Association Loans and Lines of Credit
In this time of growing financial crises, associations are increasingly considering loans/lines of credit in order to have sufficient cashflow in the event of budget shortfalls caused by increasing delinquencies or in order to pay for projects that cannot be funded through the operating budget alone but cannot be postponed. In considering loan/line of credit […]
Defamation Suits When Terminating a Third-Party Vendor
In terminating a third-party vendor, a board of directors must be careful in disseminating information concerning the basis for its decision – especially if the decision was due to poor performance or contractual violations by the vendor. In Florida, a cause of action for defamation can be brought against a corporation, including specifically, a community […]
Application of the Business Judgment Rule to Community Association Board of Directors
The board of directors of community associations are responsible for making important decisions affecting the community and its members. As a result, disputes sometimes arise between the association and its members. In the event the dispute evolves into a lawsuit, the business judgment rule will protect directors from personal liability so long as they did […]
Your Board’s Responsibility Regarding Housing Discrimination
The Fair Housing Act, also known as Title VII of the Civil Rights Act is a federal law which prohibits discrimination in housing and housing-related services due to race, color, religion, sex, national origin, disability, and familial status. Because the FHA applies to entities that set terms and conditions for housing and provide services and […]
Insuring for Replacement Costs vs Cash Value
All board members know that associations need to have insurance. In the case of condominium buildings, where your insurance covers the exterior structure and part of the interior, whilst the owners’ insurance covers the interior of their unit. However, a lot of condo boards do not know that they need to have insurance for replacement […]
Has COVID-19 Affected Your Community Association Collections?
The COVID-19 pandemic has led to widespread economic problems from high unemployment to significant business closures. With the news focused on the latest round of governmental assistance for taxpayers and businesses, it’s normal to wonder how your neighborhood association or fellow homeowners may be affected. Many homeowners are facing long-term financial instability and job vulnerability […]
Financial Review vs Audit – What HOAs and Condominiums Need to Know
The end of the year is approaching fast. One of the many things homeowners’ associations and condominium associations need to decide on is whether to do a financial review vs audit. While the two may sound similar, they are two very different tools an association can use to see where their finances are at and […]
What Happens if Florida is the Cone of Uncertainty or Gets Hit with a Hurricane During the Pandemic?
The State of Florida is currently trying to figure out the daunting prospect of what it may mean to ask residents to evacuate for their safety during a storm after asking them to stay at home for the coronavirus. Hurricane Season officially kicked off on June 1st, and in the middle of a pandemic, the […]
Preparing for Emergencies: Association Loans & Lines of Credit
Article Provided By Michelle Westermen Esq., Community Association Attorney Becker becker.com In this time of growing financial crises, associations are increasingly considering loans/lines of credit in order to have sufficient cashflow in the event of budget shortfalls caused by increasing delinquencies or in order to pay for projects that cannot be funded through the operating […]
Florida Community Association Legislative Update May 2020
At the time of our last newsletter in February, pre-pandemic, the Florida Legislature was working on several bills that would significantly impact community associations on a wide range of issues. However, as the 2020 legislative session closed amid the emerging coronavirus, most of the bills geared specifically toward community associations failed to receive approval, including […]
Emergency Powers, Hurricanes and Coronavirus
In light of the ongoing coronavirus pandemic and the quickly approaching hurricane season, which starts June 1, many Florida condominium and homeowner associations are facing critical and unique issues regarding the operation and governance of their communities. Both the Condominium Act (Chapter 718, Florida Statutes) and the Homeowners’ Association Act (Chapter 720, Florida Statutes) contain […]
What You Need to Know About Stormwater Systems in an Association
A homeowner association and a condominium association have a duty to maintain their common property. That duty is generally provided for in Florida Statutes and the express duties are usually set forth in the Declaration of Covenants and Restrictions. For homeowners’ associations, the duty is set forth in Fla. Stat. 720.305(1) (“Each member and the […]