BOCA RATON, Florida – On March 3rd more than 500 South Palm Beach County residents and workers received Covid-19 vaccines at an interfaith initiative hosted on the Temple Beth El campus in Boca Raton.  Nearly 20 religious organizations, the Palm Beach County Sheriff’s Office, Boca Raton Police Department and local teachers participated.         Daniel Kaskel, a partner with the law firm of Sachs Sax Caplan, and Vice President of the Boca Raton Synagogue, began working on this event in mid-January, 2021. “In January, vaccines were very scarce, particularly in Palm Beach County,” advises Kaskel.  “I reached out to nearly every elected official and state and local government agency to create a POD, a point of distribution, to help the seniors in my synagogue obtain vaccines.”         In early February, Mr. Kaskel heard back from the Florida Division of Emergency Management, the agency tasked with creating PODs.  He was advised that the DEM was inundated with such requests and could not accommodate each one.  Kaskel then asked if the DEM would elevate the request if he presented an interfaith initiate comprised of a synagogue, church and mosque.  The answer was an encouraging YES.         In the few weeks that passed, a significant number of the senior population of Boca Raton Synagogue had fortunately received vaccines, so Kaskel turned to Temple Beth El. “Within a day I received a call from Rita Diamond, Temple Beth El’s Director of Operations.  They were very excited about the opportunity to not only provide vaccinations their seniors, but to invite other houses of worship to join,” recounts Kaskel.         Rabbi Greg Weisman of Beth El invited the Islamic Center of Boca Raton and Ebenezer Missionary Baptist Church to partner in the event.  Kaskel presented a proposal to the DEM in mid-February, and the event was quickly approved, with a March 3rd date and an anticipated 500 doses. Among the DEM’s requirements was that vaccines could only be administered to individuals who qualify under state guidelines, no walk-ins were permitted, and the...

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            As a result of the COVID-19 pandemic, the State of Florida-through Governor Ron DeSantis ­imposed a statewide foreclosure moratorium last year. On the federal level, last month the Acting United States Department of Housing and Urban Development ("HUD") Secretary announced an extension of foreclosure moratoriums on federally-backed single family mortgages through March 31, 2021. Despite these moratoriums, Florida has one of the highest foreclosure rates in the country. According to ATTOM Data Solutions, one in every 7,338 housing units in August 2020 had a foreclosure filing compared to one in every 13,791 housing units in the United States.             While many foreclosures are brought by lenders seeking to foreclose on mortgages, lien foreclosure lawsuits continue to be filed by condominium and homeowners' associations due to property owners' nonpayment of assessments. Under the Condominium Act, a foreclosure lawsuit must be filed within one year of the filing of the association's lien whereas the statute of limitations for homeowners' association foreclosures is five years. When a mortgage lender is not foreclosing, many of our association clients will proceed with a lien foreclosure lawsuit against an owner's property for non-payment of assessments even if the property may be underwater.             A final judgment of foreclosure will state the amounts due to the association, and, if the owner fails to timely pay the total sum owed to the association, a foreclosure sale will take place. Where the proceeds from the sale are insufficient to satisfy the association's judgment, there will be a deficiency. In 1996, Florida's Fourth District Court of Appeal, in Maya Marca Condominium Apart. Inc. v. 0 'Rourke, established that associations may obtain deficiency judgments against foreclosed owners in situations where acquiring an underwater property through foreclosure does not make the association whole. Upon acquiring an underwater property, an association should determine whether to pursue a deficiency judgment against the owner personally, which decision hinges upon whether or not the owner is or is likely in the future to be collectible. Associations should keep in mind that...

            As many of you likely already know, the federal government, though the United States Department of Housing and Urban Development ("HUD") and the CARES Act issued moratoriums of mortgage foreclosures and evictions for non-payment of rent. On December 17, 2020, HUD issued its Mortgagee Letter 2020-43, which extended the foreclosure and eviction moratorium as a result of COVID-19. With this latest order the moratorium on residential foreclosures and evictions is extended until February 28, 2021.              There are, however, a couple of important caveats to this order. First, it is important to keep in mind that the moratorium does not prevent a condominium or homeowners association from seeking foreclosure for unpaid assessments. Accordingly, we have advised many of our clients to continue aggressively pursuing the collections of its assessments. In situations that associations may be hesitant to proceed with the filing of foreclosure because there is a bank foreclosure pending or imminent, we would recommend that the associations strongly consider proceeding with its own foreclosure action. The reason being, the longer the banks are delayed from proceeding, the more likely the chance that the association will be able to finish its own foreclosure action resulting in a foreclosure sale.             Second, the moratorium excludes vacant or abandoned properties. In other words, if the residents of the property have already vacated the subject property, the moratorium does not apply, and foreclosure and/or eviction may proceed in the ordinary course. This is important to keep in mind, because often the banks holding the mortgages do not have any idea on the status of the occupancy of the unit, and as a result will assume the property is occupied. This assumption will usually cause the banks to treat all properties as being affected by the moratorium summarily delaying the proceedings. Through close consultation with the associations where many of these properties exist, our office has been successful in opposing the bank's motions to cease proceedings by informing the courts that the moratorium is inapplicable to vacant properties. Such...

        It’s been about a year since the world first learned of COVID-19. Since then, there have been more than 17 million cases and more than 300,000 deaths from the disease in the United States alone. To put it mildly, the pandemic’s effects have been far-reaching. Approximately 12.6 million people have become unemployed, hospitals have been overrun, resources have been tapped, supply-chains have been taxed, and children and adults have been forced to adjust to learning and working remotely. Who would have ever thought that we could or would see such things in our lifetimes?         However, and at long last, we’ve finally received some good news. Where it normally takes five years or more to develop, test, and approve a vaccine for use, we have seen an unprecedented collaboration between the public and private sectors, and Operation “Warp Speed” has resulted in not just one, but four potential vaccines being approved for emergency use in the space of less than one year. Once vaccines have been approved for such use, the challenge becomes one of distributing the approved vaccines and making sure that the most vulnerable among us are the earliest to be vaccinated.         In connection with vaccine distribution, one method that has been used previously involves the “Closed Point of Dispensing (“POD”) Program.” Pursuant to this program, the federal government employs a system for the disbursement of lifesaving medications, from the Strategic National Stockpile to each state’s department of health (DOH). In turn, each DOH is required to dispense these medications to its entire population. To assist in this effort, the DOHs partner with local communities to form PODs so that communities can dispense medications to their residents. An association that has established itself as a Closed POD will have a direct relationship with the county health department to receive, store, and administer COVID-19 vaccines to all its residents once such vaccines are available.         Should such an option become available, a condominium or homeowners’ association would be required enter into an agreement with the county...

          By recent order of Governor DeSantis, Florida’s state of emergency due to COVID-19 has been extended to the beginning of November 2020. In part, this means that homeowners’ associations and condominium associations continue to be able to utilize emergency powers pursuant to Fla. Stat. §720.316 and Fla. Stat. §718.1265 respectively. Notably, among other emergency powers, is associations’ emergency power to determine that portions of association property are unavailable for entry, use, or occupancy. As such, this emergency power allows associations to keep facilities closed or to reopen them subject to limitations upon use and/or access.           Furthermore, despite what state and local governments may be permitting in terms of reopening public facilities and businesses, because of associations’ statutory emergency powers and the continuing state of emergency, there is no requirement that associations reopen association facilities at this time. In addition, those associations that choose to reopen association properties may elect to do so in a way that is more restrictive (but not less restrictive) than what is required by applicable government reopening orders.           In terms of current reopening orders, note that Palm Beach County has just entered Phase 2 of reopening after being in Phase 1 since May 11, 2020. Some salient aspects of Phase 2 which are likely to be germane to associations are as follows: CDC social distancing guidelines as well as CDC cleaning and disinfecting guidelines remain in effect.Mandates on wearing facial coverings remain in effect and unchanged by entry into Phase 2.Restaurants and food establishments including clubhouses, banquet halls, and ballrooms may increase indoor service up to 50% seating capacity, bar top meal service may be resumed, and parties of no more than ten people will be permitted provided that separate parties are spaced at least six feet apart from each other.Restaurants and food establishments may be open for dining at all times except between 12:00 a.m. and 5:00 a.m. Take out and delivery services are permitted after dining hours.Spas, acupuncture establishments, massage establishments, gyms, and fitness centers may resume operating at full...

          As many of you may know, Palm Beach County has issued Order 2020-012 to mandate the wearing of face masks throughout the County. At this time, based upon our review of the Order, and the information currently available, we advise that any association with an open indoor facility, clubhouse, recreation center or the like, should mandate that all people that enter the building be wearing a mask. It is likely that employees who are limiting their movements to an office with no interactions with any other person may not be required to wear a mask. However, if there is any interaction between people within an association building, all participants are required to wear a mask.           For outdoor common areas or common elements, a mask is not required IF social distancing is possible AND followed. The County has placed the burden on the respective establishment, including community associations, to ensure compliance with this order, or face the possibility of fines. There are several exceptions to the mask requirement, including while exercising, for religious reasons, or for medical reasons. We think that some owners may begin to express a medical basis to be exempt from the mask requirement, however, that does not exempt that person from maintaining proper social distancing, which the association should insist upon. Please let us know if you have any questions.

          The COVID-19 crisis has caused many of our Clients to raise questions pertaining to their own estate planning, particularly documents that family members may need in the event that a loved one becomes hospitalized. Given this unprecedented time, we encourage all of our clients to consider the following: A. Are your estate planning documents that address legal and medical matters while you are still alive up to date, consistent with your wishes, and readily available or accessible? Estate Planning Documents that are effective immediately that we strongly recommend for Clients: Durable Power of Attorney A Durable Power of Attorney is a written document that appoints an “Agent” to manage your legal and financial affairs, and it gives the Agent legal authority over your assets and other legal rights. The Durable Power of Attorney becomes effective immediately upon signing, and it continues to be valid and effective if you were to become incapacitated. You should only appoint somebody that you completely trust. A Durable Power of Attorney often helps to avoid guardianship proceedings if a person becomes incapacitated, however the power granted by the document would terminate upon death. We recommend that Clients should review their Durable Power of Attorney to insure they are comfortable with the Agent(s) designated as well as the scope of the power given to said Agent(s). Your Agent should also be aware of the document and know where a copy is located. Designation of Healthcare Surrogate Also known as a Healthcare Power of Attorney, a Designation of Healthcare Surrogate nominates an individual (or multiple individuals) to make medical decisions on your behalf. It specifies the types of treatments that the health care surrogate is allowed to consent to, and it names alternate health care surrogates if your first choice is unable or unwilling to serve as your surrogate. A Designation of Healthcare Surrogate is effective immediately, however, when you are awake and have mental capacity, then you maintain complete control of all your own healthcare decisions. We strongly recommend to all our Clients to execute this document and to discuss their respective...

In the midst of this global crisis, we are pleased to announce confirmation that Florida condominium and homeowners’ associations, in addition to small businesses and other not for profit corporations, are eligible to receive Disaster Loan Assistance through the U.S. Small Business Administration. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the impact of the Coronavirus on your associations and businesses. The SBA offers loan terms of up to thirty years, with interest rates for not for profit corporations at 2.75% and for small businesses at 3.75%. The attorneys and staff of Sachs Sax Caplan, P.L. stand ready, willing, and able to assist Florida condominium and homeowners’ associations, Florida not for profit corporations, and Florida small businesses in compiling and filing the applications and supporting documentation necessary to secure such assistance.

The purpose of this article is to try to bring together the possible loans, grants and other relief for small businesses throughout Palm Beach County. We are trying to bring clarity to what has become a blizzard of forms, filings and verifications. So, this is scratching of the surface, but we must all start somewhere. I. SBA Economic Injury Disaster Loan Program As part of its disaster assistance program, and unlocked under the Stafford Act, the SBA is providing low-interest working capital loans of up to $2 million to small businesses and nonprofits affected by the coronavirus in presidential and SBA-declared disaster areas. Florida is now a disaster area. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. Business with credit available elsewhere are not eligible . I think it is fair to say that credit is most likely not available to any restaurant, bar, hotel or other tourist oriented business in Palm Beach County. However, this requires further research. There are loans available to non-profits. An interesting questions is whether this includes homeowners and condominium associations so important to our area. This will require further research. The interest rate for non-profits is 2.75%. These loans offer long-term repayments plans, up to a maximum of 30 years. Terms are determined on a case-by-case basis. Application may be made online. You will need to supply required supporting documentation that could include the business’s most recent tax returns, a personal financial statement and a schedule of liabilities that lists all your current debts. There is a help line: SBA Disaster Assistance Customer Service Center at 1-800-659-2955 (TTY: 1-800-877-8339) but expect long delays. For additional information, email is: This email address is being protected from spambots. You need JavaScript enabled to view it.. II. The Florida Small Business Emergency Bridge Loan Program There is currently available to small business owners located in all Florida that experienced economic damage as a result of COVID-1 a small business emergency bridge loan. All Florida counties statewide per Executive Order 20-52. These short-term, interest-free working capital loans are intended...

Florida’s governor has declared a state of emergency due to novel coronavirus. This has triggered the availability of statutory emergency powers to condominium associations and homeowners’ associations. Although the applicable statutory sections were clearly written with natural disasters in mind, the majority view of association law practitioners appears to be that emergency powers are now available. However, because condominium associations and homeowners’ associations are unaccustomed to utilizing emergency powers and, in many cases, are unfamiliar with them, many communities have been slow to avail themselves of benefits of the use of such powers. Nevertheless, emergency powers are expressly limited to times when the use of such powers are “reasonably necessary to protect the health, safety, and welfare” of residents and may not be abused. If an association has any questions about the use of emergency powers, it is recommended to contact legal counsel and obtain advice. As the state of emergency is likely to continue for some time, associations will likely have ample opportunity to familiarize themselves with available emergency powers and to make use of them.

Business interruption insurance, like all coverage, is technical in nature. It is intended to cover interruption from certain perils and in most instances, it addresses physical damage to a property or business which locks you out or makes it impossible for you conduct the business. Unfortunately, the SARS outbreak from 2002/2003 put the insurance companies on notice about the possibility of an interruption to business based on a pandemic and infectious disease outbreaks as a cause were often exempted from coverage in most generally offered business insurance policies. However, all may not be lost. You will have to examine your policy carefully to see if there is coverage for interruption by civil or military authority. Thus, you would argue that it was not the coronavirus that caused the interruption, but the federal or state executive order to close your business. However, there is nothing you can take to the bank concerning your policy’s coverage on quick review. The policy must be studied. It may have limits on the length of coverage, sometimes as little as 14 days. It will undoubtedly have limits as to a Dollar amount. There may be waiting periods before a claim can be made. It is time to take out your insurance policies and have them carefully considered. If you believe you have a claim, and need some assistance with the highly technical language, please feel free to contact us.

By Jeffrey Wolfe, Esq., Attorney at Sachs Sax Caplan, P.L. As the impact of the coronavirus (COVID-19) pandemic expands, we are receiving an increasing number of calls from clients as to whether COVID-19 provides an excuse for nonperformance under a contract (mostly in the context of purchase agreement, leases and business contracts). As is the case of most legal questions, there is no general answer, it depends upon the facts. Some contracts have a “force majeure” clause which excuses a party’s performance for certain events that are not within a party’s control, such as Acts of God, terrorism, and war. Whether COID-19 qualifies as a force majeure event will depend on the wording in the agreement, as well as the surrounding facts. Parties need to be careful not to declare force majeure if their agreement does not contractually entitle them to do so as such action could constitute a breach of contract. Please contact our firm with any questions or concerns. We would be happy to assist you in determining whether COIVD-19 qualifies as a force majeure event under your agreement.

New 4th DCA decision discussing the proper application of the “Business Judgment Rule” in community associations, and involving our client, Homeland Property Owners Association, Inc.

By: Lindsay E. Raphael, Esq., Senior Counsel, Sachs Sax Caplan, P.L. The heart of hurricane season is quickly approaching---the full season runs from June 1 to November 30th. Year after year we all hear news reports about how this hurricane season is going to be the most active yet and then if we are lucky, we have a relatively quiet season and if we are really lucky, South Florida is temporarily spared. The problem is people become immune to hearing about how important it is to be prepared and then they are annoyed because after preparing for a hurricane, the hurricane may turn and not hit our area. Complacency is dangerous. It is better to be prepared and spared then to be unprepared and hit with a hurricane (or a tropical storm). The association’s board of directors is responsible for making sure the association’s property is prepared for a hurricane, owners have the responsibility to make sure their own property is prepared and that no loose objects are left outside. While every association has some exposure to a hurricane, disaster planning has the potential and probability of saving lives and minimizing damage. Below are 8 tips to help you prepare for a hurricane: Insurance Policies: Make sure the association’s insurance policies (including windstorm and flood insurance) are in place prior to the start of hurricane season. Secure copies of all current insurance policies along with the contact information of the association’s insurance companies and agents so that in the event the building sustains damage the association has access to this important paperwork.Disaster Plan: The association should have a disaster plan that is ready to be implemented if necessary.Safeguarding Important Documents; Make Copies of your Business Records: The documents that should be safeguarded and copied include, without limitation, the governing documents, insurance policies, bank account numbers, statements, checks, assessment payment history, minutes, approvals, unit owner roster, emergency contact information, vendor information lists, etc. This information should be kept in a place the association can retrieve after the storm.Backup Computer Files: Be sure that computer files essential to running the HOA or condominium...