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Keep Your FL Lake Clean and Problem-Free by SOLITUDE

Keep Your FL Lake Clean and Problem-Free by SOLITUDE

Addressing Major Lake Issues Before the Growing Season

The growing season refers to the time of year – typically the spring months – when aquatic weeds, algae, and toxic cyanobacteria (blue-green algae) begin to appear in the water. The timeframe can differ depending on the region of the country in which a waterbody is located and natural weather variations. But no matter where you live, nuisance growth may indicate imbalances in the aquatic ecosystem that were not addressed in the weeks and months leading up to this defining season.

Many property owners do not realize that the management of lakes and ponds shouldn’t end when winter weather arrives. In fact, it is a great time to reevaluate waterbody goals for the coming year and implement management solutions that are more difficult to apply when the water is being actively used for recreation, stormwater collection, or aesthetic purposes.

Prepare Your Lake for Spring: Here’s Where to Start

Typically, the off-season months provide a valuable window to complete long-awaited projects like shoreline restoration, mechanical hydro-raking, or dredging, and nutrient remediation. Each of these solutions can help support healthier water quality conditions and reduce the risk of major lake issues when the growing season arrives.

Prevent algae and weeds next growing season with these management tips:

Repair Shoreline Damage & Enhance Your Buffer Zone

Jagged, crumbling, exposed shorelines can endanger people working or spending time in and around the water. Degraded shorelines can also contribute to the accumulation of muck at the bottom of lakes and ponds, and even cause waterfront properties to “shrink” as earth collapses into the water. These conditions don’t occur overnight; rather, they are a result of prolonged wear and tear from recreation, wind and rainfall, nuisance wildlife activity, urban development, and poor landscaping practices.

If ignored, erosion can aggravate water quality imbalances that increase the risk of weeds, toxic algae, and other problems during the growing season. Restoring degraded shorelines well before this time will help ensure your waterbody starts off on the right foot come spring.

littoral-shelf-beneficial-buffer

Repair Erosion Damage with Bioengineered Shorelines

Cutting-edge bioengineering techniques using a durable mesh material have made it possible to safely restore the aesthetics and functionality of degraded shorelines while repurposing eroded earth. Depending on the size and scope of a project, this process may require significant downtime, so the fall and winter months are an opportune time to take advantage of this service.

Once installed, these bioengineered shorelines will provide many years of stabilization and erosion control, particularly when beneficial vegetative buffers are also maintained around the waterbody to filter pollutants from stormwater runoff known to provoke water quality imbalances.

  • Shoreline Erosion Repair Results

Remove Muck & Debris with Hydro-raking

Lakes and ponds are consistently inundated with eroded sediment and debris such as branches, leaves, lawn clippings, trash, and other detritus that create bottom muck containing highly concentrated nutrients as they decompose. Over time, muck levels can increase, reducing the overall depth and volume of the waterbody. Excessive build-up may lead to a host of problems during the growing season, including flooding, depleted dissolved oxygen levels, water murkiness, bad odors, fish kills, and increased weed and algae infestations.

It is possible to physically remove build-up using mechanical solutions like hydro-raking and dredging. Hydro-raking is often used for “spot treatments” in areas with disproportionate materials, such as stormwater pipes and dock areas. A hydro-rake is essentially a floating barge with a rake attachment that can remove up to 500 pounds of decomposing material in each scoop and deposit it on the shore for physical removal or repurposing during shoreline restoration projects.

Hydro-Raking Services

Restore Depth with Dredging

If build-up has reached more concerning levels, dredging may be required. Professionals choose from two primary types of dredging equipment based on the goals for the property – each can restore the waterbody to its original depth and volume, but may reset the ecosystem entirely. Conducting dredging far ahead of the upcoming growing season provides a window to begin implementing proactive solutions to ensure water quality is healthy and stable come spring.

The off-season is an excellent time to complete mechanical projects as they can both interfere dramatically with the use of the waterbody. Removing muck and debris that accumulated during the warmer months will also help reduce overall nutrient concentrations, providing less fuel for algae and weeds when the growing season arrives.

Balance Water Quality with Nutrient Management

Phosphorus and nitrogen are the primary nutrients responsible for the growth of excess weeds and algae and are found in both the water column and the bottom sediments. Naturally-occurring nutrient remediation products like Phoslock and Aluminum Sulfate (Alum) can be professionally applied to bind with nutrients, making them unavailable for uptake by weeds and algae. Other solutions like EutroSORB may be used to filter and physically remove undesirable nutrients from the water.

Nutrient remediation can be effective in the warmer months and, when implemented by licensed professionals, is low-risk for use around people and animals. However, conducting nutrient remediation services during the off-season can help prevent nuisance growth before it becomes a problem, allowing people to start enjoying their waterbodies sooner. It’s important to note that regions that experience more severe winters and freezing waters may not be candidates for off-season nutrient remediation services. A professional can help stakeholders determine the most effective time of year to apply nutrient remediation products.

Avoid Water Quality Issues This Growing Season

It can be confusing for stakeholders to know what their waterbodies need – and when – but it’s never too early or late to begin implementing these or other lake and pond management solutions. Ultimately, we share your goal of maximizing the use of your water resources throughout the year. By taking advantage of the cooler months to complete these impactful projects, stakeholders can avoid major water quality issues that the growing season is known for. Instead, they can focus on enjoying the water without looming threats of nuisance growth – and the complaints, safety concerns, and unexpected costs that come with it.

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Community Association Software Solutions for Condo, Co-Op, and HOA Management

Community Association Software Solutions for Condo, Co-Op, and HOA Management

Trusted by over 6,500 communities throughout the U.S. and worldwide, BuildingLink is the premier provider of  community management software solutions. BuildingLink leverages over two decades of innovation and experience,  offering 60+ intuitive modules to manage documents, maintenance, vehicle, keys, packages, amenity reservations, community communications and more! Managers love the functionality and service while residents love the convenience of our mobile app!

FULLY EQUIPPED WITH DOZENS OF TIMESAVING, AND INNOVATIVE FEATURES.

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BuildingLink’s suite of maintenance solutions ensures your property is running efficiently.

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Resident Experience

Elevate your resident experience with BuildingLink’s mobile, portal, and smart home features.

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Record-Keeping & Administration

Streamlined record-keeping, administrative tasks, and building details at your fingertips.

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Concierge & Front Office

From hyper-efficient package tracking to formatted incident reports and key management, all seamlessly managed with BuildingLink.

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Communications

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BuildingLink Payments

Our payments solution seamlessly integrates with many accounting platforms, ensuring a smooth resident payment experience. Residents can pay monthly account balances securely online with single sign-on.

 

Start Running a Better Community Today!

BuildingLink is the market’s undisputed leader in property management solutions, empowering customers through industry-leading technologies, extraordinary support and training programs, and the ability to tailor our solutions to fit their unique needs.

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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

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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How to Know When Your Fire Alarm System Needs Repair? by PREMIER FIRE ALARMS AND INTEGRATION SYSTEMS

How to Know When Your Fire Alarm System Needs Repair? by PREMIER FIRE ALARMS AND INTEGRATION SYSTEMS

How to Know When Your Fire Alarm System Needs Repair?

 If your fire alarm system starts sounding like a horror movie sequel, it’s time for you to take action.

Sure, being reminded of danger with sporadic false alarms might make for some good Sunday afternoon entertainment – but do you want your guests running out scared all the time? We don’t think so, which is why we’ve put together this guide on how to know when your fire alarm system needs repair!

Whether you need a new battery or just some help troubleshooting the cause of those pesky alerts, we have your back. Read on and prepare for peace of mind (and less screaming)

Premier Fire Alarms and Integration Systems Installation Division offers Miami’s best fire alarm systems repair. Our top-notch services help protect your family and business in a fire. Forget about unheard or unattended alarms, and let our experts monitor your system 24 hours a day, seven days a week!

When protecting your family and your property from fire, you must always keep your fire alarm system in good working order. Regular maintenance and system checks are essential to ensure your fire alarm functions correctly.

Here are a few signs that indicate your fire alarm system needs repair:

 

False Alarms

Various issues with the system components, such as a broken smoke detector, faulty wiring, or damaged sensors, can cause false alarms. If false alarms occur regularly, it’s likely time for your fire alarm system annual inspection.

 

Flashing Lights

Flashing lights on your fire alarm panel are an indication that there is something wrong with the system. Suppose these lights persist after performing the recommended reset procedure from the manufacturer. In that case, it’s time to call for professional assistance from a fire alarm service and inspection company in Miami Dade.

 

System Malfunction

If your fire alarm isn’t responding appropriately when tested or during an emergency, this could be evidence of a malfunction in one or more components within the system. It is also time to contact a commercial fire alarm company to diagnose and repair any malfunctioning parts or replace them if necessary.

 

Age of the System

Even if everything seems to be functioning normally, it’s important to remember that all electrical systems have an expiry date which varies depending on how often they are used and their quality.

If all other tests reveal no significant problems, but you know you installed your current system many years ago, consider replacing it with newer technology. Due to age, outdated systems may not provide adequate protection against fires.

A fire alarm installation in Miami-Dade County can help with this.

 

Contact Us Today!

By being aware of these signs indicating potential repairs needed for your fire alarm system, you can avoid any issues before they become severe emergencies.

Finding the best fire alarm systems repair company is the first step. They will come to inspect and diagnose all possible problems promptly and efficiently, so you don’t have to worry about exposing yourself to potential danger caused by faulty equipment!

Premier Fire Alarms & Intergration Systems is the best fire alarm systems repair company. We have modern and reliable methods and serve the entire Florida area. Please reach out to us to discuss our given services:

You can also consult us to get assistance for the following domains:

 

Fire Alarm Systems & Installation

WHEN IT COMES TO FIRE ALARM SYSTEMS & INSTALLATION, YOU CAN COUNT ON OUR EXPERTS TO METICULOUSLY DESIGN, INSTALL, MONITOR, AND MAINTAIN ALL THE CRITICAL SYSTEMS THAT KEEP YOU AND YOUR ASSETS SAFE.

Matt Haiman
President
Premier Fire Alarms and Integration Systems, INC.
430 Ansin Blvd suite M
Hallandale Beach Florida
(O) 954-797-7692
(F) 954-797-7289
(C) 954-638-5581
matt@premierfirefl.com
Members of SFPMA.com find them on our members directory of vendors for condo and hos’s for Florida’s Properties, Boards and Managers Resource.
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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.

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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“Condo Craze & HOA’s” Watch us live on YouTube with Eric Glazer

“Condo Craze & HOA’s” Watch us live on YouTube with Eric Glazer

  • Posted: Jan 12, 2025
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“Condo Craze & HOA’s”

Watch us live on YouTube with Eric Glazer

Sunday @11am

Eric Glazer graduated from the University of Miami School of Law in 1992 after receiving a B.A. from NYU. He has practiced community association law for more than 2 decades and is the owner of Glazer and Sachs, P.A. a five attorney law firm with offices in Fort Lauderdale and Orlando.

Eric is Board certified by The Florida Bar in Condominium and Planned Development Law and the first attorney in the State that designed a course that certifies both 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.

Mr. Glazer 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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Update: what happens if condos dont get the florida inspection. sfpma.com

Update: what happens if condos dont get the florida inspection. sfpma.com

What happens if condos dont get the florida inspection?
If a condo in Florida does not undergo the required inspection, the condo association could face significant consequences including: difficulty obtaining insurance renewals, increased insurance premiums, potential legal action from owners, inability to sell units easily due to disclosure requirements, and may be forced to levy special assessments on owners to cover necessary repairs identified in the inspection if they are not completed, potentially leading to financial strain for residents; ultimately, if structural issues are severe, the building could be deemed unsafe for occupancy by local authorities.

Key points about Florida condo inspections:
  • New legislation:

    Florida enacted strict laws requiring regular structural inspections for condos, particularly older buildings, following the tragic Champlain Towers collapse in Surfside.

  • Consequences of non-compliance:

    Condo associations that fail to get inspections done could face penalties, including difficulty securing insurance, higher insurance costs, and potential legal action from unit owners.

  • Disclosure requirements:

    Inspection reports must be disclosed to potential buyers, making it difficult to sell units if the building has not been inspected and repairs are needed.

  • Reserve funds:
    Inspections are often tied to the need to build up sufficient reserve funds to cover necessary repairs identified in the inspection

Update Jan, 13, 25
What is the new law for condo inspection in Florida?
Under the laws, all buildings occupied before 1992 must complete a milestone inspection by Dec.31, 2024. This is an examination of the building’s structural integrity by an architect or engineer. The requirement also applies to buildings at least 25 years old that are within 3 miles of the coast

In Florida, if your condo association fails to get a required “milestone inspection” done by the deadline, they could face legal consequences, including potential fines and penalties, as the law mandates these inspections for structural integrity, particularly for buildings reaching 30 years old and every 10 years thereafter; however, if you are actively trying to schedule the inspection and encounter delays due to factors like a backlog of engineers, you might be able to demonstrate “good faith effort” to avoid severe repercussions. 

Key points about Florida condo inspections and missed deadlines:
  • Milestone Inspection Requirement:

    Florida law requires most condominium buildings to undergo a comprehensive “milestone inspection” once they reach 30 years old and then every 10 years after that. 

  • Potential Consequences:

    If the inspection is not completed on time, the condo association could face penalties or legal action from the state or unit owners. 

  • “Good Faith Effort” Defense:

    If the association can demonstrate they were actively trying to schedule the inspection and encountered unavoidable delays (like a shortage of qualified engineers), they might be able to avoid severe penalties. 

  • What to do if you miss the deadline:
    • Contact the condo association: Immediately reach out to the association board to understand the situation and discuss next steps. 
    • Review the inspection requirements: Ensure the association is aware of the specific deadlines and necessary steps for the milestone inspection. 
    • SB 4-D increases the safety of Florida’s condominiums by requiring inspections for all condominiums and cooperative buildings that are three stories or higher. SB 4-D requires the following for condominiums and cooperatives:

      • Condominiums and cooperatives must conduct a Structural Integrity Reserve Study (SIRS) for buildings that are three stories or higher to ensure that necessary funding is available for any future structural repairs that may be needed. This study must be completed at least every 10 years after the condominium’s creation, regardless of the condominium’s age.
      • Structural milestone inspections are required for condominium and cooperative buildings of a certain age, depending on their distance from the coastline.
      • To increase transparency and accountability, all structural inspection reports and reserve studies are required to be part of the condominium association’s’ official record and must be provided to potential purchasers of a condo unit.Consult legal advice: If there are concerns about potential legal issues, consider seeking advice from a legal professional specializing in Florida condominium law.

       

What is Senate Bill 4-D?  -Some background:

SB 4-D increases the safety of Florida’s condominiums by requiring inspections for all condominiums and cooperative buildings that are three stories or higher. SB 4-D requires the following for condominiums and cooperatives:

  • Condominiums and cooperatives must conduct a Structural Integrity Reserve Study (SIRS) for buildings that are three stories or higher to ensure that necessary funding is available for any future structural repairs that may be needed. This study must be completed at least every 10 years after the condominium’s creation, regardless of the condominium’s age.
  • Structural milestone inspections are required for condominium and cooperative buildings of a certain age, depending on their distance from the coastline.
  • To increase transparency and accountability, all structural inspection reports and reserve studies are required to be part of the condominium association’s’ official record and must be provided to potential purchasers of a condo unit.

 

What is Senate Bill 154?

SB 154 revised the requirement for condominiums to collect reserves and allows a majority of voting residents to elect not to provide reserves or to provide less reserves than required. However, this legislation prohibits waiving or reducing reserve funding for repairs and maintenance of structural components identified in the SIRS.

Additionally, SB 154 refined the requirements of the SIRS to provide clarification on the items required in a SIRS and expanded who can perform a SIRS.

SB 154 allowed a specific type of condominium (multi-condominium with 25 condominiums or more) to provide no reserves or less reserves than required if an alternative funding method was approved by the Division of Condominiums, Timeshares, and Mobile Homes. The Division received funding to contract with a third-party to review alternative funding methods submitted to the Division for review and approval.

 

What is House Bill 1021?

HB 1021 increases transparency and accountability through changes to meeting requirements, voting, education for condominium directors, recordkeeping and reporting, and support from the Florida Department of Business and Professional Regulation (DBPR). Additionally, HB 1021 introduced criminal penalties for board members who act in bad faith, increased DBPR’s ability to address resident complaints through investigations, and established a criminal referral process to streamline accountability for individuals that have engaged in criminal activity.

What types of buildings or structures are excluded from the Structural Integrity Reserve study (SIRS) requirements?

The SIRS requirements do not apply to buildings less than three stories in height; single-family, two-family, or three family dwellings with three or fewer habitable stories above ground; any portion or component of a building that has not been submitted to the condominium form of ownership; or any portion or component of a building that is maintained by a party other than the association.

Who is required to do a Structural Integrity Reserve study (SIRS)?

A residential condominium association must complete a SIRS for every building in the condominium that is three stories or higher, as determined by the Florida Building Code.

When is the Structural Integrity Reserve study (SIRS) due, and how often does my association need to complete a SIRS?

Unit owner-controlled associations existing on or before July 1, 2022, must have a SIRS completed by December 31, 2024. A residential condominium must have a SIRS completed at least every 10 years after the condominium’s creation.

The deadline to complete a SIRS is December 31, 2024. When does my association have to start reserving for a SIRS?

If your budget is adopted on or before December 31, 2024, you may vote to waive or provide less than the required SIRS reserves with a majority vote of the total voting interest of the association. You will need to begin funding your SIRS reserves in accordance with the reserve study January 1, 2026.

If your budget is adopted on or after January 1, 2025, you may not waive your SIRS reserves and need to begin funding your SIRS reserves in accordance with the reserve study.

When does my association have to report to the SIRS?

Within 45 days after receiving the SIRS, the association must provide the division with a statement indicating the study was completed and provided to the unit owners.

Can a milestone inspection or inspection for a similar local requirement, such as a re-certification inspection, substitute a SIRS visual inspection?

An association that is required to complete a MI in accordance with section 553.899, Florida Statutes, on or before December 31, 2026, may complete the SIRS simultaneously with the milestone inspection (MI). However, in no event may the SIRS be completed after December 31, 2026.

If the MI required by section 553.899, Florida Statutes, or an inspection completed for a similar local requirement, was performed within the past 5 years and meets the SIRS requirements, such inspection may be used in place of the visual inspection portion of the SIRS.

What is the difference between a milestone inspection and a SIRS?

A milestone inspection is a structural inspection of the building, including the load-bearing elements.

A SIRS is based off a visual inspection of the items required in s. 718.112(2)(g), F.S. and is a budget planning tool that identifies components of a condominium that are the responsibility of the association to maintain and replace and includes a plan to fund future maintenance and repairs.

 

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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