SUMMARY (TL;DR)

Insurance is now 473% of what it cost in 2020. Your amendment consent is needed to help stabilize the HOA budget.

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⚠️ This message is intended for Highlands homeowners. If you are a renter or do not own a home in the Highlands, please disregard.

1. The Financial Reality Facing Our Community

Florida’s insurance market has changed dramatically, and those changes have directly reshaped our HOA budget.

Insurance Cost Change (2020 → 2024)

• 2020: $39,372
• 2024: $186,053

📌 Insurance in 2024 was 473% of the 2020 cost.

📌 That is a 373% increase in just four years.

During the same time, total dues increased by only 10%.

This extreme mismatch between revenue and mandatory expenses is not sustainable without updated governing documents.

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2. How Insurance Crowded Out the Entire Budget

Because insurance grew so quickly:

🔹 Insurance consumed 8% of all dues in 2020

🔹 Insurance consumed 35% of all dues in 2024

⭐ That means every other budget category lost 27% of its funding capacity.

This loss affected:

• Maintenance
• Landscaping
• Repairs
• Reserves
• Amenities
• Utilities
• Contracted services
• Infrastructure upkeep

In short:

This is exactly how otherwise healthy communities fall behind on maintenance, deplete reserves, and enter financial distress.

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3. Insurance Isn’t the Only Cost That Increased

While insurance was the most dramatic increase, it was not the only one.
Most HOA operating expenses rise an average of 5–8% per year, even in normal economic conditions.

This 5–8% annual increase is supported by industry data because:

• Vendor labor costs (landscaping, janitorial, maintenance, management) typically rise 5–10% per year due to wage inflation and labor shortages.
• Materials and supplies (lumber, fencing, roofing, concrete, irrigation parts, pool chemicals) historically rise 6–12% annually, depending on market volatility.
• Utilities (electricity, water, waste, street lighting) often increase 5–12% per year, especially in Florida.
• Repairs and replacements become more expensive each year because of rising material costs, shipping, and contractor demand.

Taken together, these categories produce a consistent 5–8% yearly increase in the cost of operating nearly all HOAs, even when insurance is stable.

So even without the extreme insurance spike, the cost of running the Highlands naturally rises every year.

When you combine these normal increases with the 373% insurance explosion, the budget imbalance becomes impossible to absorb under the current documents.

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4. Why Avoiding a Court-Appointed Receiver Is Critical

If the HOA cannot legally balance the budget and maintain the basic, legally-mandated requirements of the community under the current, outdated governing documents, a judge may appoint a receiver.

A receiver:

• Has full control over HOA finances
• Can raise dues without owner approval
• Can impose immediate special assessments
• Charges high hourly fees paid by the HOA
• Does not focus on long-term homeowner affordability

⚠️ A receiver’s mandate is to force the budget to balance — regardless of cost to homeowners.

Updating our documents keeps control with the community, not the courts.

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5. How the Amendments Protect Homeowners

The amendments provide a controlled, responsible, homeowner-first framework to manage rising mandatory expenses while keeping dues predictable and avoiding unlimited increases.

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✨ Amendment #1 — Capital Contribution (estimated $100,000/Year of New Revenue)

This amendment allows a contribution to the HOA at the time of each real estate sale (paid by the buyer, not current homeowners).

Based on typical turnover, this would generate ~$100,000 per year — without raising dues.

⭐ That $100,000 offsets more than half of today's insurance cost.

⭐ It begins restoring the budget capacity insurance took away.

Communities throughout Florida use this same model, and both buyers and realtors typically anticipate it when closing on a home in an HOA. It’s widely regarded as the buyer’s way of investing in the amenities, reserves, and community infrastructure they’ll rely on as residents.

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✨ Amendment #3 — Controlled, Transparent Budget Adjustments

Amendment #3:

• Keeps the 5% annual dues cap
• Allows up to 10% only when required by a documented shortfall or reserve study
• Adds strict transparency and owner notification rules
• Requires the Board to certify that all spending is essential, not optional
• Prevents runaway budgets by tightening financial controls

⭐ This amendment ensures predictability, oversight, and owner safeguards even in a difficult economic environment.

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✨ Amendment #4 — Deficit Assessments (Only When Necessary)

This amendment provides a structured, rule-based method for addressing shortfalls only when the budget truly cannot balance.

It includes:

• Documentation requirements
• Owner notice and transparency
• Mandatory exclusion of non-essential spending
• Strict limits on how funds may be used

Most HOAs and COAs already have this type of deficit-assessment language built into their documents. In fact, industry leaders assumed we had it as well and were shocked to learn that our governing documents did not include this essential protection.

⭐ This reduces the risk of unlimited court-ordered assessments with a transparent, controlled process managed by the HOA.

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6. The Bottom Line

✔ Insurance is now 473% of its 2020 level, a 373% increase

✔ Insurance alone consumes 35% of all dues

✔ All other categories lost 27% of their funding

✔ Without amendments, the HOA risks legal inability to balance the budget

✔ A court-appointed receiver would have power to raise dues without HOA approval

✔ Amendments 1, 3, and 4 provide the tools to keep dues reasonable and protect homeowners

7. Your Consent Directly Protects the Community

Updating our governing documents:

• Keeps dues predictable
• Reduces the risk of court intervention
• Restores financial stability
• Protects property values
• Brings revenue back into balance
• The community — not a judge — stays in control

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🖊️ Please complete your amendment consent today.

Your participation protects the Highlands and helps our community remain strong, stable, and homeowner-led.

🖊️ How to Sign

If you have already submitted your consent—either electronically or on paper—no further action is needed.

Signing electronically is quick and easy, and it saves both you and the HOA time and money.

Click the button below to sign the consent form:

• You may consent to one, several, or all six amendments.
• Just initial the amendments you agree to.
• Any amendment left blank will be treated as not consented to.

Please consider checking on neighbors who may not be seeing these newsletters or who may not be as familiar with electronic forms. Offering a little help can be very supportive during this process.

Additional Improvements for Homeowners

Amendment #2 — Better Materials & More Flexibility

Allows the HOA and homeowners to use stronger, longer-lasting, and more affordable roofing and fencing materialswhile keeping the community look consistent. It also lets homeowners have backyard sheds that meet simple, clear appearance rules.

Amendment #5 — Fair & Safe Rental Standards

Creates a straightforward rental approval process that helps prevent problem tenants, supports neighborhood safety, and protects property values.

Amendment #6 — Smarter, More Transparent Contracting

Ensures the HOA gets the best value by requiring competitive bids and adding clear rules that protect against conflicts of interest and misuse of funds.

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📄 Helpful Resources

If you’d like to review the materials before signing, here are the links:

• Interactive Q&A Chat (Instant Answers Anytime):​
This chat is available 24/7 and can walk you through any questions you have about the amendments and explain how they work. It’s extremely knowledgeable and designed to give clear, accurate explanations based on the amendment materials.

• Full text of all amendments (Owner Portal Documents):
​Log into https://portal.hoaemt.com
​Go to Documents on the menu --> Governing Documents --> Proposed Document Changes -->
Document titled "Highlands HOA Amendment Revisions May 2025; v3.pdf"

• Summary of the financial crisis and explanation of each amendment:

• Video presentations (Owner Portal Dashboard):
​Log into https://portal.hoaemt.com
​Scroll down on the dashboard for the video presentations titled "State of the HOA" and "Proposed Amendment Changes"

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⭐ Why Amendments 3 and 4 Matter

All amendments are helpful, but Amendments 3 and 4 are essential to resolving the financial crisis and avoiding potential receivership.

If a receiver is appointed, they and the judge would have full authority over operations and costs, including the ability to impose unlimited fees and charge the community for their time and all court-related expenses.

Once you sign, your consent will be automatically recorded.

🆘 Need Help?

1️⃣ Signing issues or requesting a physical copy​
If you have any trouble signing electronically, or if you prefer a printed or mailed copy, please email:
consent@thehighlandsws.com

2️⃣ Questions about the amendments​
The easiest and fastest way to get your questions answered is through the interactive Q&A chat—it gives immediate, accurate responses anytime you need them.
If you still have questions afterward, the Board is always available at:
directors@thehighlandsws.com

Thank you for your support and engagement.

Warm regards,
​Highlands Board of Directors

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How To Reach The HOA

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