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Find Blog Articles for Florida’s Condo, HOA and the Management Industry. 

HOA Parking Lot Flooded? Now is the time to give Allstate Resource Management a call!

HOA Parking Lot Flooded? Now is the time to give Allstate Resource Management a call!

Our schedule is filling up fast for storm drain cleanings, the rain that occurred this weekend was a preview of what most summers will look like for your HOA community.

Contact us to talk to a Stormwater Specialist today!

Contact us at 954-382-9766 or info@allstatemanagement.com

“Why does our HOA need a lake management company?”
Sometimes, aquatic management is viewed as a frivolous or unnecessary expense for a community. “My lake looks fine, why should I pay to have someone take care of it?”
Most people that live on lakes also see them differently than someone who maintains them. The difference is homeowners tend to look “at” the water, where as waterway managers look “in” the water. Too often people put off lake maintenance until they see a problem and weed populations have already become established.
As a property owner or property manager, it’s valuable to have a company that will respond to these unexpected outbreaks. Every lake matures differently, and it takes a combination of experience and expertise to maintain a healthy balance as changes occur.
Allstate Resource Management’s staff is always there to answer your questions and works to ensure excellent results in any lake management situation.

 

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A Differing Tale of Two Terminating Condominiums by Rembaum’s Association Roundup

A Differing Tale of Two Terminating Condominiums by Rembaum’s Association Roundup

A Differing Tale of Two Terminating Condominiums

Have an association related question?

Find your answer at RembaumsAssociationRoundup

An extremely similar fact pattern leads to diametrically opposed results between Florida’s Fourth District Court of Appeal and Florida’s Third District Court of Appeal.

In the case before the Fourth District Court of Appeal, Fellman v. Mission Viejo Condominium Association, Inc., Case No. 4D22-1260, (Fla. 4th DCA April 6, 2023), 175 of the 176 condominium units were acquired over time by a bulk owner, and the bulk owner sought termination of the condominium. However, Fellman as the single holdout objected to the plan of termination. At trial, the trial court entered a summary judgment in favor of terminating the condominium, which Fellman then appealed to the Fourth District Court of Appeal.

The Mission Viejo Declaration of Condominium was recorded in 1980 and required 100 percent consent of all unit owners as necessary to terminate the condominium form of ownership. Forty-one years later, on February 5, 2021, the bulk owner amended the required vote to terminate the condominium from 100 percent to 80 percent, using the general amendatory provision set out in the Declaration of Condominium, which required only 80 percent consent of the voting interests. Therefore, notwithstanding the original 100 percent requirement necessary to terminate the condominium, only 80 percent of the owners had to vote in favor of lowering the consent needed from 100 percent to 80 percent, which resulted in fully divesting Fellman of the right to object to the termination of the condominium.

Obviously, Fellman did not vote in favor of the amendment. Fellman argued that by allowing 80 percent of the unit owners to amend the otherwise required 100 percent consent of all owners to terminate the condominium, it fully eviscerated his right to object to the termination of the condominium and his voting rights—a right bestowed upon him when he purchased the unit. There are few things more sacrosanct than an owner’s right to vote. Nevertheless, neither the trial court nor the Fourth District Court of Appeal agreed.

While Fellman should have been able to rely on the 100 percent termination approval requirement as originally required in the declaration of condominium, the trial court believed that if the 100 percent requirement was to be protected from being amended with a lower percentage of voting interests, then the provision in the declaration of condominium should have clarified that it could only be amended by nothing less than 100 percent approval of the unit owners. Since it did not, the trial court found no issue with the bulk buyer eviscerating the 100 percent vote needed to terminate the condominium with 80 percent of the voting interests casting their vote in favor of the amendment.

Fast forward eleven months to March 13, 2024, when Florida’s Third District Court of Appeal, in Avila v. Biscayne 21 Condominium, Inc., Case No. 3D23-1616 (Fla. 3d DCA Mar. 13, 2024), noted that the provision in the Biscayne 21 Declaration of Condominium (requiring 100 percent of the voting interests to vote in favor of the termination could NOT be amended using the lower vote threshold needed to amend the declaration of condominium) was likely to prevail. As you will note, this decision diametrically opposes the outcome in the Fellman case. In this case, Avila sought a temporary injunction to stop the plan of termination. The trial court denied it. Avila appealed, and the Third District Court of Appeal agreed with Avila that Avila’s claim stood a substantial likelihood of success on the merits. The declaration of condominium at issue in the Avila case had an additional provision that required “100 percent approval for amendments that alter the voting power of unit owners.” However, it should be axiomatic that to obliterate an owner’s right to vote by terminating the condominium where the declaration had required 100 percent of the owners to vote in favor of termination could not be amended by a termination provision of anything less than 100 percent of the owners.

The Third District Court of Appeal commented that the change to the termination vote threshold materially altered the unit owners’ voting rights. By requiring a unanimous vote for termination, the declaration of condominium originally gave every unit owner an effective “veto” over any termination plan, which would be lost if the amendment adopted by using the general amendatory powers set out in the declaration of condominium were to stand. The Court even cited the Tropicana Condominium Association, Inc. v. Tropical Condominium , LLC, 208 So. 3d 755 (Fla. 3d DCA 2016), finding that nonunanimous amendments to a declaration reducing the vote threshold for termination of condominium could not be applied where the declaration expressly required the unanimous vote to amend the termination provision, and the amendment, if retroactively applied, would eviscerate the unit owners’ contractually bestowed veto rights.

In fact, Fellman also argued the Tropicana case to the trial court, which rejected the argument; and to add insult to injury, such decision was affirmed by the Fourth District Court of Appeal. So, in the world of inconsistent decisions, Fellman was denied by the Fourth District Court of Appeal the right to veto the plan of termination and is in process of potentially losing his unit, while the Avila court found his right to veto the plan of termination seemingly protected by the Third District Court of Appeal as evidenced by issuance of the temporary injunction in his favor. Unfortunately, even once the Avila case reaches a final judgment, and if in Avila’s case that decision is appealed and upheld by the Florida Supreme Court, Fellman still loses his right to veto the plan of termination as initially bestowed upon him and, even more unfortunately, will lose ownership of the unit.

Sign up for the upcoming courses.

November Board Member Certification Courses

  1. Condominium Nov. 13 – Click Here
  2. HOA Nov. 19 Daytime – Click Here
  3. HOA Nov. 21 Evening – Click Here

If you plan to enroll in any of the free courses above, please note the following:

All Board Members who attend must conduct their own webinar registration and, on the day of the webinar, log in/join in on their own, with their own unique link (or phone in information) provided by Zoom. This must take place even if you watch with other people. This assures you will appear on the attendance sheet, providing proof of attendance.

 

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Join us on Tuesday, November 12th at 12:00 PM for our Community Roundtable: Technology and Community Governance!

Join us on Tuesday, November 12th at 12:00 PM for our Community Roundtable: Technology and Community Governance!

Join us on Tuesday, November 12th at 12:00 PM for our Community Roundtable: Technology and Community Governance!

During this discussion, our panel of professionals consisting of Kerstin Henze, Esq. (KBR Legal), Frank Valdes (GetQuorum), and Dianne Skinner (Artemis Lifestyle Services) will cover various topics, including:

  • The importance of updating governing documents
  • Association Record and new Florida Statute requirements
  • How communities can leverage technology, like virtual meetings and electronic voting, for more efficient governance and more!

Enroll for the November 12th Discussion.

 

Join us on Tuesday, November 12th at 12:00 PM for our Community Roundtable: Technology and Community Governance!

During this discussion, our panel of experts consisting of Kerstin Henze (KBR Legal), Frank Valdes (GetQuorum), and Dianne Skinner (Artemis Lifestyle Services) will cover various topics, including:

  • The importance of updating governing documents

  • Association Record and new Florida Statute requirements

  • How communities can leverage technology, like virtual meetings and electronic voting, for more efficient governance and more!

Don’t miss out; register today!

 

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S2E38 – A Tribute, Tough Truths, and Condo Realities (Aired 11/3/24)

S2E38 – A Tribute, Tough Truths, and Condo Realities (Aired 11/3/24)

578 views Streamed live on Nov 3, 2024

This week’s show is dedicated to Eric’s late mother-in-law, Linda, honoring her courageous five-year battle with cancer. We also dive into essential updates on Florida’s mandatory condo laws, and discuss the challenges of selling units amidst an oversupply. Plus, we spotlight PD Concrete’s impressive work and touch on the critical importance of voting in the upcoming election.

As always, we’ll be taking your calls on whatever topic you need answers to or whatever you need to get off your chest.

Call in with your questions & comments or ask them in the live YouTube chat! (717) 452-9378

 

Keep up to date with new topics for Condo and HOA Communities each week on Condo Craze & HOAs every Thursday on YouTube 

The next show:

Condo and HOA Elections: Are You Making These Costly Mistakes?

This Sunday on Condo Craze and HOAs, Eric and Karen dive into a critical topic for every Florida association: election season! With the national elections behind us, it’s time to focus on your community’s elections and ensure the process runs smoothly. We’ll cover the essential steps, from sending out the first notice 60 days in advance to handling candidate information sheets and voting certificates. Eric will highlight common mistakes—like incorrect deadlines, missing documents, and improper ballots—that could force costly do-overs.

As always, we’ll take your calls on any topic you need answers to, or anything you need to get off your chest live in the chat or call in at 717-GLAZER8. Don’t miss it.

 

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DOS AND DON’TS OF ELECTION CHALLENGES by Rembaum’s Association Roundup

DOS AND DON’TS OF ELECTION CHALLENGES by Rembaum’s Association Roundup

  • Posted: Nov 04, 2024
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DOS AND DON’TS OF ELECTION CHALLENGES

Rembaum’s Association Roundup

Pursuant to their relevant statutory provisions, election disputes that take place in condominium, homeowners’, and cooperative associations are subject to mandatory nonbinding arbitration before the Division of Florida Condominiums, Timeshares, and Mobile Homes (the “Division,” for short). It is referred to as “nonbinding” because the arbitrator’s order is not final until 30 days after its issuance, which provides time for either party in the dispute to challenge the decision to their local circuit court, which hears the case de novo (anew).

As you will read, not every election dispute will be heard by the Division. As a threshold matter of importance, the Division will not hear election disputes within 60 days prior to an election or 60 days after the election has taken place. In order to bring an election challenge, Florida Statutes require prior written notice to the other party of the dispute, where a reasonable opportunity to correct the alleged error is provided, and it is clearly expressed that if the alleged error is not cured, an arbitration action will take place. In a prior arbitration case, it was held that providing only 10 days to cure the alleged defect in a pre-arbitration notice was insufficient. Therefore, it is suggested to provide more than 10 days opportunity to cure the alleged election defect prior to filing an action for arbitration.

Interestingly, the general rule is that to have standing to challenge election results, arbitration action must be brought by a candidate or an individual who was prevented from being a candidate.  The Division has even held that a member who was not a candidate did not have standing to challenge the election results that other persons should have been declared the winning candidates. While these arbitration decisions are not binding precedent, they are instructive and, if nothing else, useful in evaluating the best course of action.

In the context of condominium election challenges, there are three flaws that are typically “fatal” to the association, if committed. They are i) a substantive or serious defect in the first notice of election, ii) the failure to include a timely submitted candidate information sheet in the second notice of election, and iii) failure to include the name of each eligible candidate on the election ballot. While each of these can potentially be timely cured in advance of the election, if not, then they likely lead to a successful election challenge.

For example, failing to mail the notice of election to one or more owners or the failure of the first or second notice of election to accurately state the street address of the meeting have been considered as “fatal” flaws. Also, the failure to include a timely submitted candidate information sheet or failure to include the name of a candidate on the ballot have also been considered as  “fatal” flaws. However, so long as the election is re-noticed from the second notice of election, including all of the candidate and information sheets and/or also including the name of all of the candidates on the ballot, then such fatal flaws can be cured in advance of the election. In these instances there would be no further solicitation of candidates, but rather a rescheduling of the night of the election itself by sending a revised and corrected second notice of election at least 14 days prior to the election which would cure that defect. This amended second notice should clearly state the reason(s) for having to send the corrected notice.

It is important to note that while condominium association elections are strictly construed in accordance with relevant Florida Statutes, homeowners’ association elections occur in accordance with their governing documents. Therefore, whether the above fatal flaws have applicability to a homeowners’ association fully depends upon the style of election set out within the governing documents.

Arbitrators with the Division have held that a new election will have to be scheduled if  in the governing documents there is included a requirement that candidates be full-time residents of the state of Florida or even reside in their unit full time and such requirements were enforced during the election. Therefore, there cannot be a residency requirement of any kind for board members. Similarly, arbitrators have held that associations cannot require candidates to complete a criminal background check or even execute an acknowledgment that they are not a felon.

Contrary to popular belief, the relevant Florida Statutes do not require candidates to be members of a community association in order to run for the board of directors (often, “membership” is defined in the governing documents as being an owner of a parcel within the community). However, such requirements can be set out in the governing documents; but if such a requirement is not in the governing documents, then the board cannot disqualify a potential candidate because he or she is not an owner or member. This means that without such requirements specifically set forth in the governing documents of the association, any non-member, including tenants and occupants, are qualified to run for the board of directors. Therefore, if you desire to avoid such a circumstance, you should consult with legal counsel for your association regarding whether such requirements exist in the governing documents; if not, then you should consider preparing an amendment for the community to approve to ensure that only members who are actual members/owners of the association are qualified to run and serve on the board.

As to the first notice of election, notwithstanding any strict requirements set out in the first notice of election regarding where potential candidates must submit their notice of candidacy, it is not sufficient to exclude a candidate on the basis of the candidate  delivering his or her intent to be a candidate elsewhere so long as it is reasonable to conclude the association actually received notice of such candidate’s intent to run for the board. For example, a specific address could be required to mail the intent to run form, but the fact that a candidate hand-delivered such notice to a board member or manager would likely not be sufficient grounds to exclude the candidate.

Through a variety of arbitration decisions, the arbitrators have made clear that if the violation at hand would not have changed the results of the election, then the challenge will fail. For example, an association that improperly excluded several ballots due to perceived flaws with the outer envelope, which in fact were later held not to be flaws at all and which if counted would not have overturned the otherwise valid election results if the ballots were later included in the total count, would not have changed the result.

In other instances where numerous violations combine to clearly affect the reliability of the election results, then an election challenge may be valid. For example, where unit owners are permitted to cast ballots without inner envelopes, at least one owner was permitted to retrieve his ballot and change it, and nobody verified signatures on the outer ballot envelopes and where at least one unit owner was allowed to cast a ballot after the polls had already closed, then cumulatively the election results were determined to be  no longer reliable and a new election was required.

While the Division has promulgated condominium election rules in the Florida Administrative Code, it has not yet done so for homeowners’ associations. Therefore, the body of condominium arbitration decisions can provide some guidance; but for the most part, when examining homeowners’ association election challenges, the arbitrators are required to consider the significance and totality of violations in their decision-making as to whether to void an election, or not.

At times, for reasons that really do not make any practical sense, some management companies when preparing a homeowners’ association election revert back to the condominium form of election with a first notice, second notice, intent to run, etc. rather than relying on the homeowners’ association governing documents, which have a completely different election style and where voting is by proxy or in person. Also, there are no requirements to declare candidacy in advance of the annual election, meaning a candidate could actually nominate himself or herself from the floor of the meeting on the election day itself. When management companies go on autopilot and use the condominium style of election contrary to the requirements set out in the homeowners’ association governing documents, then the arbitrators will likely require a new election to take place in conformity with the governing documents of the homeowners’ association.

A successful challenge of a homeowners’ association election often rests upon whether the alleged violation affected the outcome of the election. This once again is evidence that unless the alleged violation would have changed the outcome of the election, then the election challenge likely fails even if there were serious irregularities during the election process.

A few odds and ends are worthy of discussion as well. An active board of directors should not use the association’s pulpit for campaigning. Doing so can lead to a successful election challenge. However, an existing board member can certainly campaign on his or her own time and using their own means but not through the association or its website. If the association has not enforced use of voting certificates, then to do so without providing advanced written notice and an opportunity for the owners to comply could invalidate election results. Finally, if a valid election does not occur because either a quorum was not achieved or in the condominium context at least 20 percent of the eligible voters did not cast the ballot, then there is no obligation of the association to try again.

When bringing an election challenge is under consideration, ask yourself if the irregularity would have brought about a change in the outcome of the election. If not, then, think twice about bringing the challenge. In any event, it is worthwhile for an association concerned with its election process to consult with the association’s lawyer for a detailed conversation as to how best to avoid such problems in the future.

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Should Your Condo Association Adopt Online Voting? by Becker / BECKERBALLOT

Should Your Condo Association Adopt Online Voting? by Becker / BECKERBALLOT

  • Posted: Nov 04, 2024
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Should Your Condo Association Adopt Online Voting?

by Becker / BECKERBALLOT

Many associations are considering whether to adopt online voting (or “E-Voting”). Legislation took effect enacting Section 718.128, back in July 2015.  Florida Statutes, permitting condominiums, cooperatives and homeowners’ associations to conduct elections and other owner votes through the use of “an Internet-based online voting system.” This article will discuss how to do so and what the advantages are.

The first step is for a Board to decide if they wish to offer electronic voting to their members. Florida Statutes 718.128 requires associations to adopt a board resolution approving electronic voting before they can utilize this type of voting process. The resolution must determine the manner in which online voting will be conducted such as procedures, deadlines, opportunities to consent to and participate, or opt out. The resolution must be considered at a board of directors meeting on 14 days of notice. A copy of the resolution must be provided to owners.

 

The resolution must provide that:

All unit owners receive notice of the opportunity to vote through an online voting system prior to each election or other unit owner vote in which the association authorizes online voting;
The deadline to consent, in writing, to online voting must be no less than 14 days before the election or other unit owner vote;
A method to authenticate the unit owner’s identification to the online voting system;
A method to transmit an electronic ballot to the online voting system that ensures the secrecy and integrity of each ballot; and,
A method to confirm, at least 14 days before the voting deadline, that the unit owner’s electronic device can successfully communicate with the online voting system.

The first of these requirements will ensure continual notice under circumstances in which online voting is conducted on an ongoing basis, avoiding situations where new owners are unaware of their right to opt in, and the latter prevents issues arising from last minute consents, and protects against fraud.

 

The following are other significant requirements contained in the legislation:

The e-voting system must provide the owner with a receipt, including the specific vote cast, the date and time of submission, and the user identification.
The e-voting system must also produce an official record for the association identifying the specific votes cast on each ballot and the date and time of the receipt of each electronically submitted ballot. The association must then maintain this record.
Votes in an election of directors shall not be accessible to the association prior to the scheduled election. Failure to comply will void the election.

In associations where voting participation is an issue, online voting can greatly increase participation and generate enthusiasm for the voting process. Online voting can also lessen the risk of fraudulent elections. While the costs for use of online voting software are likely to exceed mail out costs in many associations, such costs can be mitigated over time, and associations have flexibility in determining whether particular meetings will utilize online voting (i.e. – it is not an all or nothing decision).

Associations choosing to move forward must take care to confirm that they are using a vendor that understands and complies with the technical requirements. Like all other vendor contacts, it is critical to discuss the terms with legal counsel, who can also determine whether the system to be utilized is compliant. As meetings approach where online voting will be conducted, the use of online voting will require certain additional disclosures and instructions to members in relation to the process. Contact an attorney with experience in condominium and homeowners association (HOA) law with any questions.

 

Our industry has a few that we looked into: one comes out as a leader

BECKERBALLOT  

Today is the day you’ve been waiting for –BeckerBALLOT.com is LIVE! We have partnered with SHYFT digital to offer an easy-to-use, secure, electronic-voting solution for community associations across the state of Florida and beyond. It’s the same great software – only better!
What you can look forward to upon signing up:

  • Increase membership participation and significantly reduce the labor involved in tallying paper votes.
  • Members can cast their votes from the convenience of their home, office, or anywhere they have access to an internet connection.
  • Admins can tally votes electronically, making the process faster, more accurate, and less prone to human error.
  • Eliminate typical errors and judgment calls associated with manual paper votes.
  • Easily solicit opinions using our survey tool to make informed decisions for your association membership.

We now offer flexible pricing, as well as a survey feature when you sign up for annual unlimited voting. The survey tool allows you to poll your community association without conducting an official vote.

Also, did you know that if you become a Becker annual retainer client, you will receive, among other benefits, a significant discount on BeckerBALLOT?

 

 

 

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Want to take part in the decision making, step up, and run for the board. Learn about Boards how they function and How to Run Decision Making Meetings.

Want to take part in the decision making, step up, and run for the board. Learn about Boards how they function and How to Run Decision Making Meetings.

  • Posted: Nov 04, 2024
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Everyone has something to say about the Boards Decisions, but not many want to become a board member!

When an owner approaches me to complain about the decisions of the board of directors at his or her association is;  The First Question I ask is- “did you attend the meeting that decision was made at?” The Second Question is- “have you considered running for the board so that you can be part of the decision-making process?” All too often the answer to both questions is no. If you want to understand why your board makes the decisions they make and possibly influence those decisions the best way to do this is to attend the board meetings and comment on items you have knowledge or concerns about on the agenda. Want to take part in the decision making, step up, and run for the board. – by Royale Management Services

 

The vast majority of business decisions are made in meetings. While small decisions are made in all kinds of meetings, the more important decisions often get their own dedicated meetings.

There are different types of group decision making processes, and care should be taken to choose a process that best matches the situation. A decision making process can include group activities like information gathering and sharing, brainstorming solutions, evaluating options, ranking preferences, and voting on the final options. Below are the most effective ways of running decision making meetings.

 

Primary Goals for Decision Making Meetings

Goals for a decision-oriented meeting can vary a little based on the type of decision being made, but they are always centered on coming to a consensus about a future plan. It is important to remember that the goal of these meetings also includes planning how to best execute the decision that has been made.

Make the best possible decision

If a decision making process is flawed and dysfunctional, the decisions will be bad.

By involving a group in making a decision you can rely on collective intelligence; knowledge beyond what is possible with individual decision makers. Because each participant has unique information and perspectives, combining group information leads to more informed decisions. However, it is important to use meetings designed specifically for group decisions efficiently, to not waste the group members’ time.
If all planning decisions were made by one person, not only would the choices be uninformed, there would also be little unity around team goals and direction.

Planning for execution

When individuals feel that their opinion has been considered in the group planning, they are more likely to embrace the decisions and work to carry out those goals.

Most discussions of decision making assume that only senior executives make decisions or that only senior executives’ decisions matter. This is a dangerous mistake.

Participatory decision making leads to increased team productivity and likelihood of goal execution, because team members feel ownership and responsibility for the decisions made.
Addressing both short term and long term goals at your decision making meetings is a great way to make sure team members leave with a direction and know the next steps. The short term plan can be as simple as outlining action items and assigning tasks. In the long term it could mean setting a timeline of general dates and milestones. Initial planning can be an effective way of aligning the group and cementing the decision that was made.

 

 

Key Roles in Decision Making Meetings

The participants in decision making meetings may play different roles. Understanding the distinctions between these levels of involvement is a useful way of holding members accountable for their role in implementing decisions.

Meeting leader

In order to avoid getting off topic it is recommended that one person be in charge of guiding the direction of team negotiation. In addition, it can be helpful to use some elements of status update meetings in order to have meeting attendees present and be held accountable for research into the decision being made.

Those with authority to carry out the decisions

For decision making meetings it is particularly important to include all relevant persons with authority to carry out the decision. If decisions are made without including the relevant people, it can often be very challenging to implement the resulting decision.

In some cases, it can be useful to dedicate one leader of a team to be a representative for that group. Often, this job is given to someone in a senior position, but it can be fulfilled by anyone capable of accurately reporting information on behalf of a group. If this method is used, the representative should be prepared to report back to the team the consensus that was reached. Without this information exchange, the group unity that should have been a result of the group meeting is lost.

Note taker and process observer

Decision making meetings can often get derailed or become ineffective for a variety of reasons. To counter this, it can be helpful to include a note taker and process observer. These roles should be filled by people not directly involved in the decision so they are not biased toward any particular opinion. A note taker records what was suggested and decided throughout the meeting while a process observer records how those decisions were met. Incorporating these roles can lead to a lasting group understanding as well as ability to improve decision making meetings in the future.

 

Common Challenges in Decision Making Meetings

Making group decisions can be hard. Making good group decisions is even more challenging. However, good decisions is what can make or break your project or even your company or career. Being aware of the most common challenges in decision making meetings will move you closer to facilitating successful group decision making.

Incomplete information and narrow perspectives

An important aspect of collective decision making is to incorporate a broad spectrum of opinions and ideas, and through group collaboration converge these into a best possible solution. This process is easier said than done. Getting to a solution often involves dealing with a lot of conflicting agendas and opinions which are not easily resolved.

Identifying the best possible solutions

Another classic challenge of the decision making meeting is knowing what possible options are worth further consideration and discussion, and which options to discard early. Time is often wasted discussing possibilities that are not even among the most likely or best choices.

 

 

How to Host a Successful Decision Making Meeting

Decision is the spark that ignites action. Until a decision is made, nothing happens.

A great decision making meeting effectively incorporates all participants, benefiting from the knowledge and experience they bring to the process. Giving all relevant parties the opportunity to participate in the decision making process increases the quality of the decision, adds to the collective understanding and support of the outcome, and ensures successful implementation.

Consider all relevant information

We want as much relevant information as possible to go into the group decision process. This means involving as many stakeholders as practically possible to provide input when it comes to defining the problem area, come up with possible solutions, and evaluate options.

Generate and evaluate possible solutions

Identify and agree on solution requirements before starting to brainstorm potential solutions. Then, invite to brainstorm solutions with an open mind, focusing on the issue rather than the person presenting the idea. Use the solution requirements to evaluate the various suggestions, identifying the top ideas for further consideration.

Get everyone on board

The secret of change is to focus all of your energy, not on fighting the old, but on building the new.

One of the most important aspects of decision meetings is to create unity around the decision that is created. When each participant feels their opinion has been fully considered as part of the decision making process they are more likely to feel ownership of the decision, even in cases when it is not the outcome they hoped for.

 

 

Better Decision Making Meetings with Technology

Collaborative technologies today like Zoom and a good website where owners can read and voice their opinion on subjects that will impact them are being used to make group decision processes easier to manage, more efficient, produce better solutions, and improve execution of decisions.

 

Easily include and engage all key stakeholders for more complete information

Using smart device-based participation levels the playing field and provides an efficient way to share information and reach group consensus. The unruly nature of decision making meetings is easily structured with Zoom and a good Website for your association, because participants are presented with real-time visualizations and group opinions as the discussion moves forward.

 

Quickly tap into the group’s knowledge and expertise

Having participants use Zoom and a good Website for your association to evaluate options will help focus on the task at hand. Collecting decision preferences automatically, rather than manually, speeds up the process. Not only does that mean less time spent on interpreting where a group stands but it also allows for more people to be involved in the process at the same time.

For example, conducting a brainstorm with a large group of participants using whiteboards, flip charts, and post it notes can get messy. When people are contributing one by one it takes a considerable amount of time. The Zoom and a good Website for your association everyone can brainstorm, this activity lets group members submit ideas concurrently, via their own smart devices and computers making sure to accurately record and organize all inputs. This saves time for everyone involved, no matter how large the group is

 

Real-time visualizations of options and opinions focuses the discussion

Zoom and a good Website for your association are well suited to measure group opinions. In the case of an extended discussion it can be helpful to take multiple snapshots of opinions, as they can change over the course of the conversation. Taking a quick group poll, ranking, or evaluation after an initial conversation will clearly identify where the group feels their time is best spent. This allows the discussion to stay centered on the most important and relevant issues. The group will be able to use these baseline opinions as a jumping off point for focused conversation, establishing a common ground and sense of unity which will set the stage for successfully reaching a decision.

 

Engaged inclusion of stakeholders generates buy-in and better execution

Unfortunately, just organizing a group decision making meeting does not necessarily assure that each person in the room will leave feeling that they have been heard. Using Zoom and a good Website for your association ensures each person gets to contribute on an even scale. Because, participants can literally watch their voice be factored into the results. Playing an active part in the decision making process generates a sense of ownership and responsibility for the results, which in turn ensures active participation in carrying out the plan.

 

 

Adding to this: COVID-19: Technology and Social Distancing by Becker Lawyers.

COVID-19 has introduced new challenges to the way we meet and work together in our communities. Many of our daily community association activities include in-person interaction, from regular meetings to conduct association business to elections and other membership votes. Social distancing, the new normal, has necessitated a change to our behavior. While we continue to learn more about the COVID-19 virus and how it is spread, we do know that limiting in-person interaction can greatly reduce risk. Modern technology is a powerful tool to help reduce the transmission of the virus and allow us all to continue with our normal community association business. The following are a few options to consider as your association works to reduce risk in your community.

Voting

A standard election or membership vote often involves voting on a paper ballot. In addition, other types of voting events also include meeting in person, either to cast a ballot or participate in an annual meeting. At this time, we don’t know exactly how long the virus lasts on surfaces, but experts do believe it can be transmitted by touching surfaces. While social distancing and other guidelines now require we limit group activities and avoid public gatherings, there are a number of technologies that allow voters to participate in elections and cast membership votes safely from the comfort of their own homes.

Online voting is a Florida approved option and is a powerful tool to ensure association members can easily participate without the risk of exposure to the virus from in-person meetings or via voting materials. If you have an upcoming election or other membership vote, consider adding online voting to your process to avoid the need for physical materials and in-person participation.

Association Documentation

Community associations are required to provide access to association documents in the form of document inspection requests, a common practice that is sure to continue even during these uncertain times. We expect COVID-19 to affect the normal course of business for at least the next few months, especially as we continue to avoid in-person meetings and handling physical materials.

Instead of requiring in-person document inspections, consider posting your association documentation to your community website. Community association website software offers tools to upload association documentation and share links via email. These tools also allow you to easily post all Florida required association materials to a password protected area of your association’s website, facilitating ease of access and satisfying document inspection requests. These tools are simple to use and are cost-effective methods to continue to support your membership while helping to stem the transmission of the COVID-19 virus.

Association Communication

As we have seen, communication during an uncertain time is crucial. Your community association website is an instrumental channel to quickly and effectively communicate with your association membership. By posting official notices on how your community is managing the outbreak, your website provides a quick and centralized mechanism to ensure your association is apprised of the latest information. We all rely on websites for information and entertainment, and we will likely spend more time online now that our out of home activities are limited. Take this opportunity to direct your membership to your association website for the latest community updates.

We are all facing the challenges COVID-19 has introduced. Social distancing, cancelled activities, and the overwhelming amount of information only adds to the stress of this evolving situation. Technology can be a powerful equalizer, enabling us to work together in safe conditions and keep lines of communication open to all.

 

 

 

 

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VIDEO REPLAY webinar: “Dollars & Sense | Milestone Inspections & Structural Integrity Reserve Studies (aka SIRS): Senate Bill 4-D, What’s Next?”

VIDEO REPLAY webinar: “Dollars & Sense | Milestone Inspections & Structural Integrity Reserve Studies (aka SIRS): Senate Bill 4-D, What’s Next?”

“Dollars & Sense | Milestone Inspections & Structural Integrity Reserve Studies (aka SIRS): Senate Bill 4-D, What’s Next?”

Today’s Requirements vs. Proposed Legislative Changes

Jeff Rembaum provided a thorough update covering the latest proposed changes to the Milestone and Structural Integrity Reserve Study (aka SIRS) requirements.

Jeff joined Kelly Britten (The Castle Group), Greg Main-Baillie and Jeremy Caldwell (Colliers) and Timothy Marshall (A.T. Designs), all of whom provided insight from the perspective of licensed CAMS, project management and engineering, respectively.

Milestone Inspections and Structural Integrity Reserve Studies (SIRS) | Senate Bill 4-D…What’s Next: Today’s Requirements vs. Proposed Legislation. Our panel of experts and professionals answered your questions concerning the new condo reserve laws, proposed legislation, responsibilities and roles of those involved.

    • Jeffrey A. Rembaum, Esq. (Kaye Bender Rembaum)
    • Greg Main-Baillie (Colliers)
    • Jeremy Caldwell (Colliers)
    • Kelly Britten (The Castle Group)
    • Timothy S. Marshall (A.T. Designs)

This webinar does not satisfy any requirements for manangers or board members, nor should it be considered legal advice.

For more great Videos view our YouTube page, view our members videos.

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Hurricane Recovery: A rundown of lessons learned from previous storms from Becker Shareholder Joseph E. Adams

Hurricane Recovery: A rundown of lessons learned from previous storms from Becker Shareholder Joseph E. Adams

Hurricane Recovery: A rundown of lessons learned from previous storms from Becker Shareholder Joseph E. Adams

Recovery From Hurricane Ian

Unfortunately, Hurricane Ian was a historic storm and has left a wide and substantial swath of damage across Southwest Florida. As we all work to recover from the ongoing effects of Hurricane Ian, I would like to share a few pointers we have learned from past storms and some things we are experiencing with Ian:

  1. Flood Damage: A significant part of Ian’s damage resulted from rising water, which is generally and generically referred to as “flood damage”. It is very important to note that flood insurance and processing flood insurance claims is covered by federal law, not Florida law. Among the notable differences, federal law requires that a “Proof of Loss” be filed for flood claims within 60 days, and the statute of limitations under flood policies is one year.
  2. Disaster Recovery Contractors: There are a number of large national companies, as well as others, who employ large crews of “storm chasers”, and arrive at disaster sites to shore up the property, dry it in, and dry it out. This is critical work and many of these companies are reputable, but not all are. Bills for significant damage sites can quickly approach seven figures (one million dollars plus) without proper justification. Associations can understandably feel under pressure to sign these companies up quickly but there are several critical things to keep in mind:
  • Approval From Your Insurer: Most reputable companies will be known to your insurers and be able to demonstrate they have the “go ahead” from the insurer before engaging in major work.
  • “Mapping”: As Southwest Florida is a significant disaster zone, insurance adjustors are overwhelmed and one may not visit your property for weeks, or longer. It is very important that the disaster relief contractor properly document the conditions it finds and remediates, commonly known as “mapping.”
  • “Assignment of Benefits”: Historically, various participants in this field have asked for an assignment of the association’s insurance policy rights, known as an “AOB”’. AOB contracts are now strictly regulated by statute but should never be given to an outside contractor.

While getting dry-out work started quickly is critical, the association should not enter into a contract with a remediation company, or any vendor, if the association is not comfortable with the term of the agreement and confident in the company. It is always better to take a step back and make a thoughtful decision than to rush into a bad agreement.

  1. Application Of Your Community’s Governing Documents: If the association has experienced significant damage, it is critical that the association be aware of the requirements of the governing documents, especially for condominiums. For example, many documents state that if a certain percentage of the units are rendered “uninhabitable” (usually an undefined term), the condominium is automatically “terminated” (legally extinguished) if a vote to rebuild is not taken, often in a very short time frame such as 60 days after the loss. Other “gotcha” clauses in documents might include the requirement to have a bank act as “insurance trustee” for insurance proceeds.
  2. Emergency Powers: The “emergency powers” provisions of the statutes are now in effect. Among other powers conferred are the power to contract for debris removal and authorize appropriate remediation, including removal of wet drywall and cabinetry, subject to any limitations of the condominium documents. The emergency powers statute also gives associations flexibility in noticing and holding membership and board meetings. As much as is practicable, you should consult with your association’s attorney regarding use of the statutory emergency powers.

The next few months will be a trying time for everyone in Southwest Florida and practically every community association will have to deal with some consequence from Hurricane Ian. The decisions that board members and owners make at this time will, to a great degree, determine outcome for many communities.

Joseph E. Adams is a Board Certified Specialist in Condominium and Planned Development Law, and an Office Managing Shareholder with Becker & Poliakoff. Please send your community association legal questions to jadams@beckerlawyers.com. Past editions of the Q&A may be viewed at floridacondohoalawblog.com.

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The Maus Law firm extends “5 Tips to maximize your compensation when filing an insurance claim”.

The Maus Law firm extends “5 Tips to maximize your compensation when filing an insurance claim”.

  • Posted: Oct 30, 2024
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The Maus Law firm extends our heartfelt condolences and prayers to their families and friends who have lost so much.

Our area in East South Florida was fortunate to be spared, but you should always know your insurance rights and obligations. We are here to help.
Here are five important tips on how to build a winning case.
  1. #1: Retain an Attorney. …
  2. #2: Get Medical Treatment for Your Injuries. …
  3. #3: Preserve Evidence. …
  4. #4: Stay Off Social Media. …
  5. #5: Do Not Accept a Quick Settlement.
We are only a phone call away if you would like more information about filing a property damage insurance claim.
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MANDATORY CONDOMINIUM & COOPERATIVE BUILDING INSPECTIONS & NON-WAIVABLE RESERVE REQUIREMENTS SENATE BILL 4-D

MANDATORY CONDOMINIUM & COOPERATIVE BUILDING INSPECTIONS & NON-WAIVABLE RESERVE REQUIREMENTS SENATE BILL 4-D

  • Posted: Oct 23, 2024
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MANDATORY CONDOMINIUM & COOPERATIVE BUILDING INSPECTIONS & NON-WAIVABLE RESERVE REQUIREMENTS

We are reposting this, for all the buildings That have not had inspections…..

SENATE BILL 4-D

With home insurers leaving Florida in droves, and following pressure from members of both political parties in the legislature to actually do something about it, in May 2022, the governor called a special legislative session to address the problem. A very real concern to the insurers is the effect of both time and inclement weather on Florida’s aging high-rise buildings. Until now, and for the most part, Florida law largely ignored these concerns. Enter Senate Bill 4-D (SB 4-D) which already became effective upon being signed into law by Governor DeSantis on May 26, 2022. This new piece of legislation addresses condominium and cooperative building inspections and reserve requirements (while this article primarily addresses these new laws in the context of condominium association application, they are equally applicable to cooperative associations).

By way of background, during the regular legislative session, there were several bills introduced in the Florida House of Representatives (House) and in the Florida Senate (Senate) addressing building safety issues, but none of them were passed into law due to the inability to match the language of the bills in both the House and the Senate which is a requirement for legislation to pass and go to the governor for consideration. As such, it was a little surprising to many observers that the legislature was able to approve SB 4-D in essentially a 48-hour window during the special session in May. The language used in SB 4-D was initially drafted into a proposed bill in November 2021. At that time, and during the most recent legislative session, input was provided by many industry professional groups including engineers, reserve study providers, and association attorneys. Many of these industry professionals indicated that there were challenges with some of the language and concepts being proposed in SB 4-D during session.

Notwithstanding these challenges, and in an effort to ensure some form of life safety legislation was passed this year, SB 4-D was unanimously approved in both the House and Senate and signed by the governor. A plain reading of this well intended, but in some instances not completely thought-out, legislation evidences these challenges. Some will say it is a good start that will need significant tweaking, which is expected during the 2023 Legislative Session. Others praise it, and yet others say it is an overreach of governmental authority, such as an inability to waive or reduce certain categories of reserves. You be the judge. We begin by examining the mandatory inspection and reserve requirements of SB 4-D.

I. MILESTONE INSPECTIONS: MANDATORY STRUCTURAL INSPECTIONS FOR CONDOMINIUM AND COOPERATIVE BUILDINGS. (§553.899, Fla. Stat.)

You will not find these new milestone inspection requirements in Chapters 718 or 719 of the Florida Statutes, but rather in Chapter 553, Florida Statutes, as cited above.

MILESTONE INSPECTIONS:

The term “milestone inspection” means a structural inspection of a building, including an inspection of load-bearing walls and the primary structural members and primary structural systems as those terms are defined in section 627.706, Florida Statutes, by a licensed architect or engineer authorized to practice in this state for the purposes of attesting to the life safety and adequacy of the structural components of the building and, to the extent reasonably possible, determining the general structural condition of the building as it affects the safety of such building, including a determination of any necessary maintenance, repair, or replacement of any structural component of the building. The purpose of such inspection is not to determine if the condition of an existing building is in compliance with the Florida Building Code or the fire safety code.

SUBSTANTIAL STRUCTURAL DETERIORATION:

The term “substantial structural deterioration” means substantial structural distress that negatively affects a building’s general structural condition and integrity. The term does not include surface imperfections such as cracks, distortion, sagging, deflections, misalignment, signs of leakage, or peeling of finishes unless the licensed engineer or architect performing the phase one or phase two inspection determines that such surface imperfections are a sign of substantial structural deterioration.

MILESTONE INSPECTIONS FOR BUILDINGS THREE STORIES OR MORE IN HEIGHT:

A condominium association under chapter 718 and a cooperative association under chapter 719 must have a milestone inspection performed for each building that is three stories or more in height by December 31 of the year in which the building reaches 30 years of age, based on the date the certificate of occupancy for the building was issued, and every 10 years thereafter.

WITHIN THREE MILES OF COASTLINE:

If the building is three or more stories in height and is located within three miles of a coastline, the condominium association or cooperative association must have a milestone inspection performed by December 31 of the year in which the building reaches 25 years of age, based on the date the certificate of occupancy for the building was issued, and every 10 years thereafter.

The condominium association or cooperative association must arrange for the milestone inspection to be performed and is responsible for ensuring compliance.

The condominium association or cooperative association is responsible for all costs associated with the inspection.

IF THE CERTIFICATE OF OCCUPANCY WAS ISSUED BEFORE JULY 1, 1992:

If a milestone inspection is required under this statute and the building’s certificate of occupancy was issued on or before July 1, 1992, the building’s initial milestone inspection must be performed before December 31, 2024. If the date of issuance for the certificate of occupancy is not available, the date of issuance of the building’s certificate of occupancy shall be the date of occupancy evidenced in any record of the local building official.

Upon determining that a building must have a milestone inspection, the local enforcement agency must provide written notice of such required inspection to the condominium association or cooperative association by certified mail, return receipt requested.

Within 180 days after receiving the written notice the condominium association or cooperative association must complete phase one of the milestone inspection. For purposes of this section, completion of phase one of the milestone inspection means the licensed engineer or architect who performed the phase one inspection submitted the inspection report by e-mail, United States Postal Service, or commercial delivery service to the local enforcement agency.

A MILESTONE INSPECTION CONSISTS OF TWO PHASES:

    (a) PHASE 1: For phase one of the milestone inspection, a licensed architect or engineer authorized to practice in this state must perform a visual examination of habitable and non-habitable areas of a building, including the major structural components of a building, and provide a qualitative assessment of the structural conditions of the building. If the architect or engineer finds no signs of substantial structural deterioration to any building components under visual examination, phase two of the inspection (discussed below) is not required. An architect or engineer who completes a phase one milestone inspection shall prepare and submit an inspection report.

    (b) PHASE 2: A phase two of the milestone inspection must be performed if any substantial structural deterioration is identified during phase one. A phase two inspection may involve destructive or nondestructive testing at the inspector’s direction. The inspection may be as extensive or as limited as necessary to fully assess areas of structural distress in order to confirm that the building is structurally sound and safe for its intended use and to recommend a program for fully assessing and repairing distressed and damaged portions of the building. When determining testing locations, the inspector must give preference to locations that are the least disruptive and most easily repairable while still being representative of the structure. An inspector who completes a phase two milestone inspection must prepare and submit an inspection report.

POST-MILESTONE INSPECTION REQUIREMENTS:

Upon completion of a phase one or phase two milestone inspection, the architect or engineer who performed the inspection must submit a sealed copy of the inspection report with a separate summary of, at minimum, the material findings and recommendations in the inspection report to the condominium association or cooperative association, and to the building official of the local government which has jurisdiction. The inspection report must, at a minimum, meet all of the following criteria:

    (a) Bear the seal and signature, or the electronic signature, of the licensed engineer or architect who performed the inspection.

    (b) Indicate the manner and type of inspection forming the basis for the inspection report.

    (c) Identify any substantial structural deterioration within a reasonable professional probability based on the scope of the inspection, describe the extent of such deterioration, and identify any recommended repairs for such deterioration.

    (d) State whether unsafe or dangerous conditions, as those terms are defined in the Florida Building Code, were observed.

    (e) Recommend any remedial or preventive repair for any items that are damaged but are not substantial structural deterioration.

(f) Identify and describe any items requiring further inspection.

LOCAL GOVERNMENT ENFORCEMENT:

A local enforcement agency may prescribe time lines and penalties with respect to compliance with the milestone inspection requirements.

A board of county commissioners may adopt an ordinance requiring that a condominium or cooperative association schedule or commence repairs for substantial structural deterioration within a specified time frame after the local enforcement agency receives a phase two inspection report; however, such repairs must be commenced within 365 days after receiving such report. If an association fails to submit proof to the local enforcement agency that repairs have been scheduled or have commenced for substantial structural deterioration identified in a phase two inspection report within the required time frame, the local enforcement agency must review and determine if the building is unsafe for human occupancy.

BOARD’S DUTY AFTER OBTAINING THE MILESTONE REPORT:

Upon completion of a phase one or phase two milestone inspection and receipt of the inspector-prepared summary of the inspection report from the architect or engineer who performed the inspection, the association must distribute a copy of the inspector-prepared summary of the inspection report to each unit owner, regardless of the findings or recommendations in the report, by United States mail or personal delivery and by electronic transmission to unit owners who previously consented to receive notice by electronic transmission; must post a copy of the inspector-prepared summary in a conspicuous place on the condominium or cooperative property; and must publish the full report and inspector-prepared summary on the association’s website, if the association is required to have a website.

WHO PAYS FOR THE MILESTONE INSPECTION:

Pursuant to section 718.112, Florida Statutes, if an association is required to have a milestone inspection performed, the association must arrange for the milestone inspection to be performed and is responsible for ensuring compliance with all of the requirements thereof. The association is responsible for all costs associated with the inspection.

FAILURE TO OBTAIN THE MILESTONE INSPECTION:

If the officers or directors of an association willfully and knowingly fail to have a milestone inspection performed pursuant to section 553.899, Florida Statutes, such failure is a breach of the officers’ and directors’ fiduciary relationship to the unit owners.

MANAGER’S DUTY:

If a community association manager or a community association management firm has a contract with a community association that has a building on the association’s property that is subject to milestone inspection, the community association manager or the community association management firm must comply with the requirements of performing such inspection as directed by the board.

EXEMPTIONS:

For clarity, the otherwise required milestone inspection does not apply to a single family, two-family, or three-family dwelling with three or fewer habitable stories above ground.

FLORIDA BUILDING COMMISSION REQUIREMENTS:

The Florida Building Commission must review the milestone inspection requirements and make recommendations, if any, to the legislature to ensure inspections are sufficient to determine the structural integrity of a building. The commission must provide a written report of any recommendations to the Governor, the President of the Senate, and the Speaker of the House of Representatives by December 31, 2022.

The Florida Building Commission must consult with the State Fire Marshal to provide recommendations to the legislature for the adoption of comprehensive structural and life safety standards for maintaining and inspecting all types of buildings and structures in this state that are three stories or more in height. The commission must provide a written report of its recommendations to the Governor, the President of the Senate and the Speaker of the House of Representatives by December 31, 2023.

II.    STRUCTURAL INTEGRITY RESERVE STUDIES AND MANDATORY RESERVES:

The reserve legislation set out in section 718.112 (f)(2)(a), Florida Statutes, is, for all intents and purposes, re-written. Prior to examining these most recent revisions, it is necessary to first examine the definitions set out in section 718.103, Florida Statutes, where a brand new term is added as follows:

    Structural integrity reserve study means a study of the reserve funds required for future major repairs and replacement of the common areas based on a visual inspection of the common areas applicable to all condominiums and cooperative buildings 3 stories or higher.

Hereafter, the structural integrity reserve study is referred to as “SIRS”. Now we can turn our attention to the requirements of the SIRS as set out in section 718.112 (f)(2)(a), Florida Statutes

THE STRUCTURAL INTEGRITY RESERVE STUDY (required for all condominium and cooperative buildings three stories or higher regardless of date of certificate of occupancy):

An association must have a SIRS completed at least every 10 years after the condominium’s creation for each building on the condominium property that is three stories or higher in height which includes, at a minimum, a study of the following items as related to the structural integrity and safety of the building:

a.     Roof.

b. Load-bearing walls or other primary structural members.

c. Floor.

d. Foundation.

e. Fireproofing and fire protection systems.

f. Plumbing.

g. Electrical systems.

h. Waterproofing and exterior painting.

i.  Windows.

j. Any other item that has a deferred maintenance expense or replacement cost that exceeds $10,000 and the failure to replace or maintain such item negatively affects the items listed in subparagraphs a.-i., as determined by the licensed engineer or architect performing the visual inspection portion of the structural integrity reserve study.

The SIRS may be performed by any person qualified to perform such study. However, the visual inspection portion of the structural integrity reserve study MUST be performed by an engineer licensed under chapter 471 or an architect licensed under chapter 481.

As further set out in the legislation, at a minimum, “a structural integrity reserve study must identify the common areas being visually inspected, state the estimated remaining useful life and the estimated replacement cost or deferred maintenance expense of the common areas being visually inspected, and provide a recommended annual reserve amount that achieves the estimated replacement cost or deferred maintenance expense of each common area being visually inspected by the end of the estimated remaining useful life of each common area.”

The amount to be reserved for an item is determined by the association’s most recent structural integrity reserve study that must be completed by December 31, 2024. If the amount to be reserved for an item is not in the association’s initial or most recent structural integrity reserve study or the association has not completed a structural integrity reserve study, the amount must be computed using a formula based upon estimated remain useful life and estimated replacement cost or deferred maintenance expense of each reserve item.

If the condominium building is less than three stories then the legislation provides that, “in addition to annual operating expenses, the budget must include reserve accounts for capital expenditures and deferred maintenance. These accounts must include, but are not limited to, roof replacement, building painting, and pavement resurfacing, regardless of the amount of deferred maintenance expense or replacement cost, and any other item that has a deferred maintenance expense or replacement cost that exceeds $10,000.”

The association may adjust replacement reserve assessments annually to take into account any changes in estimates or extension of the useful life of a reserve item caused by deferred maintenance.

If an association fails to complete a SIRS, such failure is a breach of an officer’s and director’s fiduciary relationship to the unit owners.

NON-WAIVABLE AND WAIVABLE RESERVES IN THE UNIT OWNER CONTROLLED ASSOCIATION:

As to the SIRS, the legislation is patently clear that unit owners may not vote for no reserves or lesser reserves for items set forth SIRS report. There is on-going debate amongst attorneys in regard to whether a condominium under three stories can waive or reduce reserves for any of the reserve items required to be in the SIRS that are included in the under three story condominium reserve, for example, roof and painting (For those interested, examine lines 1029 to 1033 and 1050 to 1071 in SB 4-D).

MANDATORY RESERVES IN THE DEVELOPER CONTROLLED ASSOCIATION:

Before turnover of control of an association by a developer to unit owners other than a developer pursuant to section 718.301, Florida Statutes, the developer-controlled association may not vote to waive the reserves or reduce the funding of the reserves (Previously, a developer could fully waive all reserves for the first two years, meaning this is a monumental change).

PRE-TURNOVER DEVELOPER DUTY:

Before a developer turns over control of an association to unit owners other than the developer, the developer must have a SIRS completed for each building on the condominium property that is three stories or higher in height.

III.    OFFICIAL RECORDS:

Official records of the condominium and cooperative association include structural integrity reserve studies, financial reports of the association or condominium, and a copy of the inspection reports and any other inspection report relating to a structural or life safety inspection of condominium or cooperative property.

In addition to the right to inspect and copy the declaration, bylaws and rules renters have the right to inspect the milestone inspection report and structural integrity reserve study inspection reports as well.

Structural integrity reserve studies must be maintained for at least 15 years after the study is completed. In addition, inspection reports report and any other inspection report relating to a structural or life safety inspection of condominium property must be maintained for 15 years after receipt of such report.

IV.    ASSOCIATION WEBSITES:

In addition to other positing requirements, the inspection reports described above and any other inspection report relating to a structural or life safety inspection of condominium property and the association’s most recent structural integrity reserve study must be posted to the website.

V.    JURISDICTION OF DIVISION OF CONDOMINIUMS, TIMESHARES, AND MOBILE HOMES:

Pre-turnover, the Division of Florida Condominiums, Timeshares, and Mobile Homes (Division) may enforce and ensure compliance with rules relating to the development, construction, sale, lease, ownership, operation, and management of residential condominium units, and complaints related to the procedural completion of milestone inspections. After turnover has occurred, the Division has jurisdiction to investigate complaints related only to financial issues, elections, and the maintenance of and unit owner access to association records, and the procedural completion of structural integrity reserve studies.

VI. NEW REPORTING REQUIREMENTS FOR ALL CONDOMINIUM AND COOPERATIVE ASSOCIATIONS:

On or before January 1, 2023, condominium associations existing on or before July 1, 2022, must provide the following information to the Division in writing, by e-mail, United States Postal Service, commercial delivery service, or hand delivery, at a physical address or e-mail address provided by the division and on a form posted on the division’s website:

  1. The number of buildings on the condominium property that are three stories or higher in height.
  2. The total number of units in all such buildings.
  3. The addresses of all such buildings.
  4. The counties in which all such buildings are located.

An association must provide an update in writing to the division if there are any changes to the information in the list within six months after the change.

VII.    APPLICABLE TO ALL SELLERS OF UNITS:

As a part of the sales process, the seller of a condominium or cooperative unit and developers must provide to potential purchasers a copy of the inspector-prepared summary of the milestone inspection report and a copy of the association’s most recent structural integrity reserve study or a statement that the association has not completed a structural integrity reserve study.

VIII.    GLITCHES:

As with any new legislation of such a substantial nature, there often follow in subsequent years what are referred to as “glitch bills” which help provide additional clarity, remove ambiguity, and fix unintended errors. To name a few: (i) the term “common areas” is used in the legislation when in fact the correct term is “common element;” (ii) clarity needs to be provided regarding whether reserve items that are required to be in SIRS, but show up in the under three story reserves, such as paint and paving, can be waived or reduced by the membership; and (iii) for those buildings that are within three miles of the coastline, additional clarity could be provided to provide better guidance as to how to perform the measurement.    

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