As a homeowners association president, Greenacres resident Allen Borza was frustrated by the process of hiring companies for community-related jobs such as painting, landscaping and roofing.
Bid responses would be inconsistent – one company may landscape “as needed,” another 25 times per year – and background and licensing checks were time consuming.
So as an entrepreneur, the 29-year-old started working on web-based software to connect community associations with vendors, while also streamlining the process of requests-for-proposals and the pre-screening of companies.
In October, after more than two years of research and legwork, Borza, with co-founder Gerry Coeppicus, 50, launched CAMassistant.com – a website where property managers can pitch jobs to qualified vendors and companies can bid for projects. CAM stands for Community Association Manager.
“Now the property managers don’t have to spend as much time finding vendors and clearing all their credentials,” said Borza, who in 2008 founded the suburban Lake Worth-based graphic design company Green Group Studio. “It’s an all-in-one solution for property managers.”
The way it works is property managers submit a request-for-proposal on the website. Eligible companies, which have already had their background checks performed by CAMassistant.com, are sent e-mails alerting them to the job. Vendors can then submit proposals in a uniform format that takes the guesswork out of hiring.
“The vendors have to submit their liability insurance information and professional licenses, which is all uploaded onto the website,” Borza said. “It’s just a more efficient way for property managers to get their jobs done.”
Companies pay a one-time $99 pre-screening fee to participate in the website bidding process. The fee is refundable if the company doesn’t get a job within one year of submitting information. There is also a referral fee charged each time a company is awarded a job.
The site is free for property managers.
Although CAMassistant.com just went live, Borza and Coeppicus have been scouting out trade shows for more than a year to recruit companies and refine the system with expert advice.
Borza said the site already has several vendors signed up and is working on three requests-for-proposals.
The company, which is headquartered on Lake Worth Road west of Florida’s Turnpike, is also looking to add about 20 employees to its current staff of 18.
“This is a network that provides apples-to-apples proposals,” Borza said. “Inconsistency is not an option.”
Source: The Palm Beach Post, West Palm Beach, Fla., Kimberly Miller. Distributed by MCT Information Services.
Monday, November 7, 2011
Monday, March 21, 2011
Should Florida dump the Office of the Condominium Ombudsman?
A new Florida bill proposes to do away with more government services, including the closure of the Office of the Condominium Ombudsman, the agency dedicated to assisting and educating condo owners and boards about the law. The bill also seeks to shut down the Division of Florida Condominiums, Timeshares and Mobile Homes.
Does that make sense? I don’t think so, considering how many questions and concerns I hear about on a weekly, often daily, basis from owners and board members. Florida does not offer a whole lot of assistance to owners and board members trying to navigate the complex world of community association law, law that seems to change every year.
Here is the mission statement of the Office of the Condominium Ombudsman: “It is the mission of the Office of the Condominium Ombudsman to improve the quality of life for Florida condominium owners through prompt, professional and courteous service as a neutral, informative and accessible resource.”
Among the office’s duties:
To act as liaison between the division, unit owners, boards of directors, board members, community association managers, and other affected parties. The ombudsman shall develop policies and procedures to assist unit owners, boards of directors, board members, community association managers, and other affected parties to understand their rights and responsibilities as set forth in this chapter and the condominium documents governing their respective association. The ombudsman shall coordinate and assist in the preparation and adoption of educational and reference material, and shall endeavor to coordinate with private or volunteer providers of these services, so that the availability of these resources is made known to the largest possible audience.
To monitor and review procedures and disputes concerning condominium elections or meetings, including, but not limited to, recommending that the division pursue enforcement action in any manner where there is reasonable cause to believe that election misconduct has occurred.
To monitor and review procedures and disputes concerning condominium elections or meetings, including, but not limited to, recommending that the division pursue enforcement action in any manner where there is reasonable cause to believe that election misconduct has occurred.
Who else will play such an important role? Nobody. Again, owners and board members will be left to their own resources to learn more about how the law is supposed to work.
I have personal sent many a reader to the Ombudsman for help, and I have yet to hear back from someone who wasn’t satisfied. However, I also realize the office is not perfect. If anything, it should be expanded. Currently there are two offices, in Tallahassee and Fort Lauderdale, to handle all of the calls and questions of community association owners across the state. And closing down the Division of Florida Condominiums, Timeshares and Mobile Homes leaves community association dwellers and directors with even less protections and resources.
What do you say? Have you turned to the Office of the Condominium Ombudsman for help, or the Division? What was your experience? Do you believe the office and/or Division should be shut down? Send an e-mail to dvasquez@sunsentinel.com
Does that make sense? I don’t think so, considering how many questions and concerns I hear about on a weekly, often daily, basis from owners and board members. Florida does not offer a whole lot of assistance to owners and board members trying to navigate the complex world of community association law, law that seems to change every year.
Here is the mission statement of the Office of the Condominium Ombudsman: “It is the mission of the Office of the Condominium Ombudsman to improve the quality of life for Florida condominium owners through prompt, professional and courteous service as a neutral, informative and accessible resource.”
Among the office’s duties:
To act as liaison between the division, unit owners, boards of directors, board members, community association managers, and other affected parties. The ombudsman shall develop policies and procedures to assist unit owners, boards of directors, board members, community association managers, and other affected parties to understand their rights and responsibilities as set forth in this chapter and the condominium documents governing their respective association. The ombudsman shall coordinate and assist in the preparation and adoption of educational and reference material, and shall endeavor to coordinate with private or volunteer providers of these services, so that the availability of these resources is made known to the largest possible audience.
To monitor and review procedures and disputes concerning condominium elections or meetings, including, but not limited to, recommending that the division pursue enforcement action in any manner where there is reasonable cause to believe that election misconduct has occurred.
To monitor and review procedures and disputes concerning condominium elections or meetings, including, but not limited to, recommending that the division pursue enforcement action in any manner where there is reasonable cause to believe that election misconduct has occurred.
Who else will play such an important role? Nobody. Again, owners and board members will be left to their own resources to learn more about how the law is supposed to work.
I have personal sent many a reader to the Ombudsman for help, and I have yet to hear back from someone who wasn’t satisfied. However, I also realize the office is not perfect. If anything, it should be expanded. Currently there are two offices, in Tallahassee and Fort Lauderdale, to handle all of the calls and questions of community association owners across the state. And closing down the Division of Florida Condominiums, Timeshares and Mobile Homes leaves community association dwellers and directors with even less protections and resources.
What do you say? Have you turned to the Office of the Condominium Ombudsman for help, or the Division? What was your experience? Do you believe the office and/or Division should be shut down? Send an e-mail to dvasquez@sunsentinel.com
Tuesday, January 18, 2011
HOAs fight back against homeowner behind on fees
Throughout South Florida, where homeowner associations reign over the fading fortunes of gated communities and condominiums, governing boards are using more aggressive – some say guerrilla – tactics to collect late fees.
Emboldened by a new law that allows boards to ban non-paying homeowners from community common areas, associations also are restricting residents’ access to their homes by disabling devices that allow automatic entry into neighborhoods.
As foreclosures swelled with the real estate collapse, associations begged lawmakers last year for more muscle to recover delinquent homeowner dues, which typically go hand-in-hand with missed mortgage payments.
They complain banks are slow to foreclose on properties with bulging association fees because they must pay the bills after repossession. The result: homes wallowing in years of association debt.
The argument behind the law is that the owners who are not paying for the maintenance of facilities, such as pools, clubhouses and tennis courts, should not get to use them.
But a wider interpretation is also forcing some debtors to wait in the visitors’ line at entrance gates. In condominiums where key fobs are used to gain entrance, homeowners with association debt sneak in behind other residents or head to the security desk for permission to enter.
Residents say blocking access to their homes is just bullying and in conflict with other language in the law.
Attorneys who represent associations say it’s one of the most effective ways to collect late fees – along with turning off cable TV.
“We are beyond the days when you tar and feather people, and I don’t think we can put a scarlet letter on someone,” said attorney Gary Poliakoff, whose Fort Lauderdale-based firm represents associations. “These are some harsh measures, but they are causing the owner to reflect on the fact that they are forcing others to pick up the burden of maintaining the community.”
At Palm City’s Piper’s Landing, visitors of non-paying residents are not allowed to drive into the community; they must be picked up at the gate by the resident and shuttled inside. Food delivery personnel are similarly barred from entering.
Association dues typically vary by type of home, but a recent real estate listing showed the annual neighborhood dues at Piper’s Landing as $4,736 for a four-bedroom home. One resident said a social membership in the community’s club costs about $15,000 annually.
Piper’s Landing officials declined to comment, but for an idea of community morale, consider an admonishment in a summer letter to residents about “heckling, name-calling, shouting out comments and just generally being disorderly” at board meetings.
“If you cannot act like ladies and gentlemen, do not attend meetings in the future,” the letter states.
One association attorney said she has heard of the formation of “citizen brigades” to enforce the new law, and even the removal of mailbox doors to persuade residents to pay.
“I told them they couldn’t do that,” said Donna Berger, managing partner at Katzman, Garfinkel and Berger in Fort Lauderdale and executive director of the Community Advocacy Network. “Tempers are high.”
Homeowners facing a resident entrance ban point to a part of the law that says “suspension of common-area-use rights do not impair the right of an owner or tenant to have vehicular and pedestrian ingress to and egress from the parcel.”
Daniel Cianciotto, a resident of the 500-home Canyon Lakes community in suburban Boynton Beach, argued that portion of the law last month when his association moved to deactivate his transponder.
In foreclosure and with a $17,000 debt to the homeowner association, including late fees and attorney fees, Cianciotto said a grievance committee sided with him against the board.
“I was angry as can be and felt violated,” Cianciotto said. “Why do I have to wait to get to my house? That’s my house. Nobody should get in the way of me getting there.”
A four-bedroom Canyon Lakes home is listed for sale online with a $325-a-month association fee.
Berger said restricting resident access is a gray area of the law. Technically, residents still can reach their homes; they just have to go through the same process as visitors.
The Community Advocacy Network, which supported last year’s legislation on the common-use-area restrictions, is going back to lawmakers this year asking for clarifications in the law.
One request is for stronger language allowing the suspension of cable TV.
“You would be surprised how compelling it is when HBO and Showtime may be turned off,” Berger said. “They seem to find the money then.”
Source: The Palm Beach Post, Fla. Distributed by McClatchy-Tribune Information Services.
Emboldened by a new law that allows boards to ban non-paying homeowners from community common areas, associations also are restricting residents’ access to their homes by disabling devices that allow automatic entry into neighborhoods.
As foreclosures swelled with the real estate collapse, associations begged lawmakers last year for more muscle to recover delinquent homeowner dues, which typically go hand-in-hand with missed mortgage payments.
They complain banks are slow to foreclose on properties with bulging association fees because they must pay the bills after repossession. The result: homes wallowing in years of association debt.
The argument behind the law is that the owners who are not paying for the maintenance of facilities, such as pools, clubhouses and tennis courts, should not get to use them.
But a wider interpretation is also forcing some debtors to wait in the visitors’ line at entrance gates. In condominiums where key fobs are used to gain entrance, homeowners with association debt sneak in behind other residents or head to the security desk for permission to enter.
Residents say blocking access to their homes is just bullying and in conflict with other language in the law.
Attorneys who represent associations say it’s one of the most effective ways to collect late fees – along with turning off cable TV.
“We are beyond the days when you tar and feather people, and I don’t think we can put a scarlet letter on someone,” said attorney Gary Poliakoff, whose Fort Lauderdale-based firm represents associations. “These are some harsh measures, but they are causing the owner to reflect on the fact that they are forcing others to pick up the burden of maintaining the community.”
At Palm City’s Piper’s Landing, visitors of non-paying residents are not allowed to drive into the community; they must be picked up at the gate by the resident and shuttled inside. Food delivery personnel are similarly barred from entering.
Association dues typically vary by type of home, but a recent real estate listing showed the annual neighborhood dues at Piper’s Landing as $4,736 for a four-bedroom home. One resident said a social membership in the community’s club costs about $15,000 annually.
Piper’s Landing officials declined to comment, but for an idea of community morale, consider an admonishment in a summer letter to residents about “heckling, name-calling, shouting out comments and just generally being disorderly” at board meetings.
“If you cannot act like ladies and gentlemen, do not attend meetings in the future,” the letter states.
One association attorney said she has heard of the formation of “citizen brigades” to enforce the new law, and even the removal of mailbox doors to persuade residents to pay.
“I told them they couldn’t do that,” said Donna Berger, managing partner at Katzman, Garfinkel and Berger in Fort Lauderdale and executive director of the Community Advocacy Network. “Tempers are high.”
Homeowners facing a resident entrance ban point to a part of the law that says “suspension of common-area-use rights do not impair the right of an owner or tenant to have vehicular and pedestrian ingress to and egress from the parcel.”
Daniel Cianciotto, a resident of the 500-home Canyon Lakes community in suburban Boynton Beach, argued that portion of the law last month when his association moved to deactivate his transponder.
In foreclosure and with a $17,000 debt to the homeowner association, including late fees and attorney fees, Cianciotto said a grievance committee sided with him against the board.
“I was angry as can be and felt violated,” Cianciotto said. “Why do I have to wait to get to my house? That’s my house. Nobody should get in the way of me getting there.”
A four-bedroom Canyon Lakes home is listed for sale online with a $325-a-month association fee.
Berger said restricting resident access is a gray area of the law. Technically, residents still can reach their homes; they just have to go through the same process as visitors.
The Community Advocacy Network, which supported last year’s legislation on the common-use-area restrictions, is going back to lawmakers this year asking for clarifications in the law.
One request is for stronger language allowing the suspension of cable TV.
“You would be surprised how compelling it is when HBO and Showtime may be turned off,” Berger said. “They seem to find the money then.”
Source: The Palm Beach Post, Fla. Distributed by McClatchy-Tribune Information Services.
Tuesday, December 14, 2010
Expiration of FHA/Fannie Mae Approvals: Will Your Condominium Units Qualify for Mortgage Financing?
The United States Department of Housing and Urban Development (“HUD”) announced recertification deadlines for condominium projects that had received approval for FHA-backed mortgage insurance prior to October 1, 2008.
Initial Project Approval Dates Expiration Date
1972 – 1980 December 31, 2010
1981 – 1985 December 31, 2010
1986 – 1990 May 31, 2011
1991 – 1995 July 31, 2011
1996 – 2000 August 31, 2011
2001 – 2005 September 30, 2011
2006 – 2008 (Sept) March 31, 2011
In the past many association leaders viewed FHA financing negatively. The decline in real estate values and banking crisis has eliminated many options from conventional lenders. Lenders will not finance properties if the loan is not acceptable to the secondary market (Fannie Mae, Freddie Mac and the like). FHA requires a minimum down payment of only 3.5%, but it also requires proof of affordability and satisfactory credit scores. FHA guidelines limit housing costs to 31% of income which means a new buyer must earn 3 times the monthly mortgage and association dues.
Whether you think the economy is on its way to recovery, or gearing up for a double dip recession, having your community approved as a FHA/Fannie Mae eligible project is one way to increase the marketability of units in your condominium.
Fannie Mae is a government-sponsored enterprise (GSE) chartered by Congress with a stated mission to provide liquidity, stability and affordability to the U.S. housing and mortgage markets and to increase the amount of funds available in order to make homeownership and rental housing more available and affordable. Fannie Mae works with mortgage bankers, brokers and other primary mortgage market partners to help ensure they have funds to lend to home buyers at affordable rates.
If your unit owners are experiencing difficulty in selling or refinancing their units, and your community is not a Fannie Mae or FHA approved project, you may want to investigate whether it would be worthwhile for your project to become approved. Fannie Mae or FHA approval just may bring more buyers to the table for those units “for sale” because financing will be more readily available. Additionally, the increased marketability of those units currently for sale in a Fannie Mae or FHA approved project not only helps the current sellers, but also serves to increase the value of all units in the condominium. This will not only help owners currently looking to sell or refinance, but will also help those unit owners who may wish to sell or refinance their units in the future.
While there are fees associated with the application for Fannie Mae or FHA project approval and the securing of an attorney review letter in support of same, the unit owners of your condominium, whether or not their units are on the market at the current time, might agree that such costs and fees are worthwhile to assist in the free flow of funds to be lent to homebuyers in your condominium at affordable rates.
Initial Project Approval Dates Expiration Date
1972 – 1980 December 31, 2010
1981 – 1985 December 31, 2010
1986 – 1990 May 31, 2011
1991 – 1995 July 31, 2011
1996 – 2000 August 31, 2011
2001 – 2005 September 30, 2011
2006 – 2008 (Sept) March 31, 2011
In the past many association leaders viewed FHA financing negatively. The decline in real estate values and banking crisis has eliminated many options from conventional lenders. Lenders will not finance properties if the loan is not acceptable to the secondary market (Fannie Mae, Freddie Mac and the like). FHA requires a minimum down payment of only 3.5%, but it also requires proof of affordability and satisfactory credit scores. FHA guidelines limit housing costs to 31% of income which means a new buyer must earn 3 times the monthly mortgage and association dues.
Whether you think the economy is on its way to recovery, or gearing up for a double dip recession, having your community approved as a FHA/Fannie Mae eligible project is one way to increase the marketability of units in your condominium.
Fannie Mae is a government-sponsored enterprise (GSE) chartered by Congress with a stated mission to provide liquidity, stability and affordability to the U.S. housing and mortgage markets and to increase the amount of funds available in order to make homeownership and rental housing more available and affordable. Fannie Mae works with mortgage bankers, brokers and other primary mortgage market partners to help ensure they have funds to lend to home buyers at affordable rates.
If your unit owners are experiencing difficulty in selling or refinancing their units, and your community is not a Fannie Mae or FHA approved project, you may want to investigate whether it would be worthwhile for your project to become approved. Fannie Mae or FHA approval just may bring more buyers to the table for those units “for sale” because financing will be more readily available. Additionally, the increased marketability of those units currently for sale in a Fannie Mae or FHA approved project not only helps the current sellers, but also serves to increase the value of all units in the condominium. This will not only help owners currently looking to sell or refinance, but will also help those unit owners who may wish to sell or refinance their units in the future.
While there are fees associated with the application for Fannie Mae or FHA project approval and the securing of an attorney review letter in support of same, the unit owners of your condominium, whether or not their units are on the market at the current time, might agree that such costs and fees are worthwhile to assist in the free flow of funds to be lent to homebuyers in your condominium at affordable rates.
Monday, November 15, 2010
Property managers make money off condos’ insurance
Your property management company may be making money off your condo association’s insurance policy.
Some say that’s a conflict of interest because management companies also help associations pick their insurance.
“Referrals should be based on good service only and not financial incentives,” wrote Jerri Franz, a spokeswoman for the Department of Financial Services. On Monday, the department will hold hearings on other perks that insurance agents shouldn’t be allowed to offer, but commission splitting isn’t expected to be among them.
Continental Group, the state’s largest condo property management company, says its sister company, Worthington Insurance, splits commissions with partner insurance agencies – when condos select them – to save money for the condos it manages.
Insurance premiums make up the largest part of most condominium buildings’ expenses and their annual commissions can add up to tens of thousands of dollars.
Board members of some condo associations criticize the commission-sharing arrangement, some defend it, while others say they were not aware of it.
Continental officials say they put the information in writing, as required by state law, and also tell condo board members.
Possible conflicts
Condo board members rely on their property managers when making a host of decisions. Among them, soliciting and analyzing bids for insurance and other services and making recommendations.
“They carry a lot of clout when it comes to recommendations,” said Paul Mack, president of Mack, Mack & Waltz Insurance Group in Deerfield Beach, which splits commissions for a couple of buildings managed by Continental. The other insurance agency that partners with Continental in South Florida is Smith Watson Parker in Hollywood.
Andrew Lester, Continental’s senior vice president, said the partnerships help property managers do a better job. For instance, he said a Fort Lauderdale condo managed by Continental received a lower quote on their insurance premium from Smith Watson Parker and led its current insurance agent to match the quote.
“To me, that’s a win for our client. I love it,” he said. If Continental “wasn’t in the insurance business, it wouldn’t be able to influence the market like that.”
Like Continental, Castle Group in Plantation, which manages more than 200 condo associations in the state, also is in the insurance business. The company has an in-house insurance agency and it owns a security company.
“It is a conflict,” acknowledged James Donnelly, Castle’s president. He said his company’s property managers address that by staying out of bids dealing with insurance or security: The sealed bids are sent directly to the board.
Travers Hartnett, an insurance agent for homeowner and condominium associations, said property managers gain competitive information for their affiliate insurance agencies.
“It’s not intended to be something bad. But the way it operates in the real world, it’s a real disincentive for all parties to get a better deal,” said Hartnett, owner of Travers Hartnett Insurance Agency in Delray Beach. “The preferred agent is...in some cases, given more information than they should.”
The state is considering rules to clarify a state law that prohibits rebates to condo associations or other policyholders to buy insurance, such as an agent paying for an appraisal or lowering commissions.
Lester said Continental offers insurance services to “provide … as many options and as much education as possible. … Some board members say, ‘No thank you. We know you’re providing that service, but we feel there is a conflict of interest.’ We say, ‘Great.’”
Mixed reaction
A “no thanks” doesn’t guarantee the property manager will back down. Continental offered its insurance service several times to a condo association in central Broward County, based on three notes from company representatives and a letter from the preferred insurance agent.
“I cannot tell you how many times Continental tried to persuade me to change insurance agents,” said the condo association’s board president, who said she does not want to be identified until her building finds a new property manager.
She said her decision was partly based on a bad experience with another Continental affiliate whose employee repeatedly showed up after hours for projects and then tried to bill for overtime.
Several board members said Continental representatives offered them tickets to sporting events.
State law prohibits board members and property managers from accepting anything of value from people providing or proposing to provide services to the association.
Continental executives said it’s against company policy to give gifts to condo board members – and that’s reviewed during employee training.
“We don’t promote that so I have no knowledge of any of property managers offering tickets,” said Tim O’Keefe, the chief executive officer of Continental. He added that the company does not have box seats to sporting events.
Several condo board members said they’re pleased with Continental and don’t mind the commission-sharing arrangements.
Larry Rosenberg, board president of Delray Grande Condominium Association in Delray Beach, said he didn’t know the roughly $10,000 annual insurance commission his building pays is split up between Continental’s affiliate and Smith Watson Parker.
But he said the board probably would have gone with the insurance agency anyway because its price was so much lower than others. “I don’t think it would have changed” anything, Rosenberg said. “It was a no-brainer. … We did our homework.”
Agents debate
Some insurance agents say they’ve chosen not to participate in commission-sharing. “We don’t think they’re legal. We don’t practice that because it’s rebating of insurance,” said Tom Lynch, president of Plastridge Insurance Agency and a board member for state-backed Citizens Property Insurance.
Representatives of Smith Watson Parker said other agents criticize the agreements because they’re forced to compete.
“We get an introduction that we might not otherwise get. That’s what we feel we’re paying for … We don’t get any special information or any special treatment,” said Andrew Spargo, the agency’s chief operating officer.
Like other property management companies, Continental and its publicly traded parent company, FirstService Corp., own several subsidiaries that may be recommended by property managers when condo boards are looking to hire electricians, plumbers and gardeners.
State law requires property managers to disclose to condos they manage if they have a financial interest in vendors, but it does not bar them from applying for the work, said Alexis Lambert, a spokeswoman for the state’s Department of Business & Professional Regulation, which regulates businesses and condos.
Source: Sun Sentinel, Fort Lauderdale, Fla., Julie Patel. Distributed by McClatchy-Tribune Information Services.
Some say that’s a conflict of interest because management companies also help associations pick their insurance.
“Referrals should be based on good service only and not financial incentives,” wrote Jerri Franz, a spokeswoman for the Department of Financial Services. On Monday, the department will hold hearings on other perks that insurance agents shouldn’t be allowed to offer, but commission splitting isn’t expected to be among them.
Continental Group, the state’s largest condo property management company, says its sister company, Worthington Insurance, splits commissions with partner insurance agencies – when condos select them – to save money for the condos it manages.
Insurance premiums make up the largest part of most condominium buildings’ expenses and their annual commissions can add up to tens of thousands of dollars.
Board members of some condo associations criticize the commission-sharing arrangement, some defend it, while others say they were not aware of it.
Continental officials say they put the information in writing, as required by state law, and also tell condo board members.
Possible conflicts
Condo board members rely on their property managers when making a host of decisions. Among them, soliciting and analyzing bids for insurance and other services and making recommendations.
“They carry a lot of clout when it comes to recommendations,” said Paul Mack, president of Mack, Mack & Waltz Insurance Group in Deerfield Beach, which splits commissions for a couple of buildings managed by Continental. The other insurance agency that partners with Continental in South Florida is Smith Watson Parker in Hollywood.
Andrew Lester, Continental’s senior vice president, said the partnerships help property managers do a better job. For instance, he said a Fort Lauderdale condo managed by Continental received a lower quote on their insurance premium from Smith Watson Parker and led its current insurance agent to match the quote.
“To me, that’s a win for our client. I love it,” he said. If Continental “wasn’t in the insurance business, it wouldn’t be able to influence the market like that.”
Like Continental, Castle Group in Plantation, which manages more than 200 condo associations in the state, also is in the insurance business. The company has an in-house insurance agency and it owns a security company.
“It is a conflict,” acknowledged James Donnelly, Castle’s president. He said his company’s property managers address that by staying out of bids dealing with insurance or security: The sealed bids are sent directly to the board.
Travers Hartnett, an insurance agent for homeowner and condominium associations, said property managers gain competitive information for their affiliate insurance agencies.
“It’s not intended to be something bad. But the way it operates in the real world, it’s a real disincentive for all parties to get a better deal,” said Hartnett, owner of Travers Hartnett Insurance Agency in Delray Beach. “The preferred agent is...in some cases, given more information than they should.”
The state is considering rules to clarify a state law that prohibits rebates to condo associations or other policyholders to buy insurance, such as an agent paying for an appraisal or lowering commissions.
Lester said Continental offers insurance services to “provide … as many options and as much education as possible. … Some board members say, ‘No thank you. We know you’re providing that service, but we feel there is a conflict of interest.’ We say, ‘Great.’”
Mixed reaction
A “no thanks” doesn’t guarantee the property manager will back down. Continental offered its insurance service several times to a condo association in central Broward County, based on three notes from company representatives and a letter from the preferred insurance agent.
“I cannot tell you how many times Continental tried to persuade me to change insurance agents,” said the condo association’s board president, who said she does not want to be identified until her building finds a new property manager.
She said her decision was partly based on a bad experience with another Continental affiliate whose employee repeatedly showed up after hours for projects and then tried to bill for overtime.
Several board members said Continental representatives offered them tickets to sporting events.
State law prohibits board members and property managers from accepting anything of value from people providing or proposing to provide services to the association.
Continental executives said it’s against company policy to give gifts to condo board members – and that’s reviewed during employee training.
“We don’t promote that so I have no knowledge of any of property managers offering tickets,” said Tim O’Keefe, the chief executive officer of Continental. He added that the company does not have box seats to sporting events.
Several condo board members said they’re pleased with Continental and don’t mind the commission-sharing arrangements.
Larry Rosenberg, board president of Delray Grande Condominium Association in Delray Beach, said he didn’t know the roughly $10,000 annual insurance commission his building pays is split up between Continental’s affiliate and Smith Watson Parker.
But he said the board probably would have gone with the insurance agency anyway because its price was so much lower than others. “I don’t think it would have changed” anything, Rosenberg said. “It was a no-brainer. … We did our homework.”
Agents debate
Some insurance agents say they’ve chosen not to participate in commission-sharing. “We don’t think they’re legal. We don’t practice that because it’s rebating of insurance,” said Tom Lynch, president of Plastridge Insurance Agency and a board member for state-backed Citizens Property Insurance.
Representatives of Smith Watson Parker said other agents criticize the agreements because they’re forced to compete.
“We get an introduction that we might not otherwise get. That’s what we feel we’re paying for … We don’t get any special information or any special treatment,” said Andrew Spargo, the agency’s chief operating officer.
Like other property management companies, Continental and its publicly traded parent company, FirstService Corp., own several subsidiaries that may be recommended by property managers when condo boards are looking to hire electricians, plumbers and gardeners.
State law requires property managers to disclose to condos they manage if they have a financial interest in vendors, but it does not bar them from applying for the work, said Alexis Lambert, a spokeswoman for the state’s Department of Business & Professional Regulation, which regulates businesses and condos.
Source: Sun Sentinel, Fort Lauderdale, Fla., Julie Patel. Distributed by McClatchy-Tribune Information Services.
Wednesday, October 20, 2010
New law requires condo education
Walter Rosenbaum will be among the first Florida condominium board members to comply with a new law that steers volunteer directors toward enrolling in a state-approved course on state condo law – an effort that for him means going back to school.
Rosenbaum, who will take a state-approved course for certification to serve on a condo board this week, is leading the way for other board members of condo associations. As of July 1, newly-elected or appointed directors must complete an educational course certified by the Florida Department of Business and Professional Regulation or sign a statement that they have read Florida Statute 718 and all of their community’s governing documents.
The law only covers condo board members, not those serving on homeowners boards.
“Once I got interested in serving on my condo board, I thought to myself ‘You can’t have too much information,’” said Rosenbaum, who joined his board more than two years ago. He now serves as secretary for the Quadomain Condominium Association, which runs a community of four 27-story buildings comprised of 810 condo units.
New seminars may begin popping up across the state to help those who wish to become certified, said Alexis Antonacci Lambert, a spokeswoman for the DBPR.
South Florida Attorney Eric Glazer is among the first seminar hosts to be approved by the DBPR to certify new community board directors. “Over the years, the Legislature received many complaints from unit owners around the state about the lack of available condominium education and the inability of their boards of directors to comply with Florida Statute 718,” Glazer said. “In response, [lawmakers] thought best to impose a requirement of all board members to become certified, and one way is by attending an educational seminar.”
Glazer’s first free, 2.5-hour seminar will be held on Thursday at the Hard Rock Hotel and Casino in Hollywood. It will focus on board member responsibilities under Florida law regarding such topics as budgets and reserves, financial reporting, condominium operations, records maintenance, access to records, dispute resolution and more.
That seminar has been closed off to new participants as about 150 board members and aspiring board members have already signed up, filling the capacity of the seminar room. The same is true of a second seminar scheduled for Nov. 18. But a third seminar is still open for seating and is scheduled to take place on Dec. 16, beginning at 7 p.m. Anyone who wishes to attend should visit http://www.condocrazeandhoas.com or call .
To help drive condo community students into his seminar, Glazer is offering coffee and dessert, along with a raffle and $100 cash prize.
But the real deal is the education, Rosenbaum said.
“I am hoping to gain a lot from this seminar,” he said. “I want to learn something I don’t already know about state laws and look into what I should do to stay current.”
Rosenbaum points out while serving on a condo board is technically volunteer work, it takes a lot of experience and know-how to do it right. A retired insurance agent, Rosenbaum believes his community board is fortunate to have other members who bring much to the table, including the treasurer, who is a retired public accountant, and a president, who “has had a significant administrative experience.”
But not every board is filled with such knowledgeable board members, which is why Florida lawmakers passed the new law. “The division-approved seminars will help provide those who serve with a working knowledge of state laws and their own community rules and regulations,” said Lambert of the DBPR.
The course may go a long way in helping minimize owner-condo board disputes as well.
“This law absolutely makes sense,” Rosenbaum added.
As a columnist who fields many questions from readers, I must agree. Often the answers are found in the Florida statues and the community documents.
Glazer, on the other hand believes the law has at least one flaw: He doesn’t believe that it makes sense for it to allow for an opt-out of the educational course. “You can become certified by merely signing an affidavit that you read Florida Statute 718 and all your governing documents,” he said. “The truth is, nobody knows if you did or you didn’t, and even if you did, it doesn’t mean you understand it. The law should mandate attendance at a seminar where the basics of [the law] can be learned and discussed.”
For more information:
Other state certification courses include half-day, Board Member Education Certification courses presented by CAM Academy throughout the state. The cost of the course is $35 per person. For information, go to http://www.camacademy.org for a schedule of classes, all or send an e-mail to email@camacademy.org.
To learn more about condo law:
By state law, every community is responsible for making sure each condo owner is provided a current copy of the documents. Anyone who misplaced such documents should contact their condo board and request a new copy.
To read Florida statutes, you can visit a local public library and request a clerk to provide a copy of the volume containing specifically Florida Statute 718.
Online: Visit: http://www.myfloridalicense.com/dbpr/lsc/condominiums/BoardMemberEducation.html.
To check out Florida Statue 718 online, visit: http://www.leg.state.fl.us/Statutes/index.cfm?App_modeDisplay_Statute&URL0700-0799/0718/0718ContentsIndex.html
Source: Sun Sentinel, Fort Lauderdale, Fla., Daniel Vasquez. Distributed by McClatchy-Tribune Information Services.
Rosenbaum, who will take a state-approved course for certification to serve on a condo board this week, is leading the way for other board members of condo associations. As of July 1, newly-elected or appointed directors must complete an educational course certified by the Florida Department of Business and Professional Regulation or sign a statement that they have read Florida Statute 718 and all of their community’s governing documents.
The law only covers condo board members, not those serving on homeowners boards.
“Once I got interested in serving on my condo board, I thought to myself ‘You can’t have too much information,’” said Rosenbaum, who joined his board more than two years ago. He now serves as secretary for the Quadomain Condominium Association, which runs a community of four 27-story buildings comprised of 810 condo units.
New seminars may begin popping up across the state to help those who wish to become certified, said Alexis Antonacci Lambert, a spokeswoman for the DBPR.
South Florida Attorney Eric Glazer is among the first seminar hosts to be approved by the DBPR to certify new community board directors. “Over the years, the Legislature received many complaints from unit owners around the state about the lack of available condominium education and the inability of their boards of directors to comply with Florida Statute 718,” Glazer said. “In response, [lawmakers] thought best to impose a requirement of all board members to become certified, and one way is by attending an educational seminar.”
Glazer’s first free, 2.5-hour seminar will be held on Thursday at the Hard Rock Hotel and Casino in Hollywood. It will focus on board member responsibilities under Florida law regarding such topics as budgets and reserves, financial reporting, condominium operations, records maintenance, access to records, dispute resolution and more.
That seminar has been closed off to new participants as about 150 board members and aspiring board members have already signed up, filling the capacity of the seminar room. The same is true of a second seminar scheduled for Nov. 18. But a third seminar is still open for seating and is scheduled to take place on Dec. 16, beginning at 7 p.m. Anyone who wishes to attend should visit http://www.condocrazeandhoas.com or call .
To help drive condo community students into his seminar, Glazer is offering coffee and dessert, along with a raffle and $100 cash prize.
But the real deal is the education, Rosenbaum said.
“I am hoping to gain a lot from this seminar,” he said. “I want to learn something I don’t already know about state laws and look into what I should do to stay current.”
Rosenbaum points out while serving on a condo board is technically volunteer work, it takes a lot of experience and know-how to do it right. A retired insurance agent, Rosenbaum believes his community board is fortunate to have other members who bring much to the table, including the treasurer, who is a retired public accountant, and a president, who “has had a significant administrative experience.”
But not every board is filled with such knowledgeable board members, which is why Florida lawmakers passed the new law. “The division-approved seminars will help provide those who serve with a working knowledge of state laws and their own community rules and regulations,” said Lambert of the DBPR.
The course may go a long way in helping minimize owner-condo board disputes as well.
“This law absolutely makes sense,” Rosenbaum added.
As a columnist who fields many questions from readers, I must agree. Often the answers are found in the Florida statues and the community documents.
Glazer, on the other hand believes the law has at least one flaw: He doesn’t believe that it makes sense for it to allow for an opt-out of the educational course. “You can become certified by merely signing an affidavit that you read Florida Statute 718 and all your governing documents,” he said. “The truth is, nobody knows if you did or you didn’t, and even if you did, it doesn’t mean you understand it. The law should mandate attendance at a seminar where the basics of [the law] can be learned and discussed.”
For more information:
Other state certification courses include half-day, Board Member Education Certification courses presented by CAM Academy throughout the state. The cost of the course is $35 per person. For information, go to http://www.camacademy.org for a schedule of classes, all or send an e-mail to email@camacademy.org.
To learn more about condo law:
By state law, every community is responsible for making sure each condo owner is provided a current copy of the documents. Anyone who misplaced such documents should contact their condo board and request a new copy.
To read Florida statutes, you can visit a local public library and request a clerk to provide a copy of the volume containing specifically Florida Statute 718.
Online: Visit: http://www.myfloridalicense.com/dbpr/lsc/condominiums/BoardMemberEducation.html.
To check out Florida Statue 718 online, visit: http://www.leg.state.fl.us/Statutes/index.cfm?App_modeDisplay_Statute&URL0700-0799/0718/0718ContentsIndex.html
Source: Sun Sentinel, Fort Lauderdale, Fla., Daniel Vasquez. Distributed by McClatchy-Tribune Information Services.
Thursday, October 14, 2010
Fannie, Freddie get 'robo signing' orders
Loan servicers must double-check foreclosure, REO filings
Fannie Mae and Freddie Mac's federal regulator says loan servicers working for the companies must review affidavits filed in foreclosure proceedings before proceeding to judgment or selling foreclosed properties.
Guidance issued by the Federal Housing Finance Agency on Thursday directs Fannie and Freddie to require that all loan servicers working for the companies take steps similar to those already implemented by lenders implicated in the "robo signing" scandal.
Mortgage servicers working for Fannie and Freddie must not only review their foreclosure processes and remediate any problems they find, but recheck affidavits filed in ongoing foreclosure actions and on "real estate owned" (also known as bank-owned or REO) properties in Fannie's and Freddie's inventories before those properties can be sold.
The four-point policy framework "envisions an orderly and expeditious resolution of foreclosure process issues," providing greater certainty to homeowners, lenders and investors, FHFA said in releasing the guidelines.
It's unclear whether Fannie and Freddie's marching orders will have much of an impact, since many loan servicers have already implemented similar measures.
At least five loan servicers -- Bank of America, GMAC Mortgage, JP Morgan Chase, PNC Financial Services Group Inc. and Litton Loan Servicing -- have temporarily suspended or curtailed foreclosure proceedings and sales of foreclosed properties in 23 states where courts have jurisdiction over the foreclosure process.
The loan servicers say they are reviewing their foreclosure procedures in the wake of allegations that employees handling court filings for some of the companies signed affidavits that contained information they had not personally verified.
Bank of America and GMAC Mortgage have expanded their reviews to non-judicial foreclosure states, and Bank of America has temporarily halted foreclosure sales in all 50 states.
So far, Bank of America and other loan servicers say their reviews haven't turned up evidence that borrowers were foreclosured on improperly.
A Wells Fargo & Co. employee has testified in a Florida lawsuit that she signed hundreds of foreclosure affidavits a day without verifying the information in them, the Wall Street Journal reports. Wells Fargo says it has no plans to initiate a foreclosure moratorium, and that its affidavit procedures and daily auditing "demonstrate that our foreclosure affidavits are accurate."
In the past, when lawyers for homeowners have fought foreclosures on such procedural grounds, they have mostly succeeded in delaying, rather than stopping, foreclosures.
But the "robo signing" scandal has raised the specter of a new onslaught of lawsuits, slowing the flow of foreclosed properties into REO inventories.
Attorneys general in all 50 states have formed a bipartisan group to investigate affidavits and other documents loan servicers have prepared in foreclosing on homeowners.
Some title insurers are balking at insuring title on foreclosed and REO properties. Bank of America has agreed to provide warranties to the nation's largest title insurance underwriter, Fidelity National Financial Inc., and other companies are seeking similar assurances from other lenders.
The American Land Title Association, which has been working with FHFA, Fannie Mae, Freddie Mac, lenders and other stakeholders on the issue, said it supports the guidance issued by FHFA to Fannie and Freddie, but continues to look to lenders to provide "appropriate indemnities."
By Inman News
Fannie Mae and Freddie Mac's federal regulator says loan servicers working for the companies must review affidavits filed in foreclosure proceedings before proceeding to judgment or selling foreclosed properties.
Guidance issued by the Federal Housing Finance Agency on Thursday directs Fannie and Freddie to require that all loan servicers working for the companies take steps similar to those already implemented by lenders implicated in the "robo signing" scandal.
Mortgage servicers working for Fannie and Freddie must not only review their foreclosure processes and remediate any problems they find, but recheck affidavits filed in ongoing foreclosure actions and on "real estate owned" (also known as bank-owned or REO) properties in Fannie's and Freddie's inventories before those properties can be sold.
The four-point policy framework "envisions an orderly and expeditious resolution of foreclosure process issues," providing greater certainty to homeowners, lenders and investors, FHFA said in releasing the guidelines.
It's unclear whether Fannie and Freddie's marching orders will have much of an impact, since many loan servicers have already implemented similar measures.
At least five loan servicers -- Bank of America, GMAC Mortgage, JP Morgan Chase, PNC Financial Services Group Inc. and Litton Loan Servicing -- have temporarily suspended or curtailed foreclosure proceedings and sales of foreclosed properties in 23 states where courts have jurisdiction over the foreclosure process.
The loan servicers say they are reviewing their foreclosure procedures in the wake of allegations that employees handling court filings for some of the companies signed affidavits that contained information they had not personally verified.
Bank of America and GMAC Mortgage have expanded their reviews to non-judicial foreclosure states, and Bank of America has temporarily halted foreclosure sales in all 50 states.
So far, Bank of America and other loan servicers say their reviews haven't turned up evidence that borrowers were foreclosured on improperly.
A Wells Fargo & Co. employee has testified in a Florida lawsuit that she signed hundreds of foreclosure affidavits a day without verifying the information in them, the Wall Street Journal reports. Wells Fargo says it has no plans to initiate a foreclosure moratorium, and that its affidavit procedures and daily auditing "demonstrate that our foreclosure affidavits are accurate."
In the past, when lawyers for homeowners have fought foreclosures on such procedural grounds, they have mostly succeeded in delaying, rather than stopping, foreclosures.
But the "robo signing" scandal has raised the specter of a new onslaught of lawsuits, slowing the flow of foreclosed properties into REO inventories.
Attorneys general in all 50 states have formed a bipartisan group to investigate affidavits and other documents loan servicers have prepared in foreclosing on homeowners.
Some title insurers are balking at insuring title on foreclosed and REO properties. Bank of America has agreed to provide warranties to the nation's largest title insurance underwriter, Fidelity National Financial Inc., and other companies are seeking similar assurances from other lenders.
The American Land Title Association, which has been working with FHFA, Fannie Mae, Freddie Mac, lenders and other stakeholders on the issue, said it supports the guidance issued by FHFA to Fannie and Freddie, but continues to look to lenders to provide "appropriate indemnities."
By Inman News
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