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GET READY FOR SOME STICKER SHOCK By Eric Glazer, Esq.

GET READY FOR SOME STICKER SHOCK By Eric Glazer, Esq.

  • Posted: Nov 11, 2021
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GET READY FOR SOME STICKER SHOCK

By Eric Glazer, Esq.

In the last 24 hours I was told of two different association annual budgets going up massively for the coming year.  We are talking about over 35% increases in the budget.  Think about that.  If your assessments are already $600.00 per month, you probably can expect going to $850.00 per month.  If you’re already at $800.00 per month, you’re about to go over a thousand.

It’s actually worse though, on a smaller scale.  People that are only paying $400.00 per month will now be going to around $550.00 per month.  It’s going to hurt them the most.  It always hurts the poorer people the most.

Add this on to the rising costs of gasoline, food, utilities and insurance and we are looking at a real crisis coming up.  Just remember, we can also expect that The Florida Legislature will likely be passing laws this year making it impossible to completely waive the funding of your reserve accounts.  So, on top of everything we just mentioned, get ready for your assessments to go up even hire when you are forced to pay in advance for future repairs.

For those of you that have not started addressing your budget for next year yet, I would get busy immediately.  You’re fooling yourself if you think that by avoiding it, things won’t change.  They will.  Unfortunately, all of these causes are coming together like a perfect storm.  Thank heavens most people don’t have adjustable rate mortgages any longer because if they did and mortgage rates started going up, things would be even worse.

I’m telling you what’s definitely coming.  The question is…..are there any solutions to prevent these increases.  I don’t think there are.  What things can you cut from your budget to offset these increases?  What steps can you take to curb costs?  I’m open to suggestions but I just don’t see good things on the horizon.  I can tell you that at least in my office, it’s starting to feel like foreclosures and delinquencies are already on the rise.  How do we put the brakes on another foreclosure crisis?

 

 

 

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Cohen Law Group is proud to once again support The Leukemia & Lymphoma Society’s / Members Can you also help!

Cohen Law Group is proud to once again support The Leukemia & Lymphoma Society’s / Members Can you also help!

  • Posted: Nov 11, 2021
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Cohen Law Group is proud to once again support The Leukemia & Lymphoma Society’s (LLS) mission to cure leukemia, lymphoma, Hodgkin’s disease and myeloma, and improve the quality of life of patients and their families through our participation in the Central Florida Light The Night. Light The Night is LLS’s annual fundraising event and the nation’s night to pay tribute and bring hope to people battling cancer.
As you may already know, my daughter Madison is a blood cancer survivor. See her story by clicking on the video below.
Madison Cohen and Harvey Cohen share their touching story of survival and hope.
https://www.youtube.com/watch?v=CzRVNCoODEM
The Leukemia & Lymphoma Society is an organization that I continue to support because I know first-hand that they are saving lives and I hope you can help us save lives as well.
Cohen Law Group has set an ambitious goal to raise $10,000 for the Central Florida Light The Night. We truly value the partnership that Cohen Law Group, has developed with you. We view you as a partner with Cohen Law Group in the effort to make our communities healthier.
I am asking you to please make a contribution to help us reach our goal.
I am confident that you will join us in stepping up to the challenge. Your tax-deductible contribution (LLS Federal Tax ID: 13-5644916) will greatly enhance these collective efforts. We also invite you to join Cohen Law Group at this year’s Light The Night virtual event on Friday, November 19.

Please join us in supporting an organization dedicated to saving and changing lives.

You can make a secure online donation by clicking on the link to our Team fundraising page

Click Here To Donate!

I look forward to your support of our efforts. Thank you and have a great day.

 

It’s more than a slogan, it’s our firm’s mantra. We are zealous in protecting your rights. We offer 24-hour availability through our answering service. Call us today.
(407) 478-4878
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Community Association Meeting Guidelines by Concierge Plus

Community Association Meeting Guidelines by Concierge Plus

  • Posted: Nov 11, 2021
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Community Association Meeting Guidelines

by Concierge Plus

Very involved community associations often have large contentious meetings when there is a hot button issue.

We’ve created the following guidelines for meetings so everyone participating knows what to expect.

Association Pledge & Basic Meeting Protocol

It’s only a “meeting” if it is organized and a good meeting conduct is important regardless of purpose. There should be an opening statement by the chairman (or a selected member) as to the main purpose (topic) of the meeting.

The ground rules for the meeting; address the chair, the chair decides who speaks, and for how long.

Many community associations start their meetings with their Association Pledge & Basic Meeting Protocol. See an example below:

The Board encourages all to abide by this pledge of conduct: While we might disagree, we will be respectful of one another. We will direct our comments to the issues, avoid personal attacks and abstain from acts or remarks which may interfere with the work of association management, employees, support, and board officers.

Owners are asked to submit questions on topics before the meeting and the presiding hosts will answer those questions. Observers will be afforded 3-minutes per comment to add anything missed in discussion. Only agenda topics will be discussed.

With our File Sharing feature, you can securely store and share your Association Pledge document with permission-based access.

Questions for the meeting

Owners should be notified about upcoming meetings ahead of time either via your newsletter, community calendar or display screens installed in the elevators or/and lobbies. Owners should be able to submit questions before the meeting so they can be answered during the presentation. If anyone want to “add” something, they can ask unanswered questions or make a new point during the meeting.

You should always record the meetings and you should always prepare minutes.

On-Demand Webinar

We recently had a webinar with our friends at GetQuorum titled What It Takes to Run a Great Hybrid Meeting.

We shared insight on how to navigate the complex nature of hybrid meetings, and shared tips & tricks for more effective hybrid meetings.

 

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Understanding Your Lake “Where Did All These Weeds Come From?”

Understanding Your Lake “Where Did All These Weeds Come From?”

  • Posted: Nov 04, 2021
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Understanding Your Lake

“Where Did All These Weeds Come From?”

Aquatic weeds are a fact of life for us here in South Florida. Many of the plant species that plague our
waterways are not originally from this country. Most are brought here for the aquarium or water garden
markets and are inadvertently released into our lakes and canals by residents. Long warm summers, high
nutrient levels and an abundance of sunshine make our waterways an ideal breeding ground. The problem is
compounded because these foreign invaders left their natural enemies behind in their native regions. Florida
lacks the environmental conditions, diseases, insects, fish, and birds that kept these plants in check back in their
home countries. As waterway managers we face several challenges in dealing with these weeds. The E.P.A.
has very stringent regulations on what products we are allowed to use in the water which limits the options we
have available. Within the small group of herbicides we can use, every one doesn’t work on every plant. With
new weeds showing up all the time, there is a period of trial and error in order to find the solution to the
problem. Some plants have evolved resistance to the products we have, leaving us without an immediate
remedy. Certain herbicides require you not to use treated water for irrigation for a set period of time. If a
community depends on lake water for irrigation it may prevent us from using a product in that particular lake.
Large infestations need to be treated in portions in order to avoid throwing off the oxygen levels in the lake and
causing other problems. Just because a lake has not had a problem with weeds in the past does not mean it’s
immune. Community lakes are not closed systems and are shared by many residents. Problem plants can find
their way into lakes from dumped fish tanks, being flushed in with storm water, or even from boats and fishing
gear used in other lakes. Wading birds and migratory animals can carry weeds from site to site depositing them
in lakes as they go. Allstate Resource Management believes that educated consumers make the best clients.
We continue to share our knowledge with homeowners to help them understand the changes that occur in their
lakes and our efforts to manage them.
Author: Stephen Montgomery, Allstate Resource Management
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Traditional Collection Methods Versus the HOA Business Model

Traditional Collection Methods Versus the HOA Business Model

  • Posted: Nov 04, 2021
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Traditional Collection Methods Versus the HOA Business Model

The Collections Conundrum

Human interaction is the foundation of a good business, that’s a pretty standard assessment. But that interaction gets complicated in a business like a community association. It can be a very muddy concept–homeowners buy a house that comes with a way to try to guarantee property values for a marginal fee, but it isn’t always clear that this agreement makes them part of a larger business model. This complicated relationship can make difficult business practices, like debt collection, all the more painful.

Fabio Ades, owner of PMI Top Florida Properties, who manages Serenity Place IV Condominium, found Axela’s post-foreclosure process to be the key to uncomplicating this unique business relationship, and softening the blow of debt collection.

“Implementing Axela was seamless for my management team because it connected with our existing accounting system. The way Axela’s systems are set up just made things easier for us,” says Ades. “But more importantly, Axela helps our customers. Consistent collections keep up the health of the community and protect members’ assets.”

Traditional Collections in an Untraditional Business Model

Collections are traditionally a process regarded as heartless. It calls to mind thoughts of unending phone calls from aggressive debt collectors armed with threats of asset repossession and loss of livelihood. It creates a general feeling of uneasiness in just about everyone. Unlike other business collections processes, that lack of ease is typically felt on both sides of the table when it comes to collections in a community association.

“It’s hard for people to remember that it’s not Fabio calling to collect–it’s not the Community Association Manager. It’s not the Board Treasurer who’s the bad guy, we’re not the bad guys,” Ades said.

Unfortunately, that’s what homeowners see. They see the person they’ve made friends with, they see their neighbor, the grill master who lives two doors down, or the dog walker on the third floor. They’re being asked by friendly faces for money they’re struggling to make, and those friends and neighbors are just as unhappy to be doing the asking.

But that’s the job. And that job is made a lot harder with the knowledge that there isn’t a lot of wiggle room when it comes to acting on delinquency.

“Management companies frequently have regulations that make it hard to help homeowners,” Ades lamented.

Community associations have little to no flexibility when it comes time to collect on past due payments from a homeowner. This is often a four-step process:

  1. Send an initial courtesy letter to the owner about the unpaid fees, alerting the homeowner of penalty fines if they remain unpaid
  2. Send a second courtesy letter, again warning of penalty fines for unpaid fees
  3. Send a final courtesy letter requesting payment and warning of pending legal action
  4. Refer the case to an attorney to begin pursuing legal action, at cost to the association

When a lawyer is on a collections case and the bank forecloses, it’s game over. If the property is in a super lien state then the association will recover a pittance of what is owed and the attorney will advise the association to “write off” the balance. Also, the attorney will advise the association that they owe him/her for legal services.

All of this happens over the course of 60 to 90 days. For a homeowner struggling to make payments, that time flies by and often isn’t enough to get current on the account.

 

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Top Solutions & NEW Technologies for Aquatic Weed Management Webinar

Top Solutions & NEW Technologies for Aquatic Weed Management Webinar

  • Posted: Nov 04, 2021
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Top Solutions & NEW Technologies for Aquatic Weed Management Webinar

Aquatic Weed Management Webinar

Nuisance or invasive plants are one of the biggest issues lake and pond owners or managers face. When introduced into a non-native environment, invasive aquatic weeds can take over an ecosystem and even out-compete native beneficial plants. There are various types of invasive aquatic weeds and it’s important to know which species is terrorizing your waterbody so the best management approach can be determined.

Watch our free webinar recording to discover the top solutions and technologies for managing aquatic weeds. From drone technology and highly targeted herbicides to hydro-raking and mechanical harvesting, our aquatic weed experts discussed how to control and prevent the future growth of nuisance and invasive plants with these solutions. Watch to hear what our experts had to say during the Q&A.

Watch the recording today!

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Setting Realistic Expectations for Your Community and You in 2021

Setting Realistic Expectations for Your Community and You in 2021

  • Posted: Nov 03, 2021
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Setting Realistic Expectations for Your Community

As we head into the new year, we are all setting our expectations for what we want and how we will accomplish our goals in 2021. New years resolutions are something most people start off with high expectations but can occasionally fall flat if they aren’t realistic goals. Similar to how all community associations are different, the expectations that your board or owners have for the new year can be different. Management companies can provide support but really understanding what your needs are and how can your community partners help meet those needs is important. Before you choose a new management company or even if you only want to evaluate your current company, start first with determining what items are most important to your community. How does the management company handle those tasks?

~sfpma

Take a look at these common expectations and what to ask of them.

 

Get Everyone on the Same Page

The first thing to do is set a meeting where everyone can get together to ask questions and understand what you expect of management duties. This should include the homeowners as well so they know what the management rules are.

In the age of quarantining and more social distancing, perhaps this means meeting virtually to discuss these matters. It’s easier than ever to do this nowadays, but everyone needs to understand what their responsibilities are. If you have some new responsibilities going beyond what property managers know, be sure to get it in writing.

Amending agreements should always be done when everyone is available to discuss them. Once everyone understands their roles, it becomes a new contract everyone should have available to refer to physically or digitally.

And Please seek Legal help with any changes to your Docs going into 2021 – Find Legal Members of SFPMA on our Directory

 

Setting the Responsibilities of the Management Team

A lot of opinions are out there about what managers should do while working with your association. Consensus is they should focus on four areas:

  • Guide the board to fulfill legal requirements.
  • Make all financial decisions.
  • Work closely with the board on decisions.
  • Provide suggestions to the board based on experience.

In the case of legal requirements, it usually means the management company assures the board deals with taxes appropriately. And, of course, they have to make sure your association continues to operate legally, including living up to state civil codes and local statutes.

Financial decisions should involve complete transparency with your association to make sure money gets spent in the smartest possible ways.

The partnership angle means helping your board make sound decisions that benefit everyone involved. Because your board might change over time with new members, the management team should have all ability to adapt to those changes in communication.

Listening to suggestions from an experienced management team also needs top priority. They can suggest things your board overlooks based on dealing with past associations.

 

Methods to Help Eliminate Vacancies

Your association and the management team want as many low vacancies as possible. Allow the management team to take this on since they have experience in this area. However, communicating to them that it’s their responsibility needs doing early.

One of those expectations is management knowledge on how to take on marketing for your properties, particularly on social media. No management team is worth working with if they never have experience doing digital marketing to attract tenants.

They should also handle rent applications, screening, and lease signing processes and Collections for the fees not paid by owners

 

Working Together On Other Responsibilities or Concerns

Some things you and the management team have to work together on include maintenance and repair approval, management salary payments, property tax/utility payments, and insurance payments.

Other times, management teams think they have to take on things that are not their sole responsibility. Perhaps this relates to dealing with cars speeding down neighborhood streets, or solving crime issues. Those usually fall toward city responsibility, plus the police in the case of crime.

All these issues need addressing early so there never is confusion on which thing each group focuses on. Since the unexpected will always come up, everything needs mentioning in writing to avoid stalled communication issues when an emergency arises.

 

SFPMA – Our Members provide many Professional Services to Condo and HOA’s all over Florida. Learn and read our Industry Articles.

by Kimberly Sutherland Author

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Sanctuary Gardens – We are open to the public!

Sanctuary Gardens – We are open to the public!

  • Posted: Nov 03, 2021
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Sanctuary Gardens

Sanctuary Gardens specializes in providing exceptional landscape services and quality Installations. We are meticulous in detail, so that any residential or business property would appear at it’s finest. We would take you from the designing of your property all the way to the Installation of the Landscape. If you are a do-it-yourself we can help as well, our nursery carries a variety of different plants and landscape material.

Find us on the Members Directory –

Find us on Facebook –

Looking for Bromeliads???
Stop in today for really neat exciting bromeliads.
Bromeliad plants provide an exotic touch to the home and landscape bringing a sense of the tropics and sun-kissed climates. Growing a bromeliad as a houseplant is easy and brings interesting texture and color to the interior garden. Learn how to care for a bromeliad plant and you will have a long lasting unique houseplant that is low maintenance.
   
 

We are open to the public!

Monday – Friday  8:00AM to 5:00PM
Saturday – 8:00AM to 3PM
Fab Nunez
V.P
954-394-4625
Sanctuary Gardens
Come visit our garden center, we offer a wide variety of palms, plants, trees, and accessories. We always do our best to accommodate our clients in every possible way. Whether you are looking for garden accessories or ideas you’ll be sure to find it here. We have a live showroom where you can see the type of waterfalls we do, interactive portfolio, and intensive detailed pictures of our landscape design. If we do not have what you are looking for, we will try all of our sources to find it for you. We also offer delivery to many parts of South Florida.
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Report of the Florida Bar Condominium Law and Policy Life Safety Advisory Task Force

Report of the Florida Bar Condominium Law and Policy Life Safety Advisory Task Force

  • Posted: Oct 30, 2021
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Report of the Florida Bar Condominium Law and Policy Life Safety Advisory Task Force

The mission of the Task Force is to engage in information-gathering and fact-finding through the review  all aspects of Florida Condominium law, development , construction, association operations, and maintenance to determine if changes or additions to legislation and/or regulations could prevent or minimize the likelihood of another tragedy like the Champlain Towers South condominium collapse, or similar tragedies in the future.  The Task Force is not a decision-making authority and will not be investigating the cause of the Champlain Towers South building collapse

Download the PDF: Condominium-Law-and-Policy-Life-Safety-Advisory-Task-Force-Report-1

 

READ on the FL Bar’s Website

 

Click to access Condominium-Law-and-Policy-Life-Safety-Advisory-Task-Force-Report-1.pdf

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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SFPMA’s Reserve Funding for your Communities

SFPMA’s Reserve Funding for your Communities

  • Posted: Oct 29, 2021
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Reserve Funding 101

Reserve Funding for your Communities

A reserve fund is a special account for the long-term repair and replacement of commonly-owned property in a community association.

A good example of this is the roof of a condominium building. All of the unit owners in the building share ownership of the roof. Every 50 or so years, the singles and other items will need to be replaced. The condo association will set aside a specific amount of money each year to go towards replacing/repairing the roof.

When an association plans for a reserve fund, they call on trained experts known as reserve specialists. These assess examine every detail of the association’s common areas to determine their lifespan and condition. They also include factors such as inflation to determine the cost of replacement at the end of the item’s lifespan.

Finally, the last step is to determine how much money the association needs to set aside each year. There are three basic plans for reserve funding: baseline, threshold, and full funding. These determine how prepared the HOA or condo will be when the item’s lifespan is up.

Full funding offers the least amount of risk for owners. With full funding, the replacement item in question will be fully funded by the end of its lifespan. With threshold funding, the association plans to have a certain limit, say 50%, of the item paid for by the end of its lifespan. The up-side to this is cheaper dues. The down-side is that is puts the owners at a greater risk of reaching the end of the item’s lifespan without having the proper funds available to repair or replace it. Finally, baseline funding aims to keep the reserve fund above a $0 balance at the end of the item’s lifespan.

Whichever path the association decides to take, the funds needed are figured in the budget. A portion of the regular assessments paid by homeowners or unit owners goes towards the reserve fund. Some states require associations to maintain a reserve fund by law. Most of the mortgage loans on condos are underwritten by the Federal Housing Administration. The FHA requires that a minimum of 10% of the association’s budget be designated for the reserves. If an association is not allocating at least 10% of its budget, it loses it’s FHA certification. This will almost always have negative consequences for the unit/home values.

Aside from that, who really wants to buy into an association that isn’t planning ahead? That isn’t executing good judgement, and should be a red flag to potential buyers. Adequately maintaining a reserve fund will mean higher assessments over the course of time. However, this is much better than the alternative of a large special assessment. If you community association needs guidance when it comes to reserve funding, trust the financial experts at Clark Simson Miller. We’re not reserve specialists, but we have over 100 years of combined experience in the association management industry. We’ll be glad to schedule a consultation and assess your community’s overall financial health.

 

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ARE CONDO FEES BAD?

ARE CONDO FEES BAD?

  • Posted: Oct 29, 2021
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ARE CONDO FEES BAD?

by Steven J. Weil, Ph.D., EA, LCAM, President

Royale Management Services, Inc.

 

Your maintenance fees cover many of the same things you would need to pay for as a homeowner.

What’s included?   As a condo owner, it’s useful to know how your maintenance fees are determined. No one is profiting from these fees. They are determined by the board of directors who are elected by the owners and charged with responsibility for operating the association. They represent your share of the common expenses as agreed to in the governing documents.

What you pay is determined by estimating the costs for operation and maintenance for the budget year. These costs include controllable costs — those over which the board can exercise control, e.g., wages of association employees, improvements, along with the cost services offered to owners and residents — as well as non-controllable costs, e.g. insurance, water, garbage collection, electricity, repairs, and existing long-term contracts such as bulk cable agreements.

Each year the board and management review the prior year’s costs and do everything in their power to project the cost for the coming year. These costs become the budget’s expense line items; and once they are calculated, any income from other sources (such as laundry and outside rental income) is taken into account. The total projected expenses are then reduced by the outside income, and whatever is left becomes the maintenance for the coming year. After that, it’s a simple matter of calculating each unit owner’s share of this amount based on the formula set forth in the governing documents.

 

In many associations, non-controllable expenses make up the majority of the expenses, with insurance often being more than a quarter of the total expenses. Add to this, utilities (which varies), long-term contracts, and required repairs and upkeep, and you can see that the expenses the board can control can be limited often to less than 20% of the total expenses.

The board must also fully fund reserves based on the current replacement cost of reserve items. Reserves may not be waived or reduced by the board. They can, however, be reduced or waived by a vote of the owners. Reserve funding is added to the cost of the maintenance fees already calculated and becomes part of the regular maintenance payment.  Reserves cover the wear and tear on items with a useful life of more than one year, such as roofs, painting, and paving, along with other major items that will wear out over time.

Each association’s budget is different. Accordingly, maintenance fees generally reflect things that are unique to each association. For example, associations with 24-hour security personnel, bulk cable contracts that include the internet, and expensive-to-maintain lobbies will have higher maintenance fees than those that provide fewer services and amenities.

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