A homeowner in a common interest development sued the homeowner association and two of its directors and the directors employers. The directors’ were employed by two related companies engaged in the development and support of common interest developments. The homeowner association’s attorneys advised the association during the course of the litigation. One of the directors […]
Finally! Florida Passes Emotional Support Animal Law
Finally, the Florida legislature passed a bill regulating the out of control problem of Emotional Support Animals in Florida’s community associations. SB 1084 was signed into law by Governor DeSantis on July 1, 2020, and takes effect immediately. The new law provides for the following Read the article…………………………
Loveland woman scores major win in homeowners association foreclosure case (CO)
Martha Hummel was handed a major victory on Monday as a district court judge overturned the default judgment that allowed her homeowners association to foreclose on her Loveland home in 2019. The ruling came as a relief for the 70-year-old, who learned in August that she was being evicted from her house because of unpaid […]
2020 Amendments to the Florida Statutes Affecting Community Associations
Each year the Florida Legislature proposes amendments to various sections of the Florida Statutes, and some of those proposed amendments involve community association governance. Florida Governor DeSantis recently signed several proposed bills into law that took effect on July 1, 2020, and some of which address Florida’s community associations options for regulating issues involving emotional […]
Fourth Circuit Joins Sister Circuits to Broaden the Scope of the FDCPA’s Statute of Limitations
One of the first lines of defense when defending allegations of a statutory violation is the statute of limitations. As a complete bar to a plaintiff’s claims, the statute of limitations is one of the most powerful tools in a defense litigator’s pocket. Recently, the Fourth Circuit joined the Sixth, Eighth, and Tenth Circuits in […]
Emotional support dog didn’t have priority over tenant with allergies, state supreme court says
The Iowa Supreme Court ruled Tuesday that a no-pets building in Iowa City, Iowa, should not have allowed a new tenant to have an emotional support dog after an objection by another tenant with severe allergies. The court ruled 4-3 for tenant Karen Cohen in her lawsuit for breach of her lease’s no-pets provision and […]
Real Estate and Community Association Legislative Update: Tracking New Legislation (FL)
HB 469: Statute of Frauds. Signed into law on June 27, 2020 and effective July 1, 2020, this bill amends Florida’s Statute of Frauds to specify that subscribing witnesses are not required on a lease for real property. SB 1084: Emotional Support Animals. Read the article………………………….
Gov. Cooper signs bills into law (NC)
North Carolina Gov. Roy Cooper on Tuesday signed 12 bills into law………inc. Condominium Association Changes Read the bill (PDF)……………………………
9th Circuit Gives Freddie Mac gets six years to sue over foreclosure of HOA superpriority lien
The Federal Home Loan Mortgage Corp. has six years to establish that its liens survive foreclosure of state-law “superpriority” liens for unpaid homeowners association dues, a federal appeals court held Thursday. Read the article……………………………..
NC Community Association Legislative Update – June 24, 2020
Like most everything else in 2020, this year’s legislative session has not been typical. This is the second legislative year of the 2019-2020 Session. Normally, some of the bills that survived “crossover” in 2019 would be tweaked and considered, but new significant legislation is not all that common in the second year of a session. Due […]
DeSantis signs bill defining term ’emotional support animal,’ prohibiting discrimination (FL)
Governor Ron DeSantis signed a bill Tuesday that will define the terms “emotional support animal” and “housing provider.” SB 1084 will prohibit discrimination in housing being provided to someone who needs a support animal as well as prohibits health care practitioners from “providing information regarding a person’s need for an emotional support animal without having […]
When can an Association foreclose against an Owner? (AZ)
The Laveen Meadows Homeowners Association (“Association”) filed a foreclosure lawsuit against a homeowner for unpaid assessments and other amounts. The homeowner did not respond to the lawsuit so the Association applied for a default judgment. The defendant then remitted payment for $5,000, which covered the entire balance of unpaid assessments. The defendant argued that this […]
Ruling Proves Community Associations Need to Revise Own Governing Documents (FL)
A ruling in May by Florida’s Third District Court of Appeal added to the growing string of decisions in recent years illustrating how an old and outdated provision in HOA and condominium association declarations is preventing some communities from collecting what they would be owed under the current state law from purchasers in foreclosure actions. […]
Broward Woman Accidentally Run Over by Boyfriend Gets $1 Million Presuit Settlement From Condo Association (FL)
A South Florida woman whose boyfriend accidentally drove his car into her in a dark apartment complex parking lot has obtained a $1 million settlement without having to file suit. Alexander Perkins of Perkins Law Offices in Miami represents Laura Canaveral, who was taking out the trash one evening in 2017 at the Westview Condominium […]
$742K Verdict After Stairwell Banister Collapsed (CT)
The plaintiff was walking up a staircase in a common area of her building. Reportedly, the stairwell’s banister had broken nearly three years earlier, and had been duct-taped together by another tenant. While the plaintiff was ascending the stairs, the taped-together stairwell banister collapsed beneath her weight. She fell backward down the staircase, and sustained […]
Real estate — condominium fees (IL)
Where a condominium buyer is liable for attorney fees incurred by the condominium association arising out of default by the previous unit owner, they remain liable for their share of the total fees incurred even if the majority of the fee was not paid by the association. Read the article……………………………….
Virginia Legislative Update 2020
Dring its 2020legislative session, the General Assembly approved a number of bills that create changes to the Property Owners’ Association Act (“POAA”), the Condominium Act and the Code of Virginia. The legislation addressed in this newsletter will take effect on July1, 2020, unless otherwise noted below. Read the PDF………………………………
‘Deadbeat list’ gets condo complex in trouble as class action gets OK from Fla. court
A condominium complex in Florida will have to face a class action lawsuit after publicizing the names of every tenant who was behind on payments. The Fifth District Court of Appeal on June 12 ruled against Salt Springs Resort Association, which posted a list of more than 100 names and the amounts they owed on […]
Updated report includes new state law on solar installations on homes (VA)
A new Virginia law is expanding the rights of some homeowners who want to install and use solar energy. This year, the General Assembly passed Senate Bill 504, which says HOAs can impose so-called “reasonable restrictions” on the installation of rooftop solar, and the legislation says restrictions are considered unreasonable if they increase the cost of […]
Be Reasonable, It’s Good Business Judgment (FL)
A recent decision by Florida’s Fourth District Court of Appeals (“4th DCA”) highlights the deference courts in Florida give community association boards of directors when they make informed, reasonable decisions with respect to enforcing restrictions in their governing documents. In Miller v. Homeland Prop. Owners Ass’n, Inc., 284 So. 3d 534 (Fla. 4th DCA 2019), […]
San Juan Island HOA Dispute Results in Epic Appellate Court Opinion (WA)
Twenty homeowners in a San Juan Island development spent the better part of a decade fighting (both literally and figuratively) over the meaning of a set of restrictive covenants governing the use of their land and a waterfront parcel, the boundaries between their lots and a waterfront parcel, the erection of a spite fence, and […]
NY Residential Cooperative Corporations and Condominium Associations — Left Out of Protections under Governor Cuomo’s E. O. 202.38 and the Real Estate Entity Guidance But Must Prepare Business Safety Plans
On June 6, NY Governor Andrew Cuomo issued Executive Order No. 202.38 which provides commercial building owners and retail store owners and managers with immunity during the covered period, from claims of violation of the covenant of quiet enjoyment and frustration of purpose if they deny admittance to individuals who refuse to participate in discretionary […]
Virginia Allows Condominium Association’s Insurer to Subrogate Against a Condominium Tenant
In Erie Insurance Exchange v. Alba, Rec. No. 190389, 2020 Va. LEXIS 53, the Supreme Court of Virginia considered whether the trial court erred in finding that a condominium association’s property insurance provider waived its right of subrogation against a tenant of an individual unit owner. The Supreme Court reversed the lower court’s decision, holding […]
Implied Coinsured? Subrogation Actions Against Condominium Tenants (VA)
When considering a claim’s subrogation potential, insurance carriers are often confronted with contractual waivers of subrogation that potentially bar the claim. One of the most common waivers carriers face are those involving property damage claims in condominium buildings. In a recent decision, the Virginia Supreme Court held that in the absence of specific language otherwise, […]
Colorado’s Consumer Protection Act Claims in Construction Defect Actions
Over the past twenty (20) years, plaintiff attorneys in Colorado have routinely asserted Colorado Consumer Protection Act (“CCPA”) claims in addition to the “standard” construction defect claims that are the foundation of CD lawsuits. This article sets forth the elements a plaintiff must establish under Colorado law to prevail on a CCPA claim and, in […]
Parque Towers developer faces lawsuit seeking class action over allegedly mismarketed condos (FL)
For the 10th time this year, condo buyers at Parque Towers in Sunny Isles Beach are suing the developer over allegations of selling units that were smaller than allegedly advertised. Read the article……………………………
Memorandum of Association Assessment Lien (VA)
HOAs and condominiums continually chase after their members for unpaid assessments imposed for maintenance of common areas and amenities. Normally, a creditor who wants to go after a defaulting “customer’s” property or assets needs to sue them for a judgment if they want to record a lien in the land records. Association boards grew tired […]
9th Circuit Finds HOA Foreclosure Cannot Extinguish FHFA Interest (NV)
The Ninth Circuit relied on the Housing and Economic Recovery Act of 2008 (HERA) in ruling that Fannie Mae’s financial interest in a loan purchased in 2003 could not be extinguished by a foreclosure sale initiated by the property’s neighborhood HOA. This ruling is the most recent case in a number of cases over the […]
New Regulations for Common Interest Communities Concerning Elections and Board Meetings (NJ)
The New Jersey Department of Community Affairs, Division of Codes and Standards (DCA) published new regulations under the Planned Real Estate Development Full Disclosure Act (PREDFDA) on May 18, 2020. These new regulations are intended to serve as an update to the Radburn Election Law (P.L. 2017, Ch. 106) and will have a significant effect […]
Summary of New Virginia Legislation Impacting Community Associations in 2020
The Virginia General Assembly passed hundreds of bills during the 2020 legislative session. For those who lead, live in, or associate with community associations, many of these changes could impact the day to day operations of how individuals and these associations interact. Below is a summary of some of the General Assembly’s more significant recent […]
Unit Owner Insurance Deductible Responsibility Increased to $10,000 (MD)
Legislation enacted during the 2020 session of the Maryland General Assembly increases the amount for which an individual unit owner is responsible where the cause of damage to any portion of the condominium originates in their unit. Under Section 11-114 of the Maryland Condominium Act, condominium master policies must cover property damage to all of […]
Condominium Act Amendment Requires Adopted Annual Budgets To Be Distributed To Unit Owners (MD)
An amendment to Section 11-109.2 of the Maryland Condominium Act passed during the 2020 session of the Maryland General Assembly requires that the budget adopted at an annual meeting be distributed to each unit owner no more than 30 days after the meeting at which the budget was adopted. Read the article………………………………..
Amendment To The Condominium Act Establishes 60-Day Period For Holders of Mortgages And Deeds Of Trust To Object To Amendments (MD)
An amendment to Section 11-103 of the Maryland Condominium Act, adopted by the General Assembly during 2020 legislative session, clarifies the procedures for obtaining the consent of the holders of mortgages and deeds of trust to amendments to the condominium’s declaration, where such consent it required under a condominium’s governing documents. Read the article………………………….
Restrictions in Community Documents Will Be Strictly Construed by Courts (FL)
A community association’s declaration of covenants governs the duties and responsibilities between an association and its owners. When interpreting the text of such documents, courts will apply a rule of strict construction that requires a court to apply any unclear or ambiguous language in the manner most favorable to the owner. Strict construction has a […]
Appellate Division Affirms Annulment of License Agreement to Affix Private Dock to Property Owner’s Association Community Docks (NY)
The Lattingtown Harbor Property Owner’s Association, Inc., (“POA”) entered into a license agreement, dated November 29, 2017, with another member, Peter Tully, granting an exclusive right to affix private docks to the POA’s community dock in exchange for a license fee and services provided to the POA by Tully’s construction company. Another member of the […]
Change in Law Authorizing New Procedures for Amending Governing Documents (MN)
On May 13, 2020, the Minnesota legislature unanimously voted to amend Minn. Stat. 515B.2-118 to authorize new procedures that communities can use when amending governing documents. Specifically, (1) an association can obtain ‘deemed’ approval to amendments from owners who do not vote or do not respond to a request for consent, and (2) where approval […]
Virginia 2020 Legislative Update for Common Interest Communities
The Virginia General Assembly approved a number of bills during its 2020 legislative session. Several of the bills, directly or indirectly, impact common interest communities. The Governor of Virginia signed the following bills into law in March, which will take effect on July 1, 2020. We have outlined the legislative action taken by the Virginia […]
California Wildfire Disasters: The Interpretation and Implementation of Our New Insurance Laws
On a Thursday morning, I received the call that no daughter ever wants to receive. It was from my mom and her car was surrounded by fire. At the same time that I was taking my mom’s call, my dad and stepmom were sending me videos of several fires on the opposite side of town […]
Homeowner’s Association Denied Tax Exempt Status
A homeowner’s association doesn’t qualify for tax-exempt status because it’s operated primarily to benefit the owners of condominium units and not to benefit the social welfare, the Internal Revenue Service said… Read the pertinent IRS section…………………………
Insider Real Estate and Community Association Law Update (FL)
When Hurricane Wilma hit South Florida in October 2005 it caused damage to roofs at Kings Creek Condominium which damage was not immediately evident. In November 2008 Kings Creek notified it insurer, Citizens, of the loss, claiming that it was covered under an insurance policy for the named perils of wind and hail. The claim […]
The Rule of Judicial Deference: Protecting HOA Decisions Based on Reasonable Investigation and Made in Good Faith
Volunteer officers and directors of a common interest development (“HOA”) are required to make decisions which often have significant legal and financial implications for the HOA and its membership. Because they are unpaid volunteers, officers and directors are afforded certain protections against personal liability similar to those afforded to directors and officers of other types […]
9th Cir. Rules in Favor of Mortgagee Defendants in Nevada HOA Case
The U.S. Court of Appeals for the Ninth Circuit recently ruled in favor of the Federal Housing Finance Agency (FHFA), Fannie Mae, and the mortgage loan servicer in a title dispute arising from a homeowners’ association (HOA) lien foreclosure. Read the article……………………………
Change in Law Authorizing New Procedures for Amending Governing Documents (MN)
On May 13, 2020, the Minnesota legislature unanimously voted to amend Minn. Stat. 515B.2-118 to authorize new procedures that communities can use when amending governing documents. Specifically, (1) an association can obtain ‘deemed’ approval to amendments from owners who do not vote or do not respond to a request for consent, and (2) where approval […]
New 2020 Utah HOA Laws
Two bills were passed this year in Utah changing parts of the Condominium Ownership Act and the Community Association Act. The new laws that were passed by the two bills go into effect today, May 12, 2020. Read the article………………………………
Class-Action Lawsuit Seeks Coverage for Income Lost in Pandemic (NY)
The looming battle over lost-income insurance claims during the coronavirus pandemic has migrated from the New York State Legislature to a courtroom in Chicago, the Real Deal reports. A Las Vegas-based company called Vegas Image has filed a class-action lawsuit in federal court in Chicago, arguing that its lost-income insurance policy, also known as business income […]
Washington Court Holds Association Liable for Following Cost Allocations in Declaration
The Washington Court of Appeals recently issued an opinion that may invalidate the cost or voting allocations of many existing condominiums. In Mohandessi v. Urban Venture LLC, the court ruled that the common expense allocations in the declaration for the 2200 Westlake condominium in Seattle violated the Washington Condominium Act and that two homeowners could […]
Can An Association Limit Your Right to Bear Arms? (MI)
Can an association restrict an individual’s right to bear arms? The answer, though nuanced, is likely in the affirmative. An association’s board has wide authority under the governing documents to restrict everything from paint color to holiday decorations, as long as the action is reasonable. See, e.g., Allnutt v High Court of Foresters, 62 Mich […]
6th Circuit holds condo company and law firm did not act as debt collectors in non-judicial foreclosure
On May 4, the U.S. Court of Appeals for the Sixth Circuit held that a condominium management company, condominium association, and its law firm (collectively, “defendants”) acted as “security-interest enforcers” and not debt collectors and therefore, did not violate the FDCPA. According to the opinion, the homeowners lost their condominium to a non-judicial foreclosure after […]