In Lemley v. Aliso Homeowners Assn., Inc., Case No. B288789 (2d Dist., Div. 3 July 3, 2019; posted July 5, 2019) (unpublished), HOA and homeowners got entangled in an easement agreement dispute in which homeowners wanted specific performance/declaratory relief to enforce an amendment to the agreement, while HOA defended on the principal grounds of mootness […]
Certain home-based daycares get new protections (VA)
Home-based childcare providers can breathe a sigh of relief after Virginia passed a new law giving certain providers some protection. The new law which took effect on July 1 is specifically protecting home-based childcare’s that reside in areas that are beholden to Home Owners Associations. In the past Home Owners Associations would try to ban […]
Granny flats may get easier to build (CA)
State lawmakers believe too many California homeowners still struggle to build granny flats, with high fees, construction costs and regulations stalling even the most careful plans. A handful of proposals in Sacramento would expand the years-long efforts to clear hurdles for homeowners interested in building auxiliary dwelling units (ADUs) on their property. The measures would […]
Court of Appeal Upholds Pre-Litigation Arbitration Clause (CA)
We recently blogged about the importance of the the plain language of an association’s Declaration when following pre-litigation requirements to a construction defect claim. On March 18, 2019, the California Court of Appeal ruled that trial courts should not deny a homeowner of his right to submit a case to arbitration pursuant to the CC&Rs […]
Regulation of Display of American and North Carolina Flags in HOA & Condominium Associations
Happy Fourth of July! It is the time of year when our firm gets many questions regarding the display of United States and North Carolina flags in their community associations. Summer is a popular time of year for sun, sand, BBQ cookouts, and for display of patriotism! In our experience, we have found that most […]
How Florida’s Adoption of the Daubert Standard Can Impact Construction Defect Lawsuits
On June 26, 2019, the Sun Sentinel published an editorial: “The Florida Supreme Court’s new evidence rule makes it harder to sue,” which is one of the many recent articles providing commentary on the Florida Supreme Court’s May 23, 2019 ruling, which changed the standard in Florida cases for evaluating and admitting expert testimony. Read […]
Top Risk Management Issues for Florida Condo Developers: Part I
The liability assumed by condominium developers in Florida is both significant in breadth and in duration. Under Florida’s Condominium Act Warranty Law, developers are as equally liable as the contractor to unit owners, successor owners and the association for “fitness and merchantability for the purposes or uses intended.” Fla. Stat. 718.203. Read the article……………………….
What Every HOA and Condo in Transition/Turnover Should Know About Florida’s Statutes of Limitations and Repose
We are frequently retained by homeowners associations and condominium associations who have just undergone transition/turnover from developer control to control by the unit owners other than the developer. Two of the first questions we ask them are 1) what amenities and other common elements does the association own or is it required to maintain; and […]
Private Flood Insurance Mandatory Acceptance Begins July 1, 2019
In February 2019, the Board of Governors of the Federal Reserve System, the Farm Credit Administration, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency (the interagency regulators) issued a final rule implementing the portion of the Biggert-Waters Flood Insurance Reform Act mandating acceptance of […]
We’ve Been Sued! We Need to Sue! What to Expect When Your Association Goes to General District Court (VA)
Community associations are not immune from being sued or having to file suit. Community associations frequently are in court for issues such as the collection of unpaid assessments from residents, disputes with contractors, and covenant and rule enforcement. Read the article…………………….
Legislative Update: Texas HOA Legislation in 2019
The 2019 legislative session recently ended, and we at SpectrumAM would like to inform our boards that little was passed that will impact SpectrumAM’s clients or the association management industry in general. Like many bills, most of the items discussed at the beginning of the session failed to make it out of committee, and some […]
Rogers Park condo association files class action vs laundry machine service company, says fees not in contract (IL)
A Rogers Park lakefront condominium association has filed a class action lawsuit against a New York-based company that leases laundry machines for commercial use for allegedly charging previously not-agreed-to administration fees. The condo association, 1050 West Columbia Condominium Association, filed a lawsuit June 18 in Cook County Circuit Court against CSC Service Works Inc. alleging […]
Washington Legislature Amends WUCIOA
The Washington Legislature recently approved a new law updating the Washington Uniform Common Interest Ownership Act (“WUCIOA”; RCW 64.90) in various ways. The most significant changes related to condominium liability. Read the article……………………
U.S. Supreme Court Holds Debt Collection Firms that Solely Practice Non-Judicial Foreclosure Exempt from FDCPA*
It is no secret that homeowners’ associations (“HOA”) are run and managed through the funds of monthly HOA assessments (“Fees”), and more often than not, HOA’s hire and retain debt collection firms to collect on past due Fees from delinquent members of the community. Sometimes, this leads HOA’s to lose large amounts of money in […]
To Avoid Charges of Retaliation, Start Talking to Employees (NY)
New York City co-ops and condos are facing yet another potential avenue of legal liability, thanks to a recent vote by the city council. Earlier this month, the council voted to amend the city’s Human Rights Law, making it an unlawful discrimination practice to retaliate against an employee who asks for a reasonable work accommodation […]
Condo owner wins appeal against security guard service (TX)
A condominium owner won his appeal of a Harris County trial court’s decision to dismiss his negligence claim against a security guard service. The Texas First District Court of Appeals on June 6 reversed the Harris County District Court’s order dismissing Smith Protective Services Inc. from Igor Galperin’s lawsuit. Read the article………………………
Ohio Grilling Law
Summer season is upon us. Warm days and nights provide the perfect conditions for grilling outdoors on a deck, patio, or balcony. That makes this the ideal time to think about fire safety and to review Ohio’s laws on grilling and the use of open-flame cooking devices. Read the article…………………..
The New “Reefer Madness”: Is Your Association Ready for the Legalization of Recreational Marijuana in Illinois?
Governor Pritzker is expected to sign 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 will join the limited number of states that have legalized the recreational use of Marijuana. Read the article………………………….
The Climate for Licensing Community Association Managers: Sweeping Occupational Licensing Reform
Nearly one in three Americans in the workforce perform a job that requires an occupational license, according to a study published in 2015 by a Minnesota professor and a White House paper published in 2016 . The Trump administration has continued the efforts started by the Obama administration by urging states to take up occupational […]
7 Challenges to Construction Defect Claims
Whether a project is big or small, it seems inevitable that construction defect claims will surface. While the nature of these claims may vary, common patterns are generally present, and construction professionals would do well to understand the distinctions. Construction defect claims often fall into one of four categories: design defects, material defects, workmanship defects […]
Michigan Court rules that Homeowners Association did not violate Fair Housing Act in refusing fence for emotional support and service dogs
In Fox Bay Civic Assn, Inc v Creswell, unpublished opinion of the Court of Appeals, issued May 30, 2019 (Docket No. 343384), the Michigan Court of Appeals held that a homeowners association could enforce its deed restrictions banning fences and that a disabled owner could not erect a fence in order to keep her emotional […]
Recreational Marijuana in Condominium Associations (IL)
With the Senate’s recent passage of HB 1438, the Cannabis Regulation and Tax Act (“Cannabis Act”), Illinois is poised to become one of the 11 states that permit both recreational and medical marijuana use. HB 1438 will likely be passed by the Illinois House and subsequently signed into law by Governor Pritzker (feel free to […]
Freedom in Associations: Exercising Free-Speech Rights in an HOA
Freedom of speech is perhaps the most cherished and most important protection provided by the United States Constitution. The delegates to the Constitutional Convention viewed citizens’ right to speak their minds without fear of government retribution as so important that “freedom of speech” is enshrined in the very First Amendment of the Constitution. Indeed, many […]
Agency Revisits Term Limit Issue (FL)
In 2017, the Florida Legislature passed a law which stated that condominium directors could not serve more than 4 consecutive 2-year terms, essentially creating an 8-year term limit. The obvious immediate question was whether this law would be applied retroactively (reach back to prior years of service to determine if a director was “termed out”) […]
Maryland Streamlines Process for HOAs to Remove Antiquated Racist Covenants
Rodgers Forge became the first residential community in Maryland to take advantage of a 2018 law that empowered and required homeowners associations to proactively act to remove covenants that restrict homeownership based on skin color, religion, or nationality, according to The Baltimore Sun. In May, the Towson, Md., community altered 85 covenants written more than […]
Do We Finally Have an Answer to the Age Old Question: Is the Association liable for damages to a unit when the roof leaks? (maybe…)
The facts in this LA case, Sands v Walnut Gardens Condominium Association, are simple. Pipes on the common area roof leaked causing water damage to the owner’s unit. According to the manager’s trial testimony the Association performed no preventative maintenance even though it would have been desirable; he said the roof and pipe had not […]
Sotherly Hotels sues Hyde Resort & Residences association president (FL)
Sotherly Hotels, which previously managed the luxury beachfront development Hyde Resort & Residences in Hollywood, is not taking kindly to Daniel Rutois, a commercial broker who serves as president of the project’s association. Last week, Sotherly sued Rutois and his firm, KGA Management Group, in Miami federal court for commercial defamation and tortious interference with […]
Legal & Legislative Update 2019 – How Will Your Community Be Affected? (NY)
Laws, and the legal decisions that support and enforce them, are constantly evolving and can affect every facet of community life in HOAs, condominiums and co-ops. While law and legal cases can emanate from any of our three levels of government – federal, state or local – most of the developments that affect housing come […]
Recent New Jersey case addresses various issues of importance to the insurance industry
New Jersey Insurance law attorney Jared Stolz explains the Four Seasons at North Caldwell Condominium Ass’n case, a decision from the Superior Court of New Jersey, arising from allegedly defective construction. Read the article…………………………
Homeowner Prevailing In Unlawful Foreclosure Of Condo Unit Case Was Entitled To $434,000 In Damages And $720,000 In Attorney’s Fees (CA)
Yikes! Talk about a change in fortune based on a prior appeal. Homeowner finally won, obtaining damages and substantial attorney’s fees for hanging in there to the end. In Multani v. Castle Green Homeowners Assn., Case No. B278397 (2d Dist., Div. 7 May 28, 2019) (unpublished), HOA earlier won a summary judgment and $90,000 in […]
Condominiums Must Abide by Denver’s New Benchmarking Ordinance (CO)
In an effort to preserve integrity, quality of life, and strengthen the local economy the Denver Department of Public Health and Environment established an Energy Efficiency Program. An integral part of this Energy Efficiency Program is the county’s new Benchmarking Ordinance. The ordinance is sited in the Denver Revised Municipal Code, Chapter 4, Article V. […]
Legislative Session Update Part II – Bills That Were Passed (FL)
What a difference a month makes…Last month, we provided an update on various pieces of legislation that would have impacted community associations throughout Florida. This month, we report that almost none of those extensive proposed changes were adopted by the legislature. Read the article……………………….
2019 Legislative Updates (VA)
During its 2019 legislative 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 July 1, 2019, unless otherwise noted below. Also, please note that Chapter 55 of […]
When It’s Time to Evict or Eject an Owner or Tenant From a Condo (NY)
It’s a very unpleasant but often common situation in community living: the moment when the association has to evict or eject an owner or tenant. It could be for a variety of reasons, but mostly due to the delinquency of the person to pay his or her share in order to keep the community running. […]
Fair Housing & Religious Accommodation: Curto v. A Country Place Condominium Association, Inc.
Sometimes, a community association tries to accommodate religious preferences and ends up discriminating on another basis. That is what happened in Curto v A Country Place Condominium Association, Inc., according to the U.S. Court of Appeals for the Third Circuit in a New Jersey condominium case handed down yesterday. In this case, the condominium had […]
BGPOA lawsuit heads to court (CO)
Last month, Baca Grande Subdivision resident Bayardo Reno Sandy filed an answer to a lawsuit entered into court records in November 2018 by the Baca Grande Property Owner’s Association (BGPOA). The court ruled on his answer Tuesday, denying Sandy’s motion to dismiss the case on the grounds it has already been filed in federal court. […]
Condo association sues Fort Lauderdale after city rejects plans for downtown site (FL)
When Trammell Crow Residential brought plans to bring a new 21-story, 180-unit apartment tower in downtown Fort Lauderdale in 2017, the project seemed like a sure thing. Two city committees had found the project to have largely met the city’s guidelines. It also received approval from the historic preservation board. But a year later, under […]
Washington Court of Appeals Affirms Covenant Enforcement Jurisdiction
The Washington Court of Appeals recently ruled in an unpublished opinion that a superior court had jurisdiction over a covenant enforcement lawsuit by a community association against a set of its owners. Read the article………………………..
Premises Liability for Failure to Enforce (FL)
There are two recent cases of which community association boards should be particularly aware of. Both cases involved residents who were injured by third parties but who filed suit against their association claiming that the association was also partly responsible for their damages because of their failure to enforce the rules and restrictions in the […]
A New Regulation Looms Ahead (NY)
Elevator regulations are a big part of what dictates the safety and cost of elevators. In New York City, the Department of Buildings (DOB) is the regulator of elevators. As the result of an increase in elevator accidents, in part due to aging elevators, the DOB has added four new regulations. In 2009 the DOB […]
Insurance company loses effort to remand case involving coverage of Boca Raton condo president (FL)
An insurance company’s move to send back to state court a coverage dispute with a Boca Raton condo association has been denied by a West Palm Beach federal judge. According to the May 9 court filing in the U.S. District Court for the Southern District of Florida, plaintiff, American Mutual Insurance Company (Amica) asked the […]
COLLECTIONS CORNER : Credit Reporting
This month in Collections Corner, we will return to an issue we first addressed in our December 2017 Newsletter – reporting delinquent homeowners Community Association debt to the credit bureaus (enclosed). To briefly recap the contents of that letter, our office became aware of a company advertising services to report delinquent homeowners on behalf of […]
2019 Condominium Warranty Reforms and WUCIOA Clarifications (WA)
The Washington Legislature wrapped up its 2019 session by enacting much-anticipated reform to the condominium implied construction warranties. The warranty reform bill also included important clarifications of the application of WUCIOA to existing projects that straddled the effective date of WUCIOA. These reforms are contained in SB 5334, which becomes effective on July 28, 2019. […]
Changes to Arizona law that forces condo owners to sell
A law that forces Arizona homeowners to sell their condos to real estate investors is getting an update. The Arizona Condominium Termination law allows real estate investors to buy 80 percent of the units in a complex, take over the homeowner’s association, and force the remaining 20 percent to sell at a fair market value […]
Court Reverses Itself on Liability for Racial Discrimination (NY)
In a mystifying reversal, the U.S. Court of Appeals for the Second Circuit has “withdrawn” its recent decision decreeing that landlords – including co-op and condo boards – face liability under the Fair Housing Act if they fail to address racial discrimination between residents. One attorney described that decision as a “big deal,” with as-yet […]
Judge removes man from condo board after lawsuit, citing threats and racism (CO)
A judge last month barred the man who developed the North of Nell condominium complex at the base of Aspen Mountain from serving on the property’s board of directors for three years and ordered him to have no contact with any of its employees, citing his history of threats and anti-Semitic and sexist comments. The […]
NC Community Association Legislative Update – May 10, 2019
Yesterday, May 9, 2019 was the “crossover deadline” in the North Carolina General Assembly. In short, that means that bills not related to taxes or spending must have passed one chamber to be eligible for consideration during the two-year legislative session. Read the article……………………
Special exception in SC law could save 17 beach houses, but at what cost?
DeBordieu Colony, a wealthy, gated beach community, was the benefactor of targeted legislation in the Statehouse this week that would protect a stretch of beachfront houses. That’s if Gov. Henry McMaster signs it into law. Lawmakers adopted a bill in the final week of the 2019 session that would allow the tony retreat to rebuild […]
Maryland Bankruptcy Court Determines Priority of Homeowner Association Fees versus Mortgage Lender’s Deed of Trust
In 2017, the Maryland Court of Appeals in the case of Select Portfolio Servicing, Inc. v. Saddlebrook West Utility Company, 455 Md. 313 (2017) (“Saddlebrook”) held that a provision in a recorded declaration by a utility that purported to create a lien to secure payment of an annual assessment to cover the construction of water […]
Law Review: Take care when refusing entry of service animal (NV)
I have written in earlier columns about the importance of honoring a request made by a disabled person for a guide dog, signal dog or service dog. Apparently, a certain homeowner association did not get the message. A new Nevada case, Sanzaro v. Ardiente Homeowners Association, underscores the point. Read the article……………………..