F.S. 720 provides that if the budget of the association does not provide for reserve accounts under paragraph described in statute, or the declaration of covenants, articles, or bylaws do not obligate the developer to create reserves, and the association is responsible for the repair and maintenance of capital improvements that may result in a special assessment if reserves are not provided or not fully funded, each financial report for the preceding fiscal year required must also contain a specific statement in conspicuous type. The statutes provide detailed guidance into reserve funding, capital expenditures, and deferred maintenance. It is in the best interest of the community association for the board of directors, its CAM, legal counsel, and accountant, to review the requirements, plans, and strategies in order to appropriately plan for critical long-term maintenance including the financing aspect of each. Example : An owner put dish soap into the hot tub at the association’s clubhouse. The incident was caught on camera and the association took action against the owner responsible for the damage caused by the intentional act. The owner was responsible for the cost of removing the bubbles and bringing the pool chemistry back into balance. The repair occurred over a three-day period, in which the hot tub was closed for use. Additionally, the board of directors took action to suspend the responsible owner’s use of the pool and hot tub. If there are limited common elements or areas that are restricted for the use of specific members, the association documents may require that those members pay for the cost of all maintenance for those elements or areas. Corrective maintenance Corrective maintenance is work that is requested by a member, tenant, employee, or the board or is identified during a routine inspection of the property, necessary to fix or repair an issue. The association schedules this work by using a work order system. Corrective maintenance costs are generally included the operating budget. However, if a member requests maintenance to repair a component in their unit, or a problem within an LCE, the board must review its documents, to determine if the repair is its or the member’s responsibility. Example : Remove a wasp nest, replace burnt-out hall lights, repair a broken sprinkler head, replace a broken lounge chair by the swimming pool. Emergency services maintenance Emergency services maintenance are responses to emergencies. Depending on the extent and nature of the problem, the association may use operating or reserve funds, levy a special assessment, or borrow funds. Example : A roof leak, a broken pipe in a wall, a leak in the emergency generator fuel tank, damage due to a storm. It’s important to have a plan to determine which type of maintenance is required. A good plan can help the CAM and the association to be prepared for unexpected emergencies and maintenance needs reported by others. A sample maintenance inspection form for regular property inspections is key for a CAM to ensure that the findings in regularly scheduled inspections are documented. Sample maintenance logs are located at the end of the chapter.
F.S. 719, Cooperatives and F.S. 720, Homeowners’ Associations similarly describe the responsibilities of the association, the board and its agents, related to the real and personal property of the homeowners’ association and their common property. These statutes likewise speak of deferred maintenance. Deferred maintenance is usually described as maintenance performed less often than annually. The annual operating expenses, budgeted or unbudgeted, and reserves if required, are intended for the day-to-day maintenance, deferred maintenance, any capital expenditures and often consideration of emergency maintenance. F.S. 718 provides that the following disclosure be included regarding the waiving of reserves: WAIVING OF RESERVES, IN WHOLE OR IN PART, OR ALLOWING ALTERNATIVE USES OF EXISTING RESERVES MAY RESULT IN UNIT OWNER LIABILITY FOR PAYMENT OF UNANTICIPATED SPECIAL ASSESSMENTS REGARDING THOSE ITEMS. Board member responsibilities When the board fails to carry out the association’s duties to repair and maintain the common property, an individual member may have the right to bring legal action against the board. Example : A unit owner in a condominium sustained damage to their property from a sewage drain when it back flowed into the unit. The unit owner took legal action against the association for the association’s failure to conduct routine maintenance on the sewer drain. If a member or other person intentionally or negligently damages common property, the association has the right to bring legal action against the member or other person to recover damages. Types of maintenance Each community association has five types of required maintenance work that should be budgeted for and performed. Each is explained below. Routine maintenance Routine maintenance is regularly recurring maintenance activities that are usually routinely scheduled. Routine maintenance costs are usually included in the operating budget. Example : Pool cleaning, lawn mowing, window washing, cleaning the lobby, vacuuming the hallway carpet. Preventative maintenance Preventative maintenance is periodic maintenance that is performed on the property, machinery, or components to ensure proper operation, minimize breakdowns, and prolong useful life. Preventative maintenance costs are usually included in the operating budget. Example : Cleaning sewer lines, servicing elevators, cleaning air handlers, cleaning and sealing roofs. Scheduled replacement maintenance Schedule replacement maintenance is work on, replacement or rehabilitation of major components and systems. This includes deferred maintenance and capital equipment replacement, which we will discuss in more detail later in the text. Generally, the association budgets for these items as part of its reserve program. Example : Concrete restoration, building waterproofing and painting, asphalt lot resealing, seawall repair, roof replacement. Property maintenance All structures on the property must be maintained in good condition to promote safety and an aesthetically pleasing appearance. The manager and a chief engineer or maintenance
supervisor are usually responsible for supervising the maintenance of the buildings, grounds, and capital equipment
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Book Code: CAMFL1524
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