LIVING Community
TOPIC
CHAPTER EXECUTIVE DIRECTOR
Joe Napoli
CAI SOUTHEAST FLORIDA BOARD OF DIRECTORS
Michael Poorman, MBA, PCAM (President)
Jason Schoenholtz, CAM, CMCA, AMS, PCAM (President-Elect)
Diana Zayas-Bazan, CAM, CMCA (Vice President)
Sebastian Martinez, CAM, CMCA (Treasurer)
Diana Kuka (Secretary)
David Bermudez (Director)
Roberto Blanch, Esq. (Director)
Jane Bolin, Esq. (Director)
Debbie Ellison (Director)
Dr. Marcelo Martinez, CAM, CMCA (Director)
CHAPTER COMMITTEES
Membership Committee
Homeowner Leader Committee
Community Manager Committee
Business Partner Committee
Events Committee
Young Professionals Committee
CORRESPONDENCE (CHAPTER & MAGAZINE) (Sales, Marketing, Advertising, Creative, Subscriptions)
Joe Napoli
CAI-SE Florida Chapter
304 Indian Trace, Suite 538 Weston, Florida 33326 954-816-0661 | ced@cai-seflorida.org
CAI-SEFL Chapter Website: www.cai-seflorida.org
National Website: www.caionline.org
READER COMMENTS & ARTICLES WELCOME
Columns and ideas from all of our Chapter members are always welcome. Send submissions in Microsoft Word format to: ced@cai-seflorida.org. Articles appearing in Community Living reflect the author’s opinion and not necessarily that of CAI. Acceptance of advertising does not constitute an endorsement of the product or service.
Community Living is published quarterly by the Southeast Florida Chapter of the Community Associations Institute
This publication attempts to provide CAI’s membership with information on community association issues. Authors are responsible for developing the logic of their expressed opinions and for the authenticity of all presented facts in articles. CAI does not endorse or approve statements of fact or opinion made in these pages and assumes no responsibility for those statements. This publication is issued with the understanding that the publisher is not engaged in
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Q4 | 2024 Contents
Chapter Events
CAI Education Opportunities
Invest in Your Chapter: Sponsorship Opportunities
Growing Together: The Journey of Membership Expansion
3 Cost Containment Strategies to Minimize Assessment Hikes
Risk Mitigation for Avoiding Condo Crisis
The Seven Habits of Highly Effective Association Leaders
Insurance for Your Roofing Project
Florida Reserve Funding Methods
Navigating the Florida Insurance Claim Lifecycle
A Differing Tale of Two Terminating Condominiums
Ensuring Fairness in Construction: The Role of Engineering
What is CAI?
OVER 47,000 MEMBERS AND GROWING!
Community Associations Institute (CAI) is a national organization dedicated to fostering vibrant, competent, harmonious community associations. For more than 40 years, CAI has been the leader in providing education and resources to the volunteer homeowners who govern community associations and the professionals who support them. Our members include community association volunteer leaders, professional managers, community management firms, and other professionals and companies that provide products and services to associations. Our local chapter serves over 600 members with annual events including Trade Show & Expo, Golf Tournament, CAM & Board Member Education events and so much more.
Become a Member!
Community Associations Institute is committed to making diversity, equity, and inclusion a core aspect in our membership, on our staffs, and within the community association housing model at large. We firmly believe in the unique strengths of every individual and that diversity makes organizations more successful and communities more fulfilling. By actively cultivating diversity, we benefit from a vastly richer mix of ideas, perspectives, and life experiences that expand our thinking and our possibilities. We strive to foster a culture of discovery, innovation, and service as we continue to focus on our mission to build better communities.
At the Community Associations Institute Southeast Florida Chapter, diversity, equity, and inclusion stands for more than just a goal or quota. We strive to create an environment that reflects the various members we serve and where everyone feels empowered to bring their full, authentic selves. Together, we continue to build an inclusive culture that encourages, supports, and celebrates the diverse voices of our community.
Diamond Sponsors
Platinum Sponsors
Gold Sponsors
Management Company Sponsors
Become a Chapter Sponsor!
It’s the fast track to community association decision-makers! Every member of CAI Southeast Florida enjoys the opportunity of networking with community association decision makers. Becoming a Chapter Sponsor invests in your local Chapter and elevates your brand even more by being continuously recognized at Chapter events and through Chapter communications. Every sponsor receives a nice discount when they reserve for events, including expo booths and golf tournament entries. Learn which sponsorship works best for you. Scan the QR code or visit cai-seflorida.org/event/chapter-sponsors-2025.
Chapter News
BY JOE NAPOLI, CHAPTER EXECUTIVE DIRECTOR
Aswe close out another remarkable year, I want to extend my heartfelt thanks to all of you for your unwavering support, enthusiasm, and dedication to growing our Chapter. Your efforts have truly made it better, stronger, and more responsive to your needs.
We are ending the year on an incredible high note! For the first time ever, our Chapter membership has exceeded 600 members, growing from 528 to an impressive 615. This milestone reflects our shared commitment and passion for advancing our mission. Notably, our Board’s focus on increasing Homeowner Leader (HOL) membership has been a resounding success—rising from 64 to 176 members! This incredible achievement would not have been possible without you spreading the word and encouraging colleagues to join. Thank you for being such enthusiastic advocates for our Chapter!
Looking ahead, our Board recently convened for our Strategic Planning meeting to chart the course for 2025. Once again, our top priority will be expanding and diversifying membership while remaining steadfast in our mission to provide outstanding education and resources.
In addition to our numerous traditional activities and events, here’s a sneak peek below at what’s in store for 2025:
» Enhanced Education Initiatives: In addition to our regularly scheduled courses, we will address the recent legislative mandate by offering educational programs specifically tailored for Board members.
» Quarterly In-Person Events: These will include hot topics and educational sessions in both Miami-Dade and Broward counties, complementing our monthly webinars.
» Exciting Combined Workshops and Expo: We’ll host a combined event that will include Homeowner Leader and CAM workshops alongside an expo, offering unique opportunities to connect, learn and network.
» A New Workshop in the Keys: Coupled with a Fishing Tournament, this event promises to be both educational and fun.
You can check out our website for the complete calendar and list of 2025 events.
With such an exciting year ahead and our Chapter’s momentum reaching new heights, now is the perfect time to consider becoming a Chapter sponsor for 2025. As a member of CAI Southeast Florida, you’re already part of a powerful network of community association leaders and decision-makers. Becoming a sponsor elevates your involvement and ensures your brand stands out at every Chapter event and communication.
Position your brand for success! Explore our sponsorship opportunities by clicking here: 2025 Sponsorship Presentation.
In closing, I want to express our deepest gratitude to our outgoing Board President, Michael Poorman. Michael’s exceptional leadership has been a cornerstone of our Chapter’s success. His steady guidance has kept us keenly focused on our priorities and delivering value to our members while strengthening and stabilizing our governance, processes, and procedures.
As we bid Michael a fond farewell, we are thrilled to welcome Jason Schoenholtz as our incoming Board President. With Jason’s leadership, we look forward to building an even stronger Chapter in 2025 and beyond. Thank you once again for making 2024 a banner year. We wish you and your loved ones a joyful holiday season and hope you find time to relax and celebrate. Here’s to continued growth and an extraordinary 2025!
CHAPTER EVENTS & EDUCATION
Calendar of Events
More details regarding upcoming events will be posted to cai-seflorida.org under the “Events” tab. Check back regularly for the most up-to-date information. Please be sure to register for all events in advance, as we need an accurate head count for space and food purposes prior to the event. All event details are subject to change.
JANUARY 2025
• Tuesday, January 14: Educational Webinar
• Tuesday, January 21: Board of Directors Meeting from 8:3010:00 am via Zoom
• Wednesday, January 22: Homeowner Leader Legislative Strategy Roundtable
• Monday, January 27: Golf Tournament at Trump National Golf Club in Miami from 7:00 a.m. to 4:00 p.m. Sponsorships available! Golfers can register as a foursome for $1,700. Those who would like to attend the event, but are not sponsoring may register for lunch only tickets. Business Partners (Chapter Members only) are $350. Community Association Managers (do not need to be Chapter Member, but must be an active CAM working in a building or management firm) and Homeowner Leaders (do not need to be a Chapter Member, but must be listed with Association on Sunbiz) are complimentary, but registration is required. There will be a Silent Auction at the Golf Tournament. Please click here to take a look at the items that will be available to bid on! Click here for more information on sponsorships and registering for a Golf Foursome!
FEBRUARY 2025
• Tuesday, February 11: Educational Webinar
• Tuesday, February 18: Board of Directors Meeting from 8:3010:00 am via Zoom
• Thursday, February 20: Awards Dinner
• Tuesday, February 25: Hot Topics Education Breakfast in Miami Dade
MARCH 2025
• Tuesday, March 11: Educational Webinar
• Tuesday, March 18: Board of Directors Meeting from 8:3010:00 am via Zoom
• Tuesday, March 18: Hot Topics Education Breakfast in Broward
APRIL 2025
• Tuesday, April 15: Board of Directors Meeting from 8:3010:00 am via Zoom
• Tuesday, April 15: Educational Webinar
• Tuesday, April 22: Hot Topics Education Event in Miami Dade
MAY 2025
• Wednesday-Saturday, May 7-10: CAI Annual Conference in Orlando
• Tuesday, May 13: Florida Legislative Update Webinar
• Tuesday, May 20: Board of Directors Meeting from 8:30 - 10:00 am via Zoom
• Thursday-Friday, May 29-30: PMDP Class M-204
• Saturday, May 31: Young Professionals Summer Picnic
JUNE
2025
• Tuesday, June 10: Educational Webinar
• Friday, June 13: Membership Gathering, International CAM Day Appreciation & Legislative Update
• Tuesday, June 17: Board of Directors Meeting from 8:30 - 10:00 am via Zoom
• Tuesday, June 24: Hot Topics Education Event in Broward
• Thursday-Friday, June 26-27: Florida Keys Workshop, Mini Expo & Fishing Tournament
JULY 2025
• Tuesday, July 8: Educational Webinar
• Tuesday, July 15: Board of Directors Meeting from 8:30 - 10:00 am via Zoom
• Tuesday, July 22: Hot Topics Education Event in Miami Dade
AUGUST 2025
• Tuesday, August 12: Educational Webinar
• Tuesday, August 19: Board of Directors Meeting from 8:3010:00 am via Zoom
• Tuesday, August 26: Hot Topics Education Event in Broward
SEPTEMBER 2025
• Tuesday, September 9: Educational Webinar
• Tuesday, September 16: Board of Directors Annual General Meeting
• Thursday, September 25: HOL/CAM Workshop & Expo
OCTOBER 2025
• Tuesday, October 14: Educational Webinar
• Thursday, October 16: Board of Directors Strategic Planning
• Thursday, October 23: Young Professionals Halloween Party
• Tuesday, October 28: Hot Topics Education Event in Miami Dade
NOVEMBER 2025
• Wednesday, November 5: Annual Election of Directors
• Thursday, November 6: Homeowner Leader Roundtable Event
CAI NATIONAL Education Opportunities
CAI offers many online learning opportunities (click on the dates below to register or obtain more information) that lead to professional credentials. View the 2024 Education Catalog for additional resources.
» December 12-13: M-100 - The Essentials of Community Association Management
» January 16-17: M-100 - The Essentials of Community Association Management
» January 23-24: M-201 - Facilities Management
» February 6-7: M-360 - Leadership Practices in Building Community
» February 13-14: M-202 - Association Communications
» March 6-7: M-100 - The Essentials of Community Association Management
» March 13-14: M-204 - Community Governance
» March 20-21: M-205 - Risk Management
» April 3-4: M-320: High-Rise Maintenance and Management
» April 24-25: M-100: The Essentials of Community Association Management
» May 5-7: M-100: The Essentials of Community Association Management (Orlando; Live Onsite Class before Annual Conference)
COMMUNITY CONVERSATION
Season’s Greetings: Crafting & Communicating Respectful Rules $29 for CAI Members & $49 for Non-Members
As we prepare for the busy holiday season, community managers and board members are receiving increasing requests for information regarding holiday décor. How can your community appreciate and respect the varied choices and perspectives of its residents? Before diving into the festivities, it’s important to establish and communicate with residents about holiday guidelines; including those that honor diverse traditions, beliefs, and practices. Join us for an informative discussion on the benefits of clear guidelines to ensure that every resident can prepare for a holiday season that is visually captivating, meaningful, and enjoyable for all. Presenters will discuss how to: Engage residents; Communicate guidelines and expectations; Create an environment of community harmony. This program is for informational purposes only and does not provide continuing education credit. Click here to purchase this webinar on demand.
27 JANUARY TRUMP NATIONAL GOLF CLUB 9 Red Tiger Course 7:00 am Check-In
NEW CHAPTER MEMBERS
BUSINESS PARTNERS
Clarity Roofing
Leeyen Sieza
Conde Landscaping
Lucas Luis Perez
Crest Roofing LLC.
Leigh Graham
Daisy
Suzanne Keoghan
GardaWorld Security
Roxana Diaz
HH Staffing
Isaiah R Joseph
Mitchell Pest Services
Michael Brown
Painter Bros. of Miami
Gina Carlson
Polo International, Inc
Robert Kaplan
Reliant Condo Approvals
Bradford Lare
Select Staffing Service, Inc.
Jordan Skalet
Superior Fence and Rail of Broward County
Raul Trestini
United Community Bank
Howard Henry
NATIONAL BUSINESS PARTNER
Wallrug dba hoacta.app
Isaac Camacho
MANAGER MEMBERS
Royale Management Services
Radiel Dominguez
Lorri Hill
Cristina Alexandra Leon
Enrique Patino New and Returning CAI-SEFL Chapter Members from September 21, 2024 to December 3, 2024
MANAGER MEMBERS CONT.
Grant Manuel
Ligia Pineda
Alexander Ragozin
MANAGEMENT COMPANY
Royale Management Services
Lorri M Hill
VOLUNTEER LEADERS
Boundbrook Condominium Association, Inc.
James Benson
Patrick Borden
Zoila Delgado
Carolyn Dukes
Eva Dunberg-Tarrant
Giacomo Graziose
Morgan Kelner
Patricia Kerce
Ann Kirner
Tony Quist
Anne P Ryan
Maureen Shannon
Stephanie Trudeau
Cypress Chase Condominium Association B
Claire Harris
East Atlantic Gardens Condominium, Inc.
Theodoros Dritsas
Phillip Kelleher
Gaurav Malik
Kate Maughan
Felix Vazquez
El Mar Condominium
Rodney Fielder
Penny Hebert
Terri Henderson
Barbara Traub
Flamingo Villas Association, Inc.
Deborah Alley
Janet Haley
Patricia Metcalf
Grand Palms Community Association, Inc.
David Barry
Bill Fleming
Maria Quintana
VOLUNTEER LEADERS CONT.
Doral Colony Homeowners Association
Bruno Mauzo
Matiou Sandoval
Environ Towers 1 Condominium Association
Viviane Schofield
Gallery Art Condominium Owners Association
Vanessa Conde
Plantation Terrace Condominium Association
Linda Brown
Larry Cassel
Ramdon Garcia
Dan Marino
Vivian Nasser
Keith Schekelhoff
Stuart Shull
Quadomain Condominium III Association
Joyce Becker Seddio
Raul Diaz
Marina Garmash
Luis Malave
Irina Tabach
Shore Drive Apartments
Noemi Byrnes
Kurt Dahl
Adele Motolla
The Enclave at Grand Palms
David Barry
Roy Casiano
Grettel Coto
Maria Quintana
Ronald Schroeder
The Quadomain Condominium Association III
Damaris Torres
Towers of Quayside No. 1 Condominium Association, Inc.
Karen Elder
Linda Johnston
James Lindgren
Roxy Mize
Building Better Communities TOGETHER
Invest in Your Chapter
The Southeast Florida Chapter of CAI serves Broward, Dade, and Monroe Counties. Our mission is to provide education and networking opportunities to Board Members, Community Association Managers and Business Partners to enable the successful operation of community associations.
2024 has been a banner year for our Chapter. For the first time ever, our membership has grown to exceed 600 members! We look forward to continued growth next year and an amazing 2025.
As a CAI Southeast Florida member, you’re already part of a powerful network of community association leaders and decision-makers. Becoming a Chapter sponsor takes your involvement to the next level, ensuring your brand stands out and is continually recognized across all Chapter events and communications.
Sponsorship not only supports your local Chapter but also amplifies your visibility and influence within this thriving community. Plus, every sponsor enjoys exclusive discounts on event reservations, including prime opportunities like expo booths and golf tournament entries, and much more. Position your brand for success - invest in a
CAI Southeast Florida sponsorship and unlock unparalleled access to a growing network of community association leaders!
As a valued Chapter Sponsor, your company will enjoy exposure at prominent Chapter events as well as digital exposure, including:
» A strong presence on CAI-SEFL website: cai-seflorida.org
» Dedicated Sponsor webpage with company logo and link to directory profile page
» Highlighted in Business Directory as a Sponsor with logo
» Highlighted on page 3 as a valued Sponsor in each edition of the Community Living Quarterly Magazine emailed to entire contact list, posted to website and shared on Social Media
» Advertisements in 1/2 or full page sizes in the publication
» Shoutout posts on all Chapter Social Media accounts acknowledging Chapter Sponsorship
Position your brand for success! Take a detailed look at the sponsorship packages available on the following page or scan the QR code to view the entire presentation. Secure your sponsorship by January 31, 2025 on cai-seflorida.org
Diamond SPONSOR
» One (1) Foursome at the 2026 Golf Tournament at Trump Doral ($1,700 value)
$5,500
Value of $14,400
Maximum of 10 Sponsors
» Recognized in Quarterly Magazine as a Chapter Sponsor and may submit article. The digital copy will be shared on the website, social media, and email blast to the membership and prospect list. ($4,000 value)
» Full Page Ad in Quarterly Magazine ($4,000 value)
» Table at the Workshop/Mini Expo or Key Event with two company representatives. Opportunity to sponsor/ have a booth at others. ($1,000 value)
» DBPR Approved CEU Education Opportunity at an Online Webinar. Obtain the registration list as the instructor. ($1,000 value)
» Two (2) Tickets to End of the Year Gala ($300 value)
» Company logo linked on website and Chapter email blasts ($900 value)
» Listing on CAI website as a Diamond Sponsor with link to company’s website ($500 value)
» Four (4) Social Media Shoutouts per year ($1,000 value)
Platinum SPONSOR
» 50% off one (1) Foursome at the 2026 Golf Tournament ($850 value)
$3,500
Value of $10,000
Maximum of 20 Sponsors
» Recognized in Quarterly Magazine as a Chapter Sponsor and may submit article. The digital copy will be shared on the website, social media, and email blast to the membership and prospect list. ($4,000 value)
» Half Page Ad in Quarterly Magazine ($2,000 value)
» Table at Workshop/Mini Expo or Key Event with two company representatives. Opportunity to sponsor/have a booth at others. ($1,000 value)
» DBPR Approved Education Opportunity at Webinar. Obtain the registration list as the instructor. ($1000 value)
» One (1) Ticket to End of the Year Gala ($150 value)
» Listing on CAI website as a Platinum Sponsor with link to company’s website ($500 value)
» Two (2) Social Media Shoutouts per year ($500 value)
Gold SPONSOR
$2,500
Value of $6,900
Maximum of 25 Sponsors
» Table at the Workshop/Mini Expo or Keys Event with two company representatives. Opportunity to sponsor/ have a booth at others. ($1,000 value)
» Recognized in Quarterly Magazine as a Chapter Sponsor and may submit an article. The digital copy will be shared on the website, social media, and email blasted to the membership and prospect list. ($4,000 value)
» Quarter Page Ad in Quarterly Magazine. ($1,000 value)
» One (1) Ticket to End of the Year Gala ($150 value)
» Listing on CAI website as a Gold Sponsor with link to company’s website ($500 value)
» One (1) Social Media Shoutout per year ($250 value)
Management SPONSOR
$1,000
Value of $7,600
No Limit to Number of Sponsors
» Table at the Workshop/Mini Expo or Keys Event with two company representatives. Opportunity to sponsor/ have a booth at others. ($1,000 value)
» Full Page Ad in Quarterly Magazine ($4,000 value)
» 50% off one (1) Foursome at the 2026 Golf Tournament ($850 value)
» DBPR Approved CEU Education Opportunity at Online Webinar. Obtain the registration list as the instructor. ($1,000 value)
» Listing on CAI website as a Management Firm Sponsor with link to company’s website ($500 value)
» One (1) Social Media Shoutout per year ($250 value)
Growing Together: The Journey of Membership Expansion
BY DIANA ZAYAS-BAZAN, MEMBERSHIP LIAISON & 2024 VICE PRESIDENT OF CAI-SEFL
Over the past several years, the Community Associations Institute Southeast Florida (CAI-SE Florida) Chapter has experienced incredible growth, a testament to the dedication and hard work of a passionate team. Since 2018, our Chapter has expanded from 429 members to 615 in 2024, and I’m honored to have played a role in this remarkable achievement along with the Membership Committee.
Building our membership has been far from a solo effort. It has taken the collective energy and collaboration of many dedicated Members who share the vision of making our Chapter an available resource for community association managers, board members, and business partners. Working together, the Committee has made significant strides, not only in growing Membership but also in fostering a strong and engaged community.
Success did not happen overnight, we have consistently undertaken membership drives, reaching out to prospective members to showcase
the benefits and resources CAI-SE Florida Chapter offers. One of our key strategies has been reconnecting with expired members, understanding their reasons for leaving, and showing them why coming back to CAISE Florida can make a difference for their careers and communities. We listened, we adapted, and we invited them back into the fold.
Throughout the years, our efforts have focused on building relationships—both with new and returning members. We’ve hosted events that highlight the importance of being part of a robust network and provided education that helps them succeed in their roles. Collaborating with community managers and association boards, we ensured that each interaction was meaningful, showing how much they gain from being part of our CAI-SE Florida Chapter community.
We have done this one voice, one member at a time. Every individual connection we’ve made, every conversation we’ve had, has brought
Continued on page 15
us closer to our goal. Whether it was through face-to-face meetings, phone calls, or emails, every effort to reach out to someone in our community has had a cumulative impact on the success of the Chapter. This personal approach to membership growth is what sets our Chapter apart treating each member as a valued part of the CAI-SE Florida Chapter community.
While I’m proud of what I’ve contributed, I want to emphasize that this growth is the result of a team effort. The work of the CAI-SE Florida Chapter Membership Committee and Board has been essential in keeping our initiatives moving forward, and none of this would be possible without the commitment of every person involved. Together, we’ve built a culture of inclusivity, knowledge-sharing, and support, and that’s what keeps our membership thriving.
As we look ahead to the year 2025, I am excited about the opportunities and challenges that lie before us. With a renewed focus on onboarding community associations and navigating new legislation, I am confident that we will rise to the occasion and emerge stronger and more resilient than ever before! Going a step further, in May of 2026, our CAI-SE Florida Chapter will host the CAI National Conference, at the Diplomat Hotel in Hollywood, Florida. We look forward to having a strong membership presence representing the high-density population of Community Associations, Board Member Leaders, Community Association Manager Professionals, and our Educated Business Partners in Monroe, Miami-Dade, and Broward Counties.
As we close 2024, I want to take this opportunity to express my sincere gratitude to each of you for your unwavering support and dedication to our CAI-SE Florida Chapter. Whether you have been with us since the beginning (1988) or are just joining our Chapter, know that your presence and contributions are deeply valued and appreciated.
I encourage each of you to continue to engage with our CAI-SE Florida Chapter community, to lean on one another for support and guidance, and to seize every opportunity for growth and learning. Together, we have the power to shape the future of our industry and create lasting positive change in our communities as we remain committed to Education, Advocacy and empowering every member to succeed—one voice, one member at a time.
If you have any questions or would like to learn more about how our Chapter can support you in your professional journey, please do not hesitate to reach out to me directly or to our Chapter’s Executive Director. We are here to serve you and to ensure that you have the resources and support you need for continued success.
Diana Zayas-Bazan, CAM, CMCA, EBP is the 2024 CAI-SEFL Chapter Membership Liaison and Vice President, as well as the 2025 President-Elect. For more information on Membership, please contact Diana at dianazayas.emadirector@gmail.com.
3 Cost Containment Strategies to Minimize Assessment Hikes
BY ROB HUGUET, CPA, CGMA, SENIOR VICE PRESIDENT OF FINANCE, FIRSTSERVICE RESIDENTIAL
Asa board member of a condominium or homeowners association, your fiduciary responsibility is to ensure the association’s financial stability. Even if you’ve carefully planned your budget and reviewed your reserve study with an expert, unexpected emergencies and rising costs—such as increasing insurance premiums and inflation—can still throw off your financial plans. If you’re facing the possibility of a significant increase in assessment fees, consider implementing cost-containment strategies that can save money and help optimize your operating budget.
ENERGY SAVINGS
Energy usage in common areas is a major line item in your budget. Are your lights energy-efficient? Do you leave lights on when no one is using a space? Is your pool or hot tub set to an unnecessarily high temperature? Addressing these questions can lead to substantial savings.
For example, upgrading traditional light bulbs to LED lighting requires an up front investment but quickly pays for itself in energy savings. Additionally, installing motion sensor switches to turn lights off when rooms are empty, or adjusting pool temperatures to optimal levels, can save money without significant investment.
Take Skypoint, a high-rise in Tampa, which began replacing its lighting with LED in 2016. In just six months, they saved $12,000 in electrical costs by upgrading lighting in common areas like the garage and valet area. By the end of the project, they had recouped the cost of installation in just 13 months, saving approximately $48,600 annually. These improvements earned them the Florida Public Service Commission’s Triple E Award for energy efficiency.
Continued on page 18
ASSESSMENTS
POOL HEATING SYSTEMS
Another area where savings can be significant is in the heating of community pools. Let’s compare the costs of operating three common types of pool heaters for a 3,000-square-foot pool. While the most efficient systems have higher up front costs, they often deliver significant savings in the long run.
» Gas Boiler: $24,000 in fuel annually, plus maintenance
» Air Source Heat Pump: $7,000 in electricity, plus maintenance
» Solar Thermal: $1,000 for pump operation, plus maintenance
The gas boiler, while cheaper to install, has the highest operating cost. The solar thermal system, though expensive to install, offers the lowest operating cost, which can be recouped quickly through energy savings.
INSURANCE AND INVESTMENT STRATEGY
How is your reserve fund invested? Are you getting the best returns? Approximately 35% of board members are uncertain about whether their reserve funds are earning optimal returns. Ensuring your reserves are properly invested is crucial. Reallocating funds can significantly boost your returns and help your association’s financial health.
Additionally, it’s important to regularly audit your insurance coverage. Are your policies adequately protecting the community, or are you simply choosing the lowest premium? While it may seem costeffective to opt for a low premium, it could lead to high deductibles or insufficient coverage in the event of a disaster. Premium rates have been increasing due to factors like natural disasters and rising litigation costs, so it’s critical to work with your insurance agent to ensure your coverage is up to date.
One strategy to reduce insurance premiums is to bring forward planned capital improvement projects, such as replacing a roof, which can improve safety and reduce premiums by mitigating risk. Your management company can help evaluate the best course of action.
BUDGET ANALYSIS AND BENCHMARKING
Do you regularly review your vendor contracts, or do they just renew automatically? Many associations overlook the potential for savings in vendor contracts. Your management company should be conducting a detailed review of financials, vendor contracts, and utilities to identify opportunities for better pricing or service. Simple conversations with vendors or other communities can sometimes result in better deals or more efficient solutions that could help your budget.
Benchmarking—comparing your community’s spending on various services with similar communities—can also reveal areas where you may be overpaying. For example, your landscaping contract may be 15% more expensive than those of similar properties. By reviewing the contract line-by-line, your board may find opportunities to negotiate lower pricing or switch to a more cost-effective vendor.
THE IMPORTANCE OF REGULAR REVIEWS
Regularly auditing energy use, insurance policies, vendor contracts, and investments, and adopting best practices for reserve funding can significantly improve your association’s financial health.
By working closely with your management company and taking a strategic approach to budgeting and cost management, you can help ensure your community’s long-term financial success and prevent the need for major increases in assessments.
Rob Huguet serves as Senior Vice President of Finance for FirstService Residential, where he is responsible for the company’s internal corporate reporting and cash management functions for the South Region. Rob’s responsibilities include delivering and supporting capabilities that improve business processes, internal reporting, and controls, integrating acquisitions and enhancing performance across the region. Rob joined FirstService Residential as Controller in 2015. Prior to that, Rob held senior corporate level positions within the transportation and consumer product industries, including Spectrum Brands as Vice President of Global Finance, where he led the financial reporting team throughout Europe, Latin America, North America, and China. For more information about FirstService Residential, visit www.fsresidential. com/florida or call 954-925-8200.
Risk Mitigation for Avoiding Condo Crisis
BY SACHIN MEHROTRA, ASSOCIATION LENDING SERVICES
Condo associations face both structural and financial risks, particularly when funding large capital projects. These risks, if unmanaged, can lead to financial instability, diminished property values, and even forceful unit sales. However, adopting proactive strategies can help mitigate these risks, ensuring long-term stability, building safety and avoiding crisis scenarios.
1. LEVERAGE ASSOCIATION LOANS FOR CAPITAL PROJECTS
Instead of relying on large special assessments, which can overwhelm owners financially and lead to defaults or forced sales of units, condo associations can use association loans. Loans allow associations to finance large projects upfront and spread the cost over manageable monthly payments. This reduces immediate financial pressure on homeowners and prevents the risk of unit owners being forced to sell due to unaffordable assessments.
2. MAINTAIN FINANCIAL FLEXIBILITY
Special assessments can trigger financial hardship for some homeowners, increasing the likelihood of defaults, foreclosure, or forced sales. Association loans offer a more flexible repayment structure, enabling homeowners to make smaller, more manageable payments. This flexibility reduces the financial strain on owners,
minimizes the risk of defaults, and helps ensure that the association can fund necessary repairs without risking the stability of the community.
3. COLLABORATE WITH FINANCIAL EXPERTS FOR FAVORABLE LOAN TERMS
Securing favorable loan terms is critical to maintaining financial stability. Working with experienced lending professionals ensures that the association locks in competitive interest rates and understands all loan conditions. Proactive financing strategies help avoid unfavorable terms, reduce borrowing costs, and prevent delays in funding essential projects, thereby safeguarding against financial stress that could trigger forceful unit sales.
4. LOCK IN CONTRACTOR RATES TO PREVENT COST OVERRUNS
Construction costs can rise rapidly, especially if projects are delayed. By securing financing early, an association can lock in contractor rates and avoid cost increases. Timely project execution not only prevents budget overruns but also ensures that essential repairs and upgrades are completed on schedule, preserving the property’s value and reducing the risk of deferred maintenance that could lead to financial instability.
RISK MITIGATION
5. PRESERVE PROPERTY VALUES
Neglecting necessary repairs or deferring maintenance due to lack of funding can lead to a decline in property values. By using loans to finance repairs and improvements, associations can keep properties in good condition, preserving their value and marketability. Wellmaintained properties are less likely to experience financial instability, reducing the likelihood of forced unit sales due to owners’ inability to cover assessments or falling property values.
6. PREPARE FOR FUTURE EMERGENCIES WITH FINANCIAL PLANNING
Unexpected events, such as natural disasters or urgent structural repairs, can strain an association’s finances. Proactively using loans alongside reserve funds ensures that the association can quickly address emergencies without relying on painful special assessments, which can be unaffordable for some owners. This preparedness reduces the financial strain that could otherwise lead to forced sales of units.
By leveraging association loans and adopting strategic financial planning, condo associations can mitigate both structural and financial risks. These measures help avoid burdensome special assessments, ensure building safety, protect property values, and reduce the risk of defaults or forced sales. Proactive financing and expert collaboration
ensure that associations remain financially stable, allowing them to manage large projects without putting homeowners or the community at risk.
Recognized for his extensive market experience and exceptional execution record, Sachin Mehrotra shines as a highly regarded professional in the Condominium Association and Investment CRE financing worlds. With an unwavering commitment to his clients, Sachin consistently delivers outstanding results, earning him a trusted industry reputation. His area of expertise is, effectively, structuring complex association and investment CRE financing transactions, in such diverse areas as Acquisition and Construction Financing, Capex Management, Ground-Up Development and Strategic Value Enhancement. With an impressive 20-year career in the industry, Sachin brings a wealth of experience to every client engagement, thus ensuring the opportunity to collaborate with a seasoned professional. For more information, contact Sachin at smehra@assoicationfinancing. org or visit associationlendingservices.com.
EXCLUSIVE TITLE Sponsor
$10,000 1 Available
» Exclusive recognition as the title sponsor of the event.
» Logo prominently featured on all event marketing materials.
» Opportunity to provide branded merchandise to all participants.
» Verbal acknowledgment as the primary sponsor throughout the event.
» Includes a golf cart flag with sponsor logo on each player golf cart.
» Exclusive tent setup at a designated hole and coordinate an activity (DJ, hora loca, etc.) that must be approved by committee in advance.
» Includes (1) Foursome.
» Opportunity to visit Management Companies with the Chapter.
» (2) Full page ads.
HOLE Sponsor
$6,000 1 Available
» Logo placement on valet signage and uniforms.
» Recognition in event promotional materials.
» Opportunity to display promotional materials at the valet station.
» Verbal recognition during the event.
» Requirement: Company representative to meet and greet players.
» Special announcement stating “Today’s Valet Service is compliments of SPONSOR NAME.”
» 5-minute Commercial during lunch event.
» (1) Full page ad.
BREAKFAST BOX
Sponsor
$3,000 4 Available
» Ability to have (1) tent with a 6-foot table and (2) chairs the day of event.
» Recognition in event promotional materials.
» Opportunity to display promotional materials at designated hole.
» Verbal recognition during the event.
» Ability to serve drinks at tent with a venue bartender.
» Ability to bring entertainment, DJ, corn hole, etc. (must be approved by committee in advance).
$3,000 1 of 2 Available
» Logo placement on breakfast box packaging (company provides stickers and representative to place on 100 boxes).
» Opportunity to set up a company tent and table with promotional items.
» (2) company representative to distribute breakfast.
» Recognition in event program and signage at the breakfast area.
» Opportunity to include branded items inside each breakfast box.
» Opportunity to bring step and repeat for photos during breakfast.
» Half page ad and verbal recognition during the event.
SPONSORSHIP OPPORTUNITIES
LUNCH FOOD
Sponsor
$4,000 4 Available
» Opportunity to set up a company table with promotional items during lunch (1:30 - 3:00 p.m.) and includes (2) company representatives lunch tickets.
» Logo featured on all event marketing materials.
» Opportunity to include branded items on dining tables.
» Quarter page ad & verbal acknowledgment during lunch.
BAR Sponsor
$4,000 1 of 2 Available
» Logo placement at designated bars inside the lunch area.
» Opportunity to provide branded barware or napkins (approximately 300 guests).
» Verbal acknowledgment during the event.
» Opportunity to provide roll up banner near the bars.
COFFEE Sponsor
» Roll up banner placement at coffee station.
$1,500 1 Available
» Must bring coffee cart & coffee for approx. 300 guests.
» Recognition in the event program.
» Verbal recognition during the event.
HOLE-IN-ONE Sponsor
$3,000 1 Available
» (2) company representatives on hole monitoring players.
» Ability to have (1) tent with a 6-foot table and (2) chairs.
» Recognition in event promotional materials.
» Opportunity to display promotional materials at designated hole.
» Verbal recognition during the event.
GOLF TOWEL Sponsor
$2,000 1 Available
» Provide branded golf towels for all participants during check-in.
» Logo placement on golf towels provided by company.
» (2) company representatives to hand out towels to players (144 players).
REGISTRATION Sponsor
» Meet, Greet & Check In Ambassadors.
$3,000 2 Available
» Roll up banner placement on registration area.
» Recognition in the event program and at the registration area.
» Opportunity to provide branded material during registration.
» (2) company representatives to assist with player check-in, wearing company shirts.
» Verbal recognition during the event.
» Opportunity to provide company branded wristbands to 150 guests.
» Opportunity to re-check in all guests during lunch ensuring all guest have a wristband 1:30 - 3:30 p.m.
ON-COURSE Beverage Sponsor
$2,000 2 Available
» Logo placement at designated beverage cart.
» Provide beverages (water, sports drinks, etc.) at various points on the course.
» Logo placement on beverage stations and cups (sponsor to provide cups with logo).
» Opportunity to provide branded beverage coolers or dispensers.
» Verbal acknowledgment during event.
PHOTO BOOTH Sponsor
» Set up a photo booth at the tournament for participants to take memorable photos.
$3,000 1 Available
» Logo placement on photo booth backdrop and prints.
» Opportunity to provide branded photo booth props or frames.
DRIVING RANGE Sponsor
$1,500 2 Available
» Sponsor the driving range where participants warm up before the tournament.
» Logo placement on driving range signage.
» Opportunity to provide branded golf balls or tees at the driving range.
The Seven Habits of Highly Effective Association Leaders
BY CHRIS VAUGHAN, PH.D., COFOUNDER & CHIEF STRATEGY OFFICER OF SEQUENCE CONSULTING ARTICLE © ASAE - THE CENTER FOR ASSOCIATION LEADERSHIP ON ASAECENTER.ORG
There are some commonalities that distinguish the great leaders from the good ones. These seven approaches can help you lead your association toward growth and sustainability.
Shakespeare said it best regarding association leaders: Some are born great, some achieve greatness, and some have greatness thrust upon them. At my association consulting firm, Sequence Consulting, we have worked with association leaders at all levels for more than twenty-three years—from newbies to veterans, from struggling to stellar.
Truly great leaders are rare. They transform their organizations and drive exponential growth that others only dream of. We’ve worked
with many such leaders, and while their styles are different, they all consistently do these seven things other leaders do not:
1. TURN OUTWARD
It is easy to get bogged down in your organization’s demands and forget to look up. The best leaders make a point of seeking out new ideas and information from outside their own association. They look at organizations in the same space, outside their space, and even for-profits. This always helps leaders shift their beliefs about what’s possible and generates new opportunities. Highly successful leaders habitually turn outward, scan the outside environment, and bring new
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LEADERSHIP
ideas and innovations back to their own organization to stay ahead.
2. LISTEN TO YOUR RANK AND FILE
The members you interact with most are your volunteers. They are your true believers and the most active members. They are unlike most of your members, who join for different reasons, want different things, and feel differently about you. When we work with clients, we talk to both volunteer leaders and less engaged members. Their perspectives are seldom the same.
Highly successful leaders continuously solicit input from their rankand-file members—and listen to them.
3. TO KNOW YOUR MEMBERS, BE A MEMBER
We join all our clients’ organizations, but our clients seldom do. As a result, they don’t know their join experience, how much they communicate to their members, or what it’s like to try to find and use their benefits. They are often appalled when they find out. One client emailed their members more than five times daily but did not know it.
Highly successful leaders have their whole team sign up to see the experience through their members’ eyes so they can make improvements.
4. MASTER THE DATA
Data is the most under utilized asset in most associations. Many associations struggle with data quality. Beyond that, they lack the analytic horsepower to make good use of the data they have. As a result, they don’t understand their trends, who their members are, or how they engage. As often as not, their long-held assumptions about
their membership are faulty. One client thought members would never want a digital community. The data said otherwise. It is now one of the benefits that members value most.
Highly successful leaders implement enterprise data platforms and hire data scientists and mathematicians. They use the data to find groundbreaking insights and get breakthrough results.
5. MAKE MEMBERSHIP EVERYONE’S JOB
No membership is an island. Membership relies on every other part of your organization to succeed. These parts must work together to create great products, content, and experiences to drive member growth. In most organizations, only the membership team has member growth goals, and the rest of the organization, while wellmeaning, has no incentive to worry about membership numbers. One client CEO who made membership a goal for everyone tripled their membership growth rate one year and doubled it again the next.
Highly successful leaders make membership everyone’s job. They build it into every incentive plan so that when membership wins, the whole organization wins.
6. INVEST IN CAPABILITIES
Associations that survived the pandemic most successfully were those that invested in the capabilities they needed to adapt and evolve— data analysis, content creation, marketing automation, and UX. No one could have predicted what the crisis would demand of them. Having the tools and skills in place to rise to the occasion was the key to thriving in a difficult time.
Highly successful leaders believe that if they build the right capabilities, the right solutions will follow.
7. STOP BEFORE YOU START
Associations are notorious for starting things they never stop. Programs whose purpose has long passed or been forgotten live on, diverting resources and distracting focus until there is no room left for big ideas that will make a big difference. One client counted more than 75 programs they supported, most under performing. By focusing on four strategic priorities instead, this CEO was able to concentrate on spaces where they had a right to win and thus transformed the organization.
Highly successful leaders make the hard decisions and say “stop” before they start new programs—to drive strategic focus, innovation, and sustained growth.
These are more than just healthy habits for association leaders. They are transformational moves that separate the good from the great. We believe every association leader can be highly successful. These seven habits will put you well on your way to achieving greatness.
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Insurance for Your Roofing Project
BY ZACHARY TOWERS, VICE PRESIDENT OF REVENUE, BEST ROOFING SERVICES, LLC
For community association managers, property managers, and condominium boards, large-scale roofing and construction projects require careful planning and risk management. Payment and performance bonds are essential tools that help protect your investment and ensure a smooth project.
UNDERSTANDING PAYMENT AND PERFORMANCE BONDS (“P&P BONDS”)
Payment Bond
A payment bond ensures the contractor will pay all suppliers, subcontractors, and laborers involved in a project. For roofing projects, this means that suppliers and subcontractors are compensated, preventing any liens on your property. Payment bonds are crucial for protecting association managers and property owners from legal issues that could arise from unpaid parties.
Performance Bond
A performance bond guarantees that the contractor will complete the project as specified in the contract. For a roofing job, it ensures that
the installation or repair is done correctly and to industry standards. If the contractor fails to deliver, the performance bond covers the cost of completing or correcting the work, safeguarding the property owner’s investment.
Together, these bonds provide a comprehensive safety net, making them vital for property management professionals overseeing complex projects.
WHY THESE BONDS MATTER FOR PROPERTY MANAGERS AND ASSOCIATIONS
Property managers and association boards face significant responsibilities, from managing budgets to ensuring quality work. Payment and performance bonds mitigate risks, ensuring financial and project security. They offer peace of mind, knowing that your project is backed by strong financial protections and high standards.
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ROOFING
HOW TO OBTAIN A PAYMENT AND PERFORMANCE BOND
While contractors are responsible for securing these bonds, understanding the process can guide you in hiring the right roofing partner:
1. Choosing a Reputable Surety
Top contractors work with experienced surety companies. At Best Roofing, we partner with industry-leading sureties, reflecting our reliability and financial stability.
2. Application and Vetting
The contractor must demonstrate financial health, a solid credit history, and a successful track record. The surety reviews financial statements and project performance to determine eligibility. This process gives you confidence in the contractor’s ability to deliver.
3. Bond Approval
Upon approval, the bond is issued, with the cost often being a small percentage of the project’s total value. Best Roofing’s position in the top 1% nationally for bonding capacity allows us to handle even the most extensive roofing projects with ease.
KEY FACTORS INFLUENCING BONDS
1. Contractor’s Financial Health
A contractor’s financial stability is crucial. Contractors with strong financials are better equipped to handle obligations, reducing risks. Best Roofing’s financial strength ensures we can always back up our commitments.
2. Experience and Track Record
Contractors with proven success are more likely to secure bonds easily. Best Roofing’s decades of experience and consistent performance give our clients peace of mind.
3. Project Scope and Complexity
Larger or complex projects require higher bonding amounts. Contractors with high bonding capacity, like Best Roofing, can handle these demands without compromising project integrity.
BENEFITS
OF P&P
1. Protect Against Liens
BONDS
Payment bonds ensure all subcontractors and suppliers are paid, preventing liens on your property. This is crucial for condominium boards and property managers who need to avoid legal entanglements.
2. Ensure Quality and Completion
Performance bonds guarantee that work is completed to contract standards. If issues arise, the bond covers corrective measures, protecting your property from substandard work. At Best Roofing, we pride ourselves on consistently meeting these standards.
3. Trust and Reliability
High bonding capacity, like Best Roofing’s, reflects a contractor’s credibility. It signals financial strength and reliability, important for property managers looking to protect their investments.
4. Effective Risk Management
Bonds shift financial risk from property owners to the surety and contractor, minimizing stress and protecting budgets. This is particularly important for association managers handling large, multibuilding projects.
When managing a roofing or construction project, using a bonded contractor like Best Roofing provides crucial protection. Our top 1% national bonding capacity ensures your investment is secure, while our expertise delivers outstanding results. For community associations and property managers, this means partnering with a contractor you can trust.
Choose Best Roofing for your next project and experience the peace of mind that comes with financial strength, quality assurance, and superior service. Reach out today to learn more about how we can serve your roofing needs with unmatched professionalism.
Zachary Towers is Vice President of Revenue at Best Roofing. He previously worked in the insurance restoration industry, managing large loss commercial projects and building teams across multiple regions. Since 1978, Best Roofing has been committed to understanding client needs and building strong, professional relationships that stand the test of time. We offer a seamless, stress-free experience, delivering quality service and clear communication at every stage of your roofing project. With the personalized care of a dedicated team and the expertise of a large contractor, Best Roofing has become the trusted partner for South Florida’s community associations, property managers, and commercial property owners. Over the past 46 years, Best Roofing has crafted a proven 31-Step Process that ensures success. Out of more than 100,000 roofing contractors nationally, Best Roofing is continually recognized among the top 1% by leading manufacturers for our quality, consistency, and volume. Our highly trained and certified teams, supported by a fleet of over 150 vehicles, are equipped to provide solutions for Flat, Tile, Shingle, and Metal roofing systems. Our unwavering commitment to excellence in roof repairs, restorations, and replacements has solidified our position as South Florida’s premier roofing company. For more information, call 888-892-2378.
Florida Reserve Funding Methods Component, Cash Flow & Making the Switch
BY NICK BRENNEMAN, SOUTHEAST REGIONAL ACCOUNT MANAGER, RESERVE ADVISORS
In Florida, there are numerous strategies associations can utilize to fund reserves, but there are two primary methods of calculating annual reserve funding requirements: the component method (straight line or restricted reserves) and the cash flow method (pooled reserves). Funding using the component method was legally required in Florida for decades, meaning reserves were only able to be used for their “authorized purpose” unless approved in advance by the members of the association. Since the administrative code was adjusted in 2002, many associations have adopted the cash flow method, or pooled reserves. So, what are the component and cash flow methods, why would an association choose cash flow, and how do they make the switch?
COMPONENT METHOD
The component method utilizes separate reserve accounts for each major project, where annual funding is calculated as the unfunded portion of the replacement cost divided by the number of years until replacement is likely. A simple way of approaching reserve funding, this method provides clarity on how each dollar is being allocated and spent. However, this approach offers no flexibility to move money between accounts. If there is a surplus in one account due to a lower-than-expected project cost or other reason, that money cannot be reallocated towards another project without prior approval
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of the homeowners. Similarly, if there is a deficit in one account due to a project occurring earlier or costing more than expected, money cannot be drawn from other accounts to cover the difference. Additionally, the component method does not allow for the inclusion of inflationary factors in reserve funding calculations, which can cause capital projections to lose accuracy with time.
CASH FLOW METHOD
The cash flow method, commonly known as pooled reserves, is generally the recommendation of Reserve Advisors. This strategy involves putting all budgeted reserve contributions into one account – the pooled reserve. Because each dollar is not separately tracked, money can be spent on any project included in the reserve funding plan. Associations can still track reserve funding and spending on a line-item basis, but the money itself is contributed to a single account.
The required funding for a pooled reserve is based on the likely yearend balance of the reserve account in a high expenditure year, also called a critical year, and ensuring that the funding in prior years is sufficient to keep the balance above a threshold of uncertainty determined by the reserve specialist and/or board. While determining this funding level is more complicated than the simple formula used for the component method, the benefits are significant.
First, associations can allocate all reserve assets towards whatever project is necessary, even if that project goes over the expected cost. Future projects can then be reprioritized until the reserve balance is high enough to fund them, and future funding can be adjusted based on the difference in the reserve account balances. However, not all projects can be safely deferred, so this decision should be made alongside your reserve consultant.
Second, this method allows for the incorporation of inflation into cost projections, giving you a more accurate estimate of future project costs. The cash flow method also predicts the interest rate gained on reserve accounts and incorporates that into projections. Because of the flexibility offered by pooling reserves, most associations will see a significant reduction in required reserve funding levels.
MOVING FROM COMPONENT TO CASH FLOW
RESERVE STUDIES
There are two routes an association can take to transition from the component method to cash flow funding. First, the association can obtain a majority vote of the owning interest (a simple majority of owners – NOT a majority of a quorum) to re-allocate existing reserve funds towards a new “pooled” account.
The second method involves the creation of a new pooled account, but no re-allocation of existing funds. With this approach, associations would contribute any new reserve funds towards the pooled account and expend money from the pre-existing component accounts until the component account balance reaches $0. While Reserve Advisors can provide industry recommendations on how to make this switch, the legality of each approach should be verified by an expert in Florida Condominium Law. We recommend consulting with professionals to determine the best route for your association.
THE BOTTOM LINE
Switching funding methods can be intimidating, and some boards may be hesitant to adopt the cash flow method. Because the component method locks down exactly where each dollar will go, they fear that switching to pooled reserves will allow subsequent boards to spend the money on unnecessary projects. However, there are controls in place for reserves to be used for their intended purpose, and boards have a fiduciary duty to act in the best interest of their residents.
Over time, we have seen around 70% of Florida associations switch to pooled reserves, getting over their initial fear of adopting the cash flow method. It is incredibly rare that an association does not save money when making the switch, and that is usually due to unique circumstances with existing funds. Overall, associations that have begun utilizing the cash flow method have seen decreased reserve contributions with no negative impact on capital replacement schedules.
As the Southeast Regional Account Manager at Reserve Advisors, Nick is responsible for developing long-term client relationships and providing industry-leading reserve study consulting services. Since joining Reserve Advisors in 2010, he has worked with hundreds of management companies throughout the Southeastern United States, ensuring that their associations receive comprehensive reserve studies, customized funding solutions, and consultative support allowing community leaders to understand and implement their plan for long-term financial sustainability. For more information, visit www. reserveadvisors.com or call 800-980-9881.
Navigating the Florida Insurance Claim
Lifecycle: A Guide for Board Members
BY BRITTANY ALEXANDER, ESQ., CEO & FOUNDER, PREMIER PROPERTY LAW
Property damage claims can be complex for board members of community associations. This guide breaks down each stage of the Florida insurance claim lifecycle, offering essential insights to help secure the best outcomes.
THE INSURANCE CLAIM LIFECYCLE IN FLORIDA
Navigating the claim process requires understanding each step, as all play a crucial role in achieving a successful result.
1. Initial Damage Assessment
The process begins with a detailed damage assessment. Accurate documentation, such as photos, videos, and expert evaluations, is
essential. Collaborating with engineers and specialists ensures that both the cause and scope of damage are thoroughly evaluated, which can strengthen your case. Consulting with an attorney early on can streamline this stage, ensuring that necessary information is organized for prompt notification to the insurer, as required by most policies.
2.
Reading Your Policy and Understanding Coverage
Understanding the specifics of your insurance policy is essential to managing expectations and making informed decisions. Policies vary widely, and inadequate coverage can leave associations financially
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vulnerable. While insurance agents provide general guidance, consulting with a property claim attorney can help identify gaps or limitations. Reviewing the policy thoroughly helps clarify coverage, ensuring you’re prepared if a claim becomes necessary.
3. Filing the Claim and Submitting Documents
Once damage assessment and coverage are understood, the next step is to file the claim. This involves preparing and submitting a detailed report to the insurer. Many claims are delayed—or even denied— due to incomplete information or filing errors. An attorney can help ensure that all details are accurate and complete, reducing the risk of delays caused by missing or incorrect information.
4. Coordinating and Communicating with Adjusters
After the claim is filed, the insurance company assigns an adjuster to inspect the property and evaluate the claim. Comprehensive documentation helps expedite this stage. Attorneys can liaise with the adjuster to ensure a smooth and accurate inspection, keeping the claim on track. Some adjusters can make coverage decisions, while others report findings up the chain. Clear communication with the adjuster can help avoid misunderstandings and address any issues as they arise.
5.
Handling Disputes and Negotiating Payments
Once the insurer decides on coverage and payment, disputes may arise about the extent of coverage or the amount offered. Attorneys with in-depth knowledge of policy language and relevant legal precedents can negotiate on behalf of the association, advocating for fair compensation. If a resolution isn’t reached, alternative dispute resolution (ADR) methods, such as mediation or litigation, may be pursued. When insurers agree to partial payment, they often release that portion while the remaining disputed amount is addressed, allowing associations to start repairs with less delay.
6. Receiving the Insurance Funds
After inspections, negotiations, and potential disputes, the final step is receiving the insurance funds. The goal is to secure fair compensation to cover all eligible damages under the policy terms. This stage represents the culmination of a detailed process, where careful attention to each phase can make a significant difference in achieving the best outcome.
TIPS FOR BOARD MEMBERS
To successfully navigate each phase, here are three practical tips for board members:
Know Your Policy
Familiarity with your policy is critical. Knowing your coverage limits, exclusions, and potential gaps empowers you to make informed decisions during a claim. Reviewing the policy before damage occurs is beneficial to avoid surprises.
Document Everything
From the initial discovery of damage to every interaction with the insurer, thorough documentation is invaluable. Photos, videos, and records of all communications strengthen your claim and protect you in the event of disputes. Detailed records can even support a potential bad faith claim if the insurer fails to meet its obligations.
Consult an Attorney Early
Involving an attorney at the outset can streamline the process and help avoid common pitfalls. Attorneys assist with policy reviews, initial steps, and proactive issue resolution, making the claim process smoother and increasing the likelihood of a successful outcome.
Board members don’t have to navigate the complexities of the Florida insurance claim lifecycle alone. By understanding each stage of the process, maintaining thorough documentation, and consulting with experts, board members can help secure the best possible outcomes for their communities.
WANT TO LEARN MORE ABOUT THIS TOPIC?
Watch the full video on www.youtube.com/@LawyerBritt or scan the QR code below.
Brittany Alexander, Esq. is the CEO and Founder of Premier Property Law. Since 2020, she has built a reputation as a dedicated advocate for property owners in Florida and Colorado, securing over $40 million in settlements from 2021 to 2023. With a background in representing insurance companies, Ms. Alexander uses her insider knowledge to fight for her clients’ rights. For more information, email ba@premproplaw.com.
Community Assoction Management
A Differing Tale of Two Terminating Condominiums
BY JEFFREY A. REMBAUM, ESQ., KAYE BENDER REMBAUM, P.L.
Anextremely similar fact pattern leads to diametrically opposed results between Florida’s Fourth District Court of Appeal and Florida’s Third District Court of Appeal. In the case before the Fourth District Court of Appeal, Fellman v. Mission Viejo Condominium Association, Inc., Case No. 4D22-1260, (Fla. 4th DCA April 6, 2023), 175 of the 176 condominium units were acquired over time by a bulk owner, and the bulk owner sought termination of the condominium. However, Fellman as the single holdout objected to the plan of termination. At trial, the trial court entered a summary judgment in favor of terminating the condominium, which Fellman then appealed to the Fourth District Court of Appeal.
The Mission Viejo Declaration of Condominium was recorded in 1980 and required 100 percent consent of all unit owners as necessary to terminate the condominium form of ownership. Forty-one years later, on February 5, 2021, the bulk owner amended the required
vote to terminate the condominium from 100 percent to 80 percent, using the general amendatory provision set out in the Declaration of Condominium, which required only 80 percent consent of the voting interests. Therefore, notwithstanding the original 100 percent requirement necessary to terminate the condominium, only 80 percent of the owners had to vote in favor of lowering the consent needed from 100 percent to 80 percent, which resulted in fully divesting Fellman of the right to object to the termination of the condominium.
Obviously, Fellman did not vote in favor of the amendment. Fellman argued that by allowing 80 percent of the unit owners to amend the otherwise required 100 percent consent of all owners to terminate the condominium, it fully eviscerated his right to object to the termination of the condominium and his voting rights—a right bestowed upon him
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when he purchased the unit. There are few things more sacrosanct than an owner’s right to vote. Nevertheless, neither the trial court nor the Fourth District Court of Appeal agreed.
While Fellman should have been able to rely on the 100 percent termination approval requirement as originally required in the declaration of condominium, the trial court believed that if the 100 percent requirement was to be protected from being amended with a lower percentage of voting interests, then the provision in the declaration of condominium should have clarified that it could only be amended by nothing less than 100 percent approval of the unit owners. Since it did not, the trial court found no issue with the bulk buyer eviscerating the 100 percent vote needed to terminate the condominium with 80 percent of the voting interests casting their vote in favor of the amendment.
Fast forward eleven months to March 13, 2024, when Florida’s Third District Court of Appeal, in Avila v. Biscayne 21 Condominium, Inc., Case No. 3D23-1616 (Fla. 3d DCA Mar. 13, 2024), noted that the provision in the Biscayne 21 Declaration of Condominium (requiring 100 percent of the voting interests to vote in favor of the termination could NOT be amended using the lower vote threshold needed to amend the declaration of condominium) was likely to prevail. As you will note, this decision diametrically opposes the outcome in the Fellman case. In this case, Avila sought a temporary injunction to stop the plan of termination.
The trial court denied it. Avila appealed, and the Third District Court
of Appeal agreed with Avila that Avila’s claim stood a substantial likelihood of success on the merits. The declaration of condominium at issue in the Avila case had an additional provision that required “100 percent approval for amendments that alter the voting power of unit owners.” However, it should be axiomatic that to obliterate an owner’s right to vote by terminating the condominium where the declaration had required 100 percent of the owners to vote in favor of termination could not be amended by a termination provision of anything less than 100 percent of the owners.
The Third District Court of Appeal commented that the change to the termination vote threshold materially altered the unit owners’ voting rights. By requiring a unanimous vote for termination, the declaration of condominium originally gave every unit owner an effective “veto” over any termination plan, which would be lost if the amendment adopted by using the general amendatory powers set out in the declaration of condominium were to stand. The Court even cited the Tropicana Condominium Association, Inc. v. Tropical Condominium, LLC, 208 So. 3d 755 (Fla. 3d DCA 2016), finding that non-unanimous amendments to a declaration reducing the vote threshold for termination of condominium could not be applied where the declaration expressly required the unanimous vote to amend the termination provision, and the amendment, if retroactively applied, would eviscerate the unit owners’ contractually bestowed veto rights.
In fact, Fellman also argued the Tropicana case to the trial court, which rejected the argument; and to add insult to injury, such decision was affirmed by the Fourth District Court of Appeal. So, in the world of inconsistent decisions, Fellman was denied by the Fourth District Court of Appeal the right to veto the plan of termination and is in process of potentially losing his unit, while the Avila court found his right to veto the plan of termination seemingly protected by the Third District Court of Appeal as evidenced by issuance of the temporary injunction in his favor. Unfortunately, even once the Avila case reaches a final judgment, and if in Avila’s case that decision is appealed and upheld by the Florida Supreme Court, Fellman still loses his right to veto the plan of termination as initially bestowed upon him and, even more unfortunately, will lose ownership of the unit.
Mr. Rembaum is Board Certified in Condominium & Planned Development Law, has considerable experience representing Florida community associations and is a Florida Supreme Court certified circuit civil mediator. He regularly provides legal representation to both new, established, and “under construction” associations. Every year since 2012, Mr. Rembaum was selected to the “Florida Super Lawyers.”
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Ensuring Fairness in Construction: The Role of Engineering Oversight
BY CHARLES LONG, DIRECTOR OF THE SOUTH FLORIDA OFFICE, MARCON FORENSICS LLC
Inthe construction industry, change orders are common but often contentious. These modifications can significantly impact the project’s timeline and budget. Without proper oversight, clients may face unjustified costs and delays. This article explores the importance of having an independent engineering professional to review and verify change orders, ensuring fairness and transparency in construction projects.
UNDERSTANDING CHANGE ORDERS
A change order is an amendment to the original construction contract, detailing changes to the scope of work, costs, and schedule. While some change orders are unavoidable, they can often lead to disputes if not managed properly. Common reasons for change orders include:
• Unforeseen Site Conditions: Discoveries made during construction that were not visible during the initial inspections, such as hidden structural damage or unanticipated ground conditions.
• Design Modifications: Changes requested by the client or required to comply with new regulations or standards.
• Scope Adjustments: Expansions or reductions in the project’s scope based on new information or changing client needs.
THE RISKS OF UNCHECKED CHANGE ORDERS
Without rigorous oversight, change orders can become a significant
source of additional costs and project delays. Clients, especially those without a dedicated project management team, can find them- selves at a disadvantage. Contractors may propose change orders that are not fully justified, leading to inflated costs or unnecessary work. Additionally, contractors might price materials above market rates, further increasing the project’s cost. This situation underscores the importance of having an independent professional to scrutinize these changes.
THE ROLE OF ENGINEERS IN CHANGE ORDER REVIEW
Engineers play a critical role in reviewing and validating change orders. Their expertise in structural, mechanical, electrical, and plumbing systems allows them to assess whether the proposed changes are necessary and fairly priced. Key tasks engineers undertake in this process include:
• Documentation Review: Engineers meticulously review the documentation provided by con- tractors to support the change order. This includes analyzing drawings, specifications, and cost estimates to ensure they are accurate and reasonable.
• Site Inspections: Conducting on-site inspections allows engineers to verify the conditions that prompted the change
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order. This step is crucial in confirming whether the changes are genuinely needed or if there are alternative solutions.
• Cost Analysis: Engineers perform detailed cost analyses to ensure that the pricing for the change order is fair. They consider material costs, labor, and the impact on the overall project schedule, comparing them to current market prices.
• Negotiation Support: Engineers can provide valuable support during negotiations with con- tractors, helping clients understand the technical aspects of the change order and advocating for fair adjustments.
CASE STUDY: PROTECTING CLIENT INTERESTS
Consider a scenario where a building undergoing a 40-year recertification reveals unforeseen structural issues. The contractor submits a change order with substantial additional costs. An independent engineering review might uncover that while some changes are necessary, others are excessive. By performing a thorough inspection and cost analysis, the engineer can negotiate more reasonable terms, saving the client significant expenses.
In the dynamic environment of construction projects, change orders are inevitable. However, without proper oversight, they can lead to significant financial strain and project delays. Independent engineers provide a crucial service by ensuring that change orders are justified, necessary, and fairly priced. Their expertise protects clients from
ENGINEERING
undue costs and helps maintain the integrity of the construction process. By understanding the importance of engineering oversight, clients can better navigate the complexities of construction projects and ensure fair outcomes. Engaging an independent engineer to review change orders is a prudent step towards achieving successful and equitable project completion.
Charles Long is the Director of the South Florida Office at Marcon Forensics LLC in Boca Raton and recently became a partner at the company. With years of experience in design, construction management, and project oversight, he has successfully led a wide range of multi-million-dollar projects, including condominiums, commercial complexes, and residential communities. Charles is experienced with various structural systems, including concrete, wood, steel, and prefabricated structures. He is skilled at identifying and addressing technical issues early to keep projects on schedule and within budget. His leadership ensures that all projects meet performance, cost, and client expectations.
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