The board of managers at a Brooklyn condominium has learned, first-hand, about the thickness of the armor provided by the Business Judgment Rule. State Supreme Court Justice Kathryn E. Freed has dismissed a lawsuit against the board at the Bridgeview Tower Condominium, at 189 Bridge St., saying the suit was “procedurally defective” and the board […]
Appeals Court Nixes Order Declaring Water Damage Covered Under State Condo Act (GA)
Reversing a trial judge, the Georgia Court of Appeals issued a ruling in a relatively low-dollar dispute over damage from a leaky water heater that the winning lawyer said finally clarifies that a statute requiring “fire and extended coverage” for condominium associations does not extend to water damage. Read the decision (PDF)…………………………….
New trend? Homes across the valley being sold in fractional interests…(AZ)
Our firm recently became aware of a home within an HOA community that is being offered for sale in fractional interests. (i.e. the owner of the home is selling the home in 1/8th interests). The HOA wanted to know what its legal rights and remedies are. The HOA had concerns with the possibility of many […]
California Legislature Further Limits a HOA’s Right to Restrict Rentals
On January 1, 2012, Section 1360.2 (now Section 4740) was added to the California Civil Code to limit a HOA’s authority to adopt and enforce certain rental “prohibitions.” The legislative intent behind the law was the recognition that “the rights of Owners in [a HOA] to rent or lease their properties, as the rights existed […]
Insider Real Estate and Community Association Law Update, September 2020 (FL)
A homeowner had rented out three of the four bedrooms in his home to three separate individuals at the time he passed away. He left the home, his homestead, to his son. A judgment creditor of the deceased homeowner sought to collect from the equity in the home. The probate court ruled that seventy-five percent […]
Claims of Lien For Community Associations: How to Effectively Utilize them to Compel Payment (NC)
Many community association managers know that a lien can be placed on a delinquent owner’s lot as a method of securing repayment of assessments. Read the article……………………………….
Missouri AG files suit against Kansas City Homeowners Associations for ‘racially restrictive convenants’ (MO)
Missouri Attorney General Eric Schmitt announced he is filing a lawsuit against two Kansas City-area homeowners associations for failing to remove racially restrictive covenants from governing documents on Friday. Read the article………………………………..
Understanding the Legal Aspects of Privacy in the Age of Smart Phones and Residential Security Cameras (VA)
With most people in modern society having smart phones that have cameras and video recording capability coupled with the soaring popularity of residential security cameras, one may wonder to what extent does one have a right of privacy should their image and/or behavior be captured. One may also ponder such question when perusing through ample […]
Gun Control in Community Associations (AZ)
With election season upon us, it is important for board members and managers to be aware of, and prepared to address political hot button issues, including gun control. What are associations’ rights regarding gun control within the community, and how can the board effectively balance the associations’ right, owners’ rights and community safety? Read the article…………………………
New DCA Rules Regarding Benefit Derived and Reserves (NJ)
For decades associations and developers in transition have been plagued by ill-defined concepts embodied in the rules of the New Jersey Department of Community Affairs (DCA) governing the developer’s obligation to pay common expenses for units under development and individually owned “in proportion with the benefit derived by the unit from items included in the […]
Appeals court rules for Indianapolis in dispute over trouble condo’s receivership (IN)
Court orders in favor of the city of Indianapolis in the latest of long-running disputes over a dilapidated condominium development on the city’s northeast side were upheld on appeal Tuesday, including an order that the condo corporation and members pay half of a receiver’s fees. The litigation is the third appeal involving the Towne & […]
Don’t Forget About City of Chicago Mandated Building Inspections, They Are Not Only Limited to Facade Inspections (IL)
It’s that time of year when City of Chicago facade inspections are coming due. Chicago’s Rules Regarding the Maintenance of High-Rise Exterior Walls and Enclosures require one of two forms of facade inspection reports be filed for any building in the City of Chicago that is taller than 80 feet. Even if just a portion […]
COMMUNITY ASSOCIATION TRANSITION: CONSTRUCTION DEFECTS, IMPLIED WARRANTIES AND CONSUMER FRAUD
For every condominium and homeowner association, “control” is eventually transferred by the developer to an owner-controlled governing board after construction. This is called “transition.” A successful transition is one in which the owner-controlled board works with the developer to ensure appropriate governance, adequate financial resources, and a properly designed and constructed community. But what happens […]
Judge recuses himself in case of homeowners association hoping to prevent sex offender from living in area ( (NE)
Anew judge will be assigned in the case of a Beatrice homeowners association seeking to prevent a registered sex offender from living in its neighborhood. The Wildwood Estates Homeowners Association filed a civil complaint in Gage County District Court last month, seeking to prevent Jeff Hawks from living in the area. Read the article…………………………….
Subrogation: Stepping into the Shoes of Another to Enforce Claims: the Virginia Supreme Court Hands Down an Opinion on Subrogation in the Context of a Condominium Fire (VA)
By recent decision, the Virginia Supreme Court weighed in on an insurance subrogation dispute arising out of a fire at a Virginia condominium. The case is illustrative as to situations that sometimes face community associations when there are casualty losses. Read the article……………………………..
Legislative Update: Colorado 2020 Regular Session
As the Colorado Legislature’s Regular Session closed for the year, two HOA related bills were passed into law, and another bill was put on hold. Below is a summary of the new changes these laws will introduce into the realm of HOAs and managing companies: Read the article…………………………………
Mid-Year CAI Amicus Curiae Program Update
Community Associations Institute files amicus curiae, or “friend of the court” briefs, in federal or state cases that address issues of significant importance in community association law. CAI’s amicus curiae efforts enable us to share our expertise and educate a court about the legal and policy issues in pending appellate litigation. Characteristically, court cases where […]
Later Finding That HOA-Homeowner Settlement Agreement Was Invalid Presented Good Cause To File Fee Motion After 60-Day Deadline (CA)
In Gallian v. Gragnano, Case No. G057198 (4th Dist., Div. 3 Sept. 15, 2020) (unpublished), HOA sued a homeowner for architectural violations under the CC&Rs, which prompted homeowner to crossclaim against the board members for indemnification, fault apportionment, and declaratory relief. The board members were dismissed with prejudice, with HOA and homeowner reaching what they […]
Some Homeowners Association Agreements Over 40 Years Old Could Expire In March (MI)
For many who purchase a condominium or home in a community association, they don’t mind the homeowner association fees. As the fees pay for external maintenance, improvements, and for services in the community like a clubhouse and/or a pool. Others regret these agreements because depending on who is managing the association everything from the color […]
Mid-Year State Legislative Action Committee Update: Part VI
During the COVID-19 pandemic, CAI’s legislative action committees (LACs) volunteered hundreds of hours reviewing bills, drafting testimony, working with lobbyists, meeting with legislators and other decision-makers, and testifying for and against bills. Here is the sixth and final part of our series focusing on legislative issues impacting the community association housing model. Read the article………………………..
CACM Fall Law Journal (CA)
The Fall 2020 #CACM Law Journal has launched! This “must-read” is the ONLY California-specific quarterly publication providing updates on laws affecting the community management industry Read the fall issue…………………………………..
Mid-Year State Legislative Action Committee Update: Part V
During the COVID-19 pandemic, CAI’s legislative action committees (LACs) volunteered hundreds of hours reviewing bills, drafting testimony, working with lobbyists, meeting with legislators and other decision-makers, and testifying for and against bills. Here is the fifth part of our series focusing on legislative issues impacting the community association housing model. Read the article……………………………
Senate Bill 326: Balcony Inspections (CA)
On August 30, 2019, the Governor approved Senate Bill No. 326 (“SB 326”), which amends Civil Code Section 5551 and requires associations to conduct an inspection of their exterior elevated elements (i.e., balconies, decks, patios, stairways, walkways, and their railings) and the associated waterproofing systems, to determine if they are in a generally safe condition. […]
FHA Recertification and Your Community Association
The Federal Housing Administration guarantees home certain loans offered through conventional lenders, these are known as FHA Loans. These unique loans allow homebuyers to use a smaller down payment and sometimes to have lower credit scores than lenders typically require for conventional mortgages. Traditionally, FHA guaranteed loans for condo purchases only if the entire association […]
Mondrian South Beach unit owners sue condo association and companies tied to Russell Galbut, alleging securities fraud (FL)
A group of unit owners at the Mondrian South Beach sued the condo association and companies tied to developer Russell Galbut, alleging securities fraud. Read the article………………………………….
Does the Pollution Exclusion Bar Coverage for Injuries Arising out of Viruses and Bacteria? (FL)
Applying Florida law, a federal district court in the Southern District of Florida held in 2009 that the insurer did not have a duty to defend against a claim for injury resulting from a virus. In First Specialty Insurance Corp. v. GRS Management Associates, Inc.,2 First Specialty Insurance Corporation brought a lawsuit against a residential […]
Hitting A CEQA Snag: Third District Affirms Rejection of Statutory Road Abandonment And Brown Act Challenges (CA)
In a published opinion filed on August 17, 2020, the Third District Court of Appeal mostly affirmed the trial court’s judgment upholding Placer County’s partial abandonment of public easement rights in an emergency access/public transit road connecting two Lake Tahoe-area residential subdivisions; the County took the action to resolve disputes that had arisen after one […]
The Association’s Strong Hand for the Removal of Non-Approved Structures (FL)
Enforcing HOA restrictions can be a formidable task, implicating myriad overlapping declaration provisions, association rules, and Florida law. And going to court to get injunctive relief – a court order requiring an owner to comply – can seem even more daunting. The elements that are required to establish a basis for injunctive relief are: (1) […]
Fifth DCA Recedes From Its Own Precedent Ruling Community Association Assessments Are “Debts” Under FCCPA (FL)
In a recent decision Williams v. Salt Springs Resort Association, Inc., Case No. 5D18-3913 (Fla. 5th DCA, June 12, 2020), Florida’s Fifth District Court of Appeal receded from its own longstanding precedent in holding that condominium assessments may be considered “debts” within the meaning of Florida’s Consumer Collection Practices Act, Chapter 559, Florida Statutes (“FCCPA”). […]
Court Holds That Extensive Short-term Rentals Violated Residential Use Restrictions (MI)
In Cherry Home Association v. Keith Barker, et. al., the Leelanau County Circuit Court held that several lot owners violated residential use restrictions by engaging in extensive online short-term rentals. After holding one of the first zoom bench trials in the history of the Leelanau County, on August 26, 2020 the trial court determined that […]
Tax Court partially reverses tax board’s dismissal of HOAs’ common area claims (IN)
A final decision by the Indiana Board of Tax Review that dismissed claims from three homeowners associations was partially reversed by the Indiana Tax Court in a Monday decision. Read the article……………………………..
Court Holds That County’s Abandonment of Public Road Easement Rights Did Not Violate Brown Act, Was Supported by Substantial Evidence, and Did Not Create Takings Liability (CA)
On August 17, 2020, in Martis Camp Community Association v. County of Placer, __ Cal.App.5th __ (2020) (Case Nos. C087759 and C087778), the Third District Court of Appeal addressed several novel legal claims arising from the County of Placer’s partial abandonment of public easement rights in a road connecting two adjacent residential subdivisions near Lake […]
Faking Your Emotional Support Chicken in Florida Can Now Land You In Jail! (FL)
So, you’re exasperated after looking out your pet-free condo window for the umpteenth time to catch a glimpse of your neighbor walking by with—of all the nerve—her emotional support chicken. And to top it off, the chicken even has its own emotional support chicken! Your blood boils as she walks by. There ought to be […]
Judge says lawsuit claiming Fairway Oaks homes built on dump debris was filed too late (FL)
When Shirley Dempsey and her neighbors rallied to press their claims that Habitat for Humanity of Jacksonville sold them defective houses on an unstable trash dump, she would tell newcomers about her dream. Dempsey said the dream, where an angel touched the ground and the land opened up, led to her discovering that her home […]
Extra Extra Get Your Updated CCIOA!! (CO)
The last several months have been all about COVID-19 and compliance with Public Health Order 20-28 (which, I might add, is now on its 10th amendment as of August 21st!). But don’t forget about the need to comply with the new changes to the Colorado Common Interest Ownership Act (“CCIOA”), which were put in place […]
Mid-Year State Legislative Action Committee Update: Part IV
During the COVID-19 pandemic, CAI’s legislative action committees (LACs) volunteered hundreds of hours reviewing bills, drafting testimony, working with lobbyists, meeting with legislators and other decision-makers, and testifying for and against bills. Read the article…………………………….
2020 HOA Legislation (CO)
The State’s HOA Information Office and its HOA Officer were continued for 5 more years. The State office was due to end (or “sunset”), but was renewed by HB 20-1200 (“Bill”). The Bill also establishes a state law standard on limited religious displays on the door or door frame of a residence. Read the article………………………….
Epic Dispute Over Driveway Design at Boynton Beach HOA Makes Local Headlines
Our firm’s other community association attorneys and I have all seen our fair share of disputes arising from unapproved property improvements in South Florida HOA communities over the years. However, the saga involving a diamond design in a homeowner’s driveway at the Equus community just west of Boynton Beach appears to be exceptionally combative, so […]
Lame duck act threatens some associations (MI)
Q: I’ve heard that there may be some issue with community associations’ recorded governing documents expiring next March if they are over 40 years old, is that right? Read the Q&A………………………………
HOA Files Response To Federal Lawsuit: Homeowner Claims Discrimination For NOT Being Jewish, HOA-Required Censorship On Facebook (FL)
The Seven Bridges (Delray Beach) Homeowners Association has submitted its response to a federal lawsuit filed by a homeowner claiming that she was discriminated against for not being Jewish, that her children were verbally assaulted by a group of women who claimed priority in using a tennis court, that she was harassed by a neighbor, […]
Insurer May Not Intervene In Insured’s Construction Defect Trial To Seek Allocation of Damages
Bolt Factory Lofts Owners Ass’n v. Auto-Owners Ins. Co., 2019 COA 121 (Colo. App. 2019), cert. granted en banc, Auto-Owners Ins. Co. v. Bolt Factory Lofts Owners Ass’n, 2020 Colo. LEXIS 250 (March 16, 2020)[1], involved a construction defects case in which the Association sued six contractors for alleged construction defects at one of its […]
MCL 559.154: What is the difference between arbitration and mediation? (MI)
Conflict is inevitable when co-owners live in close proximity in a condominium association. Whether it is a barking dog, loud music or unpleasant odor, it is important that a condominium association has a mechanism to resolve disputes between co-owners. Many condominium associations resolve disputes by commencing an action in circuit court to enforce the master […]
Legal Update 2020 Summary: Florida Legislature passing several community association related bills this Season
The Florida Legislature was especially busy this past session filing, debating, and ultimately passing several community association related bills. Below is an outline of those bills and the potential impact on your community association this year. Read the article……………………………..
There Can Be No Taking for Impairment of Access If the Property Does Not Abut a Public Road (CA)
We routinely get calls from owners facing impacts to their property or business as a result of construction of a public project or changes in adjacent public streets. For example, the city or county may close a road, create a cul-de-sac, turn a two-way street into a one-way street, close a driveway, relocate an off-ramp, […]
Are Political Rallies and Signs Legal in Your Community Association?
During an election year, it’s not unusual for community associations to grapple with issues related to the legality of displaying political signs. Yet, these are unusual times. The nation is experiencing a time of increased interest in political activism. Not long ago a video of dueling protesters at a political rally in a Florida community […]
Free Speech or Covenant Violation? (CO)
Many times, Homeowners express their passions and interests in the form of signs and/or flags on their property. However, HOAs are sometimes asked to restrict signs and flags that are controversial or politically charged. Legally, some signs and flags cannot be prohibited under Colorado law, although HOAs are given discretion to restrict the number, size, […]
Puerto Rico Gov Signs New Condominium Act
Gov. Wanda Vázquez Garced signed Act 129-2020, which establishes the Puerto Rico Condominium Act to update the rules that govern coexistence in these structures, effectively abolishing Act 104-1958, as amended. Read the article……………………………….
After sale of their condo, unit owners sue board, saying it took low offer (IL)
Millions of dollars were lost when a condo board in Streeterville approved a sale last year but ignored a better offer, according to a lawsuit filed in Cook County Circuit Court. Read the article……………………………….
New law impacts 55+ communities (FL)
Q: I heard there is a new law that impacts the registration process for “55+” communities. What are the details? Read the Q&A……………………………….
Blaine County wins Flying Heart Ranch lawsuit (ID)
A judge has ruled that the public has the right to park alongside a road in a subdivision north of Hailey in order to access the Big Wood River, marking the latest development in a longstanding dispute between Blaine County and the Flying Heart Ranch homeowners’ association. Read the article…………………………