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The opportunity an HOA can capitalize on is negotiating a cell tower lease agreement that ensures consistent rent for years, often decades, to come.

The opportunity an HOA can capitalize on is negotiating a cell tower lease agreement that ensures consistent rent for years, often decades, to come.

  • Posted: Jan 24, 2019
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HOA can capitalize on is negotiating a cell tower lease agreement that ensures consistent rent for years, often decades, to come.

Companies like AT&T, Verizon, T-Mobile and Sprint continue to explore options to meet their wireless customer demands, and part of this search includes the construction of new cell sites across the United States. Cell sites come many sizes, from a traditional tower that is big enough to climb, to an antenna that sits hidden on a rooftop, only seen by those flying over.

 

Cell phone usage has skyrocketed to the point of near saturation in the US. According to Pew Research Center, 95% of adults have a cell phone & a growing share of Americans now use smartphones as their primary means of online access at home. In 2016, wireless subscribers’ connections hit 377.9 million, with over $1.4 trillion (yep, trillion with a “t”) having been invested globally in the last 18 years. This is BIG business & there are opportunities for landowners to capitalize.

The opportunity an HOA can capitalize on is negotiating a cell tower lease agreement that ensures consistent rent for years, often decades, to come. There are certain pros and cons that an HOA or Condo Association must ponder if a cell tower company or wireless carrier approaches them about putting a tower on their property.

 


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Does an HOA have to renew records for the entire community and for each homeowner

Does an HOA have to renew records for the entire community and for each homeowner

  • Posted: Jan 02, 2019
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We were asked a Question– In Broward County does an HOA have to renew our records for our entire community or just for each homeowner? 

Florida Department of Economic Opportunity

Revitalization of Expired Homeowners Association Declarations and Covenants

In 1963, the Florida Legislature enacted the Marketable Record Title Act (“the Act”), codified as Chapter 712, Florida Statutes. The Act was intended to simplify title searches by extinguishing old title defects and other recorded issues affecting title to real property after 30 years, except for certain matters (see Section 712.03, Florida Statutes – Exceptions to marketability).

An unanticipated consequence of the Act was that it extinguished the covenants of some planned communities, which suddenly found they had lost their legal authority to collect assessments and enforce the covenants. Since then, the Florida Legislature has amended the statutes to provide both a process to preserve the covenants before they are extinguished by the Act, and a process to reinstate them if they have already been extinguished or have expired.

Applicable Statutes

 

 

Revitalizing Expired / Extinguished Homeowner Association Declarations of Covenants

Chapter 720, Part III, Florida Statutes, creates a mechanism to revive / reinstate / revitalize (these terms are all used to mean the same thing) a declaration of covenants that has ceased to govern some or all of the parcels in a subdivision. Briefly, the process includes the following steps:

  1. Parcel owners within a community must create an organizing committee composed of not less than three community members.
  2. The organizing committee must prepare the declaration of covenants and, if necessary, updated governing documents for the homeowners association, which must then be approved by a majority of affected parcel owners.
  3. Next, the committee must send the proposed revived declaration and homeowners association governing documents to the Department of Economic Opportunity (DEO) at the following address:
    • Department of Economic Opportunity
    • Attn: Division of Community Development
    • 107 East Madison Street, MSC 160
    • Tallahassee, Florida 32399-4120
  4. DEO has 60 days to determine whether the documents comply with the requirements of Chapter 720, Part III, Florida Statutes, and issue a letter determination approving or denying the requested revitalization. It is not uncommon for DEO to complete its review and issue a letter approval or denial before the sixtieth day.
  5. If DEO approves the proposed revitalized declaration and homeowners association governing documents, the declaration of covenants, articles of incorporation and bylaws of the homeowners association, the DEO determination letter of approval, and a legal description of each affected parcel must be recorded with the Clerk of the Circuit Court in the county where the affected parcels are located within 30 days after the organizing committee receives DEO’s approval. The articles of incorporation must also be filed with the Department of State if they have not been previously filed. Immediately after recording, the organizing committee must provide copies of the recorded documents to the owners of all affected parcels.

Limited Role of DEO

As noted above, DEO’s role with regard to homeowners association covenants is limited to deciding whether documents proposing to revitalize expired/extinguished covenants that are submitted to DEO by an organizing committee comply with the requirements in Chapter 720, Part III, Florida Statutes. DEO has no authority to:

  • Extend the duration of homeowners association covenants that have not expired,
  • Deny approval of proposed revitalized covenants because of a dispute between a homeowners association and one or more of its members, including disputes in litigation,
  • Decide whether any of the lots in a subdivision are exempt from revitalized covenants,
  • Regulate homeowners associations,
  • Resolve complaints about homeowners associations, or
  • Provide legal advice.

If you need legal advice in connection with proposed revitalized homeowners association declarations, you may contact The Florida Bar’s Lawyer Referral Service at 1-800-342-8011, Monday through Friday, from 8:00 a.m. to 5:30 p.m. Eastern time, or through its website (The Florida Bar). The Florida Bar can provide you the names of attorneys in your area who may be able to assist you.

 

Frequently Asked Questions

What is Meant by “Verified Copies” and “Affidavits”

Part III of Chapter 720, Florida Statutes, states that “verified copies” and “affidavits” must be submitted to DEO as part of the covenant revitalization process.

Verified Copies

A “verified copy” means that someone has sworn under oath and in the presence of a notary public or other officer legally authorized to administer oaths that the copy is a true and accurate copy of the original document. When verified copies are required, a notarized letter from a member of the organizing committee or an officer of the homeowners’ association may be attached to the copies as verification that they are accurate copies. The letter should say that the person signing it verifies that the documents attached to the letter are accurate (or true and correct, or exact) copies of the original documents. If the documents are not attached to the letter, the letter must identify the specific documents to which it refers. Copies of the association’s governing documents that have been obtained from the official records of the county where the subdivision is located and have been certified as accurate by the Clerk of Court are also acceptable.

Affidavits

An “affidavit” is a written statement confirmed by the oath or affirmation of the person making it (the affiant), taken before a person having authority to administer such an oath or affirmation. In other words, it is a written statement that is signed and sworn to be true in the presence of a notary public or other official who is legally authorized to administer oaths. It must be signed by the person making it, and be signed by and bear the original stamp or seal of the notary/official.

 

How Do I Obtain Copies of My Homeowners Association Governing Documents and Covenants?

The governing documents for a subdivision and homeowners association consist of the declaration of covenants, the articles of incorporation, and the bylaws. The declaration of covenants for a subdivision is usually recorded in the Official Records of the Clerk of the Circuit Court for the county in which the subdivision is located. Copies of the Articles of Incorporation and bylaws of the homeowners association can be obtained from the Florida Department of State, Division of Corporations. Copies of the governing documents may also be obtained directly from the homeowners association.

 

Does the State of Florida Regulate Homeowners Associations?

No. Homeowners associations are required to comply with applicable Florida Statutes. However, they are not regulated by any state agency.

 

Who Handles Disputes / Complaints about Homeowners Associations?

Under Section 720.311, Florida Statutes, the Department of Business and Professional Regulation offers a dispute resolution program for some types of disputes between a homeowners association and parcel owners.

 

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How are repairs addressed with Property Managers in my building

How are repairs addressed with Property Managers in my building

  • Posted: Dec 09, 2018
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How are repairs addressed with Property Managers in my building

Maintenance and Repair Costs

Good maintenance and repairs keep tenants happy and preserve the value of your investment which make them a very important part of land-lording. By hiring a management firm you gain access to both their in-house maintenance staff, as well as their network of licensed, bonded and insured contractors who have already been vetted for good pricing and quality work. This can translate into significant savings compared to going through the yellow pages and hiring a handyman yourself.

*South Florida Property Management Association has our own Vendor & Business Member directories these members directly aid our Management members giving them cost savings for any work needed in the buildings they manage. This savings means savings for the building owners.

 

Increased inspections means happier tenants, It aids in the value of your investment

Preventative maintenance is achieved through putting systems in place that catch and deal with maintenance and repair issues early on, before they grow into larger more costly problems. This requires a written maintenance check program, detailed maintenance documentation and regular maintenance visits. The management firm can also offer you suggestions and feedback on upgrades and modifications, both how they will affect the rent you can charge, as well as their impact on maintenance and insurance.

[/accordion-item] [accordion-item title=”Services that Property Managers provide”]The following is a list of the tasks a Manager commonly perform for owners. You may only need some of these services, and the Management companies you interview may offer more or less than what is listed here.

Evaluate the property and determine an accurate rental rate

  • Perform detailed documentation of the interior and exterior including photos
  • Offer recommendations on repairs and cosmetic improvements that maximize monthly rent while providing good ROI.
  • Gather data on rental rates in the area and work with owners to determine the optimal rental rate. Rent research will vary, but should include looking at the recently rented comparables according to size and type.
  • Discuss with owners the pros and cons of different policies such as accepting pets, allowing smoking etc.

 

Market the property for rent

  • Prepare home for rent
    • Clean home and optimize interior appeal
    • Manicure landscaping to increase curb appeal
  • Create ads tailored to the property and advertising medium. Some of the mediums commonly used are:
    • Paid and free rental listing websites
    • Print publications
    • Signs
    • MLS
    • Fliers
  • Work with other realtors and leasing agents to find a tenant
  • Provide a 24-hour hot-line where prospective tenants can listen to detailed information about the property
  • Field calls from prospects for questions and viewings
  • Meet prospective tenants for showings throughout the week and weekend.
  • Provide prospective tenants with rental applications that are legally compliant with fair housing laws
  • Collection applications with application fee
  • Perform a background check to verify identity, income, credit history, rental history, etc.
  • Grade tenant according to pre-defined tenant criteria
  • Inform tenants who were turned down
  • Draw up leasing agreement
  • Confirm move in date with tenant
  • Review lease guidelines with tenant regarding things like rental payment terms and required property maintenance
  • Ensure all agreements have been properly executed
  • Perform detailed move in inspection with tenant and have tenants sign a report verifying the condition of the property prior to move-in.
  • Collect first months rent and security deposit
  • Receiving rent
  • Hunting down late payments
  • Sending out pay or quit notices
  • Enforcing late fees
  • Filing relevant paperwork to initiate and complete an unlawful detainer action
  • Representing owner in court
  • Coordinating with law enforcement to remove tenant and tenants possessions from unit
  • Advise in the event of a legal dispute or litigation
  • Refer owner to a qualified attorney when necessary
  • Understand and abide by the latest local, state and federal legislation that apply to renting and maintaining rental properties.
  • Perform periodic inspections (Inside and outside) on a predefined schedule looking for repair needs, safety hazards, code violations, lease violations, etc.
  • Send owner periodic reports on the condition of the property
  • Provide accounting property management services
  • Make payments on behalf of owner (Mortgage, insurance, HOA dues, etc.)
  • Detailed documentation of expenses via invoices and receipts
  • Maintain all historical records (paid invoices, leases, inspection reports, warranties, etc.)
  • Provide annual reporting, structured for tax purposes as well as required tax documents including a 1099 form
  • Advise owner on relevant tax deductions related to their rental property
  • Provide easy to read monthly cash-flow statements which offer a detailed breakdown of income and itemized expenses
  • Provide and oversee an in-house maintenance crew
  • Establish a preventative maintenance policy to identify and deal with repair needs
  • Provide an network of licensed, bonded and fully insured contractors who have been vetted for good pricing and good work that is up to code.
  • Assign jobs to different parties (in-house employees, handyman and professional contractors) based on who will do the best job for the best price.
  • Maintain outdoor areas
    • Leaf and snow removal
    • Landscaping
    • Removing trash and debris
  • Maintain and monitor a 24 hour emergency repair hot-line
  • Larger renovation or rehab projects
    • Provide recommendations on how the project can maximize rental income.
    • Prepare preliminary cost estimates
    • Get multiple independent bids for the work
    • Act as general contractor overseeing the work
  • Inspect unit and fill out a report on the property’s condition when the client moves out
  • Provide tenant with a copy as well as estimated damages
  • Return the balance of the security deposit to the tenant
  • Forward any portion of the owner’s portion of the tenant deposit to the owner or hold in owner reserves for repairs.
  • Clean unit and perform and needed repairs or upgrades
  • Re-key the locks
  • Put the property back on the market for rent

 

 

How does the community association manager track incoming resident maintenance requests and the subsequent work orders?

A software solution should be in place here. You want to find a manager with a system that does not allow maintenance requests to fall through the cracks and require multiple tenant requests before the work is done. Ideally, tenants should be able to submit maintenance requests online. ( Add the Page of all PM, Landlord Software )

 

How are after hours maintenance requests and emergencies handled and who handles them?

Make sure its someone qualified to handle the problem. The last thing you want is an answering machine or someone saying you will have to wait till Monday to get your or your tenants issue resolved.

 

What system do they have in place to practice preventative maintenance?

Preventative maintenance is the mechanism a manager uses to maintain the value of your property and avoid letting small issues become larger more expensive problems down the road. This involves things like a predefined maintenance and inspection schedule as well as promptly addressing known issues. This of course assumes owners are willing to make the necessary repairs when they come up. Slum lords may balk, but successful real estate investors know that when you’re in for the long haul you have to engage in sustainable practices that maximize property values, not short-term practices that delay (and multiply) costs.

 

Do they have their own maintenance crew?

If the answer is yes, are they covered by workers compensation and are they licensed, bonded and insured? Additionally are they available 24/7/365 for emergencies?  As a member of SFPMA we have a full listing of vendors & business members on our directories for them to choose from.

 

What contractors do they work with?

Do the contractors carry workers compensation and are they licensed, bonded and insured? Does the management company oversee the contractors’ work for quality, code compliance and cost effectiveness? Some owners like to take the extra step of researching the primary vendors that will be used to make sure there are no red flags. All SFPMA members are checked making sure they have the proper licenses and insurance a requirement for membership.

 

What rules do they have in place regarding contractors entering occupied properties?

Make sure they have an established policy here. Anytime contractors and maintenance personnel are entering occupied units there is potential for trouble if the situation is not handled carefully.

 

Do they provide itemized statements with receipts for the work performed?

This adds accountability and transparency to the billing process. You don’t want to work with a management company that is unwilling to provide solid documentation of where your money is going.

 

Do they let tenants perform repairs?

Tenants perform inferior quality work, and their lack of insurance coverage, liability or workers compensation could leave you liable in the event of an accident or injury. Why take the risk of having them accidentally fall off a roof or ladder, electrocute themselves, or flood your home? If they don’t allow tenant repairs, make sure this is written into the rental agreement. If you are comfortable allowing them, at least have the tenant sign a waiver and agree that the repairs must be approved by the manager.

 

Do they allow tenants to hire their own handyman?

This is also inviting trouble, and the rental agreement should prohibit this. In some cases written into a single family home lease some repairs are included in the rental agreement, Find out if there are any agreement such as this. Check to make sure this is not considered a liability hazard although providing these services eliminates the issue of tenant neglect and can improve tenant satisfaction which helps with retention.

 

What is involved in their process for preparing a property to be re-rented after a tenant has vacated? How long does this process take?

The property should get the usual cleaning, paint job, re-keying, etc. but this is also a good time to consider strategic improvements that will maximize your rental revenue. You want to find a property manager that will proactively offer this kind of feedback on an as needed basis. Obviously the quicker the turnaround time, the better.

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Here are five holiday party ideas that are sure to please your residents

Here are five holiday party ideas that are sure to please your residents

  • Posted: Nov 25, 2018
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Want to throw a holiday party that will bring residents of your community together for a fun-filled evening?

Here are five holiday party ideas that are sure to please your residents:

 

  1. Tacky Sweater Party

While so cliché these days, hosting a tacky sweater party is a great way for residents to break the ice and start mingling with each other. The ugly holiday sweater that was once popular in the 80s is making a big come back, and residents can easily find this festive attire online or come up with their own creations. Encourage residents to channel their inner-tackiness by offering prizes for the ugliest sweaters. If hosting the party at your neighborhood clubhouse, you can spruce up your community amenities for the event with bright-colored lights, oversized holiday inflatables, and tinsel-filled trees.

 

  1. Holiday Caroling Party

Round up your neighbors to meet at the community clubhouse for hot chocolate (and perhaps a seasonal adult beverage) and holiday cookies. Once everyone arrives, head out for an evening of holiday caroling. Having several copies of sheet music on hand will be beneficial for the group. It’s also helpful if you notify neighbors ahead of time that you will be caroling in the community to ensure that you will have an audience.

 

  1. Beer Tasting Party

There’s a very good chance that residents in your community have been to a wine tasting party, but what about a beer tasting party? Craft beer is on the rise, and it seems as though there are new breweries popping up in Florida every day. Encourage your guests to make an unbiased vote on their favorite beers by concealing the beverages in brown paper bags. As the evening comes to an end, make a toast and reveal the winning beers.

 

  1. Holiday Cookie Exchange Party

A cookie exchange is a classic holiday party and provides guests with an opportunity to load up on a diverse selection of festive cookies. Ask each guest to bring two dozen cookies and copies of the recipe to trade at the party. You can choose to either ask guests to bring a separate container to collect the cookies or provide containers for the guests.

 

  1. Winter Wonderland Party

While snow is a rare site in Florida, you can still get into the holiday spirit by hosting a winter wonderland party. Choose food and beverages that correspond with the snowy theme, such as marshmallows for roasting, snow cones, cheese fondue, and a white party punch. Decorate your community amenities with an abundance of white string lights, and take the ambiance up a notch by renting a snow machine.

As you begin to plan the holiday party for your HOA community, take these five suggestions into consideration to throw a party that is sure to be a crowd pleaser.

 

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VIOLATIONS! IT’S NOTHING PERSONAL

VIOLATIONS! IT’S NOTHING PERSONAL

  • Posted: Nov 20, 2018
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VIOLATIONS! IT’S NOTHING PERSONAL

by Enrolled Agent Steven J. Weil, Ph.D., EA, LCAM, president, Royale Management Services, Inc.

We know that the first thing most owners think when they receive a violation notice is that they are being targeted and that the board or management is out to get them. Nothing could be further from the truth. The board is charged by the governing documents with oversight of association operations along with protecting the property value and enforcing the rules.

Violation notices are not personal or targeted. They are simply the means by which the association lets owners know about rule violations and gives them a chance to correct a problem.  Violation notices can be generated by a manager’s observations, board observations and even from observations by fellow owners. While you may feel as though you are the only one to receive a violation notice, this is generally not the case. The truth is that most of the violation notices can be easily remedied by simply fixing the problem or complying with the rule and letting management know the problem has been resolved.

We are often asked why we sent a violation notice instead of simply knocking on the door or calling. There are several reasons we send written notices.  The first is that while it’s easy to misinterpret what is said, and it can often turn into “he said/ she said,” a written notice clarifies what is being said and assures that there is a written record. The second is that it’s inappropriate and unsafe in this day and age for association employees, managers and/or board members to confront owners in person. The purpose of a violation is to get the problems corrected and maintain community standards while protecting the safety and quiet enjoyment of all unit owners.

The board and management know that rules can sometimes be complex, and it’s easy to make a mistake and violate the rule or misunderstand the governing documents. No one enjoys sending violation notices, and we all know that it’s upsetting to get a violation notice; but in truth correcting the problem and letting management know that you have taken action is all that is required to relegate it to history.

 

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Having a Building Condition Assessment performed

Having a Building Condition Assessment performed

  • Posted: Nov 14, 2018
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Having a Building Condition Assessment performed

As buildings age they become more inefficient, which can mean unnecessary, out of pocket expenditures every month. Having a Building Condition Assessment performed by a P.E. is especially important for aging facilities. It is imperative to the overall health and future of your building to conduct a “checkup” every 3-5 years. Contact us today for more information or to schedule an assessment.

Find us on the Members Directory:  https://sfpma.com/listing/the-falcon-group/

 

40/50 Year Recertification for Miami-Dade and Broward County, Florida

Is your building approaching 40 years of age? Are you aware that there may be county requirements that as a building owner you may need to comply with, known as the 40 Year Recertification?

Even if you have not yet received a “Notice of Required Inspection” by the code compliance section of your county or city, it is the property owner’s responsibility to acquire the initial 40/50-year (re)certification and to recertify their building every 10 years thereafter. Because of this, the inspections must be done by or under the supervision of a qualified, Professional Engineer (PE) or Registered Architect (RA).

Florida – Miami
15405 NW 7th Avenue
Miami, FL 33169
P: (305) 663-1970

 

 

Falcon is here to help

We provide both Structural and Electrical inspection expertise in-house with Professional Engineers, Registered Architects and Licensed Inspectors. Our professionals are able to perform site visits, prepare reports, and provide repair recommendations and specifications. Falcon can also assist with the bidding process for the repair work, along with the construction oversight to ensure all repairs are being done with all recommended requirements enforced. We provide a list of the necessary repairs in the report at no cost to you.

Our services are provided in these South Florida Cities:

  • Aventura
  • Boca Raton
  • Carol City
  • Coconut Creek
  • Coconut Grove
  • Cooper City
  • Coral Springs
  • Dania Beach
  • Davie
  • Deerfield Beach
  • Fort Lauderdale
  • Hallandale Beach
  • Hallandale
  • Hialeah
  • Hillsboro Beach
  • Hollywood
  • Homestead
  • Lauderhill
  • Miami Dade and Broward Counties
  • Miami
  • Miramar
  • North Lauderdale
  • North Miami Beach
  • North Miami
  • Oakland Park
  • Parkland
  • Pembroke Pines
  • Plantation
  • Pompano Beach
  • Sunrise
  • Tamarac
  • West Park
  • Weston

 

“The Falcon Group is one of the best for all of your Buildings. When you need architectural, Engineering Services and Structural including 40 Year Recertification. They should be the number one choice. In Florida, William Pyznar and the Team who are members of SFPMA are the type of company we stand behind for our Property Management Industry.” SFPMA

 

 

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DON’T LET TAXES COMPOUND THE PROBLEM OF A NATURAL DISASTER

DON’T LET TAXES COMPOUND THE PROBLEM OF A NATURAL DISASTER

  • Posted: Oct 10, 2018
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DON’T LET TAXES COMPOUND THE PROBLEM OF A NATURAL DISASTER

by Enrolled Agent Steven J. Weil, Ph.D., EA, LCAM, Royale Management Services, Inc.

In the unlikely event that you or someone you know becomes the victim of a natural disaster, and where you or where they live becomes a federally-declared disaster area, you will want to know all the ways to mitigate the results.  Not only can preparation help to protect life and property, it can also guard against staggering financial loss.

The key is to know what to expect.  If you live in a condo or HOA, you will want to know what the association’s master insurance policy covers and what it does not.  Insurance may help defray some of the costs associated with restoring and replacing damaged and destroyed property, but to keep monetary losses as low as possible, it helps to understand the relevant sections of the tax code.  Under the new Tax Cut and Jobs Act, for example, there is tax relief for victims who suffer casualty losses and are living in a federally-declared disaster area.

Claims require documentation.  You will surely want to make an inventory of the valuables in your home to help you document losses for insurance and tax purposes.  Take photos or videotape not only the interior of your home but also the property and structures outside it.  Damage to your vehicles, landscaping and other possessions may also be tax deductible.

If there’s a chance you might have to evacuate your home, take important documents with you or move them to a safer location, like a bank safe deposit box or a waterproof or fireproof container. Consider photographing important documents like birth certificates, car registration, driver’s license, proof of home ownership, insurance policies, important contracts, medical information, passport, tax documents, etc., and upload these electronic records to a secure cloud-based service.

Tax deductions for homes and buildings with structural damage require a qualified appraisal and records of the repairs to restore the building to its previous condition. Homeowners insurance will cover some personal goods in many cases, whether or not the home is covered for the type of disaster that occurred. Keep in mind that all claims for damage must first be submitted to the property owner’s insurance carrier, even if the property is not covered, in order to take a casualty loss deduction. In other words, your disaster loss may be tax deductible but only to the amount over any insurance reimbursement.

Two additional limitations may be waived in certain federally-declared disaster areas:  You must deduct $100 per event and reduce the total of all personal use property losses by 10 percent of your adjusted gross income.

Be aware that the IRS may extend tax filing deadlines, permit easier access to victims’ funds held in workplace retirement plans, and make other provisions designed to provide financial relief to those affected by a natural disaster.  The IRS website can help you learn about any special announcements, bulletins or special relief being offered during ongoing disasters.

Disaster-related losses can be deductible on your tax return, but only if you follow the rules and provide the appropriate documentation.  You also may be permitted to choose either the current year or the previous year to claim your losses, and your refund could be greater in the non-disaster year than in the current disaster year.

Help in determining the best course in your situation is always available from a qualified tax professional to help you make sure you are taking advantage of every relevant tax provision available to you.

 

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Now That You’re Elected to the Board, Are You Aware of the Reporting Statute?

Now That You’re Elected to the Board, Are You Aware of the Reporting Statute?

  • Posted: Aug 29, 2018
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Now That You’re Elected to the Board, Are You Aware of the Reporting Statute?

Congratulations! You’ve succeeded in being elected as a member to the prestigious world of your Homeowner’s Association Board of Directors! But are you aware of the certification requirements of Fla. Stat. 720.3033 that could suspend or even end your newly “elected official” career before it’s even begun? As a newly elected Homeowner’s Association Board Member you are required to comply with the reporting requirements imposed by the Florida Legislature through the enactment of Florida Statute 720.3033 as amended on July 01, 2013 and that requires all HOA directors to verify that they are prepared and qualified to serve their respective association board in one of two ways.

The first option via §720.3033(1)(a) is that within 90 days after being elected or appointed to the board, each director shall certify in writing to the secretary of the association that he or she has read the association’s declaration of covenants, articles of incorporation, bylaws, and current written rules and policies; that he or she will work to uphold such documents and policies to the best of his or her ability; and that he or she will faithfully discharge his or her fiduciary responsibility to the association’s members.

Board Member Courses can be found on our Calendar of Events

The second option via §720.3033(1)(a) is that within 90 days after being elected or appointed to the board, in lieu of such written certification, the newly elected or appointed director may submit a certificate of having satisfactorily completed the educational curriculum administered by a division-approved education provider within 1 year before or 90 days after the date of election or appointment. Furthermore, according to §720.3033(1)(b), the written certification or educational certificate is valid for the uninterrupted tenure of the director on the board. It would behoove the newly elected or appointed board member to pay heed to this requirement because a director who does not timely file the written certification or educational certificate shall be suspended from the board until he or she complies with the requirement and the board may temporarily fill the vacancy during the period of suspension. However, as a side note, it would be prudent and diligent for the newly elected director to be familiar with and understand both their own associations governing documents and the Florida Statutes applicable to homeowner’s associations.

After you have complied with the reporting requirements of §720.3033, the association shall retain each director’s written certification or educational certificate for inspection by the members for 5 years after the director’s election. However, the failure to have the written certification or educational certificate on file does not affect the validity of any board action as provided in §720.3033(1)(c). It bears noting at this juncture that if for any reason you are removed from or surrender your position as a director prior to the termination of your elected term that you will have to re-certify upon being re-elected or appointed back on the board of directors in the same manner as your initial election or appointment.

Read other Articles for HOA Board Members

 

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Recruiting Potential HOA Board Members

Recruiting Potential HOA Board Members

  • Posted: Jun 26, 2018
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Recruiting Potential HOA Board Members

Interview qualifications a candidate must be given are communication, education, willingness and other skills necessary for a new position on the Board

One of the best ways to enhance your community and make it the best that it can be is to volunteer as a member of the HOA board. Becoming a board member can take up a lot of valuable time, but it is well worth the investment of energy and passion. At times, filling positions on the board can be a challenge because homeowners have a lot of demands on their time, but having a stable and energetic board is one of the most crucial parts of a successful homeowners association. Here are a few tips for recruiting potential HOA board members.

Appeal to the Specific Talents of Your Homeowners

Sometimes homeowners may not be getting involved in their community because they believe they do not have the right strengths or talents for the job. However, an HOA board does not simply need people who are good at accounting (although this is a very important skill for HOA boards to possess), it needs people with all manner of skills. Find people in your community who are skilled at construction, design, information technology, or gardening and appeal to their specific skill-set to help get them involved

Direct Complaints into Participatory Roles

When a homeowner expresses discontent in the way the association is being run, far from being a bad thing, these complaints are actually opportunities for wonderful, passionate residents of the community to get involved. If you find that a particular homeowner is often politely complaining, try to see if you can encourage them to get involved so that they can have an active hand in improving the community.

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Pros and Cons of Living in an HOA Community

Pros and Cons of Living in an HOA Community

Pros and Cons of Living in an HOA Community

Pros:

  • The homeowners association pays for common areas like swimming pools, spas, tennis courts, parks, private roads, sidewalks and clubhouses you are able to enjoy a pool without having to maintain or clean it, or enjoy a playground or garden without the hassle of maintenance.
  • Some HOA’s also offer services like lawn maintenance to keep the neighborhood looking good all the time. You don’t have to hire someone yourself and your property always looks pristine.
  • Homes within HOA communities typically maintain their values better than non HOA deed restricted communities. By regulating the appearance of common areas your curb appeal and home price tend to be higher.
  • Often, HOAs promote a strong sense of community. Friends can gather at the clubhouse or common areas, people get to know their neighbors, and there are usually social functions planned year round.
  • Issues with neighbors like unwanted cars parked in front of your house are handled by the association, taking the pressure (and responsibility) off of residents.

 

Cons:

  • The price of your perfectly manicured lawns could be losing the freedom to choose your holiday decorations or the color of your house. There are rules and restrictions and the HOA documents can dictate what you can and cannot do in common areas.
  • A homeowner may encounter restrictions if they want to rent out their property. The association may require potential renters to be screened and approved by the HOA board, how much you charge for rent could also be regulated along with the duration of the rental. Some HOA’s ban rentals altogether.
  • The more amenities that are offered, the more the monthly dues can be. Sometimes the extra expense of monthly dues may more than some homeowners can afford.
  • Some HOAs are poorly managed by board members who don’t have enough time to devote to the community. Others too might be managed by a third party company (property manager) which can feel like giving up control of your neighborhood.

 

Before purchasing a property within an HOA or condo community it is very important that you find out how the association is run, how much the monthly association fees are, what the fees cover and how much money is in the reserve fund to cover any large expenses such as replacing a clubhouse roof. Always get a copy of the rules and regulations before you purchase so that you are completely aware of what you can and cannot do within the community. For example, if you purchase within a condo/townhouse community where there are zero lot lines, more than likely you won’t be able to touch the landscaping outside your home. If you are an avid gardener then this is definitely something you will want to consider before purchasing.

One thing that is a must is:  Education! Managers and Board Members can sign up via their Email Addresses we have Articles written by members that are sent weekly to our industry.

SFPMA and its members provide the industry with information, Events, Services, Forms, Legal for Condo and HOA’s, Our members are the Trusted Service Companies, Businesses and Management Professionals that help Condo & HOA’s all over Florida.

 

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House Bill 841 containing this year’s community association legislation.

House Bill 841 containing this year’s community association legislation.

KAYE BENDER REMBAUM’S 2018 LEGISLATIVE GUIDE – HOUSE BILL 841 AFFECTING COMMUNITY ASSOCIATION IS SIGNED INTO LAW

House Bill 841 containing this year’s community association legislation (“HB 841” or “Bill”) has made its way through the 2018 Florida legislative session and was signed into law by Governor Scott on March 23rd. As the Bill is now signed into law, it becomes effective on July 1, 2018. The following is a digest explanation of these newest laws to affect Florida’s community associations:

Condominium Official Record-keeping: Certain official records must be permanently maintained from the inception of the association, including the following:

(i) a copy of the plans, permits, warranties, and other items provided by the developer;
(ii) a copy of the recorded declaration of condominium and all amendments thereto
(iii) a copy of the recorded bylaws and all amendments thereto;
(iv) a certified copy of the articles of incorporation and all amendments thereto;
(v) a copy of the current rules; and
(vi) all meeting minutes.

All other official records of the association must be maintained within the state for at least seven years, unless otherwise provided by general law. Notwithstanding, all election records, including electronic election records, must only be maintained for one year from the election.

 

Kaye Bender Rembaum
9121 N Military Trail #200,
Palm Beach Gardens, FL 33410

 

 

Condominium Website: As a result of the 2017 legislative session, the website posting requirement applies to condominiums containing 150 or more non-timeshare units. The deadline to post digital copies of the governing documents, association contracts, budget, financial report, and other required documents on the association’s website is extended to January 1, 2019. Of the documents to be posted to the website, a list of bids received by the association within the past year for contracts entered into by the association and any monthly income and expense statement must also be posted. Notwithstanding this requirement, the failure to post these documents on the website does not, in and of itself, invalidate any action or decision of the association. Additionally, in complying with the posting requirement, there is no liability for disclosing information that is protected or restricted unless such disclosure was made with a knowing or intentional disregard of the protected or restricted nature of such information.

 

Condominium Financial Reporting: In the event an association fails to comply with an order by the Division of Florida Condominiums, Timeshares, and Mobile Homes to provide an owner with a copy of the financial report within a specified amount of days, then the association is prohibited from waiving the financial reporting requirement for the fiscal year in which the owner’s initial request for a copy was made and for the following fiscal year, too.

 

Condominium/Cooperative Board Meeting Notices: Notice of any board meeting in which regular or special assessments against unit owners are to be considered must specifically state that assessments will be considered and provide the estimated cost and description of the purposes for such assessments.

 

Condominium/Cooperative Meeting Notices: The association may adopt a rule for conspicuously posting meeting notices and agendas on the association’s website for at least the minimum period of time for which a notice of a meeting is also required to be physically posted on the condominium property. This rule must include a requirement that the association send an electronic notice in the same manner as a notice for a meeting of the members, including a hyperlink to the website where the notice is posted. (As yet, it is not patently clear whether this is in place of the existing “posting in a conspicuous place” requirement or in lieu of it. The safer course of action is to do both.)

 

Condominium Director Term: A director can serve a term longer than one year if permitted by the bylaws or articles of incorporation. However, a director cannot serve more than eight consecutive years, unless approved by two-thirds of all votes cast in the election or unless there are not enough eligible candidates to fill vacancies on the board. This part of the legislation replaces and fixes last year’s ridiculous new law that a director could not serve more than four consecutive two-year terms. (It appears that based on this year’s legislative changes, directors can serve any length of term so long as authorized by the articles or bylaws. At present, directors can only serve one or two year terms depending on the provisions of the articles and bylaws. Also, staggered terms remain permitted.)

 

Condominium/Cooperative Electronic Notice: A unit owner who consents to receiving notices by electronic transmission is solely responsible for removing or bypassing filters that block receipt of mass emails sent to members on behalf of the association in the course of giving electronic notices.

 

Condominium Director Recall: A recall is only effective if it is facially valid. (Of course, as what the term of art “facially valid” is intended to mean is left out of the legislation.) In any event, if the recall is determined to be facially invalid by the board, then the unit owner representative of the recall effort may file a petition challenging the board’s determination on facial validity. Similarly, a recalled board member may file a petition challenging the facial validity of the recall effort. If the arbitrator determines that the recall was invalid, the petitioning board member is immediately reinstated and the recall is null and void. In some instances, the arbitrator may award prevailing party attorney fees.

 

Condominium Material Alterations: In situations where the declaration as amended does not specify the procedure for approving material alterations or substantial additions to the common elements or association property, the already statutorily required approval of seventy-five percent of the total voting interests of the association must now be obtained before the material alterations or substantial additions to the common elements or association property are commenced. (Clearly then, if the declaration is silent as to the procedure for material alterations or substantial additions to common elements or association property, this new legislation implies that a curative vote of the members to approve the changes is a thing of the past. It does not make sense to force the association to restore the property to its prior condition where the members might vote to approve the change. Hopefully, this will be fixed in next year’s legislative proposals.)

 

Condominium Electric Vehicles: A declaration of condominium or restrictive covenant may not prohibit or be enforced so as to prohibit any unit owner from installing an electric vehicle charging station within the boundaries of the unit owner’s limited common element parking area. Moreover, the board may not prohibit a unit owner from installing an electric vehicle charging station for an electric vehicle within the boundaries of his or her limited common element parking area. The unit owner is entirely responsible for the charging station, including its installation, maintenance, utilities charges (which must be separately metered), insurance, and removal if no longer needed. The association may impose certain requirements upon the installation and operation of the charging station, including, for example, that the unit owner comply with all safety requirements and building codes, that the unit owner comply with reasonable architectural standards adopted by the association governing charging stations, and that the unit owner use the services of a licensed and registered electrical contractor or engineer knowledgeable in charging stations. Labor performed on or materials furnished for the installation of a charging station may not be the basis for filing a construction lien against the association, but such a lien may be filed against the unit owner.

 

Condominium Director Conflicts of Interest: The process allowing a director to enter into a contract with the director’s association has become better organized. Disclosure requirements that were set out in section 718.3026(3), Florida Statutes were deleted from that location and relocated to section 718.3027, Florida Statutes. In brief, directors and officers of non-timeshare condominiums must disclose to the board any activity that could be reasonably considered a conflict of interest. A rebuttable presumption of such a conflict exists if:

i) directors or officers of the association (including their relatives) enter into a contract for goods or services with the association;

ii) directors or officers of the association (including their relatives) holds an interest in a corporation. Limited liability corporation, partnership or other business entity that conducts business with the association.

In the event of such a conflict, then the proposed activity and all relevant contracts must be attached to the meeting agenda and the requirements of section 617.0832, Florida Statutes must be adhered to, as well. The relevant provisions of section 617.0832, Florida Statutes follow:

“No contract or other transaction between a corporation and one or more of its directors or any other corporation, firm, association, or entity in which one or more of its directors are directors or officers or are financially interested shall be either void or voidable because of such relationship or interest, because such director or directors are present at the meeting of the board of directors or a committee thereof which authorizes, approves, or ratifies such contract or transaction, or because his or her or their votes are counted for such purpose, if:

a) The fact of such relationship or interest is disclosed or known to the board of directors or committee which authorizes, approves, or ratifies the contract or transaction by a vote or consent sufficient for the purpose without counting the votes or consents of such interested directors;

b) The fact of such relationship or interest is disclosed or known to the members entitled to vote on such contract or transaction, if any, and they authorize, approve, or ratify it by vote or written consent; or

c) The contract or transaction is fair and reasonable as to the corporation at the time it is authorized by the board, a committee, or the members.”

In addition, section 718.3027, Florida Statutes, provides that the disclosures required by this section must be set out in the meeting minutes, and the contract must be approved by two-thirds of all of the directors present (excluding the conflicted director). At the next membership meeting, the existence of the contract must be disclosed to the members and then may be canceled by a majority vote of the members present. If the contract is canceled, the association is only liable for the reasonable value of the goods and services provided up to the time of cancellation and is not liable for any termination fee, liquidated damages, or other form of penalty for such cancellation. Finally, in the event of a failure to disclose a conflict or potential conflict, the contract is voidable and terminates upon the filing of a written notice terminating the contract which contains at least 20 percent of the voting interests of the association. (Note that section 718.112(2)(p) Florida Statutes, pertaining to service provider contracts still provides that “an association, which is not a timeshare condominium association, may not employ or contract with any service provider that is owned or operated by a board member or with any person who has a financial relationship with a board member or officer, or a relative within the third degree of consanguinity by blood or marriage of a board member or officer. This paragraph does not apply to a service provider in which a board member or officer, or a relative within the third degree of consanguinity by blood or marriage of a board member or officer, owns less than 1 percent of the equity shares.”)

 

Condominium/Cooperative Grievance Committee: The grievance committee appointed by the board to conduct hearings for fines and use right suspensions for violations of the governing documents must be comprised of at least three members who are not officers, directors, or employees of the association, or the spouse, parent, child, brother, or sister of an officer, director, or employee. (The restriction against not allowing someone living with the director from serving on the committee was removed.) The fine or suspension can only be imposed if approved by a majority of the committee. If a fine is approved, the fine payment is due five days after the date of the committee meeting at which the fine is approved. (This seems illogical in that the offending member may not have received the required written notice of the confirmation of the fine from the association.) The association must provide written notice of the approved fine or suspension by mail or hand delivery.

 

Cooperative Official Records: The official records must be made available to a unit owner within ten working days after receipt of written request by the board or its designee.

 

Cooperative Director/Officer Eligibility: In a residential cooperative association of more than ten units, co-owners of a unit may not serve as members of the board at the same time unless the co-owners own more than one unit or unless there are not enough eligible candidates to fill the vacancies on the board at the time of the vacancy.

 

Cooperative Director/Officer Financial Delinquency: A director or officer more than 90 days delinquent in the payment of any monetary obligation due to the association shall be deemed to have abandoned the office, creating a vacancy in the office to be filled according to law.

 

Cooperative Bulk Communication Contracts: Cooperatives are now lawfully permitted to enter into bulk communication contracts which can include internet services and such expenses are deemed common expenses of the cooperative.

 

HOA/Cooperative Board Email Use: Members of the board may use email as a means of communication but may not cast a vote on an association matter via email.

 

HOA Fines: If a fine levied by the board is approved by the grievance committee, the fine payment is due five days after the date of the committee meeting at which the fine is approved. (This seems illogical in that the offending member may not have received the required notice of the confirmation of the fine from the association.)

 

HOA Amendments: A proposal to amend the governing documents must contain the full text of the provision to be amended with new language underlined and deleted language stricken. However, if the proposed change is so extensive that underlining and striking through language would hinder, rather than assist, the understanding of the proposed amendment, the following notation must be inserted immediately preceding the proposed amendment: “Substantial rewording. See governing documents for current text.” An immaterial error or omission in the amendment process does not invalidate an otherwise properly adopted amendment. (In other words, HOA proposed amendments must be presented in the same manner as proposed condominium amendments have been required to do for years and years.)

 

HOA Election by Acclamation: If an election is not required because there are either an equal number or fewer qualified candidates than vacancies exist, and if nominations from the floor are not required and write-in nominations are not permitted, then such qualified candidates shall commence service on the board of directors, regardless of whether a quorum is attained at the annual meeting. (This is a major change!)

 

HOA Application of Payments: The application of assessment payments received by the association is applicable regardless of any purported accord and satisfaction or any restrictive endorsement, designation, or instruction placed on or accompanying a payment

http://rembaumsassociationroundup.com/2018/03/26/kaye-bender-rembaums-2018-legislative-guide-house-bill-841-affecting-community-association-is-signed-into-law/

 

 

 

 

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