by Michael Hamline, Editor/ Published August 2018
It has often been said that “money makes the world go round.” There is much truth that money is necessary to live in this world, which is why the August issue of FLCAJ highlights the importance of finances and community associations.
In the article “Paying those Big Bills … Money In the Bank” on page 6, Will Simons of Association Reserves, Matt Kuisle of Reserve Advisors, and Sundeep Jay of J.R. Frazer, all contribute their thoughts on the importance of a reserve study for community associations and how it can save the association money in the long run.
Simons remarks, “The purpose of a reserve study and funding is to maintain the property and preserve property values in a community.”
Kuisle shares, “Communities that have never funded reserves are now getting pressure from owners who are unable to sell their units due to poor reserve funding.”Jay adds, “It is important to note that associations are nonprofit corporations—a business entity. As a business entity, it must work diligently and fairly in maintaining the assets for the common interest of current and future unit owners.”
The second article that zeroes in on financial issues is “Paying those Big Bills … Money From the Bank” which can be found on page 16. Cesar de la Noval of Executive Bank, Richard Alfonso of U.S. Century Bank, Lisa Elkan with Alliance Association Bank, and Kathleen Karpovich with Florida Community Bank all share circumstances that might lead community associations to borrow money from a bank. In talking about loans, there is an important discussion about understanding the purpose of the loan, legal ramifications of a loan, and determining if a loan is needed right away.
Also take time to read on page 26 “Weathering the Storm of Unexpected Community Association Financial Needs” by Lilliana Farinas-Sabogal, Esq. of Becker; “Nothing but the Facts: Pooled Reserves and Insurance” on page 34 by Keith F. Backer of Backer Aboud Poliakoff & Foelster; and “Tragic Alligator Attack Should Cause Community Associations to Consider Alligator Dangers” by Jonathan Goldstein of Haber Slade on page 38.
Enjoy the summer and stay cool!