We realize that there are many questions with regards to hurricane recovery in associations. There especially seems to be some confusion as to how FEMA works with regards to an association. The following is information we received from CAI, a leading authority in community association management. We hope this helps to answer some of your questions and alleviate some of your concerns. We have also included a link to an article that was recently in the News-Press regarding hurricane recovery in associations, as well as a few points to note with regards to insurance.

FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA)

On Sept. 29, President Biden approved disaster declarations for the state of Florida. The approval makes funds available to communities within the state to respond to, rebuild, and recover from the devastation left by Hurricane Ian. Federal assistance can include grants for temporary housing and home repairs, low-cost loans to cover uninsured property losses, and other programs to help individuals and business owners recover from the effects of the disaster. Residents and business owners who sustained losses in the designated areas can begin applying for FEMA immediately.

For community associations, it is important to work with your locality to coordinate debris removal. A community will have to complete and submit (to the locality) the right of entry form found here. Keep in mind that FEMA does not typically reimburse the community association; the reimbursement (and work) must go through the local municipality. 

For condominiums and housing cooperatives, if your critical components (elevators, heating/AC, building structures, parking garages, etc.) need repairs and replacement, you can submit an application under FEMA’s assistance program. If condominium associations or housing cooperatives don’t receive relief from FEMA, individual owners may be eligible for homeowner assistance for their fair share of the repairs. 

If you or your community are not receiving what you need from FEMA, reach out to your member of Congress and ask for their assistance through their constituent services department. Be prepared with documented information about your claim and application/interaction with FEMA. You will find contact information for your member of Congress here.

The following article touches on general various aspects of recovery for associations, boards and owners:

https://www.news-press.com/story/marketplace/real-estate/fort-myers/2022/10/08/recoverecovery-from-hurricane-ianry-hurricane-ian/8168418001/

INSURANCE – CONDOMINIUMS

Please note the following with regards to insurance:

1. All residents should file claims with their HO-6 carriers if they think they have any wind damage. They can also try to get loss of use coverage through their HO-6 which should cover additional living expenses while the property is being repaired. 
2. If a resident has car damage, they should call their auto carrier directly. It should be covered under comprehensive and the comprehensive deductible will apply.
3. If a resident is carrying their own flood policy, encourage them to file a claim for their contents. The association’s flood policy will cover the building up through the interior improvements (such as flooring and cabinets). It will NOT cover the contents/personal property in the unit. That is the responsibility of each individual unit owner. 
4. If any of the residents don’t have a flood policy, encourage them to apply for FEMA disaster assistance. FEMA has designated funds for individuals that don’t have insurance. This is separate from the association’s flood policy. 
5.  You are allowed to take steps to prevent further loss. The association can handle any exterior building envelope issues, such as roof or window breaches. Have one company come in to get any water out of the units and try to prevent mold. What you want to avoid: individual unit owners getting their own ‘restoration’ companies that take a percentage of the claim as payment. Any costs you incur while protecting the building or doing temporary repairs will be grouped into the association’s claim. Keep any photos or receipts for costs incurred while doing temporary repairs. NOTE: The association’s flood policy will cover the interior improvements inside the drywall such as flooring and countertops and cabinets. On the contrary, if loss is due to wind, the unit owners would be responsible for anything inside the drywall.
6. The association is allowed to clean up debris. Take as many photos and videos of the damage that you can. Save all receipts. 
7.  Be wary of contractors that approach the association and ask for either an assignment of benefits or a portion of the claim (such as 10%). Also be wary of contractors that ask to speak to your insurance carrier directly. There are a lot of contractors trying to take advantage of this terrible situation and those are all red flags. Do not agree to or sign any AOBs (Assignment of Benefits).
8. Do not start repair work until you have bids approved by the insurance carrier.

We understand that the rehabilitation of your community is of utmost importance. You are not alone. With the magnitude of the destruction and amount of people affected, patience will need to be exercised as you and your CAM work towards repair and recovery.

Thank you for all you do for your community,

The Alliant Management Team