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A Budget Season Planning Guide for Condominium and Homeowners’ Associations
As community association managers, board members and unit owners are aware, condominium and homeowners’ associations (HOAs) are required by Florida Statutes (FS) and, generally, by the association’s by-laws, to prepare annual budgets. The annual budget requires considerable effort and is, in essence, a financial plan for the upcoming year. The budget is the benchmark by which an association’s results of operations are measured. If actual expenses approximate those budgeted, it is perceived that the budget was well thought-out and the financial management of the association was effective. If, on the other hand, there are substantial variances between the budgeted and actual expenses, this may suggest that the budget was poorly prepared and/or the association’s operations were poorly monitored. Who Is Responsible for Preparing the Budget? The requirements for the preparation of the annual budget for condominium associations are set forth in Section 718.112 (2) (f) FS; and for homeowners’ associations,
Is a Budget Committee Allowed to Meet Privately?
Q: Our condominium association adopted the 2019 budget last week and it was a total shock to everyone in the room. The board claims it was the first time they had seen the proposed budget and there were multiple increases. The board kept saying they were following the committee’s recommendation and adopted the budget. What committee is this? How can this be done in secret? A: The budget “season” is one of the most important times of the year for a condominium. Every condominium association approaches the budget differently. Some rely on management to prepare the budget. Some have a treasurer that oversees the drafting process. Some have a committee of owners prepare and recommend the budget to the board. In this last situation, which appears to mirror the operation of your condominium, a committee makes recommendations to the board. This is often referred to as the “budget committee” or
Everything Your Association Needs to Know About the “Florida Condo Website Law”
By January 1st, 2019 a condominium association with 150 or more units is required to post digital copies of official records on an association website or a web portal wholly owned and operated by the association or a website or web portal operated by a third-party provider. Currently an association with less than 150 units is not required to comply with the new statute; however, it is possible for this to change at any time. So what do you need to know? Website Ownership and Content Management Considerations First, associations that already have a website provided by their management company, should review the agreement to confirm whether or not that website is owned by the association or by the management company. In the case of KWPMC clients, the websites we provide our associations with will be compliant long before the deadline and the Association will always own the content of
Summary of New Condo Association Laws in Effect As of July 1, 2018
There are several new laws that will impact Florida Condominium Associations as of July 1, 2018. Below is a summary of new laws, provided to us by Richard D. DeBoest II, Esq, co-founder and shareholder of the Law Firm of Goede, Adamcyzk, DeBoest & Cross, PLLC: Official Records – 718.111(12)(b)/HB841. Plans, permits, warranties, declaration, articles, bylaws, rules. meeting minutes and accounting records from the inception of the association must now be kept forever. Chapter 718 previously required these documents to be kept for only 7 years. All other records must still be kept for 7 years with exception of ballots, proxies and related voting material that only needs to be kept for 1 year. Access to Official Records – 718.111(12)(b)/HB841. Access to official records must be made available within 10 “working” days. Formerly it was 5 working days but since the penalty did not arise until after 10 working days
Condo Associations and the Struggle with Airbnb and Short Term Rentals
Home-sharing incidents have increased significantly in recent years due to the popularity of websites such as Airbnb.com. For a small fee, these websites connect homeowners with people who want to find a place to stay for one night at a time. Homeowners rent their entire apartment or even a single bedroom therein, for a profit. However, conflicts arise when a homeowner is the owner of a condominium unit because the unit owner’s decision to rent out the unit may not be permitted under the condominium bylaws. The rise of Airbnb.com has raised significant concerns for condominiums for a number of reasons including the issue of safety. When a condominium is rented, the renter gains access to facilities such as common areas. The Airbnb.com renters are not responsible for maintenance fees, and may misuse equipment or take advantage of amenities reserved for homeowners. Another issue is whether a transient renter is
