Can Homeowners Sue an Association for Increasing Assessments Where the Association Did Not Receive the Requisite Votes Required?

Diane Steele owned a home in the Diamond Farm development, which was managed by the Association. While in accordance with the Association’s declaration of covenants, conditions and restrictions, the Association must obtain at least two-thirds of the members’ total votes to increase annual assessments, assessment increases in 2007, 2011, and 2014 did not receive the […]

Validity of Debts May Be Disputed by Oral Communication: Third Circuit Rejects Requirement of a Writing to Dispute Consumer Debt Under the Fair Debt Collections Practices Act

On March 30, 2020, the U.S. Court of Appeals Third Circuit issued an important decision in the case of Riccio v. Sentry Credit, Inc., approving oral communication as a method to dispute the validity of a debt. This decision overruled Graziano v. Harrison 950 F.2d 107 (3d Cir. 1991), a long-standing case requiring a writing […]

Court rules Site Condominium Unit was rebuilt in accordance with Master Deed (MI)

In DeCaminada v Hammond, unpublished opinion of the Court of Appeals, issued February 18, 2020 (Docket No. 345847), the Michigan Court of Appeals ruled that the co-owners of a site condominium unit who constructed a larger home, after losing their home in a fire, had constructed the home “substantially” in accordance with the master deed. […]

Owners Pay High Price of Litigation Against Association

Even where homeowners characterize their claims against an Association as civil rights violations, the claims involved in the parties’ rights under the declaration, and the declaration’s attorney’s fees provisions applied.   Read the article………………………….

Appeals court dismisses case over water-damaged condominium for lack of jurisdiction (TX)

An appeals court ruled a case involving a water-damaged condominium should be dismissed for lack of jurisdiction.  Justice Jerry Zimmerer wrote that the court found that case lacked jurisdiction because the lower court lacked subject-matter jurisdiction and, because of that, the only thing the appeals court could do was vacate the lower court’s judgment and […]

Environmental Enforcement Agreements, Force Majeure Provisions, & COVID-19: Now is the Time to Review Your Consent Order and Assess Your Options (VA)

Much has already been written regarding the potential of COVID-19 to impact construction or development projects. For example, businesses may experience personnel or material shortages, or stoppages that result from Government-directed actions. These delays jeopardize project timelines and place businesses in vulnerable positions regarding liquidated damages or other contract penalties. These businesses are reviewing their […]

List Of Coronavirus (COVID-19) Small Business Relief Programs

Small businesses have been hit hard by mandatory closures and safety measures required to slow the spread of the coronavirus (COVID-19).  But businesses have a growing number of resources and relief programs to turn to, including emergency funding from the government, protection from eviction and business loan deferment. The FDIC is encouraging banks to work with […]

Community Association Emergency Powers: COVID-19 (Coronavirus) Precautionary Measures (FL)

On Monday, March 9th, 2020, Florida Governor Ron DeSantis declared a state of emergency in Florida due to the COVID-19 (Coronavirus) outbreak. Since that time, community association board members and managers have had numerous questions on what precautionary measures community associations should take. There are also many concerns regarding upcoming annual meetings and elections, as […]

State Says Gyms in Co-ops and Condos Must Also Close (NY)

After Gov. Andrew Cuomo issued an order that “any gym, fitness centers or classes” were to cease operations Monday evening in an effort to slow the galloping spread of coronavirus, the state has issued a clarification: the order also applies to gyms in residential buildings, including cooperatives and condominiums, The Real Deal reports.   Read the […]

Realtors Beware: Your Client’s Country Club Exclusion Can Come Back Around to Bite You (CA)

In January 2016, plaintiffs and appellants, Michael Dubasso and Jenny Dubasso (collectively, the “Dubassos”), purchased a home in the Tradition community (“Tradition”) in La Quinta, California. The Dubassos hired real estate agent Kathleen O-Keefe (“O-Keefe”) and LQR Desert Real Estate, Inc. (“LQR”) as their real estate agent and broker, respectively. Shortly after closing escrow, the […]

New Case Holds that Post-Petition HOA/Condo Assessments That Become Due After A Homeowner Has Filed For Chapter 13 Bankruptcy Are Also Dischargeable – Ouch!

As many of you likely know, when a homeowner files a Chapter 7 bankruptcy, they may be able to “discharge” their obligation to pay the pre-bankruptcy petition debts including the assessments they owe their community association. And you likely know that when an owner files a Chapter 13 bankruptcy, they are looking for a way […]

2019 Florida Community Association Case Law Year in Review

Based on a seemingly low media profile many people wrongfully assumed Florida’s court system had little or no impact on their community association in 2019. Although lacking in “name plate” cases the following case law decided in 2019 will have a meaningful impact on Florida’s condominium and homeowner associations :    Read the article……………………………

Coronavirus and the Law of Contracts (VA)

The international reaction to the COVID-19 virus (otherwise known as the “Coronavirus”) has been unprecedented, as nations around the globe rush to stem the spread of the disease. Aside from serious public health issues, the virus will likely have a staggering economic impact on business in the United States. Already, many companies that rely on […]

Session Ends and Long Awaited ESA Bill Passes! (FL)

We will be addressing the major bills impacting our CALL members in a series of separate alerts since there is a lot to discuss on each bill. In the first of the series, we are delighted to announce that SB 1084, the bill which takes the first step to rein in emotional support animal abuse, […]

7th Cir. Rejects Plaintiff’s FDCPA Arguments Regarding ‘Consumer’ Debt

The U.S. Court of Appeals for the Seventh Circuit affirmed entry of judgment on the pleadings against a former condominium association board director’s claim that the association’s attorneys’ request for fees in a separate state court action filed by the association against the former director violated the federal Fair Debt Collection Practices Act (FDCPA).  In […]

When a Condominium Falls Down (NC)

Eventually, gravity and time will prevail over concrete, steel, wood, and glass. The risks associated with that life span are captured well in transactions related to single-family homes and commercial structures, where investors, lenders, buyers, and tenants attribute value to improvements based on their remaining service life. In the multi-owner regime of a condominium, however, […]

New Virginia law prevents HOAs from blocking solar installations

Virginia Governor Ralph Northam has signed HB 414/SB 504. The bill protects homeowners who want to install solar from burdensome homeowners association (HOA) restrictions.  “The legislation protects the rights of homeowners who want to go solar but live in HOA communities,” said Aaron Sutch, program director for Solar United Neighbors.“It strikes a fair balance between […]

Dealing with Vexatious Litigants in Community Association Matters

Vexatious litigants bother, embarrass and/or cause legal expenses to the defendant and can be a costly problem in today’s legal system. Vexatious litigation is becoming more common in the realm of community associations and quite often these litigants represent themselves when they file lawsuits against their own association or contest decisions made by the Board […]

Sand Dollar Shores appeals Duck beach access ruling (NC)

The Sand Dollar Shores Homeowners Association has announced, through its attorney Casey Varnell, that it has appealed a Feb. 14 ruling by a Camden County Superior Court Judge that sided with plaintiff Bob Hovey’s claim that a beach access there belongs to the public.   Read the article………………………….

HB 623 OMNIBUS BILL (FL)

We are now in the final weeks of the 2020 Legislative Session with the last day of Regular Session, March 13, quickly approaching. There will be a lot of activity in the closing weeks for many of the bills CALL has been tracking. Below is a summary of the major community association omnibus bill, filed […]

Homeowner Associations: $390,668 Fee Award To HOA Affirmed When Appellate Court Affirmed HOA Interpretation Of Palm Tree View CC&Rs And Accompanying Policies (CA)

Over the years, because a lot of us live in common interest developments, we are used to seeing homeowner association fights with homeowners, many occurring based on view restriction or tree limitations—generating plenty of disputes by both sides. In the next case, HOA prevailed and, with it, garnered a substantial attorney’s fees award under the […]

HUD Issues New Guidance for Assistance Animals in Housing

Changes in public perceptions and levels of awareness of the issues surrounding emotional support animals have created a mandate for new state laws and federal policies. Earlier this year I wrote in this column about new measures being considered by the Florida Legislature as well as the U.S. Department of Housing and Urban Development. HUD […]

SCHOA files petition to Supreme Court for Sun Cities appeal (AZ)

A petition to the Arizona Supreme Court to hear Sun City Home Owners Association’s appeal of the Arizona Corporation Commission’s approval to consolidate wastewater district was filed Feb. 21.  “We believe we have a good brief,” said George Courtot, SCHOA board vice president.  SCHOA officials appealed the Arizona Corporation Commission’s 2017 decision to consolidate five […]

Inadvertent Construction Defects Are an ‘Occurrence’ Under the CGL Insurance Policy

Whether property damage caused by defective construction work constitutes an accidental “occurrence” under the standard form Commercial General Liability (CGL) insurance policy is now highly dependent on which state’s law applies. Determining which state’s law applies to a particular construction defect claim is therefore critical and often outcome determinative. Read the article…………………………

There is no Such Thing as a Free Lunch – Or a Free Clubhouse: Implementing Reasonable Limitations on Political Speech and Assembly Rights in California HOA’s

We have just passed the two-year anniversary of California Civil Code 4515. This is the law that protects certain rights of members and residents to political speech and peaceful assembly within California community associations. With election season in full swing, it is important for Boards and management to be reminded that the rights afforded to […]

Gov. DeSantis signs bill that bans HOA restrictions on police vehicles (FL)

Law enforcement officers in Florida are now allowed to park their work vehicles in their driveways, despite what HOA has to say about it.  On Friday, Gov. Ron DeSantis signed S.B. 476 — the law enforcement vehicles law — which protects law enforcement officers from being told by their HOA they can’t park their work […]

2020 State Legislative Update – Part 2

As of today, 44 state legislatures have convened, and CAI is tracking more than 1,000 bills impacting community associations. This is part two of our 2020 state legislative trends. Read part one here.In addition to affordable housing, construction warranties, reserve studies and funding, the following trends and issues are CAI advocacy priorities:   Read the article…………………………

HOA Records and the Exclusion of Hearsay from Evidence (VA)

HOAs and condominiums, as legal entities, are creatures that derive their power from documents. Governing documents must be in writing. Rules, regulations, policies, and resolutions must be put into writing. To maintain and manage the common areas, the board must make contracts with vendors. Covenant enforcement requires data collection and issuance of notices to lot […]

IN-HOME CHILD CARE IN HOMEOWNERS ASSOCIATIONS? MORE THAN LIKELY…YES. (CO)

In a unanimous vote from the Senate Local Affairs Committee (5-0), SB 20-126 was amended and referred to the entire Senate for consideration on February 13, 2020. As amended, the bill prohibits, as a matter of public policy, any restriction in a declaration or covenants that would prohibit the operation of an in-home child care […]

Maryland Court of Appeals Bars Confessed Judgment Clauses in Consumer Contracts

A recent decision from the Maryland Court of Appeals provided somewhat surprising new guidance on the permissibility of confessed judgment clauses in consumer contracts. In Goshen Run Homeowners Association, Inc. v. Cisneros, the Court concluded that Maryland’s Consumer Protection Act (the “Maryland CPA”) prohibits all confessed judgment clauses in all consumer contracts.   Read the article………………………….

Unfinished Starwood home outside of Aspen, HOA fines at heart of March trial (CO)

A jury is scheduled to listen to five days of testimony regarding an Aspen-area luxury home that remains incomplete after roughly 13 years of construction and has resulted in $900,000 in late penalties.  Jury selection is set March 9 in Pitkin County District Court, the venue for a legal feud between the homeowners’ association that […]

2020 State Legislative Trends – Part 1

As of today, 39 state legislatures have convened, and CAI is tracking more than 1,000 bills impacting community associations. Based on the bills that have been introduced this year and trends from last year, we anticipate our advocacy efforts will focus on several priorities, including affordable housing, construction defect warranties, reserve studies and funding, rentals […]

Cooperative and Condominium Tax Abatement Safe from Prevailing Wage Requirement (NY)

Coops and condos will not need to pay their service employees prevailing wages to keep their units eligible for the Cooperative and Condominium Tax Abatement (the abatement). The abatement reduces property taxes between 17.5 and 28.1 percent on average, depending on the assessed value of the units in the development.   Read the article…………………………….

Transferring Title within a Condominium Association (FL)

Is a unit owner who transfers title from an individual capacity to a corporate entity or LLC required to obtain Association approval? The answer is often not simple as the transfer of title does not necessarily result from a sale. There are many different types of title transfers including gifts, devices, transfers between related entities […]