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How to Be an Effective Association Board Secretary

How to Be an Effective Association Board Secretary

How to Be an Effective Association Board Secretary

What Does a Secretary of a Board Do?

Every board of directors, whether for a Fortune 500 company or your community association, needs a great secretary. Boards are required by law—and by the association’s governing documents—to maintain certain records for the sake of transparency. The secretary is responsible for maintaining those records accurately, including meeting minutes, bylaws and membership records.

As the official record keeper for the association during meetings, the secretary is a historian who is working in the moment. Ten years in the future, any board member should be able to look back at the secretary’s meeting minutes and be able to understand, in broad strokes at least, what was going on in the community at that time.

Although the secretary’s name may go on correspondence for the association, the onus of those tasks usually falls on professional staff if the community has onsite management. “The secretary ensures consistency and that information is being articulated accurately in any document, whether that’s a notice, newsletter, meeting minutes or anything else that is part of the official record of the association. The management staff may do the legwork, but it’s important to have those checks and balances in place.”

The position of board secretary is a powerful and influential one. Concerning the minutes, for example, what is recorded and what is excluded can be particularly significant for the company. It is often argued that the ideal board secretary should be an objective outsider; not a board member, with no voting rights, and with no agenda other than to organise effective board meetings and facilitate sound governance.

What can happen if you don’t have the right secretary on your board?

Chaos. Legal problems. Confusion. Financial risks. These are just a few of the reasons it’s critical to understand what the secretary does and what qualities he or she should have—and to make sure that your association’s secretary understands them as well.

“I worked with one secretary, years ago, who had no clue what was expected of her and didn’t keep a single official record,” Gilchrist recalls. “There was no backup for any legal matters that needed to be addressed, all the way down to violation notices. She thought the manager would do it all, but it turned out the management company wasn’t holding up its end of the bargain because she wasn’t watching them! We took over management of the community and discovered that we couldn’t provide documentation for a lawsuit because none was kept, not letters to the homeowners, minutes of the approval to fine them, nothing. Ultimately, the board couldn’t hold the homeowners responsible and had to write off those fines as bad debt because the secretary didn’t do her job.”

What makes a good secretary?

Gilchrist says that in her 12 years of experience, the best secretaries have a good eye for detail, are organized and efficient, and always respond in a timely manner. “In my experience, teachers tend to make excellent secretaries,” she says. “They are really good at catching things that need to be restated for clarity when sent to the membership, very organized and accustomed to running on schedule.”

“There’s a secretary I’ve been working with for years who is exceptional at proofreading and reframing thoughts so they are communicated in the most effective way possible,” Gilchrist says. “At year end, she reviews all the documentation we’ve kept and makes sure that it is stored on the right sections of the website or other appropriate place.”

In our experience, the following are key attributes of a successful board secretary:

1: The ability to multitask:
You need to be able to keep several balls in the air at once – preparing meetings, while ensuring that everything is up-to-date and coordinated with the management.

2: Communication skills:
You need to be good at dealing with several tasks at the same time and communicating effectively, so that the people you are working with know what their priorities are.

3: The ability to listen:
It is important to be able to listen, as well as to seek clarity and explanations about deadlines and limits.

4: Insight and understanding:
The board secretary must have a good insight into and understanding of how the company works. He or she must able to translate management theory into practical frameworks and procedures for the organisation.

5: Organisational skills:
The board secretary must possess a good sense of order and be accurate and precise.

 

What does it mean to take meeting minutes?

The minutes of board meetings are incredibly important. Inaccurate meeting minutes can result in confusion, risk of a lawsuit and personal liability issues for board members. Minutes should focus on three areas: recording the actions of the association, noting the reasons behind those actions and keeping a full record of each board member’s specific vote. These minutes should be a summary of the motions made and actions taken rather than a transcript of everything that was said. It can be helpful to use the management report or the meeting agenda to frame the minutes. If the management company takes the minutes and types them up, the secretary must approve them before they are submitted to the board for approval at the next meeting.

Does the secretary have other duties?

Every board, community and state has different rules and regulations, so some secretaries may be responsible for making sure corporation paperwork is filed as required by the state. Other responsibilities may include affixing corporate seals when required for official or legal documents and serving as the witness when important documents require signatures. During election time, the secretary will coordinate the distribution and collection of ballots and proxies as directed by the governing documents and applicable law.

Like all members of the executive committee, your board secretary bears a lot of responsibility for the health and future of your community. Make sure that the right person is in the role to avoid mistakes, oversights and future confusion.

 

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NEW LAWS – WILL THEY AGAIN BE IGNORED BY MANY BOARDS?

NEW LAWS – WILL THEY AGAIN BE IGNORED BY MANY BOARDS?

NEW LAWS – WILL THEY AGAIN BE IGNORED BY MANY BOARDS?

By Jan Bergemann

Year for year we see new community association bills passed, claiming to close more loopholes in laws that have more holes than Swiss cheese. In reality most of these laws are being ignored – or circumvented – because the folks violating these laws are even told by certain attorneys that nothing will happen if they ignore existing laws.

Just take a look at what happened with their ordinances requiring older buildings to have 40-year inspections? Not much, because it seems that nobody ever followed up trying to really enforce these ordinances. After the collapse of the Champlain Towers South people looked into these ordinances – and guess what? In Miami for example, two hi-rise condos were due for the 50-year inspection, but hadn’t even done the 40-year inspection. There were lots of similar examples that many associations plainly ignored these requirements in a timely fashion. That definitely raises the question: Will the enforcement be better now that it is state law?

Many condo-owners plainly refused to vote in favor of fully funded reserves. Did the legislators even ask why before passing a bill that will require fully funded reserves? Definitely not, because otherwise they would have found out that owners didn’t want to fund the reserves for one simple reason: Boards used these reserve funds for all kinds of projects other than intended, and when time came to — for example – have a new roof installed, the roof reserves were empty and a special assessment had to be levied. But what’s the big deal? Instead of a new roof they had nice palm trees when entering the community property.

A bill was offered in the last legislative session that would have taken care of the problem: HB 811 – Condominium Association Complaints and Investigations – filed by Representative Tom Fabricio (R-Miami). But like most of the other bills in the past years that would have created enforcement of all these laws the legislature is enacting on a yearly basis it was clearly ignored.

When will all our elected officials — from county to federal – finally get the message that creating laws without enforcement is just a waste of paper that makes attorneys rich!

 

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Mandatory Condominium & Cooperative Building Inspections and Non-Waivable Reserve Requirement

Mandatory Condominium & Cooperative Building Inspections and Non-Waivable Reserve Requirement

Mandatory Condominium & Cooperative Building Inspections and Non-Waivable Reserve Requirement

The City of Surfside, Champlain Towers South Related Legislation Already in Effect

 

With home insurers leaving Florida in droves, and following pressure from members of both political parties in the legislature to actually do something about it, in May 2022, the governor called a special legislative session to address the problem. A very real concern to the insurers is the effect of both time and inclement weather on Florida’s aging high-rise buildings. Until now, and for the most part, Florida law largely ignored these concerns. Enter Senate Bill 4-D (SB 4-D), which already became effective upon being signed into law by Governor DeSantis on May 26, 2022. This new piece of legislation addresses condominium and cooperative building inspections and reserve requirements. (While this article primarily addresses these new laws in the context of condominium association application, they are equally applicable to cooperative associations.)

By way of background, during the regular legislative session, there were several bills introduced in the Florida House of Representatives and in the Florida Senate addressing building safety issues, but none of them were passed into law due to the inability to match the language of the bills in both the house and the senate which is a requirement for legislation to pass and go to the governor for consideration. As such, it was a little surprising to many observers that the legislature was able to approve SB 4-D in essentially a 48-hour window during the special session in May. The language used in SB 4-D was initially drafted into a proposed bill in November 2021. At that time and during the most recent legislative session, input was provided by many industry professional groups including engineers, reserve study providers, and association attorneys. Many of these industry professionals indicated that there were challenges with some of the language and concepts being proposed in SB 4-D during session.

Notwithstanding these challenges and in an effort to ensure some form of life safety legislation was passed this year, SB 4-D was unanimously approved in both the house and senate and signed by the governor. A plain reading of this well-intended, but in some instances not completely thought-out, legislation evidences these challenges. Some will say it is a good start that will need significant tweaking, which is expected in the 2023 legislative session. Others praise it, and, yet others say it is an overreach of governmental authority, such as an inability to waive or reduce certain categories of reserves. You be the judge. We begin by examining the mandatory inspection and reserve requirements of SB 4-D.

I. Milestone Inspections: Mandatory Structural Inspections For Condominium and Cooperative Buildings. (§553.899, Fla. Stat.)

You will not find these new milestone inspection requirements in Chapters 718 or 719 of the Florida Statutes, but rather in Chapter 553, Florida Statutes, as cited above.

Milestone Inspections

The term “milestone inspection” means a structural inspection of a building, including an inspection of load-bearing walls and the primary structural members and primary structural systems. The aforementioned terms are defined in §627.706, Florida Statutes, and are to be carried out by a licensed architect or engineer authorized to practice in this state for the purposes of attesting to the life safety and adequacy of the structural components of the building and, to the extent reasonably possible, determining the general structural condition of the building as it affects the safety of such building, including a determination of any necessary maintenance, repair, or replacement of any structural component of the building. The purpose of such an inspection is not to determine if the condition of an existing building is in compliance with the Florida Building Code or the fire safety code.

Substantial Structural Deterioration

The term “substantial structural deterioration” means substantial structural distress that negatively affects a building’s general structural condition and integrity. The term does not include surface imperfections such as cracks, distortion, sagging, deflections, misalignment, signs of leakage, or peeling of finishes, unless the licensed engineer or architect performing the phase one or phase two inspection determines that such surface imperfections are a sign of substantial structural deterioration.

Milestone Inspections For Buildings Three Stories or More In Height

A condominium association under Chapter 718 and a cooperative association under Chapter 719 must have a milestone inspection performed for each building that is three stories or more in height by December 31 of the year in which the building reaches 30 years of age, based on the date the certificate of occupancy for the building was issued, and every 10 years thereafter.

Within Three Miles of Coastline

If the building is three or more stories in height and is located within three miles of a coastline, the condominium association or cooperative association must have a milestone inspection performed by December 31 of the year in which the building reaches 25 years of age, based on the date the certificate of occupancy for the building was issued, and every 10 years thereafter.

The condominium association or cooperative association must arrange for the milestone inspection to be performed and is responsible for ensuring compliance.

The condominium association or cooperative association is responsible for all costs associated with the inspection.

If The Certificate of Occupancy was Issued Before July 1, 1992

If a milestone inspection is required under this statute and the building’s certificate of occupancy was issued on or before July 1, 1992, the building’s initial milestone inspection must be performed before December 31, 2024. If the date of issuance for the certificate of occupancy is not available, the date of issuance of the building’s certificate of occupancy shall be the date of occupancy evidenced in any record of the local building official. 

Upon determining that a building must have a milestone inspection, the local enforcement agency must provide written notice of such required inspection to the condominium association or cooperative association by certified mail, return receipt requested. 

Within 180 days after receiving the written notice, the condominium association or cooperative association must complete phase one of the milestone inspection. For purposes of this section, completion of phase one of the milestone inspection means the licensed engineer or architect who performed the phase one inspection submitted the inspection report by email, United States Postal Service, or commercial delivery service to the local enforcement agency.

A Milestone Inspection Consists of Two Phases

(a) PHASE 1—For phase one of the milestone inspection, a licensed architect or engineer authorized to practice in this state must perform a visual examination of habitable and non-habitable areas of a building, including the major structural components of a building, and provide a qualitative assessment of the structural conditions of the building. If the architect or engineer finds no signs of substantial structural deterioration to any building components under visual examination, phase two of the inspection (discussed below) is not required. An architect or engineer who completes a phase one milestone inspection shall prepare and submit an inspection report.

(b) PHASE 2—A phase two of the milestone inspection must be performed if any substantial structural deterioration is identified during phase one. A phase two inspection may involve destructive or nondestructive testing at the inspector’s direction. The inspection may be as extensive or as limited as necessary to fully assess areas of structural distress in order to confirm that the building is structurally sound and safe for its intended use and to recommend a program for fully assessing and repairing distressed and damaged portions of the building. When determining testing locations, the inspector must give preference to locations that are the least disruptive and most easily repairable while still being representative of the structure. An inspector who completes a phase two milestone inspection must prepare and submit an inspection report.

Post-Milestone Inspection Requirements

Upon completion of a phase one or phase two milestone inspection, the architect or engineer who performed the inspection must submit a sealed copy of the inspection report with a separate summary of, at minimum, the material findings and recommendations in the inspection report to the condominium association or cooperative association, and to the building official of the local government which has jurisdiction. The inspection report must, at a minimum, meet all of the following criteria:

  1. Bear the seal and signature, or the electronic signature, of the licensed engineer or architect who performed the inspection.
  2. Indicate the manner and type of inspection forming the basis for the inspection report.
  3. Identify any substantial structural deterioration within a reasonable professional probability based on the scope of the inspection, describe the extent of such deterioration, and identify any recommended repairs for such deterioration.
  4. State whether unsafe or dangerous conditions, as those terms are defined in the Florida Building Code, were observed.
  5. Recommend any remedial or preventive repair for any items that are damaged but are not substantial structural deterioration.
  6. Identify and describe any items requiring further inspection.

Local Government Enforcement

A local enforcement agency may prescribe timelines and penalties with respect to compliance with the milestone inspection requirements.

A board of county commissioners may adopt an ordinance requiring that a condominium or cooperative association schedule or commence repairs for substantial structural deterioration within a specified timeframe after the local enforcement agency receives a phase two inspection report; however, such repairs must be commenced within 365 days after receiving such report. If an association fails to submit proof to the local enforcement agency that repairs have been scheduled or have commenced for substantial structural deterioration identified in a phase two inspection report within the required timeframe, the local enforcement agency must review and determine if the building is unsafe for human occupancy.

Board’s Duty After Obtaining The Milestone Report

Upon completion of a phase one or phase two milestone inspection and receipt of the inspector-prepared summary of the inspection report from the architect or engineer who performed the inspection, the association must distribute a copy of the inspector-prepared summary of the inspection report to each unit owner, regardless of the findings or recommendations in the report, by United States mail or personal delivery and by electronic transmission to unit owners who previously consented to receive notice by electronic transmission; must post a copy of the inspector-prepared summary in a conspicuous place on the condominium or cooperative property; and must publish the full report and inspector-prepared summary on the association’s website, if the association is required to have a website.

Who Pays for The Milestone Inspection?

Pursuant to §718.112, Florida Statutes, if an association is required to have a milestone inspection performed, the association must arrange for the milestone inspection to be performed and is responsible for ensuring compliance with all of the requirements thereof. The association is responsible for all costs associated with the inspection.

Failure to Obtain the Milestone Inspection

If the officers or directors of an association willfully and knowingly fail to have a milestone inspection performed pursuant to §553.899, Florida Statutes, such failure is a breach of the officers’ and directors’ fiduciary relationship to the unit owners.

Manager’s Duty

If a community association manager or a community association management firm has a contract with a community association that has a building on the association’s property that is subject to milestone inspection, the community association manager or the community association management firm must comply with the requirements of performing such inspection as directed by the board.

Exemptions

For clarity, the otherwise required milestone inspection does not apply to a single family, two-family, or three-family dwelling with three or fewer habitable stories above ground.

Florida Building Commission Requirements

The Florida Building Commission must review the milestone inspection requirements and make recommendations, if any, to the legislature to ensure inspections are sufficient to determine the structural integrity of a building. The commission must provide a written report of any recommendations to the governor, the president of the senate, and the speaker of the house of representatives by December 31, 2022. 

The Florida Building Commission must consult with the State Fire Marshal to provide recommendations to the legislature for the adoption of comprehensive structural and life safety standards for maintaining and inspecting all types of buildings and structures in this state that are three stories or more in height. The commission must provide a written report of its recommendations to the governor, the president of the senate and the speaker of the house of representatives by December 31, 2023.

II. Structural Integrity Reserve Studies and Mandatory Reserves:

The reserve legislation set out in §718.112 (f)(2)(a), Florida Statutes, is, for all intents and purposes, re-written. Prior to examining these most recent revisions, it is necessary to first examine the definitions set out in §718.103, Florida Statutes, where a brand-new term is added as follows: 

Structural integrity reserve study means a study of the reserve funds required for future major repairs and replacement of the common areas based on a visual inspection of the common areas applicable to all condominiums and cooperative buildings 3 stories or higher. 

Hereafter, the structural integrity reserve study is referred to as “SIRS.” Now we can turn our attention to the requirements of the SIRS as set out in §718.112 (f)(2)(a), Florida Statutes.

The Structural Integrity Reserve Study (required for all condominium and cooperative buildings three stories or higher regardless of date of certificate of occupancy):

An association must have a SIRS completed at least every 10 years after the condominium’s creation for each building on the condominium property that is three stories or higher in height which includes, at a minimum, a study of the following items as related to the structural integrity and safety of the building:

  1. Roof
  2. Load-bearing walls or other primary structural members
  3. Floor
  4. Foundation
  5. Fireproofing and fire protection systems
  6. Plumbing
  7. Electrical systems
  8. Waterproofing and exterior painting
  9. Windows
  10. Any other item that has a deferred maintenance expense or replacement cost that exceeds $10,000 and the failure to replace or maintain such item negatively affects the items listed in subparagraphs a.-i., as determined by the licensed engineer or architect performing the visual inspection portion of the structural integrity reserve study.

The SIRS may be performed by any person qualified to perform such study. However, the visual inspection portion of the structural integrity reserve study must be performed by an engineer licensed under Chapter 471 or an architect licensed under Chapter 481. 

As further set out in the legislation, at a minimum, “a structural integrity reserve study must identify the common areas being visually inspected, state the estimated remaining useful life and the estimated replacement cost or deferred maintenance expense of the common areas being visually inspected, and provide a recommended annual reserve amount that achieves the estimated replacement cost or deferred maintenance expense of each common area being visually inspected by the end of the estimated remaining useful life of each common area.”

The amount to be reserved for an item is determined by the association’s most recent structural integrity reserve study that must be completed by December 31, 2024. If the amount to be reserved for an item is not in the association’s initial or most recent structural integrity reserve study or the association has not completed a structural integrity reserve study, the amount must be computed using a formula based upon estimated remaining useful life and estimated replacement cost or deferred maintenance expense of each reserve item.

If the condominium building is less than three stories, then the legislation provides that “in addition to annual operating expenses, the budget must include reserve accounts for capital expenditures and deferred maintenance. These accounts must include, but are not limited to, roof replacement, building painting, and pavement resurfacing, regardless of the amount of deferred maintenance expense or replacement cost, and any other item that has a deferred maintenance expense or replacement cost that exceeds $10,000.” 

The association may adjust replacement reserve assessments annually to take into account any changes in estimates or extension of the useful life of a reserve item caused by deferred maintenance. 

If an association fails to complete a SIRS, such failure is a breach of an officer’s and director’s fiduciary relationship to the unit owners.

Non-Waivable and Waivable Reserves In The Unity Owner-Controlled Association

As to the SIRS, the legislation is patently clear that unit owners may not vote for no reserves or lesser reserves for items set forth in the SIRS report. There is ongoing debate among attorneys in regard to whether a condominium under three stories can waive or reduce reserves for any of the reserve items required to be in the SIRS that are included in the under- three-story condominium reserve—for example, roof and painting. (For those interested, examine lines 1029 to 1033 and 1050 to 1071 in SB 4-D.)

Mandatory Reserves In The Developer-Controlled Association

Before turnover of control of an association by a developer to unit owners other than a developer pursuant to §718.301, Florida Statutes, the developer-controlled association may not vote to waive the reserves or reduce the funding of the reserves. (Previously, a developer could fully waive all reserves for the first two years, meaning this is a monumental change.)

Pre-Turnover Developer Duty

Before a developer turns over control of an association to unit owners other than the developer, the developer must have a SIRS completed for each building on the condominium property that is three stories or higher in height.

III. Official Records

Official records of the condominium and cooperative association include structural integrity reserve studies, financial reports of the association or condominium, and a copy of the inspection reports and any other inspection report relating to a structural or life safety inspection of condominium or cooperative property. 

In addition to the right to inspect and copy the declaration, bylaws, and rules, renters have the right to inspect the milestone inspection report and structural integrity reserve study inspection reports as well.

Structural integrity reserve studies must be maintained for at least 15 years after the study is completed. In addition, inspection reports and any other inspection report relating to a structural or life safety inspection of condominium property must be maintained for 15 years after receipt of such report.

IV. Association Websites

In addition to other positing requirements, the inspection reports described above and any other inspection report relating to a structural or life safety inspection of condominium property and the association’s most recent structural integrity reserve study must be posted to the website.

V. Jurisdiction of Division of Condominiums, Timeshares and Mobile Homes

Pre-turnover, the Division of Florida Condominiums, Timeshares, and Mobile Homes (Division) may enforce and ensure compliance with rules relating to the development, construction, sale, lease, ownership, operation, and management of residential condominium units, and complaints related to the procedural completion of milestone inspections. After turnover has occurred, the Division has jurisdiction to investigate complaints related only to financial issues, elections, and the maintenance of and unit owner access to association records, and the procedural completion of structural integrity reserve studies.

VI. New Reporting Requirements For All Condominium and Cooperative Associations

On or before January 1, 2023, condominium associations existing on or before July 1, 2022, must provide the following information to the Division in writing, by email, United States Postal Service, commercial delivery service, or hand delivery, at a physical address or email address provided by the division and on a form posted on the division’s website:

  1. The number of buildings on the condominium property that are three stories or higher in height.
  2. The total number of units in all such buildings.
  3. The addresses of all such buildings.
  4. The counties in which all such buildings are located.

An association must provide an update in writing to the division if there are any changes to the information in the list within six months after the change.

VII. Applicable To All Sellers of Units

As a part of the sales process, the seller of a condominium or cooperative unit and developers must provide to potential purchasers a copy of the inspector-prepared summary of the milestone inspection report and a copy of the association’s most recent structural integrity reserve study or a statement that the association has not completed a structural integrity reserve study.

VIII. Glitches

As with any new legislation of such a substantial nature, there often follow in subsequent years what are referred to as “glitch bills” which help provide additional clarity, remove ambiguity, and fix unintended errors. Some observe are (i) the term “common areas” is used in the legislation when in fact the correct term is “common element;” (ii) clarity needs to be provided regarding whether reserve items that are required to be in SIRS, but show up in the under-three-story reserves, such as paint and paving, can be waived or reduced by the membership; and (iii) for those buildings that are within three miles of the coastline, additional clarity could be provided to provide better guidance as to how to perform the measurement.

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Director Compensation: Do I Get Paid for This?” – by Becker for the – Naples Daily News

Director Compensation: Do I Get Paid for This?” – by Becker for the – Naples Daily News

  • Posted: Jul 05, 2022
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Q: I am considering running for the board of my condominium association. However, there is a lot of work involved in being on the Board. It can be a thankless position, which discourages many owners from volunteering. Can we compensate the members of the board as a way to encourage people to serve?

A:  The Florida Condominium Act states that unless otherwise provided in the bylaws, the officers and the directors shall serve without compensation. So, unless your association’s bylaws provide for such compensation, compensation is prohibited.

The Florida Homeowners’ Association Act contains similar language.

While your sentiments are spot on, boards being paid for their service is very rare in the community association realm. I do think there would be some basis for concern as to whether paid directors would be held to higher standards of legal liability, as well as whether the typical nonprofit Directors and Officers Liability Insurance Policy written to cover association directors would be available.

Q:  I received the first notice of my condominium association’s annual meeting just over a month ago. The first notice included a “Notice of Intent” form that had to be submitted by any owner wishing to run for the board of directors by the stated deadline. One of the owners that submitted a Notice of Intent is behind on the payment of her assessments. However, she told our association manager that she would pay her assessments in full before the election. Can she run for the board as long as she pays her assessments before the election?

A:  A unit owner desiring to be a candidate for the board must give written notice of his or her intent to be a candidate to the association not less than 40 days before a scheduled election. The law states that an owner must be eligible to be a candidate to serve on the board at the time of the deadline for submitting a notice of intent.

The Florida Condominium Act contains a number of eligibility requirements for candidates, one of which is that the candidate must not be delinquent in paying any assessment to the association. According to changes in the Act that became effective on July 1, 2021, a person is considered “delinquent” if a payment is not made by the due date of the assessment as specifically identified in the declaration of condominium, bylaws, or articles of incorporation.

Prior to the July 1, 2021 changes, an individual was not eligible if they were delinquent in the payment of any “monetary obligation” to the Association (as opposed to the current version of the law which states delinquent in the payment of assessments). For example, someone who had not paid a fine would be ineligible under the old law, the new law limits eligibility to assessment payment.

If the candidate in your community was delinquent on the 40th day before the election, this individual would not be eligible to be a candidate and cannot be listed on the ballot.

Q:  Most of the members of our board will be leaving our condominium soon to go back to their Northern residences, making it very difficult for us to have in-person board meetings. Can our condominium board vote via e-mail? (M.J.)

A:  The Florida Condominium Act specifically provides that members of the board may use e-mail as a means of communication but may not cast a vote on an association matter via e-mail. Although there may be certain day-to-day decisions that do not require a vote of the board that can be discussed via e-mail, any action that requires approval of the board under your condominium documents or the Act must be done at a duly noticed and open board meeting.

The good news is that the Condominium Act does allow board members to participate in a meeting via telephone or real-time videoconferencing. If a director participates via videoconference, for example, the director’s participation counts towards a quorum, and the member can vote as if physically present.

Jennifer Biletnikoff is a Board Certified Specialist in Condominium and Planned Development Law and represents condominium, cooperative, mobile home and homeowners’ associations located throughout Southwest Florida including Collier, Lee, Sarasota and Charlotte Counties. She has particular experience in covenant enforcement and foreclosure law, and has also practiced in the areas of commercial, business and tort litigation.

 

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Premier Fire Alarm Systems

Premier Fire Alarm Systems

  • Posted: May 02, 2022
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Premier Fire Alarm Systems

Premier Fire Alarms & Integration Systems Installation Division Inc. has been a leader of innovative systems for over 27 years. Our Fire Alarm Company serve and install most major brands of fire alarm systems and security products. Our licensed and certified staff is available 24 hours for emergency system repairs. We are factory authorized dealers for various manufacturers of low voltage systems.

Below are the systems and services we provide:

 

  • Annual certifications for fire alarm systems
  • Service contract fire alarm systems.
  • Fire alarm and burglar alarm monitoring contracts.
  • BDA frequency testing (bidirectional amplification systems installed).
  • BDA installations of existing buildings.
  • 24 hour emergency service.
  • Engineered fire alarm system installations, engineering department.
  • ELSS engineered reporting for compliance.
  • Fire alarm systems installations all types.
  • U.L- ETL certifications.
  • Runner service contracts.

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How To Prepare Your Trees For Hurricane Season by Arborology Inc

How To Prepare Your Trees For Hurricane Season by Arborology Inc

  • Posted: Apr 28, 2022
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Hurricanes can cause massive damage to trees and landscape. Trees often end up hitting homes, power lines and other important property. If you live in Florida or any other location that is prone to Hurricanes you need to take steps to prepare your trees.

The most important step is even before you have planted the first tree. You should select the right tree for the right location. You should always select trees that are wind tolerant and have good branch structure. Trees with good branch structure will have less overextended limbs, included bark and tree defects. Some trees handle decay from pruning better than others making species an important factor in the right tree. If your trees don’t have all the desired characteristics don’t worry you can still have the tree pruned by a Certified Arborist to remove or reduce the defects in the tree. So many people overreact and remove their trees out of fear of the unknown. This isn’t always necessary and is a waste of money.

You should always have a Certified Arborist inspect your trees on an annual basis. A Certified Arborist will be able to identify tree defects and make recommendations on corrective actions. Be sure the Certified Arborist you are working with has the TRAQ (Tree Risk Assessment Qualification) credential. Ask your Certified Arborist to provide you proof of his qualifications so you are sure your getting sound advice. Don’t be afraid to get a second opinion before you commit to having work done. We recommend you first work with a consulting Certified Arborist that doesn’t perform tree service work so they have no financial interest in the recommendations made to you.

So now were ready to prune. I know you have tons of questions and I’m here to help you answer them.

Should you thin your trees so the wind can flow through them? No this can lead to overextended limbs which can fail during wind events.

Should you top your trees? Absolutely not, this is one of the biggest mistakes tree owners make. Topping trees will lead to weak attachment points, heavier upper canopy growth and reduced tree vigor.

Should you have the dead, broken, cracked or overextended limbs pruned or removed? Yes you should. Overextended limbs are long and have most of the weight at the end. Cracked or broken limbs have a high likelihood of failing during wind events, Dead limbs can break off and impact important property.

Should I prune my palms so they will survive the hurricane apocalypse? No palms are adapt to wind storms and have zero benefits from hurricane pruning. You will want to have them inspected by a Certified Arborist so any defects can be pointed out to you.

What can you do to help your trees survive a windstorm event? Plant the correct tree for the location, Have a Certified Arborist inspect them annually, prune only when you have a valid reason to prune them, provide fertilization when necessary and most of all don’t fall victim to fear or bad information.

If you are in need of a Certified Arborist to inspect your trees or help you determine what the best course of action is for your trees please contact our Certified Arborist at http://www.arborologyinc.com. We will be glad to meet you and empower you on managing your trees.


Ronnie Simpson
Board Certified Master Arborist
Arboriology Inc
http://www.arborologyinc.com

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Delinquencies are starting to pick up so, Comply with Changing State Association Collections Laws Using Axela Technologies

Delinquencies are starting to pick up so, Comply with Changing State Association Collections Laws Using Axela Technologies

  • Posted: Apr 26, 2022
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Easily Comply with Changing State Association Collections Laws Using Axela Technologies

Are your community association’s collections in compliance with changing regulations?

Community association collections laws are changing. For many years, condominium associations and homeowners’ associations (HOAs) had a lot of freedom when it came to handling unpaid assessments. Community associations were able to pursue home and unit owners who fell behind in a variety of ways, because few state regulations interfered with the association’s right to collect overdue assessments. They were largely free to levy late fees, interest, collection costs, and legal fees against the delinquent home or condo owner. Condominium and HOA management firms, when acting as agents for their association clients, were similarly able to offer a collections process as part of their routine service offerings for their clients. This could include issuing warning letters, demand letters, and other collection notices, or even recording liens.

To say those days are over is an understatement. Although there are no federal regulations in place, many states now have condominium or HOA association collections laws that are designed to protect delinquent home and condo owners. While this type of consumer protection is really important, it’s created an unintentional side effect: community associations are more regulated and challenged than ever before when it comes to collecting the fees and assessments that are the lifeblood of their association.

Compliance 1

Community Association Collections Laws Vary by State

Make no mistake, these state laws must be obeyed and the consequences for violating them can be severe. Some states, like Florida, now require additional notices to be sent for certain types of collection activities, delaying the whole process. Other states, such as Texas, have such rigid requirements that many association management companies would rather pay a small fortune for an attorney than seek out cost-effective collections options, believing this is their best option to avoid risk.

Then you have states like Maryland where community association management firms are actually expected to acquire and maintain collection agency licenses in order to send out bills on behalf of their association clients. This is a huge burden being to place on management companies and creates yet another layer of risk. Maintaining a collection agency license requires extensive knowledge and practice of the current community association collection laws regarding the collection of delinquent fees from HOA and condominium unit owners–management companies should not be expected to shoulder that responsibility.

Compliance 2

Choose an Industry-Specific Collections Partner

Axela Technologies is licensed and insured in every state that we service.  Maintaining that knowledge of association collections law is a sacred duty that we take to heart so we can best serve the industry. We even offer indemnification to the associations and association management firms that retain our services to collect from their delinquent homeowners. This concept is so important, it merits serious consideration for any association management firm that wants to focus on delivering service excellence to its association clients without risking being sued for violating a state collection law.

Keeping up with the law changes in your state can be tedious and difficult. Let a specialized HOA and condo association collections agency handle that worry for you. Talk to one of our condominium and HOA delinquency collection experts to learn how best to collect those overdue fees and assessments while keeping your association management business and your association clients safe from the risk of handling collections without a license.

Compliance 3

 

Get your free collections analysis today and start working with one of our many HOA and condominium association collections experts.

Axela Technologies handles all collections on a merit-based system. We’ll help you make sure you aren’t putting your association at risk by violating federal or state consumer protection laws for your condominium or HOA.

 

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ELECTRIC CARS ARE COMING ! IS YOUR PROPERTY READY?

ELECTRIC CARS ARE COMING ! IS YOUR PROPERTY READY?

  • Posted: Apr 22, 2022
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ELECTRIC CARS ARE COMING ! IS YOUR PROPERTY READY?

by VANDELAY COMMUNICATIONS LLC

2022 is looking to be the year of the Electric Vehicle. Whether you like the idea of switching from ICE (internal Combustion Engines) to EV (Electric Vehicles) or not….they are coming and in droves.

Almost every major auto manufacturer is bringing an EV to market this coming year and from the looks of it, the wave will be small at first, but tremendous by 2023. What this means for Residential Condos and apartments, especially in High Rise buildings with limited parking, is you must be planning for it now.

Our company is already working with several Florida Management companies to bring state of the art EV charging equipment to their properties. Up until lately a lot of buildings have been allowing residents to add their own “outlet” or charger to their parking space. What this has done has taxed the electric panel to full capacity as well as contributed to a much higher electric bill because there is no control over demand charges as well as the inability to know exactly what someone is using by way of kilowatt hours.

The equipment today can offer several huge advantages to circumvent all the problems and headaches associated with EV charging as well as bring a new revenue stream to your property. the units today offer the capability to have a totally hands off approach and allow for this new stream of revenue. 90% of all EV vehicles are charging from home. Having this ability, brings value to the property by way of higher rents, higher sales prices of units and no drain on the HOAs funds except for the initial buildout which is paid back over time through correct set up of the systems financial utilities tools.

For more information or a personal presentation please contact us.

STEVEN T. MILANA
Executive Vice President of Development
Vandelay Communications LLC
“Veteran Owned Small Business”

Office: 480-805-1962
Cell: 954-214-2590
steve@vandelaycommunications.com

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BOARD MEMBER to BOARD MEMBER EMAILS: ARE THEY OFFICIAL RECORDS?

BOARD MEMBER to BOARD MEMBER EMAILS: ARE THEY OFFICIAL RECORDS?

  • Posted: Apr 08, 2022
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BOARD MEMBER to BOARD MEMBER EMAILS: ARE THEY OFFICIAL RECORDS?

On January 6, 2022, the Department of Business and Professional Regulation (DBPR), through the Division of Florida Condominiums, Timeshares, and Mobile Homes (Division), entered a Final Order Granting Petition for Declaratory Statement in the matter of In re: Petition for Declaratory Statement, James Hanseman, Petitioner (the Hanesman Declaratory Statement). In this Final Order, the Division Director (Chevonne Christian) stated that all board member to board member emails are official records of the association. Unfortunately, this Order was entered i) without regard to who owns the device from which the email was sent;

ii) without regard to whether the manager was included in the email chain; iii) without regard to whether the email was sent to a minority or majority of board members; and iv) without regard to the board members’ constitutional right of privacy. The decision does not consider the sacrosanct requirement that a quorum of board members is needed to conduct business. If a board member can enter into a conversation with a minority of the board without triggering a required meeting notice, then a board member should also be able to communicate, by any means, with a minority of the board, including email, without it rising to the level of being considered an official record of the association. However, given the scope of the Order, this will likely require an act of the Florida legislature to accomplish.

In general, a petition for declaratory statement may be used to resolve questions or doubts as to how the statutes, rules, or orders may apply to the petitioner’s particular circumstances. These statements are only binding upon the parties who join in the proceeding. The Division issues “declaratory statements” when requested by parties who are unclear about the applicability of portions of the Condominium Act, Chapter 718, Florida Statutes. Declaratory statements are formal written positions taken by the Division on the laws and rules the Division is authorized to enforce and interpret. Importantly, with regard to the Hanesman Declaratory Statement’s precedential value, it has none whatsoever. It only applies to the parties named in the Hanesman Declaratory Statement, which includes the petitioner, Mr. Hanseman, and the Wildewood Springs II-B Condominium Association Inc. This decision is merely persuasive authority, at best. In fact, the Division does not even have to follow their own written precedent. Yet, it is predictive as to how the Division will rule should a similar fact pattern be presented. So, beware!

The Hanesman Declaratory Statement could stand for the broader proposition that all director emails are official records of the association, or perhaps it stands for the narrower proposition that board member emails are not automatically excluded as an official association record merely because the emails were sent from a director’s private email address and privately owned computer. Time will tell, I hope. In the meantime, applying its broadest interpretation means that the Division has now opined that all director-to-director emails are official records. This broad interpretation means such emails must be produced in response to a member’s official records request, unless later excluded from production due to matters of privilege. This broad interpretation also means that for all requests to inspect the official records of the association, directors will have to search their own hard drives and provide copies to the manager or whoever is coordinating the inspection. If this broad interpretation is to be applied, it is yet another burdensome requirement for board members and could be viewed as an extreme overreach of a governmental administrative agency. In light of this possible interpretation and obligation to turn over board member to board member emails, who will want to serve on the board, now?

Let us examine the history of this important topic. On March 6, 2002, Sue Richardson, the Chief Assistant General Counsel of the DBPR, issued an opinion which provided that “[c]ondominium owners do have the right to inspect email 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 emails, but…if the email 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, March 30, 2009), the arbitrator of the Division ordered that

“…emails…existing…on the personal computers of individual directors…are not official records of the association…Even if directors communicate among themselves by email strings or chains, about the operation of the association, the status of the electronic communication on their personal computer would not change. Similarly, an email to an individual director or to all directors as a group, addressed only to their personal computers, is not a written communication to the association.”

The arbitrator reasoned that “[t]his 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.”

Then, on July 1, 2014, the Florida Legislature amended s. 718.112(2)(c) to provide that board members may communicate via email. Just because the legislature clarified that directors may do so does not mean that such email communications should automatically be considered official records of the association. Board members are not publicly elected officials. Yet, the Division’s recent Hanseman Declaratory Statement creates a basis to conclude that the Division desires to hold a director’s email communications to the same standards.

A condominium association is a privately owned entity whose members elect representatives to effectuate the orderly operations of the association. Serving as a board member of a condominium association is not at all akin to holding public office, and in our opinion, board members should not be held to the same standard as that of elected officials. The last thing a community association board member needs is to be micromanaged by one or more cantankerous owners and the vocal minority.

In the Hanesman Declaratory Statement, Ms. Christian takes the position that because §718.111(12)(a), Fla. Stat., provides, in relevant part, that the “official records of the association” include “all of the written records of the association not specifically included in the foregoing which are related to the operation of the association,”

that nothing exempts records when created or transmitted with a board member owned device rather than association owned device.

She then applied what she referred to as the plain meaning of the term “writing,” referring to the definition of the term from Black’s Law Dictionary (11th ED. 2019), which provided “emails constitute a form of writing.”

In fact, had the Florida Legislature intended for emails from one board member to another to be considered official records subject to inspection, then when it amended Chapter 718.112, eff. July 1, 2018, to provide that “members of the board of administration may use email as a means of communication but may not cast a vote on an association matter via email,” the legislature could have clarified that such emails were considered a part of the official records. Obviously, the legislature did not do so. This can only mean that the legislature had no intent whatsoever for a director’s email sent from their personal computer to a minority of other board members to be considered an official record.

What is the end game of the Hanesman Declaratory Statement? The implications are far-reaching, indeed. Does this mean that text messages must be disclosed? What about communications on messaging apps such as WhatsApp and Signal? If not, why not? The logic is arguably the same. What about conversations held with a board member outside of a meeting—must the board member make a disclosure he or she had such conversation at the next noticed meeting? Where does it end?

It is rather common knowledge that there is already a mechanism in the law to acquire documents of every kind. It is called a “subpoena duces tecum” and is used in active litigation to compel production of documents. In this author’s opinion, that is the only circumstance in which a board member’s private emails must be produced, unless and until the Florida Legislature or an appellate court squarely addresses this issue.

As the phrase goes, “one step forward and two steps back.” In other words, while a board member can use email to communicate with a fellow board member, it may come with the steep price of later required disclosure. So, if you want to avoid email disclosure, you may want to consider using a phone to discuss matters. If you want to play it really safe, then be sure to only chat to a minority of board members, too. Until there is an appellate court decision or statutory law that squarely addresses email disclosure, please be sure to discuss these matters with your association’s attorney. In the meantime, perhaps consider using dedicated association-hosted email addresses for association-related emails.
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Beckerballot – State-of-the-art online voting platform to your associations portfolio of services. Powered by beckerlawyers.com

Beckerballot – State-of-the-art online voting platform to your associations portfolio of services. Powered by beckerlawyers.com

  • Posted: Mar 23, 2022
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Beckerballot – Powered by beckerlawyers.com

Technology is an unavoidable and critical part of any business. As such, why not consider implementing a state-of-the-art online voting platform to your associations portfolio of services? BeckerBALLOT.com is the perfect solution to help you streamline operations for your community, is extremely easy to setup, and it will give you the added advantage of increasing both your relevancy and residential appeal, thereby setting you apart from your competition!

Watch our Webinar for more information

 

Here’s what you will learn during the webinar:

  • Walk through of BeckerBALLOT.com and its administration section/voting portal
  • See examples of how others have successfully utilized the platform to benefit their communities
  • View a demonstration on how to upload users, how to set up a vote, how to cast a vote, and more
  • Learn about the functionality and ease of use
  • Find out about flexible pricing options
  • Participate in a Q&A with our customer support team to answer any questions you may have

 

Click here to view upcoming BeckerBALLOT.com webinars.

The voting platform must also comply with a number of other requirements to ensure voter access and voter anonymity for election votes. It is strongly recommended that you speak with your lawyer to ensure that the proper initial legal steps have been taken whenever you decide to offer online voting as a voting option in your community. In Florida the shared ownership statutes require that the board of directors first pass a statutorily-compliant Board Resolution Authorizing Electronic Voting and obtain written consent from the owners wishing to utilize online voting.

Check out BeckerBallot.com/FAQs for more information

 

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