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 […]

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 […]

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 […]

Legislative Update: Texas HOA Legislation in 2019

The 2019 legislative session recently ended, and we at SpectrumAM would like to inform our boards that little was passed that will impact SpectrumAM’s clients or the association management industry in general. Like many bills, most of the items discussed at the beginning of the session failed to make it out of committee, and some […]

Rogers Park condo association files class action vs laundry machine service company, says fees not in contract (IL)

A Rogers Park lakefront condominium association has filed a class action lawsuit against a New York-based company that leases laundry machines for commercial use for allegedly charging previously not-agreed-to administration fees.  The condo association, 1050 West Columbia Condominium Association, filed a lawsuit June 18 in Cook County Circuit Court against CSC Service Works Inc. alleging […]

Washington Legislature Amends WUCIOA

The Washington Legislature recently approved a new law updating the Washington Uniform Common Interest Ownership Act (“WUCIOA”; RCW 64.90) in various ways. The most significant changes related to condominium liability.   Read the article……………………

To Avoid Charges of Retaliation, Start Talking to Employees (NY)

New York City co-ops and condos are facing yet another potential avenue of legal liability, thanks to a recent vote by the city council. Earlier this month, the council voted to amend the city’s Human Rights Law, making it an unlawful discrimination practice to retaliate against an employee who asks for a reasonable work accommodation […]

Condo owner wins appeal against security guard service (TX)

A condominium owner won his appeal of a Harris County trial court’s decision to dismiss his negligence claim against a security guard service.  The Texas First District Court of Appeals on June 6 reversed the Harris County District Court’s order dismissing Smith Protective Services Inc. from Igor Galperin’s lawsuit.     Read the article………………………

Why You Must Hire an Engineer at Turnover

The association’s detention pond overflowed causing damages to property downhill from the pond. The developer built the detention pond in 2007. The owner of the downhill property (who bought in 2012) sued the association in 2013 for damages in excess of $300,000. (Kowalski v. TOA PA V, L.P. and Traditions of Amercia at Liberty Hills […]

Ohio Grilling Law

Summer season is upon us. Warm days and nights provide the perfect conditions for grilling outdoors on a deck, patio, or balcony. That makes this the ideal time to think about fire safety and to review Ohio’s laws on grilling and the use of open-flame cooking devices.    Read the article…………………..

Why You Must Hire an Engineer at Turnover

The association’s detention pond overflowed causing damages to property downhill from the pond. The developer built the detention pond in 2007. The owner of the downhill property (who bought in 2012) sued the association in 2013 for damages in excess of $300,000. (Kowalski v. TOA PA V, L.P. and Traditions of Amercia at Liberty Hills […]

7 Challenges to Construction Defect Claims

Whether a project is big or small, it seems inevitable that construction defect claims will surface. While the nature of these claims may vary, common patterns are generally present, and construction professionals would do well to understand the distinctions.  Construction defect claims often fall into one of four categories: design defects, material defects, workmanship defects […]

Recreational Marijuana in Condominium Associations (IL)

With the Senate’s recent passage of HB 1438, the Cannabis Regulation and Tax Act (“Cannabis Act”), Illinois is poised to become one of the 11 states that permit both recreational and medical marijuana use. HB 1438 will likely be passed by the Illinois House and subsequently signed into law by Governor Pritzker (feel free to […]

Freedom in Associations: Exercising Free-Speech Rights in an HOA

Freedom of speech is perhaps the most cherished and most important protection provided by the United States Constitution. The delegates to the Constitutional Convention viewed citizens’ right to speak their minds without fear of government retribution as so important that “freedom of speech” is enshrined in the very First Amendment of the Constitution. Indeed, many […]

Agency Revisits Term Limit Issue (FL)

In 2017, the Florida Legislature passed a law which stated that condominium directors could not serve more than 4 consecutive 2-year terms, essentially creating an 8-year term limit.  The obvious immediate question was whether this law would be applied retroactively (reach back to prior years of service to determine if a director was “termed out”) […]

Maryland Streamlines Process for HOAs to Remove Antiquated Racist Covenants

Rodgers Forge became the first residential community in Maryland to take advantage of a 2018 law that empowered and required homeowners associations to proactively act to remove covenants that restrict homeownership based on skin color, religion, or nationality, according to The Baltimore Sun. In May, the Towson, Md., community altered 85 covenants written more than […]

Do We Finally Have an Answer to the Age Old Question: Is the Association liable for damages to a unit when the roof leaks? (maybe…)

The facts in this LA case, Sands v Walnut Gardens Condominium Association, are simple. Pipes on the common area roof leaked causing water damage to the owner’s unit. According to the manager’s trial testimony the Association performed no preventative maintenance even though it would have been desirable; he said the roof and pipe had not […]

Sotherly Hotels sues Hyde Resort & Residences association president (FL)

Sotherly Hotels, which previously managed the luxury beachfront development Hyde Resort & Residences in Hollywood, is not taking kindly to Daniel Rutois, a commercial broker who serves as president of the project’s association.  Last week, Sotherly sued Rutois and his firm, KGA Management Group, in Miami federal court for commercial defamation and tortious interference with […]

Legal & Legislative Update 2019 – How Will Your Community Be Affected? (NY)

Laws, and the legal decisions that support and enforce them, are constantly evolving and can affect every facet of community life in HOAs, condominiums and co-ops. While law and legal cases can emanate from any of our three levels of government – federal, state or local – most of the developments that affect housing come […]

Homeowner Prevailing In Unlawful Foreclosure Of Condo Unit Case Was Entitled To $434,000 In Damages And $720,000 In Attorney’s Fees (CA)

Yikes! Talk about a change in fortune based on a prior appeal. Homeowner finally won, obtaining damages and substantial attorney’s fees for hanging in there to the end.  In Multani v. Castle Green Homeowners Assn., Case No. B278397 (2d Dist., Div. 7 May 28, 2019) (unpublished), HOA earlier won a summary judgment and $90,000 in […]

Condominiums Must Abide by Denver’s New Benchmarking Ordinance (CO)

In an effort to preserve integrity, quality of life, and strengthen the local economy the Denver Department of Public Health and Environment established an Energy Efficiency Program. An integral part of this Energy Efficiency Program is the county’s new Benchmarking Ordinance. The ordinance is sited in the Denver Revised Municipal Code, Chapter 4, Article V. […]

Legislative Session Update Part II – Bills That Were Passed (FL)

What a difference a month makes…Last month, we provided an update on various pieces of legislation that would have impacted community associations throughout Florida. This month, we report that almost none of those extensive proposed changes were adopted by the legislature.      Read the article……………………….

2019 Legislative Updates (VA)

During its 2019 legislative session, the General Assembly approved a number of bills that create changes to the Property Owners’ Association Act (“POAA”), the Condominium Act and the Code of Virginia. The legislation addressed in this newsletter will take effect on July 1, 2019, unless otherwise noted below. Also, please note that Chapter 55 of […]

When It’s Time to Evict or Eject an Owner or Tenant From a Condo (NY)

It’s a very unpleasant but often common situation in community living: the moment when the association has to evict or eject an owner or tenant. It could be for a variety of reasons, but mostly due to the delinquency of the person to pay his or her share in order to keep the community running.  […]