Month: November 2007

Gulfshore Property Mgmt. 

As our customers know, Gulfshore Property Mgmt. is dedicated and devoted to our community associations. By providing the highest level of professional community management services, we can guarantee customer satisfaction.

No Stone is Left Unturned

With years of documented property management services, we developed a “Master Plan” (MP). This MP is incorporated in all types of associations, including high rises, commercial businesses, cooperatives, condominium, homeowner and mobile homes. The MP covers every aspect of association management. Once we bring the association up to a higher level of service and maintenance, we maintain that level of service with precision work sheets designed for verification. This ensures property preservation.

We are experts in all fields of property management.  By being proactive, we are able to spot health hazards such as mold, water leaks, and potential safety problems. We work hand-in-hand with our proven vendors and treat them with respect.

After we understand the direction of the Board of Directors is heading, as a whole, we implement a plan to create a solid foundation. Once the plan is in motion, the association enjoys a worry free, higher standard of living with a clean and safer community.

We would like to take this opportunity to thank the readers of Gulfshore Property Mgmt.  website. The number of unique visitors on a daily basis is mind-boggling. It is truly amazing to see so many daily visitors.  This is achieved purely from word of mouth. Keep up the good work by referring interested people to our site.

In addition to our announcement, we would like to welcome aboard our new associations to our list of clientele:

Victoria Falls
Carson Lakes
Charlee Estates
Independence Estates
Trail Ridge
Liberty Landing
Faith Landing

We can assure you that we appreciate your business and confidence placed on our company. If you like this post, see related posts, “Complimentary Management Services” and “How to choose a management company“. Also, please subscribe to our community. Or subscribe by email services.

After Hurricane Wilma hit Southwest Florida, local insurance companies closed their doors and left town.

Citizen’s is a state ran insurance company, which is funded by the State of Florida. Since the local insurance companies packed their bags and left town, Southwest Florida Community Associations, all rely on Citizen’s insurance to cover their Wind Storm insurance policies. State regulation requires, “full insurable value”, which means full replacement costs. Therefore, the State of Florida was force to insure associations with adequate coverage. The State of Florida accomplishes this by funding Citizens Insurance Company.

Since Charlie Crist our newly elected governor, failed on his promise to lower windstorm insurance premiums, the legislation made a political conversion and enacted two new laws.  

The first allows a group of at least three-wind storm insurance as a group, if the insurance coverage is sufficient to cover an amount equal to the probable maximum loss for the communities for a 250-year windstorm event.

If the association have good neighbors and would like to group together, with a minimum of three windstorm policies, the communities would earn a small savings. The logic behind this new ruling, is the bigger the policy, the more saving would be made available. This really is not a significant savings to the associations. Since “the only game in town” is Citizen’s Insurance, the legislation already has the associations grouped together.

The second law allows a group of associations to self-insure against claims against the association, the association property and the condominium property required by the State to be insured.

This means that a group of associations can self-insure in-lieu of carrying liability and Directors and Officers (D&O) insurance. Not only eliminating liability and D&O insurance, the associations would have to tie up substantial amounts of money. Again, this is no deal, liability and D&O insurance is the cheapest insurance by far, out of all required Florida insurance policies. For the few dollars spent on liability and D&O insurance, the associations would not save any significant amount of money. Also, the large amounts of self-insured dollars would be tied-up and made unavailable unless a claim is made against the association.

As for the insurance policies, the same book and record inspection regulations applies. Please see “Property Insurance at a All Time High“. Also see Florida Statute: 718.111 The association: (more…)

In an attempt to clear overcrowding courts and to alleviate frivolous and nuisance suits, the Florida act requires the use of “alternative dispute resolution” prior to any court action.

Just a few years ago, Homeowner disputes were preceded directly to court. That has been changed; now all Florida Associations must use arbitration as a means of resolving selective disputes.

General disputes subject to mandatory non-binding arbitration:

• Elections
• Notice of meeting or mailing
• Proper conduct of Board Meetings
• Not allowing for inspection of books or records
• Disagreement involving members and directors
• Failure to maintain common elements
• Material change or alteration by the board

The following are not eligible for alternative dispute resolution (arbitration):

• The charging of assessments and special assessments.
• The cost of collecting an assessment and attorney fees.
• Common elements and limited common property.
• Title to property and any deeds such as a warranty deed.
• Alleged breaches of fiduciary duty by one or more directors.

Prior to the institution of court litigation, the party to a dispute, petitions the division for non-binding arbitration. An initial filing fee of $50.00 are collected from the Department of Business & Professional Regulation (DBPR). Those who wish to dispute through arbitration, the costs are split between both parties. The last arbitration we experienced, cost the association $2,200.00 and $2,200.00 to the disgruntle unit owner. The one before that cost over $10,000.00 and the issue remains unresolved.

Arbitration is a formal process. All arbitration decisions are final. If both parties agree, the arbitrator may refer a dispute to mediation.

Mediation is voluntary and encouraged. All parties must agree and must select a mutually acceptable mediator.

There are special provisions for both condominium and homeowner associations regarding arbitration and mediation procedures, for more information see Florida State Statute 718.1255: (more…)

The parcel of land outside of privately owned Units and within the community is known as common property.

All members own condominium common property equally and Homeowner’s association hold property that is owned by the association.

Common areas are designated for owner’s and guest use. Although portions of the common area are for members and guests, member use must not infringe the lawful rights of others.

Annexes and its appurtenants, which are exclusive use to a Unit, are described as a limited common property or limited common elements.

Condominium limited common elements are usually a restricted use to a particular unit, such as a porch area or balcony. A balcony with appurtenances would be considered a limited common element. A walkway to the beach or pool area could be considered an appurtenant to the balcony.

Homeowner limited common elements are also reserved for the use of a particular Unit or Units. A storage locker, parking spaces and walkways from individual Units are other examples of limited common elements.

Here is how the Florida Statute interprets limited common elements in both Homeowners and Condominiums:

Limited common elements,” means those common elements, which are reserved for the use of a certain unit or units to the exclusion of all other units, as specified in the declaration.

For most condominiums, air conditioning and heating equipment are considered limited common elements. Here is an example of a condominium declaration:

All equipment, fixtures and installations located inside or outside of a Unit which furnish air conditioning or heating exclusively to that Unit, shall be Limited Common Elements, and shall be maintained, repaired and replaced by, and solely at the expense of, the Owner of the Unit.

The benefiting Unit owner maintains the maintenance and upkeep of limited common elements or property.

In most condominium documents, air conditioners and all associating equipment are a limited common element. Which really means, owners’  personal use and responsibility. Associations are limited to limited common usage. Therefore, solely the exclusive Unit owners use and maintain limited common elements.

Standard democratic principles should be conducted at all Board of Directors Meetings.

With every Board meeting, parliamentary procedures shall be practice by all members. Without them, two things would most likely happen. The Board will make up and manipulate procedures as they go, which would cause confusion and lost of members. Or, the board doesn’t know or use parliamentary procedures at all. Without written procedures, the Board could lose members’ rights altogether.

This is why most community documents include Parliamentary Rules. See example condominium bylaws:

Robert’s Rules Of Order (latest edition) shall govern the conduct of the Association’s meetings when not in conflict with the Act, the Declaration, the Articles, or these Bylaws.

And see example homeowner bylaws:

The then latest edition of Robert’s Rules of Order shall govern the conduct of meetings of all Members of the Association and the Board; provided, however, if such rules of order are in conflict with any of the Documents, Robert’s Rules of Order shall yield to the provision of the documents.

Decisions to be made shall be conducted in an orderly manner. Therefore, parliamentary procedures must govern the conduct and practices of association meetings. This will ensure that all interested individual members are allowed to participate and be heard. If the procedures conducted properly, the result would be a fair and balanced meeting. The rights of members would be protected and everyone would have the right to present, speak to and vote on agenda items.

Every association should have the latest addition of Roberts Rule of Order. All Board members should read the book and understand procedures. The Roberts Rule of Order should only be use as a guide and not as a final decision. Furthermore, only rules, which do not conflict with the bylaws, shall be used. The bylaws will take precedence over Roberts Rule of Order. Since there are no parliamentary procedures written in the Florida Statute, the association’s documents will take priority. Always check applicable documents for reference to the Roberts Rule of Order and the latest addition.

If not stated in the governing documents, adoption of the latest addition of the Roberts Rule of Order are highly recommended. Establishing parliamentary procedures can ensure peace and harmony within the community. (more…)

Renters have the same rights as unit owners do, even while living in their community.

So many times Board of Directors deny and restrict renter rights of using the Clubhouse for special events. Or use stricter rules & regulations for renters, as opposed to the owners, by limiting the use and time of weight room and amenities.

If their were a known survey, we’re sure it would show ownership has a higher sense of ownership pride as would a renter. Members will say, “Renters’ do not have the same respect as a unit owner and after pool or clubhouse use, too often they refuse to clean after themselves”.

Although many Boards are in favor of amenity use restrictions for renters, the Florida Statute 718.106 adversely states, “When a unit is leased, a tenant shall have all use rights in the association property and those common elements otherwise readily available for use generally by unit owners and the unit owner shall not have such rights except as a guest, unless such rights are waived in writing by the tenant.”

The law also allows for association right to adopt rules to prohibit dual usage by a unit owner and a tenant of association property and common elements otherwise readily available for use generally by unit owners.

If dual usage becomes a problem in a community, then the Board can prohibit use by adding to the Rules & Regulations. Since the Florida Statute clearly states the ability for the Directors to eliminate dual usage, adding to the association Rules & Regulations would be considered a reasonable rule.

How to prohibit dual use of common elements without a membership vote?

• Post an agenda with the date, time and place of a Board of Directors Meeting.
• Make sure the agenda item states, “Vote to prohibit dual usage.”
• Vote to approve or disapprove dual usage.
• If approved by the Board, add the language to the governing Rule & Regulations.
• Send all record owners a copy of the new Rules & Regulations.
• An Affidavit of mailing is recommended.

For more information or supporting documents, see Florida Statute 718.106 below: (more…)

The Community Association Board of Director’s are Solely Responsible for Their Actions: 

First make sure the Board of Directors have their policies in place. The Board of Directors is responsible for the operation of the Association by maintaining, repairing and replacing the necessary common elements. Preserving the property valve should be one of the main objectives of the “master plan”.

The property manager and property management company’s implement the policies supplied by the Board. If the Board does not have a management policy, the manager can supply an initial master plan and the association could then prioritize the plan as necessary. The manager would then assist the Board by delegating maintenance, repairs, replacement and other functions directed by the Board.

The Board can assign tasks and allow for the manager to run the day-to-day association business on behalf of the Board. Although the manager makes the daily decisions, the Board is still ultimately responsible to the association. The Board could never reverse their responsibility by assigning manager duties.

The Board of Directors by State Statute is obligated to use prudent business judgments and has fiduciary duties to act in the best interest of their community. Also, to make good faith decisions, as would an ordinary person would under the same circumstances.

To help make sound decisions, the Board can seek professional opinion. Experts like Community Association Attorney, industrial engineer, state contractor, public accountant and property manager, are all necessary in making responsible board decisions. The Directors’, who apply these high standards of community management, will never be liable for actions or the failure to take action by any of the association members.
If the community contains less than fifty (50) units or has an annual budget (or budgets) of less than $100,000.00, a hired Community Association Manager would not be required by state statute. For seasons stated above, not having a Community Association Manager is not recommended. For more information regarding management duties and how to choose a community association management company, see, “How to Choose the Right Property Management Company“.

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