In last week’s post, we discussed the data and hard numbers supporting the influx of apartment buildings over condominium projects in the Puget Sound region. We concluded simple economics-maximizing profit-was the reason the large number of cranes in Seattle and Bellevue are constructing apartment buildings and not condominiums. But that’s not what the building industry […]
Why So Few Condos in Seattle (Part 1)
The record-setting number of cranes visible in the Seattle and Bellevue skylines reflect a construction boom that began in earnest in 2015. Companies such as Amazon, Google, Facebook and other IT darlings are hiring like crazy. Like San Francisco, Seattle is a hot area to live, bringing thousands of new residents each month. With all […]
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 […]
Unintended Consequences (WA)
One of the main takeaways from the Washington Supreme Court’s recent decision in Bilanko v. Barclay Court is that a declaration amendment that is adopted in a manner that does not exceed its legal authority and and does not appear to be borne out of fraud or other wrongdoing cannot be challenged more than one […]
Bilanko v. Barclay Court Owners Association
In last week’s post “Hot Off the Press,” we advised readers that the Washington Supreme Court published on that day Bilanko v. Barclay Court Owners Association,an important decision relating to challenges to declaration amendments involving Washington “New Act” condominiums. The decision can be found here. Over the past week we’ve had time to analyze the […]
Washington Supreme Court Issues Bilanko v. Barclay Court Opinion: 4/28/16
Bilanko is the most recent addition to the ongoing saga in Washington law and the enforceability of condominium declaration amendments under the WCA (RCW 64.34). Bilanko involved a homeowner challenge to the enforceability of a declaration amendment that restricted unit rentals. Read the article…………
Can a Board Member be Excluded From an Executive Session? (WA)
The Washington Court of Appeals upheld a ruling that a homeowners association director who is opposing the board on an issue and is likely to file a lawsuit against the association is not entitled to legal advice from the association’s attorney, nor is the adverse board member entitled to attend board meetings where the issue […]
Association Required to Provide Names and Addresses of Delinquent Owners
The Kansas Court of Appeals held that Kansas law requires a homeowners association to disclose the names and addresses of delinquent homeowners. Although this case was decided in Kansas, it could be an indication of how a Washington court might decide a similar issue. Read the article………..
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 […]
Washington Court of Appeals Resolves Road Maintenance Agreement Dispute
The Washington Court of Appeals ruled in a published opinion last month that a road maintenance agreement did not create a homeowners’ association. It also ruled that a majority of lot owners did not have the authority to amend that agreement to adopt governing procedures. Read the article……….
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 […]
Common Sense Prevails: State of Collapse Nonexistent Thirteen Years before Discovery of Decay
For years, property insurance policies that exclude rot damage have been called upon to cover rot because the policies extend coverage to “collapse”—an undefined term—caused by hidden decay, even if the structure remains standing and in use. Read the article………..
Discrimination Against College Students Legal?
A South Carolina court upheld a condominium restriction prohibiting rentals to college students. The ruling of a South Carolina court in not binding in Washington, but it demonstrates how a Washington court may decide a similar issue. Read the article……….
Member E-mail Addresses & Phone Numbers Subject to Disclosure?
A Utah court recently ruled that under the Utah Nonprofit Corporation Act an association is not obligated to provide a member with the email addresses and phone numbers of other members. Although this case was decided by a Utah court interpreting the Utah Act, it demonstrates how a court in Washington might decide a similar […]
Are Management Companies Debt Collectors?
A federal court in Indiana recently ruled that a management company is not a debt collector subject to the Federal Fair Debt Collection Practices Act (FDCPA or “the act”) if the owner is not delinquent when the management company is hired by the association. This court’s interpretation of the statute is persuasive, but not binding, […]
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 […]
In Home Daycare Does Not Violate Ban on Commercial Activity
Recently, a court in Illinois ruled that two in-home daycare businesses did not create enough traffic to violate a use restriction prohibiting commercial activity in a subdivision. Although this case was decided by an Illinois court and is not binding on Washington courts, it demonstrates how a court in Washington might decide a similar issue. […]
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 […]
Court’s Decision Compels Condominiums to Evaluate Validity of Leasing Restrictions (WA)
Condominiums created on or before July 1, 1990 are governed by the Washington Horizontal Property Regimes Act. The Washington Condominium Act (WCA) governs condominiums created after July 1, 1990. Read the article……………
Court Upholds Condominium Association Foreclosure that Extinguished Bank’s Lien (WA)
In late 2009, a Washington condominium association foreclosed on a first position lien for delinquent assessments and purchased the unit at a trustee’s sale for $8,818.17. Deutsche Bank, which had a junior lien on the unit for $240,000 that was extinguished by that foreclosure sale, was notified of the association’s foreclosure but did not respond. […]
The Great Carnac Would Have Been One Hell of an Insurance Agent
One of Johnny Carson’s greatest bits was when he donned a cape and turban and became the Great Carnac. The Great Carnac had the ability to divine answers to unknown questions. If the Great Carnac was real, he probably would have made a nice living as an insurance agent. Presumably, your insurance agent does not […]
Architectural Review Committees: When Silence is Not Golden
Although summer is the most popular season for construction and it is quickly coming to a close (I am not ready to admit it’s over), architectural review committees (“ARCs”) operate year-round to review and respond to architectural review committee applications. Read the article……………
What Roger Goodell and the NFL Can Learn from HOAs
U.S. District Judge Richard Berman’s recent voiding of New England Patriots quarterback Tom Brady’s four-game suspension caused shockwaves across the NFL. Though the NFL has appealed the judicial ruling, Deflategate is, well, deflated and all but gone. There are, however, valuable lessons to be emphasized for homeowner associations. Read the article………….
Washington Court Affirms Homeowners Association’s Internal Procedures
A Washington appellate court recently ruled in an unpublished opinion that a Mason County homeowners association’s governing documents do not grant owners a general right to appeal the board’s decisions, Read the article………..
HOA Authority to Amend Declaration to Limit Rentals
Read the PDF…………..
Requirements for Due Process Rules Enforcement Procedures for Condominium and Homeowners Associations
As a result of the Washington Condominium Act (RCW Chapter 64.34) (hereinafter referred to as the “WCA”) which became effective on July 1, 1990 and the Homeowners Association Act (RCW 64.38) (hereinafter referred to as the “HOAA”) which became effective July 1995, condominium and homeowner’ associations have been given an alternative to judicial enforcement of […]
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……….
Alternative to What?
Alternative Dispute Resolution or “ADR” is traditionally thought of as an “alternative” to litigation: ways of resolving legal disputes that are generally considered to be simpler, quicker and less expensive. But with many states requiring some kind of ADR after a lawsuit has been filed as a way of attempting to settle cases before trial, […]
An Example of When to Contact Association Legal Counsel
The other day, I was contacted by an acquaintance who asked for my help changing his condominium’s no-pet policy. He explained that he was a board member, and that their condominium’s “bylaws” banned all pets. My first question was whether he wanted my assistance personally or as counsel for his condominium association, to which I […]
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 […]
The Secret to Disclosures in Community Associations, Part 1
As the real estate market begins to come roaring back, real estate disclosure requirements are an important consideration as homes are quickly changing hands in the current market. Oregon and Washington differ in their disclosure requirements, and it is important for associations to understand when and what to disclose and not to disclose. Read the […]
Washington Court: Leasing Restriction on Homes Does Not Apply to Condominiums
The Washington Court of Appeals ruled in a recent unpublished opinion that a leasing restriction on “single-family homes” contained in the declaration of a master community does not apply to condominiums within that community. The Court reached its decision by closely examining the declaration’s definitions section. Read the article……….
Washington Supreme Court misses opportunity to clarify the meaning of “collapse”
Washington State has long been a jurisdiction with no judicial pronouncement as to the meaning of the term “collapse” in a property insurance policy, but that changed last Thursday when the state’s Supreme Court issued its decision in Queen Anne Park Homeowners Ass’n v. State Farm Fire & Cas. Co., 2015 WL 3795796, 2015 Wash. […]
Discrimination Against Children
Associations trying to keep their condominium child free may want to think again. Associations which try to utilize governing documents to discriminate against owners with children could find themselves going up against the Department of Housing & Urban Development (HUD) and the Department of Justice (DOJ). Read the article…………
Don’t Disregard the Formalities of Due Process
The formalities of the law and due process are in place to protect the rights of individuals. When the procedures of due process are skirted it can strip a community association of the ability to enforce its rules or levy fines. Read the article………..
Common HOA Pitfalls, and How to Avoid Them
I am constantly amazed by the ingenuity of the solutions HOA boards come up with to the difficult situations they face. Faced with tight budgets, demanding residents, and difficult personalities, the obvious answers often don’t work. Sometimes, though, we get so focused on a particular problem that we lose sight of the big picture – […]
Court (WA) Resolves Dispute Over Sewer Line Damage Caused by Tree Roots
The Washington Court of Appeals recently issued an unpublished opinion involving downhill homeowners’ claims against neighboring uphill homeowners and a neighboring uphill undeveloped property owner for damage to their residence caused by a clogged private sewer line shared by the homeowners. Read the article………..
Recent Court Decision Interprets Tree Covenants
The Washington Court of Appeals recently issued an unpublished decision that interpreted covenants governing trees in a residential community. Read more……….
CAI Best Practices: Ethics
Simply put, when someone is employing ethics, he or she recognizes what is right and what is wrong and is choosing to do the right thing; however, as a great deal of business ethics literature will attest, “the right thing” is not always straightforward. For example, most ethical dilemmas in the workplace are not simply […]
Washington Court Affirms Application of Statute of Limitation in Condo Act
In a published decision issued last month, the Washington Court of Appeals affirmed a trial court’s application of a one-year statute of limitation contained in the Washington Condominium Act. Read more……….
Waltz v. Tanager Estates HOA and Individual Board Member Liability
The Washington State Court of Appeals, Division III recently published an opinion concerning the standard of care that is required of the board of directors in a nonprofit homeowners association. We summarize that case, Waltz v. Tanager Estates Homeowner’s Association, 332 P.3d 1133 (filed August 19, 2014), here, as it may be helpful to members […]
Washington Court of Appeals Enforces HOA’s Dues Increase Approval Requirement
The Washington Court of Appeals issued a published opinion earlier this year that enforced an approval requirement for dues increases contained in a homeowners association’s bylaws. Read more……….
Washington Supreme Court Limits HOAs’ Ability to Create New Restrictive Covenants
The Washington Supreme Court issued a published opinion this past April that significantly limited the ability of homeowners associations to create new restrictive covenants that have no relation to existing covenants. The case involved a dispute between a homeowners association and a group of owners over the validity of a majority-approved covenant amendment prohibiting short-term […]
Washington Court Rules that Condominium Leasing Restrictions Require 90% Approval
The Washington Court of Appeals ruled earlier this month that 90% owner approval is necessary to amend the declarations of condominiums created after July 1, 1990 in a manner that restricts owners’ ability to lease their units. The Court based its ruling on a provision in the Washington Condominium Act that requires 90% owner approval […]
HOAs and Condos Beware: The Full Cost of Self Management
The number one reason homeowner associations self manage is to “save money.” But this myopic attitude often leads to avoidable problems and unnecessary headaches, and in many instances, higher costs over time. The benefits provided by a professional management company often transcend and outweigh the monetary cost of monthly management fees. The troubles self-managed associations […]