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S2E38 – A Tribute, Tough Truths, and Condo Realities (Aired 11/3/24)

S2E38 – A Tribute, Tough Truths, and Condo Realities (Aired 11/3/24)

578 views Streamed live on Nov 3, 2024

This week’s show is dedicated to Eric’s late mother-in-law, Linda, honoring her courageous five-year battle with cancer. We also dive into essential updates on Florida’s mandatory condo laws, and discuss the challenges of selling units amidst an oversupply. Plus, we spotlight PD Concrete’s impressive work and touch on the critical importance of voting in the upcoming election.

As always, we’ll be taking your calls on whatever topic you need answers to or whatever you need to get off your chest.

Call in with your questions & comments or ask them in the live YouTube chat! (717) 452-9378

 

Keep up to date with new topics for Condo and HOA Communities each week on Condo Craze & HOAs every Thursday on YouTube 

The next show:

Condo and HOA Elections: Are You Making These Costly Mistakes?

This Sunday on Condo Craze and HOAs, Eric and Karen dive into a critical topic for every Florida association: election season! With the national elections behind us, it’s time to focus on your community’s elections and ensure the process runs smoothly. We’ll cover the essential steps, from sending out the first notice 60 days in advance to handling candidate information sheets and voting certificates. Eric will highlight common mistakes—like incorrect deadlines, missing documents, and improper ballots—that could force costly do-overs.

As always, we’ll take your calls on any topic you need answers to, or anything you need to get off your chest live in the chat or call in at 717-GLAZER8. Don’t miss it.

 

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DOS AND DON’TS OF ELECTION CHALLENGES by Rembaum’s Association Roundup

DOS AND DON’TS OF ELECTION CHALLENGES by Rembaum’s Association Roundup

  • Posted: Nov 04, 2024
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DOS AND DON’TS OF ELECTION CHALLENGES

Rembaum’s Association Roundup

Pursuant to their relevant statutory provisions, election disputes that take place in condominium, homeowners’, and cooperative associations are subject to mandatory nonbinding arbitration before the Division of Florida Condominiums, Timeshares, and Mobile Homes (the “Division,” for short). It is referred to as “nonbinding” because the arbitrator’s order is not final until 30 days after its issuance, which provides time for either party in the dispute to challenge the decision to their local circuit court, which hears the case de novo (anew).

As you will read, not every election dispute will be heard by the Division. As a threshold matter of importance, the Division will not hear election disputes within 60 days prior to an election or 60 days after the election has taken place. In order to bring an election challenge, Florida Statutes require prior written notice to the other party of the dispute, where a reasonable opportunity to correct the alleged error is provided, and it is clearly expressed that if the alleged error is not cured, an arbitration action will take place. In a prior arbitration case, it was held that providing only 10 days to cure the alleged defect in a pre-arbitration notice was insufficient. Therefore, it is suggested to provide more than 10 days opportunity to cure the alleged election defect prior to filing an action for arbitration.

Interestingly, the general rule is that to have standing to challenge election results, arbitration action must be brought by a candidate or an individual who was prevented from being a candidate.  The Division has even held that a member who was not a candidate did not have standing to challenge the election results that other persons should have been declared the winning candidates. While these arbitration decisions are not binding precedent, they are instructive and, if nothing else, useful in evaluating the best course of action.

In the context of condominium election challenges, there are three flaws that are typically “fatal” to the association, if committed. They are i) a substantive or serious defect in the first notice of election, ii) the failure to include a timely submitted candidate information sheet in the second notice of election, and iii) failure to include the name of each eligible candidate on the election ballot. While each of these can potentially be timely cured in advance of the election, if not, then they likely lead to a successful election challenge.

For example, failing to mail the notice of election to one or more owners or the failure of the first or second notice of election to accurately state the street address of the meeting have been considered as “fatal” flaws. Also, the failure to include a timely submitted candidate information sheet or failure to include the name of a candidate on the ballot have also been considered as  “fatal” flaws. However, so long as the election is re-noticed from the second notice of election, including all of the candidate and information sheets and/or also including the name of all of the candidates on the ballot, then such fatal flaws can be cured in advance of the election. In these instances there would be no further solicitation of candidates, but rather a rescheduling of the night of the election itself by sending a revised and corrected second notice of election at least 14 days prior to the election which would cure that defect. This amended second notice should clearly state the reason(s) for having to send the corrected notice.

It is important to note that while condominium association elections are strictly construed in accordance with relevant Florida Statutes, homeowners’ association elections occur in accordance with their governing documents. Therefore, whether the above fatal flaws have applicability to a homeowners’ association fully depends upon the style of election set out within the governing documents.

Arbitrators with the Division have held that a new election will have to be scheduled if  in the governing documents there is included a requirement that candidates be full-time residents of the state of Florida or even reside in their unit full time and such requirements were enforced during the election. Therefore, there cannot be a residency requirement of any kind for board members. Similarly, arbitrators have held that associations cannot require candidates to complete a criminal background check or even execute an acknowledgment that they are not a felon.

Contrary to popular belief, the relevant Florida Statutes do not require candidates to be members of a community association in order to run for the board of directors (often, “membership” is defined in the governing documents as being an owner of a parcel within the community). However, such requirements can be set out in the governing documents; but if such a requirement is not in the governing documents, then the board cannot disqualify a potential candidate because he or she is not an owner or member. This means that without such requirements specifically set forth in the governing documents of the association, any non-member, including tenants and occupants, are qualified to run for the board of directors. Therefore, if you desire to avoid such a circumstance, you should consult with legal counsel for your association regarding whether such requirements exist in the governing documents; if not, then you should consider preparing an amendment for the community to approve to ensure that only members who are actual members/owners of the association are qualified to run and serve on the board.

As to the first notice of election, notwithstanding any strict requirements set out in the first notice of election regarding where potential candidates must submit their notice of candidacy, it is not sufficient to exclude a candidate on the basis of the candidate  delivering his or her intent to be a candidate elsewhere so long as it is reasonable to conclude the association actually received notice of such candidate’s intent to run for the board. For example, a specific address could be required to mail the intent to run form, but the fact that a candidate hand-delivered such notice to a board member or manager would likely not be sufficient grounds to exclude the candidate.

Through a variety of arbitration decisions, the arbitrators have made clear that if the violation at hand would not have changed the results of the election, then the challenge will fail. For example, an association that improperly excluded several ballots due to perceived flaws with the outer envelope, which in fact were later held not to be flaws at all and which if counted would not have overturned the otherwise valid election results if the ballots were later included in the total count, would not have changed the result.

In other instances where numerous violations combine to clearly affect the reliability of the election results, then an election challenge may be valid. For example, where unit owners are permitted to cast ballots without inner envelopes, at least one owner was permitted to retrieve his ballot and change it, and nobody verified signatures on the outer ballot envelopes and where at least one unit owner was allowed to cast a ballot after the polls had already closed, then cumulatively the election results were determined to be  no longer reliable and a new election was required.

While the Division has promulgated condominium election rules in the Florida Administrative Code, it has not yet done so for homeowners’ associations. Therefore, the body of condominium arbitration decisions can provide some guidance; but for the most part, when examining homeowners’ association election challenges, the arbitrators are required to consider the significance and totality of violations in their decision-making as to whether to void an election, or not.

At times, for reasons that really do not make any practical sense, some management companies when preparing a homeowners’ association election revert back to the condominium form of election with a first notice, second notice, intent to run, etc. rather than relying on the homeowners’ association governing documents, which have a completely different election style and where voting is by proxy or in person. Also, there are no requirements to declare candidacy in advance of the annual election, meaning a candidate could actually nominate himself or herself from the floor of the meeting on the election day itself. When management companies go on autopilot and use the condominium style of election contrary to the requirements set out in the homeowners’ association governing documents, then the arbitrators will likely require a new election to take place in conformity with the governing documents of the homeowners’ association.

A successful challenge of a homeowners’ association election often rests upon whether the alleged violation affected the outcome of the election. This once again is evidence that unless the alleged violation would have changed the outcome of the election, then the election challenge likely fails even if there were serious irregularities during the election process.

A few odds and ends are worthy of discussion as well. An active board of directors should not use the association’s pulpit for campaigning. Doing so can lead to a successful election challenge. However, an existing board member can certainly campaign on his or her own time and using their own means but not through the association or its website. If the association has not enforced use of voting certificates, then to do so without providing advanced written notice and an opportunity for the owners to comply could invalidate election results. Finally, if a valid election does not occur because either a quorum was not achieved or in the condominium context at least 20 percent of the eligible voters did not cast the ballot, then there is no obligation of the association to try again.

When bringing an election challenge is under consideration, ask yourself if the irregularity would have brought about a change in the outcome of the election. If not, then, think twice about bringing the challenge. In any event, it is worthwhile for an association concerned with its election process to consult with the association’s lawyer for a detailed conversation as to how best to avoid such problems in the future.

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Should Your Condo Association Adopt Online Voting? by Becker / BECKERBALLOT

Should Your Condo Association Adopt Online Voting? by Becker / BECKERBALLOT

  • Posted: Nov 04, 2024
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Should Your Condo Association Adopt Online Voting?

by Becker / BECKERBALLOT

Many associations are considering whether to adopt online voting (or “E-Voting”). Legislation took effect enacting Section 718.128, back in July 2015.  Florida Statutes, permitting condominiums, cooperatives and homeowners’ associations to conduct elections and other owner votes through the use of “an Internet-based online voting system.” This article will discuss how to do so and what the advantages are.

The first step is for a Board to decide if they wish to offer electronic voting to their members. Florida Statutes 718.128 requires associations to adopt a board resolution approving electronic voting before they can utilize this type of voting process. The resolution must determine the manner in which online voting will be conducted such as procedures, deadlines, opportunities to consent to and participate, or opt out. The resolution must be considered at a board of directors meeting on 14 days of notice. A copy of the resolution must be provided to owners.

 

The resolution must provide that:

All unit owners receive notice of the opportunity to vote through an online voting system prior to each election or other unit owner vote in which the association authorizes online voting;
The deadline to consent, in writing, to online voting must be no less than 14 days before the election or other unit owner vote;
A method to authenticate the unit owner’s identification to the online voting system;
A method to transmit an electronic ballot to the online voting system that ensures the secrecy and integrity of each ballot; and,
A method to confirm, at least 14 days before the voting deadline, that the unit owner’s electronic device can successfully communicate with the online voting system.

The first of these requirements will ensure continual notice under circumstances in which online voting is conducted on an ongoing basis, avoiding situations where new owners are unaware of their right to opt in, and the latter prevents issues arising from last minute consents, and protects against fraud.

 

The following are other significant requirements contained in the legislation:

The e-voting system must provide the owner with a receipt, including the specific vote cast, the date and time of submission, and the user identification.
The e-voting system must also produce an official record for the association identifying the specific votes cast on each ballot and the date and time of the receipt of each electronically submitted ballot. The association must then maintain this record.
Votes in an election of directors shall not be accessible to the association prior to the scheduled election. Failure to comply will void the election.

In associations where voting participation is an issue, online voting can greatly increase participation and generate enthusiasm for the voting process. Online voting can also lessen the risk of fraudulent elections. While the costs for use of online voting software are likely to exceed mail out costs in many associations, such costs can be mitigated over time, and associations have flexibility in determining whether particular meetings will utilize online voting (i.e. – it is not an all or nothing decision).

Associations choosing to move forward must take care to confirm that they are using a vendor that understands and complies with the technical requirements. Like all other vendor contacts, it is critical to discuss the terms with legal counsel, who can also determine whether the system to be utilized is compliant. As meetings approach where online voting will be conducted, the use of online voting will require certain additional disclosures and instructions to members in relation to the process. Contact an attorney with experience in condominium and homeowners association (HOA) law with any questions.

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Our industry has a few that we looked into: one comes out as a leader

BECKERBALLOT  

Today is the day you’ve been waiting for –BeckerBALLOT.com is LIVE! We have partnered with SHYFT digital to offer an easy-to-use, secure, electronic-voting solution for community associations across the state of Florida and beyond. It’s the same great software – only better!
What you can look forward to upon signing up:

  • Increase membership participation and significantly reduce the labor involved in tallying paper votes.
  • Members can cast their votes from the convenience of their home, office, or anywhere they have access to an internet connection.
  • Admins can tally votes electronically, making the process faster, more accurate, and less prone to human error.
  • Eliminate typical errors and judgment calls associated with manual paper votes.
  • Easily solicit opinions using our survey tool to make informed decisions for your association membership.

We now offer flexible pricing, as well as a survey feature when you sign up for annual unlimited voting. The survey tool allows you to poll your community association without conducting an official vote.

Also, did you know that if you become a Becker annual retainer client, you will receive, among other benefits, a significant discount on BeckerBALLOT?

 

 

 

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Want to take part in the decision making, step up, and run for the board. Learn about Boards how they function and How to Run Decision Making Meetings.

Want to take part in the decision making, step up, and run for the board. Learn about Boards how they function and How to Run Decision Making Meetings.

  • Posted: Nov 04, 2024
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Everyone has something to say about the Boards Decisions, but not many want to become a board member!

When an owner approaches me to complain about the decisions of the board of directors at his or her association is;  The First Question I ask is- “did you attend the meeting that decision was made at?” The Second Question is- “have you considered running for the board so that you can be part of the decision-making process?” All too often the answer to both questions is no. If you want to understand why your board makes the decisions they make and possibly influence those decisions the best way to do this is to attend the board meetings and comment on items you have knowledge or concerns about on the agenda. Want to take part in the decision making, step up, and run for the board. – by Royale Management Services

 

The vast majority of business decisions are made in meetings. While small decisions are made in all kinds of meetings, the more important decisions often get their own dedicated meetings.

There are different types of group decision making processes, and care should be taken to choose a process that best matches the situation. A decision making process can include group activities like information gathering and sharing, brainstorming solutions, evaluating options, ranking preferences, and voting on the final options. Below are the most effective ways of running decision making meetings.

 

Primary Goals for Decision Making Meetings

Goals for a decision-oriented meeting can vary a little based on the type of decision being made, but they are always centered on coming to a consensus about a future plan. It is important to remember that the goal of these meetings also includes planning how to best execute the decision that has been made.

Make the best possible decision

If a decision making process is flawed and dysfunctional, the decisions will be bad.

By involving a group in making a decision you can rely on collective intelligence; knowledge beyond what is possible with individual decision makers. Because each participant has unique information and perspectives, combining group information leads to more informed decisions. However, it is important to use meetings designed specifically for group decisions efficiently, to not waste the group members’ time.
If all planning decisions were made by one person, not only would the choices be uninformed, there would also be little unity around team goals and direction.

Planning for execution

When individuals feel that their opinion has been considered in the group planning, they are more likely to embrace the decisions and work to carry out those goals.

Most discussions of decision making assume that only senior executives make decisions or that only senior executives’ decisions matter. This is a dangerous mistake.

Participatory decision making leads to increased team productivity and likelihood of goal execution, because team members feel ownership and responsibility for the decisions made.
Addressing both short term and long term goals at your decision making meetings is a great way to make sure team members leave with a direction and know the next steps. The short term plan can be as simple as outlining action items and assigning tasks. In the long term it could mean setting a timeline of general dates and milestones. Initial planning can be an effective way of aligning the group and cementing the decision that was made.

 

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Key Roles in Decision Making Meetings

The participants in decision making meetings may play different roles. Understanding the distinctions between these levels of involvement is a useful way of holding members accountable for their role in implementing decisions.

Meeting leader

In order to avoid getting off topic it is recommended that one person be in charge of guiding the direction of team negotiation. In addition, it can be helpful to use some elements of status update meetings in order to have meeting attendees present and be held accountable for research into the decision being made.

Those with authority to carry out the decisions

For decision making meetings it is particularly important to include all relevant persons with authority to carry out the decision. If decisions are made without including the relevant people, it can often be very challenging to implement the resulting decision.

In some cases, it can be useful to dedicate one leader of a team to be a representative for that group. Often, this job is given to someone in a senior position, but it can be fulfilled by anyone capable of accurately reporting information on behalf of a group. If this method is used, the representative should be prepared to report back to the team the consensus that was reached. Without this information exchange, the group unity that should have been a result of the group meeting is lost.

Note taker and process observer

Decision making meetings can often get derailed or become ineffective for a variety of reasons. To counter this, it can be helpful to include a note taker and process observer. These roles should be filled by people not directly involved in the decision so they are not biased toward any particular opinion. A note taker records what was suggested and decided throughout the meeting while a process observer records how those decisions were met. Incorporating these roles can lead to a lasting group understanding as well as ability to improve decision making meetings in the future.

 

Common Challenges in Decision Making Meetings

Making group decisions can be hard. Making good group decisions is even more challenging. However, good decisions is what can make or break your project or even your company or career. Being aware of the most common challenges in decision making meetings will move you closer to facilitating successful group decision making.

Incomplete information and narrow perspectives

An important aspect of collective decision making is to incorporate a broad spectrum of opinions and ideas, and through group collaboration converge these into a best possible solution. This process is easier said than done. Getting to a solution often involves dealing with a lot of conflicting agendas and opinions which are not easily resolved.

Identifying the best possible solutions

Another classic challenge of the decision making meeting is knowing what possible options are worth further consideration and discussion, and which options to discard early. Time is often wasted discussing possibilities that are not even among the most likely or best choices.

 

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How to Host a Successful Decision Making Meeting

Decision is the spark that ignites action. Until a decision is made, nothing happens.

A great decision making meeting effectively incorporates all participants, benefiting from the knowledge and experience they bring to the process. Giving all relevant parties the opportunity to participate in the decision making process increases the quality of the decision, adds to the collective understanding and support of the outcome, and ensures successful implementation.

Consider all relevant information

We want as much relevant information as possible to go into the group decision process. This means involving as many stakeholders as practically possible to provide input when it comes to defining the problem area, come up with possible solutions, and evaluate options.

Generate and evaluate possible solutions

Identify and agree on solution requirements before starting to brainstorm potential solutions. Then, invite to brainstorm solutions with an open mind, focusing on the issue rather than the person presenting the idea. Use the solution requirements to evaluate the various suggestions, identifying the top ideas for further consideration.

Get everyone on board

The secret of change is to focus all of your energy, not on fighting the old, but on building the new.

One of the most important aspects of decision meetings is to create unity around the decision that is created. When each participant feels their opinion has been fully considered as part of the decision making process they are more likely to feel ownership of the decision, even in cases when it is not the outcome they hoped for.

 

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Better Decision Making Meetings with Technology

Collaborative technologies today like Zoom and a good website where owners can read and voice their opinion on subjects that will impact them are being used to make group decision processes easier to manage, more efficient, produce better solutions, and improve execution of decisions.

 

Easily include and engage all key stakeholders for more complete information

Using smart device-based participation levels the playing field and provides an efficient way to share information and reach group consensus. The unruly nature of decision making meetings is easily structured with Zoom and a good Website for your association, because participants are presented with real-time visualizations and group opinions as the discussion moves forward.

 

Quickly tap into the group’s knowledge and expertise

Having participants use Zoom and a good Website for your association to evaluate options will help focus on the task at hand. Collecting decision preferences automatically, rather than manually, speeds up the process. Not only does that mean less time spent on interpreting where a group stands but it also allows for more people to be involved in the process at the same time.

For example, conducting a brainstorm with a large group of participants using whiteboards, flip charts, and post it notes can get messy. When people are contributing one by one it takes a considerable amount of time. The Zoom and a good Website for your association everyone can brainstorm, this activity lets group members submit ideas concurrently, via their own smart devices and computers making sure to accurately record and organize all inputs. This saves time for everyone involved, no matter how large the group is

 

Real-time visualizations of options and opinions focuses the discussion

Zoom and a good Website for your association are well suited to measure group opinions. In the case of an extended discussion it can be helpful to take multiple snapshots of opinions, as they can change over the course of the conversation. Taking a quick group poll, ranking, or evaluation after an initial conversation will clearly identify where the group feels their time is best spent. This allows the discussion to stay centered on the most important and relevant issues. The group will be able to use these baseline opinions as a jumping off point for focused conversation, establishing a common ground and sense of unity which will set the stage for successfully reaching a decision.

 

Engaged inclusion of stakeholders generates buy-in and better execution

Unfortunately, just organizing a group decision making meeting does not necessarily assure that each person in the room will leave feeling that they have been heard. Using Zoom and a good Website for your association ensures each person gets to contribute on an even scale. Because, participants can literally watch their voice be factored into the results. Playing an active part in the decision making process generates a sense of ownership and responsibility for the results, which in turn ensures active participation in carrying out the plan.

 

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Adding to this: COVID-19: Technology and Social Distancing by Becker Lawyers.

COVID-19 has introduced new challenges to the way we meet and work together in our communities. Many of our daily community association activities include in-person interaction, from regular meetings to conduct association business to elections and other membership votes. Social distancing, the new normal, has necessitated a change to our behavior. While we continue to learn more about the COVID-19 virus and how it is spread, we do know that limiting in-person interaction can greatly reduce risk. Modern technology is a powerful tool to help reduce the transmission of the virus and allow us all to continue with our normal community association business. The following are a few options to consider as your association works to reduce risk in your community.

Voting

A standard election or membership vote often involves voting on a paper ballot. In addition, other types of voting events also include meeting in person, either to cast a ballot or participate in an annual meeting. At this time, we don’t know exactly how long the virus lasts on surfaces, but experts do believe it can be transmitted by touching surfaces. While social distancing and other guidelines now require we limit group activities and avoid public gatherings, there are a number of technologies that allow voters to participate in elections and cast membership votes safely from the comfort of their own homes.

Online voting is a Florida approved option and is a powerful tool to ensure association members can easily participate without the risk of exposure to the virus from in-person meetings or via voting materials. If you have an upcoming election or other membership vote, consider adding online voting to your process to avoid the need for physical materials and in-person participation.

Association Documentation

Community associations are required to provide access to association documents in the form of document inspection requests, a common practice that is sure to continue even during these uncertain times. We expect COVID-19 to affect the normal course of business for at least the next few months, especially as we continue to avoid in-person meetings and handling physical materials.

Instead of requiring in-person document inspections, consider posting your association documentation to your community website. Community association website software offers tools to upload association documentation and share links via email. These tools also allow you to easily post all Florida required association materials to a password protected area of your association’s website, facilitating ease of access and satisfying document inspection requests. These tools are simple to use and are cost-effective methods to continue to support your membership while helping to stem the transmission of the COVID-19 virus.

Association Communication

As we have seen, communication during an uncertain time is crucial. Your community association website is an instrumental channel to quickly and effectively communicate with your association membership. By posting official notices on how your community is managing the outbreak, your website provides a quick and centralized mechanism to ensure your association is apprised of the latest information. We all rely on websites for information and entertainment, and we will likely spend more time online now that our out of home activities are limited. Take this opportunity to direct your membership to your association website for the latest community updates.

We are all facing the challenges COVID-19 has introduced. Social distancing, cancelled activities, and the overwhelming amount of information only adds to the stress of this evolving situation. Technology can be a powerful equalizer, enabling us to work together in safe conditions and keep lines of communication open to all.

 

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Hurricane Recovery: A rundown of lessons learned from previous storms from Becker Shareholder Joseph E. Adams

Hurricane Recovery: A rundown of lessons learned from previous storms from Becker Shareholder Joseph E. Adams

Hurricane Recovery: A rundown of lessons learned from previous storms from Becker Shareholder Joseph E. Adams

Recovery From Hurricane Ian

Unfortunately, Hurricane Ian was a historic storm and has left a wide and substantial swath of damage across Southwest Florida. As we all work to recover from the ongoing effects of Hurricane Ian, I would like to share a few pointers we have learned from past storms and some things we are experiencing with Ian:

  1. Flood Damage: A significant part of Ian’s damage resulted from rising water, which is generally and generically referred to as “flood damage”. It is very important to note that flood insurance and processing flood insurance claims is covered by federal law, not Florida law. Among the notable differences, federal law requires that a “Proof of Loss” be filed for flood claims within 60 days, and the statute of limitations under flood policies is one year.
  2. Disaster Recovery Contractors: There are a number of large national companies, as well as others, who employ large crews of “storm chasers”, and arrive at disaster sites to shore up the property, dry it in, and dry it out. This is critical work and many of these companies are reputable, but not all are. Bills for significant damage sites can quickly approach seven figures (one million dollars plus) without proper justification. Associations can understandably feel under pressure to sign these companies up quickly but there are several critical things to keep in mind:
  • Approval From Your Insurer: Most reputable companies will be known to your insurers and be able to demonstrate they have the “go ahead” from the insurer before engaging in major work.
  • “Mapping”: As Southwest Florida is a significant disaster zone, insurance adjustors are overwhelmed and one may not visit your property for weeks, or longer. It is very important that the disaster relief contractor properly document the conditions it finds and remediates, commonly known as “mapping.”
  • “Assignment of Benefits”: Historically, various participants in this field have asked for an assignment of the association’s insurance policy rights, known as an “AOB”’. AOB contracts are now strictly regulated by statute but should never be given to an outside contractor.

While getting dry-out work started quickly is critical, the association should not enter into a contract with a remediation company, or any vendor, if the association is not comfortable with the term of the agreement and confident in the company. It is always better to take a step back and make a thoughtful decision than to rush into a bad agreement.

  1. Application Of Your Community’s Governing Documents: If the association has experienced significant damage, it is critical that the association be aware of the requirements of the governing documents, especially for condominiums. For example, many documents state that if a certain percentage of the units are rendered “uninhabitable” (usually an undefined term), the condominium is automatically “terminated” (legally extinguished) if a vote to rebuild is not taken, often in a very short time frame such as 60 days after the loss. Other “gotcha” clauses in documents might include the requirement to have a bank act as “insurance trustee” for insurance proceeds.
  2. Emergency Powers: The “emergency powers” provisions of the statutes are now in effect. Among other powers conferred are the power to contract for debris removal and authorize appropriate remediation, including removal of wet drywall and cabinetry, subject to any limitations of the condominium documents. The emergency powers statute also gives associations flexibility in noticing and holding membership and board meetings. As much as is practicable, you should consult with your association’s attorney regarding use of the statutory emergency powers.

The next few months will be a trying time for everyone in Southwest Florida and practically every community association will have to deal with some consequence from Hurricane Ian. The decisions that board members and owners make at this time will, to a great degree, determine outcome for many communities.

Joseph E. Adams is a Board Certified Specialist in Condominium and Planned Development Law, and an Office Managing Shareholder with Becker & Poliakoff. Please send your community association legal questions to jadams@beckerlawyers.com. Past editions of the Q&A may be viewed at floridacondohoalawblog.com.

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Property damage claims encompass more than just the obvious cases. From water damage to fire damage and beyond,

Property damage claims encompass more than just the obvious cases. From water damage to fire damage and beyond,

  • Posted: Aug 06, 2024
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“Types of Property Damage Claims: Beyond the Obvious”

Property damage claims encompass more than just the obvious cases. From water damage to fire damage and beyond, we handle a wide range of property damage claims. If your property has been damaged, contact Maus Law Firm to discuss your options and seek the compensation you deserve.

WHY MAUS LAW FIRM?

 

Direct Contact with Experienced Attorneys

When you hire us, you speak one on one with our skilled Fort Lauderdale personal injury attorneys or property damage lawyers. We have decades of combined experience between us, and we make sure our clients understand their claim and the legal process.

 

We Accommodate Our Clients

No two clients are the same. Maus Law Firm wants to assist all of the clients who need our services, so we offer 24/7 phone service, free estimates, Spanish-speaking staff members, house calls, after hours appointments and more.

 

Results That Speak for Themselves

Our Fort Lauderdale injury lawyers handled thousands of accident and property damage claims and received settlements over $1 million. Our happy clients have left us wonderful reviews, and we strive for the best legal outcome for each case we represent.

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A Guide to Sending the New Notice of Late Assessment By: K. Joy Mattingly, Esq.

A Guide to Sending the New Notice of Late Assessment By: K. Joy Mattingly, Esq.

  • Posted: Jul 16, 2024
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A Guide to Sending the New Notice of Late Assessment

By: K. Joy Mattingly, Esq.

As of July,  associations are required to send delinquent owners a Notice of Late Assessments, giving the owners 30 days to bring the account current prior to turning the account over to the association’s legal counsel for collections.

Failure to provide the delinquent owner with this 30-day notice will preclude the association from recovering legal fees related to past due assessments, i.e., any fees incurred in a subsequent collection/foreclosure action.

The notice must be sent via first class United States mail to the owner’s last address as reflected in the association’s official records, and if the last address is not the property address, the notice must also be sent to the property address by first class United States mail. The notice is deemed delivered upon mailing and a rebuttable presumption that the notice was mailed as required can be established by a sworn affidavit executed by a board member, officer or agent of the association, or by a licensed manager.

A form for the 30-day notice, titled “Notice of Late Assessment” can be found in §§718.121, 719.108 and 720.3085, Fla. Stat.

While the statutory instructions for the Notice of Late Assessment may appear to be straight-forward and easy to follow, there are several ways that the process can go awry. These missteps can result in an association having to send out a new Notice of Late Assessment, further delaying the collections and foreclosure process and adding to the association’s workload and frustration. But fear not! An association can avoid pitfalls in the process by incorporating the following best practices when drafting and sending the Notice of Late Assessment.

First, when detailing the delinquency in the Notice, the assessments, interest and late fees owed should be broken out rather than listed as a lump sum.

If there are other amounts owed, such as fines, these should be listed separately from the monthly or quarterly assessments. Late fees (if applicable) and interest should be listed below the monthly or quarterly assessments and the annual rate of interest should be detailed as well.

Second, when sending the Notice of Late Assessment, the association should check the county property appraiser’s website and the current deed for additional mailing addresses for the owner. While the statute requires the association to send the notice to the property address and the last address “as reflected in the association’s records”, there is always the possibility that the association’s records have not been properly updated or maintained to include additional addresses. Taking a few minutes to conduct this search at the beginning of the process can eliminate the possibility of an owner subsequently arguing that the association failed to send the notice to a relevant address. If the owner is successful in this argument, the association will be precluded from collecting the subsequent legal fees incurred in the collections/foreclosure process.

Third, the association should keep a copy of each Notice of Late Assessment sent to an owner as part of the association’s records. This will enable the association to provide the copy in support of the association’s sworn affidavit that the notice was mailed to the owner, should the owner subsequently dispute that the notice was provided.

In addition to following the best practices detailed above, the association should consult with its legal counsel to confirm that the association’s collections policy, practices and procedures are in conformance with the applicable statutory requirements.

 

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When unit owners refuse to pay their assessments, it puts everyone in a bind, condominium assessment liens might be one way?

When unit owners refuse to pay their assessments, it puts everyone in a bind, condominium assessment liens might be one way?

  • Posted: Jul 16, 2024
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Florida Condominium Associations and Homeowners Association Boards have many challenges in managing the needs of their communities. As a result, when unit owners refuse to pay their assessments, it puts everyone in a bind. Fortunately, there is a key tool that you may use in Florida to compel payment of the monies due: a condominium assessment lien.

Collecting Assessment Revenue Through A Condominium Assessment Lien
There are steps that must be taken in order for a condominium association lien to be properly filed. This is a brief summary of the steps:

 

*A condominium association’s governing documents in conjunction with Section 718.116, Florida Statutes, are the genesis of the condominium association’s authority to impose and perfect assessment liens against individually owned units within the community.

 

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Delinquency Notice

This is not a requirement but good collection practices dictate that the association attempt collection efforts prior to engaging a law firm. Sometimes the unit owner may have just forgotten to place the payment in the mail. These delinquency notices can help remind the unit owner of their payment obligation.

 

Notice of Intent to Lien

The first statutorily required step is to send a formal letter from the law firm announcing the association’s intent to place a lien on the unit for the failure to pay. The letter has very specific requirements and should be sent from the association’s attorney. If a condominium, the association must wait 30 days from the date of this letter to record its lien. The time frame for a Homeowners Association is 45 days.

 

Claim of Lien

This is the actual document that gets recorded in the public records and encumbers the unit. It must have the Unit legal description, the owners name and a description of the delinquency. There is a form in the statute and Florida law requires that this lien be created and recorded by the association attorney.

 

Notice of Intent to Foreclose

After the lien is recorded, another notice must go to the unit owner announcing the intention to take the unit by legal process. The association must also wait an additional 30 days after this notice is sent. 45 days for HOAs.

 

Foreclosure Action

This is the lawsuit that will take the unit. A Lis Pendens is recorded when the lawsuit is filed to provide public notice of the legal action on the lien. Most lien foreclosure actions result in either settlement of the claim of taking of the unit. Defenses to lien foreclose actions are tough to prove and seldom release the unit owner from the obligation to pay the assessment.

 

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Time Is not on your side, dont delay if this is the action you are taking?

It is imperative that all these steps are followed to the tee or the lien may be dismissed outright. In addition to these steps, Florida condominium associations can take additional steps such as suspending unit owner common element or amenity rights. This is done by alerting the unit owner of the delinquency and then if amount is greater than $1,000 and 90 days the Board may consider the suspension of voting rights at a board meeting. The unit owner will then receive notice of the suspension after the vote has occurred.

 

Florida Condominium Associations

Under Florida State Law, only an attorney may draft a condominium assessment lien, because it contains a legal statement. Once the lien is filed, there is a one year timeline for Florida condominium associations to file suit. If the Association misses that deadline, the whole lien process will have to be redone. Therefore, it is paramount that the steps are followed properly, and in a timely fashion, or you may forfeit what is due to the community.

Remember to contact your Attny, Ask them for the best options for your communities!

 

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One thing has become clear since the fall of the Champlain Towers South condo: many condos are falling apart, often because owners don’t want to spend the money to maintain them. Soon, they might have no choice but to pay.

One thing has become clear since the fall of the Champlain Towers South condo: many condos are falling apart, often because owners don’t want to spend the money to maintain them. Soon, they might have no choice but to pay.

  • Posted: Jul 16, 2024
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A Broward task force will likely ask the state to boost inspections and change funding of reserves. But any new rules will face regulatory and political hurdles.

Broward County task force agreed, informally, to recommend a change in state law that would make it harder for condos to waive the proper funding of reserves and to require more frequent inspections for coastal condos. The changes, if adopted by the state, could make condo living more expensive, but safer.

“It’s going to hurt in the beginning, but that’s where we have to get,” insurance expert Paul Handerhan, president of the Federal Association for Insurance Reform (FAIR), told the committee Monday, echoing many of their own opinions. “… There’s no way to get out of this without paying.”

Monday’s was the second of three meetings for the Broward County Condominium Structural Issues Committee, set up by Mayor Steve Geller to quickly offer recommendations to the Florida Legislature, whose committee meetings begin next month.

The Florida Bar and the Community Associations Institute trade group also are studying issues arising from the June 24 condo collapse in Surfside, and will offer recommendations to the governor and Legislature.

All are focused on just a few topics, including the issues of reserves and inspections.

Currently, reserves can be waived by majority vote of those present at a condo meeting. And the first major inspection is not required in Broward until a building turns 40.

“We’re here to try to come up with creative ways to make buildings safe. What Surfside has done is made city officials, building officials, condo residents, everybody aware of the widespread lack of maintenance in older condos,” said Hollywood Commissioner Caryl Shuham, who has a degree in civil engineering and is an attorney.

She recommended, and the committee conceptually agreed, that condos should have to present a reserve study to unit owners and secure a super-majority vote to waive full funding of reserves. She also suggested reserves not be waived unless an engineer has inspected the building and issued a report.

The potential cost to condo owners is not lost on state, county and city officials or the civic and industry leaders huddling on the issue. While some million-dollar condo owners might have no trouble forking over extra money, many unit owners are not in that category. Even the inspections are costly, one condo representative said. Unit owners could be forced out and condo sales could be stifled, some said.

“In certain cases, you could be mandating the death of a building,” said Fred Nesbitt, president of the Galt Ocean Mile condo association in Fort Lauderdale, which opposes reserve mandates. “I think we should still give owners choice.”

Geller said condos that don’t properly save for repairs face sticker shock with giant special assessments. By the time a major problem is found, he said, it’s too late to start paying into reserves.

“You can’t insure a burning building, and you can’t start reserving for an emergency that has already arrived,” he said.

The cause of the Champlain collapse remains unknown but is under investigation. Because there was evidence of poor maintenance and crumbling, cracking concrete at the Champlain, there has been a sharp focus on how government can ensure that condos are kept in good repair.

“It’s terrifying to me that we’re in this place,” said state Sen. Lauren Book, one of four state legislators on the county committee. Book complained that there’s no one keeping track of individual condos – where they stand with insurance, reserves and repairs.

The committee also debated whether more frequent inspections are needed. Broward is one of two counties in Florida – the other being Miami-Dade – that requires buildings to be inspected for electrical and structural safety at age 40 and every 10 years subsequently.

Dr. Jennifer Jurado, Broward County’s climate change sustainability director, said the striking increase in sea level here – more than a foot over 20 years – could increase deterioration of concrete in buildings along the coast. She also cited temperate change and flood levels in saying that inspections should begin earlier, at 25 or 30 years.

But Dan Lavrich, a structural engineer and chairman of the Broward County Board of Rules and Appeals, which oversees application of the building code, questioned the need. Any change in the inspection program would have to be approved by Rules and Appeals, and the Florida Building Commission.

“The rest of the state has no program at all,” he said of the 40-year safety program, “and they don’t have any problems.”

The Broward committee will hold what it expects to be its final meeting next week, on Aug. 30, where formal recommendations will be voted on.

Reposted via: https://www.floridarealtors.org/news-media/news-articles/2021/08/condo-law-changes-likely-after-surfside-its-complicated

 

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By now, you likely have heard that House Bill 1021 was signed into law by the Governor on June 14, 2024.

By now, you likely have heard that House Bill 1021 was signed into law by the Governor on June 14, 2024.

This new law impacts condominium associations governed under Chapter 718 of the Florida Statutes and for the most part has an effective date of July 1, 2024 (one Section is effective January 2026).

There have been several local (and even national) news stories focusing on various aspects of these wide-ranging changes, which are intended to strengthen what is perceived as a lack of oversight of board members and other stakeholders in the operation of condominium associations….

Read the full article on our website:

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