Keeping condo associations afloat

Thursday, February 4th, 2010

As foreclosures mount, condominium and homeowner associations have been reeling from sharp decreases in revenue due to the delinquency of unit owners in the payment of their association fees. This has created a tremendous burden for the paying unit owners to shoulder the shortfall so the association will have sufficient income to continue operating.

However, many homeowner and condominium associations in Florida are taking advantage of an equitable remedy known as the “Blanket Receivership” to increase the association’s revenue stream. To effectuate a Blanket Receivership, the association engages an attorney to petition the court to appoint a Receiver over the delinquent units. Once appointed, the Receiver is authorized to collect rent directly from the tenants residing in the delinquent units to pay the association fees. It’s called a “Blanket Receivership” because it eliminates the need to appoint a Receiver over each delinquent unit individually, which is a costly and time-consuming endeavor. Although there is some cost involved in implementing the legal remedy, it allows the association to collect funds it otherwise would not see at all. The “Blanket Receivership,” approved by Florida courts, is a cost effective and efficient remedy that enables the association to stay afloat.

Read the whole article

Amir Isaiah is the Director of Receivership & Fiduciary Services for Kaufman, Rossin & Co., one of the top CPA firms in the Southeast. He has been appointed numerous times as Receiver for residential and mixed-use community associations and was the first Receiver to obtain authorization to lease abandoned units under the Blanket Receivership structure. Mr. Isaiah has extensive experience serving as a guest speaker and panelist on the topic of receiverships, and is co-author of “The Receivership Manual for the Florida Juiciary” revised 2009. He can be reached at aisaiah@kaufmanrossin.com.

Teach more, learn more, add more value.

Friday, November 20th, 2009

Just read Bill Taylor’s HBR blog post The Rise of the Teaching Organization and I couldn’t agree more. 

He writes:

“Executives have come to understand that for their companies to stay ahead of the competition, their people, at every level, have to learn more (and more quickly) than the competition: new skills, new takes on emerging technologies, new ways to do old things, from manufacturing to marketing to R&D….

But one thing I’ve learned over the last few years, as I’ve traveled the world in search of organizations unleashing big change in difficult circumstances, is that the most determined innovators — the organizations with the most original ideas about how to compete and win — aren’t just committed to learning. They are just as committed to teaching.”

Organizations that look beyond their own walls to find new ideas, or venture out to share the innovations they have created, can benefit in so many ways!  Building awareness of their business is an obvious one — but sharing ideas that help others comes back in so many more  valuable ways.

Don’t miss this post!  I’d love to hear what you think.

New Tax Act can benefit individuals and businesses

Monday, November 9th, 2009

Congress passed the Worker, Homeownership, and Business Assistance Act of 2009 on November 5, 2009. The President signed the Act into law on November 6. The Act extended unemployment compensation an extra 14 weeks and includes numerous tax law changes. Here are some of the tax highlights.

Are you looking to buy a home? Even if it isn’t your first you may now be eligible for a tax credit!

The $8,000 home buyer tax credit for first-time buyers is extended through April 2010. The Act also provides for a $6,500 “first-time homebuyer” credit for individuals that have lived in a principal residence for 5 consecutive years out of the last 8 years prior to purchasing a new principal residence. The Act increased the Adjusted Gross Income level of qualifying purchasers to $245,000 for joint return taxpayers ($125,000 for single taxpayers). Finally, the maximum purchase price of a qualifying residence has been increased to $800,000.

Do you own a business? These changes may have a sizeable impact on your company.

The .2% FUTA (Federal Unemployment Tax Act) surtax has been extended into 2011. This surtax was scheduled to expire in 2009.

The extended net operating loss carryback period of 5 years has been expanded to include NOLs of all businesses (not just “small businesses”) from either 2008 or 2009. Losses from “Small Businesses” may use the extended carryback period for both 2008 and 2009. The amount of loss available for the 5th preceding tax year is limited to 50% of the taxable income of that preceding year.

Additionally, the penalties for failure to timely file a partnership or S corporation tax return will be $195 per K-1 beginning with the 2010 tax year.

How do you prepare for these changes?
With Congress taking additional measures to help provide relief, this new legislation may have a significant effect on your business’s operations along with your personal finances. As always, consult with your accountant to organize a customized strategy based on your own unique circumstances to take advantage or help offset these recent changes.

Learn more about the legislation from one of our trusted sources, CCH.

Your personal resources: the attention economy

Thursday, August 13th, 2009

Turn on the television, open a newspaper or a magazine, and the leading story will likely be about the state of our economy. It’s on everyone’s mind, and for good reason, but I learned of a new type of economy recently, and its one that’s all too frequently overlooked.

The “attention economy” deals in two of our most valuable and limited resources: our own time and attention. Herb Simon, a Nobel prize winning economist, explained “in an information-rich world, the wealth of information means a dearth of something else: a scarcity of whatever it is that information consumes.” (more…)

New in the workforce? Be prepared.

Wednesday, August 5th, 2009

I’ve been out of college and working full-time for less than a year. Thought it might be helpful to share a few things I wish someone had told me as I made my transition!

The contrast between a collegiate lifestyle and being a part of the workforce is as extreme as night and day. The years spent in college are significantly different than any other time in your life. From the time you’re in grade school, you have a structured day-to-day routine that gets very repetitive. Then college arrives and that routine goes flying out the window. You are in charge of yourself. You can sleep in everyday. You can take classes only three nights a week or choose not to go to class at all. Either way, there is less accountability. Then you graduate and must return to the day-to-day routine again. (more…)

Lifelines for our community

Thursday, July 23rd, 2009

Last month I wrote here about the critical role public-private partnerships play in our community, as lower tax revenues force cuts in local government services.  My longer commentary also appeared in the Daily Business Review.   Among the hundreds of non-profit organizations our community relies on, I chose to feature three of the many where our firm members volunteer:

(more…)

Ah, summer. The perfect time for tax strategies!

Tuesday, July 7th, 2009

Sure is hot.   Probably rain pretty soon.  Can’t wait to get away on vacation. Maybe it’s time for a nap.

Why would you even consider thinking about your taxes now?

If you don’t want to miss out on money saving opportunities, wake up: some of these tax breaks will be gone before you know it! (more…)

Is everyone thinking rationally?

Monday, July 6th, 2009

A story in today’s Wall Street Journal really struck me.   It’s an interview with Tom Davenport, co-author of a book on strategy and decisions.  He talks about three steps to make better decisions (good stuff) and three decision-making mistakes (even better stuff).

To me, the real “aha!” idea is this one:

“Another mistake would be to assume that everybody is thinking rationally. People are often irrational about decision issues in a whole variety of ways. One is they are overly influenced by any numbers that they previously heard or any statement of the problem – the so-called anchoring effect.”

I see this all the time, in myself and in others.  The emotional factors in making a decision can overtake the rational in a heartbeat.  The more important the decision is, the more likely this is to occur.  We don’t see it coming — and quite often don’t even recognize it has happened.  But it can derail decision making, or even lead us to the wrong decision.

When an important decision is on the table, I’ve been trying to follow these guides:

1. Take your time.  Lately I’ve recognized that, while my instincts are often right, many decisions benefit from a longer thought process.  Just letting something important roll around in my brain for a few days gives me the freedom to develop and consider options.  New strategies or better solutions can occur in the shower…in the car…at yoga practice.  Patience (something I’ve been trying to develop for as long as I can remember) really does pay.
2. Try some of the techniques from one of my favorite resources, Crucial Conversations.  This book teaches how to deal with high-stakes conversations when the stakes are high, opinions differ, and emotions are strong.  Some of the ideas taught here — including how to recognize when emotions are derailing a conversation, and bring it back to the facts at hand — are invaluable in decision-making processes.  One key is to make sure everyone involved knows how  the decision is going to be made -  command, consult, vote, or consensus.  Nothing’s more frustrating than believing your vote counts and finding out that it doesn’t.

How do you make decisions?  What tips do you have for better decision-making, whether individually or in a team situation?  Join the discussion!

Should I be tweeting? 3 questions to help you decide

Wednesday, July 1st, 2009

“What is Twitter?” That question is a bit outdated. Now, it’s “Should I be tweeting?”

We’ve all heard too many times, “Everybody is on twitter so you better be on it too…” I’m not a fan of doing something just because “everyone” else is. You wouldn’t jump off a bridge just because everyone else was jumping. Ok, I know it isn’t exactly the same, but there are some things you should consider before leaping on the bandwagon.

Consider this: 10 years ago facebook didn’t exist. And 10 years before that, neither did the Web. Today, more than 100 million users log on to facebook each day. And who knows what the new craze will be in 10 years from now. But today there are over 32 million users on twitter, tweeting about their personal lives, their businesses, the economy, trends, fashion, finance – anything you can imagine. (more…)

Powerful explanation is key to leadership communications

Wednesday, June 24th, 2009

I wanted to share this great post from the Harvard Blog.  It’s an excellent reminder of an important concept in leadership communications:  explanations, with details, are needed to persuade followers to share your enthusiasm.

John Baldoni writes, “Explanation is a key attribute of leadership communications. Leaders know to inject their communications with verve and enthusiasm as a means of persuasion, but they also need to include an explanation for the excitement. What does it mean and why are we doing it are critical questions that every leader must answer with straightforward explanations.”

The post describes three important steps:

1. explaining the initiative and why it’s important
2. defining what isn’t part of the initiative
3. persuasive call to action.

I’d add that, like a good story, an explanation needs enough detail to really energize your team.  Rich detail is what grabs a reader or listener’s attention.  It’s why a story that starts “The red Porshe screeched up to the curb” is more intriguing to a reader than the one that starts “A car pulled up.”

Read the full story

What do you think?  How do you use explanations and storytelling in leading your team?  Join the discussion!