Journal Notes – August 2021

Journal Notes – August 2021

by Michael Hamline, Editor / Published August 2021

All of us at FLCAJ have been heartbroken to see the loss of life at the Champlain Towers South. We are praying for those who have lost loved ones in this tragedy.

The August issue has an important focus on establishing a budget and having sound financials. On page 8, Will Simons has written the article “Putting Reserves in Perspective.” He stresses that in order to prepare for the future, it is important to know where your association stands with its percent funded, which determines the strength of its reserves.

On page 12, Erin Sweeney has an article “Community Association Budgeting—Common Mistakes.” He lists seven common mistakes associations should avoid as they create their budget.

Lilliana M. Farinas-Sabogal, Esq., has penned the article “Caring for the Financial Well-being of the Association,” on page 24. She writes, “To ensure the financial well-being of an association, boards and managers should focus on at least four factors: budget, reserves, insurance, and collection practices.”

On page 30, Jeffrey Rembaum’s article “The Champlain Towers South Condominium Collapse—Initial Interim Lessons Learned from This Tragedy” provides the facts of this tragedy as they were known on June 27, 2021. Among multiple action items, he calls for associations throughout the state of Florida to “obtain a recertification engineering report every 25–40 years” regardless of whether the county your association is in requires it or not. He also calls for the association to have a specific reserve fund for concrete repair and restoration.

Turn to page 48 to read Matt Kuisle’s article “Are Your Reserves Fully Funded?” He defines what the term means and the importance of a steady cash flow.

On page 54, Craig Finck, CMCA, has written “Making Sure Your Association Is Financially Prepared.” He details the steps to prepare your association during hurricane season. Maintain adequate cash flow, continue to collect assessments, pay the association bills, and make sure you understand what your insurance covers and does not cover.

Finally, flip to page 70 and read Sundeep Jay’s article “Why Flood Insurance Coverage Is Different than Property Insurance Coverage.” Review your flood policy annually and update it and property insurance valuation reports to obtain full coverage for your association in case of property destruction.

FLCAJ wishes you a great August.