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Find Blog Articles for Florida’s Condo, HOA and the Management Industry.
By Eric Glazer, Esq.
Prior to July 1st, 2021 if a condominium dispute arose, the parties were forced to first arbitrate the matter before the Department of Business and Professional Regulation. The law has now changed and reads as follows:
(a) Before the institution of court litigation, a party to a dispute, other than an election or recall dispute, shall either petition the division for nonbinding arbitration or initiate presuit mediation.
As you can see, now the plaintiff has a choice to start the matter in arbitration or mediation. So which one do you choose?
If you decide to go to arbitration, your case will be assigned to an arbitrator in Tallahassee. The arbitrator will read the briefs, hold hearings and ultimately enter an order. Someone will win and someone will lose. The loser will pay the winner’s attorney’s fees. The loser can then file in court for a trial de novo. In effect, it’s an appeal of the arbitrator’s order and the case starts all over again. The winner of the trial de novo gets their attorney’s fees and costs from the loser, including the arbitration fees.
So….the risk in going to arbitration is that if you lose, you may wind up not only paying your lawyer, but the other side’s lawyer too.
The alternative is to mediate the dispute. I have been certified since 2007 as a Circuit Court mediator. I truly enjoy mediating cases and helping the parties resolve their disputes. At mediation, the parties appear with their attorneys. The mediator explains that today is a good day to settle the case on mutually agreeable terms, rather than leave your fate up to a judge or jury. If an agreement is reached, it is enforceable in a court of law. The mediator allows the parties to make opening statements, then separates the parties and goes back and forth trying to achieve a settlement.
There is very little risk in going to mediation. There is no “winner” or “loser” at mediation, so neither party has to worry about paying the other side’s attorney’s fees. The parties split the cost of the mediator.
When I act as a mediator, I explain to the parties that neither side will get everything they want today, and that if at the end of the day both parties feel a little miserable, I probably achieved a fair result.
Tags: Board of Directors, Condo and HOA Laws, Elections, Management News
Many of the old condo buildings in the State of Florida are facing serious structural repairs that will cost millions of dollars. And – from what I hear from many owners – most of these buildings have no reserve funds that will cover even most of the cost of these structural repairs.
But these repairs have to be done if the building doesn’t want to face the same fate as the Champlain Towers South in Surfside. And you can be sure that building departments will now push the issue of certification requirements.
That begs the question: How are these associations are paying for these very costly repairs?
The smart associations took care of fully funded reserves, but as we have seen, most of these associations are not really “smart!”
But having reserve funds may cause another problem: Big amounts of money are very tempting – and we have seen in the past that board members and CAMs can’t resist the temptation – and the money is gone when needed.
Asking for fully funded reserves require laws that protect these reserve funds and answers any scams and/or embezzlement with harsh punishments, not just a slap on the wrist. And that should go as well for board members who buy nice palm trees with the money that was in the roof reserve fund!
The other option to pay for these repairs are bank loans, an option available to most of these associations if properly done. But don’t forget: Owners will have to pay in the future monthly quite a lot of money to service this loan. Now owners are paying the money they didn’t pay in the reserve funds earlier – but now with lots of interest added. Smart move? Definitely not!
But the only other option to pay for these repairs is to levy a special assessment. That’s the worst of all options because these special assessments can be very huge, in the tens of thousands of dollars. Amounts many families living in these condos don’t have available – and the worst scenario will happen: FORECLOSURE! Families will be losing their homes. Is that the option you want to go?
CAMs – a CAM has no part in a board decision regarding the use of the reserve funds.
How about the responsibility of owners to look after their investment? It’s easy to point fingers at usually well-meaning but inexperienced boards.
Rather than pointing fingers left and right, how about encouraging owners to participate in a constructive manner?
And last not least – the people coming to Florida to buy a condo with the proceeds of their home sale should be aware that you get what you pay for. You pay 500 K for a waterfront two bedroom condo built in the 60’s and expect that is all it will cost you?
Tags: Board of Directors, Condo and HOA, Management News, Reserves
The post-pandemic return to work is fraught with challenges – from ensuring the physical and mental well-being of employees and the safety of the actual workplace to attracting and retaining an empowered workforce who successfully maintained productivity without coming into the office for an entire year. Becker Shareholder and employment lawyer Jamie Dokovna invited Becker Managing Shareholder Gary C. Rosen and Coworks International Founder & President Shirley Arline to discuss the future of work and how business leaders can help protect both their people and profitability.
“We all need to recognize that we are embarking upon an experiment, and we have to be openminded about the prospect of adjustments in order to do what’s right for our people and our organization,” said Rosen. “It is critical that whatever any organization does , it needs to be organic and natural to that organization.”
A recent survey¹ showed that 70% of all employees would like companies to normalize working from home and include it as part of a work-week that also featured a few traditional 9-5 in-the-office days. In the same survey, 20% of the responders said they’d be happy never coming back to the office.
“There are still quite a few apprehensions about how to manage in a way that allows employees to feel safe and comfortable,” said Arline. “There are genuine fears among employers and employees about potential exposure; the need for flexibility becomes overriding.”
While the EEOC has declared mandatory vaccination policies permissible (with exemptions being made for religious reasons or chronic health issues)², many companies are uncomfortable with that approach, opting instead to offer incentives – cash prizes for those who prove their vaccination, additional paid time off to get vaccinated – and to promote the value of vaccinations through education and anecdotal evidence provided by COVID-19 survivors or families of those who succumbed to the disease.
“We don’t want to lose good employees,” said Rosen. “We want to be responsive and flexible, but, as a business, we need to have a policy in place that people see implemented uniformly.” Arline continued, “Employers are trying to protect employees from contracting COVID and from other employees who do not want to be vaccinated.”
But safety of the workplace is not the only priority for employers.
“There is a lot of concern about the social and psychological adjustment of employees who have been out for quite a while,” said Arline. “We’ve had a significant increase in requests for EAPs to deal with the mental health impact of the pandemic.”
EAPs, employee assistance programs, are work-based intervention options designed to assist employees in resolving personal problems that may be adversely affecting the employee’s performance. EAPs traditionally assist workers with issues like alcohol or substance abuse; however, most now cover a broad range of issues such as child or elder care, relationship challenges, financial or legal problems, wellness matters and traumatic events like workplace violence. Programs are delivered at no cost to employees by stand-alone EAP vendors or providers who are part of comprehensive health insurance plans.³
“At the beginning of the pandemic, we had some employees who experienced acute stress, and I am very thankful that they reached out to our HR department,” said Rosen. “Sometimes small problems, if left unattended, can become larger issues and then migrate to crisis proportion. does its best to provide an outlet for people to speak to a psychologist or mental health professional with no stigma attached.”
In addition to physical and mental health concerns, employers are also facing disruptions in recruiting and retention of employees.
“ has become a big challenge for employers,” said Arline. “Candidates are asking about the COVID protocols in place, setting very specific terms under which they will consider employment with an organization. I’ve gotten complaints from employers about the fact that they are losing control of the recruiting process and it’s very much in the hands of the candidates.”
The 2020 lockdown has also changed the rules of retention, since that year provided employees time to reflect on the direction of their career and review their professional goals. Many have made the decision to choose a completely different field – a risk that most would not have considered pre-pandemic – or leave the workforce altogether. Pundits have predicted a ‘turnover tsunami’ for the end of 2021, and all businesses are evaluating how to avoid losing quality employees by striking the right balance between a flexible workday and a guaranteed work product or service.⁴
“There isn’t a playbook for the pandemic,” said Dokovna. “Nobody is ahead of anyone else; we’re all figuring this out in real time.”
Tags: Condo and HOA, Management News, Members Articles
As one of the first law firms in Florida to address the legal issues stemming from sea level rise, Becker is excited to announce its interdisciplinary Sea Level Rise Advisory Team which includes experienced and knowledgeable lawyers ready to assist our clients in preparing for the future.
Our multifaceted team is comprised of specialists at the forefront of this emerging area of environmental law. This includes attorneys and government relations professionals across our Land Use & Zoning, Government Law & Lobbying, Community Association, Real Estate, and Construction Law & Litigation practices.
Led by Ellyn Bogdanoff, the team provides a comprehensive range of services to address flooding and other impacts of sea level rise. In 2021, for example, Becker’s Government Law & Lobbying Practice was instrumental in helping to secure the passage of Florida’s “Always Ready” legislation which will provide more than $100 million every year to help Florida communities combat the effects of rising sea levels.
Flooding due to sea level rise is and will continue to be a big challenge, not just for those living on South Florida’s waterfront, but across the state. Local governments are realizing the significant impact of flooding and are combatting sea level rise by creating resiliency task forces and taking action to revise land use planning and zoning requirements and make upgrades to their stormwater infrastructure and sewage systems.
But it’s not only local officials that must have a plan to respond to rising seas, landowners, developers, condominium and homeowner associations, and everyone in between, must also be prepared for the impacts posed by sea level rise, and develop strategies to prepare their properties accordingly.
Becker’s Sea Level Rise Advisory Team is prepared to help clients mitigate damages from sea level rise, evaluate options to prepare for the short and long-term, and develop financially feasible adaptation strategies. To learn more, please visit FloridaRisingSea.com.
Tags: Board of Directors, Management News
Broward Condo & HOA Expo – Tuesday, October 5, 2021 Property Management Expo & Seminars Seminars: 9:00 am – 4:45 pm Exhibits: 10:30 am – 3:00 pm Sign up for the networking and educational event of the year! Get face-time with the industry experts, browse the latest products and services and learn how to save thousands on the management and maintenance of your condo or HOA. Registration is FREE for association managers, board members. Don’t delay!
Orlando Condo & HOA Expo – Wednesday, October 6, 2021 Property Management Expo & Seminars Orange County Convention Center-West Bldg Wednesday, October 6, 2021 Seminars 9:00 am – 4:30 pm Exhibits 10:30 am-3:00 pm Sign up for the networking and educational event of the year! Get face-time with the industry experts, browse the latest products and services and learn how to save thousands on the management and maintenance of your condo or HOA. Registration is FREE for association managers, and board members. Don’t delay!
Naples Condo & HOA Expo – Friday, October 8, 2021 Condo & HOA Expo & Seminars New Hope Event Center 7675 Davis Blvd. Naples, FL 34104 October 8th, 2021 Seminars 9:00 am – 4:30 pm Exhibits 10:30 am – 3:00 pm Sign up for the networking and educational event of the year! Get face-time with the industry experts, browse the latest products and services and learn how to save thousands of the management and maintenance of your condo or HOA. Registration is FREE for association managers, board members. Don’t delay!
Miami Beach Condo & HOA Expo – Tuesday, October 12, 2021 Property Management Expo & Seminars Miami Beach Convention Center Tuesday, October 12, 2021 Seminars: 9:00 am – 4:30 pm Exhibits: 10:30 am – 3:00 pm Sign up for the networking and educational event of the year! Get face-time with the industry experts, browse the latest products and services and learn how to save thousands of the management and maintenance of your condo or HOA. Registration is FREE for association managers, board members. Don’t delay!
Palm Beach Condo & HOA Expo – Thursday, October 14, 2021 Join us Thursday, October 14, 2021! Seminars: 9:00 am – 4:45 pm Exhibits: 10:30 am – 3:00 pm For one day only, the Palm Beach Convention Center will be packed with the latest products and services as well as an array of industry experts. It’s an unparalleled opportunity to make valuable connections and speak directly with local and national experts about the topics that are relevant to you and your property. Get legal insights, financial advice, communication tips, proactive management solutions and much more from some of the region’s top professionals. This one-day event will also give you a sneak peek at the latest design trends gracing today’s most prestigious developments, plus innovations in building and remodeling and the newest energy efficiency options. Register Today
Tampa Condo & HOA Expo – Thursday, October 28, 2021 Condo, HOA and Property Management Expo Tampa Convention Center Thursday, October 28th, 2021 Seminars: 9:00 am – 4:45 pm Exhibits: 10:30 am – 3:00 pm Sign up for the networking and educational event of the year! Get face-time with industry experts, browse the latest products and services and learn how to save thousands on the management and maintenance of your condo or HOA. It’s the ONLY event to bring everything you need under one convenient roof for a single, information-packed day. Registration is FREE for community association managers, board members, board presidents, active HOA members and industry professionals. Don’t delay… register for this one-of-a-kind event today! more >
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Changes in your life or lifestyle mean you should update your auto, home and umbrella insurance coverage. You may find you can save money by dropping unneeded coverage (say, for a child who has left for college) or that you need extra insurance (say, for heirloom jewelry you’ve just inherited)
Renovations to your main home or a new building on your property (say, a gazebo) can mean you’re underinsured and need to increase the value of the structures coverage on your home policy. This is especially important if you’ve put in a lot of money into renovation, or expanded your square footage
You need a policy review if you’ve bought (or inherited) any jewelry, fine arts, furs or collectibles such as wines, instruments, coins, guns or cameras. These are items you may want to list separately, or it may be cheaper to include them under a “collectibles rider.” You also need revisions if your collectibles have appreciated in value.
It’s hard to believe, but people forget to take old cars off their policies when they trade in one car for another. If you have any motorized toys, such as all-terrain vehicles, boats, or jet skis, make sure that your underlying auto or home policies, as well as your umbrella, cover your use of these.
If your teenager starts driving or you let an au pair or nanny drive your car, you must add him or her to your policy. Before you buy a car specifically for this new driver’s use, check the impact on your premiums. Some carriers will let you assign a young driver to a clunker, while others assume a young driver is using most valuable car in your garage, making it cheaper not to add another car.
If your kids go to college out of town, call your auto insurer–they’ll still be on your policy, but the policy’s cost should go down. If they move out permanently, make sure to take them off your auto policy.
If you transfer ownership of your house, artwork, a car or any other asset into the name of a trust, limited liability company or family limited partnership, you need to add the entity as an additional insured on your policy. If you’ve transferred the home you live in to a trust for estate planning purposes, you want both your name and the name of the trust on the policy.
No matter what’s going on in your life, you should review your insurance coverage at least once a year. The easiest time to do this is when the renewal notices come. Your insurer (or agent) will notify you of changes or “amendments” to your policies, for better or worse. Read that new fine print, as it may mean you need to take action.
DID YOU KNOW? Your homeowner’s insurance policy doesn’t cover flood damage. That requires a separate flood policy. Your homeowner’s policy could, however, cover other damage that is water related.
You visit your doctor for a yearly checkup… why wouldn’t you do the same with your insurance agent? An annual review of your insurance policies is recommended because your financial situation can change year to year. A review doesn’t have to be time consuming like most people think. If you haven’t been getting a yearly review, it makes sense to start now. There is little to be gained by carrying the wrong types or amounts of insurance and so much, potentially, to be lost!
Tags: Building Maintenance, Florida Rising Magazine, Insurance, Management News
I hate beating around the bush, so I want to get to the point. A financial crisis is coming and it’s
going to be a big one. It’s also going to hit those that can least afford it. It’s going to result in massive
amounts of foreclosures. It’s going to result in countless cases of elderly persons being displaced
from their homes. The worst part is, it’s absolutely avoidable but I don’t believe any legislator would
ever have the courage to float a bill to save the pending disaster.
I was at a meeting last night in a 55 and over condominium. Elderly owners were complaining that the pipes are getting
old, there are leaks, and they sometimes have to come out of pocket a few hundred bucks in order to clean up the mess in their unit
and/or repair that broken pipe. They are complaining about bills for a few hundred bucks and find it difficult to pay them because
their sole income is social security.
To state the obvious, there is no reserve account. There never will be. Generally, senior citizens don’t believe in reserving
funds for repairs that may be necessary a decade or two from now because they believe they won’t be here anyway. So, year after
year goes by, decade after decade goes by and there is never a reserve fund to fall back on should a major repair become necessary.
Think of how much building has gone on in the past 50 years. It is staggering. But the buildings are getting older. As the buildings
start to approach the 40 year mark or more, things start to break down and repairs become unavoidable. Concrete restoration is
incredibly expensive, and unavoidable. Replacement of pipes is incredibly expensive, and unavoidable. And the same goes for
electrical renovations and roof replacements. All unavoidable. Yet, so many people, especially seniors, are rolling the dice thinking
that none of these repairs will be necessary while they own the property. That may be true for now, but eventually, everyone rolls
a 7.
Like it or not, some form of reserves should be mandatory
and not subject to being waived. There, I said it. Let’s get rid of the
“life expectancy” formula the state says you should follow but nobody
does. It’s a joke anyway. We all know the truth that the life
expectancy of the roof somehow gets longer, the closer you get to the
original estimate of how long it was going to last. Five years ago it
had a five year life expectancy. Money is tight, so today it has a new
10 year life expectancy. Somehow, like fine wine, the roof got better
with age. We all know that happens, and it happens every day. So
how about we make things simple. Let’s just say every condominium
must contribute 10% of its annual budget to reserves for roof,
plumbing, electrical, structural and painting. It all goes into one pot
and it can be used for any repair necessary for those categories. It
can’t be waived. If however an association wants to contribute more,
they can.
If we implemented this, I’m guessing the average monthly
increase for most condominiums that are not already reserving funds
would be anywhere from $25.00 to $75.00 per month per unit. I know
that for some that increase is not easy. However, it’s going to be a lot
more expensive if any one of these inevitable repairs become
necessary and it’s time to pass a special assessment in the thousands
or tens of thousands of dollars. What do you think?
Tags: Assessments, Condo and HOA
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