The unit owners in your condominium have been noticed for deposition in the pending transition litigation. Now they have come to you, the property management team, with questions. What should they expect at the deposition? What kinds of questions can they be asked? Did they do something wrong? Read the article……………………………………..
Ohio wins judgment against Norwood condo developer who left town with deposits (OH)
Ohio’s Attorney General has won a $93,750 judgment against a Norwood condo developer who left town without refunding deposits for his unfinished project. Read the article……………………………………….
Vancouver condo developer sentenced to six years in U.S. prison for real estate fraud (BC)
Vancouver condo developer Mark John Chandler is “a financial predator,” a U.S. Federal Court judge said Monday while handing down a six-year sentence for a real estate investment fraud. Chandler swindled 12 U.S. investors out of $1.7 million more than a decade ago, taking their money for a purported Los Angeles condo project that never […]
SD House: 40 years for real estate covenants
Restrictive covenants on real estate in South Dakota should last longer but shouldn’t be forever, the state House of Representatives said Thursday. House members voted 55-14 to extend them to 40 years. They’ve been set at 25 years since 1925. HB 1084 now goes to the Senate for a second hearing. Read the article……………………………….
CAI Law Seminar 2021 (an insurance-related takeaway)
One of my favorite events put on by Community Associations Institute (CAI) National every year is the Law Seminar. Here are a couple of take-aways that we at Berg Insurance Agency think you might find interesting: Read the article…………………………………
The future of ADR for Colorado Associations
The recent ADR survey that the Legislation Action Committee circulated to CAI-RMC membership led to questions about alternative dispute resolution. The survey was designed to obtain member feedback concerning potential legislation related to ADR for community disputes because of the belief that ADR for these disputes will be legislated one way or the other. In […]
Last Week at the Legislature (AZ)
The Arizona Legislature has been busy, with a total of 1,350 bills having been introduced as of last week, several of which may potentially impact community associations. Despite a spike in COVID cases among staff, and potentially members, the Legislature expects to continue moving forward virtually. Read the article…………………………….
Ordinance would spell out procedures for allowing community improvement districts (MS:
A new ordinance could help spell out how the city of Jackson implements community improvement districts (CIDs)……CIDs are special taxing districts. Property owners within them pay special assessments along with their annual property taxes, which are then set aside to fund public improvements within them. Read the article………………………………
Assessing a Person’s Request to Have an Animal as a Reasonable Accommodation Under the Fair Housing Act
This notice explains certain obligations of housing providers under the Fair Housing Act (FHA) with respect to animals that individuals with disabilities may request as reasonable accommodations. Read the HUD Document (PDF)…………………………….
New Laws Regarding Emotional Support Animals (FL)
Other than political debate, perhaps nothing else evokes more of an “emotional” response than the issue of emotional support animals in a no pet community. While this is not a new issue, and has been discussed many times in this forum and others, new laws in Florida may affect how your community may handle a […]
Won’t You Be My Neighbor? Fair Housing in Your Community Association (PA)
When a board member or community manager hears the phrase “fair housing”, many thoughts come to mind regarding what this means, and how it may impact their association, but, more often than not, their perceptions are based on historical misinformation passed on to them by others who themselves did not properly understand fair housing. The […]
7th Cir. Holds Plaintiff’s Annoyance, Infuriation, Aggravation, Indignation Not Enough for Standing to Sue
The U.S. Court of Appeals for the Seventh Circuit recently held that a debt collection letter that references a legal remedy that could be pursued but is ultimately not pursued is not itself a sufficient basis to confer Article III standing Read the article…………………………………….
Neighbor Disputes within Homeowners Associations: When should the HOA intervene?
Disputes between neighbors in a homeowners association inevitably arise. HOA board members often face difficult decisions in deciding whether to intervene in neighbor disputes that do not directly involve the HOA. If a violation of the restrictive covenants does not impact all owners, many HOA boards find it difficult to justify spending time and money […]
Family of 3 killed in Encinitas bluff collapse say lawsuit could spur ‘positive change’ (CA)
A lawsuit filed against the city of Encinitas, the state and a local homeowners’ association following a deadly 2019 bluff collapse will move ahead after a recent motion to dismiss the case was denied. Read the article………………………………….
2020 Community Association Legislation (CO)
2020 was such an action-packed year that you may have missed some of the bills that passed during the 2020 Colorado legislative session. As a quick overview, here are the bills that may have an impact on the future of Colorado community associations. Read the article……………………………..
New California Law has huge impact on HOA Rental Restrictions
Despite fierce opposition, including over 5,000 constituents personally expressing opposition to the bill, California Governor Newsom signed Assembly Bill 3182 into law on September 29, 2020. It creates a new Civil Code Section 4741 which voids rental limits below 25% of the members. Per Civil Code 4741, a condominium or stock cooperative association may not […]
Case Law Breakdown: Waiver in Maryland
Covenants that exist in homeowners associations and condominiums are nothing more than contracts. They bind the owner and the association, and require both sides to do or refrain from doing certain things. Because they are contracts, certain rules of contract interpretation apply. These include the concept of waiver: the party to a contract can nullify […]
$125,000 settlement to Gold Coast unit owner ends dispute over $500 fine (IL)
A condominium association in the Gold Coast has agreed to pay a unit owner $125,000 to settle seven years of litigation resulting from a $500 fine. 111 East Chestnut Condominium Association claimed the unit owner, Michael Boucher, had violated condo rules that prohibit “obnoxious or offensive activity within the association.” Boucher says the fine was […]
Family can pursue discrimination lawsuit against HOA (IN)
An African American family who claims to have been subjected to race-based harassment, taunts and threats from a neighbor in their Indianapolis subdivision can move forward with their lawsuit after a federal judge denied the homeowners association’s request to toss the case. Read the article………………………………..
Lenders May Still Have to Participate in Foreclosure Mediation in Florida
In response to the mortgage foreclosure crisis, the Supreme Court of Florida established a statewide mandatory mediation program for residential mortgage foreclosures. Due to the mandatory mediation program being largely unsuccessful, the Supreme Court of Florida terminated the program on December 19, 2011. However, lenders should be aware that judges are still able to refer […]
Fannie, Freddie tighten rules for condos in vacation locales
Getting a mortgage for a resort-area condo might become more difficult after Fannie Mae and Freddie Mac moved to tighten rules on buildings with many short-term rentals and hotel-like amenities, some Realtors and bankers say. Read the article……………………………….
A Triple Victory: Defending an Association’s Right to Exercise the Self-Help Provision Contained in Its Governing Documents (IN)
KSN attorneys Kelly Elmore and David Jacuk were recently awarded favorable rulings in Stuart Manor Estates v. John Piper and Anna Piper and two other related matters in Morgan Superior Court 3 (Morgan County, Indiana). Read the article……………………………….
Trial Should Have Proceeded in Absence of Defendant in Civil Case—Appeals Court (CA)
Div. One of the Fourth District Court of Appeal has reversed a default judgment in favor of a homeowner’s association in the case of a defendant who failed to show up for a trial readiness conference, was ordered to show cause why her answer should not be stricken, and was absent from the hearing on […]
Family faces eviction for having too many children buys more time from judge (IN)
The attorney for the property management and the family’s attorney attended the virtual hearing but the Homeowners Association attorney did not. The judge wants the HOA’s attorney to be present at a new hearing in mid-February to explain why they allowed the lease in 2019 and 2020 to be re-signed when it was clear then […]
Florida Changes Registration Requirements for 55+ Communities
As anyone involved with Florida community associations will tell you, trying to keep up with the changes in rules and laws that impact the operation and management of condominium and homeowner associations can seem like a full-time job. Actually, that is our job, and the primary motivation for this article. We know how daunting it […]
Legalized Marijuana & Community Associations (AZ)
During the 2020 General Election, Arizona voters approved Proposition 207, which legalizes and governs the adult use, regulation and taxation of recreational marijuana. On November 30, 2020, the Arizona Secretary of State certified the voters’ approval and the Proposition became the Smart and Safe Arizona Act (the “Act”). Please also note that local (County, City […]
Long Beach Residents Stunned To Learn Of $130 Million Judgment Against City For Revoking Permit On Oceanfront Condos (CA)
Long Beach in Nassau County has been in fiscal trouble for years. Now the popular beachside city has learned it must pay more than $130 million for revoking a permit on oceanfront condos. Read the article………………………………..
Who is the Declarant? And Why Does it Matter? (NC)
When the developer declares land to restrictions described in a “Declaration” for a planned community or a condominium, that developer has the opportunity to reserve certain rights to itself as the “Declarant.” Although there is no requirement that the developer reserve such declarant rights, it is common practice to do so and very unusual for […]
New HOA Management Laws for 2021 (CA)
Ensuring HOA board members are educated and informed about state and local regulations is an important aspect of the value we provide to our clients. Understanding new and upcoming law changes helps homeowners association boards see the whole picture when making decisions and ensures they act within the association’s legal rights. Read the article……………………………………
Court of Appeals rejects county’s appeal on Western Shores case (KY)
The Kentucky Court of Appeals has rejected an appeal from the Calloway County Fiscal Court regarding a lawsuit filed by the Western Shores Property Owners Association, stating that former Judge-Executive Larry Elkins and current and past magistrates named in the suit are not immune from being sued as individuals over unfinished roads in the subdivision. […]
Lawyer Up (FL)
Some boards only engage legal counsel when a situation has become dire. Others are overly cautious and all the attorney at the drop of a hat, but unusually high legal bills often lead to membership scrutiny. Read the article……………………………….
Co-op Board Learns That Emails Can Bite Back (NY)
The brawl begins. Back in 2017, the actors Justin Theroux and his then-wife Jennifer Aniston got approval from their Greenwich Village co-op board to combine their apartment with the newly acquired apartment next door, then embark on a $1 million renovation of the expanded space. But the downstairs neighbors, Norman and Barbara Rescinow, complained about […]
Not a Leg to Stand On: Seventh Circuit Strengthens Standard for Finding Article III Standing
In December 2020, the Seventh Circuit issued no less than six rulings examining and raising the bar for Article III standing in Fair Debt Collection Practices Act (“FDCPA”) suits. The Court has taken a hard stance, refusing to find standing where plaintiff debtors cannot plausibly allege or prove any concrete harm as a result of […]
2020 Illinois Community Association Case Law Summaries
Several changes in 2020 Illinois case law have impacted the management of condominium, homeowner (HOA), and townhome community associations. Below is an amended summary our law firm has compiled with implications of these legal updates. Read the article…………………………………
The Business Judgment Rule: Inapplicable as to Decisions Made Under a Material Conflict of Interest (CA)
Under the Business Judgment Rule, volunteer directors are shielded from liability for decisions made when those decisions are (1) consistent with the director’s duties, (2) made in good faith, and (3) in a manner it believes to be in the best interests of the HOA and its members. (See Lamden v. La Jolla Shores Clubdominium […]
$492,592 Fee Award To HOA And Neighboring Homeowners, Combined, Affirmed On Appeal After Homeowners Lost View Protection Dispute (CA)
Under this category, we have indicated that fee awards can be costly for homeowners and homeowner associations/directors/property managers/neighboring homeowners caught in the middle of “view protection” disputes. The next case is yet another example of that. Read the article……………………………..
The Do’s and Don’ts of Lis Pendens in Florida
A lis pendens is a common tool used in Florida to put third parties on notice of a pending lawsuit against real estate. If filed properly, a lis pendens protects the plaintiff in a lawsuit from any intervening liens on the property filed after the lis pendens. However, property owners may not be able to […]
PALMETTO PLACE IMPRISONMENT LAWSUIT: Condo Owners Fear Property Value Decrease (FL)
Condominium owners in Palmetto Place fear that the lawsuit filed by Steve and Nancy Iscowitz — claiming their key fobs were deactivated when they tested positive for COVID-19 as the condo association sought an emergency order to hold them captive in their unit — will result in reduced property values in the swanky building. Read […]
New NC Executive Order Extends Ability to Hold Electronic Membership Meetings
As one of the last Executive Orders issued in 2020, Governor Cooper has extended the ability of North Carolina associations (including HOAs and condos) to hold virtual membership meetings. Read the article……………………………….
HB 5611: Michigan extends deadline to preserve covenants under the Marketable Record Title Act
The Michigan legislature amended the Marketable Record Title Act, MCL 565.101, et seq, on December 31, 2018, which had the potential to automatically eliminate certain types of restrictive covenants. Fortunately, the Michigan legislature recently amended the Marketable Record Title Act via HB 5611, and extended the time period for a property owner or homeowners association […]
Condominium Material Alteration Issues Can Be Complicated (FL)
Those living in a condominium often differ about how the condominium should look. Owners and their Board of Directors often disagree. Because the purchaser of a condominium often buys for its appearance, Florida’s legislature limits substantial changes to the appearance or what is known as material alterations or additions. Material alterations or additions have been […]
Auburn Woods Homeowners Association V. State Farm General Insurance Company (CA)
No Duty to Defend HOA and Property Manager Under Policy Liability and D&O Coverage Parts For Lawsuits Which Failed to Allege Damages and Did Not Include Property Manager as an Additional Insured Read the article………………………………….
Who Pays for Maintaining Shared Easements Between Multiple Condominium Associations? (MI)
Residential community developments in Michigan often use the rights of use afforded by recorded easements in order to permit the development of communities with multiple underlying individual residential projects. In some cases, a developer may create an overarching project and then record a series of subdivision plats or condominium master deeds over years to finalize […]
Sky Lodge Majority Owner Ordered to Pay $2.3M in Dispute With Fellow Condo Owners (UT)
A Third District Court judge has ruled against Ken Abdalla, the majority owner of the Sky Lodge, ordering him to pay a judgment of over $2.3 million and calling for a foreclosure sale of 30 fractional-share units owned by Abdalla and his affiliates. Abdalla has been embroiled in legal conflicts with his fellow condo owners […]
Cause & Effect: How New Georgia HOA Laws Impact the Holidays
As we look optimistically towards 2021, we remain in awe of the volunteers and professionals who kept community associations functioning through unprecedented times. Community associations and the professionals that they partner with faced more than 16 Executive Orders impacting HOA and condominium association operations and three new Georgia laws passed by the Georgia Legislature during […]
Nonjudicial Foreclosures – Weapon in Cooperative Board’s Arsenal (NY)
Because of the unique form of ownership in cooperative housing corporations, boards have a weapon in its arsenal to enforce shareholder obligations – the nonjudicial foreclosure sale. In cooperatives, owners are shareholders in the cooperative corporation and lessees under a property lease with the cooperative. Because of this ownership structure, proprietary leases contain provisions allowing […]
Federal Judge Removes Rachel Tannenholz From Seven Bridges Lawsuit (FL)
Seven Bridges homeowner Rachel Tannenholz is no longer a defendant in the Federal lawsuit brought by another homeowner against her and the Seven Bridges Homeowners Association. “It’s huge for us,” said an elated Debbie Klingsberg, attorney for Tannenholz. “We’re done. This is what we had been hoping for all along. Complete vindication that she didn’t […]
U.S. Virgin Islands: DLCA Announces New License for Short-Term Rentals
The Department of Licensing and Consumer Affairs is introducing a new business license for short-term rentals it promises will help crack down on people who rent out their residences against the bylaws of homeowners’ associations. Read the article……………………………….
POOF!: $109,760 Fees Award Went Away Based Upon Merits Reversal (CA)
One Ford Road Homeowners Assn. v. Johnson, Case No. G058269 (4th Dist., Div. 3 Dec. 17, 2020) (unpublished), is just a reminder about how expensive HOA/homeowners disputes can be. Read the article…………………………………
What Are the Mandatory Provisions in Condominium Bylaws? (MI)
Pursuant to Section 53 of the Michigan Condominium Act, MCL 559.153, the administration of a condominium project must be governed by condominium bylaws that must be recorded as part of the master deed. The Michigan Condominium Act, MCL 559.101, et seq., (the “Act”) and the Administrative Rules of the Department of Licensing and Regulatory Affairs […]