A NEW YEAR UNLIKE THOSE IN THE PAST

By Eric Glazer, Esq.

Published January 9, 2023

 

Iím not going to tell you that you should have a bunch of new year resolutions that you must follow.  We all know how long they last.  So, Iíll only suggest one at the end of this article.  However, I am going to tell you that if your budget still does not contain reserve funding, your new year is already off to a bad start.

 

Some of you think that since you are allowed to waive reserves for the years of 2023 and 2024, why not take advantage of it for another two years.  In other words, youíre still thinking that itís a good idea to waive reserves for another 2 years.  Iím sorry, that doesnít make you smart, that makes you an idiot.  Did you learn anything from Surfside?

 

Starting two years from right now, reserves will be mandatory.  Why not get a jump on funding them now so that you wind up paying a little less than expected in 2025?

 

To give an example, if you start reserving for the roof today instead of 2025, you wind up paying less for the roof each month, two years from now. 

 

It is absolutely amazing me that there are still condo associations that are not including reserves in their budget.  It also amazes me just how many associations still donít know about the new laws and how much itís going to cost them.

 

Iíll say for sure and for certain that even though the law requires reserve funding in 2025, there will be many associations that still waive the funding of reserves.   Their boards and community members have no idea about required fire safety, milestone inspections and mandatory reserves.  These associations in effect will be self-policed.  It will take a unit owner in that condo to file a complaint with the DBPR.  The DBPR will most likely require that association to immediately start funding a reserve account and make up the money that should have been there had the association started on time.  It will be expensive to catch up.

 

Why not start the process now?  Why not get every owner used to the concept that their assessments are going up?

 

There are still people out there who believe this new law isnít going to happen.   They believe that their assessments will remain the same and The Florida Legislature will end up repealing these new laws.  I disagree.  There wasnít a single vote in opposition to these new laws in The Florida Legislature.  Not one.  Every legislator understood the importance of these new laws after The Champlain Towers collapsed in Surfside, killing 98 people as they slept in their beds.

 

I will tell you that there is one New Yearís resolution all Board members should have:  How about adopting a budget that at a minimum funds reserves at 50%?  Do it now and the hit in two years wonít be so terrible.

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About HOA & Condo Blog

Eric Glazer

Eric Glazer graduated from the University of Miami School of Law in 1992 after receiving a B.A. from NYU. He has practiced community association law for three decades and is the owner of Glazer and Sachs, P.A. a five attorney law firm with offices in Fort Lauderdale and Orlando.

Eric is Board Certified by The Florida Bar in Condominium and Planned Development Law.

 

Since 2009, Eric has been the host of Condo Craze and HOAs, a weekly one hour radio show that airs at 11:00 a.m. each Sunday on 850 WFTL.

   

See: www.condocrazeandhoas.com.

   

Eric is the first attorney in the State of Florida that designed a course that certifies condominium and HOA residents as eligible to serve on a Board of Directors and has now certified more than 20,000 Floridians all across the state. He is certified as a Circuit Court Mediator by The Florida Supreme Court and has mediated dozens of disputes between associations and unit owners. Eric also devotes significant time to advancing legislation in the best interest of Florida community association members.



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