|
DON’T FORGET THE FUNDING OF RESERVES!
By
Jan Bergemann
Published September 21, 2018
It’s the time of the ear where owners and board members are
fighting about the budget. One side tries to avoid an increase
of the maintenance fees while the other side thinks that money
is growing on trees.
I get every year the same questions:
-
Is the Budget meeting public?
Do the members have a say in creating the budget?
-
Can board members meet behind closed doors to work on
creating the budget?
-
Is there a limit on how much the maintenance fees can
increase?
And the list goes on!
Most people get interested if their money is at stake. Always
remember: Your home (unit) is collateral for any debts the
association may occur!
And that’s why it is important to make sure that the reserve
funds are up to par. It’s amazing what kind of arguments we hear
when discussing the necessity of well-funded reserves. The most
ridiculous I have heard: “I’m long dead before we need a new
roof!”
Remember Wilma – and the days after Wilma when many South
Florida’s homes and condo buildings had “BLUE”
roofs? Remember the special assessments that had to be levied by
associations to pay for the deductible of the insurance policy?
Remember the flood of foreclosures that followed because many
unit-owners were unable to pay these special assessments?
For many owners, especially the retirees on a fixed income, it’s
difficult to come up with a chunk of money on short notice, but
even if money is scarce a few dollars added to the monthly
maintenance fees shouldn’t create serious financial problems.
Hurricane Florence didn’t hit Florida, but in all reality it’s
just a matter of time until the next hurricane will hit us.
Would you rather fund the association’s reserve funds on a
monthly basis or do you prefer to get hit with a special
assessment to be paid on short notice?
Think about it before the budget is finalized!
|
|
 |
Jan Bergemann is president of Cyber Citizens For Justice,
Florida
's largest state-wide property owners' advocacy group.
CCFJ works on legislation to help owners living in
community
|
associations. He moved to
Florida
in 1995 - hoping to retire. He moved into a HOA, where the
developer cheated the homeowners and used the association dues
for his own purposes. End of retirement!
CCFJ was born in the year 2000, when some owners met in
Tallahassee
- finding out that power is only in numbers. Bergemann was a
member of Governor Jeb Bush's HOA Task force in 2003/2004.
The organization has two websites to inform interested
Florida
homeowners and condo owners:
News Website: http://www.ccfj.net/.
Educational Website: http://www.ccfjfoundation.net/.
We think that only owners can really represent owners, since all
service providers surely have a different interest! We are
trying to create owner-friendly laws, but the best laws are
useless without enforcement. And enforcement is totally lacking
in
Florida
!
|
