I recently read an article published by U.S. News & World Report titled, How to Win a Fight With your Condo Association – Without Going Broke by Teresa Mears. The article includes some solid guidance. A more accurate but less flashy title might have been – How to influence Association Policy – Without a Fight. […]
Child’s Play
The HOA Act states that, unless otherwise provided in an association’s governing documents, an association may adopt and amend rules and regulations. RCW 64.38.020(1). With such broad authority, how does a board know if a rule goes too far? Is there a rule of thumb? I thought about these questions recently after hearing about an […]
Sidewalks: Keeping Your Liability off the Streets
It’s an all too familiar story: a store customer slips on spilled liquid in an aisle, is injured in the fall, and sues the store. Whether the customer can hold the store responsible depends on a variety of specific facts, including whether the store knew or should have known about the spilled liquid before the […]
Yes, Something Can Be Done About Wildfires
On an autumn weekday here in Deschutes County, Oregon, a chain-saw roar ripped through a pine-scented neighborhood. Tree specialists were removing flammable lodgepole pines in Sunriver, a 4,000-home resort community. With summer crowds gone, the Sunriver Owners Association was reducing wildfire risk. This is a year when huge wildfires, characterized by exceptionally strong winds, continue […]
Winterization Tips for Condos
The last week saw high winds, power outages, and colder temperatures sweep into the Pacific Northwest, announcing that winter is on its way. For condominium owners, cold weather brings a variety of risks that, if left unaddressed, can impact not just their own unit, but the units of their neighbors. Thankfully, there are a number […]
The Mother of All Amendments
Has your condominium or HOA declaration been amended fifteen times? Are you tired of page after page of references to a declarant or developer that has been out of the picture (or out of business) for years, or even decades? Is your association’s declaration so old, poorly recorded or otherwise hard to read, that parts […]
What is the Guarantee in a Guaranteed Maximum Contract?
Associations facing repair projects are often given the option of entering into a guaranteed maximum contract or G-Max contract with their contractor. These contracts are common for repair projects, whether the repairs are required because of defects and damage or because the component is at the end of its useful life. The implication that a […]
Common Pitfalls in Dealing with Major Repairs
Recent experience as litigation and general counsel for numerous associations who are currently tackling significant repairs suggests a couple of common pitfalls. First, don’t skimp on the consultant. While some associations decide that using an engineer or architect to develop a scope of repair and oversee its implementation is too time consuming or an unnecessary […]
Loss Assessment Insurance
You live in a condominium association and happily (ok, probably not “happily”) pay your dues each month. Your board has diligent members and your association is well insured. What could go wrong? Well, lots can go wrong, unfortunately. Life is full of unexpected twists and turns. A slip and fall accident might find the association […]
Unpaid Assessments: Liens & Personal Obligations – Part II
Last week, we discussed how delinquencies affect owners and the lots or units they own. This week, we discuss the effect of bankruptcy, sales and foreclosures on the personal obligation or liens. Generally speaking, an owner’s bankruptcy affects the owner’s personal obligation to pay the amounts becoming due on or before the bankruptcy filing […]
Unpaid Assessments: Liens & Personal Obligations – Part I
Under state law in Washington and Oregon, Condominium and Homeowner Associations have the authority to adopt and amend budgets, and levy and collect assessments from owners for the common expenses. But it can be confusing what happens when an owner does not pay the assessment. This two-part article discusses the personal obligation of the owner […]
Dog Days of Summer
With the mercury hitting record highs this week, I look out my office window and dream of jumping into a nice cool pool. As a community association attorney, my brain automatically shifts from recreation to work mode. I recently helped a client update their community pool rules and thought this would be a good opportunity […]
Association Committees
Committees can be a productive tool for condominium and homeowners associations. Committees, such as budget committees or architectural control committees, can promote increased participation by owners, benefit from unique owner expertise, and help reduce the workload imposed on volunteer board members. However, to properly benefit from the use of committees, it is essential that they […]
Is a Loan Right for Your Community?
At a time when many condominiums are old enough to require major repairs or renovations, community associations can be overwhelmed by the cost. The word is definitely out that a community association loan may be a viable option for many communities. In contrast to a lump sum special assessment, the ability to pay a loan […]
Guiding Principles for Enforcement Hearings
Since our enforcement hearing presentation at WSCAI’s Made for Managers Day a couple of weeks ago, we have been getting a lot of feedback on the variety of procedures employed for community association enforcement hearings, generally with the question “is it okay to do it this way?” First, a big thanks to all of you […]
Summer is Prime Community Time
One of the primary objectives of a community association board of directors is to facilitate and encourage a sense of connection within their physical community. There are multiple ways a board can boost community, including using committees comprised of homeowners, utilizing a robust communication system that may include a website or monthly newsletter that keeps […]
Consider the Source
The internet can be a wonderful resource but BEWARE: Not everything you read on the internet is true or accurate. It is also not a substitute for professional advice. Sometimes, bad internet “advice” is easy to spot. For example, hopefully none of us will fall for headlines like: “How spending $162,301.42 on Clothes Made Me […]
Online Harassment and Risk of Liability Under Fair Housing Laws
My colleagues and I have blogged about the importance of recognizing requests for reasonable accommodations/modifications, carefully and thoughtfully considering them, and properly responding in a timely manner. We like to think our posts on this topic have helped a few association boards make better decisions, but if the case discussed below is any indication, more […]
Pre-Existing Conditions
It is difficult to turn on the news or open a newspaper (do people still do that?) without hearing a discussion of pre-existing conditions. The discussion relates to replacement of the Affordable Care Act (ACA). I am fortunate that employer-provided health insurance isn’t impacted by the ACA, as my affinity for burritos could actually qualify […]
Here Comes the Sun
In preparation for writing this week’s blog post, I googled songs about the sun. Dozens of cheery, happy songs immediately sprung from the internet. Out of curiosity, I also googled songs about rain. A few select, dreary, and depressing songs popped up. I decided on Here Comes the Sun by the Beatles. The reason: we […]
Election Got’cha! (WA)
This is the time of the year when many community associations hold board member elections. The process is easy, right? The association identifies the number of open positions, solicits nominations, sends out a meeting notice with candidate information and proxies in accordance with the governing documents (usually bylaws), and conducts the meeting following protocols outlined […]
Discover the Truth About Your Contractor (WA, OR)
A recent newspaper article warned homeowners of an inspector who had been fined more than $80,000 by Oregon’s Construction Contractors Board (or “CCB”) for performing illegitimate inspections and using the license number of an inspector who had the same first and last name. It is a reminder that licensure comes with important consumer protections, including […]
Case Study: Harrison West Tower Re-pipe
The Harrison West Condominium Association required a re-pipe of their historic 24-floor residential tower situated in the desirable PSU area of Portland Oregon. Community Engineering Services, PLLC formed a team with engineering specialists Dan Robles, PE, David Coles, PE, Architect Richard Bosch, AIA and a CM consultant. Through the client’s commitment to research, analysis, and […]
Galvanized Pipe Condition Assessment
Community Engineering Services, PLLC was retained by a home owners association representatives to support a Galvanized Pipe Condition Assessment for a high-rise condominium in the Pacific Northwest region of the United States. The results published here were presented to a quorum of the HOA Board in November 2012. Read the article……………
‘Tis the Season of the Annual Meeting
Reaching the end of the contentious and hotly contested national election was no doubt a relief for many of us. However, for our community association clients, there is no rest for the weary because late winter and spring is association annual meeting season! Read the article………..
Sure, you can read it but this is our STANDARD LANGUAGE
We have all seen onerous and unfair language in contracts, waivers, releases, invoices, disclaimers, disclosures, notices. Sometimes it is in the dreaded “fine print.” Sometimes it is in large bolded, underlined print. When one party challenges such language, we often hear the response: This is “industry standard.” Don’t agree to proposed language based on an […]
Oregon High Court Clarifies How To Read the Four Corners of a Complaint
On December 8, 2016, the Oregon Supreme Court issued a decision, West Hills Development Co. v. Chartis Claims, Inc., 360 Or. 650 (2016), clarifying what allegations in a construction defect suit will implicate coverage under an “ongoing operations” additional insured endorsement. In West Hills, the complaint at issue regarded damages suffered by the plaintiff HOA, […]
Dealing With Ice is Anything But Neat
Those of us in the Northwest were recently hit with the first round of winter snowstorms. My children are avid weather watchers (in hopes of future school closures), so I understand that we are in store for several more storms in the coming months. Winter snow and ice inevitably result in a host of insurance […]
Tree Trouble – Part II, Self-Help
In part one of our three-part series on Tree Trouble, my colleague David Silver wrote about Timber Trespass. In this post, I’m going to discuss self-help. Self-help is the legal term that describes “taking the law into your own hands”—literally. In this context, it would include a property owner getting out their pruning shears or […]
Rigged (HOA!) Elections
A few months ago, the Chairman and Secretary of a Pennsylvania community association were convicted by a jury of election fraud. The directors schemed to fill out ballots to stack the deck in upcoming board elections. An attorney in Las Vegas plead guilty to a similar charges a few years back. He was part of […]
I Don’t Think We’re in Kansas Anymore
Kansas, of course, is in the heart of Tornado Alley and home to the most famous tornado of them all: the one that swept Dorothy into the Land of Oz. Recently, however, Oregon and Washington felt the effects of multiple tornadoes. Two tornadoes touched down in Oregon in October. Tornado warnings were also issued for […]
Neutrality
Association boards deal with a variety of unit owner behaviors and personalities. Some are positive, some are negative, and some are downright inexplicable. This can lead to both real and perceived bias. Regardless of the behavior or how much the board likes or dislikes an owner or their actions, the Board has an obligation to […]
The Business Judgment Rule
Community Association board members frequently ask, “What is the standard we’re held to when we vote and make decisions?” The standard of conduct in Oregon and Washington is colloquially known as the “Business Judgment Rule.” Application of the Business Judgment Rule comes into play in nearly all board decision making from deciding how far to […]
Reductions in Property Value Due to the Presence of Construction Defects
Last month the Oregon Supreme Court recognized and seemingly affirmed a strategy to reduce taxable property value due to the existence of construction defects. In Oakmont, LLC v. Oregon Dept. of Revenue (2016), the owner of an apartment complex valued at approximately $21million negotiated with the county assessor to reduce the taxable value by sixty […]
The Good, the Bad, and the Ugly of the Insurance Discovery Rule
I have a number of “First Party Insurance” claims sitting on my desk (e.g. an Association pursuing its own carrier for discovered property damage). Many of these involve the “discovery rule.” Having dealt with this rule on a number of occasions, I’ve discovered the good, the bad, and the ugly of this rule. Read […]
Now Might be a Good Time for an Association Loan
Interest rates have never been better. As a result, many owners have jumped at the chance to refinance their homes or condos at seriously low rates. Yet, individual owners are not the only ones who can benefit from these low rates. Community association loan rates are probably lower than you think. Some of our associations […]
Changes Coming in FHA Condominium Guidelines?
If you’re a listener to “Condo and HOA Buzz” you heard over the past two weeks that Congress recently passed a bill that includes important provisions affecting all condominiums in the country. On February 2, 2016, HR 3700 was approved by the House of Representatives 427-0. The proposed law would streamline the FHA’s certification requirements […]
Explosions in the Sky
Setting off fireworks is a bright, colorful way to celebrate certain special occasions. While most commonly associated with the 4th of July, it is not unusual for people to set off fireworks on New Year’s Eve and other holidays, as well. When the Seahawks won their first-ever Super Bowl in 2014, the Seattle sky was […]
Deciphering Association Records Requests
This past weekend I spoke at the Community Association Institute’s (“CAI”) South Sound Law Day on the topic of association records. Based on the number of questions from the audience on owner requests to obtain or review records, I thought I’d summarize some highlights here. Read the article………….
Marijuana in Communities
We are often asked whether a condominium association may prohibit cigarette smoking in common areas, or in units or single family homes. Now that using marijuana is legal in Oregon and Washington, some associations are wondering if they can or should specifically ban marijuana usage too. There are several things to consider. Here are a […]
Association Records Requests
It is common for issues between community associations and owners to escalate into disputes when there is a request by the owner to review association records. On the one hand, a board may not understand the obligation and elect to deny a records request outright. On the other hand, an owner may have unreasonable expectations […]
Can’t We All Just Get Along?
There are certain situations in life that tend to bring out the worst in people, and one of those is when neighbors just cannot seem to get along. Whether at an HOA or condominium, when people of diverse personalities and interests, who would otherwise not be connected in any way, are forced to live in […]
Builder’s Pact Doesn’t Nix Insurer Liability, Ore. Justices Say
An Oregon condominium association’s agreement to not execute part of a judgment against a builder in construction defect litigation doesn’t automatically erase the builder’s liability or that of its insurer, the Oregon Supreme Court ruled Thursday, upending a 42-year-old precedent. http://communityassociations.net/wp-content/uploads/2015/11/2015-s061273-0.pdf
Oregon Supreme Court bars plaintiff from executing on covenant judgment against the defendant’s insurer
The Oregon Supreme Court recently answered a question certified to it by the Ninth Circuit Court of Appeals, which asked whether a settlement agreement that released an insured from liability could be amended to revive the liability of the insured so that the plaintiff could seek recovery from the insurer. The Oregon Supreme Court concluded […]
An Update on Hoarding
A couple of years ago Barker Martin anticipated that hoarding would be an issue for community associations to contend with under laws like the Americans with Disabilities Act and Fair Housing Act. [Link] Since then, the issue has continued to garner greater attention in its effect on the community at large. Read the […]
Legalese in Governing Documents
Consider the following disclaimer on a law firm’s website: Material contained herein is not offered as legal or any other advice on any particular matter. Material included here is for informational purposes only and is not necessarily an indication of future results.
What You Don’t Know Can’t Hurt You, But What You Do Know Most Certainly Can
In almost every walk of life, knowledge is something people seek to obtain. Francis Bacon famously, and succinctly, coined the phrase “knowledge is power.” But in the topsy-turvy world of insurance, another famously succinct phrase may be more applicable, “ignorance is bliss.” (Thomas Gray). Read the article……….
Ninth Circuit Finds Defects in the Construction of a “Known-Loss” Exclusion
A mason who performed work on a residential project was notified in 2006 that cracks had developed in his work. Several months later, the mason purchased a commercial general liability policy that expressly excluded coverage for property damage, if an insured “knew that the … damage had occurred, in whole or in part.” In 2007, […]
The Secret to Disclosures in Community Associations, Part 2: Practical Pointers Concerning Disclosure Requirements
As mentioned in last week’s submission, associations are frequently confronted with whether something must be disclosed, could be disclosed or should be disclosed. Some questions are easy. For example an Oregon Condo must disclose to prospective purchases, the existence of car charging stations and the owner’s related responsibilities. That’s a black-and-white question and answer, but […]
Wheelchair Ramps
The media has covered cases across the United States involving homeowners associations running into conflict and legal problems over wheelchair ramps. Just this past month, the media featured the Broadnax family who retrofitted their house with a wheelchair ramp in an upscale neighborhood in Brentwood, Tennessee. After Mr. Broadnax returned home from rehabilitation following brain […]