The 2021 legislative session brought some significant changes to the Condominium Act, the Cooperative Act, and the Homeowners Association Act. These changes went into effect on July 1, 2021, and many of them impacted the collections and foreclosure process for community associations. Read the entire article……………………………….
Assessment Offsets in Oregon HOAs
It is a problem we see often in our office. An owner withholds paying HOA assessments on the grounds that the Association is somehow failing to perform its duties and obligations under the governing documents. Although their actions may seem justified, owners need to understand that these withholdings are not allowed under Oregon law, and […]
HOA Dues Payment Plan: Should You Offer It To Delinquent Homeowners?
No homeowners association is a stranger to delinquent members. But, should your board offer an HOA dues payment plan to those behind on their fees? Let’s find out. Read the entire article……………………………….
HOA Fees in Bankruptcy: Beyond The Basics (GA)
Although we are well past the halfway point of 2021, the pandemic continues to affect daily life and finances for many Americans. Critically, with eviction and foreclosure moratoriums coming to an end and government assistance programs expiring, there is a predicted surge in bankruptcy filings likely to occur. Read the entire article……………………………….
Michigan Court Rules That Mortgage Foreclosure Statute Applies to Foreclosure of Condominium Liens
In Batth Investments, LLC v Miciura, unpublished per curiam opinion of the Court of Appeals, issued April 29, 2021 (Docket No. 352642), the Michigan Court of Appeals held that the codified requirements for mortgage foreclosures by advertisement, set forth in Chapter 32 of the Revised Judicature Act (the “Act”), MCL 600.3201 through 600.3285, apply to […]
HOA Foreclosure: The Truth And The Lies (NC)
There are many misconceptions about an HOA foreclosure that people believe to this day. But, it is imperative to separate fact from fiction to keep your association safe, legal-wise Read the entire article……………………………….
HOA Unpaid Assessments Are Subject to a Six-Year Statute of Limitations (WA)
The Washington Court of Appeals recently decided that the applicable statute of limitations for an action to enforce a homeowners association’s lien for unpaid assessments is six years Read the entire article……………………………….
Who is Responsible for Paying Assessments During and After a Mortgage Foreclosure? (MN)
We live in uncertain times. Personal financial situations can be fluid. Sometimes homeowners fail to or are simply unable to fulfill all of their related obligations. A homeowner member of a community association often defaults on their mortgage when they fail to repay the lender, which generally violates the terms of the mortgage. Read the […]
Who is Responsible for Paying Assessments During and After a Mortgage Foreclosure? (MN)
We live in uncertain times. Personal financial situations can be fluid. Sometimes homeowners fail to or are simply unable to fulfill all of their related obligations. A homeowner member of a community association often defaults on their mortgage when they fail to repay the lender, which generally violates the terms of the mortgage. In the […]
What Your HOA Needs to Know About Assessment Payments in Arizona
Homeowners’ Associations carry a great deal of responsibility when it comes to maintaining the community. HOAs are often required by their governing documents to perform many actions, which may include maintaining insurance policies, paying for water or sewer charges, maintaining landscaping, caring for community facilities such as pools, playgrounds or golf courses, repairing roofing damages, […]
Florida Senate Bill 56: Changes to Florida’s Condominium Association and Homeowners’ Association Collections Procedures
On July 1, 2021, Senate Bill 56 went into effect along with Senate Bill 630. While both bills affect the laws governing Florida condominium and homeowners’ associations, Senate Bill 56, specifically, changed the collection and notification procedures for these associations. This article provides an overview of how Senate Bill 56 affected the manner in which […]
Receivership: An Alternative Collection Method (CO)
A receivership is the court ordered appointment of a rental manager for a property. The receiver (rental manager) is a disinterested person who manages the rental of the property, collects the rents and disburses the rents according to a court’s orders. The receiver should be experienced and knowledgeable in rental property management.Read the entire article……………………………….
Condo Association Collections: Garnishees May Be Liable for Incorrect Payment (MI)
A published 2020 case from Michigan Court of Appeals makes it clear that a garnishee may be liable for a defendant’s debt, if the garnishee does not withhold the proper amount of payments. A garnishee is defined as “one who has property or money in his possession belonging to the defendant, so that the assets […]
May an existing HOA’s notice of lien secure amounts accruing after recording the lien?
Facts: An owner falls behind on homeowners’ association (HOA) dues owed on their unit. The HOA records a notice of lien against the unit. Later, the HOA records an amendment to the notice. Both the notice and the amendment include unpaid assessments and interest accruing after the date of the notice. Read the entire article……………………………….
Washington Associations: Collections Update
Recently, there have been two major changes in Washington law that impact association collections. On July 13, 2021, the Washington Governor rescinded Proclamation 20-51 effective as of 11:59 p.m. on July 24, 2021. This means that beginning July 25, 2021, Washington associations may resume assessing late fees and interest on delinquent accounts. Read the entire […]
9th Cir. Holds Mortgagee May Challenge HOA Foreclosure Sale That Violates Bankruptcy Automatic Stay (NV)
The U.S. Court of Appeals for the Ninth Circuit recently reversed a trial court’s order granting summary judgment in favor of the buyer at a homeowners association’s non-judicial foreclosure sale that was conducted in violation of the automatic stay in the borrower’s bankruptcy, and against a mortgagee whose interest in the foreclosed property would have […]
HOA Fee Discounts: Should They Be Given?
Many HOA boards struggle to collect fees and consider giving discounts as a way to encourage on-time payments. But, are HOA fee discounts even a good idea? Read the entire article……………………………….
Legal Actions Associations Can Take if an Owner Does Not Pay Assessments
Community Associations, including condominium and homeowners’ associations, have specific responsibilities to their owners to ensure that budgets are met and maintenance and operation services are performed. For an association to be able to achieve these goals, owners must pay their assessments in full, and on time. When owners fail to fully or timely pay, the […]
HOA Collection Agency: Does Your Association Need One?
Not all members of a homeowners association pay their dues on time or even at all. But, when push comes to shove, is hiring an HOA collection agency really the best option? Read the entire article……………………………….
New Requirements for Collection of Delinquent Assessments (FL)
The Florida Legislature has revised the procedures for collecting delinquent assessments, which add additional steps and delays for the owner to pay before legal action can commence and/or attorney’s fees can be recovered. Senate Bill 56 has revised Sections 718.116 and 718.121 for condominiums; 719.108 for cooperatives; and, Section 720.3085 for homeowners’ associations. With these […]
Changes to Community Association Collections Procedures Take Effect on July 1 (FL)
As we reported earlier this month, Senate Bill 56 was signed into law and will go into effect on July 1, 2021. The new law makes changes to the notice requirements of foreclosure actions for condominiums. Specifically, the changes require associations to send a notice to owners of unpaid assessments before an account is sent […]
New Requirements for Collection of Delinquent Assessments (FL)
The Florida Legislature has revised the procedures for collecting delinquent assessments, which add additional steps and delays for the owner to pay before legal action can commence and/or attorney’s fees can be recovered. Senate Bill 56 has revised Sections 718.116 and 718.121 for condominiums; 719.108 for cooperatives; and, Section 720.3085 for homeowners’ associations. With these […]
9th Circuit reverses ruling in FDCPA case (AZ)
On June 8, the U.S. Court of Appeals for the Ninth Circuit overturned a district court’s finding that an obligation for a rental property cannot be “primarily consumer in nature” under the FDCPA. The plaintiff and his wife purchased two properties in the same community in Arizona. The plaintiff and his wife claimed that they […]
New Foreclosure Requirements for Community Associations (WA)
The Legislature adopted new restrictions on all community associations’ ability to foreclose on homes for delinquent assessments. These restrictions are found in HB 1482. Read the entire article……………………………….
Australia: Other Ways with Overdue Strata Levies
Unpaid strata levies have bedeviled strata buildings, committees, and managers since the second quarter of the first strata building. But, given the unique nature and characteristics of strata buildings, strata levies, and, strata owner obligations, maybe we’ve been looking at this problem from the wrong perspective. Read the entire article……………………………….
Condominiums, Homeowners’ Associations and Bankruptcy: The Automatic Stay
In the last installment of the series, I went through some of the terms that Associations need to know when a Unit Owner files for Bankruptcy. This edition will talk about the “Automatic Stay” and how it affects Creditors like an Association. The first thing to remember is that Bankruptcy is a way to allow […]
Lessons Learned from 5th DCA’s Overturned Condominium Foreclosure (FL)
Florida’s Fifth District Court of Appeals (“5th DCA”) reversed a condominium association’s final judgment of foreclosure in the recent decision of Rajabi v. Villas at Lakeside Condominium Association, Inc., 45 Fla. L. Weekly D2543a (Fla. November 13, 2020) citing two fatal errors. First, the association misapplied the owner’s payments in breach of Fla. Stat. Section […]
Oregon Supreme Court Smacks Down Lending Practices That Hurt Community Associations
During the last real estate meltdown one of the biggest problems was that banks who financed purchases of condominiums were not foreclosing and in essence leaving the community association “hanging out to dry.” The State of Oregon addressed these dirty lending practices with some powerful legislation. Read the entire article……………………………….
Condominiums, Homeowners’ Associations and Bankruptcy: What is an “Automatic Stay” and Other Terms You Need to Know (PA)
In the last installment of this series, I explained that Bankruptcy is a federal law designed to help people who owe money get a fresh start. In this part, I want to explain some terms that are helpful to remember. These are going to be the way that I think of the terms – in […]
NC Appellate Case: Executive Office Park of Durham Association, Inc. v Rock (Older Condo Collections)
Today, Tuesday, May 18, 2021, the NC Court of Appeals issued its decision in Executive Office Park of Durham Association, Inc. v. Rock. The decision may impact collections in older condominiums, and is a “published” decision. That means the decision is controlling legal authority and can be cited in other cases. Read the entire article……………………………….
Do Scrivenor’s Errors Invalidate an HOA Claim of Lien
In Pash v. Mahogany Way Homeowners Association, Inc., Case No. 4D19-3367 (Fla. 4th DCA January 27, 2021), Florida’s Fourth District Court of Appeal recently addressed whether a claim of lien is valid and enforceable if it contained an error in the amount due for unpaid assessments. Read the entire article……………………………….
9th Circuit: Federal Foreclosure Bar preempts Nevada HOA law, maintaining Fannie Deed of Trust
On May 5, the U.S. Court of Appeals for the Ninth Circuit affirmed summary judgment in favor of a mortgage servicer in an action asserting claims arising from a homeowners’ association’s (HOA) nonjudicial foreclosure on real property in Nevada. Read the entire article……………………………….
The Law Q&A | Opening the door for condominium evictions (IL)
Can a condominium board of directors legally kick you out of possession of your condo for your failure to pay dues owed under the condo association’s bylaws or rules? It sure can. Read the Q&A…………………………………
Ruling Illustrates Perils in Foreclosures of Noncompliance With Documents, Miscalculating Claim of Lien (FL)
The article…….. discusses a recent ruling by the state’s Fourth District Court of Appeal that highlights not only the significance of associations complying with the provisions of their governing documents in foreclosures, but also the implications of a mistake in the calculation of the “assessment amount due” in determining the ultimate validity of an association’s […]
Condominiums, Homeowners’ Associations and Bankruptcy: What is Bankruptcy? (PA)
This is the statement that comes at the very top of the page for the United States Bankruptcy Courts. Every accountant and attorney who has ever taken a class on Bankruptcy has heard this said in the first five minutes of the first day of class. Read the entire article……………………………….
Payment Plan Offer Letters & Top Pitfalls We’re Seeing (CO)
Back in 2013, HB-1276 was adopted in the Colorado legislature, which required an overhaul of Collection Policies and pre-collection procedures. That change took effect on January 1, 2014. Now that it’s been 7 years and several new laws that impact Associations later, it’s easy to lose track of the details. We’ve seen a trend of […]
Right Now Foreclosure is an Effective Tool for Collection of Delinquent Assessments (AZ)
Some Arizona associations are currently facing the challenge of dealing with owners who are habitually behind on their assessment payments. Sometimes these owners don’t remit payment for several years, and, some owners withhold assessments for months until they are finally contacted by the association. Read the entire article……………………………….
What Are the Requirements to File a Condo Association Lien under the Michigan Condominium Act?
While collecting delinquent condo dues is never really fun for a board of directors, it is essential for any well-run condominium association. One of the most common ways to collect delinquent condo dues is to place a lien for unpaid condo assessments on a co-owner’s unit. If the co-owner fails to pay the delinquent condo […]
9th Cir. Holds Mortgage-Savings Clause Not Enough to Undo HOA’s Foreclosure Sale
The U.S. Court of Appeals for the Ninth Circuit recently affirmed a trial court’s grant of summary judgment in favor of the defendant homeowners association in an action brought by the plaintiff mortgagee seeking to set aside the foreclosure sale of real property in Nevada. Read the entire article……………………………….
What Do You Mean I Can’t Place the List of Delinquent Homeowners on the Clubhouse Door? (NC)
Whether you are a board member or a property manager for a community association (“Association”), you have probably dealt with owners that fail to pay their assessments, and whose accounts need to be referred for collection. Read the entire article……………………………….
The correlation between collection rates, HOA culture (ID)
Homeowners association collection rates might be unsettling to those who believe they are exempt to pay or feel rules don’t apply to them. Most, however, do the right thing and do understand the concept of community living. Those few who buck the system, unfortunately, play a significant influence on its culture, according to a recent […]
Best Practices in Transferring Collections to Attorneys (CO)
When notices from the H.O.A. prove unsuccessful in recovering delinquent assessments, transferring collections to a law firm is likely the next step. However, there is a prerequisite that must be fulfilled prior to the transfer, and there are certain documents and information that should be sent to the law firm in order to help solve […]
“They Put Me Through Hell,” Says Homeowner After Contentious Battle with HOA, $33k Settlement (FL)
Community association collections of monthly dues and other monetary obligations from unit owners have been strained by the Covid-19 pandemic. Given that many families are now struggling with lost work and businesses, some associations have cut back on expenses wherever possible and carefully considered their collections options with debtor owners. Read the article………………………………………
Assessment Collections: Debt Collection Licensing Requirements under SB 908 (CA)
If debt collection was not already exciting enough, effective January 1, 2022, debt collectors will now need to obtain licenses due to SB 908. A “debt collector” is defined in the Rosenthal Act, and includes anyone who, in the ordinary course of business, regularly collects a debt on behalf of themselves or another party. Collection […]
Bankruptcy Basics for HOAs and Condominium Associations (GA)
With many Americans continuing to suffer financially from the pandemic, homeowner and condominium associations face the potential of their members facing bankruptcy as a financial lifeline. Knowing the basics about what homeowner bankruptcies mean to community associations is critical for every board of directors. Understanding the basics of the automatic stay, splitting the owner’s account, […]
Oregon Supreme Court Holds that Condo Association Takes Priority over Lender
The Oregon Supreme Court recently held that a condo association’s lien for unpaid assessments took priority over a bank’s lien because the bank failed to initiate foreclosure proceedings within 90 days of the condo association’s notice concerning a condo owner’s default. Read the article……………………………………..
Bankruptcy Basics for HOAs and Condominium Associations (GA)
With many Americans continuing to suffer financially from the pandemic, homeowner and condominium associations face the potential of their members facing bankruptcy as a financial lifeline. Knowing the basics about what homeowner bankruptcies mean to community associations is critical for every board of directors. Understanding the basics of the automatic stay, splitting the owner’s account, […]
Landlords, condo associations sue to end ban on eviction writs in Miami-Dade (FL)
A group of Miami-Dade County landlords, condo associations and others are pushing to end the moratorium on executing residential writs of possession filed during the pandemic. Read the article…………………………………..
Top 3 Worst Collections Limitations You Should Delete From Your Governing Documents (CO)
Last week, we posted a blog about the Top 3 Best Collection Remedies You Should Have In Your Governing Documents. Unfortunately, there are often some limitations in many association’s governing documents that should be removed for more effective collections. Read the article………………………………..
HOAs vs. Mortgage Lenders (NV)
Nevada’s Homeowner’s Associations (HOAs) have won again in their battle with mortgage lenders challenging Nevada’s super-priority lien law, this time in the United States Court of Appeals Ninth Circuit. Read the article…………………………………..