A whirlwind of activity swirled around the proposed One Park condo development in The Quay last week. A hurricane-disrupted trial concluded, the scheduled Planning Board public hearing is set to resume, and a Sarasota city commissioner filed a misconduct complaint with the Florida Bar. Read the article………………………..
Older condos subject to stricter regulations in unincorporated Bay County (FL)
Condos in unincorporated Bay County now have stricter standards. County commissioners approved a mandatory structural inspection ordinance at Tuesday’s meeting. It’s similar to an ordinance in South Florida that was passed after the Surfside Condo collapse killed 98 people. Condos more than three stories tall and at least 25 years old will be visually inspected. […]
You Can’t Have Legal Malpractice Without Legal Damages (IL)
On May 1, 2023, the Illinois Appellate Court, First District, affirmed the trial court’s holding granting summary judgment to a condominium association’s former attorney Michael C. Kim (“Kim”). In support of its decision, the Court held that Hemingway House Condominium Association (“HHCA”) failed to prove injury or damages to support a cause of action. Read the […]
2023 Maryland Legislative Update
The 2023 legislative session has produced several changes to the Maryland laws applicable to community associations. This article provides a brief summary of these community association related bills recently passed by the Maryland General Assembly. Please note: All new laws set forth below will take effect on October 1, 2023. Read the article………………………..
Backyard Storage Woes: Does the New Backyard Storage Statute Apply to Your Homeowners Association? (FL)
While there has been a lot of buzz about changes made in the 2023 Florida Legislative Session to laws affecting our Association clients, one potentially important change has been largely overlooked. The seemingly innocuous flag bill – House Bill (HB) 437 — creates the new Florida Statute 720.3045 prohibiting homeowners’ associations from regulating certain backyard […]
Bill to Protect Low Income Homeowners from Skyrocketing HOA Fees Heads to the Governor’s Desk (CA)
Assemblymember Matt Haney’s (D-San Francisco) AB 572 passed out of the Senate Floor and heads to Governor’s desk awaiting signature. This bill prohibits steep homeowner associations (HOA) fee increases that push low income homeowners into foreclosure by capping them at 5% plus the rate of inflation or 10%, whichever is less for below market rate […]
What Is The Memorandum Of And Judgment Lien In Virginia?
Homeowners associations can typically secure a judgment lien in Virginia in an attempt to collect unpaid dues from members. However, many homeowners don’t understand what judgment liens are. Some even question whether or not HOAs have the authority to impose such a lien. On the flip side, some board members don’t know how judgment liens […]
New Rules Define “Good Faith” Efforts to Comply With Local Law 97 (NY)
The other shoe has finally dropped. After issuing a first round of rules late last year on how co-op and condo boards can comply with Local Law 97, the city has now released a second round of proposed rules. The new rules will be welcome news to boards that are worried about the high cost […]
When the Homeowners Association Comes for Your Home (CO)
A spate of foreclosures filed by HOAs in Denver illustrate the potential risks of a increasingly common homeownership model. Read the article………………………..
Tenant Background Check and the Civil Rights Department Act (CA)
California’s Civil Rights Department (CRD), formerly known as the Department of Fair Employment and Housing (DFEH) has the responsibility of enforcing state fair housing laws, such as California’s Fair Employment and Housing Act, which makes it illegal for housing providers[1] to discriminate against tenants with a protected characteristic. Many boards of directors want to gain […]
Corporate Transparency Act Reporting Requirements: What Do Illinois Community Associations Need to Know?
In 2021, Congress enacted the Corporate Transparency Act (“CTA”) in an effort to protect the U.S. financial system from illicit use. Generally speaking, the CTA requires business entities operating in the U.S. to report certain information regarding their beneficial owner(s). The CTA is slated to take effect on January 1, 2024, and imposes certain reporting […]
What You Need to Know About Florida New (2023) Senate Bill 154: Structural Integrity Reserves (SIRS) Studies
Florida Senate Bill 154 has been signed into law and brings significant changes to Structural Integrity Reserves (SIRS) studies, a crucial element in ensuring the safety and long-term maintenance of condominium buildings across the state. These updates address various aspects, from who can perform the inspections to what needs to be included in the reserve […]
RPAPL 2001 Does Not Serve As Time-Bar to Condominium Board Requesting That Unit Owner Remove Structures From Outdoor Space )NY_
……a recent case filed by a condominium unit owner that touches on concerns related to the use of outdoor space associated with a cooperative or condominium apartment, such as who actually owns the space and if costs associated with the use of outdoor space can be charged. Read the article………………………..
Navigating the topsy turvy process for major condo association restoration projects (FL)
On June 9, 2023, Gov. Ron DeSantis signed into law Senate Bill 154 (SB 154), which seeks to address select issues from the Florida Condominium Act, SB 4D. All of these measures are intended to mitigate and prevent potentially devastating incidents, including building collapses. Condominium safety laws center around inspection requirements, mandatory reserves and more […]
Timeshare Tax Shenanigans End With Large Penalties
When I saw the Ninth Circuit decision in the case of James Tarpey, something about it was familiar. It turns out that the opinion by Judge McKeown upholding a penalty of over $8 million dollars was the finale of a story I picked up on October 1, 2016 with Lawyer Subject To Injunction Defends Timeshare […]
New law will allow HOA electronic voting for elections, recalls (NV)
Assembly Bill 309 allows HOAs to utilize electronic voting for elections and recalls. It also allows HOAs to use autopay and opens the door to development of new management transition requirements. Read the article………………………..
HOA Homefront — Appellate ruling OKs board email discussions (CA)
There is a transparency law within the Davis-Stirling Act called the “Open Meeting Act,” containing requirements regarding governance transparency. For years, many HOA lawyers have discouraged their clients’ boards from deliberating in email regarding HOA issues, because it seemed to violate the Open Meeting Act. Read the article………………………..
Fiduciary Duty: What it Means to Your Community Association (FL)
What duty does a community association board member owe to their association? What happens if that duty is breached? During the 2023 legislative session, legislation was proposed that would have made directors criminally liable for failure to timely respond to official record requests, among other provisions. Read the article………………………..
Citywide Crackdown on Illegal Short-Term Rentals Begins Today (NY)
In a move loudly applauded by co-op and condo boards, the city today begins its long-awaited crackdown on illegal short-term apartment rentals by such platforms as Airbnb, VRBO and Booking.com, The New York Times reports. Read the article………………………..
What Is the “Corporate Transparency Act” and Why It Matters to Your Association and Directors
For the past year, community association attorneys have been discussing the impact of the CTA (Corporate Transparency Act). Much of the discussion has been on whether the Act does or does not apply to homeowner and condominium associations. As the effective date of the law is January 1, 2024 (with first reports being due no […]
Corporate Transparency Act Poses Challenges for Homeowner Associations: Most HOAs Will Need to File in the Coming Year
The Corporate Transparency Act (“CTA”) will require most homeowner associations (“HOAs”) to file a beneficial ownership report in the coming year. Although the CTA exempts certain non-profit entities from having to file, most HOAs will not satisfy the requirements to be exempt from the CTA. Raising awareness of this new legal requirement, and collecting the […]
How Can An HOA Legally Amend Bylaws And Covenants
Now and then, a homeowners association will want or need to amend bylaws and covenants. Board members act as the leaders of the association. However, they don’t possess absolute power that would allow them to change the bylaws and covenants without going through the proper channels and procedures. Improperly enacted amendments are usually unenforceable. Read […]
New Washington Law Related to Licensed Child Care Services in Associations
The Washington Legislature recently passed House Bill 1199, which directly affects the rights of homeowners and condominium unit owners and their respective associations as it relates to the provision of licensed child care services. This bill became effective on May 1, 2023 and amends all existing acts which govern associations Read the article………………………..
Court Rules Email Exchanges Without Board Action Are Not Board Meetings (CA)
The Court of Appeals for the Fourth Appellate District just held that an email discussion among board members regarding items of association business did not violate the Open Meeting Act, because such email exchanges are not considered “board meetings” as that term is defined in Civil Code section 4090(a). Read the article………………………..
How Texas HOAs Are Keeping Low-Income Renters Out
A state law will prohibit homeowners associations from discriminating against tenants using rental vouchers. The practice is more widespread than lawmakers realized. Read the article………………………..
Washington Court of Appeals Upholds Condo Declaration’s Exculpatory Clause
The Washington Court of Appeals recently ruled in an unpublished opinion that a condominium’s declaration exculpated the condominium association from any liability arising out of an owner’s claim that the association neglected to maintain a common element. Read the article………………………..
What to do if the Association is Sued
One of the most frustrating issues a community association board of directors has to deal with is what to do if the association, the board, or an individual director is sued. It is the duty of the board to act in the best interests of the association and make decisions that are consistent with the […]
Pre-School Sues Condo Board Over Sidewalk Shed (NY)
There’s no shortage of reasons why New Yorkers loathe the protective sheds that cover 400 miles of city sidewalks. They’re ugly. They’re dirty. They’re magnets for sketchy characters. They stay in place way too long. Now here’s a new one to add to the list: they’re also bad for school enrollment. Read the article………………………..
/1 DCA Reverses As A Matter Of Law Adverse Fee Awards Against Homeowners Not Prevailing On Common Interest Development Open Meeting Act (OMA) Violations
Fees Are Not Awardable To Prevailing HOAs Under OMA Violations; Costs Were Not Proper Because Homeowners’ Action Was Not Frivolous, Unreasonable, Or Without Foundation. Read the article………………………..
SEVEN BRIDGES SECRET: Homeowners Outgraged After Board Secretly Settles Suit Against GL Homes (FL)
For the second time in two weeks, homeowners in the gated West Delray Beach community of Seven Bridges are outraged after its elected board of directors made a major decision behind closed doors — and failed to announce that decision to anyone. In the latest example of questionable conduct, the board settled its 558 lawsuit […]
The law is on your side if your HOA demands green grass during drought (TX)
If you’re receiving letters from your HOA complaining about the current state of your yard, take a deep breath, the San Antonio Water System (SAWS) says the law is on your side. Read the article………………………..
Changes to Minnesota HOA law lets more switch to solar
After a busy legislative session, there is good news for Minnesota homeowners that want to choose solar energy. One of the highly anticipated laws that passed now mandates that HOAs in Minnesota cannot block a property from installing solar panels on the roof. This change took effect on July 1, 2023. Read the article………………………..
Mother sues vacation home owners after her son was injured in shallow water (TX)
A mother is suing the owners of their rented vacation home and the subdivision in which it is located after an accident on a family vacation led to serious injuries for her teenage son. Read the article………………………..
Couple forced from condominium taking fight to court (AZ)
Jie Cao and Haining “Frazer” Xia did not want to leave their home. But after an investment company bought the majority of the units in the couple’s condominium complex and voted to sell the unwilling remaining residents’ units to themselves, Cao and Xia were forced out. Read the article………………………..
Homeowner Associations, Prevailing Party: HOA’s $139,977 Attorney’s Fees Award, Made After Homeowners Dismissed Their Lawsuit (CA)
In Matus v. Freedom West Homes Corp., Case No. A165736 (1st Dist., Div. 2 Aug. 21, 2023) (unpublished), a group of homeowner plaintiffs filed a lawsuit against HOA, which was ordered into arbitration. Plaintiffs dismissed their court case without prejudice 15 months later, with the record reflecting they had not initiated arbitration but were thinking […]
Arizona: 2023 Legislative Update
The Arizona Legislature passed five bills, which Governor Hobbs then signed, that have a direct impact on the community association industry. House Bill 2251, House Bill 2298, House Bill 2301, Senate Bill 2010, and House Bill 2607 will become law on October 30, 2023, which is 90 days after the adjournment of the legislature. Below […]
Condo Unit Owners have to Pay Their Common Charges
The Supreme Court in Richmond County threw out a condo unit owner’s defenses to a nonpayment case seeking a money judgment for common charge arrears. The Court found that the affirmative defenses by the investor condo owner were boilerplate and couldn’t withstand summary judgment. Read the article………………………..
Florida report on insurance failure raises more questions than answers
After Sawgrass Mutual Insurance Co. went under in 2018, Florida regulators were supposed to do a financial autopsy to determine what had gone wrong. But they didn’t hire forensic accountants to dig into Sawgrass Mutual’s finances, as they had in previous insolvency cases. Read the article………………………..
Civil suit calls Lake Buchanan POA invalid (TX)
The property owners’ association for Donall Estates on Burnet County Road 104 on Lake Buchanan is embroiled in a civil lawsuit that could negatively affect its deed restriction powers. Read the article………………………..
Homeowner Files Cert Petition Over Whether an HOA Assessment Qualifies as a “Credit Transaction” under the FCRA
The U.S. Supreme Court has been asked to decide whether a homeowner association (HOA) assessment constitutes a “credit transaction” under the Fair Credit Reporting Act (FCRA), which would open up an inquiry to the fundamental scope of one of the FCRA’s most important permissible purposes. Read the article………………………..
Related Claim Provision Bars Coverage for Discrimination Claims Asserted Over a Six-Year Period (IL)
Applying Illinois law, the First District Appellate Court of Illinois has held that a related wrongful acts provision barred coverage for a series of “claims” made over the course of six years because the claims—as the insured conceded—arose out of the same claim. Steadfast Ins. Co. v. State Parkway Condo. Ass’n, 2023 WL 4105252 (Il. […]
Preventing a condo calamity in New Castle County (DE)
New Castle County 8th District Councilman John Cartier said a new ordinance passed unanimously by Council, and signed into law on July 27, 2023, by County Executive Matt Meyer, is “the leading condo building safety ordinance right now in the United States.” Read the article………………………..
Trump Org’s sweet deal in Turtle Bay approved by judge (NY)
Apartment owners at Trump World Tower who opposed leasing the Trump Organization’s commercial unit there suffered a loss in court Friday. A Manhattan judge ruled that the sponsor of the Turtle Bay building, a company affiliated with the Trump Organization, can renovate the 2,500-square-foot space it owns and bill the $1.75 million construction cost to […]
The Impact of Prevailing Wages Mandate on NYC Co-ops and Condos
Have you ever considered the potential ramifications of recent mandates on the territory of New York City co-ops and condos? Let’s delve into the intricate world of the prevailing wage mandate. If you’re a board member in a union-affiliated co-op or condo, this may or may not have an effect on you. However, for those […]
Who Enforces CC&Rs When There Is No HOA In Arizona?
Arizona has thousands of homeowners associations and the homeowners who live in communities governed by HOAs understand that if they fail to follow the restrictions set forth in the association’s governing documents, which usually include a Declaration of Covenants, Conditions, and Restrictions, or CC&Rs. Read the article………………………..
Changes to Condominium Insurance Requirements For “Detached” Units (MD)
House Bill 98, making changes to condominium insurance requirements, was passed during this year’s legislative session and signed into law by Governor Moore. It amends Section 11-=114 of the Condominium Act concerning the mandatory insurance that is required to be maintained by the Council of Unit Owners. Read the article………………………..
Jared Polis, Democratic state lawmakers call for more changes to Colorado’s HOA laws after Colorado Sun investigation
The Sun’s investigation, published this week, found that HOAs have filed roughly 3,000 foreclosure cases since 2018, more than 250 of which have resulted in properties being auctioned off. At least 100 of the properties auctioned off were sold for $60,000 or less, according to court records. Read the article………………………..
Four years later, Grandview bluff collapse lawsuit heads slowly to trial (CA)
Four years after a multi-ton chunk of sandstone toppled onto Grandview Beach and killed three women, a family’s wrongful death lawsuit has survived multiple attempts to have the case dismissed and continues its slow march toward trial. Read the article………………………..