It’s amazing when you think about it……. I get asked questions about emotional support animals all the time. I tell everyone that sometimes I can’t give an answer off the cuff. I would need to know more, it’s not that simple. Well, to prove that point, this is the third week in a row I’m […]
HB21-1229 The Break Down (CO)
A few weeks ago, we let you know that the anticipated CCIOA transparency bill was introduced. We have now had the opportunity to review, digest, and comment upon HB 21-1229, coming in at a mind-blowing 27 pages and with 19 unique sections. Read the entire article……………………………….
Resolving Conflicts of Law Related to Recall Election Timelines in the Wake of SB323 (CA)
Recall elections of individual Board members or of the entire Board are a source of great contention, divide and added expense for HOA’s. Prior to the passage of SB323, which took effect January 1, 2020, recall petitions and elections were already complicated. To add to this complexity, since SB323 became law, some of the Civil […]
Omnibus Bill (SB 630) Brings Changes for Florida Condos, Cooperatives and HOAs
This year’s large community association omnibus bill will likely become law. This bill, which bears an effective date of July 1, 2021, contains changes which will impact condominiums, cooperatives and HOAs. At more than 100 pages, we will discuss only some of those changes in today’s CALL Alert. This bill, along with all the others […]
Co-op Board Learns the High Cost of Being Unreasonable (NY)
Co-op boards can reject the sale of an apartment for any or no reason, as long as that rejection is not based on illegal discrimination. There is an exception: when a surviving spouse receives an apartment after the death of his or her spouse. Read the entire article……………………………….
Is your HOA in Compliance with Fair Housing Laws? (MN)
April is National Fair Housing Month. What a great time to review your association’s rules, policies and procedures to make sure you are in compliance with state and national fair housing laws, which prohibit discrimination in housing on the basis of a person’s membership in one or more of the protected classes. Read the entire article……………………………….
Changes to Texas Law Allows for Golf Carts and Most Off-Highway Vehicles to be Operated on Public Roads
Recent changes in Texas law now allow golf carts and most off-highway vehicles to be operated on public roadways. However, their operation is restricted to certain conditions, and there are certain stipulations that have to be met in order to legally do so. For the purposes of this advisory, an “off-highway vehicle” includes ATVs, ROVs, […]
Good News and Bad News for Co-ops and Condos in the New State Budget (NY)
New York State finally has a budget on the table – a big, fat $212 billion budget. So which do you want first, the good news or the bad news? OK, here’s the bad news: for co-op and condo boards anxious about potentially stiff fines beginning in 2024 under the city’s Climate Mobilization Act, a […]
What Do You Mean I Can’t Place the List of Delinquent Homeowners on the Clubhouse Door? (NC)
Whether you are a board member or a property manager for a community association (“Association”), you have probably dealt with owners that fail to pay their assessments, and whose accounts need to be referred for collection. Read the entire article……………………………….
Resolving HOA Enforcement Through Voluntary Compliance
When a homeowner receives a notice of violation from their HOA or condominium, they must decide if they are going to fight it, comply or file an architectural application to receive formal approval. There are many instances when the homeowner can and ought to keep the installed improvement. However, there are other situations in which […]
Sweeping Community Association Legislation Passes Unanimously in Florida Senate, Goes to House for Consideration
Senate Bill 630, a bill that has wide support from community association industry interests across the state, passed the Florida Senate with a unanimous vote of 40 to zero. It will now move to the Florida House of Representatives for consideration. Read the entire article……………………………….
Court Rules Condo Association is Entitled to Attorney’s Fees for Bylaw Violations (MI)
One of the fundamental concepts of condominium living is that anyone acquiring an interest in the condominium must comply with the condominium documents. The Michigan Condominium Act, specifically MCL 559.165, states that, “[e]ach unit co-owner, tenant, or nonco-owner occupant shall comply with the master deed, bylaws, and rules and regulations of the condominium project and […]
North Carolina court overturns ruling, says Duck beach access is private
A path to the beach in Duck is on private property and is not a public access, the North Carolina Court of Appeals ruled Tuesday. “All oceanfront lots there are privately owned and have been since before Duck was incorporated in 2002,” the ruling said. Read the entire article……………………………….
Washington Court of Appeals Affirms HOA’s Removal of Gate and Boulders
A homeowners association removed boulders and a gate that two owners had placed in a road easement and assessed those owners for the cost of that removal. When the owners failed to pay that assessment and monthly dues, the association filed a lien foreclosure action. Read the entire article……………………………….
$118,148 In Postjudgment Enforcement And Appellate Fees Affirmed In Favor Of Prevailing Party (CA)
In Locke Management Assn. v. Esch, Case Nos. C087137/C088192 (3d Dist. Apr. 2, 2021) (unpublished), defendant lost a right of first refusal challenge by plaintiff where there were contractual and Davis-Stirling Act fee shifting entitlement provisions. Read the entire article……………………………….
Houston synagogue files federal lawsuit claiming city violating its religious rights (TX)
A synagogue in Houston has filed a federal lawsuit against the city claiming that it is violating its right to free exercise of religion by denying the right to worship in a residential neighborhood. Read the entire article……………………………….
White property owners only? Racist covenants remain on books in Utah, but now there’s a path to fix them
Before building a new home in Holladay, Steve Tachiki glanced over his property records to make sure the changes wouldn’t get him into trouble. On the second page of a housing covenant, he found a different sort of requirement, barring anyone “other than the caucasian race” from owning a home on the property. It was […]
April 1, 2021 Arizona Legislative Update
The Fifty-fifth First Regular Session started on Monday, January 11, 2021 and is scheduled to adjourn on April 24, 2021. It’s been an interesting year at the Arizona Legislature so far! This session has been dominated by adoption of the budget and COVID-19/politically-charged issues. Read the entire article……………………………….
Ruling protects Club West homeowners and course (AZ)
The Superior Court of Arizona – Maricopa County granted a summary judgement “as a matter of law” in favor of Club West Conservancy in its suit against the former Foothills Club West Board for actions it took to assume rights related to the golf course land and to issue related amendments. Read the entire article……………………………….
Ownership of numerous Back Bay, downtown luxury condos hinges on legal action involving Saudi companies, citizens and a murderous crown prince (MA)
A Saudi company that claims it was defrauded of billions of dollars in a scheme by a conniving Saudi citizen and his sons last week filed suit in Suffolk Superior Court to demand it be allowed to seize condos on the 52nd floor of One Dalton Place and at the Mandarin Oriental and Millennium Place […]
What Federal Government Policies on Equity Mean for Community Associations
On January 20, President Joe Biden signed an executive order directing all federal agencies to advance equity. What is equity, and how will the executive order impact community associations? President Biden’s executive order defines equity as “the consistent and systemic fair, just, and impartial treatment of all individuals, including individuals who belong to underserved communities […]
U.S. Appeals Court Sides With Co-op Boards in Major Discrimination Case (NY)
In a case that has massive implications for co-op boards and landlords, the U.S. Court of Appeals for the Second Circuit has ruled that boards and landlords cannot be held liable under the Fair Housing Act for failing to intervene in race-based harassment between residents. Read the article…………………………………….
Condo World: Problems in the Poconos
Ahhhh, the Poconos of Pennsylvania. The soft rustle of the pine trees on a warm spring night, the smell right after a summer thunderstorm, the soft, powerful, yet soothing sound of a waterfall cascading over timeworn rocks, and the serene lakes stocked with fish and swimmers. So peaceful and rejuvenating. But where there are condos, […]
Condominium Owners Get Access to Association Records (FL)
Florida’s Condominium Act goes a long way to ensure transparency in governance and operation of a condominium association. The earliest version of the Act required associations maintain accounting records in accordance with good accounting practices. Associations were not only required to “balance the books,” but also to keep copies of invoices, receipts and similar documents. […]
Lending updates: Federally backed mortgage rules tighten for condos in vacation areas
New requirements from Fannie Mae and Freddie Mac that went into effect in December and February, respectively, will make it more difficult for condominiums in resort-like communities to secure certain federally backed mortgages, writes The Wall Street Journal. Read the article……………………………..
“They Put Me Through Hell,” Says Homeowner After Contentious Battle with HOA, $33k Settlement (FL)
Community association collections of monthly dues and other monetary obligations from unit owners have been strained by the Covid-19 pandemic. Given that many families are now struggling with lost work and businesses, some associations have cut back on expenses wherever possible and carefully considered their collections options with debtor owners. Read the article………………………………………
Maryland Raises Insurance Deductible Unit Owner Responsibility to $10,000
The Maryland Legislative Action Committee won a great victory for condominiums throughout Maryland in 2020 with the passage of House Bill 108 and Senate Bill 175. Sponsored by Del. Dana Stein (D-Dist 11) and Sen. Chris West (R-Dist 42), these bills served to raise the maximum amount of the master insurance policy deductible that a […]
Governor signs SB31 re: Community Associations (UT)
SB31 prevents a condominium or homeowners association from prohibiting a condominium unit or lot owner from installing a personal security camera on the owner’s dwelling unit; and makes some technical changes to other sections. Read the bill………………………….
Oregon Supreme Court Holds that Condo Association Takes Priority over Lender
The Oregon Supreme Court recently held that a condo association’s lien for unpaid assessments took priority over a bank’s lien because the bank failed to initiate foreclosure proceedings within 90 days of the condo association’s notice concerning a condo owner’s default. Read the article……………………………………..
2021 First Quarter State Legislative Session Update
Forty-seven states are currently in legislative session, with Utah and Virginia having already adjourned. CAI’s early predictions are proving true as many of these state legislatures are spending their sessions considering COVID-19-related legislation that will aid in recovery efforts. CAI’s state legislative action committees (LACs) continue to advocate—predominantly virtually with some in-person efforts—on behalf of […]
New Jersey Appellate Court Rules Judgment Creditor Not Subject to Mandatory Arbitration Provision in Insurer’s Policy (NJ)
In a published decision issued on March 4, 2021, New Jersey’s appellate court refused to compel an underlying tort liability plaintiff to submit its dispute against the insurer of two parties against whom it obtained default judgments to binding arbitration. Read the article……………………………
Community Association Legislative Update 2021 – Part I (FL)
There are number of bills filed in the current legislative session that could have a significant impact on the operation and governance of Florida community associations. In particular, Senate Bill 630 – Community Associations includes a number of proposed changes that would significantly impact condominiums, cooperatives, and homeowner associations. Given the breadth of the topics […]
Upstairs v. Downstairs: Was the Access Lawsuit Worth It? (NY)
When co-op and condo boards set out to perform mandated maintenance to their building exteriors, they frequently need to gain access to neighboring properties to perform the work. It’s customary for both parties to negotiate an access, or licensing, agreement. Usually the negotiations are cordial, but sometimes they break down in acrimony. Read the article………………………………….
HOA Lessons Learned – Case 1 Construction After the Fact
Construction projects are often a part of a condominium association board’s most impactful business and can define the year, or several years, as these projects can be large and far-reaching, changing the nature of a community. In Florida, an appellate case highlighted the need for strict compliance by the condominium board of directors to their […]
HOA Lessons Learned – Case 2 Horse Trail
HOA governing documents typically can be amended, including to change how members may use the community property. However, it is critical to understand the process required to amend the documents effectively. In Washington state, an appellate case highlighted the need to clearly understand the precise language of the governing documents to make changes to them. […]
HOA Lessons Learned – Case 3 Lease Agreement
As nightly rentals and short-term leasing accelerate in community associations, HOA boards have been challenged to both meet the desires of their individual members while balancing the wishes and interests of their wider communities. It is not uncommon for new, tighter leasing restrictions to be added to an HOA’s governing documents, but when these documents […]
Insurer must pay condo association for Hurricane Harvey damage (TX)
A federal appeals court has affirmed a lower court ruling in favor of a Texas condominium association, holding it is entitled to damages for boat slips destroyed during Hurricane Harvey. The August 2017 hurricane caused unprecedented rainfall and flooding in Texas, according to Friday’s ruling by the 5th U.S. Circuit Court of Appeals in New […]
General Assembly Makes Virtual Member Meetings Legal – With Conditions (VA)
Last Spring as part of emergency legislation the General Assembly authorized association boards of directors to meet virtually but did not include member meetings. This has caused significant delays in elections and other important meetings requiring a membership vote. I am pleased to report that new amendments, just signed by the Governor, will make life […]
2021 Arizona Legislature Update
The Arizona Legislature has been busy, with a total of 1,350 bills having been introduced as of last week, several of which may potentially impact community associations. Despite a spike in COVID cases among staff, and potentially members, the Legislature expects to continue moving forward virtually. Read the article…………………………………
Short-Term Rental Restrictions Gaining Popularity in Minnesota
Over the past few years, short-term rentals – often vacation rentals through sites like Airbnb.com, vrbo.com, and HomeAway.com – have become extremely popular. For the short-term tenants, it’s an easy way to get lovely accommodations, generally in less-commercially-focused areas of a town or city. For the short-term landlord, it’s another “side hustle” that has become […]
Do Short-Term Rentals Constitute a Nuisance in Michigan?
Issues associated with short-term rentals are a major problem facing many Michigan homeowners associations. It is not uncommon for issues to arise between homeowners that use their property for short-term rental purposes and permanent residents. Permanent residents in historically residential communities that live next to short-term rentals often experience nuisance issues related to noise, parking, […]
HOAs vs. Mortgage Lenders (NV)
Nevada’s Homeowner’s Associations (HOAs) have won again in their battle with mortgage lenders challenging Nevada’s super-priority lien law, this time in the United States Court of Appeals Ninth Circuit. Read the article…………………………………..
Florida Condominium Association Director Term Limits Don’t Apply Until 2026
Amendments to the Florida Condominium Act enacted in 2018 provide that association board members may not serve more than eight consecutive years, unless they are elected by more than two-thirds of the voting membership or there are not enough eligible candidates to fill the board vacancies at the time of the election. Read the article…………………………
The Almighty Injunction (VA)
In the world of enforcing covenants, deeds, and restrictions, injunctions are one of the most powerful tools association managers have in their arsenal. An injunction is an order from a Court either requiring a homeowner to comply with particular rules or restrictions or ordering the homeowner to cease violating the restrictions. Associations can request injunctive […]
Oregon Supreme Court Holds HOA Lien Primes First Mortgage or Deed of Trust if No Foreclosure Within 90 Days of Notice
The Oregon Supreme Court recently held that a lien for delinquent condominium assessments has priority over a first mortgage or deed of trust, where the mortgagee fails to initiate a foreclosure action within the 90-day notice period prescribed by ORS § 100.450(7). Read the article………………………………….
Senate Bill 21-002 and Collection Restrictions Continued (CO)
As you may be aware, Senate Bill 20-211 (“SB 20-211”), which put restrictions on certain collection actions, expired on February 1, 2021. However, these restrictions were extended by Senate Bill 21-002 (“SB 21-002”) signed into law on January 21, 2021. Like its predecessor, the new law prohibits a debt collector from taking “Extraordinary Collection Actions” […]
Judge slaps Don Peebles’ Bath Club Entertainment with $1M in sanctions (FL)
Don Peebles’ Bath Club Entertainment is on the hook for $1 million in court sanctions after a Miami-Dade judge ruled the developer failed to maintain first-class cabanas and outdoor food and beverage service at the historic private Miami Beach club. Read the article……………………………………
Ruling: Community Associations Can Take Owners to Court Without Completing Arbitration (FL)
…..discusses how Florida law calls for associations to file for nonbinding arbitration with the state agency that regulates condominiums prior to going to court. Read the article……………………………….
Court Holds that Short-Term Rentals are Not Considered an Unauthorized “Business Use” (CA)
With Assembly Bill 3182 taking effect this past January, community association boards lost significant leeway to exercise their discretion and adopt/enforce rental restrictions. Though many rental restrictions, such as minimum lease term requirements, and “caps” on the total number of rentals within the community at a given time are intended to help maintain property values […]