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Local Condos Failing to Comply with New Milestone Inspections Law

Local Condos Failing to Comply with New Milestone Inspections Law

  • Posted: Jan 28, 2025
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Recent reporting by the Sun Sentinel chronicled how 124 condominium buildings, representing approximately 25,000 residences in unincorporated Palm Beach County, failed to submit their milestone inspection reports by the end of 2024 as required under the new Florida law. The circumstances described in the article are possibly playing out in other jurisdictions throughout the state in light of the recent passing of the December 31, 2024, deadline by which many residential condominium and cooperative buildings of three stories or more throughout the state were required to have completed their milestone inspections and reports. The article indicated that Palm Beach County officials are now strongly urging the representatives of those communities to submit the required inspection paperwork as soon as possible.

The Florida law, which was enacted in response to the 2021 tragedy of the building collapse in Surfside, required associations for many residential condominium and cooperative buildings 30 years or older and with three or more stories to have filed an inspection report detailing necessary structural building maintenance and required repairs by December 31, 2024 (with the balance of such buildings having to do so by December 31, 2025, depending upon when they reached 30 years of age). During the first phase of the required milestone inspection, a state-licensed architect or engineer must examine the building to assess the condition of its main structural elements. If no repairs are needed and the building passes, the next milestone inspection is due in 10 years.  For buildings in which deterioration is detected, a second phase of inspections is subsequently required to take place within the ensuing 180 days, but that timeframe can be extended if extra time is deemed necessary.

Unfortunately, some condominium and cooperative associations required to have complied failed to do so, citing factors which include a lack of funds to perform such inspections, unavailability of qualified professionals to timely perform the inspections and reports, or a general misunderstanding as to the need to comply with the required inspections. Elected and other governmental officials seem to be struggling with the best approach to compel compliance, given that stakeholders in many communities are complaining about the burdens being imposed upon them due to the inspection requirements as well as the newly enacted structural integrity reserve funding obligations, installation or upgrades of bi-directional amplification systems for emergency responders, and the need to fund costly property insurance premiums also required by state law.

The newspaper quotes Palm Beach County officials illustrating that their objective is to make sure buildings are maintained and repaired, and indicating they are neither looking to “kick people out of their houses” nor “to basically knock down buildings.”

The story indicates that in unincorporated Palm Beach County, more than 500 buildings were supposed to have filed their milestone inspection, but almost a quarter of them failed to do so. The recent reporting found that more than 100 buildings in the county have entered into the second phase of inspections, and more than 200 remain under review under the first phase.  For the 124 properties that have not yet provided any milestone-inspection information, county officials say they remain in the dark about the state of those buildings.

As we continue to move past the inspection and reporting deadline, and approach the deadline for the remainder of buildings required to comply, local governmental officials will wrestle with the best approaches to enforce compliance with the requirements.  Some authorities may opt to begin enforcement with a notice being sent out to remind association registered agents and directors that they are not yet in compliance, steering clear of immediately imposing fines or other penalties. However, other authorities may feel that optimal compliance with the inspection and reporting requirements may not be likely to be achieved without the threat of fines or similar measures.

The recent article further mentioned that along with potential fines, the commissioners and other officials also discussed the use of new signage to be posted at the buildings alerting residents to the fact that the structure has not yet been inspected, as well as the issuance of noncompliance notices to be distributed to all the board members.

For residential condominiums and cooperatives that do not undergo the required inspection, the potential consequences could include difficulty in obtaining insurance renewals along with increased premiums. They could also face potential legal action from their owners, who could find themselves unable to sell their residences and seeking remedies for any decreases in property values that may ensue. Ultimately, the associations for such communities may be forced to increase their assessments in response to these repercussions and any fines that may be imposed.

Our firm strongly recommends that all the associations for residential condominium and cooperative communities that have not already complied with these new requirements for milestone inspections make them an immediate priority and take all reasonable actions necessary to complete the initial phase and file the necessary report to their corresponding building department as soon as possible.

by ROBERTO BLANCH, SIEGFRIED RIVERA


Find engineers for your Inspections.

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THE RETURN OF THE CORPORATE TRANSPARENCY ACT INJUNCTION

THE RETURN OF THE CORPORATE TRANSPARENCY ACT INJUNCTION

  • Posted: Jan 26, 2025
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THE RETURN OF THE CORPORATE TRANSPARENCY ACT INJUNCTION

by Rembaum’s Association Roundup

Recently we reported to you that a panel of the U.S. Court of Appeals for the Fifth Circuit vacated (reversed) the Texas District Court’s previously enacted injunction that had the effect of making the Corporate Transparency Act’s registration requirements applicable once again.

Guess What? On December 30th, 2024 the U.S. Court of Appeals for the Fifth Circuit again reinstated the nationwide injunction. FinCen’s website provides that, “in light of a recent federal court order, reporting companies [which includes Florida’s condominium, homeowners’, and cooperative associations] are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.

The FinCen website provides a procedural history that further explains the current situation as follows:

On Tuesday, December 3, 2024, in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al., No. 4:24-cv-00478 (E.D. Tex.), the U.S. District Court for the Eastern District of Texas, Sherman Division, issued an order granting a nationwide preliminary injunction. The Department of Justice, on behalf of the Department of the Treasury (Treasury), filed a Notice of Appeal on December 5, 2024 and separately sought of stay of the injunction pending that appeal.

On December 23, 2024, a panel of the U.S. Court of Appeals for the Fifth Circuit granted a stay of the district court’s preliminary injunction entered in Texas Top Cop Shop, Inc., pending the outcome of Treasury’s ongoing appeal of the district court’s order. Treasury immediately issued an alert notifying the public of this ruling and recognizing that reporting companies may have needed additional time to comply with beneficial ownership reporting requirements, Treasury extended reporting deadlines. However, on December 26, 2024, a different panel of the U.S. Court of Appeals for the Fifth Circuit issued an order vacating the Court’s December 23, 2024 order granting a stay of the preliminary injunction. On December 31, 2024, the Department of Justice, on behalf of Treasury, sought a stay of the injunction pending the ongoing appeal from the Supreme Court of the United States.

In the meantime, as of December 26, 2024, the injunction issued by the District Court in Texas Top Cop Shop, Inc. is once again in effect. FinCEN is complying with—and will continue to comply with—the District Court’s order for as long as it remains in effect. As a result, reporting companies are not currently required to file beneficial ownership information with FinCEN. Reporting companies may continue to voluntarily submit beneficial ownership information reports.

As new information is obtained we will share it with you, our readers. For those who are interested, our prior Association RoundUp articles regarding the Corporate Transparency Act debacle follow below.

THE CORPORATE TRANSPARENCY ACT STRIKES BACK

In the never ending saga regarding the applicability of the Corporate Transparency Act, there is yet another twist in that the judge in the Texas litigation, which we wrote about to you on December 14 and who issued the nationwide injunction, reversed course on December 23, when he lifted the court’s previously enacted injunction making the Corporate Transparency Act’s registration requirements applicable once again. However, FinCen, in light of the short notice, has extended the deadline in which to register to January 13, 2025 absent other deadline extensions.

As reported in our prior article, a recent update from the United States Department of Treasury, Financial Crimes Enforcement Network (FinCen) provides an extension of time to comply with the requirements of the Corporate Transparency Act for the initial reporting deadlines, but there are strict requirements regarding the applicability of the extension as discussed below.

FinCen, on October 29, 2024, extended the initial reporting deadlines to June 30, 2025, for associations in counties affected by Hurricane Milton where:

(1) Federal Emergency Management Agency (FEMA) assistance is available for individual or public assistance; and

(2)IRS tax filing deadlines have been extended.

Associations in the following counties appear to be subject to the extension:

Alachua, Baker, Bradford, Brevard, Broward, Charlotte, Citrus, Clay, Collier, Columbia, DeSoto, Dixie, Duval, Flagler, Gilchrist, Glades, Hamilton, Hardee, Hendry, Hernando, Highlands, Hillsborough, Indian River, Lafayette, Lake, Lee, Levy, Madison, Manatee, Marion, Martin, Miami-Dade, Monroe, Nassau, Okeechobee, Orange, Osceola, Palm Beach, Pasco, Pinellas, Polk, Putman, Sarasota, Seminole, St. Johns, St. Lucie, Sumter, Suwannee, Taylor, Union, and Volusia.

Of course, to be absolutely certain, please check with your association’s attorney.

_________________________________________

The December 23, 2024 email communication received from the Financial Crimes Enforcement Network as reported on above follows:

Updates to Beneficial Ownership Information Reporting Deadlines – Beneficial Ownership Information Reporting Requirements Now in Effect, with Deadline Extensions

In light of a December 23, 2024, federal Court of Appeals decision, reporting companies, except as indicated below, are once again required to file beneficial ownership information with FinCEN. However, because the Department of the Treasury recognizes that reporting companies may need additional time to comply given the period when the preliminary injunction had been in effect, we have extended the reporting deadline as follows:

  • Reporting companies that were created or registered prior to January 1, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN. (These companies would otherwise have been required to report by January 1, 2025)
  • Reporting companies created or registered in the United States on or after September 4, 2024 that had a filing deadline between December 3, 2024 and December 23, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN.
  • Reporting companies created or registered in the United States on or after December 3, 2024 and on or before December 23, 2024 have an additional 21 days from their original filing deadline to file their initial beneficial ownership information reports with FinCEN.
  • Reporting companies that qualify for disaster relief may have extended deadlines that fall beyond January 13, 2025. These companies should abide by whichever deadline falls later.
  • Reporting companies that are created or registered in the United States on or after January 1, 2025 have 30 days to file their initial beneficial ownership information reports with FinCEN after receiving actual or public notice that their creation or registration is effective.
  • As indicated in the alert titled “Notice Regarding National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.)”, Plaintiffs in National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.)—namely, Isaac Winkles, reporting companies for which Isaac Winkles is the beneficial owner or applicant, the National Small Business Association, and members of the National Small Business Association (as of March 1, 2024)—are not currently required to report their beneficial ownership information to FinCEN at this time.

On Tuesday, December 3, 2024, in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al., No. 4:24-cv-00478 (E.D. Tex.), the U.S. District Court for the Eastern District of Texas, Sherman Division, issued an order granting a nationwide preliminary injunction. On December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit granted a stay of the district court’s preliminary injunction enjoining the Corporate Transparency Act (CTA) entered in the case of Texas Top Cop Shop, Inc. v. Garland, pending the outcome of the Department of the Treasury’s ongoing appeal of the district court’s order. Texas Top Cop Shop is only one of several cases that have challenged the CTA pending before courts around the country. Several district courts have denied requests to enjoin the CTA, ruling in favor of the Department of the Treasury. The government continues to believe—consistent with the conclusions of the U.S. District Courts for the Eastern District of Virginia and the District of Oregon—that the CTA is constitutional. For that reason, the Department of Justice, on behalf of the Department of the Treasury, filed a Notice of Appeal on December 5, 2024 and separately sought of stay of the injunction pending that appeal with the district court and the U.S. Court of Appeals for the Fifth Circuit.

The Kaye Bender Rembaum Team Remains Available To You and Your Community Association

Visit KBRLegal.com for awesome free resources, including news with Legal Morsels and Rembaum’s Association Roundup, and our Event Calendar, including upcoming free classes.

 

Commercial Fitness Products (CFP) is a local total solutions partner for  fitness equipment with offices throughout Florida.

Commercial Fitness Products (CFP) is a local total solutions partner for fitness equipment with offices throughout Florida.

  • Posted: Jan 26, 2025
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Commercial Fitness Products (CFP) is a local total solutions partner for fitness equipment with offices throughout Florida.

Commercial Fitness Products (CFP) is a local total solutions partner with offices throughout Florida. Although our name has products, CFP offers more than products. For over 30 years CFP has provided sales and after sale service. Our consultants guide our clients from conception to realization of their fitness amenity. Through room layout (2D and 3D), budgeting, logistics, and installation. Unlike most companies, our work does not stop there, CFP sales and service department are available to assist clients with maintenance service and consulting for future fitness equipment needs.

Below is a list of what CFP provide:

  • Equipment from the industry’s best brands
  • Complimentary Design Services – equipment selection, space utilization, traffic flow, ADA requirements, safety & functionality
  • Factory trained professional Service Techs
  • Preventative Maintenance Plans
  • Professional Delivery & Assembly Services
  • Logistics Department to coordinate Transportation
  • Trade-In & Trade-Up Allowances
  • Wide selection of Accessories & Maintenance Supplies
  • Rubber Flooring
  • Equipment Orientation

 

When you choose CFP, you choose quality products and local service.

 

 


 


Commercial Fitness Products

Our sales and service department are available to assist clients with maintenance service and consulting for future fitness equipment needs.

 

Our consultants guide our clients from conception to realization of their fitness amenity. Through room layout (2D and 3D), budgeting, logistics, and installation. Unlike most companies, our work does not stop there, CFP sales and service department are available to assist clients with maintenance service and consulting for future fitness equipment needs.

Commercial Fitness Products, a Florida based organization, has been serving the fitness needs of our customers nationwide for over 27 years. Our primary focus is Multi-Housing & Hospitality, as such, we stay current on the latest industry trends, and are able to share ideas on how we may equip or improve any community fitness center. We provide more than just equipment…our goal is to delight your residents & guests by providing them an exceptional fitness environment.

 Contact us:  954-747-5128

Website: http://www.commfitnessproducts.com/

 

 

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Event:  January 23rd from 2-4pm, get updated on ‘2025 Legal Update’ byKBR Legal’s – Lisa Magill, Esq. BCS

Event: January 23rd from 2-4pm, get updated on ‘2025 Legal Update’ byKBR Legal’s – Lisa Magill, Esq. BCS

  • Posted: Jan 21, 2025
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On January 23rd from 2-4pm Est (via Zoom), get updated on the most recent legislative changes and discuss the statutory changes made by the Florida Legislature and how they directly affect managers, board members, and their communities.

Lisa Magill, Esq. BCS will lead the ‘2025 Legal Update’. Complimentary for all; just click below to enroll.

Date & Time
Jan 23, 2025 02:00 PM
Course 9633017 | Provider 0005092 | 2 CE in Legal for CAMS Instructor: Lisa A. Magill, Esq. BCS | Kaye Bender Rembaum, P.L. Get updated on the most recent legislative changes and discuss the statutory changes made by the Florida Legislature and how they directly affect managers, board members, and their communities.
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Out With the Old, In With the New by Published by Eric Glazer, Esq.

Out With the Old, In With the New by Published by Eric Glazer, Esq.

  • Posted: Jan 21, 2025
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The Presidential Inauguration is a reminder of how smoothly leadership transitions can happen at the national level. But in our community associations, things aren’t always so predictable. Discover insights into the often chaotic turnover of power in Florida condos and HOAs—and what it means for your community.

Whether you’re happy about today’s Presidential Inauguration or not, one thing is for sure and for certain; it’s going to happen. Since 1937, it has taken place at noon on January 20, the first day of the new term, except in 1957, 1985, and 2013, when January 20 fell on a Sunday. In those years, the presidential oath of office was administered on that day privately and then again in a public ceremony the next day, on Monday, January 21.

That consistency is a lot more than we can say for our community associations. How many of you have complained that our associations have not held an annual meeting or an election in forever, or at least not in the last year? What about complaints that the Board of Directors has simply changed the dates of our annual meeting on more than one occasion and extended their term in office?

The terms of Board members expire at the annual meeting. So when are you supposed to have an annual meeting and election? The date of your annual meeting is contained within your bylaws. But suppose the Board wants to have the annual meeting on another date for any variety of reasons? Can they do so? Not according to one court which held that the annual meeting must be held on the date contained in the association’s bylaws. Not to do so would be as if an amendment was made to those bylaws without the proper vote of the unit owners.

And despite this ruling, dozens, if not hundreds or maybe even thousands of condominium and HOAs won’t hold their annual meeting and election this year on the date mandated by their own documents.

The last few years has also brought drama to the country regarding the requirements of outgoing administrations to turn over official records. Trump got charged with a crime and Biden was found to have wrongfully retained official records but wasn’t charged with a crime.

When it comes to condominiums, “An outgoing board or committee member must relinquish all official records and property of the association in his or her possession or under his or her control to the incoming board within 5 days after the election. The division shall impose a civil penalty as set forth in s. 718.501(1)(d)6. against an outgoing board or committee member who willfully and knowingly fails to relinquish such records and property.” Surprisingly, there is no equivalent statute for HOAs, except if that director was removed by way of recall.

So today, pomp and circumstance and tradition will rule the day and like clockwork, one administration will hand off to the incoming administration. And in our community associations, no doubt tradition is likely to continue as well. Perhaps that’s a rare example of where the government works better than we think.


Eric is Board Certified by The Florida Bar in Condominium and Planned Development Law.

Since 2009, Eric has been the host of Condo Craze and HOAs, a weekly one-hour show airing at 7 p.m. each Thursday on YouTube. This show allows viewers to engage in live chats with Eric and other participants but also enables a broader audience to access free advice, making valuable insights more widely available.

See: www.condocrazeandhoas.com

Eric is the first attorney in the State of Florida that designed a course that certifies condominium and HOA residents as eligible to serve on a Board of Directors and has now certified more than 20,000 Floridians all across the state. He is certified as a Circuit Court Mediator by The Florida Supreme Court and has mediated dozens of disputes between associations and unit owners. Eric also devotes significant time to advancing legislation in the best interest of Florida community association members.

 

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ASSOCIATION BUDGETING FOR DUMMIES

ASSOCIATION BUDGETING FOR DUMMIES

ASSOCIATION BUDGETING FOR DUMMIES

by Steven J. Weil, PhD, EA, LCAM, Royale Management Services, Inc.

A “dummie,” in this case, is a first-time association member and/or someone with little or no association budgeting experience who wants to know more about how and why the budget is created before they vote on it.

 

Bookkeeping sfpmaIs it really necessary to go through all that work year after year?

The first answer is, yes, because it’s the law. Florida law (718.112 (2) (f) 2) requires that annual budgets be prepared and, further, that reserve calculations be made by using a formula that estimates useful life and replacement cost.

The real answer is that the budget is a tool used by the association’s board to determine how much owners will be required to pay in maintenance costs for the coming year in order to keep the association financially stable.

The budget is a financial plan, a guide; but the process is an art, not a science. That’s why it’s important to leave room for unplanned expenses. A shortfall may result in an assessment, which will not make anyone happy. The only thing owners hate more than a maintenance fee increase is a special assessment that is necessary because the budget does not adequately cover the ongoing operating and maintenance costs. The tricky part of the process is to balance what is required with the often competing interests of those who want the lowest possible increase with those who are willing to pay more for better services, better amenities or other improvements.

There are two parts to every budget: the operating budget and the reserve budget.

• The operating budget should include all the necessary regular and recurring expenses that are expected in the coming year, no matter how small, such as repairs, maintenance, payroll, utilities, supplies, insurance and administrative costs.

• The reserves are designed to accumulate funds for major ongoing repair and replacement.
Statutes make it mandatory that reserve budgets first include estimated expenditures for roof replacement, building painting and pavement resurfacing at a minimum.

 

Aside from what the law requires, a good reserve budget also covers other large capital items that will wear out and need to be replaced over the life of the association, such as: elevators, windows, common area air conditioners, docks, generators, et al.

Projected estimates take into consideration the cost to replace each item, prorated over the years of its estimated life. A common mistake in estimating this value is the failure to take into account the rise in replacement costs that occurs over time.

Reserve funds cannot be used for purposes other than those intended without a majority owner’s vote of approval in advance.

 

 

How do you build a budget that works? The big secret is to start months before your current budget year ends!

  1. Step one is the information-gathering process, including a review of long-term contracts, upcoming expected maintenance and repairs, details of possible fee increases and a “wish list.” This time-consuming step includes getting quotes from vendors, examining recurring contracts for things like insurance policies, lawn and landscaping, trash removal, etc. Sometimes closely-scrutinized contracts can be renegotiated to save money. It’s also important to use caution when reducing maintenance and repairs numbers to delay an expense outlay. That could result in increased costs in the long run.
  2. Step two is to compare and, using a spreadsheet or special budget software, enter into the appropriate columns the year-to-date income and expenses — projected through year end — with the budget for the current year, to review for increases, and show the percent of difference.

  3. Step three: compare projected expenses for the coming year with “other” income (non-assessed) — such as laundry income, application fees, clubhouse rental, dock rental and any other items for which the Association collects fees other than maintenance fees.
    Using those figures, it is then possible to calculate the maintenance fees needed to fund the budget for the coming year. These required maintenance fees are calculated by subtracting the total projected “other” (non-assessed) income from the total projected expenses. This number is then allocated by the formula shown in the association documents. (The number is often based on the number of units or on square footage.)

According to the Statutes, owners may petition the Board if it adopts a budget where assessments rise more than 15% over those for the prior year. The budget must be in keeping not only with the State Statutes but also with the association’s documents, which may be more stringent.

Final approval by the board where the proposed budget is adopted must be done at a properly noticed budget meeting. A notice of this meeting, along with a copy of the proposed budget, must be sent to all owners at least 14 days prior to the meeting. Only association members may vote to waive or reduce the budgeted reserves through full or partial funding.

Failing to fund reserves at all puts everyone’s future at risk. If owners can’t afford the monthly cost how are they going to come up with the money when the roof, elevator or other capital component needs replacing? Often this is done by borrowing, making monthly maintenance payments higher because of what is required to pay back a loan, creating a double whammy of current debt repayment for past depreciation and creating an excuse not to meet current obligations. In some buildings this can create a death spiral.

 

 

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ROUTINE INSPECTON IS THE FOUNDATION UPON WHICH ALL GREAT MAINTENANCE PLANS ARE BUILT.

ROUTINE INSPECTON IS THE FOUNDATION UPON WHICH ALL GREAT MAINTENANCE PLANS ARE BUILT.

  • Posted: Jan 11, 2025
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Managers here is a maintenance checklist to get the ball rolling? We’ve created just the one to help you identify problem areas before they reach critical status.

Preventive Maintenance is Key, A good manager should get out of the Office and walk the property, get your hands dirty, take action on any problem or the start of a problem you see. This way you will not have a major problem later.

SRI Consultants has come up with a great checklist for you to use. DL it below.

Sign up for your FREE 3-page property maintenance checklist now http://ow.ly/M7YV50IITeO
And make sure to reach out when you require detailed inspections and repair recommendations by a licensed engineer (Hint: 30-40-50-year surveys). We look forward to your call!

Ask our AI about 4D

Do you have questions about Florida’s building safety legislation, Senate Bill 4D? Just enter your query in the textbox  and click “Send Query”. For example, try asking, “What is the Florida Senate Bill 4D?”. This AI tool is experimental and provides no warranties regarding the accuracy of its results. Use at your own risk.

AI gets smarter with every Q&A asked.  it will take time to have every query become available. Try it out. 

This AI tool is experimental and provides no warranties regarding the accuracy of its results. Use at your own risk.
Contact SRI Consultants at office@sriconsultants.net or call (561) 372-1290

 

 

 

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Condo HOA Loans: We can assist you in obtaining the necessary funds for Projects, Reserves, or Cash Flow.

Condo HOA Loans: We can assist you in obtaining the necessary funds for Projects, Reserves, or Cash Flow.

  • Posted: Jan 06, 2025
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Condo HOA Loans

We can assist you in obtaining the necessary funds for Projects Reserves or Cash Flow.

Your Trusted Community Association Financial Resource

 

Don’t go it alone. Whether your Community requires Conventional or Private Lending, CondoHOALoans can assist you in obtaining the necessary funds for Projects, Reserves, or Cash Flow.

When your Community Association works with our Law Firm to facilitate and secure financing, your Community will also have the optional benefit of receiving 100% FREE Delinquent Account Collection Services.

Not sure if financing is right for your Association? Download the Association Funding Options Infographic and take our Free Financial Health Survey to find out.

 


Take the Free Financial Health Survey

Completing this Survey will provide you with a written report you will be able to immediately download upon completion.

Take Our FREE Financial Health Survey

 


Association Funding Options

Getting started with CondoHOALoans is easy.

We’ll help your community identify funding resources and lending options for all of its financial needs. Our Legal Services to your community do not end at the successful closing of your loan with the Lender of YOUR choice. As a valued client of Katzman Chandler, you will have the option, but not the obligation, to have ALL future delinquent accounts collected for FREE.

 

The Condo Building Maintenance Crisis in Florida

As a consequence of hurricanes, business cycles, and fluctuations in the real estate market over the last 20 years, financial distress has been caused to those who live in Community Associations as well as the Communities Association entities themselves.  There presently exist hundreds (if not thousands) of communities whose stories can be illustrated by the timeline below.

Many of these communities presently have underfunded budgets, inadequate cash flow, and lack adequate reserves to accomplish necessary preventative maintenance and actual present maintenance needs. Overall, Boards are starting to realize that there is a lot to do, with little or no money to do it.

 

CondoHOALoans is the best solution for customized, competitive lending options.
Download the Infographic to learn more.

(833) 427-3863

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Proposals from Vendors for the yearly budgets, here are some of the things to consider

Proposals from Vendors for the yearly budgets, here are some of the things to consider

  • Posted: Jan 06, 2025
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As Board Members are asking for Proposals from Vendors for the yearly budgets, here are some of the things to consider.

BY ROYALE MANAGEMENT

Budgets take time for any Condo and HOA Community, each year many of the services paid for by these associations come under review at budget season. While its nice to think about cost savings we feel it is much more important to look at workmanship, licensing, scope of work and then Costs. SFPMA and our Members are here for every community, on our Directory finding everything from Services to the businesses that keep your operations up and running to the Legal Experts safely protecting Condo and HOA’s from disputes and Litigation.

Search our members directory, Find a Company Ask for and  Request an RFP – Request for Proposal for your buildings Budget.

 

HERE IS A LIST OF THINGS NO VENDOR CONTRACT SHOULD CONTAIN:

1) An automatic renewal clause. While it’s ok for an agreement to continue on a month to month basis it’s wrong to saddle future board with an obligation to track and cancel an agreement on a certain date or between certain dates to keep it from automatically being extended for an additional term.

2) A right of first refusal. This allows an existing vendor to match the price and terms of any new vendor proposal and thereby force the association to keep them. Most often an association gets proposals from new contractors because they are unhappy with more than the price and terms and giving a vendor a right to stay because they agree to match price and terms, does not solve the problem and can only lead to litigation.

3) Contracts with unnecessarily long terms. While a vendor that has upfront cost for things like equipment like a laundry vendor bringing in new equipment who needs to recover the equipment cost agreement terms should be kept as short as possible. Five years might be ok for the laundry contract but would not be for a landscaping contract in this case a one year term would long enough.

4) Cancellation only for “cause” clause. Proving cause only makes the lawyers richer and can be hard to do. The best solution is to build in a “cause free” ability to cancel with a 30-day notice.

 


 

Royale Management Services, Inc

Phone: (954) 563-1269

Full-service, CAM (Community Association Management) licensed, residential property management company, specializing in management, consulting and accounting for Condominium Associations and Home Owners Associations.

“The expansion into Community Association and Home Owner’s Association management was a natural move after a number of our clients serving on condo boards asked for our help with their associations accounting, budgeting and management, due to increasing operating cost and sloppy accounting records maintained by their current bookkeepers and managers.”

 

Find us on Facebook: https://www.facebook.com/RMSCondo/

Learn more on our Website:  http://royalemanagement.com/

Find us on SFPMA Members Directory

 

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Loans and Borrowing Money – What Community Associations Need to Know

Loans and Borrowing Money – What Community Associations Need to Know

  • Posted: Jan 03, 2025
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Loans and Borrowing Money – What Community Associations Need to Know

The video is ready – if you missed the webinar…watch the video now.

by Becker

There is a lot of confusion when it comes to obtaining a loan as a community association. This webinar is intended to clear the confusion and provide you with the necessary tools to obtain a loan.

You will learn:

  • What is and is not collateral for a community association loan
  • What type of loan documents to avoid
  • The borrowing process from beginning to end
  • When to get your attorney involved
Becker - Mark D. Friedman
Mark D. Friedman
SHAREHOLDER
Becker
mfriedman@beckerlawyers.com

Watch the Video !