The CommunityLINK Blog

Holiday Lights without Casualties in your Condo or HOA

2011-12-16T14:19:00.004-05:00

In many families, the December holidays call for decorating houses and yards with bright lights. In some neighborhoods, the homeowners compete in creating showcases of lighting effects that draw a nightly parade of slow-moving cars, filled with people who appropriately "ooh" and "aah" at what they see.

What may not make the news is the fact that each year about 12,500 people show up in hospital emergency rooms for falls from ladders or cuts and shocks related to the holiday lights and decorations.

Here are some tips for keeping you and your family members off the emergency room registration lists:

When you purchase indoor or outdoor lights, use only those that have been safety-tested by a recognized testing laboratory. The accompanying tag or label indicates that the lights conform with safety standards.
Use only lights that have fused plugs.
When you pull your family lights out of the storage boxes, check each set (even the new ones), for broken or cracked sockets, frayed or bare wires or loose connections. Throw out the damaged sets. A new set of lights will cost less than your emergency room treatment.
Always replace burned-out bulbs promptly with the same wattage bulbs.
Use no more than three standard-sized sets of lights per single extension cord. Make sure the extension cord is rated for the intended use (indoor or outdoor).
Never use electric lights on a metallic tree. The tree can become charged with electricity from faulty lights; any person touching a branch could be electrocuted.
Before using holiday lights outdoors, check the labels to make sure they have been certified for outdoor use.
When stringing up the lights on your house or on trees and shrubs, stay away from power or feeder lines that lead from utility poles into older homes.
Fasten outdoor lights securely to trees, house walls or other firm supports. This will protect the lights from wind damage. Use only insulated staples---not nails or tacks--- to hold strings in place. You can also choose to run strings of lights through hooks (available at your neighborhood hardware store.)
Turn off all holiday lights when you go to bed or when you leave the house. The lights could short out and start a fire while you're sleeping or while you're away from the house.
When it's time to remove the lights, never pull or tug on them. They could unravel and inadvertently wrap themselves around power lines.

Outdoor electric lights and decorations should be plugged into circuits that are protected by ground fault circuit interrupters (GFCIs). Portable outdoor GFCIs can be purchased where electrical supplies are sold. They can be installed permanently to household circuits by a qualified electrician.

Article by Kent Crook, President of Wiremasters Electric, Inc.

3 More Reasons to Volunteer for Your Community Association

2011-11-02T15:35:00.000-04:00

We share our CommunityLINK Blog posts with several groups on LinkedIn. Our most recent post, Top 10 Reasons to Volunteer for your Community Association, received an incredible response. One of the comments included the readers own reasons to volunteer for your Community Association. We enjoyed reading his comments so much, we thought it would be great to share them with the rest of our Blog readers.

1. To create a community spirit! - My own HOA all came together and picked up garbage, debris and raked leaves. It saved everyone money and avoided a higher assessment for the forthcoming hear. This will be a bi-monthly event. We had a blast and got to know each other even more.

2. To save postage and exercise! - Posting mailings on each door rather than mailing can save the community on postage and is also great exercise!

3. To protect the community! - Law enforcement can't be everywhere all the time. We all look out for each other, by creating a Neighborhood Watch it is nothing short of a win-win.

Although these may not be the "normal" reasons homeowners volunteer for their Board of Directors, they are certainly some great reasons. Whatever your reason may be, contact your Board of Directors or Management Company and volunteer to give back to your community. Willing volunteers are always needed and appreciated.

So we ask you, what's your reason for volunteering for your Community Association? We look forward to your response and comments.

Top 10 Reasons to Volunteer for your Community Association

2011-10-11T12:19:00.000-04:00

There are many reasons why homeowners volunteer to be a part of their Condominium or Homeowners Association Board. Below we've listed the Top 10 Reasons to Volunteer for your Community Association Board of Directors. The Condo's and HOA's we represent throughout Miami Dade, Broward, and Monroe Counties are constantly looking for dedicated and talented homeowners to join their Board of Directors. Give it a shot!

Why volunteer to be on the Board?

To protect you property values and maintain the quality of life you expect in your community.

To correct a problem within your community. Perhaps parking is an issue, or maintenance has been neglected.

To give back to your community and neighbors.

To be sociable, meet your neighbors, and make friends.

To advance your career and build your personal resume by including your leadership capacity and community volunteer service.

To have fun accomplishing things around your community together with your neighbors. Being on the Board doesn’t always have to be negative.

To get educated on the many facets of running a community association such as; the many laws and regulations, maintenance and repair, and understanding financials.

To express yourself and be creative while offering your opinion on solutions to your communities day to day problems.

To earn recognition from your peers for your contributions to the community.

To advance the ‘givers gain’ mentality of improving society as a whole while assisting your neighbors throughout the community.

As you can see, joining your Community Association Board of Directors can be rewarding in many ways. We enjoy working with our Board Members in our South Florida Condo and HOA Communities and we encourage you to give it a try!

Modified fromCommunity Association Institute

Think Long Term for Condo and HOA Planning

2011-09-22T10:00:00.000-04:00

Association's and their Board's sometimes seem to have ADD (Attention Deficit Disorder), and we really mean no offense by that. However, we notice more and more everyday that Association's tend to spend a lot of time juggling a number of projects. This tactic not only makes it more difficult for projects to be completed, but are also signs of a disorganized Board and Manager. This makes both homeowners and board members frustrated. A good Property Manager knows just how to overcome this ADD syndrome.

Board of Directors need to not only have a plan, but they need to work their plan through their manager every single day.

The plan must primarily include major capital expenditures, such as roof replacement, painting, and pavement resurfacing. Without a Capital Improvement Plan most Associations will have no choice but to defer major maintenance issues which will most certainly cost more in the end. Board Members should work with their Property Manager to develop a long term Capital Improvement Plan for adequate reserve funding.

Your plan should also include regular property maintenance from your Associations operating budget. These regular maintenance items include lamp replacement, tree trimming , or elevator upgrades. Repair items should be built into your monthly operating budget in order to avoid costly emergency repairs and to preserve the condition of the property. By performing regular repairs on a monthly basis and avoiding emergency repairs your Association will save in the long term.

Board Meeeting

The Associations plan should also have a time frame built into it which sets expectations for the Property Manager, the Board, and homeowners as to when items should be paid for and completed. This keeps everyone on track and avoids the unnecessary juggling of uncompleted projects.

In closing, a Board should always think Long Term. "What's here today is gone tomorrow" is not necessarily true for Community Associations because what's here today will only be a bigger more expensive problem tomorrow.

Our Property Managers in South Florida work closely with Board Members to develop property maintenance plans that focus on long term repairs that help increase property values in the association communities we serve throughout Miami Dade and Broward Counties.

5 Ways to Cut Your Condo or HOA Budget

2011-09-12T16:13:00.001-04:00

It's September and before you know it the new year is upon us. Now is the time for your Condominium Association or Homeowners Association to begin working on it's Annual Budget for 2012. As always, Community Associations are looking for ways to reduce their operating budget without affecting Association services. In order to assist you through this process we've created our list of 5 Ways To Cut Your Condo or HOA Budget.

There are many ways to effectively reduce a Community Associations Budget, however, we've had to narrow our list down to only five (we can't share all of our secrets with you!!). We hope you enjoy this post and if after reading it you have any additional suggestions, please feel free to share those with us and our readers in the comments section of our Blog.

Here are our five ideas for reducing your Community Association costs:

1) Monitor your utilities... Utilities such as water and electricity are usually an Associations second largest expense item, after insurance. You'd be surprised what you'll find by just monitoring these utility bills on a monthly basis. Unexpected hikes in usage can be a great indicator that there's a leak somewhere and, believe it or not, catching it early may allow you to request an adjustment or credit from your utility provider. Our Property Manager's and Accounting Staff are trained to monitor these types of occurrences.

Switching to light bulbs that use less electricity have also shown to be very effective for Associations looking to reduce their expenses. Although they may be more expensive, their longer useful life coupled with the energy savings you'll see is certainly worth it!

2) Focus on necessities... Although this may seem like an obvious one, it's a very important one. Many Association Boards have been able to reduce a lot of expenses by focusing only on the communities needs, rather than the wants. By doing so, you can plan accordingly for future items and put aside a few extra dollar's for those unexpected emergencies. For example, in the past, many communities would redecorate their lobby's and common area's on a more frequent basis. By extending the amount of time between upgrades you can really cut back on a lot of truly unnecessary expenses.

3) Talk to your Insurance Agent... Insurance is an Association's largest expense, but likely it's most important expense and certainly not an area you want to play with. However, it's important that your Board communicate with your Insurance Agent more often than just once a year at renewal time. By opening the lines of communication your Insurance Agent will have your Association in mind when new markets open up or when insurance companies provide special service offerings or programs. You should be honest with your Insurance Agent and let them know that your Community Association is looking to tighten its belt, they may have some suggestions for you.

4) Don't throw your money in the trash... Did you know that waste service for many communities has increased over 15% for the past 5 years? That's a huge increase when you do the math! Our suggestion is to deal directly with a waste service broker. A broker is able to provide your community the same or better service at wholesale prices, probably even through your current provider. A waste broker can provide an analysis of your service needs to make sure that you're container size is neither too large, nor too small, and that your service days fit your needs. Our clients have experienced savings of up to 25% in the first year. No one likes to throw their money in the trash!

5) Negotiate... Now is the time to get started on negotiating all of your Associations vendor contracts. This should become an annual routine. If your community has been working with the same gate contractor or landscaper, let them know that you're interested in continuing to do work with them through the coming year, but would like to inquire about possible price reductions. You'd be surprised that many of them would be understanding. You may also want to bid out a lot of the work being done around the community to similar vendors. Competition is tough out there and there is always someone looking to offer the same or better service for a better price!

There is more to it than just these five tips, however. We provide our clients with an annual assessment of their service needs prior to assisting them with budget preparations. This keeps monthly assessments low, service offerings high, and residents smiling!

Cash vs. Accrual Accounting For Community Associations

2011-08-15T22:09:00.000-04:00

A Manager's Perspective...

There are two basic general accounting methods. However, there always seems to be some confusion when it comes to these methods and how or when to use them. Each method has its own advantages and disadvantages. But overall, the main difference between the two systems would be the timing of the transactions and when they are recorded. We will provide a brief review of each accounting method in this article.

Cash Accounting

When using the cash accounting method you record income when it is received by the association and you record expenses at the time you write a check to a vendor.

The disadvantage with the cash method is that the Board or Management is unable to see the amount of assessments that were still owed to the association or the amount of outstanding bills or debt that the association has. Other problems would be if there are quarterly assessments or prepaid assessments, the cash method would typically overstate the income for that month. In cases of quarterly income, it overstates the association’s income by 2 months. Cash accounting does not distinguish between current cash or prepaid cash.

The advantage of this method is that it more accurately represents the amount of cash the association has at that point in time.

Accrual Accounting

When using the accrual accounting method you record the income when it is billed to the owners, regardless of when the income (receivables) is actually received or paid. Expenses are recorded when you receive the goods or services (payables or invoice) even though you may pay at a later date.

The disadvantage with the accrual method, especially when an association is facing a large amount of delinquent units and foreclosures, is that your assessment income (which is recorded at the time it is billed) is overstated and you never quite have a handle on when you may get paid for past due assessments. Therefore with the accrual method there are balance sheet report items that record and account for these amounts that are owed or remain unpaid.

The advantage of this method is that it more accurately reflects the overall financial health of the association from month to month. Income and expenses are matched for that reporting period, thus producing an accurate Net Income or Loss report.

So which method should we use?

Chapter 718 (Condominium Associations), in most cases, requires accrual based accounting, whereby Chapter 720 (Homeowners Associations) does not specify a required method. Both Chapter 718 and 720 require that financials statements be prepared in accordance with generally accepted accounting principles.

Should you have further questions about the two accounting methods do not hesitate to contact us, or speak to a Certified Public Accountant (CPA) who is familiar with Community Association accounting practices to best assist you.

May is Electric Safety Month - Is Your Home or Condo Safe From Electrical Hazards?

2011-05-17T15:36:00.000-04:00

May is national Electrical Safety Month, a good time to remind everyone of ways to be safe around and electricity and to treat electricity with respect. We all take electricity for granted because we use it everyday in our homes, businesses, etc. We surely could not be writing this blog, nor could you be reading it without electricity. It’s just simply become a way of life for us, and like many other things, we take electricity for granted. Electric Safety Month is dedicated to educating people on the dangers of electricity.

By being careless in our use of it in our homes and at the work-site we can cause serious injury, possible death, and fires. The majority of electrical accidents and injuries caused by electricity come from unsafe equipment or installation, an unsafe environment, or unsafe work practices.

Electrical Safety at Home:

Use only appliances and equipment approved by Underwriters Laboratories. (Look for the UL listing on the label).
Keep all radios, hair dryers and other appliances secured or out of bathrooms. Hair dryers should never be used near water-filled tubs and sinks. Teach your children that electricity and water don't mix.
Don't overload electrical outlets. If your TV picture shrinks or flickers when major appliances are turned on, or if you notice that fuses or circuit breakers blow out frequently, then you should have your circuits and wiring checked.
Never unplug or carry an appliance by its cord. Don't run cords under carpets or furniture. The cords can overheat and/or become frayed.
Teach your children not to poke things into electrical outlets, toasters, or any other appliance, whether they're on or off.

Electrical Safety Outdoors:

Keep all ladders and tools at least ten feet away from any power lines. Put up ladders only when you have work to do. Make sure that if the ladder were to fall, it would not contact any power lines or electrical equipment.
Any outdoor outlets should be on a circuit that is protected by a ground fault circuit interrupter (GFCI). These are required in newer homes in bathrooms, garages, outdoors and near sinks. GFCIs can be added as a temporary plug-in adapter, added as a replacement outlet or installed as a circuit breaker. Check with your electrician for options.
Teach your children not to fly kites near power lines or around electrical substations.
Teach your children not to climb or play in trees if there are power lines nearby or lines touching or growing through the branches.

Electrical Safety at Work:

Train all employees to make them thoroughly familiar with safety procedures for their jobs.
Use insulating protective equipment.
Properly maintain tools that help protect workers against electric hazards. When a defect is found in a tool, it should be removed from service and tagged so that no one will use it until it has been repaired or replaced.
Where extension cords are used, make sure that they are factory-assembled, 3-wire type cord sets.
Do not remove cords from receptacles by pulling on the cords themselves.
Use double-insulated tools and equipment that are distinctively marked.
Visually inspect all electrical equipment before use. Remove from service tools with frayed cords, missing ground prongs, cracked tool casings, etc.

Although Electrical Safety Month only comes once a year, it's important for you to pay attention to the basic safety rules all year long. Your life depends on it.

4 Steps to an Effective Board Meeting - Before and After You Leave The Meeting Room

2011-05-11T10:36:00.000-04:00

We often hear Board Members and homeowners gripe about ineffective community meetings where nothing get's done. In response to these complaints we've developed a simple process we use to train our Board Members on holding effective and decision focused community meetings. We outlined this process in our recent Blog titled Decision Making at Board Meetings.

However, we also often find that although Board Members may hold successful meetings where many decisions are made, there is very little follow up that occurs after the meeting. Our manager's are held responsible for leading community meetings, keeping the Board focused on agenda items throughout the meeting, and carrying out the wishes of the Board after the meeting. We've developed a simple 4 step process to running effective Board Meetings - before and after you leave the meeting room.

Through our simple 4 step process we are certain your Board of Directors will get more accomplished not only during your regular Board Meetings, but once you walk away from the meeting room.

Here are the 4 steps your Board can take to ensure your meetings come to a productive close and result in effective action after you leave the meeting room. The list is short and simple because the process is simple.

Action Plan. Your Board should always create an Action Plan before every meeting. The plan should include key decisions to be made at the meeting, follow up steps after the meeting, identify responsibility for each task, and provide completion dates or deadlines. Your Action Plan should be kept to one page or less. Usually the President or Vice President will prepare the Action Plan.
Communicate quickly. Many times a Board will not communicate for weeks after a board meeting. This is not very efficient and causes everyone to lose momentum on accomplishing their assigned tasks. We suggest you get an e-mail out to meeting participants within 24 hours after the meeting, to ensure momentum is not dissipated. The e-mail can include meeting minutes or a simple summary of your Action Plan that reiterates the Board's goals and realistic deadlines.
Follow up. Your Board should assign a specific Board Member with the duty of following up. As deadlines approach this persons responsibility is to send out reminders to make sure everyone is on track. By following up your Board remains informed on the status of a project and whether or not the deadlines will be met. This will also help you prepare for future Action Plans and in setting realistic achievable goals in the future.
Inform. Once all the tasks have been accomplished or are nearing completion, inform the group of the status of each item. E-mail all Board Members the Action Plan for the following meeting and outline any further steps necessary, if any.

By making these 4 Steps to an Effective Board Meeting - Before and After You Leave The Meeting Room a part of every community meeting your association holds you will never again be accused of wasting people’s time, nor will you yourself have to sit through hour long meetings to accomplish very little.

We take pride in holding effective Board Meeting for our clients and in preparing our Board Members to do the same. Should you have any questions or if you would like additional information, please contact us!

5 Tips to Green Your Home

2011-05-03T15:24:00.000-04:00

Four Points Property Management wishes you a Happy Earth Day! Yes, we know, Earth Day was days ago... We're sorry for the late post, but in keeping with our commitment to Green Communities, we've decided to prepare a list of 5 easy ways to green your home.

Over two years ago we began the “Green Our Office” initiative. Through equipment upgrades, paper recycling, using recycled and earth-friendly print/copy ink, and by making lighting improvements we have reduced our total energy consumption and our office is officially Green. However, we are constantly looking for ways to become more energy efficient and we enjoy passing these green ideas to the residents of our community associations.

In our efforts to provide residents with tips and ideas on how to better green their homes and reduce their energy consumption, we’ve compiled 5 green tips for making your home more eco-friendly.

Turn off your home office equipment when not in use. This can reduce energy by 25 percent. Turning off televisions and entertainment equipment can save an additional 50 percent.
Tightly turn off all faucets, one drop per second wastes 10,000 liters per year.
Need new home or office furniture? See if your existing furniture can be refurbished which saves waste and money.
Use a Smart Strip power cord that can sense when a device is turned off and cut their “phantom power” (the power that electronics use even when they’re turned off). The savings provided are huge!
Efficiency heating and cooling saves the earth and money. Have a technician repair and test leaks, and check regularly for faulty filters, coils, compressor fans, and drains throughout your home.

For more eco-friendly ideas feel free to contact us. We are always interested in learning from you and sharing valuable information. You can reach us online at www.FourPointsProperty.com or at 305-403-0575.

Our commitment to Green Communities continues....

How to start a Neighborhood Crime Watch

2011-04-21T22:30:00.000-04:00

Many of you have mentioned incidents in your neighborhood that could have been prevented if you had a Crime Watch group. Here is a simple step by step process on how to establish a Crime Watch Group in your neighborhood.

When a resident calls the Citizens Crime Watch office at 305-470-1670, a request for service is created listing to all their information and concerns so that it can be forwarded to the appropriate law enforcement department.
An initial meeting, which last about an hour, is scheduled for a weeknight at 7 p.m. — a good time for people to be home from work.
The meeting preferably is held in the neighborhood at someone's home. This way people can just walk to the meeting. This has been found across the country to be much more effective since the objective is to meet and get to know your neighbors. In some areas, this part may not be possible due to crime issues, so we try to find a safe location nearby for the meeting — a church, a clubhouse or in some cases, in the middle of the street. For those who live in apartment buildings, we have held meetings in parking lots too.
Once a meeting date has been established with the police officer and the host, a flier and brochure are provided to be distributed to all neighbors. English, Spanish and Haitian Creole versions are available. This is to inform everyone of the meeting; the brochure speaks to the implementation of a Neighborhood Crime Watch.
The night of the meeting, the police officer and someone from the Citizens Crime Watch office will attend. The officer provides information regarding crime trends, crime statistics, the police departments role in the community and what their department is doing to assist the community.
The officer also discusses alarm issues as well as how and when to call the police. The officer teaches residents what information is needed when calling police about a suspicious person or vehicle. The officer also answers questions.
The Citizens Crime Watch coordinator explains how to set up a phone chain — a collection of phone numbers, addresses and special needs or information pertinent to each home in the neighborhood. When the phone chain is completed, it is shared with all neighbors participating in the crime watch.

Creating a phone chain is the most crucial part of Neighborhood Watch because it's how everyone stays in touch, as you witnessed from last week's article. Once the above is completed and the Neighborhood Watch is organized, the Citizens Crime Watch and Police Department then provide Crime Watch signs, house stickers and T-shirts. All of this is paid for with your tax dollars.

Implementing a Neighborhood Watch is not easy. It takes dedication and "sweat equity", but as the thousands already involved will say, it's the best thing that can happen to a neighborhood.

The above steps may differ for some municipalities that implement their own programs. If they don't have a Neighborhood Watch program, contact the Citizens Crime Watch office and they will be happy to supply you with some crime prevention materials.

Credit to Carmen Caldwell, executive director of Citizens’ Crime Watch of Miami-Dade for article content. She may be contacted at 305-470-1670 or carmen@citizenscrimewatch.org.

The Handy Pantry - 5 Items You Should Always Keep on Hand

2011-04-12T15:44:00.001-04:00

So with this post I decided to stay away from the usual Condo and HOA Management talk and focus more on something "off-topic". Believe it or not, we're already planning for Hurricane Season, and I thought this fit right in. This post will focus on 5 simple, but very important things every family should always have in stock at home.

It's been a long day at work, and you arrive home tired and hungry. After rummaging through the kitchen, you discover that your fridge is pretty much empty and your cupboards are bare. It's been such a long day that you just can't bring yourself to go to the market. So, what do you do? Chances are, you pick up the phone and call a local restaurant or pizza chain that delivers. Has this happened to you? It feels as though it happens to me at least once per week...

Ordering in can be a nice solution once in a while, but over time the costs can add up. Not only are you paying more for your food, you're also probably eating meals that aren't very healthy. Although it may seem difficult, this can be easily avoided by keeping a few very specific products in your pantry. With these items in hand you'll be able put together a quick and nutritious meal in no time.

The first step is to stock quality items that are flexible enough to work with the ingredients you may have on hand in your fridge. Here are five great products to get you started:

Canned Tuna (packed in olive oil) - Tuna has a myriad of uses. For starters, it's the key ingredient of a killer Salad Nicoise. Anyone who has a George Foreman Grill, panini press, or a grill pan can also use this tuna for an authentic Italian tuna panini. Canned tuna can even be used in making a great sauce for pasta. Simply drain the tuna and toss it into warm pasta, along with capers, cherry tomatoes, parsley, and olive oil.

Dried Penne Pasta - Everyone knows about the many different uses of dried pasta, but dried penne offers even greater flexibility. It is a fantastic replacement for elbow macaroni in mac and cheese. It can also serve as a terrific starch component in any casserole. Another nice feature of penne is its ability to be served at room temperature. If you've got cooked penne in the fridge, you can add it to leftover veggies, toss the mixture with a little Italian dressing, and serve it as an entrée pasta salad.

Canned Beans - Beans are great for chili, stews, and soups. They also make a nice addition to any salad. But maybe the best reason for keeping canned beans on hand is their use as a quick appetizer for guests who drop by without warning. A can of cannellini beans (drained) mixed with olive oil, garlic, chopped tomato, and any fresh or dried herbs you have on hand makes a great topping for grilled bread.

Canned Chicken Stock - This product has improved a great deal and is a far cry from the salty version you may remember from the past. Now, you can actually purchase organic and free-range chicken stock. Having stock on hand allows you to whip up a quick gravy or sauce for any meat dish. It's also a great base for many soups. Simply simmer one pound of vegetables, like carrots or cauliflower, in 4 to 6 cups of stock for 10 minutes. Process or blend until smooth, season with salt and pepper, and finish with a touch of cream.

Canned "San Marzano" Tomatoes (chopped and whole) - Imported from San Marzano, Italy, these are the best canned products on the market. Unless you have tomatoes growing in your back yard, you can't do much better, especially when it comes to making a great marinara sauce. They also make a fantastic tomato soup.

By keeping your pantry stocked with these flexible ingredients, you'll be able to prepare tasty meals in no time while also eating healthy and saving those pennies!

Decision Making at Board Meetings

2011-02-07T15:25:00.000-05:00

It is easy at times for Board Members and Managers alike to lose sight of the Associations goals in between board meetings. This may occur for many reasons, including too few or too frequent meetings, lack of preparation between meetings, etc. It’s important to remember that the board meeting is the end of the decision making process for the board and not the beginning. The Board needs to be prepared to make decisions at every meeting.

Below are some tips that will assist your board and manager in preparing for effective decision making during your board meetings:

o Schedule your board meetings in advance for the entire year. Notify your association members, board members, and management to note their calendars. Schedule them around holidays to guarantee high attendance and involvement.

o Schedule your board meetings in accordance with your community by-laws. However, be sure to schedule them often enough to allow for timely attention to association issues, projects, improvements, and any other matter requiring management or board member action or decision. Some boards hold meetings monthly, others hold them quarterly. We believe these to be good meeting strategies.

o Prepare and distribute your meeting agenda at least 3 to 5 days prior to the scheduled meeting. The agenda should be detailed and provide a time limit for each item. This will allow your manager and board to better prepare for the meeting and the decision making process.

o Make room on the agenda to involve and invite members to join or start committees. Provide sufficient time for committee volunteers to provide their reports and suggestions to the board.

o Once the agenda has been prepared, distribute any supporting documents such as meeting minutes, proposals, written requests, etc. prior to the meeting. This will allow board members to read each document, prepare questions, and attend the meeting ready to make decisions.

o Train and educate board members to attend meetings prepared and ready to make decisions.

Now, we know your board may not hold frequent meetings, or may not even be used to preparing for meetings, but we are certain that by following these simple steps your community will run effectively, decisions will be made wisely, and homeowners will be happy to see the Board and Management taking timely action to the items that concern them.

New FHA Guidelines and Approval Process for Community Associations

2011-01-10T17:47:00.000-05:00

On December 7^th, 2010 the Federal Housing Administration (FHA) announced the NEW expiration dates of their Condominium/Homeowners Associations Project Approvals and Re-Certifications. These new expiration dates will affect Community Associations and Unit Owners throughout the country.

It is recommended that all Community Associations wishing to obtain FHA Certification begin the lengthy application process as soon as possible.

In recent weeks we have received many questions about the FHA Certification process. A majority of the questions we receive have been regarding the length of time that it will take to get a community project approved by the FHA. We have also received a number of questions on the possible pros and cons to FHA Certification, as well as concerns on the differences between the FHA new project approval and the project re-certification process.

The FHA has set the following deadlines for community project approvals. Due to the large number of communities nationally, it is important to remember that time is of the essence in order to avoid the potential delays in application processing.

Initial Project Approval Date	New FHA Expiration Date
1972 - 1985	December 31, 2010
1986 – 1990	May 31, 2011
1991 - 1995	July 31, 2011
1996 – 2000	August 31, 2011
2001 - 2005	September 30, 2011

Although it may seem simple, a very common question we get asked is why go though the process and why get certified? The answer is quite simple. It is estimated that approximately 40% of all new loans will be insured by the FHA. The FHA has the most aggressive loan programs in the market and without them the owners of the properties within the association would be at an EXTREME disadvantage when it comes to selling and/or refinancing their homes. Not being FHA approved would obviously drive property values down in your neighborhood.

Community Board Members are encouraged to begin the approval or recertification process as early as possible, as it is still uncertain if any further extensions for project approvals will be granted.

Fortunately, we have been helping Condominium Association communities get FHA approvals since the new guidelines have been in effect. We’ve successfully helped many Associations obtain FHA Recertification or FHA New Project Approvals and we recommend that all Associations begin the process or recertification immediately.

Do not hesitate to contact us with any questions about these deadlines or the FHA application process. We look forward to the opportunity of getting your Community Association approved by the FHA.

8 Tips for Communicating with Your Community Association

2011-01-02T21:35:00.000-05:00

How you view a condominium or homeowners association is going to depend on what you have heard and what you believe. Some people think that community associations are the best form of residential living because the association is responsible to provide services that you would normally have to do yourself. On the contrary, some people believe that homeowner's associations are not a good idea because the people who make up the board and management have a reputation for being power hungry and that they usually do not care about the general upkeep of the property.

In order to assist you in communicating and dealing with the common misconceptions of community association living we’ve prepared our 8 Tips for Communicating with Your Community Association.

Tip #1:
You need to communicate with the board and management. If you do not communicate, you are never going to have a good relationship with them, nor will your opinion ever be heard. Never hesitate to ask questions or to question what the board is doing, but you do need to remember that in order for your opinion to be heard you must maintain a courteous and positive communication level.

Tip #2:
Get involved with the association and participate. In order to maintain a positive relationship with your association you are going to need to get involved with the board. This can be as simple as attending membership meetings and voting when necessary. You can also attend the monthly board meetings, join or form a committee, or even become a board member. There are many ways to get involved with your association which can help you maintain a positive relationship with the association and management.

Tip #3:
Never assume that the board or management does not care. It’s important to remember that the board and management will always consider any circumstances that affect property maintenance, violations, or anything else that can negatively affect the community. However, unfortunately, there are always matters out of their control that may be cause for delay. Additionally, the board and management may not always have a realistic understanding of the urgency of some items, therefore, it’s important that you maintain constant communication with them about what is going on so that they can work with you on the issue.

Tip #4:
In order to fully understand what the association is and what they do you need to take the time to learn about them. There are numerous things that you can do to learn about an associations including reading books, attending board meetings, and attending educational seminars. By learning about the associations, you will find out that although some can be power hungry, most associations work hard to make their community a great place to live.

Tip #5:
Always expect the best out of your association. Remember that the board is made up of your own neighbors, who want the best for their community. Since you are paying for the services you should expect the best, if things aren't going as expected make it a point to talk to your board or manager to see if things can be changed, but be prepared to provide specific issues and examples that can be addressed.

Tip #6:
If you have something that you want to take up with the board or management be sure to plan ahead. The reason for this is that time is needed to research and to respond to your requests and questions. By giving plenty of notice, they can provide you with the best answers and assistance.

Tip #7:
Learn to appreciate your board. The board members are there to help you resolve problems and to fix things for the best of the entire community. Board members do not get paid for their positions, they simply volunteer what time they have to serve the community.

Tip #8:
If you do not like how things are going then you need to do something to help change it. By running for a position on the board you can start making the changes that you feel are necessary. You can also begin to make your board or management aware of what you think is needed to make positive changes. In order to better serve the community, they are always welcoming feedback and input on what is going on throughout the community.

Steps to Take When Changing Management Companies - A Brief Look at How We Do It

2010-12-04T23:18:00.000-05:00

If your community is like most others, you will at some point be faced with the tough decision of changing management companies. A majority of our business comes from dissatisfied Board of Directors who are looking to take their communities management in a new direction. When that time comes, it is helpful to the community and the outgoing and incoming managers if the Association has taken the necessary steps to insure a smooth transition. We have substantive experience in handling these transitions and in this article we have detailed some necessary steps that all Boards should be sure to take when changing management companies.

Pursuant to the Florida Administrative Code, a Community Association Manager or management company is required to provide all original books, records, accounts, funds and all other property of the Association within 20 business days of such request or termination. This time frame gives the existing management company sufficient time to compile all of the records which it must provide to the Association.

Financial Records:

Perhaps of most importance during the transition process is the smooth turnover of the Association’s finances and official records. This is particularly true when talking about Associations where the management company accepts direct payment of assessments from the owners and where the management company performs the day to day banking and accounting for the Association.

Although it may be overwhelming, there are steps the Association can take to minimize the risk of an assessment check going missing, or a vendor not being paid in a timely manner. These types of situations are common when changing managers and can be avoided with some careful planning by the Board. Your incoming manager should be able to assist in providing assistance.

The Association should first arrange a specific and mutually agreed upon date for the turn over of financial records. The Association should avoid having two management companies maintaining two separate financial books and records. This should be separate and apart from the reconciliation of the final month’s accounting by the existing management company which should be provided to the Association on the date determined in the existing management contract, or a date agreed upon by the parties. The new management company will need the current year’s finances as early as possible to have their accounting system up and running by the date of the transfer of services.

A list of all Association vendors should also be made available to the new management company as soon as possible. This will insure that vendors are properly informed by the new management company of the change and helps avoid having any lost or misplaced invoices or bills during turn over. This process is important because if not handled correctly the Association could be subject to unnecessary late fees and charges from its vendors.

A list and current status of all collections files should be prepared prior to the transfer. The report should detail whether an account has been forwarded to counsel for collections or foreclosure efforts. Considering the financial state of many communities, particularly those looking for new management, it is imperative that any possible delay in the processing of delinquent accounts or collections matters be prevented.

Collection of Maintenance/Assessments:

Although, this may seem obvious, you’d be surprised how often it is overlooked. The first step the new management company should take is to send an introductory letter to all the members of the Association advising them of the change of management. This step should take place well before the start of new management. Association members must be advised where their current assessment payments should be sent and new coupon booklets, if any, should be distributed. This is critical or your community will not receive very many monthly assessment payments on the first month of management change. This can greatly affect your communities’ financial position and also risk the credibility of the Board among Association members, not to mention the credibility of the new management company.

Correspondence and Service of Process:

Arrangements must be made with the existing (prior) management company to make sure that they forward any correspondence they may receive for the Association to the new management company in a timely manner. Correspondence received by them should be forwarded to the Association, or picked up at their management office at least once a week during the first month after transfer. This will make sure that all correspondence is received, that bills do not go unpaid, and that the payments of any unit owners still sending their payment to the prior management company get processed.

The new management company should also update the Associations corporate record with the Department of Corporations and the Division of Condominiums to be certain that the existing (prior) management company is not listed as the Associations registered agent. If so, the new management company should submit a change of corporate record as soon as possible to be certain that the Association is made aware of any and all legal matters.

Other Official Records:

The transfer of the official records of the Association may also be a troublesome process when changing management. This is particularly so when an Association has had its existing (prior) manager for many years prior to the transfer. In those circumstances, the composition of the board of directors may have changed a number of times between the time in which the existing (prior) manager first began servicing the community and the time of the transfer to the new management company. In these instances it become difficult for the board of directors to determine what records were initially given to the manager to maintain, and what records the manager has been maintaining since he began servicing the community. It is also important to note that management companies usually do not always keep records in a uniform way, only making it more difficult to really know what they have and what they are expected to turn over.

The Florida Statutes, Chapters 718.111 and 720.303, attempt to facilitate the turn over of Association records by providing an official list of all of the records of the Association which must be maintained and/or kept for at least a period of seven (7) years. Even if your Association is not considering a change in management in the near future, it should always maintain a list based on the official records listed in Chapters 718.111 and 720.303, identifying where those records are kept, and to whom they have been entrusted, even if they have all been entrusted to the management company. The most difficult time for the Association to try to make this determination is during a transfer of control between management companies. This will lead to confusion, and possibly lost or missing records.

With an updated list of the Associations official records, the Association (or the new management company) should inventory the records provided by the existing (prior) management company at the end of their services. This inventory should be kept as part of the official records of the Association. Thereafter, should the Association wish to again change its management, an inventory will exist of all the records the manager received. The official records inventory list benefits both the Association and the management company by providing peace of mind for all.

Conclusion:

Ultimately, should problems arise in the transfer of management services the Association should always consult its legal counsel for advice. However, a professional management company with experience, specialization, and a proven system for the transfer and turn over of management companies should be able to provide invaluable input and assurance during this important time for the Association and the Board.

Should your Association be considering (or is in the middle of) a transfer of management companies, please do not hesitate to contact us so that we can assist you by answering any questions or concerns you may have.

A Condo Association’s Board Responsibilities Defined

2010-10-27T08:56:00.000-04:00

A condo association is a miniature form of representative government. The board members are elected by the condominium unit owners (the membership) to run the association and to manage the condominium property. In most cases the board will need to hire a professionally licensed manager to assist in managing the Associations day to day activities. Condominium unit owners rely on the board to resolve community problems ranging from building maintenance to unruly residents.

Rules and Covenants

The first priority for a condo board of directors is to carry out its duties in accordance with state law and the governing documents of the condo association. Directors are also responsible for enforcing the governing documents, the community rules, and doing so uniformly and fairly, including obeying the same rules themselves. This responsibility requires the directors to review complaints, reports from management, and decide if the rules have been violated. The Board (or a committee appointed by the Board) may choose to impose fines on owners who have broken the rules. In the course of business, it may also become necessary to change or revise the association rules, doing so is also the board's responsibility. Beyond the requirements specifically written into the law and the governing documents, directors also have a fiduciary responsibility to the Association and its membership. The board is obligated to always act in the best interests of the association.

Maintenance

Condo owners handle repairs on their own units, but it's the board's job to fix problems with the common areas, this includes the building's exterior, the hallways and amenities such as a pool or tennis court. The board must arrange for regular inspections and maintenance of such elements and, if major repairs or upgrades are necessary, the directors must set priorities for which problem needs fixing first. In most cases, the board will need to put projects out to bid, at which time the directors must review the bids and select the best one. Many associations hire a manager to deal with such issues.

Finance

It's up to the board of directors to handle the condo association's money. Every member of an association is assessed a fee which funds the associations’ day to day operations, such as maintenance, repairs, and administration. It's the directors' job to review and approve the annual budget and reserve schedule for the association. The directors must also take action against owners who don't pay their portion of the assessments; if an owner continues to refuse, the directors have an obligation to the other association members to take legal action against the non-paying unit owner.

As you can see, being on the board of directors of any condominium association takes a lot of hard work, dedication, and responsibility. The hiring of a professional manager will assist your board with many of the day to day activities of the association.

The anatomy of a Great Manager

2010-09-05T21:34:00.000-04:00

All communities and Board Members want a “great manager”, because they know that a Community Association Manager can make or break an entire community. However, what differentiates a bad manager from an average manager? And what seperates an average manager from a great manager? What does it mean to be great in Community Association Management?
Over the years, in speaking with Board Members and industry leaders we’ve identified key areas and traits that make a great manager. The below should act as a Code of Conduct for any great manager.

Great managers understand the power of effective communication
Great managers are effective communicators
Great managers present themselves professionally
Great managers are organized
Great managers follow through, always
Great managers do not procrastinate
Great managers never give information they aren’t sure of, or hearsay
Great managers understand the value of their relationship with vendors
Great managers admit mistakes, take responsibility, and then fix them
Great managers maintain professional detachment
Great managers stay current with their industry and with business in general
Great managers deal with change well
Great managers have a sense of humor
Great managers value their integrity and creditability above all

Top 10 Things to Consider When Hiring a Property Management Company for Your Community.

2010-08-24T18:05:00.000-04:00

1) Licensing: Is the property management company licensed in the State of Florida? Unfortunately, many management companies do not have the necessary licensing required by the State and say they do.

2) References: Has the property management company you are thinking of hiring provided you with references? Call current clients and ask – “do they have a good response time, do they provide timely reports, do they provide the service they promised?”

3) Experience: What types of properties do they manage? Are they specialized in any aspect of the industry, or do they do it all (sales, rentals, mortgages, etc.)? They may not be focused or attentive to the services you need.

4) Services: What property management services do they provide? 24 hour emergency service? Collections? Monthly reports? Financial Management? Attendance at all meetings?

5) Response time: What kind of response time can they guarantee, during business hours and emergencies? Do they answer their phones 24 hours a day? Are their emails answered throughout the day?

6) Fees: What kind of fee structure do they have in place? Are fees all inclusive? Do they charge for office supplies? What tracking system is in place for additional fees? Do they nickel and dime you? Sometimes the lower priced companies have add-ons or kickbacks. Ask.

7) Certifications: What organizations are they a part of? Is the property manager an active member of any of the national property management associations, such as CAI (Community Association Institute) or any local chambers of commerce or business organizations?

8) Delinquent Owners: How will delinquent owners’ accounts be handled? Will they charge late fees? Will they send out monthly late notices and demand letters? Do they have a separate Accounts Receivables Department? Will they maintain an open line of communication with the Associations attorney if needed?

9) Violations: How will violations be handled? Will they send violation notices? Will they impose fines? Will digital pictures be taken as evidence? Will they maintain an open line of communication with the Associations attorney if needed?

10) Property Inspections: How often will they personally inspect your property? Weekly? Quarterly? Do they have trained and licensed managers visiting their properties? This can be very important and if not attended to frequently can lead to many disgruntled residents.

The information above was prepared by Marc Rodriguez, a Licensed Community Association Manager and President of Four Points Property Management, Inc., a property management firm specializing in community association management and consulting services throughout South Florida.

This publication was created as a guide to assist members of the Board of Directors when choosing a management company for their community. Mr. Rodriguez can be contacted at mrodriguez@fourpointsproperty.com or you can visit www.FourPointsProperty.com for more information about the company.

Governing Documents

2010-08-20T17:27:00.000-04:00

We are frequently asked by Boards which laws or rules govern Associations. Many Board Members are unaware that there is a hierarchy of what laws and rules govern their community.

In this hierarchy, federal and state laws always take priority. However, every community association also has governing documents that are meant to enhance the federal and state laws and are more specific about how the community is to be run.

Below is a list of governing documents most community associations have. The documents have been listed in order of the one with the most authority to the one with the least authority.

The primary document is often called a “Declaration” for Condominium Associations or “CC&Rs” (Covenants, Conditions, and Restrictions) for Homeowners Associations. The Declaration is kind of like an operating agreement for a business; it lists the details of the property included in the development and contains restrictions on use of the individual units or homes. It specifies what authority the association has and how it can or must do certain things, like maintain the common areas. It also defines the rights and obligations of the individual owners and the Association, like paying their maintenance fees.

The next document in the hierarchy of Association governance is the Bylaws. The Bylaws are intended to cover the procedural aspects of how an association is run. For instance, this document will include information on electing a Board of Directors, association meetings, voting procedures, budgeting procedures and guidelines, and much more. The Bylaws should be your property manager’s number one reference tool.

The Rules and Regulations are the next set of governing documents. Every Community Association should have a set of Rules and Regulations. Although some associations do not, we recommend that if your association does not have rules and regulations that the board should consider adopting a set of rules and regulations for living in your community. Rules and Regulations are usually adopted by the Board of Directors and are meant as a management tool to further clarify the rights and obligations of owners and their guests.

The final governing documents, which not every community association has is the Boards Policies and Resolutions. These are voted on by the Board of Directors and are meant to keep consistency among different Boards and management companies through the years. There may also be Amendments to your association’s Declaration or CC&Rs, which can change the terms of the original document.

It’s important to remember that the Declaration is above everything else besides the federal, state, or city laws, so any provisions in your Bylaws, Rules and Regulations, or other documents that conflict with the declaration are probably invalid.

Understanding the contents of your association’s governing documents is an important step towards being an informed Board Member. All unit owners should have received a copy of all governing documents for the association at the time of purchase. If you have misplaced them, please contact our office and request a copy for your records.

If you have any questions or comments, please feel free to leave a comment or contact us.

The Special Assessment and Reserve Account Connection

2010-08-15T12:10:00.000-04:00

Tim (fictional) lives in a 30+ year old association. Tim pays his assessments on time each and every month. The association needs to make a major renovation to repair exposed rebar, stucco repairs, and painting. The project will cost the association approximately $375,000 dollars. The association does not have an adequately funded reserve account and a special assessment is necessary. Each unit owner will be assessed between $8,000 and $10,000. Tim cannot afford the special assessment and the association is considering the foreclosure of Tim’s unit.

Does this hypothetical scenario sound familiar? Unfortunately, many older associations are faced with this issue. Special assessments are commonly used to pay for expenses outside of the budget, which can create hardships for both unit owners and associations.

The Florida Legislature has attempted to provide a solution to this issue by requiring Association to fund a reserve account and suggesting that Reserve Studies be performed regularly.

Has your association ever had a reserve study prepared and then adequately funded the association reserve account pursuant to the reserve study recommendations? If so, congratulations! If not, how should your association plan ahead for future repair and replacement projects without causing an additional burden to unit owners by having to adopt significant special assessments?

Step #1, hire a professional to conduct a reserve study. If you are lucky enough to have had a study prepared in recent years, have it updated to reflect the properties current condition. A properly completed reserve study will provide your association estimates and information about the remaining life of the physical components the association is required to maintain and the estimated replacement costs associated with the replacement of and major repairs to those components. A reserve study will significantly help your association in properly budgeting for future repairs so that adequate reserves can be funded, as well as reflect an accurate picture to unit owners of the associations condition, both physically and financially.

Step #2, understand your budget. An association that properly plans in advance should only need to make small increases to its regular monthly assessments in order to properly fund reserves. While the majority of unit owners will not be happy about increases to assessments, homeowners should be educated about the benefits of reserve funding and the possibility of a significant special assessment in the future for major repairs should a reserve fund not be maintained.

Step #3, your association may be able to obtain a loan to cover some or all of the costs associated with a repair or improvement. Although lending guidelines are stricter now than they have been in the past, this option is still available as long as your delinquencies are reasonable and below 7%. In order to obtain an association loan the association/management will need to provide the bank with important information, such as financials, cost estimates for the anticipated project, and collateral (an assignment of the right to future assessments).

Your association should stay ahead of the game and be able to fund significant repairs and replacement projects without the need for special assessments by updating its reserve study regularly, keeping delinquencies low, and creating a plan of attack for raising reserve funds.

We have successfully helped dozens of Associations by performing Reserve Studies, implementing a reserve funding policy, maintaining an adequately funded reserve account, and developing a plan of action for major repairs and necessary funding. For questions regarding this article or for assistance with creating a Reserve Study, please contact us at 305-403-0575 or send us an e-mail to info@fourpointsproperty.com.

"How much money should we have in Reserves?"

2010-08-09T20:29:00.000-04:00

A common question I am asked frequently is “how much money should we have in our condo reserve"? Well, according to the Florida Statutes, the amount required is what is considered to be “adequate”. Obviously this is a very vague term.

It's important to understand that there is absolutely no way to come up with a one system fits all formula for establishing reserves. In my opinion the more money available in the condo reserve accounts the better. Condo Associations should include a line item for future replacement cost of common area items in their monthly budget each and every month. These funds should be maintained in a special reserve account. The specific amount set aside each month is determined by the size of the property and the amount of common areas/elements that will need attention in the future.

The best way to determine this is to have a Reserve Study Specialist or Professional Engineer provide you with a Reserve Study. This Reserve Study will determine the expected useful life of all your HOA or Condo Association common area items. The A/C system, roof, painting, structure, lighting, interior painting, pool, gates, etc. are all included in this Reserve Study. The Reserve Study preparer will then apply future expected costs to each element and determine what needs to be put aside each year to meet these goals for you Association.

"How much should you have in condo reserves?" Your Association may have enough money in a condo reserve account if it can address a condo association common area issue without having to implement a Special Assessment. This is a simple definition of what "adequate" reserves really mean.

We always highly recommend that Associations have a Reserve Study completed at least every 5 years. We can assist your Association in having this important study completed. An accurate Reserve Study can save your community from facing large Special Assessments or rushing around to obtain a high interest loan for major repairs. Contact us to find out how a Reserve Study can help your Association.

Check out our NEW Website!!

2010-07-17T11:45:00.000-04:00

Our new Website is finally up!! 'Important Announcement from Four Points Property Management'

2010 Legislative Update

2010-06-28T12:55:00.000-04:00

We have some exciting news to share with you and your community members. This years Legislative Session turned out to be a very productive session that we believe has produced many positive changes to the Florida Statutes that govern Community Associations.

Earlier this year we provided a brief summary of the many changes being considered by Legislators in Tallahassee. Below we are happy to provide you with a summary of the Legislative changes that have fortunately (and finally) been signed into Law which will take effect July 1st, 2010. Please note that we have only summarized the changes we feel will be most valuable to our clients, not all changes or amendments have been included below.

For over a month we have been reviewing the 103 page Bill (SB 1196), as well as held meetings with Association Attorneys to familiarize ourselves as best as possible with the new Laws in order to best assist our client communities to take advantage of the new resources available to them.

Common Elements:
1. Common elements that serve only one (1) unit may be reclassified as Limited Common Elements by a vote of the membership to amend the Declaration.

Official Records:
1. An Association is clearly not responsible for the misuse of information provided to an owner or representative of an owner in compliance for their request for a records inspection.

2. Any person who intentionally harms, destroys, or who fails to create or maintain the Associations accounting records with the intent to cause harm to the Association, will be subject to a Civil Penalty.

3. The following records are not accessible to owners: personnel records of association employees (including payroll), e-mail addresses, telephone numbers, website passwords or property access codes, accounting software or backups.

Elections and Director Eligibility:
1. Co-owners are now permitted to serve on the Board where such co-owners own more then one (1) unit, or where there are not enough eligible candidates to fill the Board vacancies.

2. The director delinquency restriction has been expanded to include any director delinquent more than ninety (90) days in the payment of ANY monetary obligation. This includes fines, fees, regular and special assessments. Such owner will not be permitted to serve on the Board.

3. Each newly elected or appointed director must certify in writing within ninety (90) days of being elected/appointed that he or she has read the governing documents and that they will work to uphold those documents to the best of his or her ability. In lieu of providing such written certification, a director may submit a certificate of satisfactory completion of the educational curriculum provided by the Division. A Director not completing this certification will be suspended from service.

Collection of Assessments:
1. The liability of a Lender (First Mortgagee) that acquires title to a unit through foreclosure has increased from six (6) months to twelve (12) months of unpaid assessments. However, it remains constant that a Lender is only responsible for the lesser of twelve (12) months or one (1%) percent of the mortgage debt. We are of the opinion that most, if not all mortgage foreclosure cases will now receive the one (1%) percent value as opposed to the new twelve (12) month amendment.

2. This change will take effect on all foreclosed units in which a lender acquires title after July 1st, 2010.

Collection of Rents:
1. If a unit is occupied by a tenant and the unit owner is delinquent in paying any monetary obligation to the Association, the Association may make a written demand that the tenant pay the future monetary obligations related to the unit to the Association, and the tenant must make such payment until the Association releases the tenant.

2. A tenant who acts in good faith in response to the Association's request will be immune from any legal claim from the unit owner (i.e. eviction, etc).

3. The tenant, like a unit owner, must be notified of any increases in monetary obligations.

4. The unit owner shall provide his or her tenant a credit for any rents or amounts paid directly to the Association.

5. Should the tenant fail to act in response to the Associations demand for payment, the Association may file for eviction under the Florida Residential Landlord and Tenant Act (FRLTA). However, the Association is in no way considered a Landlord under the FRLTA and has no obligations there under.

6. The tenant does not have any rights of a unit owner in any election or vote, and does not have any right to examine the books or records of the Association.

7. This new law does not supersede the appointment by any court of a Receiver.

Budgets and Financial Reporting:
1. The Division of Florida Condominiums, Timeshares, and Mobile Homes shall adopt a set of revised rules outlining the uniform accounting principles and the standards to be used by all Associations.

2. The revised rules must include standards for presenting a summary of Association reserves, including an estimate on the amount of reserves necessary to fully fund annual reserves per each reserve item.

3. A Condominium Association operating fewer than seventy five (75) units shall prepare a report of cash receipts and expenditures, as opposed to financial statements.

Fining:
1. Previously Associations were only able to issue fines if their declarations or by-laws granted the Association such right. The new statutory amendment now grants all Associations the right to issue fines pursuant to statute, regardless of what the declaration may state.

2. An Association may only levy a fine for failure to comply with provisions in the governing documents.

3. Previously the Condominium Act stated that fines should be levied "against a unit". The new changes expand the Associations fining ability by permitting fines to be levied against any individual that is authorized to be on the property and who fails to comply with the provisions of the governing documents, this shall include owners, invitees, licensees, and occupants.

4. Fines still may not exceed $100.00 per violation for a maximum of 10 days. Additionally, fines can only be properly levied at a properly noticed hearing of a non-board member committee of unit owners.

5. Unfortunately, non-payment of fines may not be collected through lien or foreclosure. Therefore, because collecting on a delinquent fine is somewhat difficult, this enforcement ability is not always practical.

Suspension of Use Rights:
1. Condominium Associations may now, in limited cases, suspend the use rights of unit owners, their invitees, licensees, and occupants, who are more than ninety (90) days in the payment of ANY monetary obligation.

2. The use rights that can be suspended include the right to use common areas, facilities, and other Association property. Use rights shall not be suspended for Limited Common Elements, common elements needed for unit access, parking spaces, elevators, or utility services provided to the unit. The statute is not clear as to whether cable and other bulk services are defined as "utilities", however, we believe that they may be, but this is yet to be determined.

3. A unit owners' voting rights may also be suspended, however, their unit shall still count towards the necessary quorum requirements for any meeting or amendment.

4. A use right suspension ends upon payment in full of all monetary obligations.

Property Insurance Requirements:
1. Unit owners are still responsible for insuring their personal property within the boundaries of their unit, including their limited common elements, and their floors, walls, ceiling coverings, electrical fixtures, appliances, water heaters, cabinets, window treatments, and all other items which are located within the boundaries of their unit and serve only such unit.

2. Condominium Associations are no longer required to obtain evidence of a unit owner’s insurance coverage for their personal property located within the unit.

3. Condominium Associations are no longer authorized to force place coverage on behalf of a unit owner for failure to provide proper proof of insurance.

4. Unit owners’ insurance policies are no longer required to name the Association as an additional insured and a loss payee. As such, unit owners are no longer required to obtain the Associations endorsement for payment they receive on an insurance claim on their policy.

Fire Prevention Code:
1. A condominium that is less than four (4) stories in height and has an exterior corridor providing a means of egress is exempt from the requirement to install a manual fire alarm system under the Life Safety Code adopted under the Florida Fire Prevention Code.

2. A Condominium Association may now vote to waive the requirement of retrofitting the common areas in a high rise building with a fire sprinkler system by recording such vote in the public records of the county. A high rise building is defined as a building greater than seventy five (75) feet in height.

3. Shall an Association not be able to obtain the necessary votes to waive the fire sprinkler retrofitting requirement; the deadline for retrofitting completion was extended to 2019.

Elevator Safety Code:
1. The Legislature has created a moratorium on the enforcement of amendments to the Safety Code for Existing Elevators and Escalators (ASME A17.1 and A17.3) requiring modifications to elevators in condominiums. Such retrofitting requirements cannot be enforce for five (5) years. However, shall a building require an elevator replacement or major modifications before the expiration of the five (5) year moratorium the building must meet the Elevator Modification requirements.

2. A Condominium Association may waive the requirement for installing alternate power sources for elevators upon an affirmative vote of a majority of the membership.

Distressed Condominium Relief Act:
1. In response to the downturn in the condominium market affecting the economy, developers, lenders, unit owners, and associations, the Legislature created the Distressed Condominium Relief Act (DCRA).

2. The DCRA establishes that a bulk buyer purchasing seven (7) units or more within a condominium association shall receive an assignment of some or all of the developers rights except those related to warranties, obligations to fund reserves, auditing requirements, and liability to issues or claims made prior to their assignment.

3. The DCRA creates a detailed process for the assignment of units within a condominium to a bulk buyer and the management of such association thereof.

Does Your Association Suffer From Unruly Board Meetings?

2010-04-03T00:06:00.000-04:00

If you're lucky, your board meetings are calm, civilized, and organized. However, as you may know, that is not always the case. During association meetings emotions typically run high, sometimes these emotions are caused by unpopular board decisions, increased assessments, or violation compliance letters sent to an angry owner. Although the conflict and unrest might be unavoidable, if the board members and management come to the board meetings prepared it will be possible to run an unruly meeting even if angry owners attend.

One of the best tools any association can use to control unruly meetings is to create a "meeting conduct" policy. This policy should specify when and for how long association members are permitted to speak on a particular subject, require courtesy to others present when speaking, and permit the board to require attendees to leave if he/she gets out of order or fails to follow the approved policy.

Below we have provided some additional tools and policies your association can implement to help the board control unruly meetings:

If the board or management are anticipating an intense association matter to be discussed at a meeting, the board should try to calm association members about the specific matter prior to the meeting by discussing concerns with the individuals prior to the meeting.
Require owners who wish to speak on a particular matter to sign up prior to the meeting, rather than having them raise their hands during the meeting.
Set a specific time limit for any association member desiring to speak and allow them to only speak on only one particular topic at a time. This will keep the meeting in order and focused.
Appoint a committee, specific board member or management to investigate certain issues raised by association members and report back to the board.
If necessary, have the association’s attorney present when legal or sensitive matters are being addressed, this can help control emotions.

While many associations have “meeting conduct” policies and rules for their board meetings as described above, it is the responsibility of the board to keep control of the meeting, follow the meeting agenda properly, and enforce the conduct policy as necessary.

The board must be organized and properly prepared for their meetings. The board and manager should always remain composed and calm throughout the meeting. Should the board be faced with a difficult owner, the owner should first be warned and reminded of the associations meeting conduct policy. If the difficult owner refuses to come to order the board should issue the disruptive owner a warning or ask him/her to leave the meeting. Although, we suggest that this be a last resort. An alternative to asking the disruptive person to leave the meeting is for the board to adjourn the meeting and reconvene again when all emotions have cooled.

Can Associations Restrict Access to Census Workers??

2010-03-22T16:46:00.000-04:00

Once again, the government is ramping up efforts to tally the country’s population. With the 2010 census underway, the U.S. Census Bureau is asking Condo Associations and HOA's to help them reach as many residents as possible. Since participation in the census is a federal obligation for all U.S. Residents, associations need to determine how census workers will gain access, especially in secured communities.

The U.S. Census Bureau has made it well known that their Census workers are given carte blanche when it comes to gaining access and possibly gaining repeated access in order to fully complete their responsibilities. Therefore, Associations cannot deny access to any Census worker who has shown proper identification.

In order to comply with federal regulations, make sure your property manager or any security staff understand that access must be granted to Census workers. That includes allowing them access to secured buildings and any apartments they request. They are allowed to knock on doors, ring doorbells, use call boxes, etc. Also, there may be times when the Census workers must return to the building to attempt resident contact again. If Census workers cannot locate occupants, it is within their right to ask property managers and associations for occupancy information and resident contact information. While you’re not expected to supply the information immediately, you should provide the requested information within a reasonable amount of time.

But how do you know if the census worker is legitimate? All census workers will be issued a census badge, which property managers may ask to see. When in doubt, contact the nearest Regional Census Center to verify a census workers status.

Associations should expect to see Census workers after the April 1st deadline, in which all residents are required to have returned their mailed questionnaires. Expected in-person visits are scheduled from May through August of this year.

25 Common Board Member Mistakes

2010-03-22T16:15:00.000-04:00

Board members are subject to many demands and expectations. Serving on the board of an association can be a rewarding experience. The majority of board members have strong ideas of what being on a board is all about. Capturing the board's eagerness, enthusiasm, and will to govern for the common good of the community can be accomplished in conjunction with the manager's experience, knowledge, and guidance. Managers are licensed professionals and have specific knowledge that is required of them to maintain their license and a code of ethics that must be followed.

To be effective, managers need the cooperation of all board members. Experienced managers are knowledgeable and educated. Once trust and confidence has been established, the board of directors should consent to allow their manager to manage and provide guidance in leading them in the right direction. Here are 25 common mistakes that boards make:

Failure read and understand their governing documents, rules and regulations, and State Statutes.
Failure to be prepared for meetings and follow the meeting agenda.
Selective enforcement of the rules and regulations or the governing documents -- playing favorites.
Failure to conduct open meetings and elections.
Failure to maintain confidentiality or generating gossip.
Ignoring responsibilities to fulfill fiduciary duties in maintaining the property - - overlooking needed repairs due to costs.
Failure to hire experts and professionals in their respective fields - - engineers, managers, attorneys, etc.
Being emotional and hindering their capacity to make business decisions.
Being swayed by others when making business decisions.
Being swayed by others and not voting their conscience.
Micromanaging and abusing their power and authority.
Failure to disclose personal interests and considering taking kickbacks and/or hireing someone that creates a conflict of interest that may involve self-dealing.
Harassing community members and slandering them.
Failure to clearly define the roles and responsibilities of the board of directors, committee members, and management and taking action contrary to the board's decisions or acting unilaterally.
Failure to obtain two signatures on checks and contracts.
Not taking the time to read and understand the financials and budget, and not asking questions about them.
Failure to follow a consistent collection policy - - playing favorites.
Failure to act professionally, courteously, and respectfully at meetings.
Failure to outline and summarize their expectations and establish that everyone is on the same page.
Self-serving interests -- rather than making decisions to serve the community as a whole, decisions are made in favor of themselves personally, breaching community trust.
Failure to post notices, newsletters, and memos, communicating the board's activities.
Failure to review and evaluate contracts and decide how and when the various maintenance tasks will be performed.
Failure to plan, focus, and follow through.
Failure to make timely decisions.
Attempts to institute new policies and ground rules without doing their homework.

Board members are usually elected because they are movers and shakers. They have the ability to get things done. The board should expand upon defining their overall goals of the association and communicate them to the manager. Very often boards micromange because they think that is what they should be doing.

The board needs to have a clear idea of their role in the community. Management of day-to-day activities is the responsibility of management. Boards are to lead and serve in the capacity as an advisory body. As managers, we can navigate and guide the board to focus on ensuring that the community will function in a positive direction, providing a safe and healthy community and follow the path and mission that the board will lead.

Nevertheless, everyone needs a clear understanding of what is expected of them and must have concise expectations in order to measure performance. A competent manager knows the ropes and need for improvements. Boards spend an exorbitant amount of time discussing possible scenarios and solutions. Managers have the ability to make recommendations and save precious time in fully addressing the issues.

Therefore, good communication will aid the process. Sharing information on the issues and discussing issues with the members gives them a sense of purpose in the operation of the association. Board members that rely on seasoned managers can effectively approach a variety of issues and deal with the challenges of managing a successful community association. Listening is the most essential tool for all.

The purpose of the Board is to represent the interests of the owners as a whole, as these interests relate to the property. They are responsible for making timely decisions on behalf of the owners. Being a board member is not a casual undertaking. By working closely and proactively with management, the board can spend its time on areas that can move the community forward, enhancing results and solutions. Mistakes will occur, but with proper guidance and the hiring of experts in their respective fields, the board can reduce the number of mistakes and develop a full understanding of what it takes to manage the community.

I hope that these suggestions will offer a positive and satisfying direction in which the community can work together for the best interests of the association.

Taken from http://www.caionline.org/

Miami Beach Condo Association Has Very Creative Idea for Project Funding.

2010-03-14T12:38:00.000-04:00

A Miami Beach Condominium who has been unable to obtain a loan or grant for building restoration, and with little hope of gaining funds any other way, looks to Corporate America for assistance to restore their beautiful building, in an imaginative way.

Located on busy Collins Avenue and built in 1940 as the Lord Baltimore Hotel, this beautiful example of art deco architecture has undergone a long history. During World War II the building was used to house troops, and later become "La Playa" apartment building in the 1960's. In 2003 at the peak of the South Beach real estate boom it was converted to a Condominium Association.

Soon thereafter, in 2005 the City of Miami Beach issued the Association a violation to repair exterior concrete throughout the building. The Board passed a special assessment on the 32 units, and work began. Once the selected contractor had commenced work, additional extensive damage was discovered which had been unanticipated. The Board passed a second special assessment, and the work continued. However, in December 2008 the Associations funds ran out, the contractor ceased work, and the building was left looking like a gray shadow of its former glory.

The Board of Directors, unable to get a loan or grant, and with little hope of gaining funds from another special assessment, decided that the only way to get this project completed was to seek assistance from a corporation

The Board of Directors, unable to get a loan or grant, and with little hope of gaining funds from another special assessment, decided that the only way to get this project completed was to seek assistance from a corporation willing to fund the project, paying off the debt to the contractor, and completing the job.This is estimated to cost close to $250,000. "With its prime location, the building would be a great space to wrap with advertising (subject to city approval) in return for the funds and it would be great PR as a community project for any company willing to take up this unique opportunity. The tower on the north east corner of the building would make the perfect setting for a beverage company to advertise, " says Anthony Parker, President of the Board. "I love this neighborhood, this is my home and it's just such a shame that we can't get it back in the shape it should be; I worry constantly that we will lose it all if we can't get the funding to fix this."

He advised that the Board has considered several creative ideas and are currently willing to rename the building, wrap the building with advertising, or do whatever else it takes to get this project completed and their beautiful building back to the South Beach gem it once was.

For more information or to assist this community please contact Anthony Parker at 305-534-1212 or antparker@msn.com

Eliminate Flood Insurance Premiums for your Community

2010-03-12T21:14:00.000-05:00

Don't you wish that you could eliminate Flood Insurance premiums for your community, forever? Did you ever think that this could be possible? We know just how to do it.. Read the following link to learn how, and contact us so we can help you today!

'Eliminate your Communities requirement for Flood Insurance'

8 Tips For A Successful Board Meeting

2010-03-03T15:41:00.000-05:00

To ensure that your Board's meetings are efficient and effective, consider the following Board Meeting tips:

1. An agenda is developed for the meeting and provided to all board members and management before the meeting so that they know which topics are going to be considered and they can come prepared.

2. Minutes of the last meeting are distributed in advance so that they can be reviewed before the members come to the meeting. Any changes or corrections that have to be made can occur at the meeting.

3. A moderate degree of formality must be used in conducting the meeting. Certain rules for discussion are defined. Everyone's expectations regarding decision making are agreed upon and understood.

4. Principles of good communication are practiced. These principles include; only one person may speak at a time. No interrupting. No ridiculing another person's point of view. If it seems that there is another, unspoken meaning behind the words being used, it is the board's job to work with the speaker to identify the message.

5. Set time limits. For example, the meeting will start at 7:00 p.m. and adjourn at 8:00 p.m. Set a specific time limit for each particular agenda item (example: no more than 10 minutes will be spent on the financial report). If board members wish to continue beyond the agreed upon time limit, there should be a procedure for approval to continue the discussion.

6. The chair (usually the President or Manager) must encourage free discussion of the topic being considered, to keep the discussion moving, and to identify issues relating to the topic. It is also the chair's job to define the decisions that are made. The chair must always remember that the board members have been elected to govern the association, not just to discuss it.

7. Adjourn the meeting on time.

8. Follow up. There always will be action items that require attention from the manager or from specific board members. See that the follow-up is accomplished before the next meeting.

If you follow these guidelines you will spend less time in your meeting. You will accomplish more. And you may find more qualified owners willing to participate and assist the board of directors.

Law Gives Tenants Rights During Foreclosure - News Story - WFTV Orlando

2010-03-03T13:50:00.000-05:00

Some of the biggest victims of foreclosures throughout Florida are not the homeowners, but the tenants living and renting the homes from the homeowners facing foreclosure. Florida, unlike other states, does not currently have any laws that protect the rights of renters in a foreclosure action, but a new federal law may provide these renters and their families some protection.

Read more about this and how it can affect your Community Association below...

Law Gives Tenants Rights During Foreclosure - News Story - WFTV Orlando

Why your lawyer won't take or return your phone calls - top 10 reasons

2010-03-03T13:26:00.000-05:00

We found this to be a great "Top 10 List". Its a great report we wanted to share.

Why your lawyer won't take or return your phone calls - top 10 reasons

Can the Association check credit scores for prospective owners and tenants?

2010-02-09T14:44:00.000-05:00

It is not surprising in today's economy that more and more boards are asking if they can check credit scores to determine whether or not a potential purchaser or potential renter in their community has the financial resources to meet their financial obligations to the community after moving in.

As with any other restriction or board action, the first step is to determine the source of such authority and whether it is statutory or documentary (Florida Statutes or Condo Docs). The Florida Statutes do not allow the Board the right to check credit scores for potential purchasers and renters. We must then look to an association's governing documents to determine if such authority is allowed to the board.

Let's take the best case scenario (for a board wishing to do this) that the association's original recorded governing documents contained the right to check credit scores. The board in this situation would still need to obtain the consent of the potential purchaser or renter to check his or her credit, since any time a credit inquiry is made, the persons score is affected slightly. A board that makes such an inquiry without first advising the subject that such action will be taken and getting consent to do so exposes itself to great liability. Most boards and management companies choose to include a form along with the screening application that must be signed by the applicant acknowledging and consenting to a credit check.

Even if all of the above is properly handled a board still has a complicated issue with which to contend when the credit report comes back negative. First, is a low score really indicative of the person's current financial situation or is it the result of a life event such as a job loss, divorce, or illness? Moreover, some people fail to build up high credit scores because they don't like credit! These are the folks who don't have 10 credit cards, don't demand high limits on the ones they have and pay for most things in cash. This might actually be a desirable resident!

If the low credit score is truly indicative of a person who will be unlikely to meet their financial obligations after moving in, it is essential to speak with your association attorney to ensure that the association's governing documents allow you to reject an application based solely on such information found on a credit check. To add further, even if the governing documents allow for such action by the Board it does not always mean that a court will uphold it in the event of a challenge. A knowledgeable community association attorney can walk you through this and be sure to limit the Associations and Board Members liability.

Now, if the Board is considering an application for purchase, you should take into consideration that the lending institution (mortgage company or bank) will more than likely have already done a very thorough credit history check on the prospect, probably even more thorough than any the Association will have done.

One last thing you should think about when pondering whether or not it is necessary or even desirable to check credit scores for potential new association residents: how many of your long-term residents' would be disapproved if you checked their credit scores today!?

Excerpts taken from Donna Berger, Esq.

2010 Census: Distinguishing Census Workers from Con Artists

2010-02-04T17:37:00.000-05:00

The first phase of the 2010 U.S. Census is under way, with workers verifying the addresses of households across the country. Eventually, more than 140,000 U.S. Census workers will count every person in the United States and will gather information about every person living at each address including name, age, gender, race, and other relevant data.

The big question from many of you is -- how do you tell the difference between a U.S. Census worker and a con artist? So below are some recommendations from the Better Business Bureau and law enforcement across the country.

If a U.S. Census worker knocks on your door, they will have a badge, a handheld device, a Census Bureau canvas bag, and a confidentiality notice. Ask to see their identification and their badge before answering their questions.

However, you should not invite anyone into your home. Do not give your Social Security number, credit card or banking information to anyone, even if they claim they need it for the census.

While the Census Bureau might ask for basic financial information, such as a salary range, don't give them anything pertaining to your financial situation. Also, they should not be asking for any donations, so don't give them money.

If they start with any pressure or you are not comfortable with the questions, please close the door and call the police. Also be advised that according to the Census, they will not be using anyone with the community group ACORN. If a worker says they are with ACORN, feel free to close the door and report it to the police.

Also, census workers will NOT contact you by e-mail. Do not respond to anyone claiming to be with the U.S. Census by e-mail. Use the ``delete'' key!

Keep in mind that you will not receive a 2010 U.S. Census form until March of 2010. No one will come to your door if you complete the form and mail it back to the 2010 U.S. Census office on or before April 1. If you did not complete the form for your address, then you will be contacted by a worker.

The Census is extremely important. That is how our State and County gets money from the federal government, so I encourage everyone to participate. Lord knows this state and county are disasters when it comes to proper funding for many services we need. So please do your best, but also be totally aware and cautious so as not to become a victim of fraud or identity theft.

Again, when in doubt, please call police.

Carmen Caldwell, for The Miami Herald. January 17, 2010

Naples residents and leaders sound the alarm over cost of condo sprinkler system retrofit..

2010-02-04T13:16:00.000-05:00

Naples homeowners aren’t happy about the potentially staggering costs associated with complying with the Florida Fire Prevention Code.

The Naples City Council this week discussed the cost associated with complying with the recently revised code. The discussion came about a month before City Council is scheduled to sit down with representatives from the state fire marshal’s office to discuss a state-mandated sprinkler system retrofit. The retrofit must be done by Dec. 30, 2014. But Monday’s discussion had less to do with the retrofit and more to do with code violations that have been popping up in low-, mid- and high-rise condominium complexes in the past few months.

Fire Chief Stephen McInerny has said that the city began inspecting multifamily residences back in June. Those inspections, he said at the time, turned up code violations that had been in place for a while. Those condominiums now need to get in compliance, McInerny said, something that could come at a high cost.

In a memo to City Council members, McInerny outlined the potential costs to condominiums for different code violations. McInery said the pricing — which came directly from fire alarm companies — varied, and he didn’t have an estimate for how much residents will have to pay to get their units in compliance.

That concerned Councilman Gary Price. “We have the obligation to try and work through how many buildings and what the costs are,” he said. “When I asked for the associated costs and estimates, I got a one-page memo and no one can tell me how many units are affected. Our citizens deserve better. I deserve better. We deserve better.” Residents agreed. Condominium owners said the estimates McInerny presented to council weren’t exactly on target.

Ewing Sutherland, president of Gulfside Condominium Association and a member of the Community Advocacy Network, said the retrofits and push to comply were proving costly for condominiums. “This enormous cost associated (with it) are unaffordable by many owners,” Sutherland said. “It could also put associations into receivership.”

McInerny said the high cost could be because some associations are making the choice to retrofit the sprinkler system in addition to making changes to get them in compliance with code. And while McInerny said he understood the frustration condo owners were experiencing, he also said he couldn’t turn a blind eye to code violations.

“What do you want me to do, just ignore it?” McInerny asked. You have violations that exist now and (we’re working to see) how they can be corrected.” McInerny said his department is willing to work with associations in order to comply with current code.

Taken from Connect with Naples.

Four Points Property Management Welcomes New Client Communities..

2010-02-01T19:53:00.000-05:00

Four Points Property Management proudly announces three new Community Association Management clients; Sunshores Condominium Association located in North Miami Beach, Florida, Monterey Gardens of Pinecrest Condominium Association located in Pinecrest, Florida, and Kenland Walk II Condominium Association located in Kendall, Florida.

Four Points Property Management will provide the following services to the association as part of their Management Agreement; administrative management services, financial management services including payment of all association invoices, preparation of monthly financial statements, and also physical property management services and project management. Additionally, Four Points Property Management will prepare the associations annual budgets, annual meeting and elections, and will also provide Board of Director support and education. The Company will also be providing weekly maintenance and janitorial services.

Follow the links below to read our recent Press Releases:

Kenland Walk II Condo - Press Release

Monterey Gardens of Pinecrest Condo - Press Release

Sunshores Condo - Press Release

We welcome our new clients, we are excited to have them on board and we are looking forward to working with them!

Insurance? For What??

2010-02-01T19:17:00.001-05:00

Every resident of a Condominium Association should carry homeowners insurance on their home and personal items. Each unit owner is responsible for purchasing and maintaining their Condo Unit Owners Policy (HO-6 Policy).

Why do you need this insurance? Doesn’t the association carry insurance of some kind? Yes the Association does carry insurance… On the building and common elements only. The Association Master Policy does NOT include coverage for the units themselves or the homeowner’s personal belongings. Association coverage does not include anything within your unit walls. If you’re a homeowner you are responsible for the inside of your unit as well as all of your personal belongings in the event of a fire, flood or any other kind of disaster, even a major plumbing leak.

Everyone in your community works hard to enjoy a certain quality of life. Don’t let one unforeseen event ruin it for you. In most cases your auto insurance company would be more than happy to provide any type of personal residential insurance for you. They may even provide a multi policy discount.

A very important coverage for a condo unit owner is LOSS ASSESMENT. This coverage will pay for a special assessment charged to each unit owner by the Condo Association as a result of a covered loss when the Master Policy does not provide enough coverage to pay for the loss. The HO-6 Policy usually provides $1,000 or more depending on the Insurance Company.

If you don’t know what kind of coverage you need, you may submit a copy of the Condominium Bylaws to your agent. Remember that your insurance is only as good as the carrier you choose and the agent you work with; make certain to pick a carrier with a good reputation. You get what you pay for.

If you have any questions, or need assistance selecting a qualified agent, our office staff is available to assist all of the homeowners in your community.

Four Points Property Management Participates in an Emergency Haiti Relief Drive.

2010-01-15T00:52:00.000-05:00

'Four Points Property Management Participates in an Emergency Haiti Relief Drive.'

Happy Holidays...

2009-12-21T14:36:00.000-05:00

Click Here .... Happy Holidays.

Small Association's MUST still enforce Documents

2009-12-10T00:10:00.000-05:00

Many Associations, both Condo's and HOA's, are considered small because of the number of homes and residents within the community. A small community typially consists of 50 or less units/homes. These "small" communities typically survive "paycheck to paycheck", maintain small reserves, and do not have much funds available in their budget to enforce their rules and regulations. Although, sometimes larger communities greater than 100 units/homes are finding themselves in the same situation.

Board of Directors must be reminded that they have a fiduciary responsibility to enforce the rules and regulations and to raise sufficient funds to do so whether by special assessments or whatever other authority the Board may have. A Board who fails to properly enforce their communities Rules and Regulations can be held accountable for failure to enforce the Associations bylaws and/or declaration no matter the size of the community associaiton. It's important to remember that no matter the size of a community, every community has Documents that must be followed and enforced, in addition to the Florida Statutes.

9 Habits of Highly Successful Boards

2009-12-09T23:41:00.000-05:00

9 Habits of Highly Successful Boards

Much like the book "The 7 Habits of Highly Successful People" (a highly recommended read). We have created "The 9 Habits of Highly Successful Boards". By using these tools your Board will be much more successful, much more efficient, and your community will also experience great success. These 9 Habits were developed through our experience in working closely with Board of Directors, training and educating Board of Directors, and managing community associations. Our 9 Habits are a proven tool for Board Member success.

1) Invest Reserves - Invest them and monitor those investments regularly. Contact our Accounting Department for assistance and information.

2) Meetings - Hold frequent meetings, prepare a detailed agenda, and set Board Meeting goals and expectations. Contact your Manager for assistance.

3) Disclose Conflicts - The Board should always disclose any conflicts with vendors, contractors, etc. This will benefit all parties involved.

4) Enforce Rules & Regulations - Proper violation enforcement is important to maintain order and property values throughout the community; however, do make sure that all rules are being fairly and equally enforced. Contact your Manager for assistance.

5) Enforce Collections & Delinquencies - Proper aggressive and efficient delinquency enforcement is necessary to maintain a financially healthy community and to increase property values. A fair and equal collections policy should be established and our Accounting Department can assist you with this.

6) Adopt Policies and Procedures - The Board should adopt Policies and Procedures that include resident applications and screening, move in/out, violations, collections, architectural enforcement, and many others.

7) Keep Records - Maintain proper records such as financials, meeting minutes, notices, contracts, and so much more. We can help with this.

8) Reserve Studies - Be sure to have an updated Reserve Study completed and updated at least every two years, this is important for accurate Budgeting, reserve funding, and may also now be requested by mortgage lenders prior to approving a purchase. Contact us for more information.

9) Use Professionals - It's important that Boards use experienced professionals to their full advantage and refer to them frequently. These professionals include Management Companies, Attorneys, Accountants, Contractors, etc. An effective Board refers to it's professionals to be sure that the Board is doing things correctly and that the Board fully understands the effects of its decisions.

Did You Know??

2009-10-31T12:01:00.000-04:00

If everyone in the U.S. viewed and paid their bills online, we would save 16.5 million trees in just one year!Do you know your paper footprint? Calculate how many trees you could save by switching to paper-free communications for all your bills: Paper Footprint - Click Here

Citizens' Property Insurance Corp. announces it will increase premiums by about 20% for properties with a replacement value over $10 million

2009-10-28T22:33:00.000-04:00

Citizens' Property Insurance is the state not-for-profit insurance company in Florida. Citizens insures over 23,000 Community Associations in Florida and recently issued a Bulletin notifying of its intent to increase premiums for policies of properties valued in excess of $10 million. The increase may be by up to 20%.

Insurance premiums are almost always the largest line item in a community associations budget. Communities in Florida already dealing with large delinquencies, large expenses, increased govrernment fee's (fire, elevator, etc.), and bad debt need to take this into account when preparing their budget for 2010

If you are unsure if your community falls within this increase, please contact us.

New Report Details Mortgage Foreclosure Frusturations For Community Associations

2009-09-03T00:24:00.000-04:00

In August 2009, the newly appointed Residential Mortgage Foreclosure Task Force, created by the Florida Supreme Court released it's final report on Mortgage Foreclosure Cases. The Task Force is Chaired by Judge Jennifer Bailey. Having listened to Judge Bailey speak recently on the issue of Mortgage Foreclosures and their effect on Community Associations, as well as having met with her briefly, I can say that Judge Bailey is very informed and aware of the burden the current Mortgage Foreclosure Crisis is having specifically on Community Associations (Condo's and HOA's).

You can find the complete report at

http://www.floridasupremecourt.org/pub_info/documents/Filed_08-17-2009_Foreclosure_Final_Report.pdf

Judge Bailey uses an excellent example to describe the situation we are facing today.

Picture this: the biggest road out of town. Now imagine it is rush hour. In
a thunderstorm. Add that it also a hurricane evacuation. A lane is closed due to
construction delayed by budget impacts. Imagine the traffic jam.

The clearest description of the impact of the foreclosure crisis and the
following recession on Florida's courts can be summarized by that picture.
Imagine every car a case. The General Jurisdiction Courts of our State have a
certain amount of judicial infrastructure, just like there is a certain amount
of room on the road. There is a certain capacity of judges, of court staff, of
clerks, of filing space, of hearing time, or courtrooms, even of hours in the
day. Year in, year out, that capacity flexes with the caseload traffic to afford
reasonable, prompt, efficient and fair justice.

The enormous increase in foreclosure filings has overwhelmed those
resources in many circuits and represents a traffic jam that the infrastructure
cannot meet in a timely and efficient manner without support and traffic
management.

Our client Board Members come to us often wondering why the long delay in many Mortgage Foreclosures. Although, we have been able to develop valuable tools to move rather rapidly with most collection cases, even Mortgage Foreclosures, sometimes the Association may have no choice but to monitor the Mortgage Foreclosure. This report provides details as to why those delays are occurring (for example, the rescheduling of final judgements) and even provides options that can be used to speed up the process and recommendations that will eventually, if approved, benefit Community Associations.

Adopt A Road

2009-08-09T22:43:00.000-04:00

We have partnered with the Miami Dade County Adopt A Road Program. We continue to be committed to our local community, and believe in participating to improve it.

Check out our Press Release:
Miami Community Association Management Firm Participates in County Adopt a Road Program

Do you have a good Condo Association Insurance Agent?

2009-08-09T22:05:00.000-04:00

Are you comfortable with your condo association insurance agent? This is one topic that is frequently over looked by many Board of Directors. Did you know that you can keep the same condo association insurance company but change agents? This can be done pretty easily without lapse in condo association insurance coverage or without payment interruption.

If you believe you condo association insurance agent is not answering your questions or if you feel that he or she is not an "expert" in the industry, and would like an insurance agent that devotes all his time to Community Association Insurance, Homeowner Association (HOA) Insurance, and Condo Association Insurance then by all means make a change. Some of the money that you pay goes to the Community Association’s insurance agent in commissions and if he or she is not doing a good job or if you feel uncomfortable with them, then make a change immediately.

As a Community Association Management firm dedicated to residential condo and homeowners associations we have developed business relationships with professional insurance agents that are experts on insuring communities just like yours. Contact us and see what we recommend and how we can help you in your decision making.

Boynton Beach Condo President ARRESTED!!

2009-07-21T22:28:00.000-04:00

Today the Sun Sentinel reported that the Boynton Beach Police Department arrested the President of a Boynton Beach Condo Association for stealing $166,646.00 from the Condo Association bank accounts.

The Board President allegedly used the money he stole for several trips to Disney World, art work, jewelry, and even cash advances. You can see the detailed article at http://www.sun-sentinel.com/news/palm-beach/boynton-beach/sfl-boynton-hoa-theft-p072109,0,954367.story

As a Management Company, we establish financial controls for all of our client communities. Our Boards receive timely financials, along with easy access to reports, invoices, and other financial documents. We recommend a dual signature policy be adopted by the Board requiring two signatures for any and all checks paid out. Our Accounting Department consist of several employees who handle the bookkeeping, reconciling, and depositing, in addition to a property manager reviewing the financial statements, having these controls as a Board and within the Management Company allow for increased security of Association funds, and definitely deter this kind of behavior. In addition to increased security of Association funds, many Directors & Officers and Crime/Bond Insurance Policies are not only requiring that these control policies be put in place, but may also request proof that the procedures are being used effectively. These type of controls protect the Association, it's Board of Directors, Unit Owners, and the Management Company and it's employees. Our office also recommends and may establish several additional financial controls on behalf of our client communities. If your Association does not use any of the above financial controls or you are unsure, contact us for more details.

Unfortunately for Associations, these kinds of instances seem to be occurring more often, and I'm glad local authorities, along with state authorities and the Attorney Generals Office are taking proper action in protecting the rights of all Association Members.

New Remote Capture Deposit System

2009-07-13T09:31:00.000-04:00

Here is a link to a new Press Release recently submitted. We have been offering this service for several months now and it has definitly turned out to be greatly benefit to our client communities. Deposits are made instantly and the funds are made available the same day, simply put, we act as the bank teller. This really is a great tool for those cash strapped communities and it is a FREE service.

Four Points Property Management Announces New Remote Capture Deposit System

Do fines always REALLY Work??

2009-07-12T02:22:00.000-04:00

In these tough economic times, Board Members are trying to do whatever they can to save money. While this mindset is obviously necessary, Boards need to be careful about being "penny wise and pound foolish." Clients often call us and ask what they can do to stop owners from violating the association's rules and regulations. This question is normally followed with an explanation that the Board cannot spend a lot of money on legal fees to enforce the rules. In other words, the Board asks that we get these people to comply with our rules but to do it cheaply. This brings up the fining process.

Imposing fines may be an inexpensive alternative to filing lawsuits or arbitration petitions, but does it actually help in unit owners correcting violations or deterring owners from violating the association's rules and regulations?

First, the association cannot even consider this option unless the authority to impose fines is found within the governing documents (usually it is), if you are not sure, ask your property manager. If the board indeed has the power to impose fines, it must establish a separate committee (usually known as a fining committee or enforcement committee). The committee must consist of at least 3 owners who are not board members, not related to board members and do not live in the same household as a board member (the law was recently amended). Then, before any fine may be imposed, the Board must provide the offending owner with reasonable advance notice (i.e. 14 days) of the date, time and location for the owner to appear before the committee. The offending owner must be given the opportunity to explain to the committee why a fine should not be levied. If the fining committee determines not to impose a fine, no fine may be imposed and the Board cannot overrule the fining committee and levy a fine where the committee voted not to impose a fine. Even if the committee votes to fine an offending owner, the fine cannot exceed $100.00 per day for a continuing violation and no fine in a condominium may exceed $1,000.00 for any single violation. Homeowners Associations may have the ability to levy fines in excess of $1,000.00.

So, do fines REALLY work? In both Condominiums and Homeowners Associations, no fine (if unpaid) may become a lien against the owner's unit. Therefore, if a unit owner fails to pay a fine, the association would need to file a claim for damages in small claims court. Also, the imposition and payment of fines does not necessarily mean compliance. A fine does not force the owner to comply. As you can imagine, many owners would gladly pay a $1,000.00 fine in order to keep their dog or continue with that unapproved tenant in their home. Therefore, while imposing fines may seem like an attractive and cost-effective solution, it does not guaranty an owner's compliance with the association's governing documents. If an owner refuses to abide by the rules, the Board's only realistic option may be to file a lawsuit and seek an injunction against the non-complying unit owner. If successful, the association is entitled to an award of its reasonable attorney's fees and costs. Then, if the owner still fails to comply, the judge may levy sanctions, hold the owner in contempt of court or ultimately issue a bench warrant for the owner's arrest.

Based on our experience, it is our recommendation that the Board always try issuing fines first. Then, if the non-complying unit owner fails to pay the fine and continues to be in violation, we recommend the Board seek legal action, at which point the associations' attorney will not only seek an injunction against the unit owner, but will also seek payment of all fines. Typically, this type of legal action usually takes at least 90 days.

So what do you think, does fining always REALLY work?

Social Media

2009-06-29T15:53:00.001-04:00

We recently decided to implement a Social Media campaign which will be updated frequently with interesting infomration related to Community Associations, Condo's, and HOA Management.

Check out our Blog at http://fourpointsproperty.blogspot.com, follow us on Twitter at http://twitter.com/FourPointsMgmt, you can also look for us on LinkedIn or Plaxo.

Enjoy!