00:46:14.000 –> 00:46:15.000
And then make sure you kind of ensure every protection you can.
00:46:15.000 –> 00:46:16.000
That’s kind of the goal of this kind of session.
00:46:16.000 –> 00:46:29.000
And that’s just one of the ways that you you can make sure you’re in compliance.
00:46:29.000 –> 00:46:30.000
But we can get on.
00:46:30.000 –> 00:46:35.000
Yeah, and just to kind of, yeah, it’s a just to get that kind of, let everyone that’s participating on this. You know, a city national.
00:46:35.000 –> 00:46:48.000
But City National Bank. We, our main focus is to provide advice, guidance, and a perspective to any board, whether it’s within the State of Florida or outside of the State of Florida.
00:46:48.000 –> 00:46:49.000
We’ll provide advice and guidance on what should be what we see.
00:46:49.000 –> 00:47:06.000
The norm in regards to it. And if you guys, if anybody has any questions or needs a little bit more in depth, conversation about what they should be doing, please feel free to reach out to Steve and Jake, my information will be shared, you can reach out to me I always have my phone and I’m
00:47:06.000 –> 00:47:15.000
available all the time. If you want more information, or more, or get a little bit more granular with your individual associations or clients.
00:47:15.000 –> 00:47:24.000
Absolutely, and we’ll share. I mean, if the question is above our heads, we’ll relay it to Maurice, and he’s been more than helpful with a ton of this.
00:47:24.000 –> 00:47:29.000
And yeah, property managers as well they, you know, he’s still with managers.
00:47:29.000 –> 00:47:37.000
He’s out with associations trustees, board members. So any questions you guys have, we can definitely get granular.
00:47:37.000 –> 00:47:45.000
But we’re gonna take it. Actually, we’re gonna now that we got kind of deep in the weeds. We’re we’re gonna kind of bring it back to the basics.
00:47:45.000 –> 00:47:50.000
And but you know the question of this whole thing.
00:47:50.000 –> 00:47:54.000
We’ve brought up a bunch so far. What is Fdi say?
00:47:54.000 –> 00:48:16.000
What does it cover? Fdic was created 1990, 1933, as Maurice mentioned, no, no depositor has lost a penny in fdic since 1933, and to take it a step further on the Massachusetts level any depositor
00:48:16.000 –> 00:48:22.000
in dif and fdic insured accounts. No depositor has lost a package since inception as well from 1934.
00:48:22.000 –> 00:48:37.000
Now as far as what it covers, savings, accounts, checking account, checking accounts now accounts, is it which is a negotiable orders of withdrawal savings?
00:48:37.000 –> 00:49:02.000
Money, market retirement accounts. Now, if if a bank is fdic insured, it provides for full insurance, for its customers, deposits and accrued interest up to $250,000, no exception, and, as Maurice as mentioned, as Stephen
00:49:02.000 –> 00:49:11.000
has mentioned. Nobody has lost a penny no deposit as long as a penny in Fdic, and shared accounts.
00:49:11.000 –> 00:49:15.000
Since 1933. Now, what does what does it not cover?
00:49:15.000 –> 00:49:22.000
Above 250,000, so that we’re gonna get into in a second. And we’ve kind of touched on it.
00:49:22.000 –> 00:49:28.000
What happens if your association needs to safeguard more than 250,000.
00:49:28.000 –> 00:49:31.000
Just for general purposes, doesn’t cover stocks of bond investments.
00:49:31.000 –> 00:49:36.000
Mutual funds, annuities, Munis Municipal securities, Crypto.
00:49:36.000 –> 00:49:49.000
So so you won’t be able to invest your Bitcoin, or and much of the chagrin of Elon Musk.
00:49:49.000 –> 00:49:56.000
But there are. We’ll just get we’ll go back to Fs in a minute.
00:49:56.000 –> 00:49:57.000
Cool.
00:49:57.000 –> 00:49:59.000
But let’s we wanted to just touch it on this for a moment.
00:49:59.000 –> 00:50:05.000
Sipsy. Si PC. Securities, investor, protection Detective Corporation.
00:50:05.000 –> 00:50:07.000
Just we’re just gonna touch on this for a moment, cause this is more likely to be used by individuals.
00:50:07.000 –> 00:50:27.000
This is generally this involves, you know, stock bonds, cash, those types of securities not as much used for associations.
00:50:27.000 –> 00:50:28.000
Jake.
00:50:28.000 –> 00:50:29.000
But we can go ahead.
00:50:29.000 –> 00:50:32.000
And I’m sorry to cut you off. I just wanted to time in on this.
00:50:32.000 –> 00:50:36.000
Now I know you say that it’s more use for individuals versus condeminations.
00:50:36.000 –> 00:50:37.000
I have seen where some associations would want to put some other funds into treasures and things of that nature.
00:50:37.000 –> 00:50:45.000
Those things are always dictated by the Buylaws.
00:50:45.000 –> 00:50:58.000
The bylaws of of your association would tell you, if your risk, if you’re able, if the bylaws allow you to invest those funds into investable assets, because you can’t just say well, you know I want Treasury, as well, you’re
00:50:58.000 –> 00:51:15.000
bylaws, dictate what you can and cannot do, so we would first recommend you to either the Board members or the Property Management Company to to speak to Canada, to their Council, and say, Well, do our bylaws allow us to invest before you decide to just go Ahead and try to invest
00:51:15.000 –> 00:51:17.000
but just wanted to piggyback on that. Jake.
00:51:17.000 –> 00:51:18.000
Yeah.
00:51:18.000 –> 00:51:23.000
And that answers that answers another well enlightens.
00:51:23.000 –> 00:51:37.000
Me. Yeah, cause I was thinking of protection of investors as to their brokers, so Maurice’s answer is, is it enlightening?
00:51:37.000 –> 00:51:46.000
But it leads to another question that was asked. The only other question, though, is that pre registration which was Can we be a little more, Darren?
00:51:46.000 –> 00:51:56.000
And they mentioned fislick, which is no longer, but was for savings and loans.
00:51:56.000 –> 00:51:57.000
Right.
00:51:57.000 –> 00:52:00.000
It all became part of Fdaic, but there are some very safe investments with higher returns, especially these days.
00:52:00.000 –> 00:52:03.000
More than the point 10, what point? 20, that banks were giving!
00:52:03.000 –> 00:52:14.000
Not too long ago, where it’s backed by the full faith and credit of the United States Government.
00:52:14.000 –> 00:52:26.000
We won’t get into the debt sailing on whether it should be race, or whether the full faith and credit isn’t good enough.
00:52:26.000 –> 00:52:30.000
We’re going to assume that again. We’re all in trouble.
00:52:30.000 –> 00:52:31.000
If it isn’t. Somebody asked a question about bail.
00:52:31.000 –> 00:52:36.000
And where deposit is considered unskilled.
00:52:36.000 –> 00:52:42.000
Creditors. I had mentioned that after you get your $250,000, Ftic insured, it’s sort of like a bankruptcy.
00:52:42.000 –> 00:53:09.000
So you’re in a big line with others. If there’s a failure come to my knowledge, there’s that panic case where for the $253,000 limits where the depositor had a standard in the back of a line jake.
00:53:09.000 –> 00:53:13.000
Yeah.
00:53:13.000 –> 00:53:14.000
Yeah, we we can find. We’ll put it on.
00:53:14.000 –> 00:53:19.000
And we only have 6 months. Hello! 45 min of materials.
00:53:19.000 –> 00:53:23.000
We’ll put it on a 2 times speed. And so we’ll talk really fast.
00:53:23.000 –> 00:53:30.000
But yeah, we’re gonna get into some of the things that Stephen and Marius just touched on.
00:53:30.000 –> 00:53:40.000
So what I’m going to discuss next is basically, you know, someone asked.
00:53:40.000 –> 00:53:45.000
Someone asked, you know there’s a board obligation to maximize profit, and Maurice touched on this very nicely.
00:53:45.000 –> 00:53:52.000
By mentioning the bylaws, because initially, I was gonna stay.
00:53:52.000 –> 00:53:57.000
Yeah, I mean, it depends on your boards and unit owners.
00:53:57.000 –> 00:54:04.000
Time, horizon, risk, horizon. But it’s very, very important to look at the bylaws.
00:54:04.000 –> 00:54:09.000
The governing documents to see what you can even do, as far as investments.
00:54:09.000 –> 00:54:21.000
And I told Jake that he should tell the listeners to put the money in their mattress, and he had no idea what I was talking about.
00:54:21.000 –> 00:54:28.000
Yeah, yeah. That one went over my head that. But I get it now.
00:54:28.000 –> 00:54:29.000
Yeah, you know, in regards to what you were talking about, right?
00:54:29.000 –> 00:54:39.000
You know there is a facial responsibility of the Board or the trustees to maximize the return of unused assets for the Board.
00:54:39.000 –> 00:54:53.000
Like, I said. You know the bylaws dictate what that can look like for each individual based the fact that we’re in Florida.
00:54:53.000 –> 00:54:58.000
We, although we do, we write, always recommend for our association to have their money liquid.
00:54:58.000 –> 00:55:05.000
You never know, an unforeseen need or an emergency, or a major catastrophe.
00:55:05.000 –> 00:55:21.000
Here we’re prone to having hurricanes, you know, so we always wanna make sure that our clients have access to those funds and liquid in case you know, you need to mobilize a contractors engineers, and things of that nature or start taking doing repairs to your
00:55:21.000 –> 00:55:36.000
to the, to the Association while you’re in the in the claims process with your insurance provider, you know, because if you put your your funds into any kind of treasury and you’re not as n liquid as you thought, you were, then you know you can get
00:55:36.000 –> 00:55:37.000
penalized for just terminating those treasuries, and earlier.
00:55:37.000 –> 00:55:47.000
Than they’re supposed to. Then number. So it’s always good to have a conversation around the liquidity needs of the Association.
00:55:47.000 –> 00:55:53.000
How much is the need from an operating point, what they would like to have a.
00:55:53.000 –> 00:55:56.000
How much they would like to have liquid in case something should arise.
00:55:56.000 –> 00:56:12.000
But these are conversations that you need to be having with your trusted advisor, your banker, like, I said, you know, and I repeat this again, you know, at City National, but by providing this, you know the guideance the advice the perspective on what we should look at we always wanna make sure that the
00:56:12.000 –> 00:56:16.000
clients, priorities, and what’s important to them is at the forefront of everything that we do.
00:56:16.000 –> 00:56:22.000
So by advising. You know we would like to. We we’re Adam and all putting into treasury as well.
00:56:22.000 –> 00:56:26.000
You know we can structure it into maybe a short-term treasuries, and then have other things liquid.
00:56:26.000 –> 00:56:40.000
So. Yes, but you always want to look at your your association and whole. And what would allow it to not create a an ostacle for you to have any repairs or things like that that need to come up happen so sorry about that just wanted to time in on that.
00:56:40.000 –> 00:56:44.000
Jake. On, on, slide 10.
00:56:44.000 –> 00:56:48.000
I think that’s already been covered.
00:56:48.000 –> 00:56:50.000
Okay.
00:56:50.000 –> 00:56:51.000
So!
00:56:51.000 –> 00:57:00.000
Well, the other part. Yeah. If there’s a if there’s a fund that grows let’s say the growth goes above the 250,000 threshold.
00:57:00.000 –> 00:57:08.000
I know. We were discussing this, Steve, before. There’s certain things that the the association needs to consider.
00:57:08.000 –> 00:57:23.000
Do we wanna go into that for a moment?
00:57:23.000 –> 00:57:24.000
So!
00:57:24.000 –> 00:57:25.000
Yeah, you get, yeah, absolutely. It’s your share.
00:57:25.000 –> 00:57:27.000
Do you show?
00:57:27.000 –> 00:57:30.000
Hey? Your name first, you have the first, Mac, Us.
00:57:30.000 –> 00:57:47.000
Yeah, so basically, I mean, if the if the if there’s a deposit, and it starts at 250,000, and it goes, there’s some growth upon the deposit above the 250,000, is it still Fdic insured?
00:57:47.000 –> 00:57:50.000
And what what was our conclusion there, Steven, or what?
00:57:50.000 –> 00:57:54.000
What was some mechanisms that you could use?
00:57:54.000 –> 00:58:01.000
Hey! Hey! Now! Once once it goes over.
00:58:01.000 –> 00:58:04.000
You have to setup a different protection system.
00:58:04.000 –> 00:58:20.000
Such as interface, and I think we were talking about going up because of Florida with Sb.
00:58:20.000 –> 00:58:25.000
4 d. And sp, 2D.
00:58:25.000 –> 00:58:30.000
Hr. Insurance bills and reserve requirements.
00:58:30.000 –> 00:58:31.000
Fireman!
00:58:31.000 –> 00:58:32.000
Structural, which will, I mean.
00:58:32.000 –> 00:58:51.000
Yeah, so without. So with those, the results of those reserve studies which now Abraham, is that associations, unfortunately are gonna have to be putting more monies into their where are you?
00:58:51.000 –> 00:59:15.000
So, and therefore, once you have more monies in the reserves, you can go over to a $50,000 limit, and they are the other concern is, if you get a report for 20 or 30 million dollars or repairs and need to get an association loan that a Marie says I
00:59:15.000 –> 00:59:22.000
know a bunch of folks, and that’s and across the country do you wanna make sure that those funds are all protected? Presumably.
00:59:22.000 –> 00:59:32.000
By enterprise.
00:59:32.000 –> 00:59:33.000
Exactly.
00:59:33.000 –> 00:59:37.000
Now there’s one thing, Jake, if you don’t mind, this cause, it’s 11.
00:59:37.000 –> 00:59:41.000
There’s one thing that that’s really bothering me.
00:59:41.000 –> 00:59:48.000
I’m slide 11. Fidelity Insurance.
00:59:48.000 –> 00:59:50.000
They the site. 12 M.
00:59:50.000 –> 00:59:53.000
12, yeah, okay.
00:59:53.000 –> 01:00:01.000
So a number a number 4. So Massachusetts, this is not about FBI.
01:00:01.000 –> 01:00:28.000
Say Massachusetts, we have a requirement that the Association maintained Fidelity Insurance for a quarter of the year’s assessments, naming the manager is designated agent, and it has to be association’s policy. If it’s the
01:00:28.000 –> 01:00:39.000
managers policy. The owners of the Management Company wouldn’t be that you wouldn’t be protected if the owners of the company took funds, even though we only require 3 months.
01:00:39.000 –> 01:00:47.000
If you have a 1 million dollars on our reserves just for 3 months, was a 100,000.
01:00:47.000 –> 01:01:07.000
My strong suggestion is half a delegate insurance for the full amounts that are on on hand, so that now could be the 1.1 million dollars, and then think of the reserves, studies, and structural integrity studies boosting in reserve and make sure those
01:01:07.000 –> 01:01:16.000
funds are protected on the fidelity, and then let’s say you go to Maurice, and he gives a 20 million dollar loan.
01:01:16.000 –> 01:01:29.000
You have to make sure now that you can’t forget about those funds as being protected outside of Fdi.
01:01:29.000 –> 01:01:43.000
Say, just with funds, that in theory could be stolen by a board member or manager, or whatever, as Jake and Maurice were talking about in Florida, I think we’re past 11.
01:01:43.000 –> 01:01:44.000
But what do you want to do, Jake?
01:01:44.000 –> 01:01:50.000
We could just run through the last couple of slides and.
01:01:50.000 –> 01:01:51.000
So the we had a question, how do we protect vunds?
01:01:51.000 –> 01:02:02.000
Over 2 million dollars a every. Again, every case is so specific to your association may be unwieldy to, you know.
01:02:02.000 –> 01:02:11.000
Put put 2 million dollars in funds in 8 fdic insured accounts, for example, because of all would only be 250,000 that you can put in each account.
01:02:11.000 –> 01:02:16.000
There are options that we’ve discussed. Ics, Cdrs intr. 5.
01:02:16.000 –> 01:02:24.000
But you do have to look out at least for Cdrs.
01:02:24.000 –> 01:02:25.000
Exactly.
01:02:25.000 –> 01:02:26.000
Certain Liquidity and term restrictions, so that will there?
01:02:26.000 –> 01:02:30.000
And yeah, we’ll just go we’ll run through this list really quickly.
01:02:30.000 –> 01:02:37.000
Other areas for protecting your association funds. Regularly review your financial statements.
01:02:37.000 –> 01:02:47.000
I, it’s important, just as a general practice, to kind of always be cognizant of what your, what your financial health is at your association.
01:02:47.000 –> 01:03:09.000
This could include your reserve study as well. We, in a previous session we sent over kind of the people who do reserve studies which are, as Florida is already requiring by statute we anticipate other states will likely follow and reserves are going to
01:03:09.000 –> 01:03:10.000
be necessary, and what you do with those reserves is what we kind of have been touching on today.
01:03:10.000 –> 01:03:27.000
It just something to really, really look out for, and another step for forward on top of just monitoring the financial statements, keeping an eye on the expenses.
01:03:27.000 –> 01:03:31.000
You know this is important. You want to save for the Rainy Day fund the reserve account, but just general expenses.
01:03:31.000 –> 01:03:41.000
See? See where the money’s going see where it’s being allocated. If you know there’s a big capital improvement project know what you’re doing there.
01:03:41.000 –> 01:03:43.000
Know how much you’re going to allocate towards it.
01:03:43.000 –> 01:03:50.000
Change. Orders are regular thing. We deal with that increase the value of the project. So just a good idea to kind of.
01:03:50.000 –> 01:03:52.000
Price overruns.
01:03:52.000 –> 01:03:54.000
What’s that?
01:03:54.000 –> 01:03:56.000
Costs overruns. So you’re projected to.
01:03:56.000 –> 01:03:57.000
Yeah.
01:03:57.000 –> 01:04:14.000
We see that a lot in associations where they have set up a special assessment or budgeted for a project that’s going to cost them from what they see a 1015,000,000, and then, as work starts going along, they start coming up with obstacles that change that dollar amount and they have
01:04:14.000 –> 01:04:15.000
a cross over run, because they have to take care of that.
01:04:15.000 –> 01:04:26.000
They sometimes have to come back to the financial institutions they have to take care of that. They sometimes have to come back to the financial institution to see if the financial institution can modify their loan and increase it like an accordion and give them an increase on that dollar amount or they will have
01:04:26.000 –> 01:04:36.000
to go into the reserve funds that they have allocated, like an accordion and gave them an increase on that dollar amount, or they will have to go into the reserve funds that they have allocated to be able to cover that cost overrun but then like back to what you
01:04:36.000 –> 01:04:51.000
were saying Jake was, is that if they’re gonna go ahead and have reserve requirements by January first, 2025, the statute states that you need to have, you need to be in schedule to meet the reserve requirements for the life expectancy of the certain
01:04:51.000 –> 01:04:58.000
items depending on the on the left expectancy of of the certification that has to be done.
01:04:58.000 –> 01:05:08.000
So you know, those are things that you definitely have to take into account when you’re placing your funds in other financial institutions, and how you want to have with the maximum return rate of return on those funds.
01:05:08.000 –> 01:05:09.000
So just wanted to jump on that. Take.
01:05:09.000 –> 01:05:13.000
Absolutely. Yeah, no, that’s a great point. And yet, and just along the same thrust, you know.
01:05:13.000 –> 01:05:28.000
Keep a keep, a good financial procedures, make sure everything’s flowing properly, and we already discussed the segregating managers, accounts, fidelity insurance.
01:05:28.000 –> 01:05:41.000
We went into it may be a good idea. Bullet point 6 communicate with the owners or liaison to the owners.
01:05:41.000 –> 01:05:50.000
And it could be a good idea to set up like an advisory committee to kind of oversee the financials and expenses and all that we see sub-boards all the time for different purposes.
01:05:50.000 –> 01:06:09.000
We even see, we, we, we have seen subboards for even just to maintain a reserve account, so to take it a step broader, it would be for the financials.
01:06:09.000 –> 01:06:10.000
Definitely.
01:06:10.000 –> 01:06:11.000
Consider cyber crime insurance with a hacker.
01:06:11.000 –> 01:06:17.000
That’s not not a fun procedure, and it’s just so something to keep in mind.
01:06:17.000 –> 01:06:26.000
A further point on, that is what’s happening is once hypercrime is not covered typically under a master association policy.
01:06:26.000 –> 01:06:32.000
So you have to buy the coverage and some coverages are better than others.
01:06:32.000 –> 01:06:48.000
Just like some carriers are better than others. What’s happening that’s affected attorneys as well, doing real estate advances is you get information?
01:06:48.000 –> 01:07:12.000
Yes, Post, that’d be wiring. Let’s say a 1 million dollars of funds to a general contractor for a major restoration work being done, people are hacking into the accounts, sending you an email saying the wiring instructions have been changed.
01:07:12.000 –> 01:07:22.000
Please have it here. What happens next? You never see the money, and you have no insurance for it.
01:07:22.000 –> 01:07:28.000
If you don’t buy the insurance. Oh, the first step at least that attorneys there!
01:07:28.000 –> 01:07:43.000
So I suggest managers do. The same is, if you get a change of wiring and instructions, call up the person that you’re saying the funds to to verify that the wiring instructions have changed.
01:07:43.000 –> 01:07:44.000
Yup!
01:07:44.000 –> 01:08:00.000
Right. That’s one of those big things you see where you’re sending wires. It actually happened to one of our clients in association, in association banking, where you know they sent out a wire for a large work that was being done on one of the large projects and the email was
01:08:00.000 –> 01:08:15.000
intercepted. Halfway through the Pdf. File was then grab account information and routing numbers were all changed and then put back into the Internet and then sent to the receiving party.
01:08:15.000 –> 01:08:21.000
When the when with the Association and the company, the general contractor communicated like, Oh, we haven’t received the funds.
01:08:21.000 –> 01:08:31.000
They realize that the information has been altered thankfully. Thanks for the the Association, was able to recuperate those funds because they never landed where they needed land.
01:08:31.000 –> 01:08:46.000
But it’s always important that when you’re skating or receiving wire instructions that get sent out encrypted because that prevents from anyone grabbing or being able to alter the documents.
01:08:46.000 –> 01:09:03.000
Yeah, definitely. And yeah, it’s. And sometimes it’s literally just a change in the the An O instead of a 0 when you’re sending the wiring instructions.
01:09:03.000 –> 01:09:04.000
So it’s very important to yeah, best practice to confirm by calling.
01:09:04.000 –> 01:09:13.000
Say, Hey, you got this, or I confirm the email address, confirm the numbers, confirm everything.
01:09:13.000 –> 01:09:14.000
Yup!
01:09:14.000 –> 01:09:15.000
So!
01:09:15.000 –> 01:09:17.000
Final slide, hey?
01:09:17.000 –> 01:09:21.000
Yeah, I, just wanted to know one more thing. This one’s a little harder to monitor as far as in light of the you know.
01:09:21.000 –> 01:09:30.000
Regulator seizing banks. Sometimes there are signs, you know.
01:09:30.000 –> 01:09:33.000
You’ll hear in the news. Look at the stock price.
01:09:33.000 –> 01:09:42.000
This is a little harder to cause. You can’t just look at a stock price and tell all that bank must be going on, so I wouldn’t say I wouldn’t say, just look at that and say, okay, I must I need to remove all my funds from xyz bank.
01:09:42.000 –> 01:09:52.000
But it’s a good idea to just follow the news as far as your bank.
01:09:52.000 –> 01:10:03.000
Follow potential market volatility with the bank. But that’s a very that one you need to not just kind of, you know.
01:10:03.000 –> 01:10:08.000
Immediately assume, because your stock price went down a dollar that it’s done.
01:10:08.000 –> 01:10:11.000
Just just another thing to keep in mind.
01:10:11.000 –> 01:10:12.000
Hey, you guys, and just to to, I’m so sorry, Steven, go ahead.
01:10:12.000 –> 01:10:33.000
And if we’re able to, if I perhaps you can send us something about how your bank issues its reports, I give something that we can send out.
01:10:33.000 –> 01:10:39.000
Perhaps next week to the registrants for tips.
01:10:39.000 –> 01:10:47.000
Just on looking at the strength of a bank. If you have a great, if you don’t have it, that’s okay.
01:10:47.000 –> 01:10:53.000
Well, we have our own strength and stability. A document that we could provide our clients to show where our portfolio is structured and where our assets are, every financial institution should have that.
01:10:53.000 –> 01:11:07.000
And if you requested they should be, they are obligated to give it to you right.
01:11:07.000 –> 01:11:13.000
So if you wanna go into a financial institution and ask for you know the strength and stability they should have a document that tells you.
01:11:13.000 –> 01:11:18.000
You know their strength, their cap, how well capitalized they are, where their assets are!
01:11:18.000 –> 01:11:23.000
Added things of that nature, so you could feel a short we in.
01:11:23.000 –> 01:11:38.000
We were proact sitting national back was proactive to this when you know all this was going down a with Silicon Valley Bank and Republic First Republic Bank and credit saucy, we automatically sent out to all our clients our strengthen accountability Bullet points to address any concerns.
01:11:38.000 –> 01:11:49.000
They may have sometimes, or these are very high levels. So if not, these are not financials you deal with on a day-to-day basis.
01:11:49.000 –> 01:11:55.000
You may want to go to your your attorney, or your accounting to ask, you know, to kinda like decide for it.
01:11:55.000 –> 01:11:56.000
But we do. We do provide that, and I. I can share that with you guys.
01:11:56.000 –> 01:12:06.000
So you can share with the rest of the of the attendees just to see ours found.
01:12:06.000 –> 01:12:09.000
Its instability from a financial institution for City National Bank.
01:12:09.000 –> 01:12:13.000
One of the things. Just I’m sorry. Go ahead.
01:12:13.000 –> 01:12:20.000
I was gonna say, yeah, the that would be great. We’re going on way way over at this point.
01:12:20.000 –> 01:12:21.000
I know.
01:12:21.000 –> 01:12:31.000
So, Jake, you wanna real us in or have me do 30 s on slide 13.
01:12:31.000 –> 01:12:37.000
Yeah, just yeah. Let’s go through the final thoughts on protecting association funds.
01:12:37.000 –> 01:12:58.000
Okay. This now goes into an insurance. If you have a stated limit insurance policy safer 50 million dollars insurance policy, say, for 50 million dollars. The agent isn’t responsible for that saying that guaranteeing that same amount the carriers are responsible you really should have
01:12:58.000 –> 01:13:00.000
a license. Yeah. Insurance reconstruction costs appraiser.
01:13:00.000 –> 01:13:09.000
Tell you what they actual value of your building is, or an alternative.
01:13:09.000 –> 01:13:13.000
Get Karen granted replacement cost coverage which replaced, no matter what the cost to we.
01:13:13.000 –> 01:13:24.000
We talked about 3, a lot of buildings in Florida, and messed in the northeast.
01:13:24.000 –> 01:13:36.000
I haven’t problems because they’re older, and as they get older the code changes.
01:13:36.000 –> 01:13:43.000
Typically what happens is if half of a building goes down, you have to rebuild, to cover code, which might be automatic fire suppression systems.
01:13:43.000 –> 01:13:53.000
Elevators, etc. You wanna go to a building code expert to say, if this building went down a half down, you wanna go to a building code expert to say, if this building went down a half down.
01:13:53.000 –> 01:14:21.000
What would it cost to meet current code? You also want insurance to cover demolishing the undamaged part of the bell line, because the whole structure has to go down and debris removal, and we’re finding that some policies have $300,000 in automatic coverage and that unlesses were might
01:14:21.000 –> 01:14:34.000
be worse than not steady any amount, because we’re finding that in cases that building ordinance in code could be in the millions as building age as the final point was on enforcement Actions.
01:14:34.000 –> 01:14:40.000
I’m not sure what’s gonna happen with the economy, or when collections are gonna start steaming up.
01:14:40.000 –> 01:15:10.000
But take swift action, what are known as a month or 2 behind still, and I guess my final thought as a teaser is the news out of is that there may be some issues with citizens insurance which I think is this state in Sharon so almost like the fear plan in
01:15:15.000 –> 01:15:33.000
Massachusetts, through remarks made by the Governor, indicating that their the citizens insurance either is or could become, insolvent.
01:15:33.000 –> 01:15:34.000
So they just talk about a 45% increase.
01:15:34.000 –> 01:15:47.000
For everybody’s premiums. So as a policy, a overall like 2% insurance increase for everybody.
01:15:47.000 –> 01:15:59.000
But when you have to stop worrying about bank fails well, I dealt with that, or in the early nineties, and 2,008.
01:15:59.000 –> 01:16:08.000
Now, when I have to worry about insurance companies going out of business, I have never done with that, or I don’t believe I have.
01:16:08.000 –> 01:16:20.000
So on that right note. I anything that you wanna as a final tip, Murray’s.
01:16:20.000 –> 01:16:25.000
Hey? Really, you know, one of the things here in Florida is making sure that you are taking care of all the items that are coming with your recertification.
01:16:25.000 –> 01:16:41.000
We’re seeing that a lot of insurance companies that were insuring a lot of our building and their associations in the State of Florida have pulled out of Florida or not renewing.
01:16:41.000 –> 01:16:49.000
Or are increasing policy premiums. By. I’ve seen warnings that I went up by 150%.
01:16:49.000 –> 01:16:54.000
And that was because they had not, or I deferred the maintenance on their roof.
01:16:54.000 –> 01:17:02.000
So they had a they were able to get an extension for 6 months on getting their insurance policy renewed for 6 months.
01:17:02.000 –> 01:17:05.000
But it was in lieu of them. Half the roof getting repaired, at least permits being pulled and adjust, and then bids being put out.
01:17:05.000 –> 01:17:16.000
But yeah, it’s just making sure that you know your board is not deferring any maintenance on the building.
01:17:16.000 –> 01:17:24.000
Things that are going to impact your insurance are going to be important and always have a conversation with with your insurance agent in regards to what can be done to lower your premiums.
01:17:24.000 –> 01:17:30.000
But we’re seeing this across the entire state, just because of the natural disasters that we have.
01:17:30.000 –> 01:17:31.000
And then, because of the shaping towers, was another big one.
01:17:31.000 –> 01:17:37.000
You know, we were definitely making sure. And we’re going into a board.
01:17:37.000 –> 01:17:53.000
We speak about. You know the importance of not deferring any maintenance and the importance to everybody’s pocket, because they’re realizing that the cost of living in an association increases as you start deferring maintenance or reserve accounts.
01:17:53.000 –> 01:17:58.000
I wanna thank all the participants who we didn’t lose too many.
01:17:58.000 –> 01:18:03.000
There’s still a bunch of you on. I apologize for being long winded, as always, and we’re going over by 16 min, but I’m encouraged this.
01:18:03.000 –> 01:18:33.000
So many of you stayed, stayed on my final thought before I turn it over to Jake, for his is, I wish you all a happy Passover for a happy Easter, and we will see you in May on the first Friday at 10 Am.
01:18:38.000 –> 01:18:40.000
Thank you for attending Jake.
01:18:40.000 –> 01:18:46.000
Yeah. Just thanks everyone for attending we’d like to give a special thanks to Maurice, our first special guest. I mean.
01:18:46.000 –> 01:18:47.000
We told him, you know, might be 10 to 15 min.
01:18:47.000 –> 01:18:55.000
He’s stuck around for an hour 20, so we we can’t thank you enough, Marius, and providing really sound insight.
01:18:55.000 –> 01:18:57.000
My pleasure.
01:18:57.000 –> 01:18:58.000
So the property.
01:18:58.000 –> 01:19:01.000
We might want Marissa on for every call.
01:19:01.000 –> 01:19:19.000
Hey? If I could listen. I love what I do, and if I can add any value to anyone, or buy provide any advice or some guidance, you know I am more than glad to join a participant, and give my 2 cents about you, know this are the association banking sector, so if you guys.
01:19:19.000 –> 01:19:20.000
ever, need anything, feel free? My contact information is there, you know.
01:19:20.000 –> 01:19:29.000
I told another attendee that if they needed anything we reach out to me I’m always available, and I I can answer any questions.
01:19:29.000 –> 01:19:36.000
And our intent is to send out the Powerpoint.
01:19:36.000 –> 01:19:45.000
So, in addition to everything else, we talked about Jake’s contact information Maurice’s and mine are all on there.
01:19:45.000 –> 01:19:52.000
Maurice. Thank you. You are extremely impressive.
01:19:52.000 –> 01:19:57.000
Anything that comes with, and we haven’t the northeast as well.
01:19:57.000 –> 01:20:09.000
Banks, who checks are so bags that really focus on typically, we have kind of an associations versus.
01:20:09.000 –> 01:20:21.000
Hos but I think you’re advice today was was wonderful.
01:20:21.000 –> 01:20:28.000
I’m sorry that yeah, to wake up at 4 15 this morning and go and drive.
01:20:28.000 –> 01:20:30.000
Well, thank you.
01:20:30.000 –> 01:20:32.000
My pleasure guys.
01:20:32.000 –> 01:20:33.000
Okay. Alright!
01:20:33.000 –> 01:20:36.000
Thanks everyone, and have a good holiday weekend.
01:20:36.000 –> 01:20:39.000
Likewise everyone, Happy Easter.
01:20:39.000 –> 01:20:40.000
Yeah, okay.
01:20:40.000 –> 01:20:43.000
Jake say, you wanna save the chat?
01:20:43.000 –> 01:20:46.000
Yeah, got it?
01:20:46.000 –> 01:20:51.000
Okay, now, we sell people on there.
01:20:51.000 –> 01:20:55.000
Yeah, no, I’m yeah. We’ll okay.
01:20:55.000 –> 01:21:02.000
Hi worries privately, for doing an excellent job and making something that’s scary.
01:21:02.000 –> 01:21:17.000
Perhaps
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