In 2003 when the Florida legislation mended FL. Statute 440.34 to limit  attorney fees for benefits secured to a strict contingency fee schedule. Another way to mandate how much costs can be spent on attorney fee’s regarding Workers Comp.
On April 28. 2016, the Florida Supreme Court issued an opinion in the case of Castellanos vs. Next Door Company. The outcome of the decision was declared unconstitutional to place a cap on attorney fee’s.

Long story short, we return to unlimited hourly attorney fee’s.

Although some articles state Castellanos decision is not part of proposed Worker Compensation rate increase, an expected 16% increase will be effective August 1, 2016

Workers Compensation for most Condominium and Homeowner’s Associations are around $800. to $900 per year. Small peanuts compared to price hike of our Florida wind and flood insurance after hurricane Wilma, 2005.

Click here to: See how you can do something about High Wind/Flood costs.

The post Condominium-Homeowner’s Association Worker’s Compensation Price Increase: first appeared on Gulfshore Property Mgmt.

One significant reason; whoever signs an Estoppel Request Form is responsible for accuracy..

If signed by Property Manager, the Board would be held harmless, since most Management contracts call for assignments

Also, Estoppel request has to be completed and signed by a contracted manager, agent of, or by a Board member within a reasonable amount of time. Within fifteen (15) days to be exact.

Who’s counting? Usually the Bank or Owner who holds title of said property.

Is there consequences if not received by fifteen (15) day dead line? You bet ya.

The first step a Bank or Owner of said property would take, is to bring a Summary Proceeding against defaulting Association. This is a, “quick fix” for a resolution. If a resolution cannot be met, then a claim can to brought to against the Association.

So who is responsible to deliver Estoppel Request within the allotted time frame? The contracted Management Company.

Who’s responsible for accuracy? Whoever signs the Estoppel Request Form.

The post Estoppel Request: first appeared on Gulfshore Property Mgmt.

While Cash Receipts and Expenditures can be prepared by a book keeping, a compilation can only be performed by a licensed CPA based on Florida statutes; – according to the Florida Department of Business and Professional Regulation (DBPR). The levels of service that CPA’s provide for financial statements are generally compilations, reviews, and audits.

A compilation broadly provides no assurance by the CPA, other than stating that the CPA has compiled your information in the form of a financial statement(s) and has not performed an audit or review.

A review basically provides negative assurance, stating that the CPA has performed inquiry and analytical procedures, and based upon such, the CPA is not aware of any significant modifications that are needed in order for the financial statements to be presented in accordance with generally accepted accounting principles, or an alternative appropriate other comprehensive basis of accounting, such as cash basis.

An audit is positive assurance, whereby the CPA gives his/her professional opinion that the financial statements are fairly presented (materially correct to the reasonable man relying on the financial statements) in accordance with generally accepted accounting principles or an appropriate other comprehensive basis of accounting. The opinion goes into additional details as about what an audit consists of and doesn’t consist of.

A general charge $300-$500 for compiled financial statements for condo/homeowner associations with no disclosures/footnotes.

The post Year End Financial’s; Explained in Laymen’s Terms: first appeared on Gulfshore Property Mgmt.

Above new legislation effective January 1, 2013: Basically, now insurance company’s who are planning on non-renewal, now have to give 45 day notice and have a renewal transfer in-line with same holding company or other such company disclosing their financial rating.

The post Effective January 1, 2013; insurance companies have to? first appeared on Gulfshore Property Mgmt.

Work Contracts and Bids

Before the condominium Florida Statute revisions entered into law, bids and proposals were to be kept for a period of one year. Effective October 1, 2008, now bids and proposals are mandated to be kept for a period of seven years.

The only document shelf-life requirement ensued under the old law are election and proxy voting documents, which can be discarded after one year.

Another addition to the Statute is the association records shall be made available to a unit owner within 45 miles of the condominium property or within the county in which the condominium property is located within 5 working days after receipt of written request by the board or its designee.

The new revisions also addresses the way we review association records. In-lieu of hard copies of official records, the association may now offer the option of making the records of the association available to a unit owner either by internet or by allowing the records to be viewed in electronic format on a computer screen and printed upon request.

16.  A copy of the inspection report as provided for in s. 718.301(4)(p).
(b)  The official records of the association shall be maintained within the state for at least 7 years. The records of the association shall be made available to a unit owner within 45 miles of the condominium property or within the county in which the condominium property is located within 5 working days after receipt of written request by the board or its designee. However, such distance requirement does not apply to an association governing a timeshare condominium. This paragraph may be complied with by having a copy of the official records of the association available for inspection or copying on the condominium property or association property, or the association may offer the option of making the records of the association available to a unit owner either electronically via the Internet or by allowing the records to be viewed in electronic format on a computer screen and printed upon request.

The post Official Records first appeared on Gulfshore Property Mgmt.

• Receipts & Expenditures

• Accounts Receivables

• Audits, Reviews, Compilation or Cash & Expenditure Reports,

• Bids & Proposals

• Annual Meeting Packages are maintained for one year.

• Rental Records

• Question & Answer Sheets

• All Operation Records

• Inspection Report

For more fun facts see: Financial Reporting Requirements for Homeowner Associations. (12)  OFFICIAL RECORDS.— 11.  Accounting records for the association and separate accounting records for each condominium which the association operates. All accounting records shall be maintained for a period of not less than 7 years. Any person who knowingly or intentionally defaces or destroys accounting records required to be maintained by this chapter, or who knowingly or intentionally fails to create or maintain accounting records required to be maintained by this chapter, is personally subject to a civil penalty pursuant to s. 718.501(1)(d). The accounting records shall include, but are not limited to: a.  Accurate, itemized, and detailed records of all receipts and expenditures. b.  A current account and a monthly, bimonthly, or quarterly statement of the account for each unit designating the name of the unit owner, the due date and amount of each assessment, the amount paid upon the account, and the balance due. c.  All audits, reviews, accounting statements, and financial reports of the association or condominium. d.  All contracts for work to be performed. Bids for work to be performed shall also be considered official records and shall be maintained by the association. 12.  Ballots, sign-in sheets, voting proxies, and all other papers relating to voting by unit owners, which shall be maintained for a period of 1 year from the date of the election, vote, or meeting to which the document relates, notwithstanding paragraph (b). 13.  All rental records, when the association is acting as agent for the rental of condominium units. 14.  A copy of the current question and answer sheet as described by s. 718.504. 15.  All other records of the association not specifically included in the foregoing which are related to the operation of the association. 16.  A copy of the inspection report as provided for in s. 718.301(4) (p).Accounting Records:

The post Florida Legislation affecting Condominium Association first appeared on Gulfshore Property Mgmt.

Fiduciary Duty

718.111 (a) of the Florida Statutes avow that directors, officers and managers automatically have fiduciary duties and responsibilities directly or indirectly owed to its owner/s of shared association. Effective October 1, 2008, a new legislative ruling signifies fiduciary duties to be the same as any other non-profit corporation.

One reason for this clarification is the problematic of unfair practices such as kick-backs. Directors, officers and property managers are subject to civil penalties for illegal practices by accepting any thing or service of value for which consideration has not been provided for his/her own benefit or that of his/her immediate family.

The association may however, receive services or items in connection with trade-fair shows or education programs.

718.111; the association.
(1)  CORPORATE ENTITY.–
(a)  The operation of the condominium shall be by the association, which must be a Florida corporation for profit or a Florida corporation not for profit. However, any association which was in existence on January 1, 1977, need not be incorporated. The owners of units shall be shareholders or members of the association. The officers and directors of the association have a fiduciary relationship to the unit owners. It is the intent of the Legislature that nothing in this paragraph shall be construed as providing for or removing a requirement of a fiduciary relationship between any manager employed by the association and the unit owners. An officer, director, or manager may not solicit, offer to accept, or accept any thing or service of value for which consideration has not been provided for his or her own benefit or that of his or her immediate family, from any person providing or proposing to provide goods or services to the association. Any such officer, director, or manager who knowingly so solicits, offers to accept, or accepts any thing or service of value is subject to a civil penalty pursuant to s. 718.501(1)(d). However, this paragraph does not prohibit an officer, director, or manager from accepting services or items received in connection with trade fairs or education programs. An association may operate more than one condominium.

The post House Bill 995 Florida Laws first appeared on Gulfshore Property Mgmt.

Director Abstaining from Voting:

In an attempt to avoid a conflict of interest, Directors & Officers would vote, “abstain, neither, nor, refrain, desist and even present”. Although they may have been savvy, the vote used would officially count as an opposed vote. Likewise, if Directors & Officers vote neither, nor or abstain etc… the vote was presumed to have assented to the action.

Effective October 1, 2008; if Directors & Officers vote to abstain on any corporate action taken, he/she would be presumed to have taken no position with regard to the action. Consequently, Directors & Officers may now vote to abstain without the minutes reflecting an opposition.

718.111  The association.–

1(b)  A director of the association who is present at a meeting of its board at which action on any corporate matter is taken shall be presumed to have assented to the action taken unless he or she votes against such action or abstains from voting. A director of the association who abstains from voting on any action taken on any corporate matter shall be presumed to have taken no position with regard to the action. Directors may not vote by proxy or by secret ballot at board meetings, except that officers may be elected by secret ballot. A vote or abstention for each member present shall be recorded in the minutes.

The post Changes Affecting Condominium Associations first appeared on Gulfshore Property Mgmt.

There had been few attempts of the Florida legislation to clarify additional administrative fees.
Upon adoption or written management agreement, the Board has the authority to charge a fee for a certificate. This means, if not stated in your community documents, a fee for the preparation of an estoppel certificate may be collected. The legislation does not state the minimum amounts.

The local standard for prepared board approval forms are $100.00, which includes processing. Question & Answer sheets would be a $25.00 additional charge. Assuming the amended resolution means the estoppel certificate, a reasonable additional charge may range from $25.00 to $35.00. Clarification is scarce in this amendment.

If the sale fell through, and the payor is NOT a unit owner, within 30 days the payor can request a refund. The seller will be responsible for reimbursements and collected by the Association as an assessment. See Section 718.116:

(d)  The authority to charge a fee for the certificate shall be established by a written resolution adopted by the board or provided by a written management, bookkeeping, or maintenance contract and is payable upon the preparation of the certificate. If the certificate is requested in conjunction with the sale or mortgage of a unit but the closing does not occur and no later than 30 days after the closing date for which the certificate was sought the preparer receives a written request, accompanied by reasonable documentation, that the sale did not occur from a payor that is not the unit owner, the fee shall be refunded to that payor within 30 days after receipt of the request. The refund is the obligation of the unit owner, and the association may collect it from that owner in the same manner as an assessment as provided in this section.

The post Affecting Naples & Marco Island Condominiums first appeared on Gulfshore Property Mgmt.

Now it is mandatory to have an insurance appraisal prepared by an independent appraiser at least once every 36 months. The appraisal must be based upon actual replacement costs. This may be a confirmed law, but has always been a common practice to ensure adequate coverage.

Another new statute confirms that the board of directors will establish the insurance deductibles base on local standards. Again, this has been common practice. It’s common to have an Insurance Committee recommend deductibles for the Board to consider.

On or after January 1, 2009, all portions of a condominium property with any alteration or additions must provide primary coverage excluding all personal property. Once again, this is common practice.

The post Changes Not so Notable? first appeared on Gulfshore Property Mgmt.