Interesting article by Jeffrey Rembaum on page 29 of this months FCAJ titled "A Differing Tale of Two Terminating Condominium's"
In my estimation, there are generally three buckets that Florida Associations find themselves as it relates to perpetually increasing operating costs and the requirements of SB 4D and HB 1021.
Bucket 1: Associations that have been conservative budgeting wise every year, funded reserves and have been proactive with making sure the building is in compliance with mandatory milestones/building safety etc.
Bucket 2: Associations that have some work to do to meet requirements next year however have been working on it and should be fine by getting bank loans or special assessing directly from the unit owners.
Bucket 3: Associations that not only have not been proactive with budgeting, reserves and keeping up with the milestones, but also where the vast majority of the unit owners have indicated that they cannot afford to keep the Association going.
In the case of Bucket 3 Associations, it seems to me that there should be a more defined path for Associations to terminate legally. The question in reference to the article mentioned is which of the two routes will the courts take as minority hold outs take termination attempts to court and what is their liability to all the unit owners should things go south for not terminating.
🌴 Our October issue is now available online! 🌴
We're excited to share our annual "Welcome Back Snowbirds" issue, packed with insights, resources, and updates for community association managers and board members. Check it out online today, and keep an eye out—printed copies will be arriving in mailboxes soon! Whether you're preparing for seasonal residents or managing year-round operations, this issue has something for everyone. Don’t miss out!
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FLCAJ — October 2024
https://issuu.com
Awesome Darren!