Coops and condos will not need to pay their service employees prevailing wages to keep their units eligible for the Cooperative and Condominium Tax Abatement (the abatement). The abatement reduces property taxes between 17.5 and 28.1 percent on average, depending on the assessed value of the units in the development. Read the article…………………………….
HOA column: How California law aims to protect residents’ religious rights
On July 30, Senate Bill 652 was signed into law by Gov. Gavin Newsom in response to several incidents in which a homeowners association asked a resident to remove a mezuzah from their unit’s entry door or door frame. Readthe article…………………………….
Maryland court of appeals: state consumer protection act covers HOA collections
On January 27, the Court of Appeals of Maryland affirmed the dismissal of a homeowners association’s (HOA) confessed judgment complaint against a consumer, and stated that the HOA could not file an amended complaint. According to the opinion, the consumer owned a home that is part of an HOA, which makes annual assessments to cover […]
Many Washington Condo Associations and HOAs Must Incorporate or Form LLC
Two Washington laws adopted in 1990 and 2018 require many condominium and homeowners associations to be incorporated entities. The relevant section of the first law, the Washington Condominium Act, applies to all condominiums created after July 1, 1990. Read the article………………………….
Michigan Court of Appeals Holds That HOA Cannot Revoke Approvals for Docks
In Haan v Lake Doster Lake Association, unpublished opinion of the Court of Appeals, issued January 16, 2020 (Docket No. 345282), the Michigan Court of Appeals held in a 2-1 decision that an Allegan county homeowners association could not revoke approvals granted to owners to install docks. Read the article……………………………….
Compulsive Vulture, Alligator Feeder Settles for $53K with HOA (FL)
Readers of this blog may recall my recent article about a resident of the Ibis Golf and Country Club community in Palm Beach County who was creating an incredibly dangerous and destructive situation by feeding extraordinary amounts of food to vultures, alligators and other wildlife behind her home. On Wednesday, Jan. 15, the homeowner agreed […]
Maryland court of appeals: Law firm’s collection activities do not necessarily qualify for “professional services” exemption
On January 28, the Court of Appeals of Maryland held that not all services provided by a law firm or a lawyer fall within the “professional services” exemption under the Maryland Consumer Protection Act (CPA). In this case, a homeowners association (HOA) retained a law firm to collect delinquent HOA assessments, fines, penalties, and attorney’s […]
Considerations in Settling Cases (Mediation/Settlement Conferences)
Mediation is an alternative dispute resolution (ADR) method, where the participants meet with a third party (mediator) to negotiate a potential settlement. The mediator is required to be unbiased, and he or she does not work for either side. The mediator listens to each side’s position and helps to facilitate a voluntary resolution to the […]
Trafalgar Stump Dump: Arkansas Pollution Control and Ecology Commission Addresses Bella Vista Property Owners Association, Inc.’s Request for Hearing to Set Aside Consent Administrative Order (AR)
The Arkansas Pollution Control and Ecology Commission (“Commission”) addressed at its January 24th meeting a request by the Bella Vista Property Owners Association (“POA”) that it conduct an adjudicatory hearing to review the Consent Administrative Order (“CAO”) issued by the Arkansas Department of Energy and Environment – Division of Environmental Quality (“DEQ”) in the matter […]
The top 3 things you must know about HUD’s new guidance on assistance and emotional support animals
On January 28, 2020, the Department of Housing and Urban Development (HUD) issued new guidance on how housing providers, such as condominium associations, homeowners associations and landlords, can comply with the Federal Fair Housing Act (FHA), 42 USC 3601 et seq. in evaluating requests for assistance and emotional support animals. HUD estimates that 60% of […]
Is Relief for Fraudulent Emotional Support Animal Accommodation Requests on the Horizon?
As so many community associations have encountered first-hand, the Florida and Federal Fair Housing Acts (FHA) require condominium and homeowners associations to grant exceptions (or a waiver) to pet restrictions in order to allow a person with a disability to keep an animal which alleviates one or more symptoms of that disability, but would otherwise […]
Michigan Court of Appeals holds that HOA cannot revoke approvals for docks
In Haan v Lake Doster Lake Association, unpublished opinion of the Court of Appeals, issued January 16, 2020 (Docket No. 345282), the Michigan Court of Appeals held in a 2-1 decision that an Allegan county homeowners association could not revoke approvals granted to owners to install docks. The majority opinion relied on the terms of […]
Wisconsin Supreme Court To Consider Case From Vilas County
The issues in the case include “does Wisconsin trademark law allow an implied assignment of trademarks to a new owner when no other business assets or services are transferred”. Another question is whether Wisconsin’s Condominium Ownership Act requires control of a trademark go to a condominium association when a property is converted to a condominium. […]
Beware the Heavy Hand: HOA board members and property managers can be personally liable for damages
Recently, a Federal District Court in Nevada made clear that homeowners associations, their boards of directors, and their management companies should ensure that their actions and omissions are reasonable, even when dealing with residents that may not be acting in good faith. This article summarizes a case where an HOA initially prevailed in the face […]
Can an Association Be Held Liable for Discriminatory Conduct of Residents? (FL)
On a daily basis we read about acts of hatred and discrimination occurring in our society. As residential communities are microcosms of the society at large, associations, too, are increasingly faced with determining how to deal with such issues. Legal precedent has established that associations may be held liable for discriminatory acts committed by its […]
Keeping Up With Legislation: How do Changes in the Law Affect Your Governing Documents and When Should You Amend?
A board member in a small, close-knit community recently posed a question to me that I have heard many times in one form or another. He asked, if a local ordinance already bans an activity the HOA is trying to stop, is there any point to the HOA banning the same activity in their governing […]
Mitigating Risk: How Lawsuits Affect an HOA
Accompanying the duties of board membership, liability proves a slippery slope that could appear complicated and overwhelming if you find yourself facing a potential lawsuit. Liability often lingers in the guise of fine print. However, equipping yourself and your board with the right tools can help prepare for unprecedented situations. Read the article………………………..
Board: Be Mindful of FCCPA When Collecting Past Due Condo Assessments (FL)
The ability to collect assessments from unit owners on a timely basis is a key component to the financial health and stability of a community association. An association’s governing documents, as well as the applicable community association statutes (i.e., Chapter 718 for Condominiums, Chapter 720 for HOAs and Chapter 719 for Co-Ops) provide several enforcement […]
New HUD Guidelines on Assistance Animals
Purpose:This notice explains certain obligations of housing providers under the Fair Housing Act (FHA) with respect to animals that individuals with disabilities may request asreasonable accommodations.There are two types of assistance animals: (1) service animals, and (2) other trained or untrained animals that do work, perform tasks, provide assistance, and/or provide therapeutic emotional support for […]
Let the Kids Play (CO)
On January 27, 2020, the Colorado legislature introduced SB 20-126 . If passed, the bill would prevent a community association from prohibiting a licensed child care center from operating in the community. Read the article………………………
6th Circuit Affirms Dismissal of Plaintiff’s FDCPA Suit over Law Firm Debt Collection Letters
The Sixth Circuit Court of Appeals affirmed the dismissal of a plaintiff’s complaint after it found that the plaintiff, who alleged violations of the FDCPA by a law firm that sent him two debt collection letters, showed no injury-in-fact traceable to the defendant’s challenged conduct, and therefore lacked standing to sue. Read the article………………………
What Your Community Association Needs to Know About the Legalization of Recreational Marijuana in Illinois
Governor Pritzker has signed legislation known as the Cannabis Regulation and Tax Act and the Cannabis Control Act. As a result of such action, on January 1, 2020, Illinois joined the limited number of states that have legalized the recreational use of Marijuana. Importantly, this legislation also amends the Illinois Condominium Property Act (“ICPA”). The […]
New Guidelines for FHA Financing in Condominiums (UT)
If you’ve ever worked with a Condo Association to obtain project approval for FHA financing, you are aware that the process can be cumbersome. It involves gathering and presenting governing documents, financial statements, and insurance policies, among other required documentation and certifications. Read the article…………………………
Insider Real Estate and Community Association Law Update (FL)
A member in a private aviation community consisting of fifty private residences paid a private pilot to fly him and several co-workers out of the community’s airport several times per week. The community’s board of directors called a meeting to review the member’s status in light of those flights, which it contended constituted use of […]
Solving the mystery behind access to association official records (FL)
One of the biggest complaints expressed by association unit owners is the lack of transparency and/or access to information regarding the operations of the association. It seems that vital operative documents such as the Declaration, By-Laws, meeting minutes, contracts, and bank statements are a mystery to most owners. This mystery is actually a myth, as […]
Federal Rule Changes Impact Real Estate
The start of the New Year means new laws go into effect, many of which impact buyers, sellers, homeowners, and investors in real estate. This year, several new laws and regulations will make it easier for certain homebuyers to obtain financing, investors to obtain the insurance they need, and property owners to take advantage of […]
State Supreme Court declines to hear Denver councilman’s case (CO)
In October 2011, Hinds bought a condominium at 1950 Logan Street. He learned that the seven handicap parking spaces at the building had been sold to non-disabled residents after no one with a disability had moved into the building before him. Hinds uses a wheelchair for mobility. Read the article……………………….
Error In Lower Court’s Narrow Interpretation Of Civil Code Section 5975(c) Led To Reversal Of Attorney Fees Denial To Prevailing Defendants (CAA)
In Alexander v. Singletary, Case No. D075943 (4th Dist., Div. 1 January 21, 2020) (unpublished), one of five homeowners in a common interest development unsuccessfully sought judicial declaration that the governing documents were unenforceable as to him, and for partition from the development. Read the article…………………….
Request denied: Islands Community Association ‘deeply disappointed’ in congressmen (GA)
The movement to create a new city in Chatham County is over Tuesday night after State Senator Ben Watson (R – Savannah) and Representative Jesse Petrea (R – Savannah) decided to kill the bill before a House vote. Read the article……………………………
California tries to save law it calls crucial tool in housing crisis
The state is stepping into the legal battle over a proposed condominium project in San Mateo to defend a California law that prevents cities from rejecting multiunit housing that meets their local building rules. Read the article………………………..
Overzealous Board Members: Understanding the Scope of the Board’s Authority to Enforce the Governing Documents
Homeowners associations (“HOAs”) are governed by a group of volunteer members known as a “Board of Directors” (“Board”). Their primary responsibilities include: (1) managing the common areas, (2) managing the HOA’s finances, (3) setting policies to assist in the operation of the HOA, and (4) enforcing those policies along with the HOA’s governing documents. The […]
WA Courts Rule that HOA Members Must Be Present in Person to Vote on Amendments
The Washington Court of Appeals recently held in an unpublished opinion that a requirement in a homeowners association’s bylaws that owners be “present” in order to vote on amendments to that document means that they must be present in person. Read the article…………………………..
2020 Arizona Legislative Session
On Monday, January 13th, the Arizona Legislature’s 2020 session begins. One topic that’s guaranteed to be on the legislature’s agenda is short-term rentals. After signing a May 2019 law that regulated “party house” rentals through sites such as Airbnb and VRBO, Governor Ducey signaled in August that the law would likely be revisited in the […]
Won’t You Be My Neighbor? Fair Housing in Your Community Association (PA)
When a board member or community manager hears the phrase “fair housing”, many thoughts come to mind regarding what this means, and how it may impact their association, but, more often than not, their perceptions are based on historical misinformation passed on to them by others who themselves did not properly understand fair housing. The […]
The Attorney-Client Privilege and Community Associations (NC/SC)
As our community association clients settle into a new year and new issues, many boards with new members find themselves with questions or confusion about the attorney-client privilege. Because this privilege is complicated but incredibly important, we thought it would be helpful to go over the basics and how boards can and should preserve the […]
Lawsuit Says Stalled Access Agreement Led to Fatal Facade Failure (NY)
Most lawyers urge co-op and condo boards to be reasonable when negotiating access agreements with neighboring buildings. Don’t play hardball when a neighbor needs access to your building to make repairs to his building, the counsel goes, because one day you’ll likely need access to his building to make repairs to yours. Read the article…………………..
Minn. Supreme Court hears arguments in White Bear Lake levels case
The Minnesota Supreme Court heard oral arguments on Monday in the case involving water levels on White Bear Lake. Homeowners and others concerned about the lake sued the Minnesota Department of Natural Resources in 2012, claiming the agency mismanaged groundwater pumping and caused the lake’s levels to reach historically low levels. Read the article………………………….
Limitation on HOA Tort Liability for Failure to Uphold Maintenance Obligations (CA)
One of the primary purposes for which a homeowners’ association (“HOA”) is formed is to maintain and repair the HOA’s common areas, as well as any other areas designated within the HOA’s recorded Declaration of Covenants, Conditions and Restrictions (“CC&Rs”) (i.e., HOA Maintenance Areas). Faithfully executing the maintenance obligations under the CC&Rs is important to […]
Orange Beach condo owner files federal lawsuit against city (AL)
The city of Orange Beach is facing a federal lawsuit by one of its own condominium owners. The 18-page lawsuit was filed on Friday in federal court by Larry Wireman, developer of the high rise Turquoise Place condo complex on Perdido Beach Blvd. Read the article……………………………..
Maryland homeowners’ rights bill stems from Ryan Homes issues in Ocean City
In Maryland General Assembly, new legislation will be introduced this session to change Maryland law to stop homeowner associations from signing away the legal rights of its residents without their knowledge. The new bill, called the Sunset Island Act, is based off an ongoing situation in Ocean City. Read the article…………………………..
Michigan Court of Appeals rules that Developer lost right to construct units on common element land
In Cove Creek Condo Ass’n v Vistal Land & Home Dev, LLC, __ Mich App __; __ NW2d __(2019), issued December 19, 2019 (Docket No. 342372), the Michigan Court of Appeals issued a published opinion establishing binding legal precedent and much needed guidance on the interpretation and application of MCL 559.167. In Cove Creek, supra, […]
South Carolina Supreme Court’s Quiet Erosion of Insurers’ Attorney-Client Privilege Rights
One decision that flew under the radar in 2019 continues the recent trend of courts to dispense, under among other things the previously discussed “at-issue” waiver doctrine, with insurers’ fundamental rights to confidentiality with respect to legal advice. In the June 2019 decision In re Mt. Hawley Insurance Co., No. 2018-001170 (S.C. June 12, 2019), […]
Can Your Community’s Developer Use HOA Capital Contributions Collected at Closings to Offset the Developer’s Deficit Funding Obligation? (FL)
Many communities impose a capital contribution (sometimes called an initiation fee) on new owners. This is a one-time, nonrefundable fee paid by the buyer at closing. These fees usually go into a special account used to fund capital improvements and repairs in the community. Both Fla. Stat. §720.308(6) and §720.308(4)(b), prohibit a developer from using […]
Homeowner Associations, Section 1717: $220,000 Fee Award To HOA Under CC&Rs Fees Clause Was Proper (CA)
HOA and HOA directors were awarded $220,000 in attorney’s fees against an unsuccessful plaintiff bringing a suit to challenge HOA’s policies and CC&Rs about parking and the permitting process, as well as enforcement thereof. Read the article………………………….
Religious Discrimination Fair Housing Case Settles for $40,000 (CA)
Just this week, the California Department of Fair Employment and Housing (DFEH) announced that it settled a housing discrimination case involving a condominium owner who alleged her homeowners association and management company violated the law by refusing to permit the resident to display a mezuzah (a small religious object placed on the door of many […]
Resolving Satellite Dish Location Disputes: Sastin 2, LLC V Hemingway Association, Inc.
Homeowner associations often seek to exercise architectural control over exterior structures within their communities which impact community aesthetics. For some issues, however, an association’s concern over the form of a structure potentially impacts its function creating a conflict between the interest of the association and the interest of the owner seeking to install the structure. […]
Court holds off on deciding case of Loveland woman foreclosed on by HOA (CO)
A district court judge said Thursday that she will wait to rule in the case of Loveland resident Martha Hummel, 70, who was foreclosed on by her homeowners association after severe depression rendered her homebound and her automatic dues payment system stopped working. Read the article………………………
New Bill in South Carolina Can Limit HOA Foreclosures on Owners Who Fail to Pay Their HOA Dues
There has been a great deal of controversy regarding how far the influence of an HOA can stretch to the members of its community. There have been many residents that have attempted to eliminate their association from requiring dues on the properties that they own. One issue that has gained a great deal of press […]
SC home sold for $3,000 over late $250 HOA fee. Supreme Court calls that ‘unconscionable.’
They didn’t pay $250 in homeowners association fees. For that, one Midlands couple lost their home of 21 years. Unbeknownst to Devery and Tina Hale, their $128,000 house in Irmo was sold at auction for $3,000 in 2014. Read the article……………………………