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GET BOARD CERTIFIED AT THE “CONDO AND HOA EXPO” IN TAMPA FEB 28, 2023 * LUNCH IS PROVIDED FOR FREE!

GET BOARD CERTIFIED AT THE “CONDO AND HOA EXPO” IN TAMPA FEB 28, 2023 * LUNCH IS PROVIDED FOR FREE!

GET BOARD CERTIFIED AT THE CONDO AND HOA EXPO IN TAMPA

LUNCH IS PROVIDED FOR FREE!

FEBRUARY 28TH, 2023 AT 9:00 A.M. AT THE TAMPA BAY CONVENTION CENTER.

REGISTER NOW if you did not already

COME MEET OVER A HUNDRED CONDOMINIUM AND HOA VENDORS AND TAKE CONDO AND HOA EDUCATIONAL CLASSES ALL DAY LONG
WE HAVE CERTIFIED OVER 20,000 FLORIDIANS ALL ACROSS THE STATE.
LEARN ALL ABOUT THE NEW CONDO LAWS REGARDING SAFETY, CERTIFICATION, THE AS AMENDED FROM TIME TO TIME LANGUAGE, BUDGETS, RESERVES, EMOTIONAL SUPPORT ANIMAL LAWS, MANAGER DO’S AND DON’TS, SCREENING AND APPROVING, ACCESS TO RECORDS AND MUCH MUCH MORE.
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ZOOM: All About Insurance | Juno Beach Town Hall w/Jeffrey A. Rembaum, Esq, BCS (Kaye Bender Rembaum)

ZOOM: All About Insurance | Juno Beach Town Hall w/Jeffrey A. Rembaum, Esq, BCS (Kaye Bender Rembaum)

All About Insurance | Juno Beach Town Hall

9:00 am-11:00 am 02/24/2023

Juno Beach Town Hall
340 Ocean Dr, Juno Beach, FL 33408, USA

Coffee, Registration and Networking 9:00am | Seminar begins at 9:30am

To attend at the venue: RSVP to (302)588-3104 or email junobeachforum@hotmail.com

Attend via Zoom: Click HERE

The marketplace for insurance – Why are companies leaving Florida or choosing not to insure? What is the role of Citizen’s Insurance?

What is in the recent legislation that is helpful to condo associations and HOAs?  Is there more legislation looming?  How does helping the insurers help owners and associations?

Which upgrades to your facilities will positively impact on an insurer’s willingness to insure your association?

Panel:

  • Jeffrey A. Rembaum, Esq, BCS (Kaye Bender Rembaum)
  • Chris Banker, President (Patriot Insurance)
  • Steven Mock, Risk Manager (Brown and Brown Insurance)

 

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RECOGNITION OF PRESIDENTS? By Jan Bergemann on Condo and HOA Blog

RECOGNITION OF PRESIDENTS? By Jan Bergemann on Condo and HOA Blog

RECOGNITION OF PRESIDENTS?

By Jan Bergemann on Condo HOA Blog




I know that there are many good presidents who are working hard for the good of the community, keep open books and openly communicate with the members of the association.

But then there are lots of presidents, drunk with power and full of themselves. You wouldn’t believe the many ugly stories I’m hearing daily about presidents behaving like Joseph Stalin, Adolf Hitler or Fidel Castro. With the help of greedy attorneys and community association managers they create dictatorships that make living in community associations a living nightmare. They are even willing to ignore arbitration and court rulings and continue their evil doings even after being officially removed by elections or recalls. They are even willing to waste the association’s money on ridiculous appeals court filings.




The real reason why this can even happen in a so-called “civilized” country like the USA: The unwillingness of our government to enforce the many laws legislators create every year.

Many of these laws turn out to be just a waste of paper because too many of the so-called “specialized” community association attorneys are willing to help these dictatorial presidents to circumvent these laws, telling owners, who stand up at meetings to challenge actions of the board that violate the laws, to “sit down and shut up since they don’t have the money to sue the board anyway”!

Living in a community association isn’t something you can just enjoy by not participating, willing to ignore to happenings in the neighborhood until it’s too late. Apathy of owners allows these dictatorships to be created in the first place. Don’t let apathy destroy your community.

REMEMBER: EVEN THE BEST COMMUNITY IS ONLY ONE ELECTION AWAY FROM DICTATORSHIP.

Jan Bergemann

Jan Bergemann is president of Cyber Citizens For Justice, Florida ‘s largest state-wide property owners’ advocacy group. CCFJ works on legislation to help owners living in community  associations. He moved to Florida in 1995 – hoping to retire. He moved into a HOA, where the developer cheated the homeowners and used the association dues for his own purposes. End of retirement!

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FOUR STEPS TO A BETTER COMMUNITY By Rafael Aquino

FOUR STEPS TO A BETTER COMMUNITY By Rafael Aquino

FOUR STEPS TO A BETTER COMMUNITY

By Rafael Aquino

Community associations often face challenges and issues requiring prompt attention and resolution. Whether it’s handling maintenance and repair needs, managing common areas, or addressing resident concerns, community associations need to work with the right partners to ensure that matters are resolved promptly and effectively.

Here are a few reasons why Florida community associations need to work with the right partners:

  1. Ensuring Quality Work

One of the most important reasons to work with the right partners is to ensure that the work performed is high quality. Whether hiring a landscaper or a maintenance technician, working with reliable and experienced professionals will help ensure that the work is done properly and to the association’s satisfaction.

  1. Saving Time and Money

Another reason to work with the right partners is to save time and money. By working with partners with a proven track record of delivering quality work, community associations can avoid hiring additional contractors or redoing work incorrectly done the first time. This can save the association time and money in the long run.

  1. Minimizing Risk and Liability

Working with the right partners can minimize risk and liability. This is especially important for community associations, as they maintain and manage common areas that all residents use. By working with licensed, insured, and experienced partners, associations can minimize the risk of accidents, injuries, and other liabilities arising from improper maintenance or repairs.

  1. Improving Communication

Working with the right partners can also help to improve Communication within the community. When community associations work with reliable partners, residents can be assured that their concerns and needs are being addressed in a timely and effective manner. This can improve resident satisfaction and create a more harmonious community.

In conclusion, working with the right partners is essential for Florida community associations to ensure that their needs and the needs of their residents are met. By providing quality work, saving time and money, minimizing risk and liability, and improving Communication, community associations can create a safe, attractive, and enjoyable community for all residents. So, it’s important to take the time to research and choose the right partners to work with for the success of the community.

As the Co-Founder and CEO of Affinity Management Services, Rafael P. Aquino leads his team to redefine excellence. They serve community associations efficiently and effectively with dedication and passion.

 

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Is Your HOA or Condo Board Doing A Good Job?

Is Your HOA or Condo Board Doing A Good Job?

Is Your HOA or Condo Board Doing A Good Job?

How Can You Tell If Your Board is Doing a Good Job?

There’s a lot of talk in the media and online about bad Boards of Directors, including our recent article on how to tell if your Board is stealing from the association. But how do you tell if the Board of your Condo or HOA is doing a good job? Not all Boards are bad, right?

The truth is, most Board members are honest people that meant well when they campaigned for election and mean well when they attend and vote in each meeting. They have reasons for making the unpopular decision that the residents complain about. Oftentimes those reasons are valid and the unpopular decision was actually the lesser of two evils. But, how do you know for sure?

What Makes a Board of Directors “Good”?

To find out what HOA managers and management company executives thought was the ultimate sign of a good Board, we conducted a survey on LinkedIn. The survey responses were almost tied. It turns out, there isn’t one ultimate sign. Instead of one thing that makes your Board great, there’s a list of things that make your Board of Directors successful… or not.

Financial Responsibility

The most popular survey response with 33% of the vote, having a well-funded budget and reserves is a hallmark of a good Board. But other factors go into good financial management as well. A good Board is honest when spending HOA funds and uses them for the good of the community. They communicate with the membership about the reasons for budget increases, how they are using the money collected, and what the process is for paying vendors and for dealing with homeowners who aren’t paying on time. Big projects are well-researched and planned to limit unexpected expenses that make special assessments more likely. Speaking of special assessments, good boards know that regular dues increases that keep up with inflation are a better way to fund projects than special assessments.

Proactive Maintenance of Facilities

Coming in at 29% of the vote is proactive maintenance of the facilities. This means little to no deferred maintenance in the community. All buildings, parks, equipment, etc. are inspected often. Preventative maintenance is completed because the Board knows it will save money in the long run. When something needs repair or replacing, it’s completed as soon as possible, because the longer it waits, the more it costs. What good does it do to have a well-funded budget if money is never spent on maintaining the physical assets of the community?

Productive, Peaceful Meetings

Tied with maintenance at 29%, some managers and executives felt that the number one sign of a good board is how it feels to attend their meetings. Good Boards can disagree without slipping into childish or inappropriate behavior. They read the packets and reports that management provides them before the meeting and show up prepared to vote. Members feel comfortable attending meetings, and because the Board sets a good example of how to behave, most of the members follow it.

Good Boards Set Goals

Another sign of a good Board is goal setting. It’s hard to steer a ship if you don’t know where it’s headed. A Board that plans ahead and sets goals for the direction the community should head in is a Board that has a better chance of getting there. A Board that doesn’t plan is going to find itself spinning around in circles.

Fair Collections

People might not like to talk about it because it can be emotionally uncomfortable, but to be good at their job the Board must do something about owners that don’t pay their dues. It’s not fair to the owners that do pay to have to carry the burden of those that don’t. But a good Board is not overly aggressive when it comes to collections. They make sure that the collection solution they use is fair, not predatory, and advocates for the association to collect every possible penny.

The Good Board Checklist

Do you want to grade the Board of Directors for your community to see how good or bad of a job they’re doing? Using the following checklist, give your Board 5 points for every answer that you checked “yes”.

  • Increases to assessments are small and regular
  • The budget, reserve study, annual review, and other financial reports are accessible to the members for review
  • Reserve funding levels are above 80%
  • Special assessments are rare
  • The final cost for projects is usually in line with the projected cost
  • Components are inspected often and repaired as needed
  • When components fail, they are replaced and not abandoned or removed
  • The Board behaves like professionals at meetings even when they disagree
  • Meetings are business-oriented and not popularity contests or social hours
  • Members are welcome and feel comfortable attending meetings
  • A goal-setting discussion happens at least once a year
  • Experts are consulted and their advice is considered when making decisions
  • The number of owners that are late on their dues is less than 10%
  • Collection practices are fair and judgments and foreclosures are a last resort
  • The Board uses a professional collection solution instead of doing it themselves

Now, add up those scores and see how the Board did. A great score is 60-75, a good score is 45-60, an average score is 30-45, a Board that scores 15-30 needs improvement, and if the Board scored less than 15 points you might be in trouble.

Even good Boards of Directors sometimes find that their collections could be improved. Contact us today to find out why Axela Technologies is a better collection solution than your attorney, and learn more about our options for helping you recover late payments from delinquent  owners.

 

By, Dee A. Rowe, Guest Writer

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Condo and HOA Lien Foreclosures…A National Shame by Mitch Drimmer / Axela Technologies

Condo and HOA Lien Foreclosures…A National Shame by Mitch Drimmer / Axela Technologies

  • Posted: Dec 18, 2022
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How many times have you read a story about an HOA foreclosing on some unfortunate family for a fraction of the value of the home? For example, the veteran who, upon returning from active duty, finds that his HOA has foreclosed and taken title to his house for a mere pittance? “Soldier in Iraq Loses Home Over $800 Debt” reads the story, and life goes on at the HOA.

Should the HOA have foreclosed on this person’s house? Why did they foreclose on this property? What could have been done to prevent this gross injustice from happening in the first place? Condo and HOA lien foreclosures should not be the first go-to solution when a unit becomes delinquent.

For too long, community associations have been a national disgrace, rather than a source of national pride. No HOA wants their name to be mentioned on the nightly news because we all know it is far more likely to be an exposé than a feel-good piece. But if we want the bad press to stop, we need to take a good, hard look in the mirror.

 

Communities Often Jump Straight to the Nuclear Option of Lien Foreclosure. Can They Do That?

When you buy a house or condo in a community association, most likely you’ve taken out a mortgage, and if you don’t pay your mortgage, the lender has the right to foreclose and force a public sale of the property. So too can condominiums and homeowner’s associations foreclose on your property for non-payment of maintenance fees.

In fact, per most state laws, your homeowner’s association or condominium association can potentially foreclose on your property even if you are current with your mortgage. Also, your mortgage will remain in first position and the HOA cannot sell the property with marketable title unless the first position lien has been satisfied.

All that is required is for the association to cause an attorney to file a lien, have the attorney send a notice of foreclosure, have your day in court, and before you know it you are being evicted from your home that may have equity in it because you were delinquent for a much smaller amount than what the property is worth. Not a good deal for you and certainly not a smart business move for the association.

It’s not to say that the community is in the wrong. The assessment fees are rightfully owed to the association, and they have the right to attempt to collect it. However, jumping to the nuclear option prior to attempting diplomacy (negotiating with the owner to satisfy the debt) never goes well for anyone.

 

Winrose vs Hale ‘Shocked the Conscience’ of the Court

In an appeals court decision in Supreme Court South Carolina, the association foreclosure was REVERSED and REMANDED. In the case of WINROSE HOA v. DEVERY HALE the court was shocked by this action and even stated so in their decision: “As a result, in determining whether the purchase price was grossly inadequate …. the bid shocks the conscience of the court.” The story is quite simple and may sound familiar to you as this happens every day and really should not.

The Hales were solid citizens who purchased their home twenty-one years ago for $104,250.00 and paid their mortgage and fees on time. The home is valued at $128,000.00 and the property has $60,000.00 of equity in it. After missing a $250.00 maintenance fee payment the HOA foreclosed on their $566.41 lien (to satisfy delinquent assessments and interest) and the winning bid on the house was $3,036.00. The Hales had been robbed, and the association had acted too rashly in moving to foreclose upon a house for such a pittance. The buyer was Regime Solutions, LLC who are investors that seek out and purchase properties at foreclosures.

Due to the Hales failure to file a responsive pleading to the foreclosure complaint, a huge mistake on their part, they were ultimately defaulted and were not served with any further court papers. In fact, they did not even receive a copy of the judgment of foreclosure. When they found out they were at risk of losing their property, they tried to make good to redeem their house and paid a bill to the master and in fact, the law firm representing the HOA sent the Hales a notice that the lien had been satisfied. The HOA, however, did not withdraw its suit.

Three months after, the HOA filed the affidavit of default and the master authorized a judicial sale of the property at public auction. The Hales were not notified of this order due to a rule in South Carolina, which essentially states the time to appeal doesn’t change, despite lack of notice (rule 77(d), SCRCP). Two weeks later without notice to the Hales, the property was sold and the new owner moved to evict them. This of course led to court complaints, a trial, and finally an appeal before the Supreme Court who reversed and remanded the foreclosure order saying that the sale at auction for $3,036.00 “shocked the conscience of the court,” which is quite strong language from the Supreme Court.

 

Investors Use Shady Business Practices To Take Advantage of Unsuspecting Homeowners through HOA foreclosures

It came to light that Regime’s business model was not to assume the senior mortgage to own the property but to give back the property to the original owners at a hefty fee. (Sadly, this is not an uncommon practice.)

The court decision went on to say: “While the HOA had the legal right to pursue collection of the debt owed, including foreclosure of the Property to satisfy that debt, this foreclosure action quickly morphed into a proxy to capitalize on a small debt. We are especially troubled by Regime’s participation in a foreclosure proceeding to accommodate its business model of leveraging a nominal debt to secure an exorbitant return from homeowners who fear the prospect of eviction.”

Most important the court stated: “Regime would not have had an opportunity to engage in its questionable business practices had the HOA and its attorney not chosen to pursue foreclosure in the first place. The Hales were minimally in arrears on their HOA dues, yet the HOA foreclosed on a $128,000 home in its eagerness to collect the outstanding $250—an overdue amount less than 0.2% of the fair market value of the home, notwithstanding the amount of the outstanding mortgage.”

Finally, the court opined: “A foreclosure proceeding is a last resort, not a business model to be swiftly invoked for the purpose of exploiting property owners. We do not countenance the improper use of foreclosure proceedings by the HOA, its attorney, or Regime.”

Justice ultimately prevailed in this case, and the Hales kept their house and were not evicted although there can be no doubt that they had suffered and worried throughout this entire process. Not every homeowner who goes through this process is so lucky to get away with only a terrible story to tell.

 

Communities Are Getting Bad Advice, and It’s Costing Them, in Real Dollars and in Reputation

What went wrong is an amazingly simple question to answer. The association was convinced that they should foreclose on a delinquent unit before they even tried to engage the owners to review the consequences of their situation. While it may be true that they received one notice, they were advised by an attorney that the matter had been resolved. This was a total failure of communication.

The association could have had more contact with the owners and advised them as to the course of action that was being taken against them. Nobody said anything to them – and in this industry, such a thing is not uncommon.

When a delinquent unit goes over to an attorney the object is to “enforce the security interest” and not to collect. The association’s board was not properly informed that less drastic action could be taken. Somehow the board was convinced not to recover money from the Hales but rather to take the property.

No collections activity is reported in the narrative that is presented in the case. It was a bad business decision because eventually, the association had to pay a lot of legal fees. This situation could have been resolved much more easily and cost-effectively.

 

A Lawyer Who is Just Enforcing Security Interests Is Not A Debt Collector

This matter did not have to be resolved by a “legal solution” but rather by a “collections solution.” As a matter of fact, in a case decided by the Supreme Court of The United States, DENNIS OBDUSKEY v. McCARTHY & HOLTHUS LLP the Court held, “A business engaged in no more than the enforcement of security interests is not a “debt collector” under the FDCPA, 1032*1032 except for the limited purpose of § 1692f(6). Pp. 1035-1040.” This means that the association did not even try to collect the past due debt and if they used an attorney, he/she is not even bound by the Fair Debt Collections Practices Act.

The Supreme Court in South Carolina in all its wisdom said loud and clear: “A foreclosure proceeding is a last resort”

 

Community Associations Have a Better Option to Collect Delinquent Fees

So how should a community association collect delinquent fees? In a way this question just about answers itself. The answer is that they use a collection agency that is specialized in collections for community associations. Community Associations need to COLLECT, not foreclose and evict owners from their homes. Associations need to have adequate cash flows and a minimum amount of legal cases.

Axela Technologies would be honored to be that company for your community association. We are a licensed collection agency and we only work on delinquencies from Condos and HOAs. We are different because our objective is not to foreclose on a house, which is the action of last resort.

What Axela does is engage the owner and work with them to pay their past due assessments. Axela will send demand letters, provide internet portals to delinquent owners, make outbound calls, report delinquencies to credit bureaus, receive inbound calls, work out payment plans, and notice mortgage holders that the borrower is delinquent on their maintenance fee payments as per the PUD Rider.

Now is the time for your community association management company and/or community association to put the right process into place when you are confronted with delinquencies. Foreclosing and evicting does not have to be the way. Click here to request your free, no-obligation collections analysis today.

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A Condo/HOA guide: How to effectively communicate with owners and residents

A Condo/HOA guide: How to effectively communicate with owners and residents

How to effectively communicate with condo/ homeowners

Written By : Phillip Livingston

While there’s no one-size-fits-all approach to condo communication, there are some basic principles and strategies that can help you maximize communication. For instance, we can all agree that using digital communication tools is faster and more efficient than outdated paper and mail.

Read on to find out how technology and sound communication strategies can facilitate smooth operations and cohesion with homeowners.

  • Communicate as frequently as possible

One of the best ways to capture and maintain unit owners’ attention is to communicate with them frequently. Property management software such as Condo Control Central simplifies the process for you. It offers a discussion forum where unit owners can voice their opinions in a safe and confidential manner.

Residents can use this feature to report property damage in the common areas, and you’ll be able to moderate the forum by adding pre-defined topics.

The event planner tool also makes it easy to inform and update residents about upcoming community events such as get-togethers and AGM meetings.

Tired of printing documents and posters every time you update community bylaws? Say goodbye to printing costs and upload updated documents straight to your community’s file library. It has quick search functionality and allows you to seamlessly notify residents when you upload a new document. Now you’ll have no excuse but to keep unit owners updated on every move.

Make sure your state allows for the electronic transfer of large documents because it’s not legal in every state.

  • Simplify communication

People generally don’t like to actively seek out information so you need to make it easy for them. Otherwise, no-one is going to go out of their way to read the rules unless they’re made visible. Going digital will not only help you to cut costs while captivating people’s attention, but it also simplifies the communication process. Using property management software forums means that you don’t have to rely on residents to open an email, or log in to a website.

But, it’s important to modulate the information you make available to residents online. Intelligently designed communication strategies speak volumes and will help you manage and reduce conflict.

  • Hold regular meetings

Like most condo associations, your condo declaration stipulates how often your board should meet. It’s important to include residents in HOA meetings to promote transparency and honesty. The minimum requirement in most state regulations is for the HOA board to meet annually to plan the yearly budget. But, it helps to hold regular meetings in-between to keep residents in the loop about important issues.

If you want to find out how often your condo board should meet, check the association’s bylaws for detailed information. Most bylaws have a minimum meeting frequency of five to six times a year. It’s important to note that this is merely a suggestion, and the board can choose to meet more or fewer times than that, based on the needs of the community.

Granted, things like weather conditions can contribute to the frequency of board meetings.  Associations that in areas with extreme winters may hold regular meetings to deal with issues like snow removal or lawn maintenance. Some associations need to hold frequent meetings to deal with tenant disputes and other kinds of drama. Larger condo associations with 30, 50 or more units may also meet frequently due to unique circumstances.

The important thing is to address problems as they arise and do so publicly. Don’t allow things to fester as this may lead to detached involvement from homeowners. For instance, if an HOA board holds six meetings in a year, then homeowners should be present for at least half of those meetings.

  • Leverage your online presence

Every association should have a website and social media presence. This makes it easier to raise awareness about the latest association news, meeting minutes, etc.

Plus, you can control the amount of information included on the website and who has access to it.

Most associations use social media platforms like Facebook and LinkedIn as well as association blogs as a way to keep community members in the loop about important news and happenings. Through private groups within these platforms, you can safely and effectively share meeting minutes, community alerts, invitations, and announcements.

The only downside to using public social networks is that you don’t have control over the platform itself. Facebook or LinkedIn’s community and privacy rules can change at any moment. This can affect the way you communicate with association members and compromise privacy. After all, social media doesn’t offer the level of confidentiality required when sharing certain information.

Since these platforms aren’t designed with condo associations in mind, they may not have certain functions you’d find in dedicated property management software.

Social media also comes with issues like out of control comments that cause misunderstandings and communication barriers. For instance, it’s easy for comments posted by board members to be misconstrued as a representation of the board itself, when it’s only the perspective of a single board member. Situations like this can create a hostile environment and lead to unnecessary strife.

This is just one example of how Facebook can instigate controversy trough miscommunication. It’s difficult to moderate comments and conversations that happen on the platform, hence the fighting that often happens on Facebook and other social media websites.

It’s better to communicate with homeowners using an internal platform. That way, you can moderate the conversation and address questions in an orderly fashion. An open forum is a great way to do th
is, along with Control Central’s dedicated announcement feature.

The website builder feature from Condo Control Central is ideal because it allows you to create a customized platform for your community. Here, you can safely share important and mundane information alike. This includes things like your pest control schedule to your recreational event calendar, board meeting schedule, planned improvements and parking requirements to name but a few.

It’s the best way to ensure confidentiality and privacy when communicating with unit owners electronically. It also encourages ongoing interaction between unit owners and can foster a strong sense of community.

  • Encourage disinterested unit owners by showing the financial upside

Are you having trouble with disinterested unit owners? Then you should point out a few reasons why they should take an interest in association affairs. Most absentee unit owners are that way because they don’t live in their units and simply rent them out as an investment property.

In such cases, it helps to incentivize meeting attendance with something like a free gift card or a percentage off from their assessments. At the end of the day, these types of owners are interested in the financial value of the property. So, they will take part in association meetings and affairs if it means maximizing their bottom line or investment.

  • Be transparent

We can’t stress this enough. Transparency is paramount in a condo association because you don’t want unit owners to ever feel alienated or unheard. Transparency is the easiest way to avoid disgruntled unit owners while making sure that you’re sharing all the right information with them.

For the best results, we recommend you consult with state regulations to see what the requirements are. Most states call for regular association board meetings that involve unit owners in every major decision.

The last thing unit owners want is to find out about an important decision via email or text notification. Especially if it affects the value of the property or their quality of life, which it probably will. Everything should be discussed in an open board meeting, and the board should give unit owners due notice before each meeting.

Unfortunately, association boards have been coming up with new ways to exclude board members, much to their detriment. One popular approach is to hold “working sessions” which are board meetings meant to exclude homeowners. The argument commonly used by board members is that they don’t want any interruptions from unit owners.

Even if the board is not planning to make motions during the meeting, community members must be informed of the meeting so they can attend if they want to.

This is the basis of transparency and the first step to building trust and open communication with your community.

  • Share more

Lack of communication is one of the biggest challenges HOAs and condo associations face today. This usually happens because the board fails to share decisions made on the backend. But, it’s important to share as much as possible with homeowners, keeping in mind that that the more transparent you are the more they will trust you.

It might be helpful to distribute regular newsletters either on a monthly or quarterly basis to keep community members in the loop about important issues. Even when an HOA board is experiencing problems with unauthorized renters, it’s important to share these issues so community members know what the board is dealing with.

Don’t forget to distribute the meeting minutes as soon as possible. This could be anything from a few days to a few weeks from the meeting depending on how fast the board approves them. Meeting minutes are a form of communication too and can help to shift perceptions about board transparency.

HOA boards should go beyond legal requirements when it comes to transparency and make financial records available to unit owners. That’s because financial transactions are often a leading cause of suspicion in condo associations and HOAs.

We recommend a yearly audit to improve transparency and the budget mail-out feature from Control Central is a lifesaver. It offers customized mail-out templates that you can use to digitally and automatically mail-out condo fees to residents.

Solutions inspired by the real needs of property managers and self-managed associations.

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WHY THE DIFFERENCES? By Eric Glazer, Esq.

WHY THE DIFFERENCES? By Eric Glazer, Esq.

WHY THE DIFFERENCES?

By Eric Glazer, Esq.

At a time when it would make sense for the condo and HOA laws to become easier to learn, they are becoming harder.  Much has to do with why in the world are there such differences between the condo and HOA statutes?  It’s actually ridiculous.  For example:

  1. In order to get access to the official records, why does the condo statute allow access if the owner asks for access in writing while the HOA statute requires the owner to request access by certified mail return receipt requested?
  2. Why does the condo statute require condos with 150 units or more to have a website, while an HOA with 150 units or more does not require a website?
  3. Why does the HOA statute allow voting by proxy but the condo statute doesn’t and requires a very strict way of performing the election?
  4. Why do HOA documents expire after thirty years, but the condo declaration never expires?
  5. Why is competitive bidding required in a condo if the amount at issue is 5% of the budget but competitive bidding is required in an HOA if the amount at issue is 5% of the budget?
  6. Why in an HOA, if the owners amend the declaration to prohibit rental terms of less than six months or 3 times in a calendar year, that amendment applies to everyone, even those who did not vote in favor of the amendment ———- however that same amendment would not apply to those who specifically did not vote in favor of the amendment in a condo?
  7. Why does the condo statute require a 75% vote of the owners in order to make a material alteration, yet the HOA statute does not mention material alterations?
  8. Why as of January 1st, 2025 are condominiums required to reserve funds for all portions of the common elements but HOAs are not?

There are more, but you get the point.  There are no reasons of which I’m aware as to why these statutes are different for condos and HOAs, yet they continue to exist.  At a time when it’s confusing enough to learn the laws, The Florida Legislature should amend the statutes so that the laws are the same and fair across the Board, regardless of whether you live in a condo or HOA.

 

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Condominium Unit Owner Insurance The Risks of Not Purchasing Insurance For Your Condominium Unit

Condominium Unit Owner Insurance The Risks of Not Purchasing Insurance For Your Condominium Unit

Condominium Unit Owner Insurance

The Risks of Not Purchasing Insurance For Your Condominium Unit

Do you think you do not need condominium insurance because your condominium association has it? You would be so very wrong if you do! It has happened more times than I can count—the supply line that feeds the toilet ruptures in the upstairs unit while the owner of the unit is out of town, the upstairs unit owner forgot that he or she started to fill the tub and it overflows, or the upstairs unit owner ignores a broken toilet, all of which result in water flowing down into the unit below. Next thing you know, the remediation workers arrive and start ripping out the soaked, damaged drywall in the units below and after cutting holes in the drywall use their industrial-sized blowers to dry things out to prevent mold.

Meanwhile, the downstairs unit owners want to have a “word” with the upstairs unit owner to discuss who is going to pay for the repairs. They demand a copy of the upstairs unit owner’s insurance policy. The owner of the upstairs unit where the leak occurred smiles and explains, “The condominium association has insurance. They’ll take care of it.” Right? Wrong! Even if the condominium association has the duty of repair to portions of the damaged property, typically the damaged common elements, the upstairs unit owner is not off the hook because both the condominium association and its insurance company can often “subrogate” their financial damages against the upstairs unit owner and so, too, can the downstairs unit owners and their insurance companies. At the end of the day, the upstairs owner who caused the damages could have significant financial liability. (In plain English, to “subrogate” a claim means that one party goes after the other for their financial damages for having caused the damage in the first place.)

So, now that I have your attention, most especially if you are a unit owner who does not have insurance for your unit—in the example described above, not only can the upstairs unit owner bear significant financial liability, but even their condominium unit is at risk of being foreclosed to satisfy a judgment against them—and there is no homestead protection! Because the upstairs unit owner decided not to purchase insurance, he could actually lose his unit in a foreclosure. The following explanation is why:

By way of oversimplification, the Condominium Act, more specifically, §718.111(11)(f), Florida Statutes, requires the condominium association to insure everything that the unit owner is not responsible to insure. The unit owner is responsible to insure

all personal property within the unit or limited common elements, and 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…  the association is not obligated to pay for any reconstruction or repair expenses due to property loss to any improvements installed by a current or former owner of the unit or by the developer if the improvement benefits only the unit for which it was installed and is not part of the standard improvements installed by the developer on all units as part of original construction, whether or not such improvement is located within the unit.

But, however, the unit owner’s insurance policy, typically referred to as an “HO-6 policy,” not only includes coverage for the items set forth above plus other personal items, but also includes liability coverage for having caused damages to the condominium property.

§718.111(11)(j)1–2, Florida Statutes, makes patently clear that

A unit owner is responsible for the costs of repair or replacement of any portion of the condominium property not paid by insurance proceeds if such damage is caused by intentional conduct, negligence, or failure to comply with the terms of the declaration or the rules of the association by a unit owner, the members of his or her family, unit occupants, tenants, guests, or invitees, without compromise of the subrogation rights of the insurer.

The provisions… regarding the financial responsibility of a unit owner for the costs of repairing or replacing other portions of the condominium property also apply to the costs of repair or replacement of personal property of other unit owners or the association, as well as other property, whether real or personal, which the unit owners are required to insure. (emphasis added.)

Furthermore, also pursuant to §718.111(11)(g)2, Florida Statutes

unit owners are responsible for the cost of reconstruction of any portions of the condominium property for which the unit owner is required to carry property insurance [set out above], or for which the unit owner is responsible, and the cost of any such reconstruction work undertaken by the association is chargeable to the unit owner and enforceable as an assessment and may be collected in the manner provided for the collection of assessments pursuant to § 718.116, Fla. Stat. (emphasis added.)

§718.116, Florida Statutes, is the unit fore-closure section of the Condominium Act which explains the steps necessary to foreclose against an owner’s unit for failing to pay assessments.

In condominium living, the general rule is that the party who has the duty of purchasing insurance for a particular portion of the condominium property also has the primary duty to repair the damages to such portion regardless of fault (unless the condominium association has opted out of that regime by a vote of the unit owners, which is a rarity). But, simply because the condominium association has insurance and may have that primary duty of repair after the insurable casualty event, that does not mean that the negligent unit owner that caused the damage will not be the primary target for reimbursement for expenses incurred by the condominium association’s insurance company or by the condominium association for its deductible and related expenses. The same concept applies for the downstairs unit owners, who could seek reimbursement from the upstairs unit owner for any necessary expense incurred because the upstairs unit owner was negligent.

There are typically two parts to the HO-6 insurance policy, the primary coverage for personal losses and the other for liability coverage. Condominium associations should consider amending their declaration to require every unit owner to have both personal and liability coverage, and at a minimum, liability coverage. Your condominium association should discuss this requirement with the condominium association’s insurance agent as well as review the possibility of amending the declaration of condominium with legal counsel.

Anytime a condominium association experiences a casualty event, in addition to reporting the claim to the insurance carrier, usually through the condominium association’s insurance agent, the condominium association should be in touch with its legal counsel to explore all the different aspects necessary to both repair and reimburse the condominium association for its financial losses. At the end of the day, owning a condominium unit and not having purchased insurance is similar to taking a rowboat out on a rough sea day without life preservers.

Kaye Bender Rembaum, Attorneys at Law

The law firm of Kaye Bender Rembaum, with its 20 lawyers and offices in Broward, Palm Beach and Hillsborough Counties, is a full service law firm devoted to the representation of more than 1,200 community and commercial associations, developers, and their members throughout the State of Florida. Under the direction of attorneys Robert L. Kaye, Michael S. Bender and Jeffrey A. Rembaum, the law firm of Kaye Bender Rembaum strives to provide its clients with an unparalleled level of personalized and professional service that takes into account their clients’ individual needs and financial concerns.
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HOA Statement of Receivables

HOA Statement of Receivables

HOA Statement of Receivables

A statement of receivables, or accounts receivable statement, is a document that details the outstanding charges owed to the community association. This can be from sources such as overdue dues, vendor credits, late fees, or any other outstanding source of income. It is essentially a list of every account that still owes the HOA money.

 

What is in a Statement of Receivables

These statements should contain all accounts that owe money, along with the grand total of overdue funds. The total will help with budgeting purposes. Knowing how much money is available, if collections are being handled properly, can help with financial planning. The list of all overdue accounts can act as a checklist for anyone working in collections to ensure that no account is missed.

Some associations prefer to go one step further and detail which accounts are 30 days, 60 days, and over 90 days past due. For example, if a homeowner has missed their dues in March, April, and May; they will have money in the 30, 60, and 90-day categories. This way, collections agents will know to put more pressure on collecting the April dues versus following up on another account that is only 30 days behind. Just like with all financial statements, the more detail you provide, the easier it is to plan and manage.

 

How Often Should They be Prepared

While the HOA statement of receivables should be prepared at the same frequency as all other financial statements, it is helpful for the accounts receivable statement to be released more frequently. There are even programs available to keep up with AR statements in real time and have them available on demand. This can be immensely helpful for collection purposes to make sure that everyone is on the same page.

 

Need More Information

Financial management can be one of the toughest aspects to operating a successful HOA. If you are having trouble with reviewing financial documents such as the HOA Bank Statements, contact the professionals at CSM. We have years of experience working with homeowner’s associations from all over the United States. Using state-of-the-art technology, we can provide financial management assistance while still allowing association directors to remain independent.

 

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SFPMA’s Maintaining an Condo & HOA General Ledger

SFPMA’s Maintaining an Condo & HOA General Ledger

  • Posted: Oct 31, 2022
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Maintaining an Condo & HOA General Ledger

The foundation of all  accounting is the general ledger. Much like your checkbook at home, the Condo & HOA general ledger keeps an ongoing record of all transactions made by the community association. All other financial statements such as the balance sheet, income statement, and statement of receivables are created based on the ledger.

Unlike all the other financial statements which are prepared on a monthly, quarterly, or annual basis, the general ledger should be continuously updated. Whenever a transaction is made or received, it needs to be accounted for. At any point in time, you should be able to look at the ledger and see how much money the association currently has in all accounts and where money has moved. If you need to go back and see how much the association spent on landscaping in August three years ago, you should be able to find it in the ledger records.

 

Accounting Approaches

There are three basic approaches to manage finances. There is no right method for every association. Each HOA is different and may find that one method of accounting works better for them than another.

  • Accrual – The most popular and preferred method. In an accrual approach, revenues and expenses are recorded when they are incurred instead of when money changes hands. This means that communities using this approach will need to maintain two other ledgers for payables and receivables. For example, when invoices are sent to homeowners for dues, that money is marked down in the receivables ledger. As community members pay their dues, the money in the receivables leger is moved to the general ledger. The same process is used for expenses in a payables ledger. While this may take more effort than other accounting methods, it provides much more detail.
  • Modified Accrual – A mixture of accrual and cash approaches. In modified accrual, revenues get recorded when they are earned while expenses get recorded as money changes hands. Condo & HOAs that use this approach will need a separate ledger for receivables but will document expenses as they are paid in the general ledger.
  • Cash – Transactions are documented on one ledger as money exchanges hands. This is the simplest approach but provides the least amount of detail.

Once you find the approach that works best for your community, stick with it. Switching between different approaches can make reviewing financial information in the future confusing and may hinder your board of directors’ ability to make well-informed decisions.

 

What Should be Included

Depending on the system of accounting, your HOA may have several ledgers running at all times. But no matter the approach, ledgers should include all transactions made by the community association in and out. Each account owned by the Condo & HOA should also have its own ledger. Most associations have at least an operational account and a reserve account.

Regularly checking bank statements is a good way to double check the accuracy of the general ledger. Sometimes transactions can accidentally go unreported or, in some cases, fraudulent activity may occur. Whenever you receive statements from the bank, make sure all transactions match up between them and the general ledger.

 

Need Help Maintaining an Condo & HOA General Ledger

Finances can be confusing. It is always helpful to have a professional on your side to make sure everything is being done properly. If you are having trouble keeping up with all the financial documents necessary to properly manage an HOA, call the experts at CSM. We have years of experience working with homeowner’s associations in almost every state in the US. We offer a wide variety of financial management solutions to give you all the assistance you need while still maintaining your independence.

 

Find top companies working in the Condo HOA and Management industry in Florid on our Directory!

 

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