Become a Member: JOIN SFPMA TODAY LogIn / Register: LOGIN/REGISTER
Find Blog Articles for Florida’s Condo, HOA and the Management Industry.
Published February 3, 2020
Two weeks ago, I wrote to you about House Bill 623 that is making its way through The Florida Legislature. Another change to the law currently included in the bill is the following language:
718.112 Bylaws.—
(1) GENERALLY.—
(c) Any provision of the declaration, the association bylaws, or reasonable rules or regulations of the association which diminish or infringe upon any right protected under the Fourteenth Amendment to the United States Constitution or Art. I of the State Constitution is void and unenforceable without further action of the association. The association may record a notice in the public records of the county in which the condominium is located evidencing its intention to not enforce such provision. The failure of the association to record a notice in the public record may not be the basis for liability or evidence of discrimination or a discriminatory intention.
To simplify, the 14th Amendment made The Bill of Rights (The first ten amendments to the Constitution) applicable to the states. So this law basically says no provision of your governing documents can infringe upon the rights you have under the Bill of Rights. All of you know several of these rights such as the right to free speech, freedom of assembly, and freedom of religion.
There is plenty of law out there that says when you move into an association, you may give up some of the rights you may ordinarily have in your private home. You do this by agreeing to be bound by the governing documents. For example, courts have upheld the rights of Florida associations to prevent the use of the common elements for religious purposes, allowed associations to impose reasonable restrictions on speech through time limitations at meetings, impose restrictions on placement of political signs on the property or even placement of religious symbols in excess of certain sizes on your windows and doors.
The adoption of this proposed amendment by The Florida Legislature may throw all of these restrictions into doubt, including another one I haven’t mentioned yet. The Second Amendment is the right to bear arms. Inasmuch as Florida law allows associations to prohibit alcohol use on the common elements and prohibit religious ceremonies on the common elements I always opined that the association had the right to ban weapons on the common elements via a rule. If this proposed amendment passes, no way would an association be allowed to ban guns from the common areas.
I have serious concerns that if this amendment passes, associations will potentially be embroiled in case after case, where the association attempted to impose all of the reasonable restrictions mentioned above, and unit owners taking the position that the association is prohibited from doing so because it violates their constitutional rights. Until now, you couldn’t sue an association for a violation of these rights inasmuch as the action by the association did not constitute “state action.” This new statute changes all that if it passes and will open a Pandora’s box and flood of litigation between associations and their owners.
If you are a believer that associations are notorious for not providing their owners with rights guaranteed by the U.S. Constitution, this new proposed law may not bother you. If on the other hand you believe that the association should still be able to impose reasonable restrictions in order for all of us to live in harmony with each other, this new law should bother you. A LOT.
Tags: Condo and HOA Laws, Law and Legal
Welcome to the board! Being a new HOA board member, you are going to be wearing many different hats and stepping into a few challenging roles to help make sure your HOA is running smoothly. Now that you’ve been elected, the big question is…What’s next?
For many newly elected board members it is their first time in the position, presenting a pretty steep learning curve. Lucky for you, Vesta has a few tips to get you more comfortable in your new position.
Just follow these board member basics and you’ll have all the tools you need to become the best board member you can be!
1. Understand your role
While you volunteered for this position, you also should realize that it is not to be taken lightly. The board is responsible for the management of all aspects of the association. You are a key element in ensuring that your association continues to operate and that all of the residents are happy with the HOA they chose to live in. Vesta has an article on understanding the roles of the HOA board that you can read here.
The best way to quickly learn how your association achieves these goals is to read your association covenants, by-laws and other governing documents. Don’t be afraid to ask veteran board members about their responsibilities and the minutia of the job. Often experience is the best teacher, so talking to seasoned board members is a great way to figure out what to do and more importantly, what not to do.
2. Team up with a great property management company that you can trust
If your board works with a property management company that you trust to do right by your community, you can use them as a resource to help you ease into your new role! Working effectively with your management company is a great way to make sure you’re getting everything you can out of what they offer.
Having a close relationship with your HOA’s CAM will open doors for you and the rest of your board that will lead to efficient and effective methods of management. As a part of their services, your CAM should be providing you and your residents with clear communication in enforcing your association’s policies and assisting with your budget, financials and even managing your vendors!
3. Participate
If you want your board to be effective, all board members should be participating, both during and between meetings. Make sure you’re going to every meeting you can, volunteering for projects and taking an active role in the management of your community.
Everyone on the board should be doing whatever they can to make every meeting count. When a meeting is run poorly, more issues are created than solved. While making sure your meetings are productive can be a tall order, it can really be as simple as following procedure, reading the agenda, keeping accurate minutes and reviewing what was discussed at the end of the meeting.
You can find some tips about leading productive board meetings here.
4. Communicate
Many of your neighbors will probably agree that communication between the board and community is vital to the success of a community. Transparency is necessary if you want to maintain a positive relationship between your board and your neighbors. Make sure you keep your community informed about issues, ideas and changes that are going on in the community you both live in.
5. Take advantage of the Community Associations Institute
In their own words, CAI is an international membership organization dedicated to building better communities. CAI serves community associations by providing guidance through seminars, workshops, conferences and education programs for community managers and other industry professionals.
CAI offers many educational services including online training and in-person workshops that you can attend. Many property management companies also host board certification classes that you can attend
Volunteering for your community is rewarding and challenging; it’s important to take some time now to learn about your role as a board member and how to best serve your association. Following these guidelines is a great way to ensure your transition is smooth and that you enjoy your time on the HOA board!
Tags: Condo and HOA, Condo and HOA Board of Directors, Management News, Members Articles
In a condo or HOA the normal method to collect delinquent maintenance fees is to send an owner to the attorney. The attorney will then move the process through the courts. This means foreclosure for delinquent maintenance fees. The object is to foreclose and take “intervening title” on properties.
It’s “intervening title” because in most cases the unit still has a mortgage. Soon enough the lender is coming for their collateral. The association can hold title but they cannot sell the unit as it may have a debt attached to it. With luck the association can get this title without too much expense and rent out the unit. That is the only way the association can recover money if somebody does not bid the unit when it goes for sale.
The association foreclosure worked in the past but now it is becoming obsolete.
The rental revenue may cover losses for maintenance fees. It may also cover the rehabilitation of the unit, commissions and marketing of the unit to a renter. There are also the legal costs & fees that the association spent to get the title.
With luck the association can hold on to this unit long enough to recover their money. Its a hard way to recover delinquent maintenance fees. It is also an obsolete maneuver to foreclose to recover money.
This is how it has always been, especially during the real estate meltdown of the last decade. Now, the times they are a changing.
In Florida, an amendment to Florida Statute § 697.07 has been proposed. This new law will entitle banks to step in and take those rents. In essence this completely neutralizes the benefit of foreclosure for community associations.
Delinquent maintenance fees, legal costs, late fees, late interest will remain a loss. Only the lender will benefit when an association forecloses. In other words there will be no good reason for a community association to foreclose on a unit. They will not be able to monetize it should they prevail in court.
These are not isolated events but a trend. Banks may be slow learners but they will always make decisions that will benefit their bottom line in the end.
In South Carolina a bill pre-filed this month would prohibit HOAs from foreclosing at all. This bill would strip this power from associations. “Real property used as a primary residence may not be sold if the action was instituted by a homeowners association attempting to collect unpaid dues, fee, or fines”, the proposed bill states.
These are not isolated events but a trend. Banks may be slow learners but they will always make decisions that will benefit their bottom line in the end.
Association foreclosures are likely to become less common nationwide. This is a good thing! Community associations and their attorneys have long abused this power. Small debts get inflated with legal fees, and the case gets moved to foreclosure. Ultimately this does little to benefit the association.
Eliminating foreclosures will limit community association’s power to collect delinquent assessments. Fortunately, there are other alternatives to recovering delinquent maintenance fees.
People are fallible and don’t always manage their financial affairs well. Such people need a wake up call, NOT their home confiscated.
In 2009, during the height of the real estate meltdown, many properties did not have equity. Originally purchased by “Flippers and investors,” many were simply abandoned. Banks were stalling foreclosure and these properties were sitting there rotting. In those times it made good sense for the association to rush to the courthouse and foreclose on delinquent units.
Today most homes have equity and are appreciating in value. It’s unlikely the current owners would let the property be taken from them if they can avoid it. If equity outweighs the debt it would be foolish to lose a property. Most units delinquent in their maintenance payments will pay without legal intervention.
Eliminating foreclosures will limit community association’s power to collect delinquent assessments. Fortunately, there are other alternatives to recovering delinquent maintenance fees.
Retaining a collection agency that specializes in community association debt is becoming an increasingly popular option.
Many collection agencies work on a contingency basis, while Lawyers get paid regardless of the outcome of the cases they take. This means collection agencies are much more motivated to seek a timely resolution.
Strategies employed by debt collectors have a much lower impact on your community. With a strategy of engagement and education, these agencies are looking to resolve issues and improve communications within the community. This is done with the use of proper notifications, outbound calls, credit bureau reporting, letters sent to mortgage holders, placing of liens, and other techniques.
Frankly, association foreclosure on delinquent owners is obsolete. Even without the change in the laws this method to collect on delinquencies needs to be reconsidered.
It’s time for management companies and boards of directors to think how the future collects and engage specialized collection companies to collect delinquent condo and HOA debts.
Tags: Condo and HOA Collections, Members Articles
Axela Technologies Inc, a specialized collections company servicing Community Associations, announced today the promotion of longtime industry expert Mitch Drimmer to President of Business Development. The appointment comes as the company exceeded 600% growth in 2019 under Drimmer’s leadership.
Axela Technologies, a specialized collections firm servicing the community association industry, has promoted Mitchell Drimmer to President of Business Development. This promotion was precipitated by strong growth in Axela’s collections division in 2019. In his new role, Drimmer will spearhead the formation of a national sales team as the company continues to enter new markets.
In his prior role as VP of Business Development, Drimmer worked with community associations and their management companies to introduce innovative strategies to collect delinquent maintenance fees. Under Drimmer’s watch in 2019, the company expanded operations, and grew its’ client base by over 600%. He has traveled nationwide, speaking at industry events and educating community association managers about the most effective ways to address the ever-present issue of delinquencies, solidifying his position as a thought-leader within the industry.
“Mitch has done a fantastic job getting the word out that there is a new and better way to recover delinquent fees,” says Martin Urruela, CEO of Axela. “He is committed to helping community associations and their managers adopt new technologies to better run their communities and businesses. Above all, Mitch is a fantastic communicator and teacher, and cares deeply about the success and well-being of the communities that we serve”.
Axela believes that legal action and foreclosure should be the measure of last resort when addressing association delinquencies. Through proprietary technologies that automate and streamline the process, Axela customers can escalate a unit to collections easier than ever to start seeing results immediately.
“In the United States, we have over 73 million people living in associations paying almost $100bn in annual assessments. A large percentage of which goes uncollected due to simple process inefficiencies,” states Drimmer. “Our mission at Axela is to ease the burden on managers and boards with the best collection solutions available in the market. It works; as evidenced by the fact that less than 5% of our collection files move to foreclosure. And did I mention we’ve never lost a customer?” quips Drimmer.
Drimmer has worked for Axela Technologies since early 2018, joining the company as the first business development executive. He earned a Bachelor of Arts in History from Hunter College in New York City, and has worked in the community association collections space since 2007.
Tags: Business Articles, Condo and HOA Collections, Management News, Member Highlights
1. Low speed vehicles can only be operated on roadways with a speed limit of 35 MPH or less.
2. Low speed vehicles must be registered (Tag) and insured as with any motor vehicle.
3. To operate a low speed vehicle, you must have a valid drivers license in your possession.
4. Low speed vehicles must be equipped with all safety equipment such as, headlights, tail lights, seat-belts. mirrors etc..
5. Low speed vehicles are subject to all traffic regulations as provided by Florida Statutes and must be registered and insured.
**REMINDER** “Unregistered” golf-carts traveling anywhere within the City is never permitted except when traveling to and from a nearby golf course on a municipal street authorized by the governing municipality and as provided for in Florida Statute 316.2122.
The Golf Car Connection is an authorized Yamaha Golf Cart and Motrec industrial vehicle dealer.
We offer Yamaha, Motrec, and other popular golf cart brands including Club Car and EZ-GO for sale, lease, and export since 1981.
Call our office for a quote: 954-946-8008
Looking for a new or used Golf Cart? Look no further! Golf Car Connection makes it easy to find new and used golf cars for sale.
Browse our complete inventory of new and used golf carts. Contact Us to request a price quote.
Tags: Condo and HOA Budgets, Florida Rising Magazine, Golf Car Articles, Management News, Member Highlights
In the last few months, a growing number of community associations across Florida are being threatened with litigation because their websites are allegedly not friendly to visually impaired users.
Frankly, not a darn thing. It appears that the lawyers and firms threatening these specious lawsuits are conveniently conflating the obligations found under Title III of the ADA for places of public accommodation with the different set of obligations found in the Fair Housing Amendments Act (FHA) for housing providers.
Or, these lawyers are simply trying to avoid application of the ADA altogether since most private residential communities are not considered places of public accommodation. The ADA requires that every owner, lessor or operator of a “place of public accommodation” provides equal access to users who meet ADA standards for disability.
These lawsuits are attempting to apply the ADA standards for websites to housing providers impacted by the FHA.
These threatened website lawsuits are uniform in style (mostly forms sent in mass) and generally allege that a “tester” was unable to navigate an association’s website, resulting in a discriminatory impact on those who are visually impaired.
The suits allege that community association websites were not accessible to visually impaired persons thus violating the FHA. Community associations are considered housing providers under the FHA and, as such, must make reasonable accommodations for residents and guests with verifiable disabilities.
This is true in the realm of service and support animal requests and these new website lawsuits attempt to expand that obligation to include visually impaired visitors to an association website. It is curious that these testers did not reach out first and request that the allegedly deficient websites be modified for a visually impaired person to more easily navigate the site. Instead, demands are being summarily sent to community associations statewide who have websites in an attempt to reach a quick settlement.
The demand letters offer a conditional release for payment of “reasonable attorney fees” because the attorney sending the letter claims the firm is entitled to compensation for work completed to investigate, research and determine the community association’s noncompliance.
Of course one cottage industry begets another. In addition to a handful of law firms who believe they can generate some revenue with these tester lawsuits, we now also have a number of companies advising communities that they can make their websites compliant for fees ranging anywhere from $2,000-$5,000 and annual hosting around $300-$1,000 per year.
In actuality, the cost depends on the content and functionality of the website including the number of features that must be optimized for the visually impaired. There are also some solutions that are free depending on the website platform.
Many of the demands and threatened lawsuits appear to lack any merit and seem to be merely an attempt to obtain a quick settlement payment from community associations or their insurers.
Many of the communities who have been threatened have website features that are password-protected, are accessible only to owners, or don’t have the features that are the subject of the complaint, so the allegations appear to be specious.
While we can debate the merits of these tester lawsuits and even seek legislative clarification in the upcoming 2020 Legislative Session, in the interim, associations with websites need to speak with experienced counsel to confirm whether or not their association’s website must have the necessary software for disabled users.
This confirmation is particularly important if your community uses its website to list properties for sale or lease. As for the attorneys who have decided to send out these blanket demands without the benefit of further investigation, let’s hope they have a change of heart when associations push back.
Donna DiMaggio Berger is a board certified specialist in condominium and planned development law, a shareholder at Becker Law and the executive director of the Community Association Leadership Lobby.
Tags: Condo and HOA, Condo and HOA Laws, Law and Legal, Management News, Members Articles
Since I work closely with management professionals, one of the more difficult questions I routinely face from community association leaders is how the community should go about the process of selecting a new community association manager. It causes me great concern when I first hear that a community is thinking of changing managers as most of them I know are conscientious and hard-working individuals who truly give their all for their clients. My first reaction is to ask the board members why they are even considering changing managers. Among the more common answers I hear are:
The follow-up comment I usually get is to “please not tell the manager” that we are looking to replace him. While I understand this sentiment, the secrecy between board and community association manager highlights the much larger problem to me. Quite simply, there has been a failure of communication between all parties involved. Unfortunately, it is often the association manager who becomes the scapegoat for this communication failure and will lose not only a client but also valuable income for years to come. That is why it is in every association manager’s best interest to be proactive in his managed communities’ communication efforts. A well-informed client is a happy client.
Communicating with board members is simple enough. Association managers already attend numerous board meetings, annual meetings and even committee meetings. However, with the exception of those homeowners who attend the annual meeting, most residents are largely unaware of the professional who manages their association. Worse still is that the only communication some residents ever receive from their association manager is a notice of a rules violation or a fine. That is why communication tools such as letters, e-mails, newsletters, community websites and even social media are vital to helping association managers properly communicate with the vast numbers of residents whose communities they manage.
Of course, there are numerous other advantages to establishing and maintaining great communications within the communities you manage. Better informed residents tend to be better behaved residents. You can use your communication efforts to build civic pride and create a better sense of community. Perhaps, most importantly, successful communication efforts create loyal clients. Wouldn’t you rather have the board come to you to discuss management shortcomings such as those listed above instead of going out shopping for a new manager behind your back? Of course, you would!
Taking the time to produce great communications is not always at the top of a busy manager’s “To Do” list. Understandably, there are numerous distractions and emergent matters to deal with. However, if you neglect a community’s communication needs, don’t be surprised to learn your clients have been secretly looking to replace you. You can avoid that disappointment by making communications a top priority. If you need help telling your story, don’t be afraid to seek out an expert. Communicating with your clients is the best way to assure they will stay loyal to you for years to come.
Tags: Board of Directors, Finding a Property Manager, Management News
About our Platform: Automated rental payment and reconciliation platform specific to the real estate sectors. It is both easier to use and more powerful than solutions offered by banks and traditional software vendors. PayProp was launched in 2004. Since then it has grown quickly to become a leading processor of rental payments for the property management industry, and today serves a large and diverse customer base of property professionals. Our platform sets the standard for speed and accuracy of payments as well as cost and payment status transparency, offering our customers complete transactional control and regulatory compliance.
Pilot our platform with 1 tenant in 2020 and pay $0 on setup and training! Offer ends 12/31/19. Call 954-224-8929 today for your 15 minute demo! www.payprop.com
PayProp: Partnering with SFPMA offering services to our members and our Industry in Florida then all across the United States. Frank J Mari / Executive Director of SFPMA
Tags: Business Articles, Condo and HOA Accounting, Condo and HOA Collections, Management News, Member Highlights
Over the past few months, we’ve spoken with countless property managers in order to learn how to better serve the needs of our users. Many expressed concerns regarding a one log-in system to track all gate activity for both guests and residents. ZUUL Systems is just that: an all-in-one control system, database, and login that’ll take care of all your gate access control needs.
ZUUL’s resident lane is currently compatible with both AWID and MAXTEK RFID readers and transponders. Simply import the vehicular and transponder data into our database, and you’re all set.
Additionally, we have decided to extend our beta pricing until March 31, 2020. We want to ensure our clients have enough time to make a confident, informed decision, not a rushed one. We offer our product FREE for six months, with no contracts thereafter.
Call one of our team members today at 561-501-3539, and learn how ZUUL Systems is the solution your community needs.
The wait is over. ZUUL Systems is here.
Adam Lucks CEO
ZUUL Systems
New Advances COMING IN 2020..
ZUUL Key
Traffic camera integration
Enhanced ID validation with DMV
2FA for ALL Admins
Setting the Ground Rules for Community Association Committees
Not enough community association boards make effective use of committees. Committees can be very useful when it comes to providing recommendations to the board and assisting the board with carrying out its duties and responsibilities. However, many associations do not take the time to establish committees or set parameters for their work so that committees may assist in the operation of the association.
Setting up committees is the responsibility of an association’s board of directors. The board must appoint the members of each committee at a properly noticed board meeting, during which the directors should provide instructions and set parameters for the scope of the committees’ responsibilities.
One of the best approaches is for boards of directors to use their annual meetings to establish various committees, appoint committee members and establish areas of purview for each. Each committee should have at least three members.
With the exception of the rules enforcement committee, board members may also serve as members on committees. Many associations choose to have a board member on each committee along with two non-director volunteers, as this enables the board member to keep their fellow directors abreast of the committee’s work and progress.
The only committee that is required by law for Florida community associations is the rules enforcement committee, which is also often referred to as the fining, violation or grievance committee. Associations that wish to levy fines and impose the suspension of use rights for violations must utilize such a committee to do so. Per Florida law, this committee cannot be comprised of board members or spouses or relatives of board members in order to maintain its independence from the board.
Fines or suspensions may only be imposed after the association provides at least 14-days written notice to the owner, occupant, licensee or invitee to be fined or suspended, and they must be provided an opportunity for a hearing before the rules enforcement committee. During these hearings, the committee should hear and evaluate the alleged violator’s side of the story behind the underlying fine. The hearing should be closed to all members except for the alleged violator and the corresponding unit owner, should the violator be their tenant. At its conclusion, the committee members should vote on whether to confirm or reject the fine or suspension levied by the board, which requires a majority vote to be imposed.
The other most common types of committees are the budget committee, which assists the board with creating the annual budget, and the architectural review committee, which is typically charged with reviewing any requests for construction, improvements or alterations taking place on association property or within a unit or exterior of a lot.
By utilizing committees and ensuring that they are staffed by dedicated volunteers, associations can facilitate their operations while also avoiding overburdening board members with too many issues and responsibilities. When first establishing committees, boards of directors would be well advised to consult with highly qualified association legal counsel regarding their creation and setting forth the scope of their responsibilities.
Tags: Condo and HOA Board of Directors, Condo and HOA Reserves, Management News