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July, 2010

NEWSLETTER OF THE LAKE EMERALD OWNERS ASSOCIATION

Property Manager’s Report Hello Lake Emerald!! My name is Antonio Piracci your new property manager. Please call me Tony! I would first off like to say “thank you”, to everyone involved in my hire, especially the search committee. I would also like to say “thank you” to the Board of Directors for offering all of their support and guidance the moment I walked through the door. Lastly I would like to say “thank you” to all of the residents who welcomed me as your new property manager!!! My background comes from a history in building materials, project management in restoration and property management. I was very excited to be chosen to manage this absolutely beautiful community and am very eager to bring my ambition and experiences to help re-organize and manage your association to the best of my ability. “I try and manage my communities as if I lived in them myself and try and treat and care for residents in the same manner.” New Insurance Company for Lake Emerald As my first month here is behind me I got a chance to meet all the committee’s and experience the daily office grind. The first major task I had a hand was the renewal of the association’s Insurance. After presentations from several reputable agents, the Board of Directors chose to be insured by the Mack, Mack and Waltz Insurance Group. Brandon Levy, Senior Vice President delivered an exceptional presentation while informing the association of our current policy and key points to improve our future policies as well.

I would like to inform all owners of EOI Direct. EOI as some of you may know is an easy and simple way to download your “proof of insurance” from the internet. In case you don’t know how, it’s simple.

Go to eoidirect.com to create a username and pass code

After you have created a profile, go to “Evidence of Insurance”

Enter in your personal owner information

Print out your proof of insurance

Please let us know if you are having any difficulties!

TABLE OF CONTENTS

Property Manager Report

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Director’s Message

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Gym News ………………4

Secretary Report ………………4

Clubhouse News ………………6

Compliance Committee

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Community Contacts

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Property Manager’s Report (con’t) South Pool and Spa Project I would also like to take this opportunity to inform you on the South Pool/Spa Project. After meeting with the oversight committee and consultant Bob Young, I can see they all did a fabulous job putting this project together. Ron Myers did an excellent job compiling an official spec sheet reading “apples to apples” language for all contractors to base their proposals from. Jim Basta and Chris Bruno also planned and networked the project with various vendors. Bob Young gave us some well needed insight with his background in aquatics/pools. When they handed the project to me it was just a matter of pushing the buttons to get the project started so I would like to say “thank you” to all of them. Currently I met with Nationwide Pools to go over a start and end date of the spa restoration. I am pleased to announce the start date will officially be July 7, 2010. The scope of work and all permits were approved as of July 2nd so there should be little delay in completing the project with an estimated completion date of August 13, contingent upon final approval from the City of Oakland Park. The South Pool diamond brite and deck repair project is being reviewed and worked on daily to ensure the project is in budget, well managed and completed according to spec. The Board of Directors will have a complete overview of all the proposals and should have a vendor established at the next Board of Directors meeting. The diamond brite and deck repair should only take a week to ten days to complete. We are attempting to have both projects spa and pool/deck completed the same week, roughly around mid August. We cannot predict unforeseen problems however the projects are currently running on schedule. Although I was not here managing your property during Hurricane Wilma, I’m aware your spa has been missing since and I am doing my absolute best to move this project towards a completion date. On behalf of the Oversight Committee, Board of Directors and myself we thank you all for being so very patient!!

E-mails and Communication to the Management Office It is easy to pick up the phone and speak to the management office for any questions or concerns and we all welcome it. However as some of you may know this is a busy office and times can be limited. I am going to ask that if the concern is not an emergency or just something that needs to be addressed and done at leisure to please send an e-mail. It helps us in the office to manage our time more efficient and provide better service through e-mail correspondence. You may e-mail Rosa Santiago, our office administrative assistant at office@leoacondos.com regarding key fabs, screenings, parking passes etc. You may also reach myself, Tony Piracci at management@ leoacondos.com regarding any complaints, leaks, hazards etc. Please be sure to include first, your building and unit number in the “subject line” of your e-mail as well as a brief description of your reason for the e-mail. I would prefer an e-mail over a phone message but please take your pick. This will help us to better identify and file your e-mails as well as assist us in making sure your concerns are heard and responded too in a timely manner. Everyone is important here at Lake Emerald and as your property manager I want to make sure you all know that!!!! Thanks again to everyone; I look forward to serving you!

Tony Piracci Property Manager

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Secretary’s Message

We are pleased to announce that work has commenced on the South Pool and spa reconstruction.

Please comply with the notice of closure included elsewhere in this issue of Reflections.

James Basta Secretary

GYM NEWS

Introduction to the gym: On Wednesday, August 4th at 3 p.m. there will be a demonstration of our gym equipment, including the treadmill and other equipment. Proper form will be stressed, For those interested in supporting a weight loss program, the demonstration will include "interval training." If you plan to exercise, wear the proper shoes and bring a towel and water. Several people have already expressed interest in attending, so save the day if you are interested.

Carolyn Starin Director & Co-Chair of Gym Committee

Director’s Message

FINANCING FACTS By Christine Kinzer

The two most common ways to finance a real estate purchase are FHA financing and conventional financing (Freddie Mac and Fannie Mae). There are other ways, such as VA financing and seller financing, but for this article, I'll stick to the most common methods of financing. Conventional financing has changed considerably in the last couple years. A buyer used to be able to secure 95% or 90% financing on a conventional loan. Banks don't like to loan more than 80% of the purchase price, and when they do lend more than 80%, they require the buyer to pay for mortgage insurance to guarantee that if the loan does go into default, the bank will not lose. There are 5 mortgage insurance companies in South Florida, and ALL of them have exited the condo market. Thus, for conventional financing of a condominium, the buyer must plan on putting 25% down. Now, let's talk about FHA... FHA was created to help people achieve the "American Dream" of home ownership. It is available to the purchase of "Primary Residences" ONLY. (I.E. no second homes or investment properties). FHA was created prior to the existence of condominiums and that is the reason they are more difficult when it comes to FHA financing. Currently, the ENTIRE condominium project must be FHA approved vs. the "spot approvals" of the past. Typically, someone can only have ONE FHA loan at a time unless there are extenuating circumstances such as a job transfer.

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Director’s Message: Financing Facts (con’t) The MOST common misconception about a FHA loan is that some believe the money is coming directly from the Federal Housing Administration (FHA). In fact, the funding is still coming from a bank (Sun Trust, Wells Fargo, B of A, etc.) and the FHA is the entity that protects or INSURES the bank against a loss if the borrower defaults. FHA is to a government loan as PMI (private mortgage insurance) is to a conventional loan. It is for this reason that a bank is willing to make a loan with only a 3.5% down payment or 96.5% LTV (loan to value). Without the FHA to "insure the loan, a buyer would have to come up with a 25% down payment. There is talk of FHA increasing the minimum down payment from 3.5% to 5%, but nothing definitive has come out of FHA yet. If you think of FHA as an "insurer", as with all insurance there will be insurance premiums. In the case of a FHA loan, the insurance premiums are paid by the buyer and broken into two parts: UFMIP (up front mortgage insurance premium) paid as a lump sum at closing and MIP (monthly insurance premium) paid monthly as part of the mortgage payment. Both the UFMIP and MIP are factors of the loan amount, and are the same no matter which bank a borrower users. Currently, the UFMIP is 2.25% of the base loan amount and MIP is .55% of the loan amount annually. For example, assume the purchase price is $100,000. The buyer must put 3.5% down, and the base loan amount (96.5%) is $96,500. The Up Front Mortgage Insurance Premium (UFMIP) equals the base loan amount X 2.25% OR $2,171. The only good thing about UFMIP is that it does NOT come out of the borrower's pocket at closing, but is ADDED to the base loan amount to come up with the TOTAL LOAN AMOUNT. (Base loan amount of $96,500 + $2171 UFMIP equals $98,760 as the Total Loan Amount.) MIP (mortgage insurance premium) equals the Total Loan Amount X .55% per 12 months. (i.e. $98,671 x .55% = $45.22 per month.)

The MIP goes away once the borrower has paid down the principal balance of the loan to 80% loan to value. The interest rates between FHA loans and conventional loans are very similar at the current time. FHA loans are made to borrowers with credit scores as low as 620, although some banks require higher credit scores. FHA allows borrowers to use 45%-50% of their GROSS monthly income for housing, which is more than conventional lenders allow. FHA allows sellers to pay up to 6% of the closing costs for the buyer's prepaid items, loan fees, closing costs, etc. Conventional financing usually limits the seller's contributions to 3% of the purchase price. At a purchase price of $100,000, the 6% will usually cover all or most of the buyer's closing costs. The 3.5% down payment MUST come from the borrower's own funds or be a gift from a family member. The seller CANNOT help a buyer with the down payment. All FHA loans are fully documented with respect to verifying income, assets, debts and employment. (continued on page 7)

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CLUBHOUSE NEWS

Why leave home and fight the crowds and traffic when we have it all here at Lake Emerald?

Kudos to Walter, our newly crowned “pyro-tech” expert and his assistants, ChuCk and Kahlil,

for the spectacular fireworks display. Gratitude to Tim and Charles, Michele Gordron, Barbara and

Mel Greenberg, Rosa DiBello, Joan Freeman, and Bob Young, for their contributions to our RAFFLE that helped defray the cost of our celebratory display! Our congratulations to the five winners, although somewhat “tongue-in-cheek”, to Ron Myers who drew his own name! Only Kidding! I hope Ron and his wife enjoy their wine basket! Throughout the evening, Jeff Forrest “tickled the ivories” on our new baby grand piano. Piano playing – masterful! Singing ability – questionable!!! Thank you, Jeffrey!!! We must acknowledge our Clubhouse workers who made it all possible: Debbie Potter, who also mans the

kitchen on Sunday afternoons; Michael PalMadessa who bartended; Mary Ann Gioia who stood

over the hot barbeque grill and cooked the steaks; Lou DeAnder who cut the steaks for us. Appreciation is also extended to Dottie Lynch and Richard Hyatt. It was a good night despite the on-again, off-again drizzle. Support your Clubhouse! Come to Bingo on Thursday nights, stop by for a Cheeseburger & Fries some Sunday afternoon, or come to our next event!

Happy Summer to everyone in Lake Emerald. Thanks to all who came out and participated July 4th - the 234th anniversary of the “Birth of your Nation” Celebration!

Clubhouse Kitchen Phone Number: (954) 735-1717 ext. 206. Rental rates and contact info can be obtained from Rosa in the office.

Carole Collier Bld 105

Happy Fourth of July! Hello Community. The 4th of July celebration at the Clubhouse was absolutely the best. The steak fry was excellent. I and everyone who attended this celebration had a great time. Jeff at the piano, cocktails, and more. The raffle was a success and I had the privilege to be asked to host that part of the evening activity. I was even fortunate to win a basket of wine.

Towards the end of the evening, as part of the event, the fireworks exploded over our beautiful lake. What a sight to see and a night to remember. Florence and I met so many nice people and we enjoyed ourselves. My hat is off to Carol, Michael Palmadessa, Marian and all the folks who contributed to a wonderful July 4th event Again thank you, and kudos to the Clubhouse Committee.

Ronald Myers Director

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Director’s Message: Financing Facts FHA looks for a borrower to have a steady TWO year employment history. FHA allows for Non-Occupant Co-Borrowers, meaning a first time home buyer can have his/her parents co-sign to help them qualify for the loan. Borrowers who are retired and whose income comes from a pension and/or social security ARE eligible for FHA loans. Now, let's look at an example of the financing: Purchase price $100,000 Down Payment 3.5% or $3,500 Buyer asks seller to pay 6% toward buyer's closing costs. Base Loan amount is $96,500. ($100,000 -3.5% down) Up front mortgage insurance premium is $2,171, which is added to the base loan amount making the loan amount $98,671. Current interest rate is 5% Payment:

$529.69 principal and interest $ 45.22 mortgage insurance premium $190.00 real estate taxes $410.00 approx. condo fee

TOTAL PAYMENT $1,174.91 Remember, mortgage interest and real estate taxes are tax-deductible, so the effective payment will be less than the $1,174.91! With only 3.5% down, a buyer can purchase a condo and pay less to own than he/she might have to pay to rent, AND get a tax deduction. With all that said, we still have a problem with FHA financing at Lake Emerald. Most banks making the FHA loans are requiring that Lake Emerald fill out a "Condo Questionnaire".

One of the questions on this Condo Questionnaire is, "what number of units in your community are 30 days or more late with the monthly condo dues?" ***If this number exceeds 15%, the community is NOT eligible for financing.** Let me state that again...if 15% or more of the owners in Lake Emerald are 30 days or more late on their condo dues, the community CANNOT receive FHA financing with most banks doing condo loans. With conventional financing, the buyer would be required to put 25% down in order to get a loan without the condo questionnaire being required. At this time, Lake Emerald is slightly under 15% delinquent, a figure that has been going down steadily. The Board of Directors has been working diligently to reduce this number (it was much higher), and the huge amount of foreclosures and short sales has helped tremendously. Every time a delinquent owner sells or gets foreclosed on, the number is reduced, and we have a new "paying owner". Almost all of these new owners have paid cash for their condo. It's very important for all owners to recognize this problem with financing, and make sure the condo dues are paid on a timely basis! About 13 or 14 years ago, I got all of Lake Emerald on the approved list for FHA financing. This approval expires in December of 2010. I'm working on getting the FHA approval extended, but FHA has not yet decided whether or not they will do away with such a list and put the responsibility onto the banks. I will keep working on this, but it won't make a difference if we can't keep the delinquency rate below 15%. One of the main contributing factors in property appreciation is the ability to obtain reasonable financing. It's important for all of us to keep our monthly condo dues current.

Christine Kinzer CKinzer@Bellsouth.net

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COMPLIANCE COMMITTEE

There are many dog owners here who abide by the rules. have their dogs on a leash and who pick up after their dogs. However, there are some residents who walk their dogs

with no plastic bags and with no intention of obeying the laws of both Oakland Park and our own rules.

We are asking that should any of you see someone violating these rules, please immediately report it to the office and, if possible, take a photo of the offender. The photos will be forwarded to the BSO, and

hopefully action will be taken and summons issued with a fine of $250 per occurrence.

Louise Gordon, Chairperson Compliance Committee

*** NOTICE ***

OF SOUTH POOL CLOSURE

The South Pool (between buildings 113 and 114) is now under reconstruction.

The South Pool area (pool, spa, restrooms) is now officially closed by the management to all use.

Do not enter the South Pool area until further notice.

We estimate reopening sometime in August.

THANK YOU FOR YOUR COOPERATION!

Dear Neighbors:

Over the past couple of years the board and committees have been busy with post hurricane repairs and financial issues and we have been rather lax in enforcement of our rules and regulations in areas that affect the quality of life of all of us in this community. This must, and will, change.

Specifically, but not exclusively, enforcement will include such things as pool rules (no glassware, no music playing, no unattended children, no pets), parking regulations, pet rules (dogs must be leashed anywhere on the property, and dog poop must be picked up).

The compliance committee is not a policing committee. We handle complaints of rules violations as they are reported. If a resident is observed to be in violation, it serves no purpose to complain to your friends and neighbors… instead, submit a written complaint (this can be found on www.leoacondos.com) and the matter will be handled promptly by this committee. Thank you for your cooperation.

Richard Hyatt Building 105

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Community Contacts Board Of Directors board@leoacondos.com

Derek Murphy, President derekdmurphy@aol.com (954) 535-9930

Betty Twyman, Vice-President bettytwyman@comcast.net (954) 632-0787

Bob Young, Treasurer Byoung415@comcast.net (954) 486-4612

Jim Basta, Secretary jim201@comcast.net (954) 735-6408

Denise Bednarek (954) 731-0703

Chris Bruno (954) 616-8251

Frieda Chervin (954) 739-8935

Michelle Gordon (954) 485-6046

Christine Kinzer (954) 566-3833

Fred Langevin (954) 484-1786

David Mehall (954) 733-4067

Ronald Myers (954) 730-3502

Michael Palmadessa (754) 423-5515

Carolyn Starin (954) 730-7636

Michael Wolmetz (954) 733-9039

Management Office

Main Number (954) 735-1718

Fax (954) 497-1541

Front Gate (954) 497-1549

Antonio Piracci, property mgr. management@leoacondos.com (954) 735-1718 ext. 201

Rosa Santiago, admin. Asst. office@leoacondos.com (954) 735-1718 ext. 200

Stella Marsh, bookkeeper accounting@leoacondos.com (954) 735-1718 ext. 202

Juan Lopez, maint. Supervisor maintenance@leoacondos.com (954) 735-1718 ext. 204

Office Hours

Monday 8:30 AM – 5:00PM

Tuesday 8:30 AM – 5:00PM

Wednesday 8:30 AM – 7:00PM

Thursday 8:30 AM – 5:00PM

Friday 8:30 AM – 5:00PM

Office is closed Saturday & Sunday.

Committees Chairperson & Members Beautification Committee Fred Langevin

Compliance Committee Louise Gordon

Emergency Preparedness Pamela Golden Gym Jim Basta & Carolyn Starin, co-Chairs

Media/Communications Jim Basta, Denise Bednarek Orientation/Screening Betty Twyman

Oversight Committee Jim Basta, Chris Bruno, Ron Myers, Carol Collier

Security Michael Wolmetz

Building Reps Condo # Building Phone Barbara Greenberg 4 105 312 (954) 739-1613 Volunteer needed 2 106 -- -- Gil Toner 1 109 -- (954) 677-2496 Marianne Gioia 1 110 207 (954) 714-8407 John Ross 1 110 202 (954) 540-5111 Becky Postiy 3 111 101 (954) 610-6923 Ilona & Bob Kirkpatrick 3 112 206 Carolyn Starin 5 113 206 (954) 730-7636 Dottie Chestnut 5 114 402 (954) 485-5264 Helen Searing 5 114 106 (954) 731-3573 Paula Tindall 5 114 302 (954) 484-3977 Gary Luker 6 115 401 (954) 295-3926 Robin Gill 6 116 306 (954) 484-8284 Anne Yablow 7 117 108 (954) 733-4047 Michael O’Leary 7 118 406 (954) 486-6579 Derek Murphy 7 118 210 (954) 535-9930 Reflections Newsletter Advertising:

Size 1-Month 3-Months 6-Months Year 1/8 page $28 $72 $127 $220 1/4 page $39 $105 $187 $330 1/2 page $55 $149 $275 $495 Full Page $83 $226 $413 $770 Inserts: $50

Contact: reflections@leoacondos.com

Publishing Deadline: The deadline for submissions for the August, 2010 edition of Reflections is Friday, August 6th, 2010.

Web Site www.leoacondos.com Contact:

Email: webmaster@leoacondos.com

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