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NC Community Association Legislative Update – Community Association Property Management Act

While most NC General Assembly bill filing deadlines have passed, legislation considered appropriations or finance can be filed through next week. A bill introduced yesterday would, if adopted, significantly impact North Carolina’s HOA/condo associations as well as community managers.  

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Owner Approval for a Construction Defect Lawsuit?

On March 17, 2017, House Bill 17-1279 was introduced and assigned to the State, Veterans, and Military Affairs Committee. The original intent of H.B. 17-1279 was to open the lines of communication between the association board, the association members, and

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Final Version Of Bill To Reduce The Number Of Votes Required To Amend Bylaws Passed With Amendments (MD)

Both houses of the Maryland General Assembly have passed an amended version of legislation that would reduce the number votes required to amend condominium bylaws. As amended, what originated as House Bill 789 would reduce the required percentage vote for

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Grande Pointe residents file suit against DR Horton (FL)

When Chris Smith bought his home in the Grande Pointe neighborhood in Inlet Beach in 2010, he believed he was buying into a neighborhood where all the homes would be a Coastal Cottage architectural style — at least that was

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Lawmakers announce breakthrough on construction defects reform measure (CO)

Lawmakers at the state Capitol say they have finally reached a compromise over a contentious construction defects reform bill that requires a majority of homeowners in a condominium complex — not just the homeowner association board — give consent to

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NC Community Association Legislative Update – April 19, 2017

Several important legislative deadlines have passed in recent weeks. Tuesday, April 4 marked the NC Senate deadline for filing public bills and resolutions. Tuesday, April 11 marked the NC House deadline for filing public bills and resolutions (other than appropriations

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The Legality of Post-Bankruptcy Condo or Homeowner Association Assessments

A recent bankruptcy case illustrates how bankruptcy affects condominium or homeowner’s association assessments. The Bankruptcy Court for the Southern District of Florida ruled that a condominium association was not in contempt when it attempted to collect post-bankruptcy assessments from debtors

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When Can Employer be Liable for Employee Drinking and Driving?

In some cases, employers in California may be liable when their employees are intoxicated and cause accidents. Plaintiffs may be able to sue the employers under a legal doctrine called vicarious liability. Employers may also be liable if they negligently

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Slip and Falls on the Condominium Premises and the Open and Obvious Doctrine

A few years ago, I wrote an article titled “Legal Update: Slip and Fall on the Condominium Premises: Does the Condominium Owe a Statutory Duty to Its Co-owners?” The article centered around a 2015 published decision by the Michigan Court

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Florida Community Association Related Legislative Update 2017

Florida’s 2017 Legislative Session is in full swing. As is our yearly ritual, we have kept a close eye on proposed legislation relating to community associations. As many may recall, all major bills introduced last year affecting community associations fell

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End of the Drought: Law Changes Your HOA Board Needs to Know About (CA)

The California drought has officially been acknowledged as coming to an end. While this is great news for the residents of California, it’s not back to the normal day-to-day management of homeowners association just yet.  Desperate times called for desperate

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Colorado House Bill 1279 stalls over 120-day unit owner election period

With the session more than halfway through, the Colorado Legislature’s 2017 attempts at meaningful construction defect reform may fail again. This year, the Legislature did not attempt a single-bill construction defect overhaul like those that have failed over the last

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PA lawmakers to mull community mediation

Pennsylvania lawmakers will discuss a proposed change Tuesday, to how the state handles disputes within private communities. The state House of Representatives plans to reconsider House Bill 595, which would expand the Attorney General’s power to mediate such cases.  “There

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HOA Harassment Law (CA)

Last year, federal regulations were changed to address harassment and discrimination claims. The changes affect community associations. Even though associations are not housing providers, they are deemed so for the purposes of this statute.  New Law. Effective October 14, 2016,

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Condominium unit owners allege insurance company refuses to pay coverage (WV)

Two Webster County condominium unit owners are suing Nationwide, alleging breach of contract by refusing to pay coverage claims under an insured policy.  Wilma Sue Talbott and William Talbott filed a complaint March 22 in Webster Circuit Court against Nationwide

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Maryland General Assembly Passes Legislation To Allow Reduced Number Of Votes To Amend Condo Bylaws

Both houses of the Maryland General Assembly have passed legislation that would reduce the number votes required to amend condominium bylaws. House Bill 789 was approved unanimously in both the House of Delegates and State Senate. The new law would

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Appeals court upholds constitutionality of lump sum association fee statute (LA)

Homeowners in the Eastover subdivision in New Orleans lost an appeal at the Louisiana Fourth District Circuit Court of Appeal, which found a state statute that facilitated the collection of association dues to be constitutional.  In a March 22 ruling,

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Why Condo Associations Are Sweating After A Judge’s Ruling (HI)

It’s probably going to take years to unravel the legal and financial uncertainty now facing condominium associations and law firms that used nonjudicial foreclosures — private sales without supervision by courts — to collect unpaid maintenance fees or other assessments

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Third Circuit: neighbors who criticized condo residents over emotional support dogs must face civil rights suit

In blog posts and comments, two residents of a Virgin Islands condominium complex criticized two other residents who were (in line with rights prescribed to them under federal law) keeping emotional-support dogs despite a no-dog rule in the complex. Among

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Access to HOA Membership List Must be for a Proper Purpose (CA)

As part of the ongoing management of a homeowners association (“HOA”), the HOA is obligated to prepare and maintain certain “association records,” most of which must be made available for inspection by the HOA’s members. However, the right to inspect

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House of Delegates Passes Amended Version Of Bill To Require Notice to Owners Of Common Element Sales (MD)

The Maryland House of Delegates has passed an amended version of a bill previously approved in the State Senate that would require a condominium council of unit owners to provide at least 30-days notice to all unit owners of any

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Senate Committee Issues Favorable Report On Bill To Preclude Developers From Limiting Condo Owners Claims (MD)

The Maryland Senate Judicial Proceedings Committee has issued a favorable report on legislation, which has already been passed by the House of Delegates, intended to protect condominium owners’ rights with regard to bringing construction defect claims against the project’s developer.

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Through A Condo Owner’s Looking Glass – A Shade Of Green – Or Is That Gray?

In an action applying Florida law, a federal district judge ruled in favor of a Directors and Officers liability insurer, finding that the “insured versus insured” exclusion applied to bar both a defense and coverage of an underlying action. In

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Selective Enforcement and Violations When Installing Hardwood Floors (FL)

Earlier this year the Third District Court of Appeals narrowed two significant unit owner defenses to enforcement actions, selective enforcement and waiver/ estoppel when it decided Laguna Tropical, a Condominium Association, Inc. v. Barnave, Case No. 3D16–1531 (Fla. 3d DCA

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IL App. Court Holds Post-Foreclosure COA Dues Need Not Be Paid Monthly to Extinguish Pre-Foreclosure COA Lien

Reversing a trial court’s ruling in favor of a condominium association and against a mortgagee, the Appellate Court of Illinois, First District, recently held that the Illinois Condominium Property Act’s (“Condo Act”) provision creating a mechanism to extinguish liens for

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Maryland Senate Committee Approves Amendment To Bill Allowing HOAs To Collect Fees For Resale Inspections

The Maryland State Senate has approved, with amendment, a bill previously passed by the House of Delegates. House Bill 34, would give homeowner associations the right to collect a fee relating to inspections during the resale process.    Read the

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Ninth Circuit: Excess Insurers Must Tread Carefully When Rejecting Demands Exceeding Primary Limits

Under California law, a liability insurer has a good faith duty to reasonably settle claims within its policy limits. In Diamond Heights Homeowners Association v. National American Insurance Co., the California Court of Appeal held that where a proposed settlement

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Court of Appeals Upholds Homeowners Association’s Application of Bylaws

The Washington Court of Appeals recently upheld a homeowners association’s interpretation and application of its bylaws in a published opinion. Members of the association challenged its authority to impose membership fees and liens because they claimed that its board of

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New Jersey Superior Court Holds Condominium Association Was Not Entitled to Redeem Tax Sale Certificate on Condominium

The Superior Court of New Jersey, Hudson County, Chancery Division-General Equity Part recently held that a condominium association’s attempt to redeem a tax sale certificate on a condominium on which it held a lien was not valid because it was

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Condo buyers at 1010 Brickell file lawsuits to get their deposits back on three units (FL)

There’s some buyer’s remorse swirling around 1010 Brickell.  A man and a woman who put down 50 percent deposits totaling more than $650,000 on three condo units in the 50-floor luxury tower are trying to get out of their deals,

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Recent Appellate Division Decision Expands Private Party Remedies Under New Jersey Spill Act and Demonstrates Condominium Owners’ Potential for Environmental Liability

The New Jersey Appellate Division’s recent decision in Matejek v. Watson was notable in two respects. First, it provides a private party an order compelling another party to participate in an environmental investigation without proving liability, something not previously allowed

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Insurance Policy Did Not Prevent Association Recovery from Subcontractors for Defective Work

On February 17, the First District Appellate Court issued an opinion regarding the Implied Warranty of Habitability in the case of Sienna Court Condominium Association v. Champion Aluminum Court et al. The opinion involved three separate appeals: the first relating

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Sponsors again delay hearing on bipartisan construction defects bill, say negotiations ongoing (CO)

Lawmakers late Tuesday pushed back a scheduled Wednesday committee hearing on a bipartisan construction defects reform bill, saying negotiations involving critical issues are still unresolved.  Groups representing builders and homeowners have been facing off for years over attempts to rewrite

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Pre-Lien Demands and FDCPA Concerns (CA)

Recovering delinquent assessment debt is one of the more complicated issues that homeowners associations (“HOAs”) face. Fortunately, the Civil Code grants HOAs with significant remedies to recover delinquent assessment debt, including the ability to record assessment liens and to ultimately

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2017 Proposed Legislation Regarding Florida Statutes, Chapter 718 (FL)

In recent legislation, Senate Bills 1258 and 1682 and House Bills 1001 and 1237 seek to amend Florida Statutes, Chapter 718.  Senate Bill 1258 and House Bill 1001 seek to fine directors who knowingly violate any Association bylaw or statutes.

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State Senate Passes Bill Requiring Notice To Owners Of Common Element Sales (MD)

By a vote of 47-0, the Maryland State Senate passed Senate Bill 809, which would require a condominium council of unit owners to provide at least 30-days notice to all unit owners of any sale, including a tax sale, of

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Ninth Circuit: Excess Insurers Must Tread Carefully When Rejecting Demands Exceeding Primary Limits (CA)

Under California law, a liability insurer has a good faith duty to reasonably settle claims within its policy limits. In Diamond Heights Homeowners Association v. National American Insurance Co., the California Court of Appeal held that where a proposed settlement

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Construction Defects and Insurance Coverage: When Is the Duty to Defend Triggered?

In Florida, an insurance company may have a duty to defend and/or indemnify its insured. The insurance company’s duty to defend its insured (as in defending the insured in a lawsuit) is broader than its duty to indemnify (as in

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Can Blogging Violate the Fair Housing Act?–Revock v. Cowpet Bay West Condo Ass’n

This case is a collision between dogs as emotional support animals and a “no dogs” condominium association rule. The civil rights implications of a “no pets” rule are pretty obvious; such a rule can exclude the disabled. At the same

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HB 4446 allows Michigan Condominium Associations to enforce restrictions and defend lawsuits (MI)

On March 30, 2017, Representative Klint Kesto introduced House Bill 4446, which would modify the Michigan Condominium Act, MCL 559.101, et. seq. House Bill 4446 (2017) would amend MCL 559.160, MCL 559.207 and MCL 559.215 as follows:   (See article)

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NC Community Association Legislative Update – Fidelity Coverage & Audits

While there are still several weeks for legislative proposals to be introduced in the General Assembly, one bill introduced yesterday (March 29) would directly impact North Carolina condominium and homeowner associations: Senate Bill 491: HOA/Condo Crime & Fidelity Insurance Policies

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Does a New Law Override CC&R Restrictions on “Granny Units? (CA)

Several board members are concerned about changes to the California laws (link is external) that regulate “Accessory Dwelling Units” (sometimes called “Granny Units”). Property owners sometimes add tiny homes or modify their garages for rental income or to provide low-cost

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Chapter 13 Plan, Not Texas Law, Governs HOA Payments

A Texas homeowners association that applied Chapter 13 plan payments first to pre-bankruptcy delinquencies, leading to improper late fees, penalties and interest, was penalized by a bankruptcy court March 27 ( In re Daulton , 2017 BL 96621, Bankr. S.D.

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Democratic lawmakers, business leaders reach impasse on construction defects legislation (CO)

Construction-defects reform legislation hit a snag as frustrated Democrats accused a group of business leaders and affordable housing advocates of throwing up roadblocks to a bipartisan bill that had been set for its first hearing Wednesday, but a spokesman for

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Paris Meadows, LLC v City of Kentwood: Objecting to the Taxation of Common Elements (MI)

In Michigan the question of whether the common elements of a condominium are taxable appears to be well-settled. In Paris Meadows, LLC v City of Kentwood, 287 Mich App 136; 783 NW2d 133 (2010), the Michigan Court of Appeals held

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House of Delegates Passes Bill To Preclude Condo Developers From Limiting Owners Construction Defect Claims (MD)

By a vote of 136-0, the Maryland House of Delegates approved a bill to protect condominium owners’ rights with regard to bringing construction defect claims against the project’s developer. House Bill 676 would prevent condominium developers from limiting the ability

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Don’t forget your Declaration: Appeals Court confirms necessity of the Declaration and Covenants in collection actions (IL)

The First District Appellate Court confirmed that Associations must be careful to enter their Declaration and Covenants regarding Assessment default into the record in a lawsuit to collect Assessments. In Blackstone Condominium Association v. Speights-Carnegie, (Feb. 3, 2017), the Appellate

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After the Spanish Court case: Limits of Board authority to maintain collection action highlighted in recent appellate court opinion

In the recent case of 4934 Forrestville Condominium Association v. McKinley, the First District Appellate Court held in the context of an Association’s action to collect delinquent assessments under the Illinois Forcible Entry and Detainer Act, that a Unit Owner’s

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House of Delegates Passes Legislation Requiring Periodic Reserve Studies (MD)

By a vote of 135-1, the Maryland House of Delegates has passed House Bill 651, which would require condominiums and homeowner associations to conduct reserve studies of the common elements and common areas. As discussed in an earlier post, the

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Eagle Mountain Ranches HOA lawsuit decision of $14M in damages brings both sides to the table (UT)

When the Eagle Mountain Ranches Master Homeowner’s Association lost the lawsuit brought against it in March, many residents belonging to the association cheered.  The lawsuit, filed by the Willow Springs, Cold Springs and Rock Creek HOAs, was decided in their

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