Last week Gina Botti blogged about the importance of properly recording an association assessment lien. Although CCIOA states that a lien is ‘perfected’ or in place upon the recording of the association’s Declaration, it is still important to prepare and record a Notice of Lien to ensure that the lien is not overlooked upon the […]
Association Safeguards: A 12-Step Program to Protect You and Your Association
This article addresses those key affirmative steps a board, on behalf of the association, should take in order to protect the association. Although the needs of every community are inherently different, the following steps are applicable to every association and will help boards stay informed about the status of their associations. Read More……
Private Loans from Co-op / Condo Reserves: Good Idea? Oh, no, no, no, no
A board member wished to borrow a portion of the reserve fund for a personal business transaction. He agreed to (a) pay seven percent interest on the money, (b) repay the money within 30 days of a demand by the board, (c) execute an assignment of rental income from a rental property he owned, (d) […]
Make Sure to Vote – At Your HOA Annual Meeting!
If you are like me, election day couldn’t come soon enough. While I’m truly a political junkie, the negative campaigning became so overwhelming that even I muted the TV during commercials and we quit answering the incessant political calls. While the negative campaigns were distasteful and the truth became something that was optional, the real […]
Political Yard Signs: When Your HOA Can Tell You to Take Them Down
Ah, November! The month when Americans put up political yard signs hoping to sway their neighbors’ votes — until the community association tells them to get those signs out of the yards. If you’re one of the more than 60 million Americans — about 1 in 5 U.S. residents — who live in a homeowners […]
Why you need to pay attention to the money
David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced that the owner of a Kansas City, Missouri business was sentenced in federal court today for embezzling more than $750,000 from dozens of homeowners associations. Dale Palmer, 54, of Kansas City, Missouri, was sentenced by U.S. District Judge Nanette K. Laughrey […]
A “Tail” of Two Doggies: Lessons of Both the Absurd and Practical in Dealing with Pet Cases
In my legal practice, few cases are more prone to absurd happenings, bizarre government policies, and expensive litigation than pet cases. Well meaning associations set up rules to either prohibit pets all together or to limit their size, often in an effort to avoid having excessively large, loud, or potentially dangerous animals in the community. […]
Tax-exempt, or Not-for-profit?
We are frequently asked, “If we are a not-for-profit corporation, why do we still have to pay taxes?” Tax exempt and not-for-profit are two completely different concepts in the world of community associations. The notion of being not-for-profit stems from the fact that the association’s income is only the maintenance fees collected from the members. The […]
How to avoid becoming a headline – or successfully dealing with it if you do
As you know, from time to time, HOAs end up in the news for perceived abuses to residents of an association or to question actions taken by the board or management. While the allegations in the news coverage may or may not be true, it’s rare to see a flattering story about an HOA. As […]
Court Grapples with Distinction Between Repairs and Capital Improvements
The Washington Court of Appeals issued an unpublished opinion earlier this month concerning a condominium association’s authority to fund a major construction project without a prior vote of its owners. The project involved the installation of a $2 million “rain screen” building envelope system Read More……
The 40-Year Recertification of Condominium Buildings in Miami-Dade and Broward
As the cranes involved in our last building boom disappear from our skyline, making way for the appreciation of new buildings resulting from settling construction activity, attention is drawn to past construction booms in our region. Decay resulting from the element of time — exacerbated by our proximity to the salty ocean air — has […]
Be Nice to Grumps!
Every Board member knows there are some people who are simply grumps. They enjoy creating a negative environment. While Board members are only human, it’s important to remember to treat grumps the same as any other member of the association. If a Board treats a grump differently, that Board could end up with a case […]
Can Your HOA Put Its Mitts on Your Mitt Sign?
Ah, November! The month when Americans put up political yard signs hoping to sway their neighbors’ votes — until the community association tells them to get that sign out of the yard. If you’re one of the more than 60 million Americans — about one in five U.S. residents — who live in a home […]
Neither a Community Association Nor its Management Have Liability under the Federal Fair Debt Collections Practices Act
We have had to extricate several of our clients from claims or lawsuits relating to the federal Fair Debt Collections Practices Act (FDCPA). It is well settled law that the FDCPA applies to the collection of delinquent and unpaid assessments for condominium and homeowner associations. However, the FDCPA does not apply to collection efforts which […]
Disaster!
What does a community association board of directors do if a natural disaster wipes out all or a portion of its association? When and where is it likely to happen? Is there a plan for dealing with it? Is this a problem to worry about? Yes, worry about it. A natural disaster can strike a […]
Don’t Do This! How Not to Manage a Construction Project
“Don’t try this at home!” This warning, which scrolls under some television ads and programs, would be equally appropriate advice for the way one community association board managed a major construction project. (This is not actually one specific board but a composite, reflecting the experiences of several different boards.) The trustees obviously didn’t set out […]
Exposing Common Myths in HOA Operations
We frequently hear about and see associations acting on myths that seem to persist despite being clearly incorrect. Here are some of those myths and misunderstandings and the truth behind them: Read More……
Wildfire App catches Fire
The 2012 wildfire season was one of the worst on record, leaving the people at the American Red Cross busy devising new and innovative ways to get information to people faster. As a response to the growing use of technology, they have created the “Wildfire App.” Read More……
Assessment Collections Practices are Leading to Lawsuits
Recent lawsuits involving community associations have created quite a stir among condominiums and homeowners associations, as owners have alleged in the suits that law firms and associations are improperly seeking to collect unpaid assessments, interest and other charges in violation of Florida law and the governing documents of the associations. The lawsuits seek to recover […]
New Smoking Law Affects All Santa Monica Condos
Santa Monica has passed a law with new smoking rules that affect all multi-unit housing, and that includes condominiums. Follow this link to review the new municipal code. Follow this link to review a related notice from the City of Santa Monica. What follows is a description of the new law as it impacts condominiums. […]
Bound by free will
I would never agree to be part of a homeowners association that might limit my right to root for the New York Giants, support the party of my choice or inflate a giant turkey to celebrate Thanksgiving. The Jasinskis chose to move into a neighborhood with a homeowners association. They chose to abide by the […]
Last of the Breed (or a Total Corruption of It)
Linda Stover needs help. She’s president of the Clayton Crossing Condominium Association, which has it’s annual meeting in November, and per usual, she expects no one in the Ellisville, Missouri community to step forward and fill a vacancy on the three-person board. Read More……PDF
Knowledge, Participation and Solutions Empower Homeowners
Last Thursday, as Chair of CAI’s Colorado Legislative Action Committee, I served on a panel for a Town Hall Meeting hosted by State Representatives Angela Williams, Su Ryden, Rhonda Fields, Nancy Todd and State Senator Morgan Carroll. The topic of the evening revolved around HOAs, the problems folks living in them sometimes experience and whether […]
Anatomy of An HOA Dispute Run Amok
After 11 years of battling, a judge has finally resolved an outstanding covenant enforcement dispute which involved many court hearings, a jury trial, two appeals and then a second trial. That’s correct, 11 years of an owner and an association going round-for-round on who was right. Read More……
Assessment Collections Fees in “No-Cost” Collections Contracts
The United States Bankruptcy Court in California recently ruled in a case that may impact the terms under which Homeowners Associations (“HOAs”) contract with collections companies to pursue delinquent assessments. Read More……
Aggressive Strategies with Foreclosure Properties Helping Many Associations
During the slow recovery in the housing market, many community associations are taking more aggressive approaches with foreclosures and rentals to recover delinquencies and gain financial strength. These associations are using their lien rights in order to avoid the issues that arise with bank delays in foreclosure cases, as delays have become the norm in […]
Of Course You Don’t Need Workers’ Compensation Insurance – Or Do You?
We occasionally get questions about whether a homeowners association should obtain its own workers’ compensation insurance, and when we recommend “Yes,” the inevitable question is “Why; we don’t have any employees?” Read More……
Arbitration of Construction Defect Claims Against Developer and General Contractor
Denver District Court orders arbitration of construction defect claims in Glass House Residential Association v. Alta Riverfront LLC et al, no. 2012CV1531. The Glass House ruling provides direction for developers and general contractors to choose a preferred method of dispute resolution for construction defect claims. The Denver District Courts recently upheld mandatory arbitration in a […]
How a condominium association can beat the bank to money
In today’s economy, banks and courts are processing foreclosures at a historically slow pace, evidenced by the New York Times article predicting that it will take close to 62 years for the foreclosures currently pending in New York State to come to a disposition. Generally, when a unit is being foreclosed upon by a bank […]
Reserve Studies: Like a FICO Score For HOAs
A Reserve Study is one part physical analysis and one part financial analysis. For the last 30 years we’ve helped thousands of clients across the country anticipate and prepare for their community’s major repair and replacement costs. Armed with this knowledge they can make accurate disclosures to homeowners and set their monthly dues accordingly. However, […]
Can condominium associations ban religious symbols?
The Supreme Court of New Jersey addressed this situation in A Committee For A Better Twin Rivers, v. Twin Rivers Homeowners’ Association. In the Supreme Court’s decision, authored by Justice John E. Wallace, Jr., the Court determined that even in light of New Jersey’s broad interpretation of its constitutional free speech provisions, the “nature, purposes […]
Even if they disagree with the board, condo owners must pay special assessments
The New Jersey Appellate Division has restated a basic rule of condominium and homeowner association law: i.e. that disagreement with the Board will not justify the non-payment of your maintenance fees or special assessments Read More……
How a Condo Board Can Collect Arrears By Using a Little-Known Tool Called DILF
With the recent economic downturn, condominium boards have been plagued by unit owners defaulting on their monthly common charge. With fewer unit-owners paying, boards are faced with the prospect of increasing common charges in order to collect the deficit from those owners in good standing — unless they can collect the unpaid charges. Read More……
The Attorney-Client Privilege: Disclosure of Confidential Information to Property Management Companies in Furtherance of Representation of Condominium or Homeowner’s Associations
Attorneys are not only ethically, but lawfully obligated to keep certain divulged information confidential in furtherance of representing a client. However, issues may arise whereby certain documentation may need to be transmitted to a third party. For example, an attorney represents a homeowner’s association whose property management company is responsible for maintaining records including contracts […]
Property Owner Wins Lengthy Turf War; Judge Titles Order: “Anatomy of An HOA Dispute Run Amok”
A CC&R dispute that started 11 years ago over the condition of a Tampa Florida homeowner’s lawn, a lawsuit that involved dozens of court hearings, a weeklong jury trial, two appeals and a second trial, at a cost of hundreds of thousands of dollars is finally over, and the owner prevailed. While this lawsuit occurred […]
Know your state law to better assess risk
The recent Illinois case 1324 W. Pratt Condominium Association v. Platt Construction Group, Inc. reminds contractors to be mindful of state policy considerations which may affect their risk assessments when constructing condominiums or high profile projects. Read More……
The Silent Killer
Over the weekend, I was once again reminded of the importance of carbon monoxide detectors. Sadly, it was reported that one person died and a total of nine families were displaced from their apartment complex in Colorado Springs due to high levels of carbon monoxide. Read More……
Honey Bees and Ethics
“When I put the bees in, I knew it probably would be against the covenant, but I knew it was going to be a safe situation and if it wasn’t, I was going to remove them. I was bending the rules, but it’s not like I was raising vicious pit bulls in my backyard. I […]
HOA’s: When you don’t like the rules
If you live in a newer suburban community or planned unit development, you are probably a member of a homeowners association (HOA). It’s also a good bet that you haven’t given your HOA much thought until you have a problem. Since HOAs make and enforce the community rules, it’s smart to understand what you can […]
Condominium Developers Can Require Arbitration for Construction Defect Lawsuits Through Project CC&Rs
The California Supreme Court recently held that the developer of a condominium project may unilaterally impose arbitration on an owners association by recording a declaration of covenants, conditions, and restrictions that imposes mandatory arbitration for construction defects. Read More……
Help with Going Green: Tapping Federal and State Incentive Programs
With the green movement in full swing across the country, it is not surprising that incorporating energy saving and efficient measures has trickled into condominium development. Today, many buildings in New Jersey pride themselves for having a variety of eco-friendly features ranging from green roofs, the use of sustainable materials and recycling on-site. Read More……
Ten Hot (and Cool) Tips
Energy efficiency has become a “buzz word” over the past couple years in New Jersey and more and more gadgets and devices have come on the market that are specifically designed to use less energy. Saving energy does a lot more than just reduce a building’s carbon footprint and toxic emissions, however—going green can save […]
Budgeting and Reserves for Condominiums
Most covenants for condominiums require that the association include as part of the annual budget, an allocation for reserves. Reserves should be set aside for roof replacement, pavement resurfacing, building painting, and any other item of association responsibility with a replacement cost or deferred maintenance expense of $10,000.00 or more. Read More……
They Fought the Lawn and the Lawn Won
In an epic battle between a homeowners association, owners, and a lawn, the lawn appears to be the only winner. Eleven years of ago, Ed and Billye Simmon and their Florida homeowners association began a court battle over a $2,200 bill related to a bad lawn. Probably the association’s cost of re-sodding. According to the […]
Condo board chiefs often make hard choices
Imagine that you have a job that requires you to be an expert in everything from finance to construction and that trying to do your best at this job makes your closest neighbors hate you. Now imagine that you do this for free. That’s the life of a condominium board president. Read More……
Are HOAs Discriminatory… You Decide
Homeowner’s Associations are an enigma in my mind and always have been. We live in a society already governed by laws and rules in so many forms and yet people choose to constrain themselves under yet another set. My recent conversation with a coworker (see my previous posting here) has led me to a deeper […]
25 years of condo law, and communal fruit
This month, I celebrate 25 years of practicing “condo” law. I would like to say that I have seen it all, but I probably have not done so. After all, I have practiced on the west coast of Florida. I have no idea what Miami would be like, and I do not want to know. […]
New Maryland Towing Law Immediately Impacts Community Association Towing Procedures
As of October 1, 2012, community associations throughout the state of Maryland must comply with new towing laws prior to towing or removing a vehicle from association property. The new towing laws affect all Maryland associations that have more than three common area/common element parking spaces. Read More……
Rentals, Yes – Condos, No! An answer to the blogophile’s prayer?
If you regularly check in with the community association social media—blogs, Twitter, Facebook—you cannot miss the group of correspondents who have a decided bias against community associations. It’s not always possible to separate fact from fiction, or personal bias from social concern, but the message is clear—there are many people who don’t like their homeowners […]