Over the last year, lots of industry professionals were wondering what would happen with manager licensing and whether it would actually sunset on June 30, 2019. Many predicted new legislation would be introduced in 2019 extending the CAM program, with perhaps a few tweaks. For those of you who predicted new legislation, you were correct. […]
Recent Washington Court Decision Examines Whether Lien Claim on Condominium Unit Was Frivolous (Subject to Release) or Excessive (Subject to Reduction)
On February 11, 2019, Division One of the Washington Court of Appeals issued an opinion in the case of Woodley v. Style Corp. d/b/a Servpro of Shoreline/Woodinville, No. 77352-6-I (Wash. Ct. App. Feb. 11, 2019). The case highlights the care that should be exercised in filing a lien claim for services furnished to improve a […]
Permitted Breach of Rules by Association Does Not Create Liability for Resulting Accident (FL)
Lack of parking can be an extremely troublesome issue for many South Florida community associations. For HOAs with rules that prohibit on-street parking, the dearth of available spaces for residents and their guests can leave many homeowners feeling stymied and annoyed. Read the article………………………..
The Best Defense Against a Charge of Defamation (NY)
In these contentious times, politics at all levels – even at the level of co-op and condo board elections – tend to get ugly. Charges and counter-charges circulate with lightning speed. One recent condo board election led to a lawsuit over the truth of charges emailed by one of the candidates. The case turned on […]
Insider Real Estate and Community Association Law Update (FL)
Condominium Association Faces Unit Owner Class Action Pinnacle Condo. Ass’n, Inc. v. Haney, 44 Fla. L. Weekly D203 (Fla. 3d DCA Jan. 9, 2019) After Hurricane Wilma and Hurricane Katrina caused structural damage to the four high-rise towers of the Pinnacle Condominium in 2005, the Condominium Association entered into two contracts to repair the damage. […]
New Final Rule Offers Welcome Relief And Guidance On Private Flood Insurance Requirements
The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Farm Credit Administration and the National Credit Union Administration (the Agencies) recently released a final rule offering significant relief and guidance to institutions in connection with accepting private flood insurance for properties […]
Ellsworth Mews Townhomes is accused of discriminating against a resident who has a disability (PA)
Residents are suing a townhouse/condominium association, citing alleged breach of contract, disability discrimination and retaliation. John Doe, Jane Doe and Mary Doe filed a complaint on Jan. 25 in the U.S. District Court for the Western District of Pennsylvania against Ellsworith Mews Townhomes Condominium, aka Ellsworth Mews Townhomes Association and others for alleged violation of […]
Recent Changes to the Marketable Record Title Act (FL)
Imagine not being able to collect homeowners’ association dues or enforce rules in your community. For homeowners’ associations approaching thirty (30) years of age, this threat is more than a cause for sleepless nights and may become a reality if covenants are not preserved in a timely fashion from the operation of The Marketable Record […]
DBPR’s Condominium Division Increases Disciplinary Civil Penalties Against Associations (FL)
Many community associations unwittingly operate contrary to the requirements of Florida law. Those mistakes can prove costly. Pursuant to section 718.501(1)(d)(6), F.S. and Chapter 61B-21 of the Florida Administrative Code, the Division of Florida Condominiums, Timeshare and Mobile Homes (“Division”) sets forth disciplinary guidelines and civil penalties against condominiums and cooperatives for violations of Florida […]
MCL 559.201 and MICH ADMIN R 559.511: Is Your Reserve Fund Underfunded? (MI)
In Michigan, the laws related to the governance of the formation and operation of condominium projects are found in the Michigan Condominium Act (the “Act”), MCL 559.101, et seq. MCL 559.205 of the Act requires a condominium association to maintain a “reserve fund,” to be set aside for major repair and replacement of the common […]
Condo owners lose key remedy for construction problems
A recent Illinois Supreme Court ruling blocks a route condo owners have used for decades to seek financial recovery for defects in construction, attorneys say. In its Dec. 28 opinion on a case between an Evanston condo association and a manufacturer of aluminum windows and doors, the court ruled there is no implied warranty on […]
Recent California Court of Appeal Ruling Limits Anti-SLAPP Protection for Actions by Board of Directors
The recent unpublished opinion of Chemers v. Quail Hill Community Association et al. (2018) shines some light on the oft-misunderstood California Anti-SLAPP statute and its effectiveness as a defense for actions by a homeowners association’s board of directors. The Fourth District California Court of Appeal held that certain actions by the board in a dispute […]
Litigation over lake level in hands of appellate panel (MN)
Attorneys representing the Department of Natural Resources (the appellant) and the White Bear Lake Restoration Association (the respondent) chose to spend their minutes arguing over the Minnesota Environmental Rights Act (MERA). That state law provides civil remedy to protect air, water, land and other natural resources from pollution, impairment or destruction. In its seventh year […]
Lawsuit blames companies for underground fire (AR)
A Bella Vista man sued today to force two companies and the Bella Vista Property Owner’s Association to pay the cost of extinguishing and cleaning up an underground fire at a one-time stump dump on Trafalgar Road. The cost of the work could be between $21 million and $39 million, Gov. Asa Hutchinson has said. […]
Condo owners win appeal over revising homeowner rules (FL)
A group of condominium owners have won a court appeal after the state’s Department of Economic Opportunity claimed that the association was not entitled to amend or revise its property owners rules. On Jan. 25, the U.S. District Court of Appeal of Florida, Second District granted a reversal of a lower court ruling that found […]
Malicious Prosecution – Can It Result From Filing A Lis Pendens? (SC)
Those of us with any significant history of practice in South Carolina have made an allegation or defended against an allegation of slander of title. Such allegations, and actions for slander of title, were significantly limited, however, with the advent of Pond Place Partners.[1] There, the South Carolina Court of Appeals found the filing of […]
New Hampshire Condo Associations Need Foreclosure Authority to Make the Superlien Effective for Them
If you look at a list of states that have a condominium superlien, you will find New Hampshire among them. But you can’t judge a book by its cover – and you can’t judge a statute by its name. All superliens are not equal. And the New Hampshire superlien includes some differences of which New […]
New Mexico governor approves previously vetoed initiatives
(Including) —A bill from Sen. Mimi Stewart of Albuquerque would protect homeowners from being responsible for unpaid homeowner association fees from previous owners.
Appeals court reverses order that denied fees to two South Florida attorneys in condo association dispute
Florida’s Fourth District Court of Appeal recently said the Palm Beach County Circuit Court erred when it denied a petition filed by two South Florida attorneys for fees regarding a condominium association dispute. In a Jan. 30 ruling, Judge Burton Conner reversed the lower court’s decision in the lawsuit filed by Harvey Lee Davis and […]
Florida Law On Pre-Turnover And Post-Turnover Community Association Contracts
Community associations are businesses. Not only are they corporate entities, but they collect revenue (i.e., owner assessments) and incur expenses planned for through a yearly budget. Just like any other business, community associations find themselves in unfavorable contractual relationships with other entities. Unique to community associations, these entities often find themselves in undesireable contracts entered […]
Michigan Court upholds condo association fines for unauthorized wind turbine and generator
In Oak Valley Estates Homeowners Association v Georgetta Livingstone, Unpublished Opinion of the Michigan Court of Appeals, Docket No. 338292 (January 22, 2019), the Michigan Court of Appeals upheld a monetary judgment in favor of a condominium association, for fines and attorney’s fees and costs, after granting an injunction requiring that a co-owner remove solar […]
Creating Conditions That Lead To A Horrific Accident Does Not Always Create Legal Liability (FL)
From a recent Fourth District Court of Appeal case, Seminole Lakes Homeowner’s Association, Inc. v. Esnard, decided December 19, 2018, we once again learn that application of prior case law sometimes creates strange and convoluted results. Just because an association negligently creates obvious conditions for an accident to occur does not necessarily mean the association […]
Managers as Trial Witnesses
Community managers frequently ask about their role in a trial. They also want to know how to best prepare and present themselves in the unfamiliar setting of a court room. The purpose of this article is to provide some guidance on these topics. If I were to distill the answer to these questions down to […]
New Disclosure Requirements Managers Need to Know (CO)
As a community association manager you may start to see selling owners requesting additional documents as part of their upcoming closing on their unit. This is because the Colorado Real Estate Commission approved a new Contract to Buy and Sell Real Estate (Residential) effective January 1, 2019 (“Buy Sell Contract”). The new Buy Sell Contract […]
Law Firm Not a ‘Debt Collector’ Under FDCPA, says Fifth Circuit
A law firm not specializing in debt collection activity is not a “debt collector” under the Fair Debt Collection Practices Act because it was not “regularly” engaged in debt collection, according to the U.S. Court of Appeals for the Fifth Circuit. The case is Reyes v. Steeg Law. Plaintiff Nicole Reyes filed a class action […]
Fed. judge flushes homeowner association’s lawsuit over toilet wipes (NY)
A federal judge has dismissed for lack of standing a proposed nationwide class action lawsuit on behalf of homeowners claiming a range of companies falsely advertised their toilet wipes as “flushable.” U.S. District Judge Joseph Bianco in Central Islip, New York in an order on Monday said the homeowners had failed to allege any imminent […]
Woodlands floor collapse victims pursue legal action during recovery (SC)
The Greenville resident and University of South Carolina junior was on fall break and visiting friends in Clemson. She decided to join them at a party for Clemson’s Homecoming weekend. The next morning, that party had become national news. The floor at the clubhouse of the Woodlands condo complex, where the party was hosted, fell […]
Condo Terminations – What Are They and How Do They Work? (FL)
The Miami Herald published an article last year – “Real Estate Developers Ran Out of Waterfront Property. Now They Might Want to Buy Yours” – and the title says it all. This complicated process is called condominium termination. It’s difficult for real estate investors to find vacant waterfront development sites in Miami and Miami Beach. […]
New HOA law in effect in South Carolina
A new Homeowners Association law is now in effect throughout South Carolina. The law, first introduced in March 2017 and passed in May 2018, requires HOAs to be more transparent and gives neighbors a new way to report problems with their HOA. Some of the new requirements for HOA’s include documenting meetings and putting any […]
AB 2912 Fraud and Embezzlement//Fidelity Bonds & Financial Review (CA)
It is no secret that community associations are often targets for embezzlement. But they are not alone. Newspaper articles tell us that it happens to various types of businesses and organizations, even attorneys and lawyer/bar organizations. Fraud and embezzlement seems more likely to occur when no one is watching those that control the checkbooks. And […]
Strict labor laws and aging buildings put condo associations at risk (NY)
Condo associations in New York can have a tough go of it when it comes to strict labor laws that put the onus on them if a worker gets injured on their property, among other risks that are especially heightened in older buildings. Read the article……………………….
Tools to Help Co-ops and Condos Comply With City Regs (NY)
Complying with New York City’s rules and regulations has always been a big part of a property manager’s job. But now, as regulations proliferate at a dizzying rate, many property management companies have staffs dedicated to compliance, and those staffs frequently rely on computer software and the backing of compliance companies. The added cost, according […]
California Legislature Fixes the Law on Member Notice & Notice of Rule Changes-Amends Civil Code §4040 and Civil Code §4360
Through SB 261, the California Legislature fixed some issues with prior legislation and took a step closer to efficiency. This bill became effective in January 1st and amends the following existing sections of the civil code as stated: Read the article…………………..
Court Strikes Down HOA’s Rule Banning Personal Trainer From Fitness Center (FL)
Is a personal trainer in a fitness center like a call girl sitting at a clubhouse bar? This comparison was drawn by the trial court in its decision to grant summary judgment in favor of a homeowner’s association as to whether a personal trainer is an invitee or a licensee. Read the article………………….
HOA Obtaining Preliminary Injunction To Aid Fumigation Of Separate Units Was Prevailing Party Entitled To Fee Recovery (CA)
Although we do not know the amount of fees awarded below, the homeowners in Windham at Carmel Mountain Ranch Assn. v. Lacher, Case No. D071799 (4th Dist., Div. 1 Jan. 16, 2019) (unpublished) obviously were dismayed when the lower court awarded HOA fees after the trial judge issued a preliminary injunction in favor of the […]
New Boston Ordinance Regarding Electric Vehicle Charging Stations (MA)
As one of the final acts of the 2017/2018 Massachusetts legislation session, the House and Senate passed and the Governor signed a City of Boston Home Rule Petition relative to electric vehicle charging stations at condominiums and other community associations in Boston. It is important to note that this bill only pertains to the City […]
January, 2019: Insider Real Estate and Community Association Update
After they were hit in a rear-end car accident inside the Seminole Lakes Community, two plaintiffs sued the Seminole Lakes Homeowners Association claiming that it negligently allowed parking on both sides of the streets, in violation of rules in the governing documents. The case proceeded to trial and a jury returned a verdict in favor […]
Community Associations’ Liability for Sexual Harassment Under HUD’s Hostile Environment Rules
In the summer of 2013, Kayla West began looking for a house to rent in Georgia. She came across a rental home owned by DJ Mortgage, LLC, and contacted Gene Andrews, DJ Mortgage, LLC’s property and leasing manager. Ms. West entered into a lease agreement for the rental property, and between August 2013 and October […]
Illinois Supreme Court Reverses 35 Years of Precedent Regarding Homeowners’ Implied Warranty of Habitability
On Dec. 28, 2018, the Illinois Supreme Court held that subcontractors that do not contract directly with a homeowner cannot be held liable to the homeowner for breach of the implied warranty of habitability. The decision in Sienna Court Condominium Association v. Champion Aluminum Corporation (2810 IL 122022) expressly overrules 35 years of precedent from […]
Is Your First Conflict-of-Interest Report Past Due? (NY)
One big thing. In an effort to snuff out conflicts of interest on co-op and condo boards, the state Legislature passed a new law requiring annual reporting of all contracts in which a board member has a financial interest. The law went into effect on January 1, 2018, and board’s first annual report was due […]
Super-Priority Issues Linger in D.C.
With the issuance of its decision in Chase Plaza Condominium Ass’n v. JP Morgan Chase Bank, N.A., 98 A.3d 166, (D.C. 2014), the Court of Appeals for the District of Columbia upended the established manner in which condominium liens have been handled in the District. In Chase Plaza, the court interpreted D.C. Code §42-1901 and […]
Avoiding Defense of Selective Enforcement (FL)
A common defense raised by owners who find themselves on the wrong side of a covenant enforcement action is to allege an association’s failure to enforce the covenant at issue against all violators and instead only selectively enforcing it. The defense of selective enforcement is based upon a case decided by the Supreme Court of […]
Failure to Comply With Cooling Tower Regs Lands a Co-op in Court (NY)
Members of co-op and condo boards never tire of complaining about unfunded mandates imposed by the city government. One of the most unloved is Local Law 77, which was passed in response to a deadly outbreak of Legionnaires’ disease in the Bronx in 2015. It imposed some of the nation’s toughest standards on the maintenance […]
Judge makes recommendations about motions in Hunters Run condo association case (FL)
A judge in the U.S. District Court for the Southern District of Florida recently recommended granting parts of motions filed in litigation between a real estate agency and two property owner associations over condominium properties in the Palm Beach County community of Hunters Run. In his 43-page report and recommendation issued Dec. 22, U.S. District […]
Judge rejects motions to dismiss Unicorp’s move to end Colony condo association (FL)
A Circuit Court judge on Thursday rejected motions from several Colony Beach & Tennis Resort unit owners to dismiss a legal proceeding by Unicorp Colony Units LLC to dissolve the former resort’s condominium association. Read the article……………….
Board Members, Property Managers: Be Aware of New Community Association Guidelines (FL)
Board members and property managers of condominium communities need to be aware that the state of Florida’s Department of Business and Professional Regulation issued revisions to rules pertaining to violations and penalties, 61B-21, Condominium Resolution Guidelines for Unit Owner Controlled Associations, which went into effect Dec. 5, 2018. Read the article…………………….
Coop and Condo Right to Seek Legal Fee Reimbursement may have new life (NY)
As we previously reported, the New York Appellate Court that oversees the Manhattan and the Bronx Supreme Courts issued a unanimous decision at the beginning of November, 2018, which may significantly impact the right of cooperatives, and likely condominiums, that try to seek the reimbursement of legal fees from defaulting shareholders or owners. In Krodel […]
Indemnification Provisions and the “Vouching In” Rule – – The Most Dangerous Contractual Provision You Probably Don’t Know About
If you have been in the business world for any reasonably length of time, or if you have leased property or entered into a contract for construction or remodeling, you have probably been a party to a contract that contains an indemnification provision. Read the article…………………
Impact of the Government Shutdown on Community Associations
The partial government shutdown impacts several federal agencies and programs important to community associations. Homeowners and buyers, board members, community managers, attorneys, and other business partners may notice delays in condominium loan certification, flood insurance policy changes, drone licensing approvals, and more. Read the article………………….
Florida Federal Court Finds Insurer Must Defend Contractor in Defective Condo Construction Suit
The United States District Court for the Middle District of Florida recently granted summary judgment in favor of developer, KB Homes, ruling that Southern Owners Insurance Co. must defend KB Homes under various Commercial General Liability policies. Read the article……………..