Human Resource Topic
By Rick Larson
Human Resources Topic
By Rick Larson
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Table of Contents
Successful Communication Skills
Negotiating Styles
Two Types of Negotiations
Unrealistic Expectations
Escalation of Commitment
Social Styles
The Three Steps to Negotiation
Combating Subjective Tendencies
Preparing for a Disaster
Community Association Manager
Continuing Education Requirements
61E14-4.001 Continuing Education Renewal Requirements.
All community association manager licensees must satisfactorily complete a
minimum of 20 hours of continuing education. Each hour shall consist of 50 minutes
of student involvement in approved classroom, correspondence, interactive,
distance education or internet courses which courses shall include the required
hours at an approved update seminar. No license shall be renewed unless the
licensee has completed the required continuing education during the preceding
licensing period.
Only continuing education courses approved by the Council shall be valid for
purposes of licensee renewal.
The 20 hours of continuing education shall be comprised of courses approved
pursuant to Rule 61E14-4.003, F.A.C., in the following areas:
4 hours of legal update seminars. Licensees shall satisfactorily
complete a 2-hour legal update seminar during each year of the
biennial renewal period. The legal update seminars shall consist of
instruction regarding changes to Chapters 455, 468, Part VIII, 617, 718,
719, and 721, F.S., and other legislation, case law, and regulations impacting
community association management. Licensees shall not be awarded
continuing education credit for completing the same legal update seminar
more than once even if the seminars were taken during different years.
4 hours of instruction on insurance and financial management topics relating
to community association management.
4 hours of instruction on the operation of the community association’s
physical property.
4 hours of instruction on human resources topics relating to community
association management. Human resources topics include, but are not
limited to, disaster preparedness, employee relations, and communications
skills for effectively dealing with residents and vendors.
4 hours of additional instruction in any area described in paragraph (3)(b),
(c) or (d) of this rule or in any course or courses directly related to the
management or administration of community associations.
No licensee will receive credit, for purposes of meeting the continuing education
requirement, for completing the same continuing education course more than once
during a biennial renewal period.
Course instructors may receive continuing education credit hours in the amount of
hours approved by the Council for licensees only once every renewal period for
each approved course taught by the instructor.
Anyone licensed for more than 24 months at renewal time will be required to have
complied with the CE requirements set forth in subsection (1), above, prior to
renewal. More than 24 months, means 24 months plus 1 day. Licensees licensed for
24 months or less at renewal time are exempt from compliance with the CE
requirements set forth in subsection (1), above, until the end of the next renewal
A licensee shall retain, and make available to the Department and its
representatives upon request, continuing education course certificates of
completion that comply with paragraph 61-6.015(4)(a), F.A.C., for three years
following course completion.
All licensees shall comply with all applicable provisions of subsections 61-6.015(2)
and (3), F.A.C.
Page |1
Human Resources Topic
Continuing Education for Florida Community Association Managers
Page |2
The Florida community association management industry continues to experience
dramatic changes in the marketplace and in the regulatory realm. This course
examines methods to effectively communicate with residents and vendors, topics
that affect all community associations and, therefore, all community association
Learning objectives:
How to Effectively Deal with Residents and Vendors:
Upon completion of this course, students should be able to:
identify negotiating opportunities when dealing with residents and vendors
understand the student’s personal negotiating profile
list 5 negotiating styles and the important characteristics of each
describe the 2 alternative types of negotiations
explain conditions under which a negotiation may be impacted by unrealistic
list the conditions under which a negotiation may escalate into a conflict
describe ‘anchors’ and how they are used when negotiating a contract
explain the application of ‘framing’ in a negotiation
identify social styles and how negotiating styles should match
understand how to combat subjective tendencies
list the 3 steps to a ‘win-win’ negotiation
identify steps to take to prepare for a disaster
list at least 4 sources of information for disaster preparedness
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CAM Standards of Professional
Licensees shall adhere to the following provisions, standards of professional conduct, and such
provisions and standards shall be deemed automatically incorporated, as duties of all licensees,
into any written or oral agreement for the rendition of community association management
services, the violation of which shall constitute gross misconduct or gross negligence:
(1) Definitions. As used in this rule, the following definitions apply:
(a) The word “control” means the authority to direct or prevent the actions of another person
or entity pursuant to law, contract, subcontract or employment relationship, but shall specifically
exclude a licensee’s relationship with a community association, its Board of directors, any
committee thereof or any member of any Board or committee.
(b) “Licensee” means a person licensed pursuant to Sections 468.432(1) and (2), F.S.
(c) The word “funds” as used in this rule includes money and negotiable instruments
including checks, notes and securities.
(2) Honesty. During the performance of management services, a licensee shall not knowingly
make an untrue statement of a material fact or knowingly fail to state a material fact.
(3) Professional Competence. A licensee shall undertake to perform only those community
association management services which he or it can reasonably expect to complete with
professional competence.
Page |4
(4) Due Professional Care.
(a) A licensee shall exercise due professional care in the performance of community
association management services.
(b) A licensee shall not knowingly fail to comply with the requirements of the documents by
which the association is created or operated so long as such documents comply with the
requirements of law.
(5) Control of Others. A licensee shall not permit others under his or the management firm’s
control to commit on his or the firm’s behalf, acts or omissions which, if made by either licensee,
would place that licensee in violation of Chapter 455, 468, Part VIII, F.S., or Chapter 61-20,
F.A.C. or other applicable statutes or rules. A licensee shall be deemed responsible by the
department for the actions of all persons who perform community association management
related functions under his or its supervision or control.
(6) Records.
(a) A licensee shall not withhold possession of any original books, records, accounts, funds,
or other property of a community association when requested by the community association to
deliver the same to the association upon reasonable notice. Reasonable notice shall extend no
later than 10 business days after termination of any management or employment agreement
and receipt of a written request from the association. The manager may retain those records
necessary for up to 20 days to complete an ending financial statement or report. Failure of the
association to provide access or retention of accounting records to prepare the statement or
report shall relieve the manager of any further responsibility or liability for preparation of the
statement or report. The provisions of this rule apply regardless of any contractual or other
dispute between the licensee and the community association. It shall be considered gross
misconduct, as provided by Section 468.436(2), F.S., for a licensee to violate the provisions of
this subsection.
(b) A licensee shall not deny access to association records, for the purpose of inspecting or
photocopying the same, to a person entitled to such by law, to the extent and under the
procedures set forth in the applicable law.
(c) A licensee shall not create false records or alter records of a community association or of
the licensee except in such cases where an alteration is permitted by law (e.g., the correction of
minutes per direction given at a meeting at which the minutes are submitted for approval).
(d) A licensee shall not, to the extent charged with the responsibility of maintaining records,
fail to maintain his or its records, and the records of any applicable community association, in
accordance with the laws and documents requiring or governing the records.
(7) Financial Matters. A licensee shall use funds received by him or it on the account of any
community association or its members only for the specific purpose or purposes for which the
funds were remitted.
(8) Other Licenses.
(a) A licensee shall not commit acts of gross negligence or gross misconduct in the pursuit of
community association management or any other profession for which a state or federal license
is required or permitted. It shall be presumed that gross negligence or gross misconduct has
been committed where a licensee’s other professional license has been suspended or revoked for
Page |5
reasons other than non-payment of fees or noncompliance with applicable continuing education
(b) A licensee shall not perform, agree to perform or hold himself or itself out as being
qualified to perform any services which, under the laws of the State of Florida or of the United
States, are to be performed only by a person or entity holding the requisite license for same,
unless the licensee also holds such license or registration; provided, however, that no violation
hereof shall be deemed to have occurred unless and until the authority administering the license
or registration in question makes a final determination that the licensee or registrant has failed
to obtain a license or registration in violation of the law requiring same.
(c) A licensee shall reveal all other licenses or registrations held by him or it under the laws
of the State of Florida or the United States, if, as a result of such license or registration, a
licensee receives any payment for services or goods from the community association or its
(d) Violation of any provision of Section 455.227(1), F.S., or of any part of this rule shall
subject the licensee to disciplinary measures as set out in Section 468.436, F.S.
Page |6
Key topics in this unit:
Negotiation Opportunities
Negotiating Profile
Negotiating Styles
Two Types Of Negotiations
Unrealistic Expectations
Escalation of Commitment
Social Styles
Combating Subjective Tendencies
The Three Steps to Negotiation
Disaster Preparation
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Successful Communication Skills
In this unit we will cover the keys to achieving ‘win-win’ negotiations.
What’s mine is mine! What’s yours is negotiable
How do most CAMs rank as negotiators?
Limited experience
Little or no training
Lack patience
WORKSHOP: What are the Negotiating Opportunities?
This is a large group brainstorming session. Fill in the blanks as you discover
negotiating opportunities.
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CAM Fiduciary Duties
1. Skill, care and diligence
2. Obedience
3. Loyalty
4. Disclosure
5. Accounting
6. Confidentiality
To plead in favor of
To recommend a course of action to; to counsel or give information or notice
to; to apprise; to inform
Communication with a view of coming to confer regarding a basis of
Working side by side with another party or parties to achieve a mutually
beneficial and satisfactory result
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P a g e | 10
P a g e | 11
Negotiating Styles
SUBSTANCE = task to be accomplished
RELATIONSHIP = balance of emotion and reason
A = Defeat: High substance - Low relationship:
win-lose competition; pressure, intimidation, adversarial relationships. The
negotiator is attempting to get as much as possible. Defeat the other party perhaps a one shot deal.
B = Collaborate: High substance - High relationship:
searching for common interests with the other party; problem solving behavior;
recognizing that both parties must get their needs satisfied for the outcome to be
entirely successful. Collaborative behavior and synergistic solution. Win-Win
C = Accommodate: Low substance - High relationship:
focuses on harmony and avoidance of substantive differences; yields to
pressure to preserve the relationship; places interpersonal relationships
above the outcome.
D = Withdraw: Low substance - Low relationship:
feelings of powerlessness, indifference, resignations, surrender; taking
whatever the other party concedes.
E = Compromise:
Moderate substance - Moderate relationship:
compromise, meeting half way, looking for tradeoffs; conflict resolution.
NOTE: You may adopt any of the five styles at any time depending on the
circumstances. It is suggested that the Collaborate style offers the
greatest versatility and most enduring satisfaction.
P a g e | 12
WORKSHOP: Negotiating Styles
In small groups determine the negotiating style of each client or customer based on
the information provided.
A. Board member to another Board member: Well if that’s what you think we should
do, then I guess we’ll just have to go with that. I mean, I don’t want to make you or
the other members mad.
Negotiating Style: ___ A Accommodate ____________________
B. Seller Client at offer presentation: Look, we can’t do all the giving here—the price,
the possession, the property. Just what, exactly, is the buyer willing to concede?
Negotiating Style: ___ B Compromise ____________________
C. Vendor at contract presentation: Requiring us to perform our services on
Thursday mornings presents a real problem for us. It means revising a contract on
another property, hiring an additional part-time employee, and dealing with
equipment storage that wouldn’t be required if we performed our services on
Wednesday mornings. What is the Board’s reason for making this the service time?
Negotiating Style: ___ C Collaborate ____________________
D. Board member at a meeting: Well, if that’s what you all want to do then I guess
that’s what we have to do. There isn’t anything I can do to change it.
Negotiating Style: ___ _ D Withdraw ___________________
E. Board member considering a proposal from a potential vendor: Okay, this is it. If
they don’t want to play ball with us and follow all of the terms we’ve required then
we’ll get a proposal from another company and this vendor can shove it!
Negotiating Style: ___ ___ E Defeat _________________
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Two Types Of Negotiations
Negotiations and negotiation issues are in two categories: Limited and Expanded
Limited Negotiations. The parties are concerned with how a fixed pie will be
divided. Limited issues can only be resolved such that one party’s gain is the other
party’s loss
. The more pie one party receives, the less pie the other party
Expanded Negotiations. Expanded negotiations have the potential to expand the
size of the pie available for the negotiators to divide. They are characterized by a
win-win orientation
. They create value in two ways:
Extend the range of issues
Identifying or incorporating issues which the two sides value differently
P a g e | 14
Expanded Resolution
When parties value items differently, they can make concessions on issues they
value less in exchange for concessions on issues they value more. That increases the
size of the pie for both parties.
WORKSHOP: Negotiating Scenario
Resolve the following negotiating scenario in small groups, moving from a limited to
an expanded resolution. Use the bottom of this page to assist in your decisionmaking.
A prized prospective employee has been offered another job for slightly more money
by a competing management firm. She really wants the position with your firm but
feels that she owes it to her family to take the higher paying position.
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Subjective Tendencies in Negotiation
P a g e | 16
As a negotiator you should have two goals:
Increase your size of the pie
Maximize your share of the pie
These efforts are inhibited by the following subjective tendencies:
Unrealistic Expectations
a. You Undervalue assets and what you have to negotiate with:
What negotiating style did you use? _Accommodate________________
Brainstorm in small group to add an example of your own:
P a g e | 17
b. Overconfident: You think you know how a negotiation should end, so you shut
out new sources of information.
1) “Look, either the seller can accept this offer as prepared, or we have a tentative
appointment to see the FSBO across the street tomorrow morning at 10:30 a.m.”
2) “Mr. Seller, either you list with us at that price and under those terms, or you’ll
need to find another listing company.”
a) What negotiating style did you use in the above statements?
b) Which of the two types of negotiations did you use? Limited or Expanded?
Brainstorm in small group to add an example of your own:
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Escalation of Commitment
You feel you have failed if you have not reached agreement so you escalate your
commitment during negotiation until you sometimes accept a resolution that actually
makes you worse off.
You are discussing your company’s management program with the Board at an
interview. You’re under pressure because your firm has just lost a big contract and
you are having your quarterly review with your manager next Tuesday at 9:00 a.m.
The Board tells you that if you want their management contract you, among other
things, must personally agree to visit the property weekly, attend all Board
meetings, and give investment advice.
After presenting your proposal the Board tells you that they can’t accept your
management fee. If you want the contract you’ll need to lower your fee by 15%.
Dejected, but needing the contract, you agree to their terms.
P a g e | 19
What negotiating style is used by the Board?
What negotiating style did you use?
What were the issues if you consider only limited negotiations?
____ _____________________________________
What might the issues be in expanded negotiations?
P a g e | 20
Using choices that were reasonable in the past that may not be reasonable today.
“Vendor, unless you’re willing to drop your price by 15% there’s no way I can make
this fly.”
“Vendor, in today’s market place, unless your proposal is within 5% of our budget
you won’t stand a chance of getting the contract.”
“Board, it’s customary that you would accept, reject, or counter the proposal on
presentation. Now, what would you like to have me do here?”
Brainstorm in small group to add an example of your own:
P a g e | 21
Framing is a negotiating technique in which the negotiator offers a perspective by
directing the client to concentrate on an aspect of an issue within the frame, and to
ignore other aspects of the same issue which fall outside this frame. Some clients
may see framing as manipulative because it creates a different perspective for the
decision maker. Choose frames wisely.
“Board, what this counter means to you is a saving of an additional 73¢ per day. Are
you willing to risk losing this Vendor over 73¢ per day?”
Which negotiating type is being used in this statement?
___Limited negotiation______________________
“Vendor, is the hourly rate that important to you, or is it really the amount of money
you’ll walk away with for the year that’s important?”
Which negotiating type is being used in the above statement?
___Expanded negotiation______________________
“Board, rather than focusing on the fact that our fees are slightly higher than the
other firm, I would like to present the advantages you’ll receive in services when you
hire my firm.”
Which negotiating type is being used in the above statement?
____Expanded negotiation____________________
P a g e | 22
Social Styles
Use the questionnaire and chart on the next page to assess your social style. Plot the two average scores on the chart.
Assertiveness Ratings
I perceive myself as:
Responsiveness Ratings
I perceive myself as:
P a g e | 23
Quiet........................................... Talkative
Slow to Decide ..................... Fast to Decide
Impulsive.................................... Deliberate
Going along .......................... Taking charge
Using opinions ...........................Using facts
Supportive................................ Challenging
Informal ......................................... Formal
Emotional............................... Unemotional
Deliberate............................. Fast to Decide
Easy to know.........................Hard to know
Asking questions ............. Making statements
Warm................................................. Cool
Cooperative ............................. Competitive
Excitable............................................ Calm
Avoiding risks .......................... Taking risks
Animated................................. Poker-faced
Slow, studied ............................. Fast-paced
People-oriented ......................Task-oriented
Cautious....................................... Carefree
Spontaneous ................................. Cautious
Indulgent ............................................ Firm
Responsive .......................... Nonresponsive
Humorous ...................................... Serious
Mellow................................. Matter-of-fact
Reserved ...................................... Outgoing
Lighthearted.................................... Intense
Total Score =
/ 15 =
Total Score =
/ 15 =
P a g e | 24
Plot your score on the chart below to determine your social style. Use your
Assertiveness Score for the horizontal axis and your Responsiveness Score
for the vertical axis.
Low Responsiveness
High Responsiveness
Example where the Responsiveness Score is 3.0 and the Assertiveness score is 3.5. The social
style for the example is “Expressive.”
P a g e | 25
AMIABLE: (High Responsiveness, Low Assertiveness)
The amiable person likes other people's company, though is more of a listener
than a talker. Expressive people find them useful, because they are prepared to
listen to what they are saying. They are loyal, personable and show patience
when dealing with other people.
They may however not be perceived as people " who get things done " because
they spend more time developing relationships with others. They are also
unlikely to take risks as they need to have the feeling of security.
In difficult situations, they are likely to avoid the situation and lack conviction of
their feelings and if pushed likely to make promises that they cannot keep.
Drivers often find them frustrating because they want a straight answer and the
amiable can find this difficult to deliver.
Characteristics: Loyal, personable, patient, Uncomfortable with risk, NonConfrontational, Dislike pressure, Enjoy the company of others.
In conflict: Likely to be " passive", lack conviction, avoidance,
Solution: Reassure, Support, Confirm commitment
Basic Need: Security
EXPRESSIVE: (High Responsiveness, High Assertiveness)
The expressive likes the company of other people, though unlike, the amiable
this is because they need to " express " themselves. Amiables complement them
very well, unless the expressive becomes too aggressive and puts them off.
They can be good people to have at a party, because they're enthusiastic,
dramatic and "interesting" people to have around. However, if they don't receive
the attention they crave, they can get upset and even "difficult" to deal with.
In conflict, they become emotional, prone to exaggeration and unpredictable.
The best way to deal with this is to let them calm down. Try not to fuel the fire
by saying anything controversial.
Characteristics: People orientated, centre of attention, positive, emotional,
talkative, enthusiastic, dramatic.
In conflict: Unpredictable, emotional.
Solutions: Allow them time to gain composure, Ask questions, problem solve.
Basic Need: Recognition
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ANALYTICAL: (Low Responsiveness, Low Assertiveness)
Analytical people can appear unsociable, especially to Amiables and Expressives.
They may seem serious and indecisive. This is because they need to look at
every conceivable angle before they feel satisfied. A consequence of this is that
they are persistent in their questioning and focus on detail and facts. However,
once they have made a decision, they stick with it as they invariably feel that it
is infallible.
In conflict, they can "whine", become sarcastic and are often negative.
Characteristics: Serious, mull matters over, Indecisive, persistent, ask lots of
questions, attention to detail.
In conflict: whining, sarcastic, negative
Solution: Keep to the facts, Don't agree with them, listen attentively
Basic Need: To be correct
DRIVER: (Low responsiveness, high assertiveness)
Drivers are task orientated and expect efficiency from everyone they come into
contact with. Little emphasis is placed on building relationships with other
people. They can be perceived as aggressive and uncaring, especially by
amiables, though are often needed to take risks and push things through. In
conflict, they will try to " steam roller " over anyone who comes in their way.
Characteristics: Task orientated, clearly defined goals, committed, determined,
risk takers, efficient.
In conflict: Aggressive, rude, abrupt,
Solutions: Be assertive and firm, have a solution to the problem, listen.
Basic Need: To be in control
P a g e | 27
The Three Steps to Negotiation
Step 1: Preparation
Brainstorm a list of possible negotiating points
Set reservation and target prices
Find out as much as you can about the other party
Step 2: Bargaining
Build rapport
Continue gathering information
Exchange information
If you reach an impasse:
Keep focusing on interests, not positions
Make a small concession if necessary—then insist on receiving
one in return
Allow for silence
Maintain objectivity in the presence of irrationality and emotion
Negotiate for the long term—allow for wins on both sides
Don’t win the battle but lose the war. Negotiations may need to be
reopened following inspections and appraisals.
Step 3: Settlement
is the final step in a negotiation
Remember to negotiate to the end
Put a ribbon around it so small details don’t later become big problems
P a g e | 28
Combating Subjective Tendencies
There are several issues to consider in combating subjective tendencies.
Determine your BATNA
__ Best Alternative to a Negotiated Agreement ____
“If this doesn’t work, what’s my next step?”
Reservation Price
The value below which you would rather accept impasse and settle for
your best alternative
“My absolute bottom line at which I’ll accept no less.”
By setting a target, you shift your focus from getting just enough to
getting what you want.
“What’s my ideal in this situation?”
The Importance of Information
Information is the key to finding trade offs. Consider asking the client
to allow you to share what would otherwise be considered confidential
information in order to move toward an expanded decision.
(Collaborative/expanded negotiations)
P a g e | 29
Analyze Interests vs. Positions
Positional Negotiating
People tend to stick to their position which could lead to adversarial
Positional negotiating creates a “win-lose” scenario.
Interest Negotiating
Effective interest negotiating focuses on interests of the participants
rather than their positions
Participants will create a variety of solutions before the outcome is
decided so the result is a “win-win” scenario.
P a g e | 30
Common judgment errors often undermine our abilities to negotiate
optimal agreements:
Under or overconfidence:
Because of under confidence we fail to value our assets
Overconfidence in our own strengths may keep us from
considering all relevant information and end up with no deal or a
suboptimal one
Asking questions, exchanging information, listening carefully to
the other party, consulting with others, and taking time to
evaluate alternatives thoroughly can all help in assessing issues
realistically and rationally.
Escalation of commitment:
Out of desire to accomplish something or to win, we escalate our
commitments to irrational levels.
Control escalation of commitment by evaluating our BATNA and
by establishing a firm reservation price.
We become too competitive and succumb to the myth of the
Then, we take your-loss-is-my-gain positions and fail to explore
the full potential of a negotiation.
Focusing on underlying interests rather than stated positions is
essential for overcoming excessive competitiveness. Both sides
can win!
P a g e | 31
Irrelevant anchors:
We anchor our bids and offers around historical figures, industry
standards, or even first offers which often have little or no
relevance to the current negotiation.
Information is the key to avoiding irrelevant anchors. Research,
ask questions, and listen.
Base figures on the most relevant data and reject irrelevant
Biased framing:
We frame problems narrowly, take biased perspectives, and fail
to consider the most critical issues.
Consulting others, calling in third parties, and testing alternative
assessment models can help us gain new perspectives on
negotiation issues.
Unrealistic risk assessment:
We either overestimate risks or underestimate them.
To improve our risk assessment we need to list both risks and
rewards and assess the probabilities.
How To Negotiate A Better Solution
Understand your own goals
Evaluate your BATNA, and set your reservation price
Take your time, ask questions, research information, and
exchange information
Search for trade-offs and opportunities to expand and improve
your agreements
Then evaluate proposals thoroughly, staying open to expanded
solutions and focusing on your interests rather than winning.
P a g e | 32
Preparing for a Disaster
Disaster FAQs
Please discuss whether there are changes for association requirement to
repair to air conditioning equipment on the roofs of high rises.
This issue confuses both board members and unit owners. The laws changed
in 2009. The condo master policy must include coverage for all HVAC – that
means air conditioners, air handlers, compressors, duct work, etc. Having
insurance coverage doesn’t mean the association is always responsible for
repairs to air conditioners though. The association is only responsible for
casualty losses – not wear and tear, not unavoidable damages as a result of
age, etc. If your a/c unit is 15 yrs old and cannot be re-installed after roof
work – that is not a casualty. If your a/c stops cooling – that is not a
casualty. If your a/c unit is hit by lightning, that’s a different story.
Responsibility for damages to condos that are in foreclosure and have not yet
been auctioned by the bank.
The association still wants to take actions necessary to mitigate further
damage to the building. So, that means you would still board up windows,
remove items that must be removed to prevent or minimize mold and get
the a/c working for the same reason, etc. It is money well spent (and should,
for the most part, be included in insurance coverage), even if you suspect
you will never recover the money from the deadbeat owner or the bank
P a g e | 33
No one wants a disaster, but there can be some comfort in the fact that your
association has prepared in advance. A written plan is a valuable piece of
information that enables your association to respond effectively to
emergencies. Furthermore, the plan provides a permanent record of
decisions and acquired knowledge, thus eliminating dependence on
individuals who may later move away from the association or who may no
longer be employed by the association.
While the plan will not immunize your association from disasters, it will affect
the outcome of emergency situations by reducing the amount of lost lives
and property.
The Role of the Condominium Association
Operate the condominium for the health, safety, comfort, and
general welfare of the unit owners.
Protect employees, equipment, supplies, facilities, and unit
owners from disaster
Create an emergency/disaster response and recovery plan
The plan should contain the procedures and provisions that the
association would rely upon to protect employees, unit owners,
and other resources during disaster/emergency situations.
The plan will tell how the association will accomplish the
necessary actions to protect employees, unit owners,
equipment, supplies, property, and facilities.
It should include emergency telephone numbers, call down
rosters, resources listings, maps, and charts, etc.
The plan should include a step-by-step procedures for
cooperation with local governmental officials (i.e., emergency
management officials) to
(1) notify/warn all affected persons,
(2) evacuate affected persons from association facilities,
(3) provide adequate shelter on site or in public shelter (if
approved by emergency management officials),
(4) obtain mutual aid from other associations, businesses, etc.,
P a g e | 34
(5) report situations and request assistance from local
emergency management officials,
(6) communicate with employees and personnel who are
working at different facilities.
The Association Disaster Planning Process
The first step in preparing a disaster plan is to review the governing
documents to determine if they assist or hinder the effectiveness of a
disaster plan. Then get participation from all affected parties and
establish a working relationship with local emergency management
officials to determine what the local disaster threats are and what the
local community is doing to prepare itself. Once this first step is taken,
the following planning process steps are recommended:
Establish the situation base under which planning is to be
accomplished. You cannot plan in a vacuum but must develop
an in-depth knowledge of your community and association
facilities prior to actual plan development. This is accomplished
through collecting, analyzing, and applying data.
Review Existing Plans and Procedures – Before doing any
planning, review existing plans, action checklists,
vulnerability analysis, etc., to determine where there are
deficiencies if any. Don’t reinvent the wheel.
Vulnerability Analysis – The plan must be responsive to
the hazards that may threaten the association. It is not
sufficient to merely identify the hazards; you also should
analyze the potential impact of these hazards on the
Identify Existing Resources – A compilation of the
resources (both equipment and people) that the
association has for meeting emergency situation
requirements to help develop operational concepts.
Capability Assessment – Assess the association’s
capability to adequately protect its employees, unit
owners, equipment, and facilities by measuring available
resources and levels of training and disaster response
experience against the potential needs as determined by
the vulnerability analysis.
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Planning Environment
Demographics – How many employees does the
association have? How many association operating
locations? What kind of access does the association have
to the public transportation network? What kind of
barriers (rivers, roads, bridges, etc.) could impact on
movement to/from locations?
Resource Requirements – Examine resource deficiencies
(people, equipment, etc.), and identify areas (financing,
warning systems, etc.) which should be upgraded or
changed to fit emergency response needs.
Needs -- A determination of disaster preparedness needs
relative to association vulnerability and available assets
should be made.
Unique issues -- An identification of disaster-related
issues that the association is likely to encounter due to
the uniqueness of the condominium form of ownership
should be made.
Plan Development
Write the plan
Print and distribute the plan in sufficient numbers to meet
the needs of the association.
Provide copies to the local emergency management
agency and, where appropriate, to the local service
agencies, i.e., police, fire, public works, etc.
Review/update the plan annually as major changes occur.
Hazard Analysis
In order to determine the emergency need of any community,
knowledge of the types of hazards that might and do exist in that
community is essential. Hazards that may affect condominiums in
Florida will vary from location to location. For example, condominiums
located in low-lying coastal areas are susceptible to wind and tidal
surges, while those located inland are susceptible to wind as well as
rain-induced flooding. Whatever the location, the basics of hazard
analysis for the Association should include:
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Review of potential hazards.
Identification of vulnerability.
Identification of other factors which may compound the
susceptibility of the Association to particular hazards, (i.e.,
inadequate flood drainage, seaward of the duneline, etc.)
Identification of potential obstacles to evacuation (i.e., bridges,
railroad crossings, low causeway approaches, etc.)
Estimation of hazard impact on the association to determine the
building's structural adequacy. Local insurance adjusters or
construction engineers could do building and site evaluation.
The association may not have an expert to determine hazards or the
association's vulnerability; however, such data is readily available.
Frequently, local emergency management officials have identified the
hazards relative to probability and/or location.
The following issues are addressed in the Condominium Act, and are
presented in order to assist in preparing a disaster plan.
Emergency Powers
If a state of emergency is declared where the condominium is located,
the board can:
contract for debris removal without bids.
prohibit unit owners, family members, tenants or guests from
entering the condominium property upon advice of emergency
management officials or licensed professionals. (i.e. the condo is
unsafe for one reason or another)
require residents to evacuate in the event of a mandatory
evacuation order.
authorize removal and disposal of wet drywall, insulation,
carpet, cabinetry, or other fixtures on or within the
condominium property.
levy special assessments without approval of the unit owners.
borrow money and pledge association assets without prior unit
owner approval.
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The emergency powers expire when the state of emergency expires for
that area.
Hurricane Shutters
There are actions the association can take now to mitigate losses in
the event of a storm. The simplest is to have a professional inspect all
hurricane shutters to confirm they are operating properly. If not, the
board can then address the issue directly with the home owner. Many
governing documents allow the association to perform repairs on an
owner’s account if the owner fails to do so after notice. Prevention is
the key.
In 1991, the legislature enacted an amendment to the Condominium
Act, which became effective on April 1, 1992, requiring boards to
adopt hurricane shutter specifications for each building in the
condominium. The amendment requires the specifications to include
factors such as color and style, as well as other factors that the board
determines relevant. The specifications must also comply with
applicable building code requirements. If unit owners want to install
hurricane shutters or other hurricane protection that comply with the
board's specifications, the board cannot refuse to approve the
installation. Another amendment, which became effective on October
1, 1994, allows the board to use association funds to install and
maintain hurricane shutters on or within common elements, limited
common elements, units, or association property. Before the board
can do this, however, the approval of a majority of the total voting
interests in the condominium must be obtained. Upon such approval,
the board must then determine whether the cost of the project will
require the association to obtain competitive bids as required by the
Condominium Act pursuant to §718.3026, F.S.
According to §718.113(5), F.S., if laminated glass, designed to
function as hurricane protection and which complies with the
applicable building code, has been installed the board may not install
hurricane shutters, hurricane protection, or impact glass or other
code-compliant windows except upon approval by a majority vote of
the voting interests. Pursuant to §718.115(1)(e), F.S., a unit owner
who has previously installed this type of laminated glass, or who has
previously installed hurricane shutters in accordance with the April 1,
1992, amendment, may receive a credit equal to the pro rata portion
of the assessed installation cost assigned to each unit. However, the
unit owner will still be responsible for the replacement, operation,
repair, maintenance, and pro rata share of expenses for those
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hurricane shutters installed on common elements and association
property by the board in accordance with the October 1, 1994,
The Condominium Act gives the board the irrevocable right of access
to a unit when it is necessary to operate the shutters in order to
prevent damage to the common elements or to a unit or units.
The two basic types of coverage for unit owners are homeowners
insurance, and flood insurance. A homeowner’s policy is the standard
coverage most people have. It is written in several formats and only
covers water damage if the wind opens the roof, windows, or some
other parts of the building. The homeowners’ policy does not cover
damage caused by water rising to a point where it seeps in around
doors, windows, etc. This type of damage is covered by flood
insurance. Consequently, unit owners in flood hazardous areas
participating in the National Flood Insurance Program should purchase
flood insurance to cover potential flood damage.
The association should also maintain adequate insurance coverage on
common elements and should purchase endorsements to some items
normally not covered by the basic building insurance. Some of these
exclusions, which are among those usually held in common by the
association, are as follows:
Fences, property line walls, and seawalls
Trees, shrubs or plants
Outdoor equipment
Structures and other property located over water (i.e., piers)
The Board of Directors should review the association's documents for
provisions relating to insurance and should inform unit owners about
the form of insurance carried by the association. Unit owners should
be advised to purchase additional coverage for personal property
protection and for potential losses that may exceed the coverage
purchased by the association. Unit owners should be instructed to
keep policy numbers where they can be readily accessible in the event
they must leave before an emergency/disaster situation or when
reporting damages.
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In addition, associations in flood-prone areas should become familiar
with the National Flood Insurance Program (NFIP).
Additional information on flood insurance may be obtained from local
insurance agents or by calling the National Flood Insurance Program
(toll free 1-800-427-4661), or by contacting: Department of
Community Affairs, Division of Emergency Management (National
Flood Insurance Program), 2555 Shumard Oak Boulevard, Tallahassee,
Florida 32399-2100, (850) 413-9959.
The Condominium Act, under §718.111(11), F.S., states:
(a) A unit owner controlled association shall use its best efforts to
obtain and maintain adequate property insurance to protect the
association, the association property, the common elements, and the
condominium property required to be insured by the association
pursuant to paragraph (b). If the association is developer controlled,
the association shall exercise due diligence to obtain and maintain
such insurance. Failure to obtain and maintain adequate property
insurance during any period of developer control shall constitute a
breach of fiduciary responsibility by the developer-appointed members
of the board of directors of the association, unless said members can
show that despite such failure, they have made their best efforts to
maintain the required coverage. The declaration of condominium as
originally recorded, or amended pursuant to procedures provided
therein, may require that condominium property consisting of
freestanding buildings where there is no more than one building in or
on such unit need not be insured by the association if the declaration
requires the unit owner to obtain adequate insurance for the
condominium property. An association may also obtain and maintain
liability insurance for directors and officers, insurance for the benefit of
association employees, and flood insurance for common elements,
association property, and units. Adequate insurance, regardless of any
requirements in the declaration of condominium for coverage by the
association for “full insurable value,” “replacement cost,” or the like,
may include reasonable deductibles as determined by the board. An
association or group of associations may self-insure against claims
against the association, the association property, and the
condominium property required to be insured by an association, upon
compliance with §§ 624.460-624.488, F.S. A copy of each policy of
insurance in effect shall be made available for inspection by unit
owners at reasonable times.
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(b) Every hazard insurance policy issued or renewed on or after
January 1, 2009, to protect a condominium building shall provide
primary coverage for:
All portions of the condominium property as originally installed or
replacement of like kind and quality, in accordance with the original
plans and specifications; All alterations or additions made to the
condominium property or association property pursuant to §
718.113(2), F.S. The coverage must exclude all personal property
within the unit or limited common elements, and floor, wall, and
ceiling coverings, electrical fixtures, appliances, water heaters, water
filters, built-in cabinets and countertops, and window treatments,
including curtains, drapes, blinds, hardware, and similar window
treatment components, or replacements of any of the foregoing which
are located within the boundaries of the unit and serve only such unit.
Such property and any insurance thereupon is the responsibility of the
unit owner.
The foregoing is intended to establish the property or casualty insuring
responsibilities of the association and those of the individual unit
owner and does not serve to broaden or extend the perils of coverage
afforded by any insurance contract provided to the individual unit
owner. Beginning on January 1, 2009, the association shall have
authority to amend the declaration of condominium, without regard to
any requirement for mortgagee approval of the amendments affecting
insurance requirements, to conform the declaration of condominium to
the coverage requirements of this section.
(c) A condominium unit owner’s policy must conform to the
requirements of § 627.714, F.S.
Document Provisions
Insurance coverage and provisions should be adequately and clearly
stated in the association's documents. Examples of insurance
provisions the association may want to address in the documents
include, but are not necessarily limited to, the following:
1) Description of the condominium and association property that is and
is not covered under the association's policy.
2) Insurance Trustee -- The board may have the option of designating
an Insurance Trustee, which may be a bank, trust company, attorney,
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or other person or entity that receives insurance proceeds for the
benefit of the unit owners and/or respective mortgagees.
3) Distribution of Proceeds -- Describes under what conditions and how
insurance proceeds will be distributed to or for the benefit of the unit
owners and/or mortgagees.
4) Reconstruction or Repair after Fire or Other Casualty -- Describes
provisions for determining whether or not the damaged property is to
be reconstructed or repaired and how expenses are to be funded. This
may also include provisions for condemnation.
5) Termination -- Addresses the requirements for termination and
what happens when the condominium is terminated.
The board may elect to establish reserve accounts for use in the event
of a disaster. The funds should be restricted to disaster repairs,
emergency supplies, and to compensate for deductibles and possible
insufficiencies in insurance proceeds.
While there is little that can be done to prevent a disaster from occurring,
there are steps that can be taken prior to an emergency that will speed up
the relief and recovery efforts.
Inventory of Association Documents
Responding to a disaster will be delayed if documents essential to the
decision making contain unworkable restrictions. For example, the
declaration of condominium may provide for automatic termination of
the condominium in the event the condominium becomes
uninhabitable unless two-thirds of the voting interests vote to rebuild.
In the aftermath of a disaster it is difficult to locate a sufficient number
of members to hold a meeting in order to carry out the vote. If the
documents require the appointment of an insurance trustee, and the
association is unable to find a trustee, the association may find that
insurers are unwilling to turn over insurance proceeds to the
association. You should periodically review the condominium
documents with your association attorney in order to ensure that your
documents are up to date and will not encumber a recovery from a
disaster. Copies of the association documents and/or a summary of
pertinent provisions should be maintained at a second location away
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from the community. Among the documents that should be maintained
(1) Articles of Incorporation of the association;
(2) Declaration of Condominium;
(3) Association By-Laws;
(4) Rules and Regulations;
(5) Amendments to the aforesaid items;
(6) Insurance Policies
(7) Construction Plans:
a. Architectural Plans and Specifications,
b. Engineering/Civil,
c. Engineering/Structural and Mechanical,
d. As-built drawings;
(8) Owner Roster:
a. Record title owners,
b. Emergency contact information,
(9) Bank Accounts, along with a list of authorized signatures;
(10) Contracts: Maintenance and Operation All contracts should
address cancellation in the event of the destruction of a community.
(11) Employee Information:
a. Full Name,
b. Date of Birth,
c. Social Security Number,
d. Person to notify in event of an emergency.
Video/Photographic Records
In addition to maintaining the information listed above, the association
should create either a video or photographic record of the community
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and maintain a copy of the record off-site. All of these records should
be updated periodically.
The major ingredients for a speedy recovery following disasters are predisaster planning, availability of aid, public awareness and community
involvement. Recovery from widespread disaster sometimes presents serious
challenges to public agencies in stricken communities. The demands on
government relief organizations may be overwhelming and new problems
may arise for which no authority or procedures are defined. Therefore, the
association should anticipate as many contingencies as possible that may be
encountered during recovery from disasters and have procedures in place to
deal with them. The following is a brief description of disaster recovery issues
and activities that the association should plan for in advance.
Communications Coordinator
Many communities are evacuated prior to a disaster. The association
should identify person(s) to serve as a communications coordinator.
The name, address, and phone number of this person should be
provided to every owner so that, in the event of a disaster, when the
ability to communicate with other owners or the board is disrupted,
the communications coordinator can facilitate communication among
residents of the community. The designated person may be a
professional engaged by the association for that purpose. Regardless,
every officer and director should be instructed to contact the
communication coordinator within a fixed time period after the disaster
occurs to provide an address and phone number where they can be
reached. Efforts should be made to locate all owners. Additionally, the
board should designate a location from which they will function in the
event of a disaster.
Survey the Property
Depending on the nature and extent of the damage, it may be
necessary to evacuate or shore-up a structure, obtain security to
protect against criminal acts and/or prevent further damage.
Photograph or videotape the storm damage.
Contact Employees
The communications coordinator should maintain a detailed list of all
vital information and services utilized by the association. The
coordinator should be provided with a list of all vendors, copies of all
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outstanding contracts and a list of professionals employed by the
association (accountants, attorneys, insurance agents, etc.), as well as
necessary information, e.g., copies of bank accounts, location of all
association funds, including C.D.'s and/or other investments, insurance
policies, and the names of the architect and engineer who designed
the building. It may be necessary to suspend or cancel on-going
contracts, such as pool and lawn services, following a disaster.
Damage Documentation
Timely disaster assistance to individuals and the entire community is
based on information on property losses. Relief agencies will like to
know the following:
• Amount and extent of property damage
• Number of people injured or killed
• Number of people needing food, clothing, shelter, medical and other
• Cost of replacing or repairing damaged property
• Losses covered by insurance
Associations can speed up the assistance process by ensuring that the
above data is collected quickly and accurately. Unit owners identified
in the resource list as real estate brokers, insurance agents,
construction engineers, etc. should be requested to assist in damage
assessment and other information gathering activities. Also, a list of
absentee owners along with their insurance agents would be useful in
contacting these individuals and in collecting information on losses.
Repair of Common Property
Even though federal disaster grants are available for the repair of
properties such as driveways, sidewalks, swimming pools, etc. owned
by private non-profit organizations, condominium associations (albeit
private and non-profit) are not eligible for the Small Business
Administration (SBA) home disaster loan normally provided to
individuals and businesses. Consequently, associations should work
out alternative means of repairing damaged common properties before
disaster strikes (i.e., insurance, dedication of roads to local
governments, self-insurance, etc.).
Imposed Limits to Repair
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Following a disaster, structures located below the line of mean high
water cannot be rebuilt without the permission of Florida's Division of
Beaches and Shores in the Department of Environmental Protection.
Sometimes the Division may establish a field office in a disaster area
or co-locate with other relief agencies in the Disaster Assistance
Center and may authorize emergency permits for repairs of structures
(i.e., stairs, walkways, decks, patios, etc.) in order to prevent further
damage. However, permits will not be issued in the field office to
rebuild where destruction is complete, or to create new lands or
permanent major or minor structures that did not exist prior to the
Associations with property located in the areas under the jurisdiction of
Florida's Division of Beaches and Shores should become familiar with
the Division's procedures so that post-disaster repairs may be carried
out without unnecessary delay.
Debris Removal
Debris removal after a disaster could be a time-consuming unpleasant
task; nevertheless, it is one chore that must be performed in order to
get the association back to normal. Procedures should be established
to address the following:
• Contracting for debris removal on common property
• Record-keeping on the cost of debris removal
• Purchase of insurance coverage for debris removal
All Hazards
- Local Emergency Management Agency
- Local Library
- Newspaper and Other Media
- Local Historical Society
- Regional Planning Councils
- Florida Department of Community Affairs, Division of Emergency
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- U.S. Army Corps of Engineers
- U.S. Geological Survey
- Florida Department of Environmental Protection
- Water Management District
Coastal Erosion
- Florida Department of Environmental Protection, Division of Beaches
and Shores
- National Oceanic and Atmospheric Administration (NOAA), Coastal
Programs Office
- U.S. Army Corps of Engineers
Climatic Hazards
- National Weather Service
- Public and Private Utilities
Fire Hazards
- Local Fire Department
- Florida Fire Marshall, Department of Insurance
- Florida Department of Agriculture and Consumer Services, Division of
Chemical Hazards
- Florida Department of Environmental Regulation
- U.S. Environmental Protection Agency
Disaster Preparedness for Elders
- Department of Elder Affairs
4040 Esplanade Way
Tallahassee, Florida 31399-7000
Phone: (850) 414-2000
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FAX: (850) 414-2004
E-mail: [email protected]