquino

FOUR STEPS TO A BETTER COMMUNITY By Rafael Aquino

  • Posted: Feb 24, 2023
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FOUR STEPS TO A BETTER COMMUNITY

By Rafael Aquino

Community associations often face challenges and issues requiring prompt attention and resolution. Whether it’s handling maintenance and repair needs, managing common areas, or addressing resident concerns, community associations need to work with the right partners to ensure that matters are resolved promptly and effectively.

Here are a few reasons why Florida community associations need to work with the right partners:

  1. Ensuring Quality Work

One of the most important reasons to work with the right partners is to ensure that the work performed is high quality. Whether hiring a landscaper or a maintenance technician, working with reliable and experienced professionals will help ensure that the work is done properly and to the association’s satisfaction.

  1. Saving Time and Money

Another reason to work with the right partners is to save time and money. By working with partners with a proven track record of delivering quality work, community associations can avoid hiring additional contractors or redoing work incorrectly done the first time. This can save the association time and money in the long run.

  1. Minimizing Risk and Liability

Working with the right partners can minimize risk and liability. This is especially important for community associations, as they maintain and manage common areas that all residents use. By working with licensed, insured, and experienced partners, associations can minimize the risk of accidents, injuries, and other liabilities arising from improper maintenance or repairs.

  1. Improving Communication

Working with the right partners can also help to improve Communication within the community. When community associations work with reliable partners, residents can be assured that their concerns and needs are being addressed in a timely and effective manner. This can improve resident satisfaction and create a more harmonious community.

In conclusion, working with the right partners is essential for Florida community associations to ensure that their needs and the needs of their residents are met. By providing quality work, saving time and money, minimizing risk and liability, and improving Communication, community associations can create a safe, attractive, and enjoyable community for all residents. So, it’s important to take the time to research and choose the right partners to work with for the success of the community.

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

 

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Is Your HOA or Condo Board Doing A Good Job?

Is Your HOA or Condo Board Doing A Good Job?

  • Posted: Feb 21, 2023
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Is Your HOA or Condo Board Doing A Good Job?

How Can You Tell If Your Board is Doing a Good Job?

There’s a lot of talk in the media and online about bad Boards of Directors, including our recent article on how to tell if your Board is stealing from the association. But how do you tell if the Board of your Condo or HOA is doing a good job? Not all Boards are bad, right?

The truth is, most Board members are honest people that meant well when they campaigned for election and mean well when they attend and vote in each meeting. They have reasons for making the unpopular decision that the residents complain about. Oftentimes those reasons are valid and the unpopular decision was actually the lesser of two evils. But, how do you know for sure?

What Makes a Board of Directors “Good”?

To find out what HOA managers and management company executives thought was the ultimate sign of a good Board, we conducted a survey on LinkedIn. The survey responses were almost tied. It turns out, there isn’t one ultimate sign. Instead of one thing that makes your Board great, there’s a list of things that make your Board of Directors successful… or not.

Financial Responsibility

The most popular survey response with 33% of the vote, having a well-funded budget and reserves is a hallmark of a good Board. But other factors go into good financial management as well. A good Board is honest when spending HOA funds and uses them for the good of the community. They communicate with the membership about the reasons for budget increases, how they are using the money collected, and what the process is for paying vendors and for dealing with homeowners who aren’t paying on time. Big projects are well-researched and planned to limit unexpected expenses that make special assessments more likely. Speaking of special assessments, good boards know that regular dues increases that keep up with inflation are a better way to fund projects than special assessments.

Proactive Maintenance of Facilities

Coming in at 29% of the vote is proactive maintenance of the facilities. This means little to no deferred maintenance in the community. All buildings, parks, equipment, etc. are inspected often. Preventative maintenance is completed because the Board knows it will save money in the long run. When something needs repair or replacing, it’s completed as soon as possible, because the longer it waits, the more it costs. What good does it do to have a well-funded budget if money is never spent on maintaining the physical assets of the community?

Productive, Peaceful Meetings

Tied with maintenance at 29%, some managers and executives felt that the number one sign of a good board is how it feels to attend their meetings. Good Boards can disagree without slipping into childish or inappropriate behavior. They read the packets and reports that management provides them before the meeting and show up prepared to vote. Members feel comfortable attending meetings, and because the Board sets a good example of how to behave, most of the members follow it.

Good Boards Set Goals

Another sign of a good Board is goal setting. It’s hard to steer a ship if you don’t know where it’s headed. A Board that plans ahead and sets goals for the direction the community should head in is a Board that has a better chance of getting there. A Board that doesn’t plan is going to find itself spinning around in circles.

Fair Collections

People might not like to talk about it because it can be emotionally uncomfortable, but to be good at their job the Board must do something about owners that don’t pay their dues. It’s not fair to the owners that do pay to have to carry the burden of those that don’t. But a good Board is not overly aggressive when it comes to collections. They make sure that the collection solution they use is fair, not predatory, and advocates for the association to collect every possible penny.

The Good Board Checklist

Do you want to grade the Board of Directors for your community to see how good or bad of a job they’re doing? Using the following checklist, give your Board 5 points for every answer that you checked “yes”.

  • Increases to assessments are small and regular
  • The budget, reserve study, annual review, and other financial reports are accessible to the members for review
  • Reserve funding levels are above 80%
  • Special assessments are rare
  • The final cost for projects is usually in line with the projected cost
  • Components are inspected often and repaired as needed
  • When components fail, they are replaced and not abandoned or removed
  • The Board behaves like professionals at meetings even when they disagree
  • Meetings are business-oriented and not popularity contests or social hours
  • Members are welcome and feel comfortable attending meetings
  • A goal-setting discussion happens at least once a year
  • Experts are consulted and their advice is considered when making decisions
  • The number of owners that are late on their dues is less than 10%
  • Collection practices are fair and judgments and foreclosures are a last resort
  • The Board uses a professional collection solution instead of doing it themselves

Now, add up those scores and see how the Board did. A great score is 60-75, a good score is 45-60, an average score is 30-45, a Board that scores 15-30 needs improvement, and if the Board scored less than 15 points you might be in trouble.

Even good Boards of Directors sometimes find that their collections could be improved. Contact us today to find out why Axela Technologies is a better collection solution than your attorney, and learn more about our options for helping you recover late payments from delinquent  owners.

 

By, Dee A. Rowe, Guest Writer

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Condo HOA Expos Florida Dates – You Will Safely Find – Top Companies working together in our Industry! Sign up for the Safe Networking and Educational Events!

Condo HOA Expos Florida Dates – You Will Safely Find – Top Companies working together in our Industry! Sign up for the Safe Networking and Educational Events!

  • Posted: Feb 21, 2023
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Condo HOA Expos Florida Dates – You Will Safely Find – Top Companies working together in our Industry!
Sign up for the Safe Networking and Educational Events!

 

Get face-time with industry experts, browse the latest products and services and learn how to save thousands of the management and maintenance of your condo or HOA.

Registration is FREE for association managers, board members. Don’t delay!

 

COME MEET HUNDRED’S of CONDOMINIUM AND HOA VENDORS AND TAKE CONDO AND HOA EDUCATIONAL CLASSES AND SEMINARS ALL DAY LONG

 

Our Partnership from the very first Expo to the present shows with L&L Management has been nothing less then spectacular. Every year the Condo and HOA Expos give’s our members an opportunity to meet and greet the thousands of Board Members, Managers and Industry Professionals who show up to learn about the changes & advancements in our industry.

On the educational side, the events are a great way to provide Seminars and Board Member Courses to a large group gathered together at one time,  Thanks L&L’s Show Manager Nick Vedder our partner for many years of the Expos.

 


BROWARD COUNTY CONDO & HOA EXPO

 

AT THE SIGNATURE GRAND IN BROWARD
6900 W State RD 84
Davie, FL 33317

Tuesday, February 7, 2023

Seminars: 8:30 am – 5:00 pm
Exhibits: 10:30 am – 3:00 pm

REGISTER HERE

 


PALM BEACH CONDO & HOA EXPO

Palm Beach County Convention Center
650 Okeechobee Boulevard
West Palm Beach, FL 33401

Tuesday, February 22, 2023

9am – 4:45pm

REGISTER HERE


TAMPA BAY CONDO HOA EXPO

 

AT THE TAMPA CONVENTION CENTER
333 S. Franklin Street
Tampa, FL 33602

FEBRUARY 28TH, 2023

Seminars: 8:30 am – 5 pm
Exhibits: 10:30 am – 3:00 pm 

 


ORLANDO CONDO & HOA EXPO

Orange County Convention Center-West Bldg
9800 International Drive, Orlando,
Orlando, FL 32819

Seminars 8:30 am – 5 pm
Exhibits 10:30 am – 3 pm

REGISTER HERE

 


Naples Condo & HOA Expo & Seminars

New Hope Event Center
7675 Davis Blvd. Naples, FL 34104

Seminars 9:00 am – 4:45 pm

Exhibits 10:30 am – 3:00 pm

Register Here

 


BRADENTON AREA Condo & HOA Expo

Property Management Expo & Seminars
Bradenton Area Convention Center

Seminars: 8:30 am – 5:00 pm
Exhibits: 10:30 am – 3:00 pm

Register Here

 


If you wish to take part in an upcoming expo, you can always go to the shows websites and fill out the forms, or contact L&L directly for dates, times, prices and venues. 

New Event Dates are being added:

Nick Vedder
Show Manager
Office: 800-374-6463 x114
CONDO & HOA EXPO
www.mbcondohoaexpo.com
www.pbcondohoaexpo.com
www.browardcondohoaexpo.com
www.naplescondohoaexpo.com
www.bradentoncondoexpo.com
www.orlandocondohoaexpo.com
www.tampabaycondohoaexpo.com

 


 

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Beachfront is thrilled to be working with The Bridges, a luxe Delray Beach community surrounded by 299 acres of sparkling lakes, pristine landscapes, and cascading waterfalls.

Beachfront is thrilled to be working with The Bridges, a luxe Delray Beach community surrounded by 299 acres of sparkling lakes, pristine landscapes, and cascading waterfalls.

  • Posted: Feb 13, 2023
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Beachfront is thrilled to be working with The Bridges, on all of their Painting needs, its a luxe Delray Beach community surrounded by 299 acres of sparkling lakes, pristine landscapes, and cascading waterfalls.

After completing a clubhouse refresh, we’re now offering homeowners a special group rate for exterior painting for its 590 single-family residences. Residents who wish to have their homes painted, or who would like more information about the project, can contact Jim Wolff,

Business Development Manager, at jim.wolff@beachfrontpainting.net or 772.789.7915.

Our team is honored to have been selected to help maintain the beauty and luxury expected at The Bridges. We have a lot of painting ahead of us. Stay tuned for “after” reveals in the coming months

Our Services:

 From single-family homes to shopping centers to high-rise condos, Beachfront combines quality workmanship with competitive pricing to give each client a meticulous paint job that lasts. Preparation is critical to our success and includes pressure washing, priming, and patching as needed.

Waterproofing

 At Beachfront, we make sure buildings are watertight. Our mastery of vertical and horizontal waterproofing extends to glazing and sealants, expansion joints and waterproof deck coatings.

Roofing

Through Beachfront Roofing, Inc, we repair, re-cover, and replace flat and sloped roofs no matter the material—metal, tile or shingle. We’re licensed applicators of Truco, Sika, PM, Karnak, Uniflex, Tropical, Henry and Gaco coatings. Our goal? To extend the useful life of your assets.

Restoration

We’re experts in concrete restoration and can quickly address issues like cracking, spalling and buckling. Whether surface repair or intricate strengthening project, clients count on us to keep their structures safe and sound.

Sealants

Beachfront specializes in sealant replacement and repair. Sealants are integral to the waterproofing process, serving as a water barrier in all types of exterior applications. We perform all of our sealant projects with precision using only the finest products available.

Pressure Cleaning

Regular pressure cleaning helps protect homes, hardscaping, decks and fences from damage and deterioration. Our low-pressure cleaning devices rid clients’ properties of dirt, oil, grease, algae, mold, rust and staining.

 


  Contact Us at

561.557.8534
info@beachfrontpainting.net

5840 Corporate Way, Suite 102
West Palm Beach, Florida 33407

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Here at Commercial Fitness Products, our new medical and fitness products were designed to do just that!

Here at Commercial Fitness Products, our new medical and fitness products were designed to do just that!

  • Posted: Feb 13, 2023
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Here at CFP, we feel passionately about restoring active lifestyles and able bodies with simple movement and strength training – and our new medical products were designed to do just that!

 

With thoughtful features that give therapists more control and opportunity to get their patients on the road to recovery, our equipment is easily integrated into client progression programs to get them back to living an injury-free life! Commercial Fitness Products has been a leading supplier of commercial fitness equipment for over 30 years. We have developed a high level of expertise in equipping all types of facilities. We pride ourselves on being able to serve large scale fitness facilities looking for top of the line commercial equipment, as well as smaller facilities looking for stay within budget and work with limited spaces.

Our years of work with various brand-name equipment manufacturers have helped us to build solid business relationships and connections for all types of product…resulting in lower costs for our customers. We are able to access a wide variety of equipment for the best prices, and we pass those benefits on to you.

Along with great prices, we place Customer Service at the top of our company’s priority list. Our staff is courteous, accessible, and qualified. Our goal is to exceed your expectations…before, during and after the sale. We know you are going to have a good experience in working with us…along with receiving quality equipment at a great price. We offer services that we feel are just part of the total package:

  • We provide facility design services to assist you in creating an organized, functional and aesthetically pleasing arrangement of your equipment that maximizes your space and facilitates an optimal fitness environment.
  • We offer in-service demonstrations for your staff so that they can learn how to correctly use each piece of equipment as well as derive the most benefit through proper form and operation. We emphasize safety measures that prevent unnecessary injuries or equipment malfunction.
  • We provide Preventative Maintenance Plans to keep your equipment running smoothly and reduce downtime.
  • We provide full service repairs for all types of equipment including parts and labor.
  • We offer professional Delivery & Assembly and moving services. Delivering large fitness equipment requires specialized knowledge and tools to prevent injury and maintain the integrity of the equipment.
  • We offer financing through local Leasing companies experienced in the fitness equipment industry.

Whether you’re looking for top of the line commercial equipment, lighter commercial-grade equipment, or something unique and innovative, we have it all. Take a look at our online commercial equipment section or call us today!

Commercial Fitness Products

5034 N. Hiatus Road
Sunrise, Florida 33351

(954)-747-5128

 

One of our recent Installs and Design.

 

We are grateful to have worked with D.R. Horton Homes on Promenade Estates on Palmer Ranch!

Reach out to us for all of your Fitness Rooms in Condo’s and HOA’s in Florida.

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Join SFPMA Members and others on Wednesday, February 22, for the Palm Beach Condo & HOA Expo.

Join SFPMA Members and others on Wednesday, February 22, for the Palm Beach Condo & HOA Expo.

  • Posted: Feb 13, 2023
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Join us on Wednesday, February 22, for the Palm Beach Condo & HOA Expo.

This one-day event is an opportunity to network with industry experts, browse the latest products and services, and learn how to better manage and maintain your Condo or HOA. Learn more at www.pbcondohoaexpo.com.

Board Members, Managers Sign up for the Seminars and educate yourself then bring back what you learned to the Building Owners.

 

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5 Potential Risks to Your Business If You Have Poor Security

5 Potential Risks to Your Business If You Have Poor Security

  • Posted: Feb 13, 2023
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Every business is susceptible to threats, hacking, vandalism, etc. which is why prioritizing security for your business can help reduce the implications of these situations. The risks of having poor security can far outweigh what you’d invest in for a good system, so keep these 5 potential risks in mind when considering the security (or lack thereof) at your business.

No Procedure to Handle Incidents

Security breaches and theft does happen, but what’s worse is not having any sort of procedure to handle the issue. And without a proper security procedure, it’s likely incidents will happen more often. It’s better to be prepared for something that could happen then to be surprised and ill-equipped for when something does, so it’s essential for your business to have a clear security procedure.

Legal Liability

As a business owner, you not only have to protect your brand, but you have the responsibility of protecting the safety of your customers, clients, and vendors’. If that information is not secure and something were to happen, these people could lose trust in you, or possibly pursue legal action that could heavily impact your business. It’s important you are following regulations and complying with routine security checks to ensure your business is safe and running efficiently, and so that information is safe and secure under your account. Taking the right steps to safeguard data and regulate personnel allowed access to this information will help your business improve security and reduce liability.

Increase of Theft and Vandalism

Unfortunately, no business is safe from theft or vandalism, and a lack of security only makes you more vulnerable. This can delay business growth and without action, lead to an increase of incidents. Poor security at your business can cost you stolen goods or assets that can’t be replaced, which can affect your profits, and employee’s safety and trust.

There are a few ways to act on these incidents. First, get a security assessment to help you determine your company’s current state of security, and what needs to be improved upon. Then you can figure out an acceptable security system to be installed, to ensure you’re taking the right precautions to safeguarding your property.

Tainted Business Reputation

If employees and clients are susceptible to your poor security measures, the reputation of your business could sink. Customers and employees could possibly seek other places to feel safe, exposing you to harsh reviews and a decrease in business. People and workers want to interact with a business they trust, this can include having latest technology, and security systems such as cameras or alarms. On the flip side, a business that is growing should increase their security, as there are more visitors, employees, or important data that needs to be protected. You should want your business to be a safe and trusted establishment for all involved, which is why having a good security system is vital for your reputation.

Employees Feel Unsafe

The safety of your employees and company data should be the upmost of importance to your business, so if you’re employees are aware of your poor security, it’s likely they will feel unsafe at work. Security issues, limited regulation of the building, or outdated technology can show a lack of interest in the company’s security precautions, which can contribute to a negative work environment and high employee turnover rates. As mentioned previously, this can also harm the reputation of your business, so having a strong security system is the best way to ensure a sense of safety and reliability for your business.

Contact:

John Libby
Regional Manager
United Security, Inc.
950 South Pine Island Road-Suite A 150
Plantation, FL 33324
Mobile: (407)-675-7960
JLibby@usisecurity.com

 

  United Security Inc. (USI) provides contract security solutions and investigation services to a select group of vertical markets. For the past 30 years, USI has created safe, secure environments for commercial and government employees and customers by investing in our people, innovation and relationships. USI is committed to delivering:

  • Responsive management and security personnel
  • Continuous quality improvement and training
  • Consistent, client-focused service and performance

 

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Friday 2pm Est | They Did What? How SB-2A Affects Your Association by KBRLegal

Friday 2pm Est | They Did What? How SB-2A Affects Your Association by KBRLegal

  • Posted: Feb 10, 2023
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Friday 2pm Est | They Did What? How SB-2A Affects Your Association

Presented by Shawn G. Brown, Esq., BCS (Kaye Bender Rembaum)

Feb 10, 2023 02:00 PM

Register NOW

The Florida Legislature convened for a Special Session specifically to address property insurance and other topics starting December 12, 2022. Among the legislation, the Legislature passed Senate Bill 2A, which makes sweeping changes to the property insurance claims process, reinsurance, regulation of insurance companies and more. This webinar will summarize SB-2A.

Speaker: Shawn G. Brown, Esq., BCS (Kaye Bender Rembaum)

This webinar is informational only, is not to be considered legal advice, and contains no CE credit (or certificates).

 

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CAN YOU REPEAT THAT?     Is Your Condominium in Compliance?

CAN YOU REPEAT THAT? Is Your Condominium in Compliance?

  • Posted: Feb 08, 2023
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CAN YOU REPEAT THAT?

Is Your Condominium in Compliance?

Additional Clarity Provided

If your condominium is greater than 75 feet tall, then you need to read this article (most especially due to a small but meaningful typo in the prior version which is now revised with the red text below).

It is essential for condominium associations to ensure that their buildings are in compliance with the requirements of the Florida Fire Prevention Code (the “Fire Code”). For the safety of all residents, associations must ensure they stay up to date with the latest and greatest in fire safety provisions. One of these essential safety features is a requirement that systems be built into new and existing buildings to ensure that first responders’ radios will work throughout buildings in an emergency situation. Pursuant to Section 11.10.1 of the Fire Code, “in all new and existing buildings, minimum radio signal strength for fire department communications shall be maintained at a level determined by the AJH [the authority having jurisdiction]. Additionally, Section 11.10.2. provides that where required by the authority having jurisdiction, two-way radio communication enhancement systems must comply with the requirements of the Fire Code.

When originally adopted, the requirements of Sections 11.10.1 and 11.10.2 of the Fire Code applied only to new buildings, so the requirement was not a burden on existing buildings. However, in 2013, the Fire Code was updated as set out above to provide that all new and existing buildings must maintain adequate fire department radio signal strength inside the building. This new requirement applied to all buildings and did not provide a grace period. This posed a significant problem for many high-rise condominiums, as the installation of the necessary equipment involves opening walls and ceilings and can be quite costly to the association. The cost of such installation was a substantial burden to condominiums, not expecting to be required to install same, and therefore never budgeted for the installation.

Recognizing the problem, in 2016 the Florida Legislature adopted section 633.202(18), Florida Statutes, which provided a grace period for high-rise buildings. Existing high-rise buildings were not required to comply with minimum radio strength for fire department communications until January 1, 2022. You may be thinking, “that date is passed”, but do not panic. If your condominium has not yet complied with the requirements, have no fear. The 2021 Florida Legislature amended section 633.202(18), Florida Statutes, to provide another extension for compliance.

In accordance with the newly amended statute, existing high-rise buildings now have until January 1, 2025 to come into compliance with the requirements. However, the association must apply for an appropriate permit for the required installation by January 1, 2024. More specifically, section 633.202(18), Florida Statutes, is amended to provide, in pertinent part, that:

(18) The authority having jurisdiction shall determine the minimum radio signal strength for fire department communications in all new high-rise and existing high-rise buildings. Existing buildings are not required to comply with minimum radio strength for fire department communications and two-way radio system enhancement communications as required by the Florida Fire Prevention Code until January 1, 2025. However, by January 1, 2024, an existing building that is not in compliance with the requirements for minimum radio strength for fire department communications must apply for an appropriate permit for the required installation with the local government agency having jurisdiction and must demonstrate that the building will become compliance by January 1, 2025. Existing apartment buildings are not required to comply until January 1, 2025…

Therefore, all existing high-rise buildings must come into compliance by January 1, 2025. It is important to note that this time extension applies only to high-rise buildings. By way of over simplification, it does not apply to buildings less than 75 feet tall (the measurement can be tricky, so if your building is close to 75 feet check with your association attorney regarding this measurement). In 2018, the Florida Department of Financial Services, Division of State Fire Marshal issued a Declaratory Statement finding that section 633.202(18), Florida Statutes does not apply to the enforcement of Section 11.10 of the Fire Code to buildings under 75 feet in height. Therefore, if your building is greater than 75 feet in height, it is required to comply with the radio signal strength required by the authority having jurisdiction at this time.

In light of the foregoing, it is essential that your association take action to determine whether sufficient fire department radio signal exists in your building. We recommend the association reach out to the local fire code official to determine the exact requirements for your jurisdiction. If sufficient signal does not exist in your building, it is essential to prepare a plan (including design, permits, financing, etc.) to ensure that your building will comply by the deadline of January 1, 2025.

Guide to Condo & HOA Financial Statements for Budget Season

Guide to Condo & HOA Financial Statements for Budget Season

  • Posted: Feb 08, 2023
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Guide to Condo & HOA Financial Statements for Budget Season.

Managing the finances of a community association is one of the most difficult, and most important, responsibilities of a board of directors. Preparing detailed  Financial Statements on a regular basis serves a multitude of purposes from providing insight for financial planning, promoting transparency between the board and residents, as well as being a requirement by law in some instances. The frequency of preparation may vary depending on state laws, community bylaws, and the size of the association.

If you are having trouble preparing community financial statements, the professionals at CSM are standing by to answer all your questions. We have years of experience working with thousands of residents across the United States.

What is an Condo & HOA Financial Statement?

Simply put, an Condo & HOA Financial Statements is an official record that details all the financial activities of the community association. Specific details that must be included depends on state regulations and community bylaws, but there are some basic details that should be included regardless of size or location: Read other articles on Topics below.

  • A balance sheet showing account balances
  • A statement of income
  • Receivables, including all money due to the association from sources like collections and credits from vendors or homeowner fees
  • Bank statements
  • A general ledger showing all account activity
  • Reserve fund balances

The most common mistake that people make when preparing financial statements is not adding enough detail. Every detail that can be added, no matter how small, can provide a more thorough insight and lead to better decision making. When in doubt, include it.

It should also be put into an easy to read format. These documents will be available to everyone in the community, most of which do not have advanced accounting degrees. For financial statement to be effective, it needs to be prepared so that anyone can understand the content. Making it too complicated alienates people and hinders community relations.

 

How Often Do Financial Statements Need to be Prepared?

There is no standard frequency that financial statements must be prepared. It will depend on state regulations, community goals, and the size of the community. Of course, the more frequently statements can be prepared, the more helpful they will be for the board of directors. Smaller Condo & HOA’s with simpler budgets can prepare monthly without much problem. Larger associations with more complicated budgets may opt to prepare statements quarterly or annually.

No matter what decision is made regarding frequency, it must be maintained. Straying from the regular schedule only causes issues between the board members and homeowners. It leads to a feeling of distrust. When dealing with financial information, it is best to be open and honest in as much detail as is appropriate.

For smaller, self-managed associations, if there is trouble getting financial statements completed on time, it is relatively inexpensive to hire an accountant as needed to prepare balance sheets. This ensures that all the information will be completed in a timely manner without taking time out of community volunteer’s busy schedules. It also means that the statements have been professionally checked and relieves some of that stress from the board members as well.

There are also a multitude of services available from CSM to help homeowner’s associations get organized and prepare their own financial statements. With the professional support of an experienced team along with state-of-the-art technology, even the most inexperienced association members will be able to navigate the complicated waters that is financial management with ease.

 

What is a Financial Statement Used For?

The obvious answer is that detailed HOA financial statements can be used by the community association board of directors to adjust budgets, dues, and allocate money for maintenance and projects. The more detailed the statement, the more effective the association.

It is a requirement for any sort of financial planning. For starters, if records are kept consistently, association directors can look back on previous financial years to identify patterns that could affect the current budget and adjust accordingly. It is also imperative to keep track of money owed. If detailed records are not kept, it can be near-impossible to keep track of delinquent dues or know how much money is available to budget for community maintenance and new projects.

In some states, it is a legal requirement for Condo & HOA’s to maintain and submit regular financial statements. Even if it is not required in your state, it is a good idea to keep detailed records anyways as they will be extremely beneficial for all other aspects of homeowner’s association management.

Most importantly, having detailed financial statements readily available to all members can promote transparency between the board and the community. If the homeowners can see what their money is going towards, they will be more agreeable and open with the board of directors. It promotes teamwork throughout the community.

 

Where Should the Financial Statements Go?

As with most things regarding financial statements, it depends on state laws and community bylaws. Generally, there are three places that they need to be turned in:

  1. The Board of Directors – the board of directors should receive a full, unedited report. They will need all available financial details in order to make informed decisions and plans regarding community maintenance and future projects.
  2. Community Members – to foster an open and transparent relationship, homeowners should also receive copies of financial statements. These statements, however, should be altered to exclude sensitive information such as delinquent accounts. There is a difference between being sensitive and being secretive. If it will not cause an issue between community members, it should be included in the documents sent to community members. All  financial statements should be available upon request.
  3. State Department – if a homeowner’s association is organized as non-profit, an annual report must be filed with the Secretary of State. Failure to do so could result in losing their “Good Standing” status. This may not be applicable to all Condo & HOA’s.

The more accessible financial statements are, the better. Some community associations even opt to put their financial information on their website to allow homeowners to view it at any time. Of course, not all information needs to be publicly accessible, but everything that can be included should be included. Transparent financial processes help to promote teamwork and positive community relations between homeowners and association board members.

 

Who Should Prepare Financial Statements?

This answer depends on the size of the community. Smaller, self-managed associations may have an elected treasurer, financial officer, or president that is responsible for compiling financial documents. In such cases, it is a good idea to use a professional accountant to ensure that  financial statements are prepared correctly before releasing them to board and community members. Remember, just because someone was elected treasurer, does not necessarily mean they have accounting experience. It is always best to hire a professional. Large homeowner’s associations have more complex budgets and will usually have a management company that handles all financial data.

If statements are self-prepared by an elected community member, make sure that there is a backup of all financial records. In the unfortunate event that something happens and the preparer is no longer able to maintain their responsibilities, it can be difficult for the next person to learn their accounting methods or sometimes even gain access to the records.

Whether an association is made up of ten units or ten thousand units, it could be beneficial to hire a management company to ensure that everything is being run as efficiently and effectively as possible. When looking into property management companies, it is important to look for a company with a strong financial background. If the finances are not well kept, the entire community association becomes ineffective. Hiring a company to provide financial management assistance not only makes life easier for the board of directors but can also give community members peace of mind knowing that all finances are being managed accurately and efficiently.

 

The Importance of HOA Financial Statements

To make a great plan, it is important to have all the information possible. Reliable, consistent, and transparent financial statements not only help the HOA board of directors make well-informed decisions but also support community health by allowing all community residents and stakeholders to be a part of the team. Keeping members in the dark only promotes mistrust and working with inadequate or no financial information can lead to dwindling reserves for community upkeep and new projects.

Creating an effective HOA is as simple as choosing an accounting process that works for your team, keeping detailed records, and communicating openly and freely with the community about all financial information.

 

 

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