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Supreme Court Leaves Standing Wells Fargo Win on Nevada Lien Law

The U.S. Supreme Court left standing a federal appeals court ruling that could help Wells Fargo and other major banks affected by a Nevada statute covering homeowners’ association liens ( Bourne Valley Court Trust v. Wells Fargo Bank N.A. ,

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Scott cites London fire in vetoing condo bill (FL)

Pointing to a high-rise fire in London that killed dozens of residents, Gov. Rick Scott late Monday vetoed a bill that would have eased fire-protection requirements for older condominium buildings in Florida.  The bill (HB 653), which passed the Legislature

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Court rules that Michigan HOA cannot collect assessments after restrictive covenant expires

In Deghetto v Beaumont’s Seven Harbors White and Duck Lack Association, issued June 22, 2017 (Docket No. 330972) (Unpublished Opinion), the Michigan Court of Appeals recently ruled that a homeowners’ association could not continue to collect assessments after the restrictive

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Community Associations: New Estoppel Rules (FL)

Beginning July 1, 2017, Florida community associations will have to comply with more burdensome estoppel requirements.  The 2017 Florida legislature just recently passed a new law that will require associations to comply with a request for an estoppel certificate within

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Condo liability law loosened (MN)

A homeowners association is suing the developer, builder and manager of the Superior Vista condominiums, among others, claiming the Mesaba Avenue complex was not properly built and ought to be repaired under warranty.  “Many areas of the building were not

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State orders Poinciana HOA to throw out election (FL)

As state arbitrator on Friday sided with a homeowner who challenged the way Poinciana’s homeowners association, one of the largest in the state, held its election of board members.  The arbitrator threw out the Association of Poinciana Villages’ results from

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Governor Hogan Signs Law To Require Notice To Homeowners Of Sales Of A Common Element Or Common Area

Maryland Governor, Larry Hogan, has signed into law legislation passed in the General Assembly that requires a condominium council of unit owners or a homeowners association to provide at least 30-days notice to all owners of any sale, including a

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Will new laws protect condo owners from apartment conversions and rogue associations? (FL)

….Florida lawmakers this spring unanimously approved a bill that requires condo associations to give owners better access to records and imposes criminal penalties for electoral fraud, theft of funds and conflicts of interest. The measure would become law July 1

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Miami judge partially derails homeowners’ lawsuit against Privé at Island Estates developers (FL)

Miami-Dade Circuit Judge William Thomas handed the developers of Privé at Island Estates a victory this week in their tumultuous legal war with neighboring homeowners.  Thomas ruled Tuesday that the statute of limitations had long expired for the Island Estates

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NC Community Association Legislative Update – June 22, 2017

I’m asked frequently about the status of proposals filed this session in the General Assembly that, if adopted, would directly impact North Carolina HOAs and condominium associations. The “crossover deadline” (the date on which a bill must have cleared one

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What Should Condominium Associations Do After Cypress Point? (NJ)

It has been several months since the New Jersey Supreme Court decided Cypress Point Condo Ass’n v. Adria Towers, LLC.  The issue in Cypress Point was whether rain water damage caused by a subcontractor’s faulty workmanship constituted “property damage” caused

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Legislation Enacted To Permit HOAs To Collect Resale Inspection Fees (MD)

Beginning in October, Maryland homeowner associations will have the right to collect a fee relating to inspections during the resale process. What had been House Bill 34 in the 2017 session of the General Assembly, and has now been enacted,

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Mountain Law: Cracking Colorado’s condo conundrum

In a July 1, 2015, article titled, “Construction defect reform advocates lose at state house, then win in court,” I wrote about Colorado condominium developers who lost an effort to pass legislation that would have reformed construction defect law but

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Bills Would Impose Time Limits on Co-op Purchase Applications (NY)

There are currently half a dozen pieces of legislation under consideration in New York City and Albany that could change the way co-op apartments get bought and sold. Co-op advocates are not pleased with any of them. Some of these

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Assembly Judiciary Committee Approves Wieckowski Bill (CA)

A bill to clarify that the political speech rights of residents in common interest developments cannot be infringed upon by homeowner association (HOA) boards unanimously passed the Assembly Judiciary Committee this morning. SB 407, authored by Sen. Bob Wieckowski (D-Fremont)

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Legislative Update: Condominium Terminations Bill Signed Into Law (FL)

Senate Bill 1520 was signed by Governor Rick Scott on June 16, 2017. The following is a summary of the bill, which will take effect on July 1, 2017:  SB 1520 amends 718.117, Florida Statutes, regarding the optional termination of

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‘Test Case’: How Attorneys Defeated a $10 Million Class Action Over Condo Costs (FL)

Putting on “a numbers case” helped the owners of the Hilton Fort Lauderdale Beach condo hotel defeat a $10 million class action lawsuit by residents fuming over a multimillion-dollar spike in maintenance fees.  Q Club Hotel LLC owns the property

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District of Columbia Condominium Law Amended To Require New Owner Notices

The District of Columbia Condominium Act has been amended to require new notices and information be provided to condominium purchasers and unit owners.  When a condominium advises the owner of its intention to take legal action to collect any past

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Legislative Update: New Laws Affecting Florida Community Associations

When a bill passes the Florida Legislature and is sent to the Governor for consideration, the Governor has 15 days from which to sign the bill into law, veto it, or do neither (in which case the bill will automatically

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Issues That Cross State Lines: A Look at Condo Legislation Trends

When it comes to legislation and legal issues that apply to condo associations, co-ops, and other multifamily housing models, the focus is often local—city ordinances, council meetings, and so forth – but there are judgments handed down and bills passed

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Liability & the Law: Reducing Liabilities in Co-op & Condo Communities

It’s no secret that insurance is a necessity for any building or association. Nevertheless, the expense of coverage means that issues of liability and risk are all too often examined only after problems have occurred. Usually, insurance holders address matters

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Don’t estoppel believing: Now it’s a law

After years of unsuccessfully fighting its way through the Legislature, the estoppel bill is now law.  Gov. Rick Scott Tuesday signed the measure (SB 398), which overhauls the legal process of estoppel letters. It goes into effect July 1.  “We

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Condominium Association Cannot Collect Unpaid Fees from Lender’s Assignee (NJ)

On June 6, 2017, the New Jersey Appellate Division ruled that a foreclosing mortgagee is not liable for unpaid condominium maintenance fees simply because it winterized the unit and changed the locks.  In the published decision Woodlands Community Association Inc.

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Business Judgment Rule Doesn’t Apply When the Board Acts Outside its Authority

Is an HOA Board of Directors (“Board”) entitled to protection under the Business Judgment Rule (“BJR”) when it applies an unambiguous view restriction contained in the governing documents in a manner other than written?    Read the article…………….

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Elders liable for $10,000 in legal fees to Running Y (OR)

A costly legal dispute over homeowners’ association payments at Running Y Ranch has concluded with an award of $10,000 in attorney’s fees, far less than $145,000 sought by plaintiffs.  In a letter dated Friday, Judge Roxanne Osborne said residents Kenneth

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Spartan Building alleges condo association never paid for work completed (LA)

A building company is seeking damages of more than $300,000 for work completed.  Spartan Building Corp. filed a suit May 31 against Chardonnay Village Condominium Association Inc. in the 24th Judicial District Court alleging an open account.    Read the

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NJ App Div Holds Foreclosing Lender Who Simply Winterized and Secured a Condo Is Not a Mortgagee in Possession and Not Responsible for Condo Fees

In a noteworthy decision for New Jersey lenders approved for publication, the New Jersey Appellate Division recently held that a lender who simply winterizes and secures an abandoned property in foreclosure is not deemed a mortgagee in possession subject to

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“Offensive, Rude, Annoying, Mean-Spirited & Ill-Advised” Blog Posts Aren’t Defamatory–Milazzo v. Connolly (IL)

This is another case study of the overly litigious world of homeowners’ associations. For example, a few months ago, I blogged about another lawsuit involving a condo association, its no-pet policy, and a string of vitriolic blog posts over residents

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Status of Community Association Bills and CALL to Action on HB 653, Relating to Community Associations (FL)

As of this writing, we are still waiting for the two main community association bills, HB 653 and HB 1237, to be sent to Governor Rick Scott. Once a bill is sent to him, he will have fifteen (15) days

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Does a Foreclosure Complaint Prevent a Community Association from Enforcing Rules and Regulations? (NJ)

A New Jersey Chancery Court was called upon to rule whether the filing of a foreclosure complaint by a condominium association prevents the association from taking other actions to enforce its rules and regulations as they would apply to the

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Supreme Court Rules in Vallagio: No Amendment for You! (CO)

This week, the Colorado Supreme Court announced Vallagio at Inverness Residential Condo. Ass’n v. Metro. Homes, Inc., 2017 CO 69, holding (1) the Colorado Common Interest Ownership Act (“CCIOA”) permits a developer–declarant to retain the right of consent to amend

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Community Association 2017 Legislative Guide: Part I (FL)

The Florida legislature passed several community association related bills this legislative session that are set to become law on July 1, 2017, unless vetoed by Florida’s Governor Scott. This is the first of a three-part series summarizing those bills.  

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Supreme Court Affirms Declarant Consent Required for Removal of Arbitration Provision for Construction Defect Claims

On June 5, 2017, the Colorado Supreme Court issued its ruling in Vallagio at Inverness Residential Condominium Ass’n, Inc. v. Metropolitan Homes, Inc. et al. (Supreme Court Case No. 15SC508).  The Supreme Court affirmed the court of appeals and ruled:

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Injunction Against Condo Owner Illustrates Just How Ugly Things Can Get

The old adage “don’t let one bad apple spoil the bunch” definitely applies in community association living. Unfortunately, conflicts between boards of directors and recalcitrant unit owners are par for the course in associations, so it is incumbent on the

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Waiver of Attorney-Client Privilege in Bad Faith Litigation (SC)

The United States District Court has confirmed in a recent decision that in most circumstances, the attorney-client privilege will be waived in bad faith litigation in South Carolina. In Contravest, Inc. v. Mt. Hawley Ins. Co., the district court was

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Summary of HB 653, Impacting Condominiums, Cooperatives, and Homeowners’ Associations (FL)

HB 653 (SB 744), sponsored by Representative Moraitis, passed the Florida Legislature but as of today, it has not yet been sent to the Governor for consideration. When a bill is sent to the Governor, he has fifteen (15) days

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Supreme Court makes landmark ruling for condo developers (CO)

The Colorado Supreme Court on Monday upheld the right of condominium developers to require disputes go to binding arbitration, essentially putting into state law a contentious provision that construction-defects reform advocates said was the key to reviving a largely defunct

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Colorado Supreme Court gives a boost to builders in construction defects battles

The Colorado Supreme Court gave builders a reason to cheer Monday, ruling that a homeowners association in Centennial was wrong to ignore a requirement that it first get consent from the developer before changing the way disputes over construction defects

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HOA Fee Award Reversed Because HOA Elections Win Did Not Qualify For Award Under Frivolous Fee-Shifting Standard

Thompson v. Lakewood Hills Homeowners’ Assn., Case Nos. A144674/A146081 (1st Dist., Div. 5 May 19, 2017) (unpublished) highlights how the basis for fee entitlement can drive the result in a case. In a word, HOA was awarded fees/costs by the

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Amendment to SB258 would hurt HOAs (NV)

Members of the Assembly and Senate are trying to pass an amendment to SB258 that would allow delinquent owners to sue their homeowners associations for foreclosing on unpaid assessments.  The amendment, to be decided in conference committee with no public

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The 2017 Fla. Legislature Returns To CondoLand

Once again, after a one-year hiatus, the Florida Legislature has produced several condominium bills. Typically, the Legislature passes a single condominium bill into which other approved bills have been merged. This year, perhaps to make up for the failure to

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Another Illinois Case Decides When an Asset Purchaser is Responsible for Liabilities as a Mere Continuation of the Seller

In our Risk Management Update of December 23, 2015, we discussed an Illinois case that had to decide when a successor entity purchasing the assets of its predecessor became liable for the debts of the predecessor. (“Mere Continuation” Doctrine Applied

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Minnesota amends its construction defect laws

Earlier this month we told you that (click here to see the story) about an effort to amend Minnesota’s construction-defect laws, which are among the most stringent in the nation, with a raft of amendments aimed at making it more

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Community Association Board Members Can be Considered Limited Purpose Public Figures in Defamation Cases

There is a growing body of case law around the country which would make it more difficult for an allegedly defamed community association board member to successfully pursue his or her day in court. Is a community association board member

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What NC Community Associations Need to Know about Fair Debt Collection

Nearly all Community Associations (“Associations”) must cope with owners who fail or refuse to pay their periodic assessments (also known as “Dues”). When this happens, the Association, typically acting through its property manager, may first attempt to collect the delinquent

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Online Harassment and Risk of Liability Under Fair Housing Laws

My colleagues and I have blogged about the importance of recognizing requests for reasonable accommodations/modifications, carefully and thoughtfully considering them, and properly responding in a timely manner. We like to think our posts on this topic have helped a few

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NJ S181-Act Concerning Snowplow/De-Icing Service Contracts in Community Associations

The New Jersey state Senate passed the bill 181, authored by Senator Christopher Bateman(Hunterdon, Mercer, Middlesex and Somerset), by a vote of 35-0 on January 23, 2017.  The bill, if passed by the Assembly and signed into law by the

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Short-Term Rentals Not a Violation of Rules Against Business, Non-Residential Uses

In the case of Santa Monica Beach Property Owners Association v. David Acord, the association appealed a lower court’s order dismissing its action against the homeowners who rented their homes on a short-term basis. The association’s argument in both the

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Two Bills That Affect Maryland Foreclosure Notices

The Maryland legislature has passed House Bill 26 (“HB26”) which amends the foreclosure notice provisions contained in Maryland Real Property Article 7-105.2. HB26, slated to take effect on October 1, 2017, provides that notice of a foreclosure sale must be

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Legislature says homeowners associations can’t bar rooftop solar (OR)

Homeowners associations won’t be able to deny Oregonians their right to go solar under a bill that passed the Legislature on Wednesday.  The bill, HB 2111, which sailed through the House more than a month ago on a 56-3 vote,

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