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Pest Control for Construction Projects

Pest Control for Construction Projects

Whether you’re renovating an older-style building, or constructing entirely new, redesigning your building’s structure can be exciting. However, if the right precautions aren’t taken, new construction can also attract unwanted attention from pests.

To help prevent pest issues during construction and ensure your facility does not become home to pests once construction is complete, our member Scott Cooksey, Owner of Bug Thugs Pest Protection. Pest Control Specialist, explains how you can build pest management into your construction plans.

There are a variety of proactive measures your facility can take before, during and after the construction process to accomplish this, Let us explain:

BEFORE

hire-an-insect-control-service“Before construction even begins, it’s important to get two people on board: your pest management provider and your contractor. An experienced pest management provider can do more than prevent and manage pest infestations that pop up during construction….

“When involved from day one, he/she can also provide feedback on building materials and locations that will be the least attractive to pests, and help you build measures into your construction plan that will lead to a successful pest management program when the doors to your new facility finally open,” He Said.

 

Several tips your pest management professional may provide include:

  • Use non-cellulose building materials to deter termites.
  • Consider applying a preventive termite barrier to the property.
  • Use pest monitors to assess pest populations in the surrounding area.
  • Understanding which pest species will be a threat will help you determine what steps you need to take to deter them.
  • Understand geographic conditions.
  • Selecting a location for your facility near a water source might create additional pest pressures.
  • Sufficiently grade the property to prevent puddles from forming around the foundation.

Remember, moisture attracts pests like mosquitoes and termites. Even though your management team may be the ultimate decision maker, it will be up to your contractor to take the lead on pest management during his/her work.

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The Falcon Group Acquires Maxim Management Group

The Falcon Group Acquires Maxim Management Group

MIAMI–In July 2016, The Falcon Group completed its acquisition of Maxim Management Group, an industry-leading project management and owner’s representation firm in Miami, Florida. The recent acquisition advances The Falcon Group’s mission of providing full-service engineering, architectural and project management solutions to the multi-family residential, commercial and hospitality market sectors.

 

News The Falcon GroupAs part of said acquisition, Max Sadik joins The Falcon Group as a Restoration Specialist. He is an experienced business operator and certified general contractor in the State of Florida. “I am excited to bring my sales and management experience to The Falcon Group,” says Sadik. “And believe there is going to be great synergy between myself, the team and our clients moving forward.”

 

The combination of the two companies will increase the value The Falcon Group delivers to its client base. “We are very excited about our recent business venture, said Principal William Pyznar. “Adding the local project management and general contracting background to our already strong restoration engineering and management team will bring a deeper level of insight and service to our clients in Southeast Florida. We look forward to providing a focus on clear, constant, transparent project communication and value engineering to exceed the expectations of our clients, with long-term durability in mind.” 

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If you don’t hire someone to field these inquiries, you’ll have to do it yourself.

If you don’t hire someone to field these inquiries, you’ll have to do it yourself.

Vacation Management managers can be found on SFPMA.com

Vacation listing websites help you book renters but they can take up to 30 percent in commissions. While this may seem high, remember that each booking can involve dozens of inquiries for each renter. If you don’t hire someone to field these inquiries, you’ll have to do it yourself.

You probably don’t want to rely on a listing website alone for your marketing. If you do, you may be costing yourself a lot of rented nights each year. Here are some relevant facts from the Vacation Rental Property Marketing Blog about vacation rental owners’ marketing expenses:

Vacation rental owners spent an average of $1,150 per year marketing their properties in 2011.

Half of all vacation rental owners only use listing sites to market their properties. This group experiences annual average occupancy rates of 54 percent.
Vacation rental owners who combine listing sites with their own websites bump their occupancy rates up to 76 percent, on average.
94 percent of all vacation rental owners believe they could be doing more to promote their properties.

Let us help by listing your Vacation Rental Company with us: 

SFPMA has a Directory used by Thousands of Clients looking for the management services you provide.

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E-Mails and E-Mail Addresses

E-Mails and E-Mail Addresses

Who is entitled to the e-mail addresses of your association’s members? Are e-mails sent between board members part of an association’s official records? What about e-mails sent by a board member to the manager?

 

Only the e-mail addresses of unit owners who have either consented to receive notice by e-mail or have consented in writing to the disclosure of their e-mail addresses are subject to review during an official record inspection. Section 718.111(12), Florida Statutes, provides, with regard to unit owner e-mail addresses, that “[t]he association shall also maintain the electronic mailing addresses… of unit owners consenting to receive notice by electronic transmission. The electronic mailing addresses… are not accessible to unit owners if consent to receive notice by electronic transmission is not provided in accordance with [this subsection].” This topic was discussed in Cohen v. Harbour House (Bal Harbour) Condominium Association, Inc., Arb. Case No. 2012-02-3139 (Summary Final Order / Lang / June 29, 2012).

 

In the Cohen case, a unit owner requested a list of all of the e-mail addresses of the members, however did not receive such a list. The unit owner alleged that she was improperly denied the e-mail addresses. However, it was discovered that the association did not have consent from any members to use their e-mail for the purposes of receiving official notices nor did the association have written consent to disclose the protected information from any member. Therefore, the arbitrator held that “[b]ecause, under the statute, no unit owner has submitted his or her email address for notice requirements or consented in writing to disclosure of his or her email address, the [a]ssociation did not improperly deny access by [the unit owner] to its list of email addresses.”

 

In today’s instant world, e-mail allows us to express our thoughts at anytime, anywhere. It is so convenient that it is unavoidable for board members to use it to discuss association business. As the official records of condominium, homeowner and cooperative associations are subject to inspection with limited exception, the question often asked is whether e-mails, including e-mails between board members and between one or more board members and the association’s manager, constitute part of the association’s official records that are subject to inspection by the members.

 

Several categories of records, while still constituting a part of the official records, are not subject to a member’s inspection request. For example, attorney-client privileged correspondence, medical records, information obtained by an association in connection with the approval of the lease, sale or other transfer of a unit and social security numbers, just to name a few, are not subject to a member’s inspection request but still constitute a part of the association’s official records.

 

On March 6 2002, the then Chief Assistant General Counsel of the Department of Business and Professional Regulation (“DBPR”) issued an opinion which provided that “[c]ondominium owners do have the right to inspect e-mail correspondences between the board of directors and the property manager as long as the correspondence is related to the operation of the association and does not fall within the… statutorily protected exceptions… [The DBPR does not have] regulations expressly requiring archiving e-mails, but… if the e-mail correspondence relates to the operation of the association property, it is required to be maintained by the association, whether on paper or electronically, under chapter 718, Florida Statutes.”

 

In Humphrey v. Carriage Park Condominium Association, Inc., Arb. Case No. 2008-04-0230 (Final Order / Campbell / March 30, 2009), an arbitrator of the Division of Florida Condominiums, Timeshares, and Mobile Homes held that “…e-mails… existing… on the personal computers of individual directors… are not official records of the association… Even if directors communicate among themselves by e-mail strings or chains, about the operation of the association, the status of the electronic communication on their personal computer would not change. Similarly, an e-mail to an individual director or to all directors as a group, addressed only to their personal computers, is not written communication to the association.” The arbitrator reasoned that “this must be so because there is no obligation to turn on [the] personal computer with any regularity, or to open and read emails before deleting them.”

 

Simply stated, if one was to rely on the guidance cited herein, e-mails solely between board members, even a board majority, are not part of the official records, e-mails between the board and the manager are part of the official records and unit owner e-mail addresses are only subject to inspection where a unit owner has either consented to receive notice by e-mail or has consented in writing to the disclosure of his/her e-mail address. That having been said, it is in my opinion that e-mail communications that involve a board majority are still subject to the board meeting notice requirements already required by Chapter 718, Florida Statutes, more commonly known as the “Condominium Act.”

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Truant Board Members

Truant Board Members

Truant Board members
By: Mitch Drimmer, CAM

 

giving paperwork to new board members Most students by law they are required to either attend school or prove that they are being properly home schooled. In a very similar parallel the law in Florida requires that board members of HOAs and Condos attest in writing that they have read the governing documents of their community associations or attend a two hour board certification class. Both students and board members must either prove that they have gone to school or done their reading. The parallel ends here because when it comes to students that are either home schooled or go to accredited schools the government has standards. When it comes to board members in Florida there are no standards, and most certainly two hours of board certification or merely reading governing documents without requiring comprehension is a requirement without any measure of competency.

 

 

Without exaggeration there are billions of dollars of real estate assets that are in the hands of boards of directors. People’s homes, investments, security and lives are put into the stewardship of volunteer boards. It’s a democratic process but it does not guarantee the ability of those who are elected to govern your community association, and that is where the trouble begins.
Many associations hire community association managers who are required to take at least 20 hours of continuing education classes every two years and although it is a system that is wanting it does require that managers have a modicum of knowledge. Some management companies also have excellent in house educational programs and that is also very helpful. Having trained professionals manage communities may gong a long way, but only if they are allowed to practice their craft.
All too often it is the case that boards of directors do not understand what is required of them, and more times than not community association managers are too timid to stand up to a board of directors for fear of being dismissed and losing their jobs when the boards are out of order and need proper direction. It will never come to pass that the attitudes of board members will change and they will forever misunderstand that their job is to set policy, assume fiduciary responsibility, and insure that the managers they hire are doing a proper job. It is not their place to manage and run their community association albeit it is their right. There will always be boards of directors who over reach and interfere with licensed managers or take associations “self-managed.” So how do we address this quandary?

 

Volunteer boards of directors must do more than just volunteer one hour a month to sit at a meeting, they should assume to take the same CEU courses that are offered to managers. It is very fortunate that in Florida these Community Association Management CEU courses are given often, in many locations, and often for no cost. There are also many good community association schools that provide educational opportunities and any association who budgets and spends money will see a great benefit in return. A month does not pass by when a trade event is not presented in any given area in Florida without a complete curriculum of courses being offered for managers that board members are welcome to attend. From September through December dozens of these courses are offered at no charge to managers and board members by various organizations, trade event providers, and industry specialists. Educational opportunities also abound throughout the year but the season is more towards the end of the year.
There are no truant officers for board members and if they want to govern their associations properly they must realize that two hours of a board certification class is not near what they need. Without this education they are going to put their associations in harm’s way and eventually create costs and problems that could have been avoided. Classes and seminars for board members can easily be found in your area with a simple search on your home computer. I urge board members to take the time to come to class and get the education that they need to govern their own associations better.

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Rental real estate provides more tax benefits than almost any other investment.

Rental real estate provides more tax benefits than almost any other investment.

Every year, millions of landlords pay more taxes on their rental income than they have to. Why? Because they fail to take advantage of all the tax deductions available for owners of rental property.

Rental real estate provides more tax benefits than almost any other investment. Often, these benefits make the difference between losing money and earning a profit on a rental property. Here are the top ten tax deductions for owners of small residential rental property.

kr aTaxes logo & Michael

1. Interest
Interest is often a landlord’s single biggest deductible expense. Common examples of interest that landlords can deduct include mortgage interest payments on loans used to acquire or improve rental property and interest on credit cards for goods or services used in a rental activity.

 

2. Depreciation
The actual cost of a house, apartment building, or other rental property is not fully deductible in the year in which you pay for it. Instead, landlords get back the cost of real estate through depreciation. This involves deducting a portion of the cost of the property over several years.

 

3. Repairs
The cost of repairs to rental property (provided the repairs are ordinary, necessary, and reasonable in amount) are fully deductible in the year in which they are incurred. Good examples of deductible repairs include repainting, fixing gutters or floors, fixing leaks, plastering, and replacing broken windows.

 

4. Local Travel
Landlords are entitled to a tax deduction whenever they drive anywhere for their rental activity. For example, when you drive to your rental building to deal with a tenant complaint or go to the hardware store to purchase a part for a repair, you can deduct your travel expenses.
If you drive a car, SUV, van, pickup, or panel truck for your rental activity (as most landlords do), you have two options for deducting your vehicle expenses. You can:
deduct your actual expenses (gasoline, upkeep, repairs), or
use the standard mileage rate (56 cents per mile for 2014; 56.5 cents per mile for 2013). To qualify for the standard mileage rate, you must use the standard mileage method the first year you use a car for your business activity. Moreover, you can’t use the standard mileage rate if you have claimed accelerated depreciation deductions in prior years, or have taken a Section 179 deduction for the vehicle.

 

5. Long Distance Travel
If you travel overnight for your rental activity, you can deduct your airfare, hotel bills, meals, and other expenses. If you plan your trip carefully, you can even mix landlord business with pleasure and still take a deduction.
However, IRS auditors closely scrutinize deductions for overnight travel — and many taxpayers get caught claiming these deductions without proper records to back them up. To stay within the law (and avoid unwanted attention from the IRS), you need to properly document your long distance travel expenses.

 

6. Home Office
Provided they meet certain minimal requirements, landlords may deduct their home office expenses from their taxable income. This deduction applies not only to space devoted to office work, but also to a workshop or any other home workspace you use for your rental business. This is true whether you own your home or apartment or are a renter.

 

7. Employees and Independent Contractors
Whenever you hire anyone to perform services for your rental activity, you can deduct their wages as a rental business expense. This is so whether the worker is an employee (for example, a resident manager) or an independent contractor (for example, a repair person).

 

8. Casualty and Theft Losses
If your rental property is damaged or destroyed from a sudden event like a fire or flood, you may be able to obtain a tax deduction for all or part of your loss. These types of losses are called casualty losses. You usually won’t be able to deduct the entire cost of property damaged or destroyed by a casualty. How much you may deduct depends on how much of your property was destroyed and whether the loss was covered by insurance.

 

9. Insurance
You can deduct the premiums you pay for almost any insurance for your rental activity. This includes fire, theft, and flood insurance for rental property, as well as landlord liability insurance. And if you have employees, you can deduct the cost of their health and workers’ compensation insurance.

 

10. Legal and Professional Services
Finally, you can deduct fees that you pay to attorneys, accountants, property management companies, real estate investment advisors, and other professionals. You can deduct these fees as operating expenses as long as the fees are paid for work related to your rental activity.

 

 

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HOLIDAY CYBER SAFETY

HOLIDAY CYBER SAFETY

HOLIDAY CYBER SAFETY

 

What a beautiful time of the year when we celebrate Christmas, Hanukkah, or Kwanzaa with family and friends and do our best to give each person on our shopping list THE perfect gift. To find that perfect gift we can fight the traffic and crowds at the mall or save time and aggravation by shopping online. Let’s go with the online approach. To successfully shop on line it is important for you to be aware of cyber criminals and the inventive and aggressive methods they employ to steal your
money and identity, and there are many. What are some of the popular schemes? The Fraudulent Classified Ads or Auction Sales and Nondelivered Merchandise are two that are easy to fall victim to. Let me explain; the Fraudulent Classified Ads or Auction Sales is a scam where the seller post items that are stolen or is purchased with a stolen credit card. The Nondelivered Merchandise is a scam where merchandise is sold that does not exist. The buyer purchases items online which is never delivered. How do you avoid becoming a victim and totally ruining your holiday shopping?

Well, here are a few tips to best protect yourself:

 

● Get to know as much about the seller as possible. Start with a Google search paying
special attention ratings, comments or complains. Research the BBB, many scam “artist” are listed on the FBI web site at ( www.fbi.gov/scamssafety/fraud ) or research your states business licenses sitesFlorida residents can log on to www.sunbiz.org or myfloridalicense.com.

● It is best to play it safe and buy from reputable companies you are familiar or have done business with in the past.

● Avoid companies that do not have a physical address. No company is based in a post office box.

● Send an email to make sure it is valid and call the contact number to make sure the
company even exist.

● Don’t base your decision to do business with a company on their web site. It is easy to set up a flashy web site which is just that…flash.

● When possible pay with your credit card so you can dispute the charge if there is a
problem.

● Avoid dealing with foreign companies. It is almost impossible to verify the legitimacy or get a refund from companies not in the US.

● Never respond to special investment offers because there is a real possibility the
“company” is only after your banking information to seal your identity.

● Beware of price differences, for example a designer hand bag for $19.99 which sells at Macy’s for $125.00 is, in all likelihood, fake.

● The old saying: “If it is to good to be true, it is.” applied back in the day and still does today. Shopping online can really simplify your holiday preparations if it is done with caution and due diligence.

 

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Where did the Board Members go?

Where did the Board Members go?

Truant Board members
By: Mitch Drimmer, CAM

With September upon us its back to school for millions of American children, and by law they are required to either attend school or prove that they are being properly home schooled. In a very similar parallel the law in Florida requires that board members of HOAs and Condos attest in writing that they have read the governing documents of their community associations or attend a two hour board certification class. Both students and board members must either prove that they have gone to school or done their reading. The parallel ends here because when it comes to students that are either home schooled or go to accredited schools the government has standards. When it comes to board members in Florida there are no standards, and most certainly two hours of board certification or merely reading governing documents without requiring comprehension is a requirement without any measure of competency.

 

Without exaggeration there are billions of dollars of real estate assets that are in the hands of boards of directors. People’s homes, investments, security and lives are put into the stewardship of volunteer boards. It’s a democratic process but it does not guarantee the ability of those who are elected to govern your community association, and that is where the trouble begins.
Many associations hire community association managers who are required to take at least 20 hours of continuing education classes every two years and although it is a system that is wanting it does require that managers have a modicum of knowledge. Some management companies also have excellent in house educational programs and that is also very helpful. Having trained professionals manage communities may gong a long way, but only if they are allowed to practice their craft.
All too often it is the case that boards of directors do not understand what is required of them, and more times than not community association managers are too timid to stand up to a board of directors for fear of being dismissed and losing their jobs when the boards are out of order and need proper direction. It will never come to pass that the attitudes of board members will change and they will forever misunderstand that their job is to set policy, assume fiduciary responsibility, and insure that the managers they hire are doing a proper job. It is not their place to manage and run their community association albeit it is their right. There will always be boards of directors who over reach and interfere with licensed managers or take associations “self-managed.” So how do we address this quandary?

 

Volunteer boards of directors must do more than just volunteer one hour a month to sit at a meeting, they should assume to take the same CEU courses that are offered to managers. It is very fortunate that in Florida these Community Association Management CEU courses are given often, in many locations, and often for no cost. There are also many good community association schools that provide educational opportunities and any association who budgets and spends money will see a great benefit in return. A month does not pass by when a trade event is not presented in any given area in Florida without a complete curriculum of courses being offered for managers that board members are welcome to attend. From September through December dozens of these courses are offered at no charge to managers and board members by various organizations, trade event providers, and industry specialists. Educational opportunities also abound throughout the year but the season is more towards the end of the year.
There are no truant officers for board members and if they want to govern their associations properly they must realize that two hours of a board certification class is not near what they need. Without this education they are going to put their associations in harm’s way and eventually create costs and problems that could have been avoided. Classes and seminars for board members can easily be found in your area with a simple search on your home computer. I urge board members to take the time to come to class and get the education that they need to govern their own associations better.

 

MITCHELL DRIMMER, VP, CAM
Tel: 866.736.3069 ex. 804
Fax: 866.774-2997
e-mail: mitch@snapcollections.com
Web Site www.snapcollections.com

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What is “Transition or Turnover?”

What is “Transition or Turnover?”

  • Posted: Oct 20, 2015
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“Transition” is the term of art describing the multi-step process to transfer responsibility for the Community Association to the homeowners/unit owners.

Transition is a process, not an event. At the end of that process, control of the Community Association is ultimately turned over to the owners.

 

For condominiums, the Declaration establishes a “Period of Declarant Control” based upon statute. For property owners’ associations, the Declaration may establish such a period, but currently, the declarant control period is is not addressed by statute.

During the Period of Declarant Control, the Developer appoints members of the board of directors for the Association; hires and has contact with the Association’s management company; and is the architectural control committee. At the expiration of the Period of Declarant Control, the Developer resigns its board of director positions. The owners hold a meeting to elect a new board of directors comprised of owners. The Developer turns over the Association’s books and records, and relinquishes control of the Association to the owners.

How do we begin the transition process?

As transition nears, it is time for the Declarant and the owners to initiate discussions on the transition process, and for owners to become familiar with the governing documents. There are several suggestions to help get the process started in earnest. For example, owners can propose adding one or more homeowners to the Board prior to transition; can set up a transition committee or advisory committee; can schedule a community meeting to explain that control of the Association will soon be turned over to the owners; and can seek volunteers for the transition committee. Some of the owners may have experience and expertise in the issues the community may face, and these owners can be very helpful druing transition.

 

Conclusion

Transition requires a thorough review and understanding of all aspects of your Association, including knowledge of financial issues; maintenance and engineering needs; the need to transfer common area (in non-condominium associations); insurance policies and needs; management responsibilities; covenant enforcement; and so on. Without knowledgeable guidance from an independent attorney experienced in common interest communities, owners can be overwhelmed with the immense responsibilities. Start early with your transition committee and contact a knowledgeable attorney to begin the process with your association.

 

Stop us if you’ve heard this one before: You announce an HOA election providing proper notice, yet only a handful of owners show up to vote. You end up short of your quorum requirements, and you have to start all over again with your fingers crossed that next time, your luck will be better, and your election will be successful. Or instead, you hold your election, get definitive results—you think—but then the election gets challenged.
We can help you do better!  many community association lawyers who’ve devoted their extensive—and impressive—careers to solving the challenges HOAs face every day. You’ll learn from members valuable, workable tactics you can implement immediately to make your election process smoother, more successful, and less contentious.
You’ll learn:

1- How to determine the specific steps your HOA must follow to conduct proper elections
2- Details on the most common mistakes boards make from election start to finish, and the most likely challenges to your election—and how to nip them in the bud
3- Information to help you identify your quorum requirements and creative tactics to ensure you get a quorum
4- Common rules governing who can run for your HOA board, along with insights on the pros and cons of changing your eligibility requirements—and tips on how to do it if you decide you should
5- Suggestions for general rules your board may want to consider passing to make holding elections easier
6- Tips to provide effective notice—and undercut any attempt to unwind your completed election based on claims of insufficient or improper notice
7- What you must know about proxies
8- Techniques you can deploy on the day of the election to avoid on-the-spot glitches
Plus much more!
It’s just an hour of your time, but you’ll walk away much wiser and better prepared for your HOA’s next election.

 

 

contact KBRLegal.com They are the experts in Association Law in South Florida. The Courses they give monthly can help you with understanding what is needed as a board member and your community.

 

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DEVELOPER TRANSITION

DEVELOPER TRANSITION

Community associations are conceived by the developer who typically forms a non-profit corporation to own the land and amenities

 

In the case of condominiums, certain parts of the building exterior. Initially, the developer owns all of the lots or units in the association and has all of the votes; therefore, the developer controls the association. A board of directors typically consisting of the developer and other individuals professionally related to the developer is established to manage the affairs of the association including not only the physical attributes, but also the financial and administrative issues such as collecting owner assessments, holding the annual meeting, and enforcing the deed restrictions.

 

Early in the development process the developer, acting on behalf of the board of directors, may hire a manager or management firm and delegate much of the day-to-day operation of the association to this third-party manager. This seems to be where things get a bit confusing at times for not only the developer but for the homeowners and the manager as well. The management company often finds itself in a juggling act between meeting the desires of the developer while also acting in the best interest of their employer (the board of directors). The board has a fiduciary responsibility to make decisions and set policies that are in the best interest of the association and the manager is bound by contract to carry out the decisions and policies of the board. Sounds simple, but in the real world of community living and governance, misconceptions about the different parties’ roles and responsibilities grow right along with the community.

 

To clarify the roles that each party plays, you will find below a short list of the most common misconceptions about developer-controlled communities. Please keep in mind that the clarifications are based on typical scenarios and you should always refer to the governing documents for your specific community to obtain the most reliable answers.
Does the manager work for the developer? NO, Managers act at the direction of the entire board of directors, not the developer, one individual director or committee member (unless the board grants a particular individual the authority to deal with a specific matter). The management agreement between an association and a management company usually stipulates that the board should identify one person to act as liaison to the manager.
The developer pays the manager. Not so! Typically, the developer will subsidize or deficit fund the association until there are homeowners paying in sufficient assessments to cover the expenses. The association, whether funded by developer subsidy or owner assessments, pays the manager and all other contractors that perform work for the association. The board collectively decides on all such transactions.

 

The developer does not pay assessments. In some cases, the developer drafts the documents in such a way that it is exempt from paying regular assessments. With that get out of jail free card exemption, the developer assumes the responsibility for funding the budget until there are enough homeowners paying assessments to cover all of the expenses of the association. The board of directors (including the developer members) must set the rate of the assessment based on what each lot should pay – – assuming the community is complete and all lots were assessed.

 

The manager is the homeowners’ advocate. Well, not exactly. Although the manager is responsible for implementing the decisions and policies of the board, homeowners should have enough interest in their community to present their concerns to the board either in person or in writing. The best way to be heard is to submit to the management company in writing anything you would like passed on to the board. The manager does not vote on any board issues. Owners should attend board meetings to learn what’s happening in the association. Those who can’t attend meetings should read the newsletter, visit your community website or contact board or committee members for updates. If you are unaware of whether or not your association maintains a website, you should contact the manager or management firm.

 

The manager is responsible for choosing contractors. Keeping in mind that the management company itself is a contractor of the association, the board (with occasional recommendations made by the management company) tries to choose the best contractors for the association. The manager does not have direct control over the contractors’ actions and they are not responsible for poor performance. The manager is responsible for monitoring contractors’ performance and reporting problems to the board. The board is responsible for any subsequent actions. The developer is responsible for the quality and quantity of the amenities, replacement of defective components and addition of amenities during the development period. Once amenities are completed, they are turned over to the association for the purpose of upkeep, insuring, and use.

 

The developer is responsible for construction defects in individual homes. Only if the developer built the home is he responsible for defects or poor construction. The homebuilder is responsible for problems that arise relating to construction of the home, lot drainage and other issues involving an individual home within a community. In a single family development, this distinction is very clear; however, in a condominium project, the governing documents will detail those items that become the individual owner’s responsibility versus association responsibility.

 

To summarize, the management duties of a developer-controlled community should not differ significantly from a homeowner-controlled community. In each case, the manager works at the direction of the board of directors. The developer board just happens to be comprised of the same person(s) wearing several hats developer, director, committee member and association member. Both the manager and the board must work together and in the appropriate capacity that best serves the association and its entire membership. When these interests work in harmony, the community as a whole is strengthened.

 

We stand ready to assist our Community Association clients at every stage of a project. In the transition period, our attorneys consult with the newly-elected Board and facilitate compliance from the developer in turning over documents and payments owed to the Association. Our lawyers have successfully shepherded many Boards through developer transition, attesting to our many decades of experience.

 

FS 720.303(8) ASSOCIATION FUNDS; COMMINGLING.–
(c) Association funds may not be used by a developer to defend a civil or criminal action, administrative proceeding, or arbitration proceeding that has been filed against the developer or directors appointed to the association board by the developer, even when the subject of the action or proceeding concerns the operation of the developer-controlled association.

Florida Statutes 720 contains many provisions that are specifically valid for so-called developer-controlled associations, meaning associations that are not fully built out and the association board consists of members appointed by the developer. FS 720.303(8) clearly states that legal fees are the responsibility of the developer, as long as he/she controls the association. Admittedly, not everybody knows it, but a developer who hired a law firm to sue a homeowner for libel and/or slander and is otherwise involved in all kinds of lawsuits should take the time to confer with his law firm about specific provisions in FS 720.

 

DEVELOPER TRANSITION – FREQUENTLY ASKED QUESTIONS
Q: What is Developer Transition?
A: Transition (more commonly referred to as “turnover”) is simply the process in which the right to control the association shifts from the developer to the homeowners. Some homeowners mistakenly believe that “turnover” is the point in time they receive title to the buildings and common property and confirm that the developer has met all of its obligations. This is not the case. The transfer of property takes place as each home or unit is completed and sold. What is transferred at developer transition is control of the association.
Q: Why is Developer Transition significant?
A: Developer transition is an important milestone for a community. Following a successful transition, the homeowners are in control of their own community and can make all the decisions through their elected Board of Directors.
Q: When does Developer Transition occur?
A: For condominiums, transition or turnover begins when the developer has sold 15% or more of the total units. At this point, the homeowners are entitled to elect one-third (1/3) of the members of the Board. The homeowners are entitled to elect a majority of the Board three (3) years after 50% of the units have been sold, or three (3) months after 90% of the units have been sold, whichever occurs first. There are other statutory events that can trigger the transition, such as bankruptcy or receivership for the developer, which should be discussed further with legal counsel.
For homeowners associations (“HOA’s”), the homeowners are entitled to elect a majority of the Board three (3) months after 90% of the homes have been sold.
Q: Can the Developer require an earlier Transition date?
A: Yes. The developer may provide an early transition date in the community documents.
Q: For how long will the Developer be entitled to elect Board members?
A: The developer will be entitled to appoint at least one member to the Board provided the developer holds for sale at least five percent (5%) of the homes.
Q: My condominium association is ready for Developer Transition but nothing has happened. What happens next?
A: Within 75 days after the homeowners are entitled to elect a member or members of the Board, the association (as controlled by the developer) shall give not less than 60 days’ notice of an election for the members of the Board. The notice may be given by any unit owner if the developer-controlled association fails to do so.
Q: Must the homeowners accept Developer Transition?
A: Yes. When the homeowners are legally permitted to take control and control is tendered by the developer, the homeowners must accept operational responsibility.
Q: Is the developer obligated to turn over anything other than control of the Board?
A: Yes. At the time of transfer of control, the developer must deliver to the new Board, at the developer’s expense, all property of the association including, but not limited to, association funds, meeting books, original Declaration and bylaws, plans and specifications, insurance policies, agreements and service contracts and all warranties. The association’s legal counsel should also ensure that title to all parcels is deeded to the association, free and clear of liens. These items must be delivered within 90 days of the date that the homeowners are entitled to take control of the association. The association’s legal counsel can provide a comprehensive checklist of items that must be delivered by the developer.
Q: How do the homeowners confirm at Transition that the association’s finances are in good order?
A: The association’s financial records generated since the incorporation of the association through the date of turnover must be audited by an independent CPA, at the expense of the developer. The accountant determines if expenditures were made for association purposes and whether the developer paid the proper amounts of assessments.
Q: Following Transition, can the homeowners cancel or break agreements entered into by the Developer-controlled Board?
A: Yes. With the vote of 75% of the membership, a condominium association can cancel original contracts entered into by the developer for the maintenance, management or operation of the condominium property. This is significant because it allows the homeowner-controlled Board to make its own choices for management, vendors and other services such as television programming services.

 

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