By Rafael Aquino

Published February 9, 2022  


It seems as if we are moving toward reserves being required within our communities or, at a minimum, associations have some alternative funding aligned. I want to touch on today's blog's topic of the "alternative funding" obligation. In my opinion, I believe this language is too vague. We need to define what alternative funding means to our legislators? Does it mean you have to have an approved LOC (Line of Credit)? Does it mean that you can have a simple letter that states the bank will lend you such funds when the time comes?


At the moment, most banks have been friendly lending associations money as long as they have a decent financial position, the association's accounts receivable are in good standings, and they aren't over-leveraged. My concern with an alternative funding source is what will happen when market conditions change? Most banks have the right to cancel a LOC at any time; what would an association do if the bank pulls the LOC? Will they be required to fund the reserves fully at that moment? Further, we all know interest rates are expected to climb in the coming years. Will the Board be required to communicate the potential loan payment/cost to the residents?


I can appreciate that our legislators are trying to provide multiple options; however, I'm concerned that some Board members may use this to kick the can down the road or not understand the future implications of using the alternative funding method. How will an association manage the debt if the interest rate shoots up to six to seven percent? There isn't enough clarity on the definition of alternative funding and how it should be managed. 


Changing our laws is no easy task; however, we need to get this right to avoid the changes that happened this year from being revoked the following year, no different from what happened with State Representative Robaina's building inspection legislation, which was overturned in 2010.

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As the Co-Founder and CEO of Affinity Management Services, Rafael P. Aquino leads his team to redefine excellence. They serve community   associations   efficiently

and effectively with dedication and passion. Rafael’s energy and positive spirit is the foundation of Affinity Management Services’ company culture, which instills enthusiasm and excitement when providing expert advice to its board members and relieving the day-to-day burdens of running a community association.


Since 2007, Rafael has developed a work culture that values responsive and high-quality services. He has led his team by following a proactive vs reactive philosophy. The same approach Rafael instills in the day to day operations of each association. Today, Affinity Management Services maintains its success and benefits as a result of the foundation Rafael has built and continues to foster by providing educational seminars, continuing education classes for association managers and board members alike.

Rafael and his team help condominium and homeowners’ associations save money and improve their communities. His calm, personable, and service-oriented nature helps him to establish strong relationships with ease. Rafael is known as a sincere and honest leader who looks out for the best interests of his clients and communities, and he strongly advocates for their needs. His role requires coordination and communication, as such he takes logical and intelligent steps to approach challenges head-on.

As a graduate of Florida International University’s electrical engineering program and a licensed community association manager, Rafael’s education and skills equip him with unique insights to tackle complex problems through critical thinking. He understands how each component within a system works together in order to effectively arrive at solutions, techniques, and conclusions. Therefore, as he manages the multiple challenges of running a community association management company, he understands how each property is its own unique system and tailors’ specific services to assure that all their needs are met.

For more information about Rafael P. Aquino and Affinity Management Services please visit www.ManagedByAffinity.com or call 1-800-977-6279

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Suite 200

Doral, FL 33166

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