In BLF LLC v. Landing at Blanco Prop. Owners Ass’n, member of a home owners association sued to prevent the association from selling certain common area property. No. 03-22-00423-CV, 2023 Tex. App. LEXIS 9300 (Tex. App.—Austin December 13, 2023, no pet. history). Among other theories, the members alleged that the trust existed for their benefit. […]
The FCC Wants to Ban HOAs & Apartments from Forcing People to Pay for Cable TV Internet
One of the last things saving cable TV right now are the millions of people forced to pay for cable TV and Internet through cable companies because they live in an apartment or condo that has a homeowners association (HOA). The FCC has proposed new rules that will make it illegal for HOAs and apartment […]
Legislature approves ‘Condo 3.0’ bill to boost board accountability, building safety (FL)
Malfeasant condo board members and associations that for years have skirted Florida law through loopholes in state statutes may soon face a reckoning due to a reform package now bound for Gov. Ron DeSantis’ desk. Lawmakers unanimously passed HB 1021, which will overhaul state laws governing condo oversight and management by holding condo buildings and […]
U.S. District Court Strikes Down Corporate Transparency Act (CTA) as Unconstitutional: Impact to Community Associations
A U.S. District Court judge in Alabama recently ruled that the Corporate Transparency Act (CTA) is unconstitutional. The CTA, enacted on January 1, 2021, directs the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) to establish a nationwide database of beneficial ownership of certain corporations and other legal entities, including condominium, homeowner (HOA) […]
Hoosiers with HOAs one step closer to being able to keep beehives (IN)
A bill that would let Hoosiers with homeowner’s associations keep bees passed the Indiana Senate on Monday. Read the article…………………………….
Judiciary panel spotlights ‘shadow’ non-compete clauses, approves bill to close loophole (MN)
An example of a shadow noncompete contract that is hidden from an employee was provided in written testimony by SEIU Local 26. When a homeowner’s association under one of these contracts switches to a different property management company, these contracts prevent that association from retaining their experienced staff without the risk of litigation for continuing […]
Is “Mediated Resolution” a Free Pass for Local Law 97 Deadbeats? (NY)
When it comes to New York City’s landmark climate legislation, Local Law 97, it seems that every push results in a vigorous pushback. For instance, when many building owners, including co-op and condo boards, howled that they could not possibly afford retrofits that would bring their buildings’ carbon emissions in line with the law, the […]
Federal Corporate Transparency Act: Alabama Case Creates Confusion, But Compliance Still Likely Required (NY)
A recent Alabama court decision ruled the Corporate Transparency Act (CTA) unconstitutional, creating uncertainty for businesses nationwide. While the case may be appealed, here’s what boards of coops, condos, HOAs, and LLC members in New York, Connecticut and other states need to know right now. Read the article…………………………….
Judge rules on Airbnb dispute that turned nasty in divided Tennessee mountain town
A national debate about Airbnbs became local in an East Tennessee neighborhood where the homeowners association sued some of its own members who used their homes as short-term vacation rentals. Read the article…………………………….
Homebuilders work to stop bill to give earlier control of HOAs to homeowners (ID)
A bill aiming to give residents a say in their homeowners associations once most of the development is finished isn’t moving forward, for now. On Thursday, Rep. Jon Weber, R-Rexburg, brought HB 657 before the House Business Committee in the hopes of giving homeowners in developments with HOAs earlier control over the boards governing their […]
Proposed Legislation Would Reduce Percentage Required For Declaration Amendments (MD)
Proposed legislation pending in the Maryland General Assembly would reduce the percentage of approval votes required to amend a condominium declaration from 80 percent to 66 2/3 percent. Read the article…………………………….
Colorado lawmakers weigh rules to spur more building without stripping homeowner protections
Construction-defect law in Colorado has been the subject of bruising battles in the Capitol for more than a decade. After taking a breather from the last round in 2017, lawmakers are again juggling consumer protection and rules that some worry will stifle much-needed building. Read the article…………………………….
House Bill 59 – Providing Copies of the Docs (FL)
So The Florida Legislature is only in session for another four days. Over the next few weeks we want to educate you about the bills that passed both The Florida House and The Florida Senate. So here we go…….. Let’s start with an amendment to Florida Statute 720.303. Read the article…………………………….
Corporate Transparency Act Found Unconstitutional
In the case titled, The National Small Business United, b/b/a the National Small Business Association, et al v. Janet Yellen, in her official capacity as Secretary of the Treasury, et al., Case No. 5:22-cv-1448-LCB, United States, District Court, Northern District of Alabama, Northeastern Division entered on March 1, 2024, the court found the CTA to […]
Breaking News: Federal Court Ruled Corporate Transparency Act Unconstitutional – Beneficial Ownership Information Reporting on Hold
In a surprise decision Friday night, a federal district court ruled that the Corporate Transparency Act (“CTA”) is unconstitutional, effectively placing the Beneficial Ownership Information (BOI) reporting on hold. By way of background, the CTA was enacted on January 1, 2021 as part of the 2021 National Defense Authorization Act as an attempt to prevent […]
Homeowner Associations: Attorney’s Fees Are Not Fiduciary Duty Breach Tort Damages And $1.328 Million Fee Award Against Individual Directors Under Civil Code Section 5975 Reversed As A Matter Of Law. (CA)
In Colyear v. Rolling Hills Community Assn. of Rancho Palos Verdes, Case No. B308382 (2d Dist., Div. 4 Mar. 1, 2024) (partially published; fee discussion not published), plaintiff homeowner won a declaratory relief action based on a dispute over tree-trimming covenants in certain recorded Declarations, with the lower court awarding plaintiff over $1.328 million in […]
Colorado lawmakers target HOAs with more restrictions to protect homeowners from foreclosure
Homeowners associations’ foreclosure filings on thousands of Coloradans’ houses over unpaid fines and fees have spurred fresh attempts by lawmakers to better regulate HOAs and metropolitan districts with the hope of preventing more people from losing their homes. Read the article…………………………….
Governor Signed Legislation Allowing Private Entities to Regulate Activities on Public Lakes (IA)
The governor recently signed a bill that allows the Lake Panorama homeowners association to regulate boating on the public lake, including rules about the operation of watercraft and equipment specifications, as well as allowing private buoys to be set up in the lake. The legislation was narrowly tailored for Lake Panorama, by stating that the […]
Is Your Board Making These Critical Mistakes? Essential Risk Management Tips
In a recent New York case, 72 Poplar Townhouse, LLC v Board of Managers of the 72 Poplar Street Condominium, a series of critical issues arose that have wide-reaching implications for condo, coop, and HOA boards. This case highlights the potential consequences of unclear bylaws, the importance of meticulous records, and the complex power dynamics […]
Several southern Colorado leaders back bill they say would bring more condos to the state
Colorado Springs’ mayor is one of more than two dozen mayors across the state supporting a change they say could bring more condos to Colorado. The proposal is aimed at reducing construction lawsuits against condo builders. Right now, only two builders will are willing to build condos in Colorado, according to Sen. Rachel Zenzinger, who […]
NJ Appellate Division Reverses Certain Radburn Regulations Impacting Community Associations
On February 23, 2024, the Superior Court of New Jersey Appellate Division issued its opinion in a case involving regulations promulgated by the New Jersey Department of Community Affairs (DCA) – commonly referred to as the Radburn Regulations – which impose specific requirements on the election process for community associations throughout New Jersey and other […]
House passes ‘Condo 3.0’ reforms to strengthen safety, board accountability, enforcement (FL)
Condominiums across Florida and the boards that oversee their maintenance and repairs could soon be held to stronger standards through legislation the House just passed. The bill (HB 1021) cleared the chamber on a 111-0 vote after little discussion. As they did during its committee stops, lawmakers uniformly agreed the changes are much needed and […]
GL Homes settles lawsuit with Valencia Sound; HOA will refund buyers charged $5,000 (FL)
The homeowners association for Valencia Sound near Boynton Beach has refunded nearly $100,000 to recent buyers who were improperly charged a $5,140 “capital contribution fund by the HOA.” The refunds were the result of a recent settlement of a lawsuit brought by GL Homes, which sued the HOA for charging its buyers the $5,000 when […]
Condo Column: Condo Law Legislative Update – 2024 – Part I (NH)
This year’s slate of pending legislation includes an old, worn out retread, and some new ones. None have as yet passed and are in various committees. Proxies. In 2016 the Legislature amended the Condominium Act and added language regarding directed and undirected proxies. To refresh, a directed proxy is one where the owner who will […]
Legal battle may resume between Lake Oswego condo association and builder of new luxury penthouses (OR)
A Lake Oswego condominium association recently asked the Clackamas County Circuit Court to reopen a civil case against the owners of a luxury complex along State Street. The Oswego Talisman Condominium Association had initially filed a lawsuit against the owners of the future Frances condominiums, Hugh Development (and its affiliated LLC North D State), over […]
Court of Appeals Resolves Dispute Between Competing Community Association Boards (WA)
There was recently litigation to determine which of two competing boards of directors of a community association had the right to access the association’s bank accounts. One of the litigants originally served on the association’s board as an appointed director and president. Read the article…………………………….
Bill To Protect Small Wyoming Home Day Cares From HOAs Moves To Senate
The Wyoming Senate is contemplating a proposed law defining small home day cares as “residential” so that homeowners associations can’t ban them under a residential-only clause. House Bill 126 would define home day cares with fewer than 10 kids as a residential property use. Read the article…………………………….
HOA Changes for 2024 That Homeowners Should Know
Around 30% of all homeowners in the United States live in some type of common-interest housing governed by a community or homeowners association. This can include condos, co-ops, HOA communities, timeshares or mobile home parks. That’s roughly 75.5 million people who are required to follow specific HOA rules and regulations for their state or community. […]
Proposal for more oversight of homeowner associations expected in April (TX)
Deadlines for records requests, membership approval for assessment increases, and restrictions on foreclosures are among several recommended changes for homeowners’ associations up for debate come April. The Select Committee on Homeowners’ Associations in the House of Representatives on Wednesday unanimously approved a report with recommendations and draft legislation for the upcoming short session to address […]
Budget conference: After brief snub, Senate agrees to $30M for condo-hardening program (FL)
After briefly offering nothing, Senate lawmakers have agreed to spend $30 million on a proposed pilot program to help condo owners strengthen their properties against seasonal storms. House lawmakers proposed the nonrecurring expenditure Tuesday. Meanwhile, the Senate held out on committing anything to the program. That changed Wednesday at 9 p.m., when the Legislature’s upper […]
NC Community Association Legislative Update – February 28, 2024
Today (Wednesday, February 28) was the fourth and final meeting of the NC House Select Committee on Homeowners’ Associations. As a reminder, this Committee was created by House Bill 311 (see NC Community Association Legislative Update – May 9, 2023) and tasked with examining planned communities and condominium associations, Read the article…………………………….
Naugatuck Woman Secures $250,000 Settlement After Fall on Ice (CT)
A 55-year-old Naugatuck woman, who injured her left ankle, back and neck when she fell on ice and snow in a condominium complex, has settled her case for $250,000. Natalia Dubrovinskaya was taking out the garbage for her boyfriend, who lived at the Hidden Brook condominiums in Naugatuck, when she slipped and fell, Read the article…………………………….
Discrimination Claims within Community Associations (WA)
A person’s home is intended to be their sanctuary from the public. As such, situations which arise that affect a person’s ability to feel safe and secure in their home are particularly harmful. This is, in part, the basis for the protections provided in the Fair Housing Act. Through recent amendments to the Fair Housing […]
Key Rulings for Condominium Associations in Square Lake Hills Association v Russel Garland and Highlander Group MMC, Inc. (MI)
On March 23, 2023, the Michigan Court of Appeals decided several important issues in favor of Michigan condominium associations. In Square Lake Hills Association v Russel Garland and Highlander Group MMC, Inc et al, unpublished opinion of the Court of Appeals, (Docket No. 360405), the Court of Appeals made the following rulings: Read the article…………………………….
NC House panel okays recommendations limiting power of HOAs
A state House panel Wednesday gave the final okay to recommendations they say would help curb abuses of power by community and homeowners’ associations in North Carolina. “We can’t make as many changes probably as some would like to see happen, but we do have a few suggestions in the way of this committee report,” […]
Several HOA bills introduced in Idaho House
Several Idaho legislators have recently introduced bills about homeowners associations, also known as HOAs. Two lawmakers, Rep. Jon Weber, R-Rexburg, and Rep. Brooke Green, D-Boise, have been working on HOA issues for months. And as the Treasure Valley has grown, more and more people reside under the purview of HOAs. Read the article…………………………….
Bill expanding oversight, accountability of condo boards clears final Senate committee (FL)
Legislation to shore up Florida’s condo laws and give state regulators more power to punish unscrupulous board members is bound for the Senate floor after clearing its final committee with uniform support. Passing the measure (SB 1178) would mark a major overhaul of state statutes governing condo oversight and management by providing for criminal penalties […]
Deed restriction may frustrate lender’s foreclosure on real estate development (RI)
The redeveloper of the former Memorial Hospital campus in Pawtucket could challenge a lender’s foreclosure on the property based on the alleged invalidity of the mortgage that it defaulted on, a Superior Court judge has found. Defendant Memorial Development LLC took out a $3.5 million mortgage on the property in 2022, which the original lender […]
Court must provide ‘concise but clear explanation’ for reduced fee award (VA)
A trial court’s failure to explain its reduction of attorneys’ fees awarded to the plaintiffs — who substantially prevailed in litigation against a homeowners’ association — resulted in the Virginia Court of Appeals remanding the case for reconsideration. Read the article…………………………….
Hotel-Condominium Governance Litigation: Could IconBrickell Go National?
In 2020, the Florida Third District Court of Appeal issued the IconBrickell decision that has had a profound effect on the way practitioners and developers think about the legal landscape of mixed-use properties throughout the state of Florida, particularly branded residential condominiums. In IconBrickell Condominium No. Three Association v. New Media Consulting, 310 So.3d 477 […]
Hoarding in Condominiums: When Individual Rights Clash with Community Concerns
The recent case of Board of Managers of the 48-54 West 138th Street Condominium v. Flora Burdock highlights the complexities that arise when an individual unit owner’s behavior impacts the health, safety, and well-being of a condominium community. In this case, the condominium board sought legal intervention to address a severe hoarding situation within Ms. […]
‘A property rights issue’: Bill prohibiting HOAs from requiring grass lawns died in committee (ID)
Sen. Rick Just’s opening PowerPoint slide had a direct and succinct message, “I’m not coming for your lawn.” Just, D-Boise, was presenting a bill to the Idaho Senate Commerce and Human Resources Committee that would open up more neighborhoods to alternative methods of landscaping by prohibiting homeowners’ associations from requiring grass lawns. Read the article…………………………….
HOA Homefront: New Law Restricting Watering of HOA “Nonfunctional Turf” (CA)
Dear Mr. Richardson: Can you address AB1572 which will have a huge effect financially on our HOA? Read the Q&A………………………………..
State Rep Pushes Legislation to Regulate Property Management Comps, Community Association Mgmt (GA)
Companies that manage homeowners’ associations could soon be subject to more regulations. State Representative Dar’shun Kendrick (D-Lithonia) recently introduced House Bill 1258, legislation she says will “increase accountability for property management firm brokers and community association management brokers.” Read the article…………………………….
New Legislation (CA)
AB 572. Assessment Limitation. Beginning January 1, 2025, new associations with affordable housing are limited to assessment increases for affordable housing to 5% plus cost of living, not to exceed 10% greater than the preceding regular assessment. This does not apply to associations with 20 units or less. “Affordable housing” means a unit occupied by […]
When to File a Breach of Contract Lawsuit or How Long is Too Long? (CO)
The Colorado Supreme Court recently issued a decision that significantly impacts common interest communities’ need to enforce contracts by filing a lawsuit or an arbitration proceeding. This decision affects the timing considerations of when such proceedings must be filed. Read the article…………………………….
When Is an HOA/Condo Rental Amendment Unreasonable? (NC)
When it comes to declaration amendments, our firm is most often asked about restrictions on rentals, whether complete or percentage bans, restrictions on short-term rentals, or limiting corporate rentals. In a decision issued this week (February 21, 2024), the North Carolina Court of Appeals struck down a condominium rental amendment as unreasonable. Read the […]
Some Colorado HOAs ban using fire-resistant building materials. This proposed law could overrule that
A Colorado Senate committee on Tuesday advanced legislation that would block homeowners’ association rules that prevent residents from using fire-resistant building materials, a change that firefighters and insurance experts say would give communities more options to harden properties against climate-fueled wildfires. Read the article…………………………….
House amends estoppel certificate measure in a compromise with HOAs (FL)
The House Judiciary Committee with a unanimous vote amended legislation that would prohibit homeowner or community associations from charging homeowners and buyers for estoppel certificates to alleviate concerns among industry leaders. Read the article…………………………….
Court sides with homeowners in NC ski country who want short-term rentals
After a homeowners association in the North Carolina High Country tried to block short-term rentals during ski season, a court has ruled against the HOA. Read the article…………………………….