The Decision in Plain English (TL;DR)

❌ Special assessments cannot legally fix the operating deficit
❌ Without changes, the HOA cannot lawfully adopt a fully balanced operating budget under the current rules

✅ Amendments fix the root cause
✅ Amendments reduce the risk of court intervention and help keep decisions homeowner-controlled
✅ Amendments keep dues as low as possible while meeting legal and financial obligations and addressing the problem long-term

If you agree with this, please sign now — it takes under 60 seconds.

Already signed? Thank you — please consider helping a neighbor submit theirs.

If you’ve already submitted a consent and wish to make a change, simply submit a new one — your most recent submission is the one that will be used.

​Sign Now! or Questions?​

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

🌳 THE HIGHLANDS FINANCIAL REALITY CHECK

Why Our 1970s Documents No Longer Work — And Why Amendments Are the Only Path to Stability, Protection, and a Thriving Community

​Sign Now! or Questions?​

🟦 WHY THIS BECAME A PROBLEM NOW — NOT YEARS AGO

⭐ 1. Inflation changed dramatically — our documents didn’t

For many years, inflation was low. A 5% dues cap was enough.

But today, Central Florida is experiencing:

• Insurance increases of 20–60%+
• Landscaping & maintenance inflation of 6–12%
• Pool chemical & labor inflation of 8–15%
• Utility increases of 5–8%
• Contractor labor inflation of 5–8%
• Construction/materials inflation of 6–14%

These categories rise much faster than national CPI, and far faster than the 5% cap allows our revenue to grow.

📉 Our dues = +5%

📈 Our real expenses = +7–12%

⭐ 2. Our infrastructure is aging — everything is coming due at once

The Highlands is nearly 50 years old. Major systems are now at end-of-life:

• Trails
• Perimeter walls
• Fencing
• Structural components
• Drainage
• Playgrounds

These were not problems in the early 2000s — but they are now.

⭐ 3. No reserve study for over a decade, and long-term reserves were not funded

For more than 15 years:

• No updated reserve study
• Reserve contributions were too low
• Major replacements weren’t planned
• Emergency funds were not built up
• Maintenance was delayed to avoid dues increases

Things seemed fine — until they started failing at once.

​Sign Now! or Questions?​

🟥 RECURRING DEFICITS ARE STRUCTURAL

Even under the most conservative assumptions:

✔ The barebones 2025 and 2026 budgets still had deficits

✔ A 5% dues increase will not fix it

✔ The deficit grows every year

✔ Inflation compounds faster than revenue, averaging 7-12%

✔ This persists unless the documents change

​Sign Now! or Questions?​

🟥 WHY SPECIAL ASSESSMENTS CANNOT SAVE THE HIGHLANDS

🔒 1. Our documents do NOT allow special assessments to cover budget deficits

Section 5.5 of the Declaration strictly limits special assessments to specific purposes, including:

• Construction or reconstruction
• Unexpected repair or replacement of a capital improvement
• Related fixtures and personal property

They are not authorized to fund operating expenses or balance an annual budget.

In addition, funds collected through a special assessment may only be used for the exact purpose stated in the notice and vote. They cannot later be redirected to cover other costs.

🧱 2. Even when used for major repairs, deficits still remain

Even if special assessments were used to fund known capital repairs, the HOA would still face large and growing operating shortfalls, driven by insurance, utilities, maintenance, and reserve needs.

Based on conservative calculations:

• 2024 healthy-budget shortfall: approximately $138,000
• 2025 healthy-budget shortfall: approximately $163,000
• 2026 healthy-budget shortfall: approximately $277,000
• 2027 projected shortfall: approximately $403,000​
  ​(pending updated reserve study)

⚠️ 3. Special assessments do not fix the root cause

The core issue is structural:

• Annual assessments are capped at 5%
• Actual expenses are increasing much faster
• The HOA cannot lawfully adopt a balanced budget under the current rules

🏛️ 4. Failure to fix the rules carries serious consequences

Under the current governing documents, the HOA does not have a sustainable, lawful way to fund ongoing operations or future budgets.

Continued financial instability increases the risk of court-appointed receivership, under which:

• All homeowner governance ends — the elected board is removed
• The court and its appointed receiver assume sole and absolute authority and discretion over the HOA’s finances and operations
• Dues and assessments may be imposed without homeowner votes or approval
• The receiver bills the HOA directly for their time and expenses, in addition to court costs

A receiver does not represent homeowners, does not answer to the community, and is not constrained by the HOA’s existing safeguards.
They answer only to the court.

This outcome is avoidable — but only by correcting the governing documents themselves.

​Sign Now! or Questions?​

🟩 WHY THE PROPOSED AMENDMENTS FIX THE PROBLEM AT ITS SOURCE

The amendments create lawful budget authority that does not exist under the current documents, while keeping control inside the community rather than transferring it to the courts.

They fix the structural problem — not just the symptoms

The amendments update the rules so the HOA can:

• Adopt balanced budgets based on actual costs
• Fund reserves responsibly
• Respond to inflation and aging infrastructure in a lawful manner

This is the standard structure used by most modern Florida HOAs.

They add safeguards — not unchecked power

The amendments do not grant unlimited or unmonitored authority.

They require:

• Advance notice to homeowners
• Budget transparency and documentation
• Limits on non-essential spending
• Ongoing monitoring and accountability

All authority remains within a homeowner-governed HOA, subject to process and oversight.

They reduce the risk of court intervention

By providing lawful, sustainable budget authority, the amendments reduce the risk of insolvency and court-appointed receivership, under which the court and its appointed receiver exercise sole and absolute authority and discretion over HOA finances and operations.

Keeping authority within the community is far preferable to transferring it to the courts.

They are the lowest-cost path over time

Legal, sustainable budgeting reduces compounding costs over time.

By fixing the problem at its source, the amendments help keep dues as low as possible while still meeting insurance, maintenance, reserve, and legal obligations.

​Sign Now! or Questions?​

🟦 OUR DOCUMENTS ARE 50 YEARS OUT OF DATE — AND MODERN HOAs DON’T OPERATE THIS WAY

Most HOAs built after the 1990s already include:

• Flexible, realistic budgeting authority
• Updated reserve requirements
• Stronger disaster and infrastructure planning
• Inflation-responsive financial tools
• Governance protections that prevent insolvency

Updating our documents to modern standards protects:

• Our home values
• Our quality of life
• Our infrastructure
• Our financial stability
• Our ability to stay self-governed

​Sign Now! or Questions?​

🏠 Amendment 1: Capital Resale Contribution — What to Know

⏳ Why it’s not in our current documents

• ❌ Didn’t exist in the 1970s
• 🕰️ Introduced in the 1980s
• ✅ Became common in the 1990s
• 📌 Standard practice today in modern Florida HOAs

⚖️ Why HOAs use it

• The new buyer contributes once at purchase
• Helps maintain infrastructure they benefit from

✅ Bottom line

This isn’t new or extreme — our documents are just outdated.

📊 Amendment 3: A Conservative Update to the 5% Cap

• 🕰️ 5% caps are from the 1970s — most HOAs moved away from them by the 1990s–2000s
• 📈 Modern HOAs commonly allow 10–15% annual increases
• 🛑 Amendment 3 allows up to 10% — only under strict conditions
• ⚖️ This is a conservative update, not an aggressive one

Bottom line

A conservative update with strict limits, safeguards, and transparency.

📉 Amendment 4: A Modern, Safeguarded Way to Handle Deficits

• 🕰️ Older HOA documents (like ours) assumed deficits wouldn’t occur
• ⚠️ In reality, aging HOAs now face insurance, reserve, and cost spikes
• 🏗️ Modern HOA documents include limited deficit-assessment authority to avoid insolvency and court takeover
• 📊 This is now standard practice in updated HOAs — especially in Florida

🛑 What Amendment 4 does (and doesn’t)

• ✅ Allows deficit assessments only when a real shortfall exists
• 🔒 Only for essential expenses
• 🔍 Requires notice, documentation, and transparency
• 🔁 Any unused funds must go to reserves or the next year’s budget
• 🚫 Not automatic and not unlimited

Bottom line:​
​A modern HOA tool, added conservatively and wrapped in safeguards.

🌟 THE BOTTOM LINE

​Sign Now! or Questions?​

🖊️ 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.
• If you’ve already submitted a consent and wish to make a change, simply submit a new one — your most recent submission is the one that will be used.

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 materials while 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.

​Sign Now! or Questions?​

📄 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 proposed 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"

• Existing governing documents (Owner Portal Documents):
​Log into https://portal.hoaemt.com
​Go to Documents on the menu --> Governing Documents

• 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"

​Sign Now! or Questions?​

⭐ 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 authority to impose assessments without homeowner approval and bill the community for court and receiver costs.

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

​Sign Now! or Questions?​

How To Reach The HOA

​Secure Owners Portal​

​​Pre-register for a Meeting​
​​
​Email Board of Directors: directors@thehighlandsws.com

Email Management: office@thehighlandsws.com

Call Management: 352-366-0234
Mon-Thur 9a-5p / Fri 9a-12p
Ext 161 for general questions
Ext 110 for account and log in questions
Ext 137 for Spanish