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Bristol Management Services, Inc. |
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Bristol Management Newsletter
Spring 2011 |
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Approximately six months ago, we sent all of the residents a test email through via Benchmark. It allows Bristol and the Association to understand how many owners actually receive and read email.
Bristol recently upgraded our Software to be able to email directly from our main database. Also, the state of Florida recently changed the law, stating that personal email addresses and phone numbers are confidential information and not part of the "Association Records".
These emails are testing the Association's email penetration, so that the Board can see if they can use email as an effective tool to save the Association time and money.
The newsletter below was recently sent out to all of the directors. We hope to offer e-blasting to Associations as a way to save them money.
Thank you for your help!
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CURB APPEAL, PROPERTY VALUE, AND LANDSCAPING
This is the second year in a row Florida has endured a major freeze. Most people come to Florida to enjoy the warmth and lush tropical landscape, especially the privately manicured communities. With the economy slowing down, many communities bid out the landscaping, as this is usually a large part of an Association’s expense. In an effort to offset delinquencies and reduce costs, landscaping specifications have also been reduced. With two freezes in a row, the landscaping is really starting to look stressed. The curb appeal has a major impact on everyone’s property values. The freeze has affected plants differently based on the location and length of the sub-freeze temperature. It is important not to react too quickly with fertilizer and a hard prune, because if we get another freeze, the new growth may also get damaged. Let Mother Nature heal itself and develop a plan in the spring.
However, most owners expect instant gratification and will forget about the freeze quickly. They want green and lush! Last year we saw many Nora Grants and Hibiscus die out, and in the spring and summer, many Palm trees died. Most communities did not do major plant replacement, but just allowed the other plants to fill in. Palm tree fronds will turn brown, but you will not know if the tree will survive until summer. Don’t trim any of the trees until spring, and seriously think about a special fertilizer. It all depends on how bad the buds are burned back.
TURF (St. Augustine): Fully green lawns that are frozen this early will turn brown, and is a temporary setback for healthy lawns. This may be a time to do a “weed and feed” to reduce the weeds in the lawn. The brown tissue in the leaf blades will remain until the warm weather returns and new leaves grow. However, repeated freezes can kill St. Augustine grass in late winter and early spring.
SHRUBS & TREES: Shrubs and trees can usually take a pretty hard freeze to damage woody plant material. This year, the Hibiscus, Plumbago and Arboricola have been especially damaged. Prune back only to the part of the plant that does not scratch back to the green. Pruning and fertilizing too early and the possibility of another freeze may be very costly. Patience may be the best plan.
The communities need to start thinking of a plan. Look at what survives the freeze and is doing well in your community. Talk to the landscapers to understand what survived at the nursery, and develop a budget first for trees and shrubs. Color is important, but maybe just splashes of color. Pruning back and fertilizing will work, but it may take a year. Will your owners wait that long? It may be prudent to allocate 10% of your landscape budget to plant replacement due to these freezes.
Curb appeal is important and while property values have depreciated due to the market condition, entryways and curb appeal is important. A plan and a budget take time, but in key locations, plant replacement will be necessary. We can’t keep taking out Palms that die with no replacement plan. First, look at what survived and maybe change the type of plants you don’t have and replace plant for plant. It may take a multi-year plan given the budget constraints.
It is not greener on the other side, but it will be green again. Be patient and think long term.
Steve Inglis, PCAM, President of Bristol Management Services Inc. in Jupiter and Port St. Lucie. With 32 years of experience, Bristol has a successful track record in protecting property values for an Association.
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ARE YOU AWARE
- Owners can pay their assessments on line with a credit card at no expense to the association.
- Owners can pay their assessments by automatic withdrawal.
- Real Estate requests and estoppel information can all be done through Bristol’s website.
- Association Documents can be obtained through Bristol’s website.
- Work Orders and accounting information can be made through Bristol’s website.
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5TH ANNUAL BRISTOL MANAGEMENT SEMINAR
ANOTHER GREAT SUCCESS
While Bristol has ongoing classes for the Licensed Managers, once a year we host two Seminars for Board Members. They are intended to inform Boards of current changes in the Statutes’ pertinent issues and challenges that Board members face on a day-to-day basis. The Seminar is a fast paced presentation by professionals in the industry. We host two Seminars, one in Abacoa in the Jupiter-Palm Beach Gardens area, and one in Tradition in Port St. Lucie.
The first speaker spoke about the current changes in the laws for Condominiums and Homeowners Associations, and what is happening with the current foreclosures and the mortgage foreclosure crisis of robo signing. They also discussed the new proposed glitch bill intended to fix and/or clarify why the state just passed it. There was also discussion on Associations foreclosing as a last resort, and the effectiveness of a collection company (read the contract). Ed Dicker of Dicker, Krivok & Stoloff, spoke at the Abacoa Seminar, and Jeff Rembaum, Esq. spoke at Tradition.
I also invited Attorney Brian LaBovick to speak about owner defenses of foreclosures, the magnitude of foreclosures, and how the mortgage companies are so overwhelmed. Based on this, foreclosures could drag out another 12 to 18 months if uncontested, and three years if challenged. Mr. LaBovick explained how he helps defend against foreclosures and that really a short sale and/or refinance is the best outcome the Associations can hope for, but the Board must be willing to negotiate or wait another year or two to receive only 12 months worth of assessments. Mr. LaBovick also explained how certain attorneys use the Federal Fair Debt laws to get out of paying anything, and how Associations really need to be very careful to not violate the Federal or State Fair Debt Laws.
At the Seminar in Abacoa, Attorney Pamela Guerrier, Manager, Palm Beach County Office of Equal Opportunity, spoke about discrimination. This was an interesting topic because most Board members felt this did not apply to them, but after Ms. Guerrier’s speech, they understood how it could relate to their Association. Topics discussed were Family unit (Foster Homes), Emotional Support Animals, age discrimination, senior living qualifications and exemptions, and rules for children that may be discriminating. It was noted that having an illegal provision in your Documents but not enforcing them is not a defense, and that there are attorneys who specialize in these types of lawsuits and settle for the round number of $100,000 (Tort Reform). Ms. Guerrier also stated that the governing Documents of Association’s that are older, need to be updated.
Todd Mowery, Port St. Lucie County Commissioner, spoke about the Economic Recovery of Port St. Lucie Torrey Pines Medical Research Center (cluster), a proposed inland port west of Tradition, and the economic incentive for a large Commerce Center west of Fort Pierce. But, overall he agreed that the County needs to do more for small businesses which is needed to decrease unemployment.
Matt Mitchell of Tequesta Insurance Agency spoke about the projected increases for property insurance, the redefining of the windstorm insurance boundaries by Citizens, and how everyone is self insuring Citizens because the models show if Florida ever got a major hurricane that everyone with a policy in Florida would be assessed. Insurance appraisals are now required every 18 months, but with construction costs going down, the replacement costs are also decreasing. Therefore, there are slight decreases in premiums and the D&O, Umbrella and Fidelity Bonds are all holding the line on premiums, especially the Associations participating in the Bristol Advantage Program. To date, no claims have been filed, and while a number of Associations cannot participate because of claim losses, many have been able to benefit from the economy of scale. With the slow economy, we have seen a significant increase in trip and fall suits, as Associations are seen as a good target. Because of this, Bristol has held classes with Claim Adjusters, and Insurance Property Inspectors to understand how best to defend against these suits. (Being at fault has nothing to do with being sued.)
Bristol Management recently held a class for all of the Managers on how to give a deposition. The two lessons learned is less is more and the second, I don’t recall.
Finally, but briefly, was my summation of the Freakonomics of Associations. Cash flow being the king, there is no real solution on the collection issue. Four years ago, the biggest problem was affordable housing. Now, its Developer bankruptcy, the mortgage foreclosure crisis of robo signing and delaying the process 12 to 18 months, and collecting rent from delinquent owners’ tenants is just not working. Also, Associations taking title to the unit and becoming the landlord must understand not only the liability, but also the potential for positive cash flow. The Board is forced to make tough decisions for the forest (Association), not the tree (individual owner). I believe we are at the bottom, but don’t expect a bounce, just a lot of difficult decisions.
Steve Inglis, PCAM, President of Bristol Management Services Inc.
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What is a PUD?
PUD=Planned Unit Development
A property needs to be underwritten to ensure it meets governmental lending standards before loans can be made available for new purchasers. A PUD questionnaire is requested by lenders to gather information on the particular Association’s well being, i.e. (number of units in the association, what is the rental saturation, how many primary residences, are there any special assessments, any ongoing litigation, delinquency rate etc.) Therefore, in order for Bristol to research and gather this information, a fee is charged to the seller for this service. The fee is in place as a result of the additional liability Bristol inherits on behalf of the Association for the accuracy and validity of the information provided to the lender.
What is an estoppel/resale letter?
An estoppel letter is typically used in a transfer or conveyance of real property before the closing transaction. It is a document sent to the closing agent (title company or closing attorney) requesting maintenance assessments, how often dues are paid, what is owed, violations, special assessments, capital contribution and if application/approval is required by Association, etc. This information is required by the title companies underwriter as a requirement on the title commitment, which reads as follows: “Proof of payment of any Homeowner’s Association liens and/or assessments” This requirement is requested by the title insurance underwriter in order to make sure the purchaser/buyer has clear title on the property they are purchasing. All assessments and payments that are due must be incorporated into the total amount due at closing and placed on the HUD/Settlement Statement to be paid at the time of closing. Some amounts may be pro-rated, but all outstanding amounts must be included in the HUD/Settlement Statement. In order for Bristol to allocate the appropriate resources to gather this information accurately and in a timely manner and to accept the liability incurred, a fee is charged to the seller for the preparation of the estoppel/resale letter.
Mandy Birch, LCAM and Real Estate Specialist |
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ASSOCIATIONS
Who are they?
Why do we have them?
Community Associations are arguably the most represented and responsive form of democracy found in America today. Residents of a community freely elect neighbors to serve on a Board of Directors of that community. Board members are unpaid volunteers who meet regularly to handle business governance issues. It is estimated there are 1.25 million Americans who serve as directors.
A responsive Board must go beyond good business judgment, but also foster harmony and enjoyment of the Association lifestyle annoying the resident. In order for an Association to successfully operate, they must collect assessments, equitably control the use and enjoyment of the property, and finally, fairly make and enforce rules to preserve, enhance and protect the property values both for common property and a limited extent, the use of individually owned property.
The majority of the owners read the Covenants & Restrictions only after they purchase. Owners who appreciate the covenants as property value protection when they bought their home may find these rules unacceptable when they wish to paint their home a different color or install a basketball hoop in the driveway. Other common sources of conflict are the three p’s, pets, parking and pools. In most instances, a formal violation letter ends the problem. In a recent survey, 89% of the homeowners agree that living in a Community Association is a satisfactory housing choice. 66% indicate that their community is “friendly or neighborly” only 8% found them to be “unfriendly and divided.”
42 million Americans live in Community Associations and have an estimated real estate value of 1.8 trillion dollars and total operating assessments of 25 billion and 18 billion for reserves. Unfortunately, most owners don’t look at Associations as a big business. This is why 73% of all Associations have some type of professional management to support homeowners who volunteer to serve as directors. Community Associations are increasingly relying on professional management companies rather than solely on-site staff directed by the Association. Because of the difficulty in finding one person skilled in a variety of areas, and as Associations age, repairs, renovation and refurbishments increase, so do the different skills.
Community Associations need to be more political regarding the equity of municipal tax treatment where Associations provide service like trash removal, street maintenance and lights without rebate from local governments that provide these services to traditional single family homes.
Living in a Community Association will continue to be a popular housing choice, but people need to realize you do lose some personal freedom. Associations need to put more emphasis on the search for harmony in the community. The trick is to “run it like a business”, but have it “feel like a community”.
Steve Inglis, PCAM, President of Bristol Management Services Inc.
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The Bristol Advantage
The Bristol Advantage is an elite, preferred risk program offered strictly for Bristol Management’s clientele. Bristol Management Services, Inc (partnering with Tequesta Agency) is the first management company in Florida to offer this unique insurance program to their Associates.
With the success this program has brought to Associations in Texas and California, Steve and Nadine thought the idea could take root for their clients in Florida where the insurance marketplace poses a greater challenge and typically more expensive than in most other states. The program is exclusive to Bristol clientele and brokered through an independent insurance agency (Tequesta Insurance). The Advantage Program is also completely voluntary: just because an association is managed by Bristol, it does not mean they are required to participate in the program; it is a board decision. Bristol receives no financial gain from the program; they implemented this as a means for their clients to save money in these difficult economic times. Prior to the Advantage program being rolled out, Bristol hired (at their own expense) an independent consultant to review the program which verified advantageous coverage terms and conditions, as well as a review of the financial stability of the companies providing the insurance.
Habitational risks in Florida are an undeserved class of business, often times being affected by “perceived” excessive rates. Implemented in January of 2010, the Advantage Program has been successful in carving out the best risks associated with this class of business and Bristol clients have seen reduced rates, enhanced policy forms and in some cases increased limits; all on policies tailored to Association risk characteristics. In addition to the insurance improvements, this article will outline some of the new technology available only to members of the Bristol Advantage.
Tequesta Agency is developing a web-based platform that will serve as an insurance database warehouse. Property Managers and Tequesta Agency will have access to the database to provide board members detailed information regarding their association’s insurance. The database is a living document and will be continually updated as new members join and more detailed underwriting information is secured.
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Detailed insurance policy summaries containing effective dates, policy limits and deductibles, policy numbers and premium figures.
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Certificate of Insurance request information and web links. To better serve our clients, you can now obtain condominium certificates of insurance by using the online delivery service, EOI Direct. EOI Direct provides round-the-clock, online access to insurance information for lenders, mortgage brokers, closing agents, realtors and homeowners in need of a certificate of insurance or summary of a master policy for community associations insured through our agency.
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Renewal information can be pulled from the database and put into report form containing current information that is maintained throughout the annual policy term.
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Loss reports can be uploaded to see how individual associations are fairing on losses individually as well as compared to the group.
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Pertinent insurance articles will be posted online for access by both managers and unit owners
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Copies of the Bristol Advantage actual policy forms. There are four policies which are the same for each participant. This aids in the claims process and policy review as all the terms and conditions are consistent from one participant to the next.
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Once the data is populated for the year, we can analyze premiums and participation on a macro or micro level.
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Having the information available to managers and Tequesta will allow both companies to track and document any changes in the risk profile for each association.
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An ancillary benefit of the web-based database is that managers will not spend as much time on insurance which will allow them to focus on other property management functions.
Tequesta Agency and Bristol Management are committed to providing local associations participating in this one-of-a-kind program certain “advantages” not available to everyone. Being a member of the Bristol Advantage allows managers and board members access to this unique insurance portal and we look forward to distributing the web address to members within a couple of weeks.
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Congratulations Liz!
Liz Diaz has recently joined the elite group of community association managers who have earned the Professional Community Association Manager (PCAM) designation from Community Association Institute (CAI). She is one of 1,200 managers nationwide who have earned the highest level of professional recognition in the community association industry.
To earn the PCAM designation, Liz had to meet certain requirements before she could even qualify for the program. This includes obtaining 2 other national designations (CMCA, AMS), a series of courses that exceed over 100 hours of education in addition to the Florida licensing requirements and traveling to San Diego, California for the PCAM Case Study. The PCAM Case Study is a comprehensive examination of an actual community association chosen by CAI that combines classroom instruction with an extensive on-site inspection. Liz was required to explore a community’s profile in depth by interviewing the community’s manager, Board members, association’s law firm, CPA and other key personnel to provide an inclusive report on the association.
On May 5, 2011, at the National CAI Conference during the Opening General Session, Liz Diaz will be recognized for her achievements. We are all very proud and congratulate Liz on receiving her PCAM designation.
Liz Diaz, LCAM, CMCA, AMS, PCAM |
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SHRUBS
The following shrubs are not cold tolerant for this area and
should be covered with frost cloth in temperatures that get below 35 degrees
gold mound duranta
crotons
ty plants
crinum lilies
begonias
cocoplum
ficus green island
ixora
annuals
bougainvillea(border line)
The following plants are cold tolerant for this area
dwarf podocarpus
podocarpus
viburnum
foxtail ferns
liriope
dianella
juniper
ilex schillings
dwarf fatkahatchee grass
fatkahatchee grass
confederate jasmine
indian hawthorn
oleander
PALMS
The following palms are not cold tolerant for this area and should be treated with abud drench and fertilizing after periods of freezing (35 degrees and below) to help the palms growth
areca palms
coconut palm
The following palms are cold tolerant for this area
foxtail palm
washingtonia palm
sylvester palm
date palms
pigmy date palm
sabal palms
pigmy date palms
winnin palms (border line)
royal palm
pindo palm |
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Maintaining Communities in "Bristol" condition.
Copyright © 2010, Bristol Management Services, All rights reserved.
Contact Details
JUPITER OFFICE: 1930 Commerce Lane, STE1, Jupiter, FL. 33458 (561) 575-3551
PORT ST. LUCIE OFFICE: 543 NW Lake Whitney Place, STE 101 Port St. Lucie, FL 33986 (772) 323-2004 |
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