When coop, condo or HOA boards rely on management to keep their books and records, getting outgoing management to turn them over to new management can be difficult. Some states like Florida have enacted laws covering transitions, but many states like New York do not have such specific laws yet. Reputable property managers handle transitions […]
Treble Damages and Attorneys Fees in Condominium Construction Defect Claims in Washington DC
This article discusses the circumstances under which a Condominium Unit Owners Association in Washington DC may have the right to recover treble damages, attorney’s fees and other litigation expenses incurred in pursuing a condominium construction defect case against a condominium declarant, developer or builder. Read the article………………………………
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In DeCaminada v Hammond, unpublished opinion of the Court of Appeals, issued February 18, 2020 (Docket No. 345847), the Michigan Court of Appeals ruled that the co-owners of a site condominium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. […]
Fair Debt Collection Practices Act — debt qualification (IL)
Where a demand for attorney fees that arose from plaintiff’s actions as a board member of a condominium association did not qualify as a debt under the Fair Debt Collection Practices Act. Read the article………………………………
Conflicts of Interest will be Problematic for Board Members unless Handled Properly (NY)
Back in 2015, a condo board president’s toilet repeatedly leaked into the apartment below. It was determined that the condominium’s pipes to the toilet were improperly pitched. That was eventually fixed in 2015. But, it also was determined that the seal around the base of the board president’s toilet at the floor was damaged. It […]
Fulton Commissioner, Neighborhood Association Hit With $400K Malicious Prosecution Verdict (GA)
A jury awarded more than $400,000 in damages and attorney fees to a couple who was arrested on accusations they defrauded a homeowners association out of several thousand dollars for cleaning and other maintenance tasks. Among the defendants was attorney and Fulton County Commissioner Marvin Arrington Jr., an association board member accused of using his […]
Family of man killed by security guard in Chesapeake ‘Pokemon Go’ shooting will get $1.5 million (VA)
The settlement requires that the majority of the funds — $1.35 million — be paid by the security guard, Johnathan Cromwell, and his employer, Citywide Protection Services. The remaining $150,000 is to be provided by the River Walk Community Association, which had a contract with Citywide to provide unarmed guards to patrol the neighborhood and […]
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 […]
Justice Department Files Lawsuit Against Philadelphia Condo Association for Discrimination Against Persons with Disabilities (PA)
The Justice Department announced today that it has filed a lawsuit alleging that a Philadelphia condo association has violated the Fair Housing Act by discriminating against persons with disabilities who need assistance animals, including emotional support and service animals. Read the article……………………..
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 […]
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……………………………
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, […]
Virginia compromise brings clarity to homeowner association solar rules
A new law updates a 2013 measure that gave homeowner associations power to impose “reasonable restrictions” on solar. Read the article……………………………
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 […]
Almost 6 years After Palm II and Some Boards Are Still Not Following the Law! (IL)
It’s been a while since the infamous Palm II case came down and caused chaos in the Illinois association world. Because it’s been a couple of years, and as we have encountered situations where board members seem to have become lax on following corporate formalities or careful about meeting with other board members outside of […]
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 […]
Jury tells Grand Rapids to pay more than $7 million for Plaza Towers flood damage (MI)
A jury sided with Plaza Towers over significant damage caused during an historic 2013 flood, ordering Grand Rapids to pay more than $7 million in damages. The jury deliberated for a few hours Friday, Feb. 14 before returning with a verdict just before 8 p.m. It was the culmination of a two-week trial pitting the […]
Don’t Hesitate: Update Community Association Liens Now and at the Beginning of Each Fiscal Year (NJ)
This year community associations of all types saw a significant change to the law that applies to their right to secure payment for outstanding assessments through the filing of liens. Previously, only condominium associations had a priority lien against other lien holders for only six months of assessments prior to the recording of their lien. […]
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…………………………….
HOA column: How California law aims to protect residents’ religious rights
On July 30, Senate Bill 652 was signed into law by Gov. Gavin Newsom in response to several incidents in which a homeowners association asked a resident to remove a mezuzah from their unit’s entry door or door frame. Readthe article…………………………….
Maryland court of appeals: state consumer protection act covers HOA collections
On January 27, the Court of Appeals of Maryland affirmed the dismissal of a homeowners association’s (HOA) confessed judgment complaint against a consumer, and stated that the HOA could not file an amended complaint. According to the opinion, the consumer owned a home that is part of an HOA, which makes annual assessments to cover […]
Many Washington Condo Associations and HOAs Must Incorporate or Form LLC
Two Washington laws adopted in 1990 and 2018 require many condominium and homeowners associations to be incorporated entities. The relevant section of the first law, the Washington Condominium Act, applies to all condominiums created after July 1, 1990. Read the article………………………….
Michigan Court of Appeals Holds That HOA Cannot Revoke Approvals for Docks
In Haan v Lake Doster Lake Association, unpublished opinion of the Court of Appeals, issued January 16, 2020 (Docket No. 345282), the Michigan Court of Appeals held in a 2-1 decision that an Allegan county homeowners association could not revoke approvals granted to owners to install docks. Read the article……………………………….
Compulsive Vulture, Alligator Feeder Settles for $53K with HOA (FL)
Readers of this blog may recall my recent article about a resident of the Ibis Golf and Country Club community in Palm Beach County who was creating an incredibly dangerous and destructive situation by feeding extraordinary amounts of food to vultures, alligators and other wildlife behind her home. On Wednesday, Jan. 15, the homeowner agreed […]
Maryland court of appeals: Law firm’s collection activities do not necessarily qualify for “professional services” exemption
On January 28, the Court of Appeals of Maryland held that not all services provided by a law firm or a lawyer fall within the “professional services” exemption under the Maryland Consumer Protection Act (CPA). In this case, a homeowners association (HOA) retained a law firm to collect delinquent HOA assessments, fines, penalties, and attorney’s […]
Considerations in Settling Cases (Mediation/Settlement Conferences)
Mediation is an alternative dispute resolution (ADR) method, where the participants meet with a third party (mediator) to negotiate a potential settlement. The mediator is required to be unbiased, and he or she does not work for either side. The mediator listens to each side’s position and helps to facilitate a voluntary resolution to the […]
Trafalgar Stump Dump: Arkansas Pollution Control and Ecology Commission Addresses Bella Vista Property Owners Association, Inc.’s Request for Hearing to Set Aside Consent Administrative Order (AR)
The Arkansas Pollution Control and Ecology Commission (“Commission”) addressed at its January 24th meeting a request by the Bella Vista Property Owners Association (“POA”) that it conduct an adjudicatory hearing to review the Consent Administrative Order (“CAO”) issued by the Arkansas Department of Energy and Environment – Division of Environmental Quality (“DEQ”) in the matter […]
The top 3 things you must know about HUD’s new guidance on assistance and emotional support animals
On January 28, 2020, the Department of Housing and Urban Development (HUD) issued new guidance on how housing providers, such as condominium associations, homeowners associations and landlords, can comply with the Federal Fair Housing Act (FHA), 42 USC 3601 et seq. in evaluating requests for assistance and emotional support animals. HUD estimates that 60% of […]
Is Relief for Fraudulent Emotional Support Animal Accommodation Requests on the Horizon?
As so many community associations have encountered first-hand, the Florida and Federal Fair Housing Acts (FHA) require condominium and homeowners associations to grant exceptions (or a waiver) to pet restrictions in order to allow a person with a disability to keep an animal which alleviates one or more symptoms of that disability, but would otherwise […]
Michigan Court of Appeals holds that HOA cannot revoke approvals for docks
In Haan v Lake Doster Lake Association, unpublished opinion of the Court of Appeals, issued January 16, 2020 (Docket No. 345282), the Michigan Court of Appeals held in a 2-1 decision that an Allegan county homeowners association could not revoke approvals granted to owners to install docks. The majority opinion relied on the terms of […]