Become our Member : JOIN SFPMA TODAY   LogIn / Register: LOGIN/REGISTER

SFPMA Industry Articles | news, legal updates, events & education! 

Find Blog Articles for Florida’s Condo, HOA and the Management Industry. 

Not all Expenditures Can Be Collected from Delinquent Owners as Part of the Collection/Foreclosure Process – Why Not?

Not all Expenditures Can Be Collected from Delinquent Owners as Part of the Collection/Foreclosure Process – Why Not?

Not all Expenditures Can Be Collected from Delinquent Owners as Part of the Collection/Foreclosure Process – Why Not?

It is clear that Florida’s community association collection/foreclosure legislation allows associations to foreclose an owner’s home for nonpayment of assessments. However, not all of the monies expended by an association fit into the definition of an assessment. For example, let’s say that an association has a right to correct a deficiency on an owner’s lot, but the declaration of covenants at issue does not support converting the money spent into an assessment. In that event, the monies expended by the association would have to be recovered as part of a breach of contract action rather than as part of an assessment/foreclosure action. Sometimes, however, the declaration will provide that the monies expended can be treated as an assessment. If that is the case, then before those expenditures can be included as a part of the collection/foreclosure process, the board would need to convert the expenditure into an assessment against the noncomplying owner. (As to how that is done, you can discuss it with your community association’s attorney.) Florida’s collection/foreclosure legislation also provides for recovery of certain costs incidental to the collection/foreclosure process, but recovery of such cost must be rooted in a statute or by contract (i.e., the declaration of covenants).

Let’s look at the fee charged by a management company for sending the notice of late assessment letter, often referred as a NOLA letter, as required by Florida Statute, and determine whether it is a recoverable cost in an association’s collection/foreclosure action and whether including the NOLA fee as a part of the association’s collection/foreclosure proceedings violates the Federal Fair Debt Collection Practices Act (the Act).

The Act was passed into law because of abundant evidence of the use of abusive, deceptive, and unfair debt collection practices. It does not matter whether a debt collector used their best efforts to comply with the Act. Only strict compliance matters when it comes to the enforceability of the Act against a debt collector. Clearly, the association is not considered a “debt collector” pursuant to the Act and, for the most part, neither are management companies, with this caveat: the pendulum may swing in the future to the notion that management companies are, in fact, debt collectors. It seems that at least for the time being they are shielded from the Act. However, what is patently clear is that an attorney who provides collection/foreclosure services to assist their association clients with delinquent assessments is certainly considered a “debt collector.” Therefore, the attorney must be vigilant when reviewing the delinquent owner’s account ledger to ensure that the items set out in the ledger can lawfully be included in the association’s collection/foreclosure action. A recent case reminds us of this fact.

On February 4, 2025, in Glover v. Ocwen Loan Servicing, Case no. 23-12578 & 12579 (11th Cir. Fla. 2025), the 11th Circuit of the Federal Court of Appeals found that Ocwen as a debt collector violated the Fair Debt Collection Practices Act when it charged consumers an optional fee when making expedited mortgage payments because the loan servicer charged an amount that was not expressly authorized by the agreement creating the debt or permitted by law. The takeaway from this case is that a debt collector can only collect debts that are authorized by law or by contract with the debtor.

It was only several years ago that the Florida legislature enacted into law the requirement that an association assessment debtor must be provided the NOLA correspondence from the association providing the debtor a final opportunity to pay their delinquent assessment debt prior to turning the matter over to the association’s legal counsel to commence collection/foreclosure proceedings where fees and costs accrue against the debtor. See S. 718.121 and S. 720.3085, Fla. Stat.

Management companies are typically tasked with preparing and sending the NOLA letter on behalf of the associations they manage before turning the file over for collections to the association’s attorney. In this regard, a management company that is charging such a fee but has not amended its contract with the association to provide for charging the fee for the notice of late assessment would be wise to consider amending its contract with the association they represent to provide for this charge. Doing so would ensure that the management company, even though it may not be considered a “debt collector,” would have a solid basis for charging the fee because it would be based on a contractual obligation charged to the association. This is important because the NOLA, as mandated by Florida Statutes, does not at all provide for the recovery of a fee in regard to sending such a letter. So, while management companies may not be considered a “debt collector” today, this could change in any new case at any time. Why take the chance?

Now, let’s analyze whether the attorney who is collecting the past due assessment debts for the association can include the management company’s NOLA fee paid by the association to the management company in the collection/foreclosure action against a delinquent owner. Keep in mind, as we go through the analysis, that the “debt collector” (in this case, the attorney) can only collect debts authorized by contract or by law, and also remember that the relevant laws governing the NOLA letter do not provide for a specific cost recovery for the management company sending of the notice of late assessment letter. Thus, at a minimum, there should at least be a contractual obligation that the association pay the management company for sending the NOLA letter. But that may not always be the case even though it is the better practice.

Part and parcel with the collection/foreclosure process is the recording of an association assessment lien. To be valid, such a claim of lien must state the description of the parcel, the name of the record owner, the name and address of the association, the assessment amount due, and the due date. The claim of lien secures all unpaid assessments that are due and that may accrue subsequent to the recording of the claim of lien and before entry of a certificate of title, as well as interest, late charges, and reasonable costs and attorneys’ fees incurred by the association incident to the collection process.

So, while the relevant statutes do not provide for the association to be able to recover a fee for the sending of the NOLA letter, it certainly should be considered a “reasonable cost incurred by the association incident to the collection process,” most especially when the fee charged for sending the NOLA letter is a contractual obligation between the association and the management company.

There even exists an argument that, even if the management contract between the association and the management company does not provide that the association is responsible to pay the management company for the preparation and sending of the notice of late assessment, it is still considered a “reasonable cost”; but when you plug in the holding of the aforementioned case, the collection of the cost associated with the NOLA letter by the debt collector (i.e., the attorney representing the association), the better practice is to ensure that the contract between the management company and the association contains a provision that the association is responsible to pay the management company a reasonable fee for each such notice of late assessment letter sent.

Perhaps now you have a better understanding of why, at times, the association’s collection/foreclosure attorney cannot include a particular line item on the delinquent owner’s account ledger in the collection/foreclosure action. If you have any questions regarding the collection/foreclosure process, most especially which charges can and cannot be included, please be sure to discuss them with your association’s attorney.

 

Tags: , , ,
HOUSE BILL 913 – Part Three

HOUSE BILL 913 – Part Three

HOUSE BILL 913 – Part Three by Eric Glazer

This bill, filed by Representative Vicki Lopez is even bigger than I originally thought and is going to take up more than 3 blogs.  It is packed with many potential changes to Florida Statute 718.  It already has passed one House Committee and there may be no stopping it.

CONFLICTS OF INTEREST

It is a conflict of interest for any person who performs a structural integrity reserve study or a milestone inspection to provide or contract to provide services for the repair or replacement of the condominium property that was the subject of such structural integrity reserve study or milestone inspection, or to have a financial interest with the person or entity providing the repair or replacement services.

RECALLS

Rejection of a unit owner’s recall agreement under this section applies when the recall agreement:

a. was improperly served;

b. was executed by a person who was not a unit’s record  owner or designated voter;

c. was previously marked for the removal of any board member;

d. does not contain any markings that indicate the selection by a unit owner to either remove or retain a board member; or 

e. does not contain the signature of the unit owner.

3. there is a rebuttable presumption that a unit owner executing the recall agreement is the designated voter for the unit.

An association may not enforce a voting certificate requirement if the association has not enforced such requirement in all matters requiring the use of voting certificates in the year immediately preceding service of the recall agreement.

4. A rescission or revocation of a unit owner’s recall  agreement must be in writing and delivered to the association before the association is served with the written recall agreement. this subparagraph must be liberally construed to ensure a unit owner is not disenfranchised by an association in a recall and to prevent an association from failing to certify a recall agreement on a technical omission which is not a part in the discharge of the unit owner’s voting rights.

Even if your right to vote was suspended — you still have the right to vote in a recall.

HURRICANE PROTECTION

Unless otherwise provided in the declaration as originally recorded, or as amended, a unit owner is not responsible for the cost of any removal or reinstallation of hurricane protection, including exterior windows, doors, or other apertures, if its removal is necessary for the maintenance, repair, or replacement of other condominium property or association property for which the association is responsible.

The board shall determine if the removal or reinstallation of hurricane protection must be completed by the unit owner or the association if the declaration as originally recorded, or as amended, does not specify who is responsible for such costs. if such removal or reinstallation is completed by the association, the costs incurred by the association may not be charged to the unit owner. if such removal or reinstallation is completed by the unit owner, the association must reimburse the unit owner for the cost of the removal or reinstallation or the association must apply a credit toward future assessments in the amount of the unit owner’s cost to remove or reinstall the hurricane protection.

Tags: ,
Budget preparation time is upon us! We strongly encourage, that every year around this time, association managers and Boards review and ensure that your capital reserve study is accurate and up-to-date.

Budget preparation time is upon us! We strongly encourage, that every year around this time, association managers and Boards review and ensure that your capital reserve study is accurate and up-to-date.

Budget preparation time is upon us! We strongly encourage, that every year around this time, association managers and Boards review and ensure that your capital reserve study is accurate and up-to-date.

This is one of the most important decisions a board will make for the future of their association. It is an easy and effective way to ensure your community’s capital replacement items are being properly funded with minimal impact on the individual homeowners. 

With the recent update to the Capital Reserve Study Standards, the impact of inflation and supply chain issues over the past few years (in some cases resulting in costs as much as 50% higher for some typical components), it is even more critical to have an updated reserve study to ensure the financial health of your community.

To stay on track for a healthy financial future, it is recommended that your Reserve Study be updated every three (3) years.

The Falcon Group Capital Reserves team consists of 6 CAI Certified Reserve Specialists (RS) as well as a Professional Reserve Analyst (PRA) designation awarded by the Association of Professional Analysts.

Contact our Reserve Specialists today for a new or updated reserve study!

 

Contact Us:

Tampa Bay

1211 1st Avenue, N.
Suite 106
St. Petersburg, FL 33705

P (813) 438-3568

West Palm Beach

5651 Corporate Way
Suite 4
West Palm Beach, FL 33407

P (561) 290-0504

Miami

15405 NW 7th Avenue
Miami, FL 33169

P (305) 663-1970

Capital Reserve Study ( what is involved )

The primary purpose of a Reserve Study is to offer recommendations as to the amount of money a community, building or other organization should set aside on a yearly basis for the future replacement or major refurbishment of their commonly owned elements.

The Falcon Group believes that a properly funded capital reserve program is the right formula for keeping a community’s physical assets in prime condition while providing some key benefits to residents. We strongly recommend updating your Capital Reserve Study Every 3 years.

A regularly updated Reserve Study can provide the following benefits:

  • Maintaining and/or increasing property values by maintaining exterior appearances through timely repair or replacement of common elements.
  • Facilitating project efficiency and cost effectiveness, as well as, minimizing disruptions and unit owner inconvenience by allowing the association to secure contractors to complete an entire project during a finite and desired schedule.
  • Reducing the likelihood of member dissatisfaction associated with the passage of large or sudden assessments.

All of our Capital Reserve Studies are prepared under the direction of a Reserve Specialist (RS) and/or a Professional Reserve Analyst (PRA).

The Falcon Group has prepared over 3,500 Capital Reserve Studies. Each Capital Reserve Study we perform is a customized analysis, prepared in coordination with our Reserve Specialist (RS) and our client, and is based on a “real-world” methodology for each item in regards to:

  • Inspection

  • Evaluation for repair or replacement

  • Evaluation for anticipated “Useful Life”

  • Integrated into a repair or replacement plan and budget

 

Tags: , , ,
Florida’s brewing condo crisis as property values drop in once-coveted retirement haven

Florida’s brewing condo crisis as property values drop in once-coveted retirement haven

  • Posted: Mar 03, 2025
  • By:
  • Comments: Comments Off on Florida’s brewing condo crisis as property values drop in once-coveted retirement haven

A slow-motion crisis is unfolding in Florida’s condo market, threatening to upend the state’s image as a haven for retirees and reasonably priced beach living.

Owners of the state’s older condos are bracing for steep special assessments, while racing to sell their homes and receiving only tepid buyer response.

Amid a property market that’s still vibrant for nearly every other segment, Florida’s aging condominiums are losing value. And nearly 1,400 buildings are now blacklisted from receiving mortgage financing, making those apartments an even-tougher sell.

Thousands of Florida condo units face special repair assessments which are making them difficult to sell — and causing them to lose value quickly. oldmn – stock.adobe.com
Thousands of Florida condo units face special repair assessments which are making them difficult to sell — and causing them to lose value quickly. oldmn – stock.adobe.com

At the heart of this turmoil is a basic reality: Florida’s aging condo buildings desperately need repairs, and state officials are forcing them to assess (and pay for) those long-overdue upgrades.

Under a law enacted after the tragic 2021 collapse of Champlain Towers South in Surfside, which saw 98 people lose their lives, condo boards may no longer defer major structural improvements to another day — or decade. The “Building Safety Act” required every condo tower in Florida aged 30 years or older to complete a structural integrity study by the end of 2024, to get a full grasp of what problems need fixing.

 

This year, the tab for those repairs comes due. Condo boards must now set aside funds to fix the issues found in those studies — from concrete restoration to balcony overhauls. And the assessments on individual condo owners are looking both pricey and unsettling.

“You’re going to see a massive reduction in the value of these buildings based on these giant special assessments and the work that has to be done,” said Orest Tomaselli, CEO of Strategic Inspections, which advises condo boards nationally on how to shore up their reserves.

In Florida buildings he’s worked with, Tomaselli has seen special assessments as low as $250 per month, to a property that levied $2,500 per month, per unit owner, for a three-year stretch.

The assessments result from inspection and repair mandates stemming from the 2021 Surfside building collapse that killed 98 people. AP
The assessments result from inspection and repair mandates stemming from the 2021 Surfside building collapse that killed 98 people. AP

“There are real people in these units that may be displaced,” Tomaselli said of the assessments, “that may lose their nest egg and may lose tremendous amounts of value in their units.”

”At Aventura’s Mediterranean Village, a waterfront condo complex with a marina out front, unit owners were hit with six-figure special assessments last year, some as high as $400,000, according to published reports.

 

At Miami’s Cricket Club, a 50-year-old waterfront tower burdened with $134,000 special assessments per condo, 23 of the building’s 217 condos are currently for sale, according to brokerage Compass. In a Miami market where the median condo price was $445,000 in the fourth quarter of last year, condos at the Cricket Club are seeking buyers with prices as low as $220,000 for a 1,950-square-foot two-bedroom on the 19th floor.  (The owner initially sought $330,000).

The Summit Towers in Hollywood, FL is facing a $56 million assessment. Google Maps
The Summit Towers in Hollywood, FL is facing a $56 million assessment. Google Maps

Meanwhile, at Summit Towers in Hollywood, a building-wide special assessment of $56 million led to the ousting of four board members in a January election, in favor of new members who promised “a more moderate approach” to building up reserves, said Amy Greenberg, a broker and resident of the building with several listings there.

“A lot of people moved here to be able to retire and live their life here, and they’re on fixed incomes,” said Kathleen DiBona, a 50-year resident of Hollywood who serves as president of the Hollywood Beach Civic Association. “They’re having a difficult time being able to manage all that’s coming and hitting them.”Many owners whom DiBona knows in Hollywood, a city dotted with older towers, are seeking to off-load units with little success. Others, she said, have dropped insurance coverage for their condos so they can manage to pay their special assessments.

Failure to pay these assessments will impact more than just the individual owners who can’t afford them. If 15% of unit owners in a building default, the entire property could become ineligible for mortgage financing, according to Tomaselli of Strategic Inspections.

“What happens if nobody can get a loan to buy a unit in your building?” says Joseph Hernandez, a Miami-based partner in the real estate group of law firm Bilzin Sumberg. “It essentially makes the units in your building unsaleable and it makes the value of those units go down.

“We may see a lot of condo projects go into distress.”

Some could already be getting close. In February, Fannie Mae, the national mortgage finance agency, updated its running list of “unavailable” US condo buildings, meaning they are no longer eligible for mortgage financing. Of the 4,885 buildings currently on the list, 29% are located in Florida, the highest share of any state. The top reason: “critical repairs or deferred maintenance,” according to a person familiar with the roster.

One newly flagged example is 4000 Island Blvd., a 32-story condominium in Aventura’s exclusive Williams Island, which was built in 1985 and added to Fannie Mae’s no-lending list in January. At least 24 unit owners are trying to sell, according to Compass. Barry Sytner, the condo board’s president, called the building’s inclusion on Fannie Mae’s list “incorrect,” noting that the property just secured a bank loan commitment to cover expenses tied to its 40-year inspection.

There are roughly 1.1 million condo units in Florida that are 30 years old or more, and subject to the new law, according to the Florida Policy Project. Of those, 58% are concentrated along the Southwest and Southeast coastal counties, in places like Tampa, Clearwater and the greater Miami metro area, including Fort Lauderdale and Palm Beach County.

Around two dozen condos are up for sale in this Aventura, FL condo building, according to reports. miamiresidence.com
Around two dozen condos are up for sale in this Aventura, FL condo building, according to reports. miamiresidence.com

That means the law’s reach extends to more than half of all condo owners in Florida’s famed retirement enclaves. According to brokerage ISG World, apartments that are over 30 years old accounted for 86% of all Southeast Florida condo listings in the fourth quarter of 2024 — a total of  17,198 properties for sale across Miami-Dade, Broward and Palm Beach counties.

Yet even as thousands of newcomers flock to the region, these abundant and discounted units are languishing on the market, weighed down by the threat of special assessments and uncertainty over looming repair costs.

“The fear of the unknown is scaring the hell out of potential buyers,” said Craig Studnicky, ISG’s chief executive officer.

“Remember that show, ‘Let’s Make a Deal?’ ” Studnicky said. “They may get a special assessment and it could be quite modest, which means you just made one hell of a deal. But what if you’re wrong, and the special assessment is gargantuan?  Not only is the special assessment big, but the scope of construction is big, and you’re going to be living in a construction site for the next two years.”

The full extent of special assessments is still an open question for many Florida properties. While the state deadline for condos to submit their structural integrity studies was on Dec. 31, only 39% of buildings in Southeast Florida have done so, according to the Miami Association of Realtors.

Some of that’s because engineers were simply not available, amid a statewide rush to get these studies completed. Others could be gambling that enforcement won’t be robust or swift, said Peter Zalewski, a Miami-based broker, analyst and condo investment consultant.

“You’re going to see a massive reduction in the value of these buildings based on these giant special assessments and the work that has to be done,” said Orest Tomaselli, CEO of Strategic Inspections.
“You’re going to see a massive reduction in the value of these buildings based on these giant special assessments and the work that has to be done,” said Orest Tomaselli, CEO of Strategic Inspections.

“You have buildings that are shopping for studies, because maybe they’re coming in too high, and maybe they can find someone who can lowball it,” Zalewski said.

“People are figuring out what to do,” Zalewski added. “They think there will be a silver bullet, some kind of cure in the upcoming Florida legislative session” amid outcry from condo owners

The state legislature, which convenes its 2025 session March 4, has no plans to bail out condos or offer reprieve from the deadlines to fund repairs, Florida legislative leaders said at a condo conference last month held by Miami Realtors, according to Homes.com.

“A lot of people moved here to be able to retire and live their life here, and they’re on fixed incomes,” said Kathleen DiBona. Courtesy of Kathleen DiBona
“A lot of people moved here to be able to retire and live their life here, and they’re on fixed incomes,” said Kathleen DiBona. Courtesy of Kathleen DiBona

Lawmakers, however, might consider financing solutions to help condos cover the cost of structural studies and maintenance, including allowing reserve funds they set aside to be invested.

Despite some maintenance challenges, Florida’s older condos still reflect the only affordable opportunity at homeownership for those who can’t swing the price tags of Miami’s new crop of ultra-luxury developments, says Scott Diffenderfer, a Miami-Beach-based broker for Compass who specializes in sales of older units.

He says he’s pretty upfront with potential buyers these days about the scope and costs of repair that some of his listings will undergo.

Brokers view the new regulations and mandatory repairs as a necessary correction to Florida’s once-lax condo standards, Diffenderfer explained.

Previously, buyers had little insight into a building’s true condition — much like purchasing a used car without a Carfax report.

Now, with stricter enforcement requiring proper reserves and full disclosure of maintenance history, brokers say the condo market could become more transparent and ultimately unlock greater value for owners.

“For probably 75% of the buildings in South Florida, when the dust settles, people are going to say, ‘You know what? That was painful. But look at these buildings!’ ” Studnicky said. “They’re in great shape.”

We see our members for the past years the ones being called upon by condo Boards to help them navagate the waters for inspections, Boards tell us SFPMA Directory is one place they find the most help, top companies giving them the honest assessments for Owners.

 

 

Tags: , , , ,
HOW TO COLLECT WHAT’S DUE? By Eric Glazer, Esq.

HOW TO COLLECT WHAT’S DUE? By Eric Glazer, Esq.

We are already starting to see an uptick in the amount of owners falling behind on paying their assessments to their association.  It is wise for an association to know how the collections process works in for the board to put in place a policy that works best for the association.

In both condos, Co-ops, and HOAs, the procedure is the same.

  1. To start, the association must first deliver a thirty day written notice of late assessments to the unit owner which specifies the amount owed the association and provides the unit owner an opportunity to pay the amount owed without the assessment of attorney fees.
  2. If the owner fails to bring their account current, the association must then provide the delinquent unit owner with another letter which is a 45 day notice of its intent to file a lien and its intent to foreclose its lien. The association can demand attorney’s fees, interest and late fees in this letter.
  3. If the owner fails to bring their account current, the attorney can record a lien and threaten to foreclose on the lien if their account is not brought current within 45 days.  The association can demand attorney’s fees, interest and late fees in this letter.
  4. If after 45 days the owner still fails to bring their account current, the association may file a foreclosure action in court.

Keep in mind that because the unit owner must receive a 30 day letter, a 45 day letter and another 45 day letter, it takes a long time to bring a delinquent owner into court.  That is why associations may need to rethink their collection process and start it a little earlier.  If not, by the time it gets to court, the owner may by 9 or 10 months delinquent.

Especially in condominium buildings, things are about to get tough.  There are now mandatory inspections, mandatory repairs, mandatory fire sprinkler or ELSS installation, a tremendous rise in insurance and the inability to waive reserves.  Stay on top of your collections.

About HOA & Condo Blog

Read other industry Legal Articles

Eric Glazer

Eric Glazer graduated from the University of Miami School of Law in 1992 after receiving a B.A. from NYU. He has practiced community association law for three decades and is the owner of Glazer and Sachs, P.A. a five attorney law firm with offices in Fort Lauderdale and Orlando.

Eric is Board Certified by The Florida Bar in Condominium and Planned Development Law.

Tags: , ,
Disability Discrimination Under the Fair Housing Act by Guest Columnist: Danielle M. Brennan, Esq. B.C.S. [Kaye Bender Rembaum]

Disability Discrimination Under the Fair Housing Act by Guest Columnist: Danielle M. Brennan, Esq. B.C.S. [Kaye Bender Rembaum]

  • Posted: Dec 17, 2024
  • By:
  • Comments: Comments Off on Disability Discrimination Under the Fair Housing Act by Guest Columnist: Danielle M. Brennan, Esq. B.C.S. [Kaye Bender Rembaum]

As directors and managers of community associations, it is likely that you are very familiar with disability-related requests for reasonable accommodations under the Fair Housing Act, particularly requests for accommodation to pet restrictions so that a disabled person may have an assistance animal within the community. However, the failure to grant reasonable accommodations is not the only form of disability discrimination under the Fair Housing Act.

The Fair Housing Act also makes it unlawful for a housing provider to refuse to permit, at the expense of the disabled person, reasonable modifications of existing premises occupied or to be occupied by such person if such modifications may be necessary to afford such person full enjoyment of the premises. For example, reasonable modifications may include widening doorways to make rooms more accessible for persons in wheelchairs, installing grab bars in bathrooms, lowering kitchen cabinets to a height suitable for persons in wheelchairs, adding a ramp to make a primary entrance accessible for persons in wheelchairs, or altering a walkway to provide access to a common use area.

In order for an individual to be entitled to a reasonable modification under the Fair Housing Act, the individual must first make a request for a reasonable modification. An individual makes a reasonable modification request whenever he/she makes clear to the association that he/she is requesting permission to make a structural change to the premises because of his/her disability. Although the association may adopt and use specified forms and procedures for processing modification requests, the association cannot refuse a request because the individual does not use the specified form or follow the established procedures. All the individual needs to do is make the request, orally or in writing, in a manner that a reasonable person would understand to be a request for permission to make a structural change because of a disability.

As part of the request, the individual must (i) establish that he/she is disabled (i.e., the person has a physical or mental impairment that substantially limits one or more major life activities) if the disability is not already known to the association or readily apparent; (ii) describe the type of modification requested; and (iii) explain the relationship, or nexus, between the requested modification and the individual’s disability.

The association is required to provide a prompt response to a reasonable modification request. An undue delay in responding to a reasonable modification request may be deemed a failure to permit a reasonable modification. There is no clarity as to what constitutes a “prompt response” or “undue delay” for a reasonable modification. However, if we are to borrow from guidance from the U.S. Department of Housing and Urban Development regarding reasonable accommodations under the Fair Housing Act, then a response should be issued within ten days.

The failure to permit a person with a disability to make a reasonable modification or the failure to promptly respond to a request for a reasonable modification is deemed discrimination under the Fair Housing Act. If discrimination is found to have occurred, the association may be subject to an injunction, forcing the association to permit the requested modification, and an award for damages, which may include punitive damages. In addition, violations of the Fair Housing Act are one of the few instances in which individual board members may be held personally liable for such violations. Given the potential for liability and the many factors which must be considered upon receiving such a request, the board must carefully evaluate a request for a reasonable modification in a timely manner and on a case-by-case basis.

The association cannot condition its approval of the requested modification upon the payment of a security deposit or the purchase of additional insurance and cannot insist that a particular contractor do the work. However, the association can require that the unit owner obtain any building permits needed to make the modification and that the work be performed in a workmanlike manner. From a practical perspective, there will need to be coordination between the association and the unit owner, for example, to obtain whatever permits may be required and to schedule the work, given that the modification may be made to the common areas owned by the homeowners’ association or the common elements controlled by the condominium association.

As to the modification itself, the disabled person is responsible for determining the type of modification and for payment of the costs of the modification. Generally, the association cannot insist on an alternative modification, particularly if the requested modification is to the interior of the unit. However, if the requested modification is to the common area or common elements, the association can propose an alternative modification (e.g., different type of modification, different placement, different design, etc.). However, if the association’s proposed alternative modification costs more than the modification requested by the disabled person, the association will be required to pay the difference.

Once the modification is installed, whether the disabled person or the association will be responsible for the upkeep and maintenance of the modification will depend upon where the modification is located and who is able to use the modification. As to modifications made to the common areas or common elements, if the modification is used exclusively by the disabled person, such person is responsible for the upkeep and maintenance of the modification. However, if the modification is installed on the common areas or common elements which are normally maintained by the association and may be used by others, the association is responsible for the upkeep and maintenance of such modification under the Fair Housing Act.

Although some modifications to the interior of the unit must be restored if requested by the association when the disabled person vacates the unit, the association cannot require the disabled person to have a modification made to the common areas or the common elements removed and area restored.

Additionally, the Fair Housing Act controls over the provisions of the governing documents of the association and any requirements of Chapter 718, Florida Statutes. For example, even if the modification is a material alteration or substantial addition to the common elements or association property subject to membership approval under a community association’s governing documents and/or section 718.113(2)(a), Florida Statutes, such membership approval would not be required for a reasonable modification under the Fair Housing Act. However, the board still must approve the requested modification at a properly noticed board meeting, and the minutes of such meeting must reflect the board’s approval of same.

Regarding property insurance for modifications to a condominium’s common elements, section 718.111(11)(f), Florida Statutes, requires that the condominium association carry adequate property insurance for primary coverage of all portions of the condominium property, only excluding from such coverage the following which is the responsibility of the unit owner: 1) all personal property within the unit or limited common elements and 2) floor, wall, and ceiling coverings; electrical fixtures; appliances; water heaters; water filters; built-in cabinets and countertops; and window treatments (including curtains, drapes, blinds, hardware, and similar window treatment components); or replacements of any of the foregoing which are located within the boundaries of the unit and serve only such unit. Therefore, if modifications are not within the unit or the limited common elements serving the unit, the condominium association is responsible to carry property insurance for the modification and will be responsible for the reconstruction, repair, or replacement of the modification if it is damaged by an insurable event.

Finally and importantly, because there are so many ways for a board to create legal liability when handling reasonable modification and/or reasonable accommodation requests, the board and manager should absolutely involve the association’s attorney, particularly if the board is going to request additional information or deny the request. Simply asking the wrong question can create legal liability for an association, such as asking for additional information regarding a person’s disability when the disability is readily apparent. Because there are so many ways to misstep in this arena, significant caution is advised.

Guest Columnist: Danielle M. Brennan, Esq. B.C.S. [Kaye Bender Rembaum]

Reprinted with permission as it appears in the December 2024 issue of the Florida Community Association Journal.

 Danielle M. Brennan is a board-certified specialist in condominium and planned development law by the Florida Bar. Mrs. Brennan is a firm member in the Palm Beach Gardens’ office and joined Kaye Bender Rembaum as an associate attorney in April 2013. She assists community association clients (including residential and commercial condominium associations, homeowners’ associations, cooperatives, and commercial associations) and developer clients with all aspects of community association establishment and operations, including corporate filings and mergers, governing document drafting and amendments, contract drafting and negotiations, membership meeting and board meeting operations, fair housing matters, land use and zoning matters, and covenant enforcement.

 

Tags: , , ,
Should Delinquent Owners Voting Rights Be Revoked?

Should Delinquent Owners Voting Rights Be Revoked?

  • Posted: Nov 04, 2024
  • By:
  • Comments: Comments Off on Should Delinquent Owners Voting Rights Be Revoked?

Should Delinquent Owners Voting Rights Be Revoked?

by Steve Walz

One of the thorniest issues to tackle in an HOA is homeowners in delinquency – not paying their dues or being significantly behind on dues payments. The community and owner dues are two sides of the same coin. The community canno maintain the grounds, amenities, or sidewalks without yearly owner dues. However, financial issues are a minefield of complications from family tragedy to cantankerous entitlement.

A challenging question arises: What should an HOA do if a homeowner refuses to pay their dues? Your options range from leveling fines to revoking voting rights. Many communities favor withdrawing voting rights – cutting off the privilege of community control that comes from being a contributing homeowner in the community. Any HOA considering this route should plan carefully to ensure this decision is legal, permitted, and potentially effective before putting it in place.

Is it Legal to Suspend Delinquent Owner Voting Rights?

Your state determines the legality of suspending voting rights in an HOA. Some states allow for the suspension of HOA voting rights for specific reasons or in general, but others prohibit the rest of any remaining owner voting rights. You will need to check the detailed laws regarding HOAs in your state. There may also be rules relating to HOA homeowner rights regarding delinquency and suspension of voting rights in your county and municipality.

Is it Permitted to Suspend Voting Rights Over Dues Delinquency?

The next question is whether your own HOA permits this policy. Next, check your governing documents and by-laws to determine if there are already policies regarding dues delinquency and when an owner’s voting rights can be permitted.

The legal language in HOA governing documents can vary widely. For example, according to some condo associations, all homeowners are subject to the same rules, which means no voting rights. On the other hand, some HOAs may define that an owner always has certain voting rights, like council elections. Still, you may be able to suspend lesser voting rights regarding community matters.

Can Suspending Voting Rights Effectively Resolve Delinquent Dues?

Finding a practical consequence for delinquent dues has always been a challenge for HOAs. The community can’t support many homeowners using the roads and amenities without paying into the infrastructure. Nevertheless, choosing the proper measures to achieve your goals is also imperative.

Considerations

  • If a homeowner never votes on anything, suspending their voting rights will not impact them in any way. Likewise, if the community votes on very little.
  • How can you fairly make exceptions for invested people experiencing financial hardship?
  • How can you protect against people who take advantage of safety net systems?
  • Never combine vote suspension and leveled fees  (not dues). This opens the door to corruption and the ability for the board to tax a homeowner out of being able to vote, then drive them from the community. If you revoke voting rights, this must only be for dues and not the total owed amount in fees.
  • You may revoke some – but not all – types of voting. Most HOAs take a few types of votes: meeting votes, election votes, special assessment votes, and so on. You may find selective vote limitations to be more effective – or permitted by your documents.
  • Prevent them from making changes, but don’t prevent them from self-advocation.

Other Potentially Effective Ways to Penalize Delinquent Dues

Suspending voting rights is a sticky proposition. Some homeowners won’t care, some will be devastated. This means it’s also worth considering a few alternatives or additional penalties that may drive homeowners to get right with their dues more effectively.

Denying Permit Approvals

  • Parking permits
  • Building permits

Refuse delinquent owners of any more permit approvals. No guest parking, and no home improvement projects. Guest parking is for people who are contributing to the neighborhood road and lot maintenance.

Denying Amenity Access

  • Pool access
  • Spa/Fitness room access
  • Clubhouse bookings
  • Sport court reservations

A first-time refusal to allow someone access to the pool due to their inability to maintain it can emphasize its importance. Consider denying non-paying homeowners something they will miss that their dues contribute to paying for if this type of solution is permitted in your state and governing documents. Your HOA gets to have sweet amenities because everyone pays in. Those who don’t, don’t. Also, this has a fair, lower impact on families experiencing financial hardship. However, they may need to use their voting rights to oppose special assessments they cannot pay or fight an oppressive fee structure.

When approaching the issue of HOA owners with delinquent dues, remember to create an adaptive and considerate system of response. Build a plan that equally accounts for the absent-minded, the scam artists, the family hardships, and the belligerent bullies. Whatever your solution, make it your central goal to resume regular dues for each property without causing or being subject to unnecessary loss.

 

Tags: , ,
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
  • By:
  • Comments: Comments Off on 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.

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.

 

 

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.

 

 

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.

 

 

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.

 

 

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.

 

 

 

 

Tags: , ,
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

  • Posted: Oct 30, 2024
  • By:
  • Comments: Comments Off on 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.

Tags: , ,
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
  • By:
  • Comments: Comments Off on 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.

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

 

Tags: , , , ,