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September 1, 1992 MEMORANDUM TO CLIENTS
AFTER HURRICANE ANDREW Luckily most of us were not hurt by Hurricane Andrew. However, many clients have inquired what should they do after a hurricane after checking on friends and relatives. The first recommendation is take a quick inventory of your physical plant (home, office, common areas, etc.). Make a list of problem areas. If you find none, then you may want to take a closer look as a double check to provide peace of mind. If you have found damage, then contact your insurance agent or insurance company claims office. To provide complete claim information, it is suggested that you have your insurance policy available. When you speak to the claims agent or broker, note the persons name, time and date of call, and his or her response. Confirm in writing to the insurance company what the company will do, and when. If the damage is causing or is threatening further damage, then you are required to "mitigate" your losses by taking preventive action. If time allows, then before undertaking repairs first consult with your insurance company, and document the situation. Photographs are best. Keep receipts for all expenditures. Note, insurance companies will not necessarily reimburse you for what you pay! If you are an association officer, your documents may provide guidelines and restrictions. Many association declarations require insurance trustees to hold and supervise insurance proceeds. Insurance trustees generally are individuals selected by institutional lenders to hold insurance funds to guarantee that the funds are spent properly. Some declarations of condominium and covenants, and association bylaws contain restrictions on what can be spent. A meeting to approve expenditures may be required. If time does not allow for normal notice or a meeting, and your documents do not define emergency, an emergency has been defined by at least one state law as "an event which results or may result in substantial injury or harm to the population or substantial damage to or loss of property." §252.34 Fla. Stat. (1991). When contracting for repairs, if the situation allows attempt to follow normal contracting rules. Use licensed, insured contractors. Bids, even if not required, will help you to determine a fair price. Contracts should be in writing, and carefully reviewed to make certain what you want is what is contained in the contract. Significant repairs may justify the recording of a Notice of Commencement and the hiring of a consulting engineer. Undoubtedly many property owners will now desire to install shutters. If you want to install shutters, then make certain that your contractor complies with local building codes, and if you reside in a development, the development's architectural restrictions. Associations may find it more efficient to promulgate standard shutter regulations. Condominium associations were required by §718.113(5) Fla. Stat. (1992) to have shutter installation regulations in place by April 1, 1992. SECURITY DEPOSITS FOR RESIDENCES
This is the season when many rentals begin and end. Most landlords and many associations require tenants to post security deposits. The holding and return of residential security deposits is governed the Florida Residential Landlord and Tenant Act, specifically §83.49 Fla. Stat. (1991). Condominium associations must comply with the Act when providing security deposit notices, refunds, or interest pursuant to §718.112(2)(i) Fla. Stat. (1991). The Act requires the holder of a security deposit to provide written notice to a tenant within thirty days of receipt of the deposit. The notice must by state whom and where the deposit is held, whether the deposit is commingled with other funds, whether the deposit bears interest, and whether the deposit is maintained in a Florida institution. The notice must also include a copy of the Act's return of deposit provisions. To protect tenants, security deposits must be accounted for in one of three ways. First, a deposit may be held in a non-interest bearing Florida bank account without commingling the deposits with other funds in which case the tenant is not required to be paid interest. Second, deposits may be held in an interest bearing Florida bank account without commingling the deposits with other funds in which case the tenant is required to be paid seventy-five percent of the interest paid on the deposit, or five percent per anum at the landlord's option. Third, the landlord may post a bond of the lesser of $50,000.00 or the value of the deposits and pay interest at five percent per anum in which case the deposit may be invested however the landlord desires. Within fifteen days of the end of a rental or lease the landlord must provide the tenant a notice concerning the security deposit in the form and manner required by the Act. Even if the deposit could be held for damages to premises or common areas, if the notice is not provided, the tenant has a right to the return of the entire deposit, and the landlord forfeits any claim to the deposit. A renewal of a lease is considered a new lease and new notices should be provided the tenant.
© 1992 by Gelfand & Arpe, P.A. |