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Considerations for Community Associations When Reopening Their Communities and Common Elements due to COVID-19

May 18, 2020 Community Association Industry Legal Blog

The State of Florida is slowly but surely opening back up after closures from the COVID-19 pandemic.  Governor DeSantis’s Stay at Home Order expired on April 30th, and Executive Order 20-112, effective May 4th, was enacted as Phase I in the reopening process.  Both State and local governments have been […]

Community Association Reserve Funding: Pooled Method vs. Component Method

April 14, 2017 Community Association Industry Legal Blog

Reserve funding for certain common element items is required for community associations under Florida law. Specifically, condominium associations must fund reserves for roof replacement, building painting, pavement resurfacing and any other item that has a maintenance expense or replacement cost exceeding $10,000. Fla. Stat. § 718.112(2)(f). For homeowners’ associations, if the developer initially established reserve accounts or the members affirmatively elect to provide for reserves, then the association must fund those reserve items in future budgets. Fla. Stat. § 720.303(6)(b).

Your Homeowners’ Association may not be Taking Advantage of a Favorable Tax Break

July 25, 2016 Community Association Industry Legal Blog

A major expense for many homeowners’ and condominium owners’ associations is the cost of the utilities for common areas of the communities. The good news for such associations, however, is that they are entitled to an exemption for the sales tax related to their utilities as long as a few requirements are met—a fact of which many associations are not even aware.

Community Association Managers Beware: Unlicensed Practice of Law

June 28, 2016 Community Association Industry Legal Blog

Community Association Managers (CAMS) in Florida are vital to the survival of condominium associations and homeowners’ associations. Associations and their board members rely on CAMS to ensure the associations run smoothly. CAMS must be licensed through the Florida Department of Business and Professional Regulation, and are governed by the Florida Statutes and the Florida Administrative Code. See Fla. Stat. 468.431-461.438 and Florida Administrative Code 61E14-2.001.

Is Your Community Association Board Making Sound Decisions on Your Behalf?

March 31, 2016 Community Association Industry Legal Blog

The directors of Florida community association are obligated to discharge their responsibilities to the community in good faith. Board decisions are generally protected by the “business judgment rule” and the theory behind the business judgment rule is that Courts should not substitute their judgment for the judgment of the elected or appointed board members. Simply stated, Courts must give deference to a community association’s decision if that decision is within the scope of the association’s authority and it is reasonable – that is, not arbitrary, capricious, or in bad faith.

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