-Requiring Payment of Homeowners’ Association Fees (S.4182/A.1800)- This measure requires banks or mortgage holders of vacant and abandoned residential properties to continue paying homeowners’ association fees or cooperative fees as needed to maintain a property when it has been abandoned during the foreclosure process. This will help to ensure properties do not become dilapidated before […]
What is a PID or PUD, and How do they Impact your Community Association?
Understanding HOAs, COAs and POAs is already confusing. On top of that, the terms PID and PUD are often bandied about and are sometimes confused with community associations. However, they are not the same thing at all. Here’s how and why they exist, and how they differ from community associations. Read the article……………………..
Defendant Pipe Supplier In Condo Construction Defect Suit Properly Denied HOA Section 998 Offer Of $325,000 As Too Token Given $22.7 Million Costs Of Repair For Defendant’s Scope Of Work (CA)
In Acqua Vista Homeowners Assn. v. MWI, Inc., Case No. D073666 (4th Dist., Div. 1 Aug. 9, 2019) (unpublished), plaintiff homeowners association sued developer defendants as well as pipe supplier defendant MWI in a construction defect suit under the Right to Repair Act (Civ. Code, § 895 et seq.). MWI made a pre-trial CCP § […]
Court Affirms Condo Board’s Decision as Valid Exercise of Business Judgment (WA)
A condominium association’s board agreed to allow a unit owner to install a heat pump on the condition that he sign a document to protect the association. The unit owner argued in a lawsuit that this breached the board’s duty to exercise ordinary and reasonable care. The board responded that the business judgment rule protected […]
Insurer must pay to replace all siding on hail-damaged condos (IL)
A Tokio Marine Group unit must pay to replace all the siding on a condominium association’s buildings, in a case where there was no longer a match available for the structures’ undamaged siding, says a federal appeals court in affirming a lower court’s ruling. Read the article………………………..
This new law will ensure Californians’ right to display religious symbols on doors and in entryways
A little over a year ago, a homeowner’s association governing a San Diego condo complex told a Jewish resident to remove a mezuzah from his home’s doorpost. Mezuzahs are small parchment scrolls containing two passages from the Book of Deutoronomy in the Old Testament, usually encased and affixed to doorposts of Jewish homes, designating them […]
When Does a Condo Owner’s Lien Liability End? (FL)
The First DCA rendered an opinion this month wherein it certified conflict with the Third DCA over a condominium unit owner’s liability for association assessments and liens pursuant to § 718.116(1)(a), Fla. Stat., which pertains to a. Coastal Creek Condo. Ass’n, Inc. v. Fla Tr. Services LLC, 1D18-1457, 2019 WL 3114229, at *1 (Fla. 1st […]
Enforce or not to Enforce? A Community Associations’ Liability in Tort Cases (FL)
The Fourth District Court of Appeals recently addressed an association’s liability for failure to enforce no-street parking restrictions in Seminole Lakes HOA, Inc. v. Esnard, Case No. 4D18-15 (Fla. 4th DCA December 19, 2018). The case arose out of a car accident between Esnard and another driver which occurred inside the Seminole Lakes community. Read […]
I beg your pardon, Florida has promised you a rose garden
his was a slim 2019 legislative session when it came to new laws affecting Condominium or Homeowners’ (HOA) Associations with only 2 new laws passed. In House Bill 7103, older condominiums over 75 feet tall got another last minute reprieve from having to retrofit their buildings with fire sprinklers, opt-out or adopt an engineered life […]
How a short-term rental dispute in Indio landed in the California Supreme Court
In 2016, homeowners in Indio’s Orchard community were weighing an election-year decision. Should they — or shouldn’t they — restrict short-term rentals in their neighborhood? At the time, vacation rentals had become a contentious issue throughout the Coachella Valley, and The Orchard was no different. For years, opposing factions within the 93-unit community had disagreed […]
Unit Owner Litigation (IL)
It is a widely held concept that the US is a “litigious society.” Therefore, it is unsurprising that litigation by Unit n range from allegations of breach of fiduciary claims to property damage claims or personal injury claims to allegations of negligence. Regardless of whether or not Unit Owner claims are meritless, association boards find […]
“Former Felon Board Member Eligibility,” FCAP Managers Report (FL)
Fla. Stat. §§ 718.112, 719.106 and 720.306 each contain a limitation on a Read the article………………..n individual’s ability to serve on a community association board of directors if the person is a convicted felon. Specifically, a convicted felon is not eligible to serve on a community association board “unless such felon’s civil rights have […]
Pool Restriction Not Racially Motivated (DE)
A chancery court judge in Delaware ruled that an interracial family with an autistic son did not prove that the homeowner’s association or property management agent barred them from using the community pool because of any discriminatory reasons. Read the article………………
Michigan Court of Appeals held that a co-owner was responsible for the pre-existing bylaw violations (MI)
In Fox Pointe Association v Ryal, unpublished opinion of the Court of Appeals, issued July 23, 2019 (Docket No. 344232), the Michigan Court of Appeals held that a co-owner was responsible for the pre-existing bylaw violations of a prior co-owner after purchasing a condominium unit. The court also held that the condominium association did not […]
Governor Signs Bill “Know Your Rights” Insurance Disclosures for Mobilehome and Condo Residents (CA)
After earning strong bipartisan support in the Senate and Assembly, Governor Gavin Newsom signed Senate Bill 508 authored by Senator Connie M. Leyva (D-Chino) that will require insurers to provide timely disclosures and information to mobilehome and condominium residents regarding their residential property insurance policies and their rights associated with their policy. Read the article………………
Mid-Year Federal Policy Update
CAI’s Federal Legislative Action Committee (LAC) is the advocate for CAI member interests in Congress and with the Trump administration. While a divided government has slowed progress on significant legislation, the Federal LAC has been very active on key issues for community associations. Read the article………………………
Association’s Insurance Did Not Cover Lawsuit Filed by Condo Owner (FL)
A federal district court in Florida ruled a cross-liability exclusion in an insurance policy issued to Miami Beach a condominium association unambiguously precluded coverage of a lawsuit filed by a condo owner. Read the article…………………………
HUD Order Settles Claims of Discrimination Against Hudson Harbour Condominium Association In Edgewater (NJ)
The U.S. Department of Housing and Urban Development (HUD) announced today that Hudson Harbour Condominium Association in Edgewater, New Jersey, will pay $30,000 pursuant to a Consent Order resolving allegations that they discriminated against a resident with disabilities by denying her the right to have a dog as an assistance animal. Read the Order. Read […]
Superior Court Appoints Special Master for Condominium Association Led by Newport Businessman (RI)
Newport Superior Court Judge and former RI Lt. Governor Richard Licht has appointed a Special Master for the 10 Brown & Howard Wharf Condominium Association. Newport businessman Johannes Flo, a Norwegian national who was the subject of a major exposé by the Norwegian publication VG, and who has a significant ownership interest in the Bard […]
Updates on Legislation That Affects Florida Community Associations (FL)
Only a few bills passed this year that affect community associations. These bills pertain to: 1. fire sprinkler and engineered life safety systems in condominiums, 2. removal of dangerous trees, 3. vegetable gardens, and 4. Assignments of Benefits Read the article…………………………..
Attorney-Client Privilege When Board Members Sue the Association (FL)
Many Associations have just completed their election season and find that a person or persons newly elected to the Board are involved in a case being defended or prosecuted by the Association. Now what? Clearly, a conflict of interest exists but participation in a lawsuit against the Association is not one of the factors that […]
Headstrong HOA Board Member Puts Himself in Harm’s Way Over Fair Housing Issues (DC)
In a recent case decided by the D.C. Court of Appeals, the court heard a matter involving the intersection between community association governance and fair housing law. In this case, Wilfred Welsh, a board member of the Chaplin Woods Homeowners Association (the “HOA”), sued fellow HOA members Beverly McNeil and Alvin Elliott (the “McNeils”), claiming […]
Agency Law and Your HOA or Small Business (NC)
“If a singular board member of an HOA incorrectly tells an owner that a requested fence installation is approved, does it bind the HOA? I recently had a board member tell an owner he was approved incorrectly.” Seems simple, right? If an architectural review request did not go through the right procedure and was not […]
J-51 Tax Abatement Extended and Expanded (NY)
More co–op and condo owners will now have the opportunity to join a previously expired tax abatement program, thanks to a bill signed into law earlier this month, Qns.com reports. The J–51 tax abatement, which helps co-ops and condos make costly capital improvements, now allows properties with an assessed value of up to $40,000 to […]
Check for Hidden Exclusions on Insurance Policies (NY)
A co-op board filed a significant insurance claim, well over half a million dollars, after a worker was injured in the common area of the building. And the claim was denied because of an exclusion in the policy. Read the article………………………
Court affirms homeowners association’s right to restrict leasing (GA)
Fard Pasha filed suit against the Battle Creek Homeowners Association, Inc. (the “Association”), seeking a declaratory judgment that an amendment to the Association’s “Declaration”—which restricted the ability of the neighborhood’s homeowners to lease their property—was unenforceable as to him. Read the decision…………………..
Hurricane Season Is Here – If you Suffer a Casualty, You Need to Know About This New Law (FL)
A good reason why society provides for prevailing party attorney fees and costs is to make a potential plaintiff think twice before filing a lawsuit. Imagine being able to sue your adversary in court without worry that if you lose you will NOT have to pay prevailing party attorney fees and costs to the other […]
Pitfalls for Community Associations When an Owner Files Bankruptcy
Last year, over 750,000 bankruptcy cases were filed in the United States. Therefore, it is only natural that a significant number of owners of properties in community associations are filing bankruptcy. When that happens, the collision of community association law and bankruptcy law can create unpleasant pitfalls for associations. Read the article……………………
Another Fair Housing Case for Community Associations to Swim Around (FL)
The Federal Fair Housing Act, 42 U.S.C. 3601 prohibits housing providers from discriminating on the basis of race, color, national origin, religion, sex, marital status and disability. Most states, including Florida, have their own anti-discrimination laws, such as the Florida Fair Housing Act. In Florida, community associations are bound by both the Federal and Florida […]
Loop lawyer, condo owner alleges condo association’s attorneys defamed him (IL)
A lawyer who owns a Loop condominium and has been embroiled in legal spat with his condo association for years is now suing three fellow condo owners and the condo association’s attorneys, alleging they impugned his integrity by telling condo residents he was allegedly delaying a suit by the association against him through “frivolous” and […]
Mold/Damage Claim: California Appellate Court Addresses Causation Question
A California Court of Appeal (“Court”) addressed in a July 2nd opinion an issue associated with a damage claim involving mold/water intrusion. See Longmire v. 1022 10th Street, Inc., Court of Appeal of California, B288063. The Court reviewed a jury’s finding of whether a defendant was a substantial factor in the damages allegedly caused by […]
2019 Florida Condominium & Homeowner Association Legislative Update
Based on the seemingly low media profile of recently passed legislation pertaining to community associations, many people wrongfully assume the latest session of Florida’s legislature will have little or no impact on their community association. To the contrary, although lacking in “name plate” legislation, the following recently passed legislation goes into effect on July 1, […]
Challenging the New Development Next Door
In most county and city governments, the land use process is one that will allow for some basic decisions to be made at staff levels, with higher levels of review in the form of public hearings required for larger scale projects, or proposals that deviate too far from the established standards for a given development. […]
Michigan Court of Appeals rules that the failure to hold annual meetings does not deprive a nonprofit corporation’s board of directors of authority to act on behalf of the corporation
On July 2, 2019, the Michigan Court of Appeals issued an Opinion in the matter of Channel View East Condominium Association, Inc v Gregory V Ferguson, unpublished per curiam opinion of the Court of Appeals, issued July 2, 2019 (Docket No. 344149). The issue presented to the Court in Channel View was whether a condominium […]
Homeowners take action against defunct HOA as lawmaker promises transparency (TX)
There could soon be changes to the way homeowners associations operate in Texas. After KHOU 11 Investigates uncovered hundreds of people were paying dues to an HOA that did not exist, one lawmaker is making it his business to better protect people’s investments. The idea could help some property owners fighting to take back their […]
‘Inscribe them on your doorposts’: California lawmakers pass ‘mezuzah bill’ (CA)
A bill to enshrine the right of Californians to hang mezuzahs on their doorframes is moving through the state Legislature and is on its way to the desk of Gov. Gavin Newsom. SB 652 bars landlords and condo associations from prohibiting “the display of religious items” of a certain size on doors and doorframes. Known […]
Community Associations Legally Permitted to Obtain Keys to Private Residences (FL)
When one lives in a condominium association, residents and owners must be aware that an association has the legal right to obtain an emergency key for every unit so it may access a residence under specific circumstances. Read the article……………………..
Residential Use vs Non-Residential Use in Michigan Condominiums
In Michigan, many condominium documents contain a limitation that a Unit may be used for “residential purposes” only. Historically, an owner or the developer of a parcel of property could impose reasonable building, use, and occupancy restrictions on a parcel of property subject to public policy limitations. Kaczynski v. Lindahl, 5 Mich App 377; 146 […]
Colorado Supreme Court: Appraisers May Not Advocate for Party Retaining Them
On June 24, 2019, the Colorado Supreme Court issued its opinion in Owners Ins. Co. v. Dakota Station II Condominium Assoc., Inc., Case No. 17SC583, 2019 WL 2571645 (Colo. June 24, 2019), holding that when parties invoke an appraisal clause in an insurance policy, the appraisers must be unbiased, disinterested, and unswayed by personal interests […]
Homeowners Were Not Catalysts For Easement Agreement Assumption, Because They Wanted A More Expansive Amendment (CA)
In Lemley v. Aliso Homeowners Assn., Inc., Case No. B288789 (2d Dist., Div. 3 July 3, 2019; posted July 5, 2019) (unpublished), HOA and homeowners got entangled in an easement agreement dispute in which homeowners wanted specific performance/declaratory relief to enforce an amendment to the agreement, while HOA defended on the principal grounds of mootness […]
Certain home-based daycares get new protections (VA)
Home-based childcare providers can breathe a sigh of relief after Virginia passed a new law giving certain providers some protection. The new law which took effect on July 1 is specifically protecting home-based childcare’s that reside in areas that are beholden to Home Owners Associations. In the past Home Owners Associations would try to ban […]
Granny flats may get easier to build (CA)
State lawmakers believe too many California homeowners still struggle to build granny flats, with high fees, construction costs and regulations stalling even the most careful plans. A handful of proposals in Sacramento would expand the years-long efforts to clear hurdles for homeowners interested in building auxiliary dwelling units (ADUs) on their property. The measures would […]
Court of Appeal Upholds Pre-Litigation Arbitration Clause (CA)
We recently blogged about the importance of the the plain language of an association’s Declaration when following pre-litigation requirements to a construction defect claim. On March 18, 2019, the California Court of Appeal ruled that trial courts should not deny a homeowner of his right to submit a case to arbitration pursuant to the CC&Rs […]
Regulation of Display of American and North Carolina Flags in HOA & Condominium Associations
Happy Fourth of July! It is the time of year when our firm gets many questions regarding the display of United States and North Carolina flags in their community associations. Summer is a popular time of year for sun, sand, BBQ cookouts, and for display of patriotism! In our experience, we have found that most […]
How Florida’s Adoption of the Daubert Standard Can Impact Construction Defect Lawsuits
On June 26, 2019, the Sun Sentinel published an editorial: “The Florida Supreme Court’s new evidence rule makes it harder to sue,” which is one of the many recent articles providing commentary on the Florida Supreme Court’s May 23, 2019 ruling, which changed the standard in Florida cases for evaluating and admitting expert testimony. Read […]
Top Risk Management Issues for Florida Condo Developers: Part I
The liability assumed by condominium developers in Florida is both significant in breadth and in duration. Under Florida’s Condominium Act Warranty Law, developers are as equally liable as the contractor to unit owners, successor owners and the association for “fitness and merchantability for the purposes or uses intended.” Fla. Stat. 718.203. Read the article……………………….
What Every HOA and Condo in Transition/Turnover Should Know About Florida’s Statutes of Limitations and Repose
We are frequently retained by homeowners associations and condominium associations who have just undergone transition/turnover from developer control to control by the unit owners other than the developer. Two of the first questions we ask them are 1) what amenities and other common elements does the association own or is it required to maintain; and […]
Private Flood Insurance Mandatory Acceptance Begins July 1, 2019
In February 2019, the Board of Governors of the Federal Reserve System, the Farm Credit Administration, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency (the interagency regulators) issued a final rule implementing the portion of the Biggert-Waters Flood Insurance Reform Act mandating acceptance of […]
We’ve Been Sued! We Need to Sue! What to Expect When Your Association Goes to General District Court (VA)
Community associations are not immune from being sued or having to file suit. Community associations frequently are in court for issues such as the collection of unpaid assessments from residents, disputes with contractors, and covenant and rule enforcement. Read the article…………………….