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Employment Law Change That Community Associations Should Be Aware Of : by Ned Bassen, Jamie B. Dokovna

Employment Law Change That Community Associations Should Be Aware Of : by Ned Bassen, Jamie B. Dokovna

  • Posted: Nov 11, 2021
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Employment Law Change That Community Associations Should Be Aware Of

by Ned Bassen, Jamie B. Dokovna of Becker Lawyers

Senate Bill 1532 amending §409.2576, Florida Statutes went into effect. Previously, only employers with 250 or more employees were required to report newly hired and re-hired individuals to Florida’s State Directory of New Hires within 20 days of hiring. Independent contractors were excluded. Now, as of October 1, any employer, regardless of the number of employees that is a “service recipient” defined as “a person engaged in a trade or business who pays an individual for services rendered in the course of such trade or business” must report all new hires and re-hires to the State’s database. Additionally, employers must report their independent contractors who are paid $600 or more during a calendar year.

 

The purpose of the statute is to provide information to the Florida Child Support Program to facilitate the collection and disbursement of child support payments and to monitor and enforce child support payments. The statute, however, is silent regarding penalties for failing to report. That said, employers with less than 250 employees should update their onboarding process to include the new reporting requirements and all employers regardless of size should determine whether reporting requirements exist for any independent contractor used by them, update onboarding policies to reflect the changes in the law and provide training for those who perform onboarding and payroll, so they are aware of these changes.

by Ned Bassen, Jamie B. Dokovna ( Learn more click our V Cards )

   

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Community Association Meeting Guidelines by Concierge Plus

Community Association Meeting Guidelines by Concierge Plus

  • Posted: Nov 11, 2021
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Community Association Meeting Guidelines

by Concierge Plus

Very involved community associations often have large contentious meetings when there is a hot button issue.

We’ve created the following guidelines for meetings so everyone participating knows what to expect.

Association Pledge & Basic Meeting Protocol

It’s only a “meeting” if it is organized and a good meeting conduct is important regardless of purpose. There should be an opening statement by the chairman (or a selected member) as to the main purpose (topic) of the meeting.

The ground rules for the meeting; address the chair, the chair decides who speaks, and for how long.

Many community associations start their meetings with their Association Pledge & Basic Meeting Protocol. See an example below:

The Board encourages all to abide by this pledge of conduct: While we might disagree, we will be respectful of one another. We will direct our comments to the issues, avoid personal attacks and abstain from acts or remarks which may interfere with the work of association management, employees, support, and board officers.

Owners are asked to submit questions on topics before the meeting and the presiding hosts will answer those questions. Observers will be afforded 3-minutes per comment to add anything missed in discussion. Only agenda topics will be discussed.

With our File Sharing feature, you can securely store and share your Association Pledge document with permission-based access.

Questions for the meeting

Owners should be notified about upcoming meetings ahead of time either via your newsletter, community calendar or display screens installed in the elevators or/and lobbies. Owners should be able to submit questions before the meeting so they can be answered during the presentation. If anyone want to “add” something, they can ask unanswered questions or make a new point during the meeting.

You should always record the meetings and you should always prepare minutes.

On-Demand Webinar

We recently had a webinar with our friends at GetQuorum titled What It Takes to Run a Great Hybrid Meeting.

We shared insight on how to navigate the complex nature of hybrid meetings, and shared tips & tricks for more effective hybrid meetings.

 

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ARE CONDO FEES BAD?

ARE CONDO FEES BAD?

  • Posted: Oct 29, 2021
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ARE CONDO FEES BAD?

by Steven J. Weil, Ph.D., EA, LCAM, President

Royale Management Services, Inc.

 

Your maintenance fees cover many of the same things you would need to pay for as a homeowner.

What’s included?   As a condo owner, it’s useful to know how your maintenance fees are determined. No one is profiting from these fees. They are determined by the board of directors who are elected by the owners and charged with responsibility for operating the association. They represent your share of the common expenses as agreed to in the governing documents.

What you pay is determined by estimating the costs for operation and maintenance for the budget year. These costs include controllable costs — those over which the board can exercise control, e.g., wages of association employees, improvements, along with the cost services offered to owners and residents — as well as non-controllable costs, e.g. insurance, water, garbage collection, electricity, repairs, and existing long-term contracts such as bulk cable agreements.

Each year the board and management review the prior year’s costs and do everything in their power to project the cost for the coming year. These costs become the budget’s expense line items; and once they are calculated, any income from other sources (such as laundry and outside rental income) is taken into account. The total projected expenses are then reduced by the outside income, and whatever is left becomes the maintenance for the coming year. After that, it’s a simple matter of calculating each unit owner’s share of this amount based on the formula set forth in the governing documents.

 

In many associations, non-controllable expenses make up the majority of the expenses, with insurance often being more than a quarter of the total expenses. Add to this, utilities (which varies), long-term contracts, and required repairs and upkeep, and you can see that the expenses the board can control can be limited often to less than 20% of the total expenses.

The board must also fully fund reserves based on the current replacement cost of reserve items. Reserves may not be waived or reduced by the board. They can, however, be reduced or waived by a vote of the owners. Reserve funding is added to the cost of the maintenance fees already calculated and becomes part of the regular maintenance payment.  Reserves cover the wear and tear on items with a useful life of more than one year, such as roofs, painting, and paving, along with other major items that will wear out over time.

Each association’s budget is different. Accordingly, maintenance fees generally reflect things that are unique to each association. For example, associations with 24-hour security personnel, bulk cable contracts that include the internet, and expensive-to-maintain lobbies will have higher maintenance fees than those that provide fewer services and amenities.

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The more trouble your condo is in, the more developers may be interested in buying you out.

The more trouble your condo is in, the more developers may be interested in buying you out.

  • Posted: Oct 26, 2021
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The more trouble your condo is in, the more developers may be interested in buying you out.

 

DEVELOPERS ARE ON THE PROWL

By Eric Glazer, Esq.

I got a call this week from The Miami Herald.  They asked if I had heard about the prominent developer who approached the owners of the other Champlain Towers buildings that are still standing, offering to buy out all of their units.  I had not, but I’m not surprised in the least about it.  In fact, it’s going to be happening more and more.  Developers are going to be approaching lots of owners in condominiums that are distressed.

 

Why approach the owners in the remaining Champlain Towers condominiums?  I’m sure the developer is thinking that these owners may now have a hard time selling their condo units on the open market because there may not be many buyers interested in purchasing a unit in a condominium by that name.  The Champlain Towers will forever be remembered as the building that collapsed and where nearly a hundred innocent people died.  I think the developer is right.  It will be tough to sell your units in the remaining Champlain Towers condominiums.

 

The truth is……if that’s the case…and it is next to impossible to now sell your condo unit in these buildings, the developer can look like a knight in shining armor, if the price they offer is fair and reasonable.  It may very well make sense for the owners to seriously consider the developer’s offer.  At the remaining Champlain Towers buildings, the developer’s offer is contingent upon 95% of the owners agreeing to sell to the developer.  If less than 95% of the owners agree to sell, the deal is off the table.  That’s because if at least 5% of the owners vote against a plan of “termination” the developer’s plan to “terminate” the condominium, knock it down and build a more expensive one fails.  So, the developer needs to acquire at least 95% to ensure their plan succeeds.

 

We know that it’s about to get more expensive to live in a condominium because it looks like it will become more difficult to waive reserves and buildings will be undergoing more frequent inspections.  Repairs will be needed more than ever before which means money will be needed like never before.  When unit owners don’t have the money or don’t want to spend the money on a building that’s already old, rest assured that developers will be there ready to make an offer to everyone so that the property can be bought, knocked down, rebuilt and sold.

 

Over the last few years the law has made it more difficult to terminate a condominium.  As a result of the tragedy at The Champlain Towers I certainly expect the pendulum to swing back the other way.  Terminations will become easier.  Developers will use their eyes and airs searching for the most vulnerable properties, meaning the ones that will require the greatest cost to repair.  The laws regarding termination continue to evolve, but if I am a developer I may want to be cautious about buying units in a condominium that requires 100% of the owners to agree to termination and that does not have Kaufman language or “as amended from time to time” language.  In these types of condominiums, one owner who refuses to sell may wind up screwing up the developer’s grand plans.

 

 

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The Florida Bar task force said Florida Condo Associations Need Reserves in Place for Major Safety Repairs!

The Florida Bar task force said Florida Condo Associations Need Reserves in Place for Major Safety Repairs!

  • Posted: Oct 19, 2021
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The Florida Bar task force said Florida Condo Associations Need Reserves in Place for Major Safety Repairs!

 

Here are seven findings of the 179 page report of the Surfside task force:

1- The absence of uniform maintenance standards outside of boards should be established.

2- Efforts to make condo repairs of life safety issues should no longer require a full vote of the association membership.

3- Thorough and consistent inspections should be required.

4- Boards should be empowered to borrow money to pay for life safety repairs.

5- Local governments can no longer rely upon sovereign immunity to protect themselves from civil claims.

6- The Florida legislature can no longer raid the $4 door tax trust fund by diverting that money to the general fund.

7- Thirty percent of that money should go towards educating boards and owners about repairs to make buildings safe

 

 

A task force report prepared by a section of the Florida Bar recommended that lawmakers overhaul the state’s condominium laws following the Surfside building tragedy that killed 98 people, urging a process to address inspections and ensure proper reserves are in place to make major safety repairs, among other issues.

The task force was formed by The Real Property, Probate and Trust Law Section of the bar, convening lawyers who deal with condominium and association laws. Its purpose was to recommend ways to prevent future failures, not to investigate or place blame for the 12-story building collapse.

“The lack of uniform maintenance standards or protocols, and the unguided discretion given to boards of directors to determine when, how, and if life safety inspections should be performed, requires legislative intervention,” concluded the 179-page report that was released earlier this week.

 

Champlain Towers was 40 years old and in need of major repairs when it collapsed on June 24. It’s led to officials looking at the need to ensure other aging structures are safe. The task force said 912,376 Florida condo units housing more than 2 million people are at least 30 years old, including more than 105,000 older than 50 years and nearly 328,000 built between 40 and 50 years ago.

Overall, Florida has more than 1.5 million condo units operated by 27,599 condo associations, the report said.

 

Among recommendations are giving association boards the right to make special assessments for major repairs to protect resident safety without a full association vote. It also requires associations to build up reserves for such projects as recommended by engineers in order to be able to pay for repairs. Those would be in addition to accounts in place for routine maintenance.

While the report said the vast majority of condominium associations are operating in a reasonably safe manner, there needs to be more consistency with inspections and the information provided in them needs to be available to residents.

“Unit owners and boards may also resist such maintenance because of cost, lack of reserves, disruption and inconvenience,” the report said.

The report also recommended allowing condominium boards to borrow money to pay for life safety repairs so the cost could be spread out over years.

Local governments should also have a higher level of accountability for inspection reports, including stripping them of sovereign immunity protections, which limit civil claims against government agencies to $200,000.

 

“Condominium residents should be entitled to rely on the inspections and reports performed by or on behalf of local governments, and local governments should not be able to avoid responsibility for the content and conclusion of building inspection reports,” it said.

Current law has limitations on associations and unit owners to take civil action against developers for design and construction flaws. Those limitations should be lifted, the report said.

The state division that oversees condominium education and compliance is largely funded by a trust fund built on a $4 per unit fee. The task force recommends the Legislature not be able to “sweep” the trust fund for other state budget purposes.

It also recommends that 30 percent of the trust fund be used to educate association boards and residents about obligations to make repairs to ensure buildings are safe.

 

Thank You, for the Article:  MARY ELLEN CAGNASSOLA 

 

 

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What happens when a board member who is in attendance at a board meeting fails to cast a vote on a matter brought before the board for a vote?

What happens when a board member who is in attendance at a board meeting fails to cast a vote on a matter brought before the board for a vote?

  • Posted: Oct 18, 2021
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What happens when a board member who is in attendance at a board meeting fails to cast a vote on a matter brought before the board for a vote?

by 

A director of the association who is present at a board meeting at which action on any corporate matter is taken is presumed to have assented to the action taken unless he or she votes against such action or abstains from voting. A director who abstains from voting on any action taken on any corporate matter is presumed to have taken no position with regard to the action. A vote or abstention for each member present must be recorded in the minutes of the meeting. Condominium: Section 718.111(1)(b), Florida Statutes Cooperative: Section 719.104(8)(b), Florida Statutes

 

Owners and the Board of Directors

Every association board I know want’s the owners in the community they serve to be informed and involved.  That is why we send out notices of board meetings and offer owners the ability to take part in those meetings by Zoom or in person.

The association’s board represents the owners of your association and has the important job of making decisions on behalf of the association. The board has a duty to protect the property value of the association’s owners along with the safety of visitors and residents to the association. They have a responsibility for oversite of association funds and association management.

The board is also charged with complying with and enforcing the associations governing documents, to do this they have the ability to hire professionals and advisors, including; managers, engineers accountants, attorneys and contractors and while in some cases the law requires then association to seek bids, it never requires the association to hire the low bidder. Instead, it is the board’s responsibility to choose the vendor and bid they feel fits the needs of the association best.

In many cases owners only take notice of board’s action when it effects their pocketbook; for example, when they receive a notice of special assessment, or their maintenance fees are increased. By that time the vote has most certainly been cast, as the meeting to discuss and approve the project or budget have already been held. The best time to get involved, so that you understand why an increase or assessment is necessary, and have a chance to provide input, is early. Attend board meetings, especially those to discuss projects, review contractor recommendations, and make decisions about what needs to be done.

The recent events at Surfside serve to point out what happens when important projects and/or maintenance are delayed due to unit owner objections to costs or project necessity.  These delays are often caused by a small group of very vocal unit owners that think they speak for the owners, when in fact it is the board that speaks for the owners, as they are the sole elected representatives of the owners.

At best the delays caused by these small vocal groups cost additional time and money, at worst they can be catastrophic. It’s important for owners to support the board when the time comes to proceed and that they participate early in the process, providing input and asking the questions they feel should be addressed before decisions are made and not after.

Royale Management Services, Inc. has been serving South Florida since 1984. The company was founded to provide high quality management and accounting services for business and individuals, Royale Management Services, Inc. expanded to the Community Association and Home Owner’s Association Management business in 2000.

Our team members are highly trained in all aspects of community association management and customer service. We take pride in delivering property management services that work!

Royale Management Services, Inc.
2319 N Andrews Avenue
Fort Lauderdale, FL 33311

Phone: (954) 563-1269
Toll Free: (800) 382-1040

Email: cam@rmsaccounting.com

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Is Your Association Prepared? Expect Supply Shortages – KBR Legal

Is Your Association Prepared? Expect Supply Shortages – KBR Legal

  • Posted: Oct 16, 2021
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Is Your Association Prepared?

Expect Supply Shortages  

There’s news once again reporting food and product supply shortages are on the horizon, if not already here, due to what can only be described as a logistics disaster. This morning’s news reported that there are thousands of shipping crates snarled in a logistical nightmare waiting to be off loaded with no relief in sight. One news source reported 250,000 crates are waiting to off load.  While no one is yelling “fire in a crowded theater,” (yet) it likely makes sense to get ahead of your association’s inventory needs. That said, hoarding is never a good idea. But, keeping extra inventory on hand may make sense until the supply chains are working correctly again.

   Sources for the following include CBS News, the Wall Street Journal and Axios:

“American families are going to face a two-pronged assault:

1. Empty shelves at toy and grocery stores
2. Inflated prices on the toys and groceries that are available

  At this very moment, there are 250,000 shipping containers stuck at sea off the east and west coasts, waiting to be unloaded and it could be months before they get to store shelves. But Biden is presiding over one of the biggest supply chain bottlenecks since WWII:

  • Ships cant dock because ports are full
  • Ports are full because there aren’t enough truck drivers to take the shipping containers away
  • When truckers do arrive, the ports are poorly staffed and they can’t offload fast enough, resulting in truck drivers who used to pick up 20 loads/week, now only able to take six
  • The cost of shipping a container from China to the U.S. is now $20,000, four times higher than this time last year.

  It’s already begun: Stores across the country are already restricting supplies. Try not to have flashbacks to March 2020, but Costo and Walmart have announced they are limiting sales of toilet paper in some stores. And around the country, there are shortages of goods on shelves in Target, Costco, Home Depot, and Sears.

 Warning about your Christmas feast: Axios is reporting that food supplies will also be impacted: “Grocery stores could have limited quantities of a number of products heading into the holidays after some of the country’s biggest food manufacturers say they’re short on supply.”

The Boy Scout motto “Be Prepared” comes to mind!

 

 Rembaum’s Association Roundup

The community association legal news that you can use!

The free e-magazine for Community Association Managers, Board Members, Owners & Developers

Have an association related question? Find your answer at

RembaumsAssociationRoundup.com

 

Condo Board Member Certification via Zoom on October 22nd

Kaye Bender Rembaum offers free certification courses for homeowners’ association and condominium association board members. Please click here for more information!

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Becker provides a variety of resources to help our community association board members, managers, and owners thrive.

Becker provides a variety of resources to help our community association board members, managers, and owners thrive.

  • Posted: Oct 08, 2021
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Becker provides a variety of resources to help our community association board members, managers, and owners thrive. From educational classes to a leading industry blog and podcast, informative videos, and other ancillary services and products geared exclusively to community associations, we’re here to help you navigate the complexities of community living.

 

NEW PODCAST
Take it to the Board with
Donna DiMaggio Berger

 

As leaders in Community Association Law, we not only helped write the law – we also teach it.
Becker’s robust continuing education program provides over 200 classes per year on a variety of topics ranging from board member certification to compliance, and everything in between.

Our most popular classes are now available online!

PREPARING FOR THE FUTURE
Interdisciplinary Sea Level Rise Advisory Team

 

Community Association Industry Trailblazers: Becker Continues to Deliver Cutting-Edge Technologies

Your Site. Your Way. Same Day! Provide owners with easy access to association documentation with this legally compliant website management solution.

 

Seamlessly facilitate and increase member participation in important votes with this easy-to-use, secure voting software solution that’s compliant with state law.

 

 

 

Annual Retainer Benefits

  • Preferred Hourly Billing
  • Annual Meeting & Election Notice Packages
  • Preferred Pricing for BeckerBALLOT.com
  • Exclusive Access to MyCommunitySite.com Discounts
  • Online Collections Status Reporting Portal
  • Community Association Leadership Lobby (CALL) Membership
  • First access to Becker’s Community Association Guidebook Series

For more information on becoming an annual retainer client, please call 954.987.7550.

 

 

 

 

 

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Online voting system option for your members, those members consenting to vote online will be invited to register and vote using BeckerBALLOT.

Online voting system option for your members, those members consenting to vote online will be invited to register and vote using BeckerBALLOT.

  • Posted: Sep 24, 2021
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Online voting system option for your members, those members consenting to vote online will be invited to register and vote using BeckerBALLOT.

Eligible voters will be invited to activate their account online and vote!

 

The simplicity and security of our software makes BeckerBALLOT the perfect solution for you!

Use the software for board of directors votes, amendment of governing documents, waive reserves and approval of material alterations and more! Your members need to simply log in, cast their votes and be on their way.

 

 

VOTERS

If your association has joined BeckerBALLOT and you are ready to vote ONLINE, you are in the right place!

Your association has provided you with the ability to easily cast your vote and ensure that no matter where you are, you can participate in important association voting.  It’s fast, accurate and secure.  You’ll have the confidence in assuring your vote is counted, all without the necessity of filling out and mailing your paper ballot!

ADMINISTRATORS

BPBALLOT, the original electronic voting software is NOW BeckerBALLOT, a joint partnership between Becker & Poliakoff and SHYFT digital.

We offer an easy-to-use, secure electronic voting software solution that is compliant with state law. We provide the ability for members in condominiums, cooperatives and homeowner associations to cast their votes online.  You will be able to easily and seamlessly facilitate and increase member participation in important votes. All votes stay secure, anonymous and tracked for validity.

Once your Board adopts a Resolution which offers an online voting system for your members, members consenting to vote online may register and vote using BeckerBALLOT.com. Read the full electronic vote process here.

 

 

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