FREE - CONDO LAW TRAINING

Free Condominium educational Training on “The Condominium Complaint Process/Division’s Jurisdiction”

Hosted by: the City of Hallandale Beach Police Department and presented by the Department of Business and Professional Regulations, Division of Condominiums, Bureau of Compliance.  The training will consist of a presentation and cover a question and answer session with the representatives from the DBPR and Hallandale Beach Police Economic Crimes Detectives.  Educational Material will be provided.

Monday June 27 2016

5:30pm to 7:30pm

Hallandale Beach Cultural Center

410 SE 3^rd Street

Hallandale Beach, FL 33009

If you have any questions, please contact Major Pedro Abut at 954-457-1426 or email at pabut@cohb.org or Lazaro Gonzalez at 954-202-6821 at email lazaro.gonzalez@myfloridalicense.com.

Miami home sales down, but prices still up. How long can it last?

By Nicholas Nehamas and Jack Herricknnehamas@miamiherald.com

miamiherald |

Residential sales fell in Miami in May

Prices are still going up, for now

Broward had a better month overall

It’s a trend that can’t last forever: Home sales in Miami-Dade County are falling, but prices are still going up.

Total existing home sales slid to 2,435 in May, down 10.4 percent annually, according to data from the Miami Association of Realtors. Single-family homes — down 7.2 percent — fared better than condos, which fell 13.3 percent. (Existing condos are competing with a glut of new luxury construction.)

Two factors are contributing to the residential slowdown, which comes after three years of heady sales: First, a strong dollar is crippling the foreign buyers who drove South Florida’s latest real estate boom. Second, investors and flippers have already snapped up much of Miami’s shrinking foreclosure inventory, which ballooned during the recession and fueled sales.

Foreclosures fell from 25.1 percent of all sales in May 2015 to 18.9 percent of sales in May 2016.
Meanwhile, prices are still rising.

In Miami, single-family home prices rose to $295,000, up 4.6 percent year-over-year. Condo prices hit $214,250, a 2.5 percent annual gain.

That makes sense, experts say. For now.

“Historically, even after there has been a noticeable change in the market, home prices continue to increase for six to 12 months despite the shift in supply and demand,” said Jack McCabe, a real estate analyst. “If you see a big change in the real estate market, it takes a long time to sell. It’s not like stocks or commodities.”

Sellers are already starting to respond, especially in the luxury market, said Ron Shuffield, president of EWM Realty International.

“We’re seeing a lot of people reducing prices as inventory goes up and sales go down,” Shuffield said.

About 37 percent of Miami-Dade listings over a million dollars have seen price reductions since Jan. 1, according to research conducted by EWM.

“The message we’ve been taking to our sellers since last August is that we’re returning to a more normal market,” Shuffield said. “These are still great numbers that we’re seeing.”

The overall trends suggest single-family homes remain a seller’s market while condos are firmly in buyer’s territory.

Realtor Jeff Morr said he believes the U.S. presidential election might be playing a role in the slowdown and that important indicators, including low interest rates, remain positive.

Miami set an annual record for residential sales in 2013, and came close again in 2014 and 2015. Coupled with flat wages, the real estate boom has helped make Miami one of the least affordable cities in the nation.

I think that the election year really threw off some people’s confidence, more the media than anyone else. Jeff Morr, Realtor

“I think that the election year really threw off some people’s confidence, more the media than anyone else,” Morr said. “We still have foreign buyers coming to Miami. ... We’re a really undervalued market compared to other similar markets.”
While Miami’s luxury market is cooling down, there’s no sign of relief for starter and mid-market homes.
Because of a lack of available land and high construction costs, builders haven’t been able to put up much in the way of affordable homes. The low inventory means strong sales.
Sales for single-family homes priced between $200,000 and $600,000 beat the rest of the market, growing 5.9 percent in May. There’s no sign of much new supply entering the pipeline at that price point.

“The mid-market homes are going to maintain value and even go up,” McCabe said. “It’s the new construction, luxury market that’s going to suffer, at least the projects with middling design or off-the-water locations. A lot of them are not that outstanding. ... When the market crashed last time, every property went down. That’s not going to happen this time.”

Stability in Broward

Broward County, which is less dependent on foreign buyers, had a better month.

In Broward, single-family home prices rose to $312,500 in May, up 7.8 percent annually, according to the Greater Fort Lauderdale Realtors. Condo prices hit $145,000, up 7.4 percent for the year.

Sales were up, too, likely driven by suburbanites seeking good school as the summer buying season gets underway.

Broward saw 1,671 single-family home sales in May, up 15 percent from April and 9.5 percent from May 2015. There 1,570 condo sales, down 1.6 percent compared to May 2015 but up 9.5 percent for the year.

The hot market is being driven by several trends also popping up at a national level: Homebuilders haven’t produced much stock at the lower end of the market. That’s driving down inventory and causing a mad scramble for the few available starter homes.

In Broward, single-family homes stayed on the market for an average of 41 days in May, down from 50 in May 2015. Nationally, homes last just 32 days on the market. Broward’s inventory for single-family homes has fallen to 3.8 months worth of supply. A healthy market generally has between six and nine months.

“Buyers struggling to find an affordable home to buy will continue to do so,” said Svenja Gudell, chief economist of real estate website Zillow, in a statement. She added that the housing market had become “hypercompetitive” for buyers seeking starter and other well-priced homes.

Read More: http://www.miamiherald.com/

County Commission approves proposal to create police network to combat fraud in condominiums

Cyber Citizens for Justice, Inc. ccfj.net |

Article Courtesy of El Nuevo Herald (Translated by Google)

By Enrique Flor

A police initiative to create a network specialized in the fight against fraud in Miami-Dade condominiums was approved Tuesday by the county commission.

The proposal to create a network between different police departments in Miami-Dade was approved by the unanimous vote of the 13 commissioners, in the midst of a crisis characterized by abuses against residents of several residential complexes.
  

Miami-Dade prosecutors and legislators seek solutions to fraud in condominiums

In its preamble, the resolution presented by Barreiro refers to the avalanche of complaints of electoral fraud and irregularities in contracts worth millions ended up benefiting some businesses at the expense of residents.

In March, a series of newspaper El Nuevo Herald and Univision 23, revealed the rampant forgery of signatures on the ballots in condominiums The Beach Club at Fontainebleau and dreams in Hialeah.

This fraud favored, for example, a board was kept in power after having benefited a company in a $ 5.2 million to repair roofs at The Beach Club. However, the investigation revealed that the favored company had competed with two other paper companies.

The investigation also documented the notary fraud in dozens of sworn statements, notarized by Carmen Aslan, an employee of FM Law Group, a firm of lawyer Hector Martinez. That law firm generally represents condominium associations managed by Sunshine Management Services.

The investigations led to the massive mobilization of residents outraged by the fraud. In the case of The Beach Club, the then members of the board resigned and canceled its contract with Sunshine Management Services in the administration of the condominium.

The creation of the police network adds to the legislative initiative of the Miami-Dade delegation to present a comprehensive reform to combat fraud condominiums.

State Representative Jose Felix Diaz and Sen. Miguel Diaz de la Portilla plan to present in November substantial changes to criminalize the violations detected in several condominiums.

In fact, the last two lawmakers along with Sen. Rene Garcia and representatives of the legislator Javier Rodriguez this week with Miami-Dade State-attorney Katherine Fernandez-Rundle, and part of his legal team will develop initiatives to combat fraud condominiums while working on the development of legislative reforms.

One of the proposals Fernandez-Rundle aims to create is an elite team like the prosecution created in 2004 to combat auto insurance fraud in Miami-Dade.

Read More; http://www.ccfj.net/

Change Condo Law: Hold Individual Board Members Accountable When They Break The Law

.....

Please sign this petition for our lawmakers to change Condo Law. The actions taken by the DBPR to resolve complaints are hurting owners because when Board members break Condo law the Association as a whole is fined. 

SIGN PETITION!

https://www.change.org/

Will Airbnb divulge mysterious owners to Keys tax collector?

BY KEVIN WADLOWKeysInfoNet

miamiherald |

“They have to provide me with more information”

Class-action lawsuit under consideration

Airbnb, a major online vacation-rental site, offers more than 300 Florida Keys listings that include bedrooms, cabins and docked boats.

What Airbnb will not offer Monroe County is information on its client "hosts" — property owners who advertise and book vacation rentals in the Keys, county officials say.

"They have to provide me with more information," county Tax Collector Danise Henriguez. "There are too many things we just don't know."

Wednesday in Key Largo, Monroe County commissioners will review a proposal to initiate a class-action lawsuit against Airbnb in a bid to force the company to be more forthcoming about the unit owners who use the firm's online booking platform.

Airbnb last month sent the Monroe County Tax Collector's office a "voluntary collection agreement" with the company offering to collect tourist-tax money from unit owners and forward it to the county.
But Airbnb insists on keeping the unit owners "anonymous" with no "personally identifiable information" on their names or addresses where the rental units operate
.
"They want to send a lump sum every month and have us accept that," Henriquez said. "I would lose total control."

"How do we know if they're remitting the correct amount of tax?" she said. "Are these units in areas where they are legally allowed to rent? Do they have a homestead exemption? I don't know."

"County staff shares Mrs. Henriquez's concerns," County Attorney Bob Shillinger says in an agenda report. "Staff is concerned that entering into the proposed agreement as drafted would facilitate violations of the county's vacation-rental ordinance."

"Airbnb's willingness to enter into an agreement to pay tourist-development taxes would seem to suggest an acknowledgment of its liability for paying bed taxes," Shillinger noted. Some other Florida counties reportedly have accepted Airbnb's terms.

Henriquez said without knowing the rental addresses, her office cannot properly distribute the tourist taxes to Keys cities or the unincorporated county.

Vacation rentals in the Keys have been a controversial topic for years. Advocates say they provide unique accommodations that attract visitors and support property values. Critics say the short-term rentals of living units deprive local workers of affordable housing and can turn a quiet neighborhood into a party spot.

In August 2015, Airbnb settled five Key West code cases where owners advertised vacation rentals without a required city permit.

Henriquez's office took over audit and enforcement of tourist taxes countywide in January 2015 from the County Clerk's Office. The nightly bed tax is 12.5 percent; 7.5 percent goes to the state, 5 percent to the county, Henriquez said.

"We've collected more than $250,000 of uncollected revenue and opened up more than 1,000 new accounts to make sure they're in compliance," she said.

The tax collector's office accepts tips on possible illegal vacation rentals through e-mail or over the phone. "We act on every one," Henriquez said.

In 2010, Monroe County was the lead plaintiff in a class-action suit against several online travel companies over unpaid tourist taxes. Of the $6.5 million settlement with several local governments, Monroe netted about $1.2 million after legal fees.

At Wednesday's County Commission meeting at the Murray E. Nelson Government and Cultural Center on Key Largo, Shillinger will ask the board members if they want to negotiate a contract with the attorney who won the 2010 case.

Read More: http://www.miamiherald.com/

WHAT IS A “MATERIAL ALTERATION”?

By Jan Bergemann

The big number of arbitration cases over “material alterations” is a clear sign that these two simple words can cause a lot of havoc. One would think that the two words “material” and “alteration” would be self-explanatory. That’s clearly not the case, as every community association lawyer can tell you. And even arbitrators and judges don’t always agree with each other.

 

The actual explanation in simple English would be: Change of material – right? But it seems nothing is easy in community associations.

 

In his “Handbook” former Condo Ombudsman Virgil Rizzo gave this explanation – hoping to explain these two seemingly problematic words in layman’s terms:

      “A material alteration of the common elements is covered by Florida Statutes Section 718.113(2) and permitted in a manner provided in the Declaration of Condominium. If the Declaration is silent regarding material alterations, an affirmative vote of 75% of unit owners is required.

       A material alteration or addition means to palpably or perceptively vary or change the form, shape, elements or specifications of a building from its original design, plan, or existing condition, in such a manner as to appreciably affect or influence its function, use or appearance.”

  

Seems easy – does it? In reality it isn’t – mark my words.

  

We see only too often that board members think they can just change the carpet floor and replace the carpet with tiles. Huge mistake, especially if just one of the owners doesn’t like tiles – and the fight is on. In many cases it’s not only the legal fees causing serious financial damage to the association; it’s as well the fact that most complaints are only filed after the work is done and the money spent.

 

The reason for creating the requirement of members’ approval is pretty obvious: People bought their home after looking at the surroundings of their new home – and the way things look when they buy their home.
 
Let’s say a potential buyer is impressed with the nice red carpet in the hallways. He/she buys the unit relying on being always greeted by a plush red carpet in the hallway. One day some board members feel that carpets are quickly used up by the heavy traffic in the hallway and opt to replace the fading carpet with Spanish tiles. It might be a smart financial decision in the long run, but a violation of the Florida statutes in the eyes of the red carpet-lover. And the war is on!

  

Do you think that “material alterations” should require a membership vote?

Read More: http://www.hoa-condoblog.com

A makeover for North Beach?

Master plan was drafted by urban planners at Dover, Kohl & Associates

Calls for redeveloping 71st Street into a main street, town center

Creation of historic districts would protect architecturally significant buildings

The first draft of a master plan for the neighborhood in the northern section of Miami Beach includes more bus and bike lanes, plans for creating local historic districts and ideas for creating a stretch of taller, mixed-use buildings as part of a town center along 71st Street.

Urban planners at Dover, Kohl & Associates have spent months studying the area, talking to residents and working with consultants to get a sense of what the community wants and what it needs.
Among the general ideas in the first draft:

▪ Make a town center: Redevelop 71st Street into a main street for the neighborhood, with taller mixed-used buildings, a new parking garage, a reimagined use for the 72nd Street surface lot and a redeveloped Byron Carlyle Theater. The taller buildings, possibly up to 12 stories, would have setbacks at the fifth floor to prevent the buildings from having an overpowering effect from the street level.

▪ Mobility: Install new crosswalks, create protected bike lanes, make dedicated bus lanes.

▪ Protect neighborhoods: Create local historic districts on Normandy Isle and in North Shore that would protect architecturally significant buildings from demolition. Also create conservation districts that don’t have demolition protections but provide design guideline for new construction. North Beach contains a rich stock of Miami Modern and late-era Art Deco apartment buildings. Incorporate affordable housing, perhaps through inclusionary zoning.

▪ Utilize public lands: Reimagine use of 72nd Street surface parking lot, which could include park space or a civic building. Create a plan for developing eight half-blocks of public land on upper Collins Avenue, which could include parking, mixed-use buildings, a community garden and a hotel.

▪ Build to last: Incorporate resiliency measures, such as building higher and raising seawalls. Widen the beach to help deal with potential storm surge. Raise historic facades.

The planners summarized these concepts for the City Commission and for the public this week. They will further refine ideas and take input as they prepare a final draft to present to the commission in the fall.

Jason King, a principal at Dover, Kohl & Partners, told commissioners he saw hundreds of residents participate in the public input process — more than in other communities like Dallas or Richmond, Virginia.

“We did not get this many people,” he said.

About 175 residents came out Tuesday night to see the draft at a community meeting in North Beach.

Afterward, Paul Lefrak said he’s glad to see interest in enhancing the neighborhood but doesn’t want it to lose its charm and diverse character, particularly if redevelopment leads to higher rents.

“I would like to see North Beach retain affordable housing for working people,” said Lefrak, who rents. “My fear is that people will be priced out of the area.”

Those interested in reading the full draft can find a downloadable version at www.plannobe.org/resources/.

Read More: http://www.miamiherald.com/