There are a few updates as to the status of recent issues:
1. Hurricane Milton - I reached out to Negary Sharifi, Assured Partners, for her advice as to how to move forward to handle the hurricane damage done to Units 180, 184 and 140. Below she explains how hurricane insurance works.
I just left you a voicemail but wanted to follow up with an email. Sounds like you know what you are doing so great job documenting! Please be sure to take photos and start collecting repair estimates. The Association’s Hurricane deductible is 5% per building, subject to a $250,000 minimum. So what that means is, there first needs to be $250k in total hurricane damages before the carrier will pay out. That would mean roughly 4-5 buildings would need to be damaged before the policy would pay out.
Below I have illustrated how this would work using the building values from Lake Villas.
Here is an example below:
Replacement Cost Value | 5% Deductible | Deductible per building |
$1,343,947 | =$1,343,947* 5% | $67,197 |
$836,184 | = $836,184 * 5% | $41,809 |
$1,833,125 | = $1,833,125 * 5% | $91,656 |
$1,099,930 | = $1,099,930 * 5% | $54,996 |
Total | $255,568 |
If you have any questions please let me know. Thank you!
Hopefully this will answer members' interest in whether we should submit the hurricane damage to these Units to our insurance carrier. Further, Negar, expressed that Lake Villas has had a number of claims in the last several years, tree damage through roof, personal injury, fire damage to Unit 144A, new roofs and gutters, etc. This is making it hard to get coverage and it could increase our insurance premium costs. So at this time we may deem not to submit a claim.
The maintenance personnel cleaned the area from Units 652 to Unit 128 of the downed debris on Friday, October 11, 2024 from Hurricane Milton. Our Lawn maintenance personnel came on Saturday, October 12, 2024 and cleaned the remaining debris. You should inquire how long it is taking to accomplish that task of removing debris from Hurricane Milton on other Condo properties in the area.
2. Property Manager - We have terminated the services of HMI as of 12/31/24. Several members have been attending interviews of new property management companies. After several interviews, additional searches found companies with very high monthly charges, i.e. $2,500 p/month plus, and a few turned us down, so the committee arrived at a consensus of 2 contenders: Top Notch ($950 p/m) and First Services ($1,250 p/m) . First Services has contacted us frequently since the search began. One of the primary strengths is their financial team, accounts, CPAs, and strong controls. Further, they are organized, professional and have reminder notices that are current to what's happening in the industry, weather, and upcoming law changes for the Board next year. I have attached the most recent flyer they would have sent out to all members.
Top Notch is a smaller company with less personnel and may not be as financially strong and may not be able to assist us in improving our situation at this time.
We need to choose a new management company between the two choices above at the October 29, 2024 Board Meeting.
3. Special Assessments - We will vote on 2 assessments on October 29, 2024, that were recommended by the Committee working on the SIRS and Reserve Accounts:
(a) $150,000.00 - for the repairs to be made to a wall on each of the following Units 180, 184, 162, 140, and 120. These are the most critical of damaged walls that have been identified to get completed. Hurricane Milton did further damage to Units 180, 184 and 140.
(b) $50,000.00 - to complete the run and rise of the steps and repair the run and rise on all paver steps throughout the complex. Code Enforcement deadline 3/10/25. Pursuant to an Order we must show completion of 2/3rds of the Code Enforcement Violations dated 10/21/2021. We still need to have the railings inspected and submitted to Code Enforcement.
However, another suggestion was proposed for the above listed choice of the special assessment, we could alter the special assessment as follows:
(a) $150,000 remove completely,
(b) $50,000 change the description as follows: $10,000 on steps Units 186, 652, 670 and 144 to complete for Code Enforcement Order requirements and $40,000 to wall repairs Units 180 and 184.
This would change the Special Assessments total from $450,000 to $300,000. Does the membership prefer this change or do we move forward as originally proposed? Keep in mind the repairs to Units 162, 140 and 120 would remain undone under the new proposal. The money to finish the paver steps would have to be assessed in 2026.
4. Proposed Budget - The budget being proposed could exclude the following expenses:
(a) no paid onsite manager on property
(b) no onsite maintenance personnel controlled by Lake Villas
This proposed budget for 2025 will be sent to all residents and will be voted on at the November meeting.
5. Elections - to run for election to the Board, there are new requirements:
(a) The new candidates must take the 4 hour required certification before 12/31/24. This is a free course. The information to sign up and take can be obtained from HMI and the course is being offered for free.
(b) The new candidates must submit their Notice of Intent to Run by 10/31/24 to HMI.
(c) Rules and regulations to be a Board Member are very extensive, please review these new rules. This information can be obtained from HMI.
There have been several suggestions being sent around regarding potential Board Members. Lake Villas could and should benefit from the new Florida State Requirements/Statues (which apply several new restrictions), a new stronger management company with more personnel to handle our financials (accountants and CPAs), and new board members who could and should be involved in determining the future of Lake Villas.
The 2025 Board will be faced to complete the SIRS report ($250,000 special assessment to complete Unit 186A-F) the still pending Reserve report of ($515,000 per years 2026, 2027, 2028 and 2029 the report deadline to change the amounts must be submitted by 12/31/24), code enforcement (completion of the stairs, railings and paver steps with a fine running at $250 a day, the current Order and Violation expires on 3/10/25), there are no guarantees as to the length, if any, for an extension if we do not comply with our current Order, and repairs to 7-8 remaining buildings. Installing a bulkhead at Unit 652, the concrete walls at Unit 652 and in front of Unit 690, and the adult pool leaks, to name a few issues. These are serious and expensive problems.
As to the proposed RESERVE REPORT possibly we could suggest it be changed from $515,000 per year 2026-2029 to $300,000 as the assessment amount per year, and work at getting a building a year done or repairs to individual walls on specific units that can't wait until that building is placed in an order for completion. Or the bulkhead, pool leaks, etc.
These are issues that are upcoming. Board Meeting on October 29, 2024 at 7:00 pm. clubhouse.