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Find Blog Articles for Florida’s Condo, HOA and the Management Industry.
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Learn why it’s important for condo and community associations to have “good governing documents” and how that is the starting point for effective enforcement. Some of the topics covered will include:
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SPEAKERS:
Joseph Adams
SHAREHOLDER
Becker
jadams@beckerlawyers.com
Kevin L. Edwards
SHAREHOLDER
Becker
kedwards@beckerlawyers.com
Tags: Management News
Like our climate, there is no denying that South Florida’s real estate market has been scorching hot. But while South Florida is well known for its real estate booms and busts, the current cycle is also running right into the latest technological wave – cryptocurrency.
Home prices have climbed to record numbers. Those prices have been driven by a lack of supply but also by COVID related work and travel restrictions, which make year-round warm weather climates like South Florida very attractive.
At the same time, and while more people are staying at home to work, we have also seen a surge in cryptocurrency demand. At the time this is posted, Bitcoin is trading at prices greater than $65,000 and analysts are predicting that its price will rise higher by year’s end and beyond.
Miami is currently undergoing a tech boom of its own. This tech boom coincides with the ongoing and growing demand for cryptocurrency coupled with its unique geographic location. Miami has hosted, and will continue to host, numerous high profile cryptocurrency events. And with those high-profile events we will see more demand for our real estate.
All this to say, it is only a matter of time before using cryptocurrency to purchase real estate becomes routine. We are not there yet but that day is coming.
Opening potential real estate transactions to crypto holders broadens the pool of buyers that sellers can sell to. But doing so is not without risk.
Crypto is unregulated and prone to fraud. Crypto transactions may violate certain laws and regulations intending to govern “traditional” transactions. For instance, the anonymity associated with cryptocurrency may prove challenging when trying to trace the source of the funds which is often a requirement for a “traditional” real estate transaction. Additionally, given the volatile nature of the crypto price fluctuations it may be difficult to peg the actual sales price of the real estate until the “very last minute.” And then there are numerous tax implications associated with any crypto transaction that may further complicate a real estate transaction.
While there are numerous challenges in rendering a crypto transaction common place today, with the advent of Web 3.0, and the continued growth of cryptocurrency, it is only a matter of time before real estate transactions are routinely funded in this way.
And Miami, with its booming tech movement and thriving real estate market, will be at the forefront of this coming trend.
Feel free to contact me should you wish to discuss Miami’s ongoing tech movement, crypto, or real estate in general.
by Becker
Florida’s Sunshine in the Government Act, (“Sunshine Laws”) requires transparency and disclosure in government and business. Although the Sunshine Laws do not apply to condominium associations, the Florida Condominium Act (“Act”) found in Chapter 718, Florida Statutes, contains its own set of “sunshine” requirements for these communities, with transparency being the key to compliance. Issues generally arise in condominiums when there is or appears to be a lack of transparency between the board of directors and the association members.
First, boards need to determine which gatherings must be open to association members. While boards may desire to avoid certain topics in open meetings, the Act requires board meetings to be open to members; in fact members have a statutory right to attend such meetings. A “meeting” of the board occurs when a quorum of the board members is present. There are two statutory exceptions to the requirement that board meetings must be open to the members: 1) meetings with the association’s attorney to discuss proposed or pending litigation, if the meeting is held for the purpose of seeking or rendering legal advice, and 2) when “personnel matters” are under discussion. Personnel matters should be limited to discussions of specific issues pertaining to association employees. So, can individual board members meet or call one another to discuss association business as long as the meeting or phone call comprises less than a quorum of the board? Yes. However, remote meetings of a quorum of the board still constitute meetings that must be open to members. Notwithstanding the foregoing, the Act provides that members of the board of administration may use e-mail as a means of communication but may not cast a vote on an association matter via e-mail.
The second important “sunshine” law is the noticing of meetings. The requirement that meetings be open to members is of little benefit if owners do not know when or where the meetings are taking place. Under the Act, notice of all board meetings must be posted conspicuously on the condominium property for at least 48 hours before the meeting. However, certain meetings, such as meetings where non-emergency special assessments or amendments to rules regarding unit use are considered, require notices to be mailed, delivered, or electronically transmitted to the unit owners AND posted conspicuously on the condominium property not less than 14 days prior to the meeting. The notices also need to clearly identify the agenda items that will be discussed at the meeting.
The Act also provides owners certain rights at board meetings. Owners have a right to speak at all open board meetings on all designated agenda items. The right to speak does not mean that every unit owner is entitled to endlessly debate motions, but it does mean that the owners are entitled to be heard regarding matters the board intends to consider at the meeting. The association may adopt written reasonable rules governing the frequency, duration and manner of unit owner statements. Owners may also record or videotape such meetings.
What about committees? The sunshine laws also apply to committees that are empowered to take final action on behalf of the board, or committees that make recommendations to the board regarding the association budget. Under the Act, all committees are subject to sunshine requirements unless the association bylaws specifically exempt committees from the sunshine laws.
If you have questions about these laws and how to handle meetings in your community, contact your community association attorney.
Nuisance or invasive plants are one of the biggest issues lake and pond owners or managers face. When introduced into a non-native environment, invasive aquatic weeds can take over an ecosystem and even out-compete native beneficial plants. There are various types of invasive aquatic weeds and it’s important to know which species is terrorizing your waterbody so the best management approach can be determined.
Watch our free webinar recording to discover the top solutions and technologies for managing aquatic weeds. From drone technology and highly targeted herbicides to hydro-raking and mechanical harvesting, our aquatic weed experts discussed how to control and prevent the future growth of nuisance and invasive plants with these solutions. Watch to hear what our experts had to say during the Q&A.
Watch the recording today!
So many of our buildings are approaching the 40 year mark, requiring recertification in electrical and structural. Many buildings are younger yet still need major repairs to the concrete, balconies, pool decks and other portions of the common elements. The board is going to need a lot of money. Assuming you don’t have enough in reserves, how do you get it?
Of course, one way is to simply pass a special assessment. In effect, that means that you will have all the money necessary to pay for all the repairs, before the repairs are done. The problem with a special assessment…………. Everyone has to come up with a lot of money relatively quickly, if not immediately. Some people simply don’t have it. If they don’t they face possible foreclosure by the association.
What is certainly becoming the more common way of coming up with money to make repairs to the common elements is for the association to borrow the money from a bank. Rates are still very low and money is very cheap right now. Typically, the bank gives the association a line of credit for one year that the association may draw upon to pay for the cost of repairs. After one year, the funds borrowed from the line of credit are converted to a term loan, usually anywhere from three to seven years.
There are of course many advantages to borrowing rather than assessing. First and foremost, the owners need not come up with their entire share of the special assessment immediately. Instead, they get to pay off the bank loan over several years. In addition, the board can establish payment schedules that would allow the owners to have a choice of paying their share of the loan off immediately and without interest. Or, the board can allow the owners to pay off their share of the loan over time, with interest.
Before signing for the loan, the bank will always ask association’s counsel to review the governing documents and write an “opinion of counsel” as to whether or not the association has the right to borrow money. Under the Florida not for profit statutes, the association has the right to borrow. However, the governing documents should be read carefully because sometimes it clearly states that the association cannot borrow money without a vote of the community.
In terms of collateral, the association is not signing a mortgage encumbering the common elements. Remember, the common elements are owned by the owners and not the association. Instead, the association will be signing a Collateral Assignment of Lien Rights which authorizes the bank to demand the monthly assessments directly from each unit owner, should the association default in its payment obligations to the bank.
If you have any additional questions about how the process works, give us a call. By Eric Glazer, Esq http://condocrazeandhoas.com/
Tags: Assessments, Budgets, Management News
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Tags: Management News, Security and Safety Articles
Our team consists of certified electricians who know the ins and outs of superior service and unbeatable customer care. We also specialize on renewable and energy-efficient product and services that facilitates the switch from outdated, inefficient lighting to state-of-the-art LED technology. We offer lighting design, inspections, installation, & maintenance.
Tags: Electrical Articles, Management News
by SOLitude Lake Management
Lakes and ponds are multifaceted ecosystems with a wide array of uses, benefits, and challenges. If you oversee waterbodies for a community association, golf course, municipality, or any other entity, you know that many factors must be examined when making decisions about the property. As the number of stakeholders increases, so does the number of opinions.
Lake management professionals often encounter these situations. To help decision-makers choose lake management solutions and maintenance strategies that satisfy as many stakeholders as possible, it’s advantageous to start by considering four overarching factors:
A decorative pond is very distinct from an aquatic preserve, and both of these are vastly different from a productive trophy fishery or a large drinking water reservoir. Likewise, each of these waterbodies may serve multiple purposes. A community pond, for example, is aesthetically pleasing, but may also contain important equipment for stormwater collection. A reservoir sustains our communities and also likely functions as an exciting spot for boating and recreation. Making simple choices about the removal of aquatic plant species or adjusting water chemistry can require overwhelming input with dozens of goals in mind.
How do you meet in the middle? This is where it’s important to confer with a lake manager who specializes in the “human dimension” of goal setting. It’s unlikely that polar opposite goals can be achieved, but by collecting diverse input, thoroughly evaluating goals, and educating stakeholders about the various paths to achieve them, it is possible to find areas of unforeseen compromise and greater potential for success.
All lakes and ponds are different, whether they are located in separate states or right next to one another. Like a snowflake, a multitude of details come together to create a one-of-a-kind entity. These include the waterbody’s location, size, depth, age, the presence of invasive species, land use, and the level of surrounding pollution – and can go far beyond that.
Before moving forward with any kind of lake or pond maintenance strategy, it’s vital to collect data that reveals both the visible and unseen characteristics of the water resource. Laboratory testing, bathymetric mapping, surveillance, and other data gathering techniques can be used to inform the creation of a customized management program that maps out the path to success. Some goals may be simple to achieve while others require a more rigorous approach, but this can only be determined when accurate data is available.
Just as physical factors can influence a waterbody, so can elements like weather, temperature, rainfall, and even the season. These conditions can have dramatic, almost immediate effects on a waterbody by altering water chemistry, expediting erosion, causing fish kills, and more. The time of year may also exacerbate existing problems or create new ones without warning.
No matter your goal, timing will be a large factor in the planning and implementation process. For instance, lakes and ponds that require muck removal will often wait until the cooler months to complete hydro-raking or dredging projects in order to minimize down-time. And, nuisance algae and toxic cyanobacteria can be more effectively thwarted with proactive nutrient remediation projects before summer weather is in full swing. By understanding the importance of well-timed management projects, you can better budget for them.
Budget is often a limiting factor for stakeholders and it can be even more difficult to get all decision-makers on board with the prioritization of lake and pond management. It’s beneficial to create a comprehensive road map built on the aquatic characteristics, the timing of necessary services, and the long-term goals and expectations for the waterbody. With a clear, well-informed plan on hand, the benefits and upfront costs can be more accurately evaluated and conveyed.
On paper, smaller upfront maintenance costs seem more appealing, but they can also be extremely misleading. Though safe and effective, EPA-registered pesticides do not make algae or weeds disappear forever; they simply mask a problem that will continue to exist without intervention. Stakeholders looking to maximize their budget while maintaining their long-term goals will find the most success in an annual management program. By proactively investing in the future of your waterbody, you can spend and worry less over time.
A few weeks ago, I wrote a blog called It’s Time To Stop A True Florida Farce. The blog spoke about the fact that members of community association boards of directors can still get certified without taking an educational class. Instead, they can sign a rather silly piece of paper that states they have read their governing documents and promise to enforce them. What a joke.
I sent the column by e-mail to all Florida legislators, urging them to change the law and make certification through education mandatory. Senator Anna Maria Rodriguez asked me to send her my proposed legislation. I did. I am happy and so proud to report that Senator Rodriguez filed Senate Bill 394 mirroring my proposed legislation.
There is no doubt that mandatory education will save the lives, properties and money of the millions of people who live in condominiums throughout the state. Florida would be the first and only state to require a board member to take an educational course. That would be an amazing bright spot for our state and no doubt would lead other states to eventually adopt similar requirements.
I had the pleasure of teaching my Condo Craze and HOAs Board Certification class last week in Miami and Palm Beach to so many people. I taught the importance of having reserve accounts, having reserve studies done by qualified people and the danger in completely waiving the funding of reserve accounts year after year after year. Interestingly enough, when I asked the crowd if the law should be changed to requiring at least some form of reserves and having the reserve study done by experts, EVERYONE RAISED THEIR HAND. People want to be safe. We learned a lot after the Champlain Towers disaster.
Think about this. The Florida Legislature will no doubt make some massive changes to Florida law in this regard. But if members of the Board are not required to attend an educational class, how in the world can they be expected to learn the new laws. And by the way….I don’t want to hear the excused that these classes are burdensome. They are offered on-line and they are offered for free. Anyone who won’t devote a few hours a year to learning the new condo laws does not deserve to be on the board in the first place.
In any event, we owe a debt of gratitude to Senator Rodriguez for her efforts in taking this matter seriously. Keep track of Senate Bill 394 and urge your local House Member and Senator to please support it. If I never get another piece of legislation passed, this is the one that is nearest and dearest to my heart. Education is the key to running a safe community.
Over a decade ago The Florida Legislature thought it was a good idea for members of condo and HOA boards to become “certified.” Sounds like a good idea. The problem is that the legislators allowed for two ways to become certified. One way is by going over to your computer and printing a form that is on the DBPR’s website that basically says I read my governing documents and promise to enforce them. You sign the form and you are now certified. That’s it. That’s all you have to do. If you are a director of a condo, the form does not require you to acknowledge the existence of Florida Statute 718. If you are a member of an HOA board the form does not require you to acknowledge the existence of Florida Statute 720. The form is a joke. The procedure is a joke and an embarrassment to The State of Florida. In fact, many associations still have illegal provisions in their governing documents. The current law actually allows you to become certified if you promise to enforce the illegal provisions in your governing documents.
As my kids go back to school today, I’m proud to say that the second way of becoming certified is by taking a course approved by the DBPR. As so many of you now, I am most proud of the fact that I have certified over 20,000 board members throughout the state. Better yet, the attendees love it. They learn about the requirement to fund reserves, Kaufman language, access to records, mandatory financial reporting, the role of the community association manager, legal ways for the board members to vote and hold meetings, preparation of budgets, the importance and hierarchy of your governing documents, rule making, actions of board members that constitute criminal conduct, ways directors can be removed from the board, the Marketable Record Title Act and the importance of preserving your governing documents in an HOA, obligations to maintain insurance, mandatory websites, material alterations, screening, approval and denial of occupants AND SO MUCH MORE.
It is an insult to every director who has been certified by taking a course to allow other directors the ability to get certified by signing a stupid self-serving form. We are now repeatedly learning the hard way throughout our state that lack of knowledge can lead to catastrophic consequences in our communities.
MANDATORY EDUCATION FOR BOARD MEMBERS CAN SAVE LIVES. Florida has always led the way when it came to making community association laws that the rest of the country follows. The State of Florida has the opportunity to become the first state in the country to require that directors become educated before assuming the incredible responsibilities that come with being in charge of our communities. There is no excuse any longer for a Board member not to take an educational class. Many law firms, like mine, teach the class on-line. A board member never even has to leave his or her home in order to become certified.
I urge the members of The Florida Legislature to amend the condominium, co-op and HOA statutes to remove the ability to become “certified” by signing a form and instead require attendance at an educational course. I already drafted the proposed legislation and it’s ready to be filed. With all my heart, I believe lives can be saved, financial disasters can be avoided and it is in the best interest of the millions of Floridians who live in a community association. Readers: please contact your legislators if you agree.
Tags: Condo and HOA, Legal and Lobbing, Management News
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