Community Association Matters

The podcast that provides solutions to the problems facing condominium and homeowner associations in the State of Florida.

What are fiber optics, the importance of 5G for HOAs and Much More 11/17/2020

What to Do Before and After a Hurricane. 08/26/2020

Your Questions Regarding the Impact of Coronavirus on Associations Answered 04/01/2020

Is that Alligator an Emotional Support Animal? 03/04/2020

Hurricane Preparedness 101 09/21/2018

Hurricane Preparedness 101 In 2017, Hurricane Irma came by Florida but luckily it was not a direct hit. Unfortunately, it still caused enough damage to a number of people and property. Though there were policies and procedures issued since this calamity, we as individual homeowners, board members, and associations still need to know what to do to get ready for a hurricane. In this episode of , Assistant Code Compliance Director Edgard Estrada from the City of Doral explains the things we need to prepare before and after a hurricane hits. Before the hurricane Food and water. According to Edgard, 1 gallon of water should be allotted per person per day, while for pets such as dogs and cats, ½ gallon would be enough. Make sure to prepare with enough water for at least 3 days. As for food, it’s best to stock up on non-perishable foods such as canned goods (tuna, Spam, sausages, etc.) which would last you and your family for at least a week. Hurricane kit. The hurricane kit includes your first-aid: bandages, gauze, medicines like ibuprofen and paracetamol. It also should contain a flashlight and extra batteries. It is good to also have a portable radio for news alerts. Ultimately, the hurricane kit must be easily accessible, and all members of the family should know where it is kept. Remove lawn furniture. Hurricane force winds can easily blow lawn furniture. This is why Edgard says items like garden gnomes, beach chairs, grills, etc. should be temporarily stored indoors at least 72 hours before a hurricane. If something’s too big to store at home or in a storage shed, then at least tie it down to make sure they don’t become projectiles flying out in a hurricane and cause bigger physical damage to property and individuals. Tree pruning, trimming, and grass cutting. Tree pruning is important in order to keep trees sustainable, making them stronger and able to withstand strong winds during a hurricane. But some homeowners and community associations don’t know that there is a proper way to prune trees. If done incorrectly, a tree will grow back weaker, and thus the tree (or its branches) can come right off at the slightest force wind. For this reason, Edgard recommends hiring professional landscapers that have arborists on staff who can perform proper tree pruning and trimming. Standard guidelines (which can be found online) should be followed. Also, this should be done before hurricane season — tree debris can be a big liability to the community in general. A common mistake some owners make is mowing the grass and blowing the grass blades into the sidewalk and into the street. This should not be done as it can cause clogging of the storm drain, which effectively results into a greater flooding event. After the hurricane Assess for damage. Edgard suggests that the first thing homeowners and associations should do is to assess for any kind of damage in the exterior. Clear your driveway. It’s best if you have a chainsaw in the event that there are large trees in your general area. Look out for hazards. Just because the wind and rain events are over doesn’t mean that danger is over. If there’s flood water, be careful going into waters because you don’t know how deep it is, or it might have cables that can cause serious electric shock. Also check out for places where stagnant water can be inadvertently stored. Look out for possible mosquito infestations, especially now with the recent diseases like the Zika virus. Check potted plants, empty any fountains and containers that might be filled with water. Be mindful of other exterior structures as well, such as swimming pool barriers that may have fallen after a storm. Restore those immediately as leaving it unattended may lead to untoward incidents. Debris removal. Aside from individuals helping out in the cleaning, associations should also try to communicate with landscapers that service the community, so they can give priority in cleaning up your community. But on a similar note, everyone should still be patient with the landscapers (and also the FPL) because nothing can be done to rush clean-ups and repairs. We’re prepared… now what? If individual owners are prepared for the before and aftermath of a hurricane, so must community associations. They should have measures and countermeasures for this situation. For instance, there is an ordinance in the city of Doral which requires homeowner associations to have an emergency plan in place. Each should provide general information, like the board of directors and their contact information, and also proof of insurance for the community as well. The association should make sure that the community is covered legally and have enough reserves to cover any unforeseen emergencies. To conclude, Edgard believes that a community association should have an effective plan of action which is properly disseminated to homeowners so that the community as a whole is prepared in the event of an unexpected calamity. /episode/index/show/communityassociationmatters/id/6948297

Can your Association readily file defect claims against developers? 08/24/2018

Can your Association readily file defect claims against developers? What happens when a condominium has a construction defect? A construction defect is a problem in the workmanship or in the materials used to build a structure, which ultimately causes harm to a person or property, usually amounting to huge financial damages. The common solution for many community associations in this circumstance is to file defect claims against the developer of the condominium. Under Florida law, an association can bring claims against a developer within 10 years from when the original construction was completed. But filing construction defect claims is not as easy as it sounds. In this episode of , we speak with commercial litigator Phillip Joseph who co-chairs the law firms of . He identifies four common obstacles that associations face which prevents them from filing defect claims against developers… Board inaction Philip gives three instances of inaction where board inaction can hinder a defect claim: The first instance is when a board member holds off filing defect claims due to conflict of interest. Imagine a board member reluctant to bring in claims on behalf of the association because it would hinder his chance of selling his unit. The second instance is when the board does not take necessary steps to properly investigate the association’s properties for defects such as retaining consultants, engineers, architects, and attorneys to look at possible construction and design issues, and to give advice so that the board can file defect claims. The third instance is when the board is faced with the reality of construction defects— instead of filing claims, they are paralyzed by the enormous responsibility before them. Board members may tend to hold off on decision making or would want to delegate that responsibility to owners. Developer’s ‘poison pills’ Phillip says that many developers, in an attempt to avoid construction defect claims, put anti-litigation provisions or ‘poison pills’ in governing documents. These hinder or prevent boards and community associations from bringing claims. The most common poison pills are the following: to get a majority vote (75-80%) of owners to approve filing for a claim; to give only a short period of time for owners to make the vote (around 60 days); to get owners to approve a maximum litigation budget; and to have owners specially assessed, i.e. all owners have to pay upfront prior to litigation procedures Though these anti-litigation provisions are often unenforceable, the board should still be careful when dealing with governing documents and should seek counsel with specialized litigators. Florida state laws There is a statute in Florida which says that if poison pill provisions are put in the governing documents, Florida law will most likely invalidate those provisions (making them unenforceable). Unfortunately, this only applies to homeowner associations and not condominium associations. But according to Phillip, though there isn’t a statute directly on point for condominium associations as there is with homeowner associations, if you have a similar poison pill provision that you saw in a case from a different state, like the in Massachusetts, then a Florida court looking at those provisions would basically decide the same as the Massachusetts court. Trends in the industry A significant interest of developers, building contractors, and design professionals in Florida’s economy means a lot of ongoing constructions throughout the state. As a result, there are a lot of claims being brought all throughout. But what is the trend among other states? On one hand, Maryland in 2018 has gone on one extreme by taking matters into their own hands. Maryland legislators no longer waited for a court to decide these issues: they instead specifically passed laws that prevented developers from including poison pill provisions in governing documents. On the contrary, Utah passed legislature in 2017 which made it extremely difficult for associations to bring claims against developers. First, the board must send notice to all its owners that it’s going to sue. Second, 75% of voting owners must be in favor of proceeding. Lastly, all owners must pay 10% of all the fees and costs of the anticipated litigation. All states have different trends with regard to legislature, but ultimately, Phillip believes that the solution is to raise the board associations’ awareness about poison pill provisions and educating them to go forward with bringing in claims when necessary. /episode/index/show/communityassociationmatters/id/6948290

Does your Association have the correct Collection Policy in place? 06/22/2018

Does your Association have the correct Collection Policy in place? In 2008 Americans experienced the worst financial crisis since the Great Depression of the 1930s. The drop in real estate prices caused tremendous turmoil and had far reaching impacts worldwide. Banking and insurance institutions closed down; the largest mortgage lender and the largest savings and loan companies crumbled; and the auto industry giants had to be bailed out by the Federal Government. Hundreds of thousands of people lost their jobs and, in some cases, some lost their entire life’s savings. The economical outlook was bleak! It was no different for community associations. Many owners could no longer afford to live in their homes and stopped paying their maintenance fees. Associations’ receivables reached an all-time high and the number of foreclosures in South Florida went through the roof. Times were tough! However, associations with a strong collection policy were able to recover. The financial crisis of 2008 caused us all to evaluate our economical situations and in some cases we had to wait for the local and federal governments to step in and make a difference. Today – life is very different. Unemployment is at its lowest and home prices have climbed back up. Associations are enjoying low receivables and most do not have a collection problem. However, that does not mean that one many not be looming and Associations need to be prepared. Board members must be aware of the collection process and ensure that their association has a good collection policy in place. In this episode of we speak with Jason Martell with about the steps taken in the collection process for association assessments. Jason recommends that the association send a past due balance letter within 15 days after the payment due date. If the owner does not pay, the association should then submit the account to their attorney for collection. According to Jason Florida Statutes require that two (2) letters must be sent: first, a Notice of Intent to Lien letter; and then a Notice of Intent to Foreclose letter. In a condominium association the Notice of Intent to Lien provides the owner with 30 days to satisfy the delinquency before a lien is recorded. For a homeowner association the Notice of Intent to Lien must provide the owner with a 45-day notice. If after the appropriate time has lapsed and the owner has not submitted payment or made payment arrangement with the association, then a Notice of Intent to Foreclose Demand Letter is sent to the owner and a claim of lien is filed against the property. The homeowner can then contest the lien informally by simply reaching out to the attorney’s office or they can do it formally by submitting and recording a Notice of Contest of Lien in the public records. The association then has 90 days to file its lien foreclosure lawsuit. If the matter has not been resolved at this stage then Jason recommends that the association proceed by foreclosing the lien. Before a foreclosure is filed, Jason’s office takes into consideration whether there is an active bank foreclosure against the owner or if the owner has filed for bankruptcy. Once it is determined that foreclosure is the best option for the association, the lawsuit is then filed. The lawsuit must name the following parties: all title owners, unknown tenants, and all inferior lien holders. All parties named on the suit must be served. If the unit has a tenant the association is entitled to collect the rent from the tenant until the account is brought current. If one of the parties cannot be served through individual service or through substitute service, some additional steps must be taken by the attorney to serve via publication. Once the parties have been served, a party in a lawsuit has 20 days to file a response. If no response is filed the attorney can then proceed to file a default against that individual. The attorney can then ask for a Motion for Summary Judgement where they ask the courts to enter a judgement in favor of the association. Once the courts enters that judgment, they will issue a sale date. The property is then sold at auction. A third party can purchase the property at the foreclosure auction. In this scenario the third party winner is likely responsible for all monies owed to the association. According to Jason, if the association is the winning bidder then it should obtain a writ of possession to gain physical access to the property. He also recommends that the association acquire basic liability insurance and change the locks. The association can then rent or sell the property. Jason clarified that the association is not required to pay for the mortgage nor the property taxes. If everything goes well the association should recover all of its dues. For associations that wish to speak with Jason to see how his firm can help them establish a collection policy and collect past due assessments, they may contact him at 407-377-0890 or via email at . Don’t miss this episode of . You can click here to listen in to this podcast. Don’t forget to subscribe to the podcast so that you don’t miss future episodes! /episode/index/show/communityassociationmatters/id/6734921

Is your Association discriminating against persons with an Emotional Support Animal? 05/04/2018

Is your Association discriminating against persons with an Emotional Support Animal? Lets assume your community has a no pet policy. For years that policy went unchallenged, but now your association finds itself with an accommodation request from an owner for an Emotional Support Animal. Is your association required to approve that accommodation? Is it legal for you to ask for additional documentation? What are the consequences if you deny such a request? These answers are becoming more common today than they were in the past. With the improvement in technology, associations are facing challenges to their policies and procedures that were unheard of just a few years ago. In order to answer these questions, in this episode of Community Association Matters, we speak with Donna Dimaggio Berger, Esq. from the law offices of . First, we have to understand what is a disability. A disability is a physical or mental impairment, which substantially limits one or more of such person’s major life activities. Major life activities include caring for oneself, walking, talking, seeing, hearing, speaking, breathing, learning, working, and performing manual tasks. There are physical disabilities as well as mental disabilities, such as depression, anxiety, panic disorders, stress related issues, OCD, PTSD, learning disabilities, autism, and ADHD/ADD, to name a few. Next, it is important to begin making the distinction between Service Animals and Emotional Support Animals, collectively called Assistance Animals. According to the US Department of Justice, a Service Animal must be registered and are trained to do work or perform tasks for a person with a disability. Service Animals are working animals and are not considered pets. Service Animals are typically governed by the ADA (Americans with Disabilities Act). The ADA covers hotels, restaurants, and other public venues, including condotels, and condominiums that have retail space. However, the Fair Housing Amendment Act does cover associations as they are housing providers and, among other things, it protects individuals from discrimination because of one’s race, color, religion, national origin, sex/gender, familial status, and/or handicap/disability. According to Donna, an Emotional Support Animal does not need to be registered and is not just restricted to being a dog or miniature horse; an Emotional Support Animal can be any type of animal as long as it does not conflict with municipal or local ordinances. In addition, an Emotional Support Animal does not need to have a skill other than providing emotional support. An individual requesting an accommodation for an Emotional Support Animal must provide a letter from a licensed medical professional verifying that the individual has a disability and that one of the major life activities is affected. The letter should also describe the need for the specific accommodation or modification and must demonstrate the relationship between the disability and accommodation or modification. In addition, the accommodation must be reasonable. With today’s technology, some medical professionals may be speaking with a patient through teleconference. So although the medical professional is not in the same city or country as the patient, an argument can be made that the medical professional is in fact treating that individual. This is where some it becomes difficult for associations. How does an association Board of Directors or manager know when a request for accommodation is valid or when it is fraudulent? If an association denies the accommodation they may be exposing themselves to liability. Donna recommends that an association adopt as a policy that all requests for accommodation be submitted to the association attorney who can perform additional vetting and rule out possible abuse. In addition, it is a deterrent for those that are not legitimate. It is also important that Board members understand that asking someone with a physical disability that is obvious, for a letter from a doctor that may in of itself be a violation. However, per Donna, if the disability is not easily recognizable then the Board should ask the individual for a letter. She adds that accommodations can be revoked if the accommodation is no longer reasonable. Her firm has successfully revoked accommodations in the past. However, Donna warns associations not to deny a request for accommodation for an Assistance Animal without consulting the association’s attorney. It is important that all individuals be treated equally and that is why establishing a policy is the best course of action. It ensures uniformity and in forwarding all accommodation requests to the association’s attorney, the association’s Board is limiting their exposure. /episode/index/show/communityassociationmatters/id/6549230

December 31, 2019 is fast approaching! Do you know why it is significant to your high-rise condominium? 03/30/2018

December 31, 2019 is fast approaching! Do you know why it is significant to your high-rise condominium? Some time last year in the summer, I turned on CNN, as I typically do to bring myself up to speed with the news. I was horrified at the video before me; it was showing an apartment building ablaze in London. According to reports, 79 people perished in that fire and more than 600 residents were impacted by this fire that quickly spread through the 24-story apartment building. I immediately began thinking, could this happen here. Not only did this incident impact me, it also impacted Florida Governor Rick Scott’s decision to veto Committee Substitute for Committee Substitute for House Bill 653. In his letter to the Secretary of State dated June 26, 2017 Governor Scott wrote, “[w]hile I am particularly sensitive to regulations that increase the cost of living, the recent London high-rise fire, which tragically took at least 79 lives, illustrates the importance of life safety protections.” What was Govern Scott referring to? HB 653 would have allowed high-rise buildings from opting out of the Engineered Life Safety System (commonly referred to as ELSS) with a two-thirds vote from the membership. In vetoing this bill, high-rise buildings have until December 31, 2019 to provide full sprinkler system protection throughout the building. A high-rise building, defined as a building greater than 75 feet in height, can “Opt-Out” of this requirement with a majority vote from the Board of Directors. However, associations that “Opt-Out” are required to implement an ELSS. To get more information on this requirement and to understand an ELSS better, I reached out to Robin Collier from According to Robin, the ELSS is a report that provides an analysis of the building’s life safety components. It is prepared by a qualified engineer and essentially is a score-card that grades your building’s life safety features depending on the types of life safety systems the building currently has in place. The engineer will then make recommendations to bring the building up to code, which includes fire sprinklers throughout the common areas as well as one sprinkler head through the front door of each unit. High-rises are also going to be required to have integrated smoke detection and alarm system; as well as a system of approved compartmentation to prevent a fire from spreading. It is crucial that an association understand the recommendations being made by the engineer. This is because as soon as an association signs off on this report, they have to meet its requirement. Because this report looks at the various life safety components, several contractors will be working in your building at the same time. Robin recommends that the association retain the engineer to not only provide the ELSS report but also to serve as the conductor through this process. It is important to also discuss how these contractors are going to get paid and what is their exit strategy. Ideally the engineer should conduct the inspection of the work performed to ensure that the work was done in compliance with the plans and the contract. Naturally, it is important that associations also involve their attorney to understand the agreements that they are entering into and help them navigate through the process. Board of Directors should take the time to get to know their engineer and contractors. Robin recommends that associations have the vendors do a presentation to inform the Board of the work to be performed and estimated time frame from beginning to end. Robin is extremely passionate about this topic and we highly urge you to listen to this latest podcast of . You can click here to listen in to this podcast. Don’t forget to subscribe to the podcast so that you don’t miss future episodes! /episode/index/show/communityassociationmatters/id/6414421

Thought you knew it all about surety bonds? 02/23/2018

Thought you knew it all about surety bonds? Whenever a community is working on a project, I often wonder whether they will need a Surety Bond. I have heard they can be expensive and can be complicated to enforce. At other times, I have heard that they are a must! I was lucky that Alex Barthet of The Lien Zone was available to help us learn a little bit more about surety bonds. Alex is a partner at Miami Construction Lawyers, which, as its name implies, specializes in construction law. Alex has been an attorney for almost 20 years and has served as the Chairman of the Miami-Dade Council, Associated Builders and Contractors Florida East Coast Chapter (2013) and Chairman of the Education Committee, Associated Builders and Contractors Florida East Coast Chapter (2013). He hosts his own podcast, Lien Zone, and is a mechanical engineer by education. He is a leading expert in the field and I was very fortunate that he took time out of his busy schedule to sit with me. It is important to understand the difference between a surety bond and insurance. With insurance, you pay a premium and in return they cover a claimable event within the parameters of the policy. The insurance company does not expect you to pay them back for the cost of the claim. In a surety bond, the surety will expect to collect the money they pay out in a claim. This is because a surety bond is a contract between three (3) parties, where one party is responsible to the second party for the performance of the third party. Surety bonds provide a sense of security and can provide peace of mind. According to Alex this is because the surety bond has performed its due diligence on the contractor. This includes reviewing the contractor’s financial stability, years in business, and past performance. A surety also investigates the contractor’s pending and past lawsuits. As a result, not all contractors are bondable. A contractor that is bonded should be able to provide a letter of bondability that provides the limits for which a contractor is bonded. This is important as you do not want to hire a contractor with a $1 Million Bond for a $10 Million project. There are two (2) types of bonds commonly used by Associations: a performance bond and a payment bond. Lets explore a payment bond first. According to the Business Dictionary a payment bond is a deposit or guaranty that is submitted by a contractor as a surety that all sums to subcontractors, suppliers, and other creditors will be paid on time. A payment bond also keeps a property free and clear of any liens. This is especially important when an association hires a contractor, because it allows owners to sell their units free of any construction liens for a project being performed in the community. The performance bond protects the owner from any default or failure of the contractor to complete the terms of a construction agreement. A performance bond also ensures that the contractor completes the project, as well as all of the other terms stipulated in the contract. Surety bonds can serve as an assurance to owners in your association, that as a Board member, you have done the best you can in hiring a contractor that will be able to perform the work under the agreed upon price and within a specified time frame. The surety will step in and finish a project, when a contractor is not able to finish or comply with some terms of a construction agreement. Of course this comes at a cost; and depending on the total cost of your project, a surety bond can be expensive. The cost for a bond, according to Alex, ranges from .75% of the contract price (on the low end) to 2.5-3% of the contract price (on the higher end). It is recommended that as an Association you ask for a copy of the actual invoice for the bond because contractors use the bond as a profit center. Alex advises that the terms and conditions of the bond can also be negotiated. It is important that the Association have their attorney review the bond form in addition to the construction agreement to ensure that they are better protected. Alex recommends that the bond should not include a provision that it go into effect when a contractor is terminated. It is best that the Association be allowed to trigger the bond when a default is issued to the contractor. He also recommends that the bond include a time frame under which the surety has to respond to a claim. In addition to the protection a bond offers during the construction process, it also offers protection once the project is complete and is usually good for the term of the warranty issued by the contractor. To learn more about surety bonds, please listen to this week’s podcast of Community Association Matters. Alex also has his own podcast called the Lien Zone. You can click here to listen in to his podcast. Don’t forget to subscribe to the podcast so that you don’t miss future episodes! For more information on how Alex Barthet, Esq. can help you feel free to reach him at (305) 347-5295 or email him alex@barthet.com. /episode/index/show/communityassociationmatters/id/6277736

MRTA can have a serious effect on your Homeowner Association, find out how. 10/06/2017

How does the passage of HB 1237 affect your condominium association? 08/11/2017

How does irrigation help increase property values in your condominium or homeowner association? 08/04/2017

How does irrigation help increase property values in your condominium or homeowner association? There are many factors that contribute to your condominium or HOA unit’s property value. One of the fastest ways to impact property values in your association is by revamping your community’s landscaping. New bushes, seasonal flowers, and fresh mulch can go a long way in helping your community stand out. Buyers pay very close attention to a community’s entrance and their overall upkeep when considering buying a home in a condominium or homeowner association. To keep your newly landscaped area looking its best, it is important to ensure that your association’s irrigation system is working properly. In this week’s podcast of Community Association Matters we interviewed Laura Vasquez of the UF/IFAS Miami-Dade County Extension to help us understand the different components of an irrigation system and how to ensure that it is working efficiently. The Miami-Dade Extension has several programs, one of which is the Urban Conservation Unit where members of the team come out to condominium and homeowner associations to evaluate ways that they can help conserve water and provide participating associations rebates. Essentially, they review an association’s irrigation system, its design, the timers, and other components. The team then makes recommendations as to how your irrigation system can become more efficient and reduce waste. The association also receives rebates and irrigation equipment to help continue the water conservation efforts. Irrigation plays a pivotal role in ensuring that your plant life is healthy, because it provides one the most important resources a plant needs, water. Laura explains that even in the summer months associations should run their irrigation system. The reason for this, she adds, is that rain normally falls once a day, so all of the water comes in one period in the day. The evaporation rate is so much higher in the summer months due to the high heat index. In addition, the soil is not able to retain all of that water and as a result, the excess water runs off. Thus, plant life do not receive the nutrients it needs. Ideally, it is best to hand water your plants because you control how much water you give and for how long. Unfortunately, in today’s hectic day and age, hand-watering is not feasible; not to mention impossible in associations with vast green areas. The problem with irrigation systems is that people usually set them but do not check on them regularly. The system could come on when not needed; there could be a broken pipe that is undetected; or the direction of the sprinkler heads can overlap. It is important managers, maintenance staff, and even Board members be familiar with the community’s irrigation system to ensure that your system is working efficiently and correctly. An automated system is great and has tools that can help you do a better job of maintaining your irrigation system. And yes – there’s an app for that! Weather devices such as a rain sensor, backflow preventer devices, and irrigation sub meters are important parts to help conserve water and make sure that your system is working well. In addition, these components help ensure that you are not overwatering your plants, as that too can be harmful to plant life. It is also important to understand that the soil in South Florida is very different throughout the different regions. For example, the soil in Homestead is vastly different from the soil in Miami Beach. Your irrigation company and/or landscape company should have a basic understanding of this to help your condominium or homeowner association prevent run off. One of the ways that the irrigation industry is helping in conservation efforts is through technology. There have been tremendous advances in irrigation technology. For example, there are Smart Controllers such as Evaporation Transpiration (ETs) that allow us to enter the amount sod we have, the different types of plants in a zone, the soil type, the type of sprinklers in a zone, and the location of that zone as it relates to sunlight and topographic layout of the area (if it is flat or has a slope). All of this information is calculated, along with the amount of rain and temperature. It then regulates how much water that zone needs based on all of this information. Soil moisture sensors are separate to the Smart Controllers. These sensors go underground and should be located in numerous locations throughout the community. It then sends a signal to the timer in the morning letting it know how much water that soil received that day and if the soil has reach capacity. A message is then sent to the timer so that it does not turn on. Both of these systems are extremely effective and have been proven to save 50% of water consumption. In addition, flow sensors let us know when there is a break in a sprinkler line. Flow sensors are attached to the smart controllers and it turns off the timer in that zone when the water flow is above the average water flow for that zone. In ensuring that your community’s irrigation system is working properly and efficiently, you do your part in helping save water and helping your plants flourish. The UF/IFAS Miami-Dade Extension can come out to your condominium or homeowner association for a free evaluation of your irrigation system. Many of our associations have taken advantage of this initiative; we highly recommend it. For more information, you may contact Laura Vasquez at (305) 248-3311 extension 239 or visit their . As always, there is a lot more that is discussed in the podcast. Click here to listen to this week’s episode and to subscribe to future episodes. /episode/index/show/communityassociationmatters/id/5607185

Why doesn't your landscape look as nice? 07/29/2017

Why doesn't your landscape look as nice? I had a very difficult time passing the science courses in college. In fact I struggled so much that I had to drop it twice and failed a third attempt. I knew that it was impossible; and certainly wasn’t for lack of trying. I was so pleased when I learned, that as an alternative, there was an Environmental Science class that could substitute the biology requirement; and an Environmental Pollution class that substituted the chemistry requirement. I knew that was my way out. Those classes were by far the most enjoyable classes I had taken. Not only did it provide me with a thorough understanding of the natural environment in South Florida it also gave me a new appreciation for our environment. So for this week’s podcast, I invited Henry Mayer of the UF/IFAS Miami-Dade County Extension to join us and talk about how the environment impacts our condominium and homeowner associations and what we need to do to safeguard them. In particular there is a great concern that there is too much development and construction in South Florida and that it can have a detrimental impact one of our most valued resources, water. Per Henry, we have 5 million acres of lawn in the State of Florida and we need to manage our resources carefully to ensure that we are not wasting water. Water of course has a tremendous impact on our lives and provides a lot of the nutrients plants need to keep their cell content. It is important for those of us managing irrigation systems in our communities, be extra careful that we do not over water our plants. In conjunction to water, plants need good soil to provide plants with additional nutrients they need to grow. Henry further adds that non-native plants, such as Ixoras, Magnolias, Foxtails, and Gardenias tend to do very poorly in South Florida because our soil is very alkaline. He then clarifies that compacted soil, which means that the soil has lost all of its nutrients is caused by machinery, when you park your vehicle on the grass, or you regularly walk on a trail. In addition to water, nutrients and soil, a tree’s root system plays a major role. When seeds germinate, early in plant’s life cycle, they produce roots going down; but those roots in South Florida tend to die very soon because our water table is very high and they do not have enough oxygen. When this happens the lateral roots grow. Lateral roots are very close to the surface and are very important as they provide anchorage to the tree, allow for storage of nutrients, and help absorb water with additional nutrients. Henry adds that most roots are in the top 2 to 3 feet of soil. There are some roots that often times grow above the surface. Henry informs us that this happens because the tree is looking for oxygen. Unfortunately, in communities, lateral roots are a major tripping hazard. This is especially true in older communities built many years ago where developers installed Black Olives because they grew fast and provided a lot of shade. A Black Olive’s root system is extremely invasive and can often times cause damage to the plumbing lines, lift up pavement or sidewalks that can cause a tripping hazard, and, in some extreme cases, the roots can cause structural damage. To help reduce liability in your community, you can cover the roots with either 1” to 2” of gravel or with no more than 2” to 3” of mulch. Because mulch decomposes it should be reapplied every 6 months. If the roots are so invasive that you must cut them, he recommends that you stay away more than 5 times diameter the trunk. He provided an example: a tree with a 20” diameter multiplied by 5 equals 100” or 8 feet. You should not cut any roots within those 8 feet that are close to the trunk. Those roots are anchorage roots and they help stabilize the tree. If these roots are cut the tree’s stability is compromised, especially with Tropical Storm or Hurricane winds. And while we are discussing Tropical Storms and Hurricanes, Henry recommends that trees be trimmed before Hurricane Season. He stated that the general guidelines require that not more than 25-30% of canopy be trimmed in any one event. There are different techniques used by arborists to reduce the canopy but one cannot “hat-rack” the tree. He adds that arborists should provide specific information as to how the branches are going to be cut. We all know that landscaping is one way to miss a big impact on a community’s value. In order to have a successful landscaping project, the way your trees are planted play a big role. I know I have never had a green thumb; and have killed every plant I’ve ever received. I now know that it is because I was making my planting holes too deep. Henry informed us that you cannot plant trees too deep because this prevents the tree from getting the nutrients it desperately needs and the roots do not develop. The other consideration is the planting hole has to be three times wider than the root ball. In addition, new plants need a lot of water for the plant to really grow. The team at the UF/IFAS Miami-Dade County Extension is able to come out to your community free of charge to conduct an assessment of your common area and help you learn what you can do to improve the landscaping plan in your community. For additional information you may visit . There is so much more information provided in this podcast, click here to listen to it in its entirety. For more information on how Allied Property Group can help your community, call us today at 305-232-1579. /episode/index/show/communityassociationmatters/id/5589035

New requirements for estoppel certificates go into effect July 1, 2017. Do you know what your condominium or homeowner association is required to do? 06/30/2017

New requirements for estoppel certificates go into effect July 1, 2017. Do you know what your condominium or homeowner association is required to do? By: Ana Sanchez Rivero, CAM Estoppel letters or certificates are often prepared by an association’s management company. It should normally include the name of the owner, property address, monthly dues (whether regular or special), any fees due upon transfer, balance due, pending violations, and insurance information. Senate Bill 398 signed into law by Governor Scott, which goes into effect on July 1, 2017, now requires that in addition to that information other information be included, and regulates the fees that can be charged by an association and/or its agent in preparing an estoppel letter or certificate. In this week’s podcast of Community Association Matters we reached out to one of the leading condominium and homeowner association firms in South Florida to help us decipher the new law. Maria Victoria Arias, Esq., an attorney with Siegfried, Rivera, Hyman, Lerner, De La Torre, Mars, & Sobel, PA was kind enough to discuss the numerous requirements mandated under this bill. The estoppel certificate or letter must now be provided “within 10 business days after having received a written or electronic request from a unit owner, the owner’s designee, a unit mortgagee, or the mortgagee’s designee.” In addition, the Association is required to designate a person or entity on their website as the one who is responsible for receiving the estoppel requests. The website must include the name of that person or entity, their street address, or email. The certificate must then be hand delivered, mailed or emailed to the entity that requested the estoppel certificate or letter on the date that it is issued. The statute now modifies the fees that can be charged to: $250 for the estoppel letter or certificate; an additional $100 for an expedited request (expedited means that the estoppel letter or certificate will be provided within 3 days); an additional $150 can be charged if the account is delinquent. The statute also stipulates a range that can be charged to owners of multiple units. Maria adds that the statute also requires that the estoppel certificate contain: Date of issuance; Name(s) of the unit owner as reflected in the records of the association; Property address to include unit number; Parking or garage space number, as reflected in the books and records of the association; Attorney’s name and contact information if the account is delinquent and has been turned over to an attorney for collection. No fee may be charged for this information; Fee for the preparation and delivery of the estoppel certificate; Name of the requestor; Assessment information and other information to include regular periodic assessments, interests, paid through date, due dates of all items, including other monies that could be owed. This information has to be itemized and detailed. Other information to be included, in a “yes or no” format: if there is a capital contribution, transfer fee, resale fee, or other fee due; if there is any open violations of the rules and regulations; if there is a right of first refusal; if yes, do the members or the association exercise that right; Provide a list of and contact information for, all other associations of which the unit is a member; Provide contact information for all insurance maintained by the association; and Provide the signature of the officer or authorized agent of the association. Maria further adds that the statute now states that the estoppel is valid for 30 days. If the estoppel certificate is sent via regular mail to the requestor then it must be valid for 35 days. Maria expressed a few concerns over a few of these provisions. For example, the parking space assigned to a unit is information that is often not recorded with the governing documents and is often lost in the transfer of documents. Maria clarifies that the statute says “as reflected in the books and records of the association”; but the question becomes that the statute does not say what that document should be. Often times, an association uses an Excel spreadsheet that may have inconsistencies and may be invalid. Maria recommends that associations reach out to their association’s attorney so that they can prepare some language that can be added to clarify this in the estoppel certificate or letter. The other concern that was discussed is the issue of a transfer fee. Maria clarified that the transfer fee is used interchangeably with application or screening fee. Maria expressed that associations should consult their attorney to determine whether this is something that the association even has a right to charge this fee. Maria adds that there is a 2-prong test. First, the association must have the right to approve the sale or lease in their documents. Secondly, the documents have to state that the association can charge a transfer fee for that provision. Maria tells us that with regards to the right of first refusal, if it is stipulated in the documents, then you must answer yes, because of the way that the statute is requiring the question be presented on the estoppel certificate. Maria suggests that if the association is waiving their right of first refusal that they contact the association’s attorney to prepare a waiver. Again, she stresses that this is another area that should be consulted with the association’s attorney. For information on how Maria V. Arias, Esq. can help your association click here or you may call her at (305) 442-3334. For information on how Allied Property Group can help your condominium or homeowner association navigate thru these changes, call us today at (305) 232-1579 or visit our website at www.alliedpropertygroup.net. /episode/index/show/communityassociationmatters/id/5493541

It’s budget season! Does your Board know what is required? 06/23/2017

It’s budget season! Does your Board know what is required? It’s that time of year again! Yes budget season. It’s time to begin reviewing the financial reports and begin calculating costs for next year’s projects. Condominium and homeowner associations are governed by many regulations; budget reporting is one of them. It is important that the Board of Directors of your condominium or homeowner association understand the various elements that make up your community’s budget. To get an expert’s point of view, in this week’s podcast of Community Association Matters, we invited Pierre Vilme, CPA of Gerstle, Rosen, & Goldenberg, PA. Lets start with the basics. Budgets should be prepared by someone familiar with financial reporting. To ensure that your budget is based on actual figures you should start by pulling the most current financial report. Pierre recommends that associations review their August or September financial report, which will give them 8 to 9 months worth of financial information. Budgets must be prepared annually and before the end of the calendar or fiscal year. Pierre stated that he has seen situations where associations do not approve a budget before the end of the calendar or fiscal year and carry over the current budget into the next year. They then hold their budget meeting a few months later, this does not meet the requirement set by Florida Statutes. The budget should be finalized two months before the start of the next fiscal year. Pierre informs us that one way for associations to save time when preparing their budget is to write a description next to each line item and highlight the reasons for a variance. All association financials should be prepared on an accrual basis. If an association prepares their financials on a cash basis, they must make the necessary adjustments to the reports before the end of the fiscal year and ensure that it is on an accrual basis. Although preparing financials on a cash basis is very common for many businesses, because associations have a receivables component, the financials must be prepared on an accrual basis. The association’s receivables and bad debt are a very important consideration in preparing the budget. In order to establish bad debt, Pierre states that Board members should be familiar and consider the association’s business environment. For example, if owners normally pay within 30 to 45 days of being delinquent, those receivables should not be considered into the bad debt equation. However, those owners that are seriously past due for a year or more, should be considered. Because the financial statements are on an accrual basis and in order to ensure that you have reasonably accurate financial statements you must include bad debt to account for those owners that are not paying. During the real estate crash in 2007-2010 many associations acquired title to some of the units. Because the mortgagee’s foreclosure was pending, the associations often times rented those units. Pierre recommends that associations check with their attorney as to the best way to apply that rental income, but he suggests that it be applied to the owner’s ledger. If the account is brought current said rental income minus that unit’s monthly assessment fee should be reported as rental income and should be reflected on the budget accordingly. Pierre notes that associations should also consider ancillary income, such as laundry income or valet income. Especially in a scenario where an association is allowing a laundry company to lease their laundry rooms; that laundry income is subject to sales tax. The same applies to valet income where the association is renting out parking spaces that are not assigned in the governing documents to an individual owner. Sales tax reports should be filed with the State of Florida on a monthly basis. Florida Statute 718 no longer requires associations to perform a reserve study. The legislators are putting the burden on the board of directors and their fiduciary responsibility to being savvy as to the association’s finances. However, Pierre recommends that associations perform a reserve study every 2-3 years. Condominiums are required to have roof, paint, and paving reserves plus any other components stipulated in the governing documents. In a reserve study an engineer will inspect the building components, such as the roof, concrete, and paint then plug in that information into a software that will allow them to determine the cost to replace that component and its remaining life. There are two (2) methods in which to fund reserves. One is the straight line method and the other is the pooling method. In the straight line method you identify the component of each replacement item. The pool method still requires the association to know the cost of the replacement item but associations are allowed to pool the funds and are not required to break it down by component. However, there is no longer a benefit to choosing one method over the other. In both methods, associations are required to disclose how the funds were disbursed. For more information on how Gerstle, Rosen, & Goldenberg, CPA can help your firm you may visit their webpage www.grgcpa.com or call Pierre Vilme at 305-937-0116. For additional information on how Allied Property Group can help manage your association please call 305-232-1579. /episode/index/show/communityassociationmatters/id/5473325

What to do during and after a hurricane. 06/16/2017

What to do during and after a hurricane. A lot of focus is normally given to hurricane preparation. It is important to prepare and make sure that your family has as much information as it needs in case a hurricane does hit. But what do you do during a hurricane? And what happens after? This week’s podcast of Community Association Matters answers these important questions. According to the Official Broward County Hurricane Preparedness Guide, when the storm arrives everyone should stay in a safe room. They identify a safe room as an interior room in your home without windows or doors. Good examples of this are closets, bathrooms or small storage rooms. Try to select a room that is central so that it is easy for everyone to access it. Clear out the room before the storm hits so that you are not doing that in the middle of the storm. Never open windows and doors; you must keep the wind out of your house. As Broward County’s guide states, “buildings do not fail because of unequal pressures inside and outside…[Opening windows and doors] allows wind to enter the building and increases the risk of building failure.” I have often wondered what I should say to my small children should a hurricane hit us. It is recommended that you comfort your children and reassure them that they are safe. You should talk to them and explain what a hurricane is. Broward County has a link on their website that can offer help to parents as to what to discuss with your child and how to keep the conversation age appropriate. Encourage them to express their feelings. They can do this thru a variety of ways, by talking, drawing or even playing. In today’s day and age where even young children have access to the internet, try to keep them from media reports. This can add unnecessary levels of stress, especially on a young mind. I remember that after Hurricane Andrew my dad and I ventured outside of our house to assess the damage. I was in shock. We got lost right away as many of the street signs and traffic lights had been knocked down or blown away. So right after a storm you should stay in doors, unless it is an emergency. There will be downed trees and power lines. Some of those power lines may be live so it is important to steer clear. Report sparking power lines to 911. Avoid standing water. In many cases, you will not be able to see what is underneath and you can step on a live wire, become injured with a sharp object, or get bitten by a snake. It is important to keep in mind that this water is contaminated and anything it touches can also become contaminated. Do not drink from the faucet until government officials have given the all clear. If your home has water damage, contact a licensed electrician and have them inspect your home before turning on the power. If your home receives natural gas, you should evacuate immediately if you see a broken gas line or smell natural gas. Ventilate the area by opening windows and doors. Do not light matches, turn on any light switches or use the telephone. Immediately call your gas service provider. You should contact your gas provider before the hurricane hits for instructions on what to do. Most hurricanes hit during warm weather and mosquitos can become a problem. You should take precautions by staying indoors at dawn and dusk; wear long sleeve shirts and pants to protect your skin; use repellent containing deets, except for children under two months. You should also remove any standing water as soon as you can. After a storm, you should assess the damages to your property. You can best do that by taking pictures or videos of your home after the storm. Whenever possible it is better if you can document your personal belongings before the storm. This way you can document what you own and the condition of your personal property. If there is a storm surge, some of these items can float away. Having taken pictures before can help show your insurance carrier that you had the item. You should then report the damages to your insurance representatives. Now if you are like me, you have become spoiled by air conditioning and the thought of spending one night without a/c is enough to drive you nuts! After Hurricane Wilma, I remember all of my family and friends going out and buying generators and we learned that generators bring forth a completely new set of problems. Broward’s hurricane guide provides some important safety tips when it comes to generators. If you install a permanent generator, you must pull the necessary permits and it must be installed by a licensed electrician. Use the generator in accordance to the instructions provided by the manufacturer. Portable generators should be placed outside in a well ventilated area. Never place a generator inside a home – this includes garages, basements or crawl spaces. Remember that we cannot see or smell carbon monoxide and it is deadly. If you begin to feel sick, dizzy or weak while using a generator – immediately get outside to fresh air and seek medical attention. If it is not feasible for you to have a generator it is important to stay cool. Keep an eye out for the symptoms of heat exhaustion. Staying tuned is very important during a hurricane and can sometimes be very difficult so be patient. Expect delays in cell phone coverage. Use the phone for necessary calls only. Sometimes text messages get through when voice calls will not. Remember that you can also use your car charger to charge your phone. Inevitably, after a storm there will be debris. Debris removal varies from city to city and from association to association. Priority will be given to debris that is blocking roads and that pose an immediate safety issue. It may take a days or even weeks for all of the debris to be picked up. If your home is damaged and you wish to begin making repairs it is important to remember to check your governing documents to see what you can and cannot do without association approval. You can also contact your association’s management company for additional information. Regardless, as we discussed in the previous podcast, it is important that you hire licensed contractors to do repairs and that you get permits from your local municipalities. You can check online to confirm that the contractor has a license and verify that he has insurance. Ask for references and verify those references. Check with the local building department to see if there are any pending complaints against the contractors. There are several organizations that offer assistance after a hurricane. For more information, visit your local municipality’s website for additional information. You can always visit alliedpropertygroup.net for how Allied can help your community. /episode/index/show/communityassociationmatters/id/5451377

Is your condominium or homeowner association ready for a hurricane? 06/09/2017

Is your condominium or homeowner association ready for a hurricane? In this week’s podcast of Community Association Matters we had the honor of interviewing Edgar Estrada and Natalie French of the City of Doral and discussed with them the different steps that residents, associations, and businesses must take to prepare for a hurricane. Edgar is the Assistant Code Compliance Director for the City of Doral and Natalie is the Media & Emergency Management Specialist for the City of Doral Police Department. Hurricane season runs from June 1 thru November 30th. Many of us know that there are 5 hurricane categories but not many know how these categories are determined. According to Miami-Dade County’s hurricane readiness guide the categories are broken down as follows: Category 1: sustained winds of 74 to 95 mph Category 2: sustained winds of 96 to 110 mph Category 3: sustained winds of 111 to 129 mph Category 4: sustained winds of 130 to 156 mph Category 5: sustained winds of 157 mph or higher It is important to note that according to Natalie, most of the damage is not caused by wind, it is caused by storm surge and flooding. Other causes of injuries in a hurricane are live wires and medical emergencies, such as heart attacks caused by the increased stress level caused by disasters. Some of the steps that condominium and homeowner associations should take are as follows: Trim the trees in the community. Edgar recommends that associations hire an arborist to determine the proper amount of foliage to be trimmed and where. By trimming the trees early the association can prevent a tree from becoming “top heavy” and falling down. It also prevents dead or lose branches from becoming lose and a projectile. Associations should also note that most municipalities do not maintain or clean the drains located in private communities. That role often times falls on associations. Condominium and homeowner associations should clean the drains in their community regularly. The City of Doral requires that drains be cleaned annually. Natalie suggests that associations check with their local municipalities because some municipalities offer debris removal after a hurricane even in private communities. The City of Doral offers this service but communities are required to sign an agreement with the city to implement this service in their community. Check your shutters and ensure that you have all of the screws and panels needed to properly secure the property. If you do not have hurricane shutters or panels, Miami-Dade County’s hurricane readiness guide recommends that you use 5/8” plywood to cover windows and doors. Remove all furniture and lose debris around the community. This includes pool and patio furniture, arm gate posts, and potted plants. If you do not have room in your community for temporarily storing these items, Natalie recommends that the association rent a storage unit for a few days. Individuals should have enough supplies (food, water, medicine, and personal care items) for three (3) days. Remember to buy plenty of batteries, a radio that is battery operated, and manual equipment, such as a manual can opener. If you are going to a shelter, it is important to check the county website for information as to what you can and cannot bring. Not all shelters allow pets, so it is important to plan accordingly. After a hurricane, Edgar urges board members and residents to be careful when hiring a contractor after a storm. Many unlicensed contractors come by communities and come to affected areas to take advantage of the situation. He added that most repairs require city and/or county permits despite the fact that it is an emergency repair caused by a hurricane. In addition, many contractors increase their prices dramatically during a hurricane. This is illegal and you should report price gauging to the proper authorities. The City of Doral also has an application called Doral Alerts; this application provides weather alerts. If you live in the City of Doral, you should subscribe. It is called Everbridge and can be downloaded for free as long as you have a smart phone. Natalie stated that you should check with your local municipality to see if they offer something similar. For additional information, please visit the City of Doral’s website at cityofdoral.com and click on Public Safety to access information on emergency preparedness. Below are links to additional websites with more information on hurricane preparedness. For information on how Allied Property Group can help your community please visit our website at www.alliedpropertygroup.net. Miami-Dade County Emergency Management: Florida Department of Emergency Management website for public information: Florida Department of Emergency Management website for businesses: /episode/index/show/communityassociationmatters/id/5430987

Do you know CAI? 06/02/2017

Is your condominium or homeowner association voting in the most secure manner? 05/26/2017

Is your condominium or homeowner association voting in the most secure manner? What if there were a faster and more secure way of registering proxies at your condominium or homeowner association meeting? Well there is and in this week’s podcast of Community Association Matters we interview Donna DiMaggio Berger, Esq. of Becker & Poliakoff, PA to discuss their electronic voting system, BP Ballot. According to Donna, voting online thru BP Ballot is more secure, increases member participation, and saves time. It is more secure than a paper vote for a few reasons. First, in order to vote online the owner must register and assign an email address to his account. The skill set needed to hack an email is much greater than the skill set needed to modify a paper ballot or proxy. In addition, online voting creates a digital imprint. If needed, an owner’s vote can be easily tracked. The need to verify a signature or ownership requirement at a meeting, is eliminated with online voting. Secondly, BP Ballot increases membership participation. The reason for this is that owners that do not reside in the unit typically do not vote. This is especially true for owners that live outside of the United States. With BP Ballot, owners can vote anytime they wish and from virtually anywhere in the world. In addition, the number of votes disqualified for procedural reasons is also reduced, thus increasing the number of votes cast. For example, in a condominium an owner can only vote for the number of positions open. If the owner votes for more than the number of positions open that ballot is disqualified. With BP Ballot the owner is not allowed to vote for a number greater than the positions open thus allowing their ballot to count. As another example, in most associations ballots must be anonymous. Neither the owners' name nor address or other indicating factor may appear on the ballot. If an owner accidentally writes their name on a paper ballot that ballot must be rejected. This is entirely eliminated with online voting. Lastly, BP Ballot also saves time. Normally in a paper election, it takes hours to register owners at the beginning of the meeting. Not with BP Ballot. It takes owners about 5 minutes to register themselves online. Once registered the owner can vote during an election of directors, an amendment vote, waiving of reserves, or an material alteration at their convenience. The owner will have a time frame determined by the Board in which to cast his/her vote. Donna recommends that the Board leave the dates open up until the day of the meeting to ensure increased participation. In order to implement online voting in your community, you should check with your association’s attorney to ensure that the correct procedure is followed. Each association and their governing documents is very different and that can mean that you may be required to follow a different process than the one we discuss here. According to Donna, a Board of Directors will have to pass a resolution at a board meeting to allow for this method. A statutorily compliant letter must be mailed out to all owners 14 days in advance. It is important that your association attorney draft this letter. A consent form should be mailed out together with this notice. The association can upload all of the required documents, whether it is a ballot, the amendments, or plans in case of a material alteration. In order to participate in BP Ballot, the owner/member must then consent to use online voting. Once the member has opted in and provided an email address, the association then uploads the list to the BP Ballot software. Once the owner registers they will receive a unique pin, which they need to file their vote. When the owner votes he/she will receive an email confirming their vote. If the owner registers, but does not vote right away, they will receive a reminder email three (3) days before the end of the voting period. It is important to note that associations cannot restrict members from submitting their vote thru paper votes. In other words, owners who wish to vote thru paper vote must be allowed to do so. The cost for BP Ballot for existing Becker & Poliakoff clients is $350; for non-clients the cost is $750. For additional information on BP Ballot you may reach Donna via email or via telephone at 954-364-6031. Don't forget to visit alliedpropertygroup.net/latestnews for this week's blog. /episode/index/show/communityassociationmatters/id/5393300

Can your association still get a loan without reserves? 05/19/2017

Can your association still get a loan without reserves? Special Assessment! I am sure those two (2) words alone got your attention. It probably even made the hairs on your body stand up. Condominium and homeowner association Boards hate those words, but it is a necessary evil. Especially for associations that do not have reserves in place to cover their major assets, such roof, pool equipment or resurfacing, replacement of gates, painting, or resurfacing of the roads. However, if your community has to replace its roof and you do not have the reserve funds available to cover the cost, your association must pass a special assessment. What happens if you have to replace the roof now and cannot wait until the special assessment is paid in full by all members? Is a loan the right fit for your association? Only you as a Board can determine what is the best solution for your community, but if you decide that getting a loan is the right thing to do then I recommend that you listen to this week’s podcast of Community Association Matters. I sat down with Cesar de la Noval from Executive National Bank to discuss their process for approving loans to associations. Before I go any further, it is highly recommended that you contact your association’s attorney to determine that you (1) have the ability to request a loan on the association’s behalf and (2) whether there are any specific requirements, voting or otherwise, that can significantly hinder the process. It is important to note that not all banks are the same and not all banks understand community associations. Some conventional banks have requirements that do not apply to condominium or homeowner associations. Before selecting a bank you should ask them what are their requirements for qualifying your association, in addition to their rates and term. For example, Executive National Bank does not require that the individual Board members sign personal guarantees and they do not file a lien on the association’s property, thus allowing owners to freely sell their unit. This is very important, especially since members of the Board change from year to year. The bank will most likely ask for the following documents: A completed application; List of Board members; A roster of owners; A list of the units rented; Current budget; Two most recent year end financial reports; Two most recent tax returns; Most recent interim financial statements; Aged Accounts Receivable Report; Complete set of the association’s governing documents; Letter from attorney certifying that the association may borrow the funds; and Copies of the signed contract and other proposals. Once they receive these documents, the bank may perform a physical inspection of your community. There are several factors that are taken into consideration when underwriting a loan. Executive National Bank requires that the delinquency rate be no higher than 10%. They specifically look at units that are more than 60 days delinquent. Some banks look at anything over 30 days. It is important to know where your community stands in this regard. Many banks will not even bother moving on to the next step if the association is unable to qualify for this basic requirement. Executive National Bank also considers the number of rented units in your condominium or homeowner association. If you have more than 80% of the units rented, they may not approve your loan. They also take into consideration whether one (1) investor owns multiple units and the impact the special assessment or increased payment may have on that one (1) investor. They would also like for the special assessment not to exceed 50% of the maintenance fee amount. For example, if your maintenance fee is $200 a month, the special assessment monthly installment cannot be greater than $100. The process can take weeks or months; it all depends on how quickly you are able to get the documents to the bank and whether or not a vote of the membership is required. Your association documents may have some other sort of requirement; it is crucial that you get your association attorney involved early on in the process. Cesar recommends that if you do take out a loan make sure it does not have a prepayment penalty. If an owner is able to pay the special assessment early, you want to make sure that the association is not penalized for that action. Most banks require that the association’s bank accounts are transferred to the bank that provides the loan. This is because they want to establish a relationship with you and for them to have a better picture of your financial situation. There a lot of factors that you as a board member must take into consideration when considering to get a loan for your next project. Loans can certainly help cash flow and allow you to resolve a serious problem now rather than later. But it does not come without risk. It is important that you get your association attorney involved early on in the process so that you can prevent potential problems. To listen to the podcast in its entirety click here. Don’t forget to check out our Facebook page for upcoming seminars and events. To get more information on how Executive National Bank can help your community, you may reach Cesar de la Noval at (305) 256-3311 or email him at . /episode/index/show/communityassociationmatters/id/5372318

Episode 6: Are your projects at a dead end? 05/12/2017

Episode 6: Are your projects at a dead end? During one of our previous podcast and blog, we discussed how to properly vet your vendors to help ensure that you have picked someone reliable and who will execute a timely and professional job for the association. But who manages the vendor? Who inspects and creates the punch lists throughout the job? Who checks up on inspections and the results of those inspections? In short, who supervises the supervisor? In the end, the vendor will be the expert and it is imperative that the right company is chosen for the job. While Board members and property managers are not project managers, there is a list of things that they can do to help keep the project in question moving along. Meet with the vendor often to discuss what was completed and what is next. The vendor should provide to you an understanding of the work, which was just completed and what to expect next. You should be able to track the work and look for proper workmanship. Did they clean up after themselves? Were they timely, did they properly relay any issues to you and offer solutions? Be wary of constant change orders and it is important you do whatever you can to keep them honest. Again, picking a good vendor is paramount. What inspections will be involved? Track the inspection by visiting the municipality’s website (time and day if possible) and to view inspection results. The inspectors will ensure that the follow-up inspections will have corrected deficiencies. It is highly recommended that you keep a record of those inspections and when they were finalized. Ensure that you have money on the association’s side. Whenever possible do not pay the vendor too much in advance. Too often paying the vendor in advance leads to gaps between phases of work. In South Florida, we see a high volume of vendors that are more interested in being paid and not as interested in whether they took pride in their work. Look for vendors who take pride in their punctuality, cleanliness, and workmanship. Once you pass final inspection, print it and keep a copy for your records. You want to have that in your hands prior to releasing any payments. Sometimes the vendor will press you for final payment prior to passing inspection or prior to providing you with a release of lien. Even if you pass final, ensure the vendor has been provided a final punch list of items so those items can be corrected prior or immediately after final inspection passes. I personally always try to have the punch list provided prior to final inspection so as to give the vendor ample time to correct any deficiencies. If you pass final and the punch list has still not been cured, I do withhold payment (of course you want to check with the attorney to ensure that you can do this). A lot of times there is a small 10% retainer built into the vendor and association contract specifically for this reason. The association attorney would come into play with a review of the contract prior to the commencement and that retainer to ensure that said language has been inserted into the contract. Ask for a release of lien (if applicable) prior to releasing any final checks. This is very important. I have seen associations come to Allied from other management companies and one of the issues they have is that a supplier has filed a lien on the association for lack of payment. The vendor was paid in full and failed to pay the supplier; this could be done by a roofing material supplier or a painting manufacturer. The association would then either be involved in litigation or pay the amounts owed to the supplier after all due diligence has been exhausted. I strongly recommend that you pay attention to detail along the way so as to avoid surprises. There will be issues along the way. Construction is at times unpredictable and unforeseen issues do arise. Look for all possible alternative solutions and not necessarily the least expensive ones. The long term success of the project depends much on making the right decisions regarding work order changes, materials used, and how you handle certain construction issues that arise during the project. For more information please visit our website . /episode/index/show/communityassociationmatters/id/5351795

How to gain control of your Board meeting 05/05/2017

How to gain control of your Board meeting I went to a presentation before an HOA a few years ago. I remember being all excited about the presentation and the possibility of picking up the business. We had just opened Allied Property Group and any business at the time would have been welcomed. The Board for that community had decided to schedule the presentation during a Special Assessment meeting. From the moment I walked in to that meeting, I felt the tension. The owners were all talking at the same time and some were even screaming. The Board was engaged in this screaming match with the owners. I kept thinking of my mother and how she calls me everytime there is a condominium meeting gone wrong being showcased on the Spanish news. It truly felt like this meeting was evolving into its own telenovela. After sitting in the meeting for 30 minutes, and all of a sudden, a board member picked up a chair and was about to throw it at an owner in the audience. Needless to say, I walked out of the meeting and did not make the presentation. All too often this is common place in Association meetings. Especially during Special Assessment and Budget meetings. After managing for almost 15 years and serving in this industry for more than 25 years, I have learned there are three (3) things that can help you run a successful meeting in a tense situation. The first thing you want to make sure you do is set the stage early on; review the agenda and do not deviate from it. The second thing is provide supporting documentation that the owners need to better understand the circumstances surrounding the special assessment or maintenance fee increase. Last, but not least, is that as a Board you always must maintain control. It is important that associations consult their attorney for the best way to implement this procedures. Every association is different and so are their governing documents. You want to make sure that before you implement any new rules you are aware of the proper procedures. So how do you set the stage? You set the stage by introducing yourself and the other board members. If you have a professional present at the meeting to provide a more detailed explanation, introduce them as well and explain why they are there. You then state the procedural rules that you have adopted and carefully review the agenda to make everyone aware of the topics you will discuss. It is always a good idea to have extra copies of the agenda. Sometimes we have a section on the sign up sheet where the owner can indicate if they wish to address the board on any particular matter on the agenda. You should be clear that everyone who signs up to speak will have the opportunity to address the board and/or ask questions. Inform the owners that they will have a 2-minute limit in which to address the board. The time limit is irrelevant, you can make it 2, 3 or 5 minutes; the point is to set a limit for each owner to ensure that everyone has an opportunity to address the board. I recommend that you inform the owners the reason for having time limits. People are more open to accepting procedures that they understand. You can give the owners this opportunity to speak at the beginning or end of the meeting. Some would argue that you can put it at the beginning of the meeting so that the owner can express their concern and not have to sit thru the entire meeting. I am a fan of doing it at the end of the meeting. If you did a good job during your meeting and explained everything, the number of questions that remain to be asked will be minimal. It is fine if you do not use this method. There are a variety of other ways in which to control owner participation and maintain order. Whatever method you choose is fine, just have a method in which to recognize owners and give owners the opportunity to speak. Secondly, you should provide as much information as possible related to the subject matter. I say this because a lot of times owners do not attend the board meetings where the actual discussion and considerations that lead to the decision to increase the maintenance fee or that led to the special assessment. It is important to have your documentation ready to show to the homeowners that you need to pass this special assessment. If you are replacing an item that breaks down or the roof, it does not hurt to have owners present at the meeting that are suffering from a leak in their unit. The owner affected by this roof leak will become an advocate for the new roof and the special assessment to cover it. In addition, have the invoices present to show the amount spent on those repairs. A professional opinion to show the cost savings by replacing the item versus repairing it is also helpful. As a qualified specialist, vendors are in a unique position to offer more details than you or your manager. You also want to provide the proposals that you have acquired from the different companies/ vendors. If it is an increase in the budget that is making the meeting contentious – provide evidence of the expenditures that caused the increase. If it was an insurance premium – provide copies of the invoices. If you are not able to bring these documents to the meeting, in the very least post them on your community website or ask owners to provide their email address so that the proposals can be emailed to them. Make it as easy as possible for the owners to access this information. Don’t forget to bring the minutes of past board meetings where these items were discussed or again, inform the owners that it is available to them at the association’s website. Do not chastise owners who did not attend past board meetings. They may not have been able to attend for a valid reason. But all of this is lost if you do not gain control of the meeting and stick with the agenda. As Board members you have business to discuss; business the affects the association. Your Board meetings is where you discuss this business. If you allow owners to run the meeting, you will never discuss that business and you will not achieve your goal. If owner is being disruptive, in a polite but firm manner inform the homeowner that he is being disruptive and is out of order. If the owner continues to be disruptive then ask the owner to leave the meeting. Everybody should follow the rules as they allow everyone the opportunity to get the information that they need. My experience has been that if you lay this groundwork, state the rules, you provide the documentation and you give everyone an opportunity to speak, the owners will respond positively. Do not forget to always consult with your attorney before implementing any of these rules so that he or she can guide you as to the proper way in which your Board can implement these procedures. Don't forget to visit our website for more information. Please like us on our Facebook page and send in your contact information to receive future blogs and information on upcoming educational seminars free to Board members. /episode/index/show/communityassociationmatters/id/5330749

Are the surveillance cameras in your community preventing crime? 04/28/2017

Are the surveillance cameras in your community preventing crime? Now a days everything is smart? We have smart phones, smart TVs, and even smart watches! But smart cameras? Believe it! Most communities have surveillance cameras to deter crime or property damage. Something happens in the community and then we look at the video footage to see if it captured the event. What if the cameras can be reactionary and not just preventative? Jason Mulhilvill of Kent Services sat down with us this week to discuss Kent’s vertically integrated services. By introducing analytics, they now offer smart cameras. Analytics can turn a traditional passive system to a smart camera. This allows them to provide real time information and is a proactive security measurement. Now you are thinking that this can be expensive or you will have to purchase new equipment, not so says Jason. They can go into most existing systems and add that analytics platform to the cameras. A community will most likely not have to purchase new equipment to make it match with the new software. So what is video analytics? It is a platform that is installed in the equipment. The area covered by the camera is then masked. If someone encroaches in that area, the cameras will pick it up and send an event notification. The cameras can distinguish whether it is an animal, a vehicle, or a person entering that area. The event notification is sent to the designated individual(s); whether it is the manager, a board member, or an onsite security guard. The event notification feature gives real time information and allows the parties to receive information as soon as the event is triggered. For example, if your community has surveillance cameras in the pool area and your pool hours are from 9am to 8pm. Then someone enters the pool area at 8:30pm; an email is sent to the designated parties. Lets say you wish to search for this event/incident. With this system, you now have the ability to search for this event. Rather than spending hours reviewing video footage, your security team, committee, or property manager can merely type in a certain time frame and it will take them directly to the event within the search criteria. With the analytics platform, the cameras also become interactive. When there is an event, the command center receives a notification and can see the event occur in real time. The cameras will also be able to identify the location of the event. The guards at the command center, thru a speaker, can communicate with the perpetrator and/or call the police as soon as the incident occurs. This is an extremely effective tool and can prevent a crime from being committed or a tragedy from occurring. This system can also work in tandem with Kent's BMX software. BMX is a video tele-entry system. This system allows residents to provide a virtual key, which is a QR Code, for special visitors, such as their landscape crew, a nanny, or a housekeeper. The resident can control who receives them and on which day and time that individual is allowed to come in. Management can then run reports to determine who has received a QR code. This system can also be used as a Smart Guard; where the camera system and intercom can eliminate the guardhouse position. This can represent a significant savings for many communities. The association can also restructure their budget and perhaps add other security measures, such as a roving patrol. There are a variety of ways in which this system can be implemented. In one case there is a guard that will tend to the visitor and the other a computer that greets the visitor. This system also makes it easy to run reports to show when someone gains entry. For communities that have unmanned gates, an LPR (license plate reading) camera and an overview camera can be installed at the entrance to capture and record who is coming in. For more information on these systems, you may call Jason at 305-815-2789 or email him at . You can also visit kenttechnologies.net. As always Allied Property Group is here for your management needs. Please call us today at 305-232-1579 and find out how we can help your community. /episode/index/show/communityassociationmatters/id/5308696

How should you respond in case a pipe bursts in your community? 04/24/2017

How should you respond in case a pipe bursts in your community? It’s the middle of the night. Everyone is fast asleep and all of sudden you hear the water trickling down. You wake up thinking that you left the kitchen faucet on but you wake up to find that your entire apartment is flooded! You immediately get out of your sleepy haze and wake up to the sobering reality that a common area pipe has just burst. Do you know what to do? More importantly, does your property manager and maintenance staff know what to do? More often than not, this situation is overwhelming. However, it doesn’t have to be. According to JP from , having a plan of action and preparing for these scenarios can make an unbearable situation a little easier to deal with. In addition to ensuring that your association has an Emergency Plan of Action and a Maintenance or Preparedness Manual, it is equally important to train your staff and run thru a drill on a quarterly or semi-annually basis. Front desk personnel, the concierge, maintenance staff, the manager, security personnel, as well as several Board members should be acquainted with the location of the buildings’ shut off valves. In case of a pipe burst, those individuals should know where to turn off the water to prevent additional damage. Next, they should identify of the source of the leak. Whether it is a fire sprinkler head that needs to be replaced or a common area pipe that needs to be repaired; it is important to identify the source so that you can make the necessary repairs and get the water turned back on. Once the water has stopped and other mitigating measures have been taken, you should notify the insurance agent and begin getting insurance involved. Identifying the responsible party is part of their job. Most likely insurance will name their own private adjuster to investigate the cause of the loss. Most of the time these acts are normally covered by insurance. It is important to ensure that as a Board member you are familiar with what is and is not covered by your insurance policy. Ask the agent for a meeting and ensure that you understand your insurance policy. Ask your agent what are the exclusions in the policy? Mold is more often than not an exclusion to most policies. Your next step should be to get a restoration company out to the property. assigns a crew to each floor. They begin by extracting the water to prevent it from moving further and causing more damage. They then install blowers to begin drying the affected areas. Dehumidifiers are then brought in to evaporate the water that made contact with any surfaces, i.e. walls, carpets, etc. The dehumidifiers will remove any humidity and will dry the surfaces to prevent mold. JP adds that mold can start growing within 24 hours or 2-3 weeks depending on the temperature in the room. It is important that the temperature in the walls and floors be taken to identify secondary damage. This is the water damage that you cannot see; a common example of this is water that gets into drywall, the wall absorbs it like a sponge and those walls remain wet. We cannot see or even touch this type of water damage; you need specialized equipment that helps identify those locations. It is important that these areas be identified so that the appropriate measures can be taken to immediately dry those areas and prevent a more costly loss, such as replacement of the affected areas. This step alone can save associations and property owners thousands of dollars. According to JP, the drying process takes three (3) to five (5) days. Super Restoration returns every day to measure and re-evaluate what the moisture content is and ensure that it is going down. If the moisture content is not decreasing and it is not at the industry standard for mold content by the fifth day, you must replace the affected areas. JP recommends that the every Association invest in a high capacity water extraction machine. These machines cost anywhere from $700 to $1,000 and can extract 100-150 gallons of water at a time. He also recommends that associations purchase a moisture detection device. These typically cost anywhere from $300 to $500. They help to identify water damage inside the drywall or carpeting. This will allow maintenance personnel to immediately react and begin mitigating damage. Now to prevent this from happening in your community, associations should have their maintenance staff be pro-active and reach out to the air conditioning tech, mechanical engineer, and plumbers to perform a preventative inspection to make sure the building is running as it should. These inspections can help identify possible areas of concern and allow you to address the issue before it becomes a problem. Be proactive! JP recommends that when you have a large loss a third party environmental company be contracted to ensure that the mold remediation company is doing their job and meeting industry standards. Remember, mold is a licensed industry and mold extraction can only be done by licensed personnel. Having the maintenance man remove mold on their own can expose the association to major liability. Hire a licensed mold remediation company - period. The safety and health of the residents is what is important here. For more information on how your association can formulate an Emergency Preparedness Plan you can contact JP from Super Restoration at 800-516-8059 or visit their website at . Please visit our website at for more information. /episode/index/show/communityassociationmatters/id/5295264

How to Recognize and Prevent a Terrorist Attack in Your Community 04/14/2017

Episode 1: Why Associations Should Not Hire Unlicensed Contractors 04/07/2017

Episode 1: Why Associations Should Not Hire Unlicensed Contractors You would think that association board members know better than to hire a contractor that is unlicensed. But sometimes in an attempt to save money, associations hire unlicensed contractors. In the long run, however, this practice can be more costly than hiring a licensed contractor. Here is an example: An association in Miami Beach contracted a construction company recommended by a homeowner to remodel the association’s lobby. The homeowner swore up and down that this contractor had done a great job remodeling their unit and by far was the least expensive. Because the contractor was recommended by a homeowner, the board did not vet the contractor and did not have their attorney review the contract. After all, the contractor was highly recommended by this very active homeowner and the contractor’s price was well beneath all other proposals. This was too appealing to pass up. The project was a disaster! The contractor was over budget and took three times as long to complete the job. In the end, the contractor abandoned the job and disappeared with the association’s money. The homeowner, who highly recommended this contractor, sold his unit and was never heard from again. Fortunately, this example is fictional, but situations like this occur more commonly than we think. To help in avoiding these horrible situations, associations should always hire a licensed contractor where the work being performed requires a license. Vetting a vendor is actually easier than one thinks, and with a few key strokes, association boards have a tremendous amount of information at their fingertips. Some of these issues, and other things an association may want to think about prior to choosing a contractor were discussed during a recent interview in Allied Property Group’s podcast, Community Association Matters. In the State of Florida, an association can visit myfloridalicense.com to verify that a Contractor is licensed with the state; and sunbiz.org to confirm that a corporation is active. They can also visit their county clerk of court websites and / or conduct a records search to find out if there are any pending or past law suits against the contractor and / or the qualifier or any unsatisfied judgments. It is a good idea to also ask for a Certificate of Insurance and request that the Association be added as an Additional Insured where legally permitted, and review the coverage to make sure it is adequate. All of these, and many other factors should ultimately be discussed with the Association’s attorney prior to entering into a contract. Lastly, the association should ask the contractor to provide references. Although this may seem trivial, think of it this way: isn’t it a potential red flag if the contractor will not provide references? Isn’t it a potential red flag if the references provided were for jobs very different in scope than the job being considered? You should accordingly contact the references and ask a series of questions, such as: Whether the project was completed on time and in budget; Were there any issues with the city or county inspectors; How communicative was the contractor during the process. Now what happens if things go wrong? Hopefully you have consulted with an attorney prior to signing a contract, and they have worked with you throughout the process to help add layers of contractual protection. These are basic suggestions for associations to consider when hiring a contractor. Every association is different, and every situation is unique. Get management assistance from Allied, and get legal assistance from your lawyer. For more information and in depth thoughts, you can also listen to our podcast, Community Association Matters. /episode/index/show/communityassociationmatters/id/5246783

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