Delinquency Rates are Climbing ..What can you do?

Is it abuse?

YES! It’s abuse because each
and every homeowner knew prior to closing
on their home that the only way the
association can pay their bills is by all
members collectively putting in their share
of the money. Heck, they even receive a
Budget every year outlining the expenses.
They even know the association is a not-
for-profit corporation which basically
means there should be zero profit at the
end of the year. So why do these
homeowners stop paying their dues? Why
do they think they can get away with not
paying their share of the bills? The answer
is simple. Each homeowner has their own
reasons for not paying their share of the
bills. But that doesn’t mean that as a board
member, which has a Fiduciary duty to all
members, you should sit back and watch as
the asset starts to deteriorate.

Which brings me to my next point. The
solution! What should a board do and how
should they go about reducing
association’s receivables?

The answer is simple. The board should
start by becoming aggressive with the ones
that are not paying. The board should start
by calling every day; send letters weekly;
take them to small claims court; do
whatever it takes to get these folks to pay.

But do you know most boards don’t do
this. When you ask the boards why they
are not aggressive their response varies
from “well, we live amongst them” to “we
feel their pain”

Well what about the pain of the ones
that are paying? What about them? Don’t
they deserve some respect for being on-
time with their payment? Most would
answer YES to that question. In addition,
I’ve found that boards do care. They just
don’t know where to start. If this sounds
something like your association then let
me help by suggesting that you start
becoming aggressive with collections.

How Aggressive? Very! There are a lot of
companies out there that are willing to
help. For example, one company I’m
familiar with will buy your receivables.
However; this company requires a
contract that MUST be reviewed by your
attorney before you do anything.

In my next issue I will discuss what the
state of Florida has put together to help
associations recover some past monies
and how by engaging the right company
you can be on your way to solvency.

If you have any questions or if you would
like a FREE evaluation please call me
today:

561-707-4900 or email
FrankLaMorteLLC@Gmail.com

Licensed Florida Community Association
Manager and Real Estate Broker

HOA Rules Chapter 720

I have been thinking a lot about Home Owner Associations located within the state of Florida and thought it was a good idea to list just one section of Florida law to help the newly elected board member and or new resident understand the importance of knowing this law which is titled FLA. Chapter 720.

If you would like me to attend one of your association's meeting to go over this more throughly feel free to call or email me. My cell is 561-707-4900. Enjoy. Frank

720.303 Association powers and duties; meetings of board; official records; budgets; financial reporting; association funds; recalls.

(1) POWERS AND DUTIES.--An association which operates a community as defined in s. 720.301, must be operated by an association that is a Florida corporation. After October 1, 1995, the association must be incorporated and the initial governing documents must be recorded in the official records of the county in which the community is located. An association may operate more than one community. The officers and directors of an association have a fiduciary relationship to the members who are served by the association. The powers and duties of an association include those set forth in this chapter and, except as expressly limited or restricted in this chapter, those set forth in the governing documents. After control of the association is obtained by members other than the developer, the association may institute, maintain, settle, or appeal actions or hearings in its name on behalf of all members concerning matters of common interest to the members, including, but not limited to, the common areas; roof or structural components of a building, or other improvements for which the association is responsible; mechanical, electrical, or plumbing elements serving an improvement or building for which the association is responsible; representations of the developer pertaining to any existing or proposed commonly used facility; and protesting ad valorem taxes on commonly used facilities. The association may defend actions in eminent domain or bring inverse condemnation actions. Before commencing litigation against any party in the name of the association involving amounts in controversy in excess of $100,000, the association must obtain the affirmative approval of a majority of the voting interests at a meeting of the membership at which a quorum has been attained. This subsection does not limit any statutory or common-law right of any individual member or class of members to bring any action without participation by the association. A member does not have authority to act for the association by virtue of being a member. An association may have more than one class of members and may issue membership certificates. An association of 15 or fewer parcel owners may enforce only the requirements of those deed restrictions established prior to the purchase of each parcel upon an affected parcel owner or owners.

Below is the link to view the whole statue:

http://www.flsenate.gov/statutes/index.cfm?App_mode=Display_Statute&URL=Ch0720/ch0720.htm

A well run board meeting...

So you live in this wonderful community. The board members are really nice and the manager always smiles. But is there something just under the surface that is hiding out waiting to pop up and bit the community when the time is not perfect?

Well if you attend board of directors meetings you should be able to answer that question with relative ease. If not I suggest the next best thing. Request and read a copy of the board minutes. That's right the board minutes. What will the minutes show? Many things. One of them being how well your board runs these meetings.

A well run meeting is a good indicator that the leadership of your community is managing the affairs effectively. First, every board member should be acquainted with Robert's Rules of Order. These rules establish a procedure for making , amending and discussing motions presented by other members. But be careful. Check your association documents to see if it specifies Robert's Rules of Order for your meetings.

Second, does the board follow the posted agenda? The agenda items Must be followed in the order it's written. Third, do motions get seconded; discussed and then voted on or does the vote get put off for another time? Forth, does the membership present amount to over 6% of the total number of unit owners? A well run association attracts attendances in the neighborhood of 10% or more.

And lastly, I suggest you order copies of board minutes from the past six months and read them. By doing so you will be more informed as to the direction your association is heading in.

If you have any questions relating to Property Management feel free to email me.
I will do my best in replying back to you withing three days.

Frank

Do you have happy members?

Member Satisfaction is key to running any organization especially home owner and condominium associations.

So let me begin by saying that strong customer satisfaction can be defined as meeting or exceeding expectations of the membership. Great customer service is a balancing act and requires communication with the membership. For example, when was the last time the board members spoke with the membership about the quality of the service? Has the association sent out questionnaires? Do the board members ask questions to the membership? Are the board members willing to ask questions?

If the answer to any these questions is NO then I suggest you get started right now finding out how your community feels about the decisions the board makes.

Don’t delay. Do it now. And remember communication with the homeowners is the best way to build support.

Again, the key to great customer service is communication. And don’t forget that a positive attitude will help you create positive customers.

If you would like me to attend one of your meetings to discuss this topic further feel free to email me at the link below.

Frank
FrankLaMorteLLC@Gmail.com

Board meeting fun...

In thinking about what I should write today my mind was drawn to an article I read that really hit home. It was an article about Board Meetings. More specifically how an H.O.A board meeting should be conducted. So, I decided to put it up on my Blog for your enjoyment.

Article by: Eleanor Hugus

In running a homeowners association, one of the best or worst experiences you can have is attending the association board of directors meeting. The association is charged with conducting the business of the association in an open forum so interested homeowners may attend, observe, and have the opportunity to approach the board if necessary. A meeting agenda must be followed and many states also require that only items on the agenda may be discussed.
We need to be organized, efficient and working well as a team to get things done. One topic we have recently discussed with our staff is to introduce a meeting policy that would cover an expected standard of conduct from the homeowners, board members and management during meetings. When you consider what gets a meeting off track, sometimes it’s not the business. It is often the behavior of the individuals that becomes an issue. Tempers may flare, and sometimes it just isn’t that easy to get along. When you establish a set of expectations of behavior, then you can hold people accountable to these expectations, and then it is easier to function.
There are lots of published materials on the subject of standard behavioral expectations at board meetings available, but the sample below should help.
Sample Meeting Policy
1. Be at the meeting on time
2. Stay at the meeting until the end
3. Avoid interruptions
4. Turn off all electronic devices
5. Allow time for people to participate
6. Stay on the agenda
7. Be respectful of others
8. Review the meeting packet before the meeting begins and be prepared to take action
9. Recognize accomplishments and efforts
10. Do a two-minute constructive critique of the meeting after adjournment
11. No foul language
12. Speak in a normal tone
After the board members adopt their Conduct Standards for Board Meeting Policy, they should post it on a sign board that is displayed at every meeting as a very visible reminder to all attendees.
Another tip to adhering to the policy is to have a way for the group to note when something is happening or not happening. A white flag could be on the table so a board member can wave it when (s)he sees that the group is taking too much time discussing an item on the agenda or not complying with another expectation. To show praise, the president or another board member could place a trophy in front of a person who comes up with a great idea or spent lots of time on a project. For example, in another group I attend we have a Beanie Baby cat that gets placed in front of you if you are late to the meeting, or if someone sees you are text messaging instead of paying attention. Have you ever heard the expression – “It’s like herding cats!”? Well, that isn’t easy, so that is why we use the Beanie Baby cat. We also have a little dog that is given out to the “top dog” for meaningful contributions or great ideas.

We all know great meetings don’t happen all the time, but wouldn’t it be great if they happened more often? These meetings policies might just help. Have fun!

Can a recently adopted rule be rescinded?

Ok, today was an interesting one. I was asked by a board member if a recently passed rule made by the board can be rescinded. Here is my abridged answer:

Most condo/Hoa documents have rules of conduct that boards must follow. These rules are usually known as Robert’s Rules of Order. These rules are very specific and lengthy so investigating it here would just put you to sleep. However, I would suggest taking a look into the rules yourself.

The abridged version: Section 35 (Robert's Rules of Order)states the following: Rescind; Amend something previously adopted (By means of the motion to Rescind and to Amend Something Previously Adopted- The assembly can change an action previously taken or ordered. Rescind-also known as Repeal or Annul is the motion by which a previous action or order can be canceled.

In Summary, the effect of Rescind is to strike out an entire main motion, resolution, rule, bylaw, section or paragraph that has been adopted at some previous time.

Please note not every board's follow these rules exactly. All boards that I have been involved with do a decent job in trying to be fair to all members / residents of their community. Nothing is perfect but I'm sure your board comes very close.

Frank

Effective Association Governance

Effective association governance is not just about boards. It is also about power and influence, about how decisions are made and about how your members are able to influence the directions and priorities of the association. Most association executives and volunteers know that their associations could be more effective than they currently are. Many also believe their governance models stand in the way. Typical problems cited:

* Boards that micro-manage details such as debating which speaker to invite to the next Board Meeting.

* Board meetings that drag on with very little of substance being accomplished.

* Association members feeling powerless to influence decisions.

* Constant drifting from crisis to crisis with no clear sense of direction or purpose.

* Widespread member apathy.

How your members perceive value is directly linked to your association’s governance structure. I have pioneered a number of innovative techniques to help associations overcome these types of problems and achieve extremely high member satisfaction ratings relative to the performance of their association.

If you want me to talk about this at your next meeting just email:
FrankLaMorteLLC@Gmail.com

Achieving Your Association's Potential

Achieving Your Association's Potential Involving and Empowering Your Members Mr. LaMorte says that if you look at the structures of typical Florida associations, most of them are like triangles. The board of directors is typically at the top (i.e. the triangle's smallest point) and communicates 'downwardly' to committees, and staff (i.e. the broader base). Often, the decision-makers have little or no contact with the membership-at-large and don't really know what's going on. Whether it's a large association or small it is easy to see that relatively small groups of governing bodies are setting policies and creating programs based on limited knowledge and exposure - and the members have largely been left out. "There is something definitely missing between what members want and what their association is delivering," says Mr. LaMorte…

If you would like to learn more about my program, please call me today to set-up a free no-obligation meeting.

Frank LaMorte
Cell 561-707-4900
FrankLaMorteLLC@Gmail.com

Board of Directors Role

So what exactly do Board of Directors do for their association. Well that depends on the person. In associations where the boards are active the members do a lot. They run the day-t0-day activities, for example. Below is an excerpt taken from the Florida Division of Professional Regulation explaining the role of Boards of Directors.

The Board of Directors
The board of directors, initially appointed by the developer and subsequently elected by the unit owners, is responsible for managing the affairs of the association. The board may appoint committees to assist with the various duties of the association. Often such committees include a Bylaws Committee, Budget Committee, and Grounds Committee. Effective committees are important to a well-run condominium association because they help the board carry out its powers and duties.
A director is expected to carry out his or her powers and duties, as any other ordinarily prudent person would do under reasonably similar circumstances. Directors have a fiduciary relationship with the unit owners, and have the responsibility to act with the highest degree of good faith and to place the interests of the unit owners above the personal interests of the directors.
Although the board of directors is essentially the decision-making body for the condominium, the association’s effectiveness rests primarily with its membership -- the unit owners. For an association to be successful, unit owners must take an active part by serving in leadership positions on the board of directors and/or its committees, attending association meetings, voting, and assisting in other affairs of the association whenever possible. These roles are essential to an association’s success. Apathy on the part of the unit owners will render an association ineffective.
Each unit owner has the right to be informed and have a voice in the operation of the condominium. For this reason, Chapter 718, Florida Statutes, requires each condominium association to hold an annual meeting of its unit owners, provide adequate notice of meetings, allow unit owner participation at meetings, conduct elections,
3
permit unit owner inspection of the official records of the association, and prepare and distribute a year-end financial report to the members. These are just some of the requirements that unit owners can expect to be fulfilled by an association’s board of directors.

Thinking of hiring a manager?

So you want a manager to help with the affairs of your association. You decided to research the possibility of hiring a manager. This researching has lead you to the conclusion that this journey might be a little scary.

Don't be scared. Be prepared and know that if you don't take certain precautions some interesting things will start to happen. What precautions should you take ? I suggest you start by writing out a detailed list of all association issuers you would like the manager to handle. This is a very important first step. The reason is that all managers are NOT created equal.

What I mean is certain managers / management companies have a certain personality / knowledge type. This personalty / knowledge type can mean a lot if you are looking for the manager to make certain your newly approved balcony reconstruction runs smoothly without delays and cost over-runs. Therefore; the manager MUST know construction planning; bidding process; time-lines and contracts. If your manager has never been involved in or had education in the above then your association could be heading down a very interesting road, and that road could cost you a lot on money.

So the moral of this story is for you to know the needs of your association and make sure the manager is equipped with the knowledge / expertise to handle the many obstacles that will come along.

If you would like help in hiring a manager, or if you have other questions regarding association management feel free to write me anytime.

Frank