The February Issue Includes:
Avoid Penalties from the IRS
- Ding Dong! Association Calling!
- Blockbuster Red Carpet Premiere in Leesburg
- Red Carpet Premieres
- Who's The Most Awesome In Your Association?
- The Florida Statute Organization Service
- The Most Awesome Mug Now
- Did You Know?
- Want to be Featured on our Web-Site?
- Quote Of The Month
- March Birthdays
Avoid Penalties from the IRS
Most Florida Community Associations, (Condominiums, Homeowners Associations and Cooperative Associations) are organized as "Not-for-Profit"
corporations. So, no need to file a tax return-right?
That would be wrong! While most Florida Community Associations pay little or no taxes directly, (which may not be true for Associations that directly rent property or otherwise engage in income-producing activities, other than collecting assessments), a community Association must still file Federal Income Tax returns.
Condominium Associations and Homeowners Associations will usually file an IRS "Form
If at least 60% of the Association's gross income is from membership dues, fees or assessments, and 85% of the property or Units are used for residential purposes (which may include rentals by the members) the Association will pay little or no Federal Income Tax.
Those in Cooperatives will be required to file an IRS "Form 1120-C."
The Form 1120-C, is more complex, and requires the allocation of patronage and non-patronage income. The Form 1120-C should be left to the Cooperative CPA!
|Ding Dong! Association Calling!
By Arlene Ring, Director of Public Relations
Starting a new resident off in your community may be one of the most important tasks you do as a Board Member. If a resident is welcomed into the community and in a warm, friendly manner advised of their responsibilities as a member of a deed restricted community, it can pay off in dividends to the community. They can be a friendly resident and supportive of the Association's rules and regulations and a productive, involved resident. Or they can become one of your worst nightmares.
To make a positive impression on your new residents, consider forming a Welcoming Committee. It will be one of the most important committees your Association can establish. The Welcoming Committee may very well be the very first ones to establish contact with new owners. They can make or break the new resident's relationship with the Association. We would suggest one Board Member either head up the Committee or serve on it and report back to the Board of Directors. The Association should then put together a "Welcome to Neighborhood" package (approved by the Board). We suggest that the package consist of the following items (depending upon your neighborhood):
The Association's Governing Documents (Declaration), Articles of Incorporation, Bylaws, Rules and Regulations, Architectural Guidelines, or any other pertinent documents including any amendments to the these Documents.
- A listing of local schools, churches, utilities, doctors, hospitals, urgent care centers, veterinarians, and kennels.
- The Board of Directors' contact information.
- Your manager's (if you have one) contact information and perhaps some information about the management company and/or manager.
- Consider obtaining coupons and/or information from local businesses such as a dry cleaner, AVON lady, hair salons, spa, and fitness centers. You might even be able to persuade the vendor to pay a small fee to be part of this package.
- Copies of your Association's newsletters. If you have a digital newsletter, run a copy off to put in this package and then you can request their email address to receive future newsletters.
- Information about your Facebook page (if you have one).
- About your website (if you have one). Include what type of information they will find on it.
- A schedule of the Board or Members Meetings so your new resident can attend.
- A short form to determine if they would like to serve on a committee or in the future, the Board of Directors.
Once the Board and/or Committee learn of a sale of a residence, you should call the Realtor and ask for the new owner's name and move in date. Contact the owner and set up an appointment to come by and visit for fifteen to thirty minutes.
When you arrive at the new resident's home, consider bringing a basket of fresh homemade muffins or cookies or loose flowers with the Welcoming Package. This creates a more friendly and inviting visit. You might even have a resident who sells products such as Mary Kay cosmetics, candles, soap, etc. and would provide you some samples to add to the basket with their contact information.
After the Welcoming Committee has visited with the new owners, follow up with the committee person to see what transpired. Perhaps the owner wanted to become involved with the Association, and you could contact them and get them involved. Every Association needs more positive resident involvement.
Make the Association's first contact with a new member a positive one. Some Associations unfortunately get off on the wrong foot by having their first contact with new members be one of a confrontational
nature (i.e., a covenant violation). If there is a breach of the Association's documents, follow up with the new members on that issue after the Welcoming Committee has made their visit. Don't ask the Welcoming Committee to be the "bad guys." You always want the door to be opened wide for them.
First impressions count! We all know this. So, make the Association's first impression with the new member a positive one by establishing a friendly and informative Welcoming Committee.
Blockbuster Red Carpet Premiere in Leesburg
"The Magnificent Board Member: The Joint Board Certification Class" made its premiere on Saturday, February 9, at the Royal Highlands' Great Hall in Leesburg! Complete with the red carpet and Hollywood Walk of Fame, we hosted our first "Embracing Community Gathering" of the year.
Our Cast of Leading Men, Featured Men, and Support Male presented an informative "documentary" on Board Member Responsibilities, Elections, Budgets and Reserve, and Financial Reporting constituting the State Mandated topics for Board Certification as approved by the Legislature for Community Associations. The cast won rave reviews for the glamorous attire.
Also present were our Assistant Executive Producers: Centennial Bank, Asphalt Restoration Technology Systems, Inc., ISA Insurance Solutions of America, and Paradigm Boardband Group. During intermission and the Wrap Party, our cast took those tough interview questions from our "reporters" (board members) and "editors" (managers) - both on and off the record!
And... the reviews are in! Here is just a sampling of the reviews by the illustrious reports and editors attending the Premiere:
- Suren Ramjattan, Vice President, The Hill of Clermont HOA - "Certification class is very informative and I will recommend all board members of any HOA should attend."
- Katherine Beebe, Board Member, Royal Highlands HOA - "The Q & A were excellent."
- Gailmarie Frazier, Secretary, Titusville Medical Plaza - "Clayton & McCulloh has provided excellent legal services on multiple Condo Associations I am involved with. I would highly recommend them. Very good content. I learned several new things. I was never bored."
- Jeffery Domfort, Vice President, Springwood Village COA - "Very informative, helpful, and even entertaining. Very knowledgeable and informative and good to have a panel of expert for each category present from statutes to budget to financial reporting and running a board."
- Ronald Keyston, President, Park South Management - "I come every year this is a great tool."
We want to thank everyone attending the Leesburg Premiere and spending their Saturday with us. You rocked!
Our next Red Carpet Event is coming up and you are cordially invited to walk the red carpet and Hollywood Walk of Fame for the Melbourne Premiere of the "The Magnificent Board Members: The 2019 HOA Board Certification Class" and "The Magnificent Board Members: The 2019 Condo/Cooperative Board Certification Class."
Saturday, March 30, 2019
Oasis Resort at Palm Shores (Space Coast Realtor Association Building)
2950 Pineda Plaza Way
Melbourne FL, 32935
Two separate Blockbusters designed just for you. No having to listen to condo questions in the HOA premiere and vice versa. Each class is designed just for your type of community association.
Please join us and invite your fellow Board Members and Board Members in other Associations. Completely (with plenty of time to "interview" our cast - both on and off the record (ask all the legal questions you want).
Limited space, so sign up quickly.
he Magnificent Board Members is a great class to learn more about how COA/Co-Op and HOA work. Our magnificent attorneys will explain the rules and regulations within the law.
The Magnificent Board Members: 2019 COA/Co-Op Board Certification
Date: Saturday, March 30 - Hosted by Clayton & McCulloh
: Leading Male Ken Clayton, Senior & Founding Partner, & Leading Male Brian Hess, Partner
Location: Oasis Resort at Palm Shores (Space Coast Association of Realtors), 2950 Pineda Plaza Way, Palm Shores (where
the Pineda Causeway used to end before redirection)
The Magnificent Board Members: 2019 HOA Board Certification
Saturday, March 30 -
Hosted by Clayton & McCulloh
Featuring: Leading Male Neal McCulloh, Senior & Founding Partner, Russell Klemm, Partner & Alan Schwartzseid, Senior Collections Attorney
Location: Oasis Resort at Palm Shores (Space Coast Association of Realtors), 2950 Pineda Plaza Way, Palm Shores (where the Pineda Causeway used to end before redirection)
The Magnificent Board Members: 2019 HOA Board Certification
Date: Thursday, April 13 - Hosted by Clayton & McCulloh
Featuring: The Attorneys of Clayton & McCulloh
Publix Field at Joker Marchant Stadium in the Flying Tigers 34 Club, 2301 Lakeland Hills Blvd., Lakeland (Inside Event)
Sign up now as space is limited!
Did a member of our firm go over and beyond the call of duty for you? Did we get great results for your Association? Did you enjoy our seminars? Was someone particularly helpful to you? Has one of our Valued Partner Vendors, exceed your expectations?
We strive to do that every day and the firm likes to know when we exceed your expectations. We in turn like to recognize the team member who exceeded those expectations or secured desired case results. If you found that one of us fell into that category, would you please complete the form below? The member who is recognized will receive a set of your comments in an internal email to be placed in their personnel file. Additionally, with your authorization, your comments will be published in our newsletter, website, and Facebook page. Thank you for your consideration.
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Who's The Most Awesome In Your Association?
Board Members and Managers often work tirelessly with very little appreciation, but you have an opportunity to change that! Nominate your favorite Board Member or Manager who has gone above and beyond the call of duty for your Association. The 1st Quarter "Most Awesome" nomination deadline is April 16, 2019.
Use the buttons below to nominate a Manager or Board Member you know who has truly gone above and beyond the call of duty for your Association. Be sure to elaborate
so we know why your nominee is the Most Awesome!
Clients and Non-Clients
Get Yours Now! Limited Amount Available!
The Florida Statute Service
This newly improved service places all the Florida Statutes you need for your Community Association in a green beautiful leather-like, gold leaf embossed three ring binder. The service binder indexes all the pages in clear sheet protectors with numerous "how to" articles included as a bonus.
Choose from four books:
Homeowners Association (Chapter 720)
Condominium Association (Chapter 718)
Mobile Home Park (Chapter 723)
Cooperatives (Chapter 719)
For 2019, we have upgraded to a larger binder to provide you more room to turn pages, for your Association's Governing Documents, and informative articles.
These articles include the following topics:
Fiduciary Duty of Board Members
How to be a Director
Marketable Record Title Act
Complimentary annual updates to the books will be provided electronically, by request, on the 15th of September and January of each year. The cost of each book is $69.23, or $96.23 for the deluxe version (taxes included). Order yours today through our website using the button below.
Most Awesome Mug Now Available!
Do you have a Most Awesome Board Member? Do you know of a Most Awesome Board Member? You will need the
Most Awesome Mug. The Most Awesome Mug is a beautiful gold metallic, ceramic mug, that will keep your hot beverage warm. The mug is a great gift to give the Most Awesome Board Member you know. The mug is available for purchase at all of our seminars. If you would like to pre-order your mug and pick it up at one of our seminars, simply request the mug on your registration form on our website. The Most Awesome Mug cost $7.00 (tax included). If you would like to purchase your Most Awesome Mug and pick it up form our Maitland Office, contact our
Public Relations Department.
The mug is available for shipping for $15.65 (shipping and handling included).
Did You Know?
Clayton & McCulloh Offer an Annual Meeting Package Service
layton & McCulloh offer a flat rate for Annual Meeting Package Service.
We will prepare the necessary
documents for your Association's Annual Meetings. Properly prepared documents, accompanied with legal advise to ensure the correct procedures and time frames are followed by your Association to avoid election and Annual Meeting Challenges for the Association.
Want to be featured on our Web-Site?
Would you like your non-profit organization featured on our web-site? Did you know we have a page that is devoted to non-profit organizations with their meeting dates, times, and locations? We do! On our
we list the non-profit organizations that are designed to service the needs of community associations. If we have inadvertently left yours off and you would like to add it, then please complete this
Please allow up to two weeks to add your organization to our web-site.
Join Us In Celebrating These Birthdays!
March 4 - Sharon Freeman, TCB Property Management LLC
March 6 - Ernst Hofmann, Town Homes of Paradise Beach North Owners Association, Inc.
March 8 - Dorothy Healey, The Villages of Seaport Condominium Association, Inc.
March 9 - Maria Frasca, Preferred Community Management, Inc.
March 9 - Richard Wikle, Tropic Sun Towers Condominium Association, Inc.
March 12 - Hector Novoa, Community Management Resources, LLC
March 18 - Nellie Woodruff, Gems West Condominium Association, Inc.
March 20 - Theresa Rinko, The Regency Plaza Condominium Association, Inc.
March 22 - Gregory Wisner, Ameri-Cana Resoprts Co-Op, Inc.
March 31 - Calvin Rolfson, Country Club of Mount Dora Home Owner's Association, Inc.
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