The 2017 bill providing website guidelines for condominium associations with more than 150 units (which does not contain timeshares) is going through some growing pains. The new law amended Section 718.111 of the Florida Statute and raises issues boards must consider as they strive for compliance. Read the article……………………
HOA responsibilities for homeowners being sexually harassed by other homeowners (CA)
Homeowner associations are notorious for issuing notices for the smallest infractions, so why are they silent when it comes to sexual harassment? The California Department of Fair Employment and Housing (“DFEH”) receives and investigates fair housing complaints based on numerous protected statuses. In 2017, a total of 212 claims were filed that alleged sex or […]
Architectural Variances Binding Future Owners (CA)
Asked – We are thinking about granting a variance to the Covenants of our Homeowner’s Association. The question is: would the Variance, if granted, apply to the next landowner (i.e., does the grant of a variance run with the land)? Read the Q&A…………………..
HUD Demonstrates Continued Commitment to Aggressive Enforcement of the Fair Housing Act
Fifty years after the passage of the Fair Housing Act, the United States Department of Housing and Urban Development (HUD) continues to demonstrate a strong commitment to Fair Housing, both through the support of private enforcement and through its own public enforcement. HUD recently announced that 80 non-profit organizations committed to fair housing will receive […]
Do Co-op and Condo Boards Have to Reveal Their Plans? (NY)
What is a board’s responsibility to advise a condominium unit-owner about planned work in the building, particularly if that work will have an impact on the unit-owner? That issue was considered in 345 East 50th Street LLC vs. The Board of Managers of M at Beekman Condominium. Read the article…………………..
Condominium Foreclosures and the Banking Industry (CT)
Many times, our clients will rely on the foreclosure process when unit owners are not paying their common charges. On occasion the unit owners will have a mortgage on their unit. When this is the case, the Association has to list the mortgage in its foreclosure action to ensure that the Bank has notice of […]
Virginia passes bill for homeowners to make HOA fees more transparent
Virginia Governor Ralph Northam signed a bill this week that would give homeowners more transparency regarding different fees. The bill requires Homeowners’ Associations boards to make annual budgets available to homeowners prior to the new fiscal year. Read the article……………………..
What Every Condominium Association Needs to Know About Security Deposits(FL)
………disputes relating to security deposits collected by our condominium associations from tenants who rent from individual unit owners. It is standard procedure for many associations, if the authority to do so appears in their declaration or bylaws, to require a security deposit from a prospective tenant. This is separate and apart from any other deposit(s) […]
The Million Dollar Flower Pot Fiasco
No matter how innocent or small the violation, never underestimate the possibility of it blowing up and costing both the association and owner far more money than it ever should have. Case in point: Avignon Villa Homes and Mr. Jim Hildebrand. This dispute involves a Kansas community where an owner decided to fight for his […]
Court clears way for completion of Bartonville water tower (TX)
The actual verdict against CTWSC, however, was not based on any water-related issues, adjacent property devaluation, or even aesthetics. It was based on CTWSC’s failure to comply with the Covenants, Conditions and Restrictions (CCRs) of Saddlebrook Estates HOA. “The HOA violation wasn’t brought up until 2014,” said Hanson in November 2015. He contended that, as […]
Don’t Screw Up Your Architectural Committee and Approval Process (NC)
In a decision issued today (March 19, 2019), the North Carolina Court of Appeals examined the issue of proper architectural committees and their decisions. Makar vs. Mimosa Bay Homeowners Association is an “unpublished” opinion from the NC Court of Appeals. That means that the decision is not controlling legal authority and should not be cited […]
New Jersey Court Ruling Addresses Enforceability of Waiver of Subrogation Provisions in Homeowners Association Documents
A continuing issue in the relationship between community associations and their constituent property owners has been the allocation of responsibility for damages to the residences as a result of a casualty originating in the common elements or common property. It is commonplace for homeowner association documents to provide that the homeowner’s insurance policy must contain […]
Parking and Storage Litigation Resolved in Favor of Condominium Association
The Washington Court of Appeals recently ruled in favor of a condominium association in an unpublished opinion concerning the ownership of parking spaces and storage areas. An owner came to believe that certain parking spaces and storage areas were appurtenant to his units. Read the article…………………..
No Abuse of Discretion In Awarding Prevailing Plaintiff $114,990.75 In Lawsuit Against Homeowners Association (CA)
The Broadway Hollywood is a 10-story historical building on the corner of Hollywood and Vine. It was constructed in 1927 and originally used as a store. However, the building was abandoned in 1987 and remained vacant for 18 years – until it was revitalized and converted from an obsolete building to modern use. Today the […]
Homeowner Plaintiffs In A Common Interest Development Dispute Over Assessment Liens Must Pay Prevailing Party Defendants $125,796.50 In Attorney Fees (CA)
The Davis-Stirling Act (Civ. Code section 4000 et seq.) governs the creation and operation of common interest developments, and requires such developments to be managed by a homeowners association, which homeowners are generally mandated to join. In Bertoli v. Dennis, Case No. A150924 (1st Dist., Div. 5 March 5, 2019) (unpublished), a Board of Governors […]
Former property owner not owed relief in fraud case against homeowners’ association (TX)
The Texas 14th Court of Appeals ruled against a homeowner March 7 in his allegations of unfair debt collection practices against his homeowners’ association and related entities. Justice Frances Bourliot wrote the opinion, and Chief Justice Kem Frost and Justice Tracy Christopher concurred. Although a trial court ruled in favor of Robert Burton and didn’t […]
Fire Sprinklers now being required for older high rise condos (FL)
Legislation is set to be heard by a Senate committee next week that would require older high rise condominiums in Florida to have sprinkler systems by January 2023. The measure says the multi-family buildings, mostly built in the 1960s and 80s, need to have sprinkler systems in each condo unit, or at to at least […]
Homeowner Associations, Section 1717: One Homeowner Prevailing Over Another In Dispute Over Location Of A Fence Was Entitled To Fee Recovery Under Civil Code Section 1717 (CA)
In Hunkel v. Gerhardt, Case No. H044753 (6th Dist. March 12, 2019) (unpublished), two neighboring homeowners squared off in a dispute over the placement of a fence by one homeowner group. The defendant homeowners claimed that there was no proper board of directors making a decision on the fence dispute, a position ultimately embraced by […]
Finally! Some Push Back on Short Term Rentals (FL)
After a series of rulings adverse to community associations’ and local governments’ efforts to limit or prevent short term rentals, the Third District Court of Appeal in City of Miami v. Airbnb, etc., et al., No. 3D17-1213 (Fla. 3d DCA, December 5, 2018), upheld the City of Miami’s code ordinance preventing short term rentals. Read […]
Declarant Contracts, Including Easements, Can Be Voided (AZ)
Becker Boards Summit, LLC v. Summit at Copper Square Condominium Association – 2018 WL 6695279 ( 2018 Ariz.) Issues: The court in this case addressed two important issues: Can a Developer, before turnover, amend a Declaration to convert Common Element to Limited Common Element for the benefit of a Developer Unit? Can Developer contracts entered […]
Florida’s Department of Business and Professional Regulation Issues New Guidelines for Community Associations – Stricter Disciplinary Civil Penalties of Noncompliance Now In Effect
Board members and property managers of condominium communities need to be aware that the State of Florida’s Department of Business and Professional Regulation issued revisions to rules pertaining to violations and penalties, 61B-21, Condominium Resolution Guidelines for Unit Owner Controlled Associations, which went into effect December 5, 2018. Read the article………………….
HOA decision given judicial deference (and a special election recommendation) (CA)
Our resort community is loaded with homeowners associations – governed by a law known as the Davis Stirling Act. Being on a homeowner board is often a thankless job, but California courts have made it easier. Read the article…………………..
Make Sure to Contact Your Community Association Attorney When…
Serving on the board of directors of a community association, whether it is a condominium or homeowners association or a co-op, comes with a lot of responsibility. Part of being a successful leader is identifying potentially problematic situations and knowing when to ask for professional help. Read the article…………………..
Acceptance of Private Flood Insurance – Final Rule
Federal banking agencies issued a final rule, effective July 1, 2019, implementing the requirement in the Biggert-Waters Flood Insurance Reform Act (the “Act”) for the acceptance of private flood insurance on covered properties. The final rule largely mimics the proposal (which we addressed previously here), but with a few interesting revisions and additional details. Read […]
Fannie and Freddie Litigation Guidelines a Minefield for Condo Boards
When deciding whether to lend money to potential buyers or to unit-owners who want to refinance their mortgage in a condominium, lenders follow guidelines issued by federally backed Fannie Mae and Freddie Mac, which buy mortgages from lenders. Those guidelines were updated last year, and they contain a minefield of pitfalls for condo boards. One […]
Optional Condo Terminations (FL)
In part one of this blog post, we covered the basics of condo terminations, dived into how they work, and promised that in part two we’d cover recent legal changes for terminations, which include restrictions on terminations, stricter voting requirements, and other changes. Read the article…………………
Condo concerns voiced during Halsey Beshears confirmation hearing (FL)
Department of Business and Professional Regulation (DBPR) Secretary Halsey Beshears’ confirmation process has encountered some conflict. During a Senate committee hearing Wednesday, state Sen. José Javier Rodriguez, a Miami Democrat, voted against Beshears, a Republican former House member from Monticello. Rodriguez, explaining the vote, cited inaction on problems surrounding condominium complaints. Read the article………………….
Courts Will Defer to the Decisions of Boards Based on Good Faith and Regard for the Best Interests of the Community (CA)
In Eith v. Ketelhut, No. B272028 (Cal. Ct. App. Dec. 17, 2018), a homeowners association featuring estate properties where members maintain fruit orchards and vineyards yielding fruit that can be made into wine and offered to the public for sale required the Board of Directors (“Board”) to determine if sale of products made from fruit […]
Condominiums Can Be Subject to Extinguishment Under The Marketable Record Title Act (FL)
An interesting new decision out of Florida’s Second District Court of Appeal addresses whether an Association, whose members are unit owners within a condominium, was entitled to revive its declaration of covenants and restrictions pursuant to the Marketable Record Title Act (MRTA) as it existed in 2016. As we have addressed in previous posts, generally […]
Void But Valid: Good-Faith Purchaser for Value Keeps Title Despite Procedural Defects in Foreclosure Sale (NC)
A divided panel of the North Carolina Court of Appeals holds that a good-faith purchaser for value at a foreclosure sale obtains a valid deed regardless of the amount paid, even where the foreclosure itself is void due to procedural errors. Read the article………………………
Landowner Challenges Conservation Terms (NC)
The owner of more than 12 wooded acres on Crab Point Bay that was set aside for conservation in 2003 has filed a civil case in Carteret County Superior Court seeking to remove deed restrictions on the property to allow the land to be sold and developed. Read the article………………………
Condominium Conversions Defect Actions Under California Law: Not Your Run-of-the-Mill Defect Case
Condominium conversions may present developers and contractors with both additional defenses and potential liability pitfalls when a defect action is subsequently alleged by an HOA. On the plus side for the converter, unlike new residential construction projects, California Civil Code Section 896, which is commonly referred to as “SB 800,” or the “Right to Repair […]
The Armor of the Business Judgment Rule Can Be Pierced (NY)
Under most proprietary leases and applicable law, cooperative boards are free to disapprove an application to purchase a unit for any reason or no reason – so long as the board does not act for an unlawful reason, such as discrimination against one of the city’s numerous “protected” classes. Therefore, lawsuits challenging a board’s rejection […]
2018 Case Law and Legislative Updates (IL)
There have been a number of changes in Illinois laws in 2018 that have impacted the management of condominium and common interest community associations. Below is a summary we have compiled in an attempt to keep our clients and the community aware of the implications of these legal updates. Read the article……………………
Whoop! There It Is: The Manager Licensing Bill (CO)
Over the last year, lots of industry professionals were wondering what would happen with manager licensing and whether it would actually sunset on June 30, 2019. Many predicted new legislation would be introduced in 2019 extending the CAM program, with perhaps a few tweaks. For those of you who predicted new legislation, you were correct. […]
Recent Washington Court Decision Examines Whether Lien Claim on Condominium Unit Was Frivolous (Subject to Release) or Excessive (Subject to Reduction)
On February 11, 2019, Division One of the Washington Court of Appeals issued an opinion in the case of Woodley v. Style Corp. d/b/a Servpro of Shoreline/Woodinville, No. 77352-6-I (Wash. Ct. App. Feb. 11, 2019). The case highlights the care that should be exercised in filing a lien claim for services furnished to improve a […]
Permitted Breach of Rules by Association Does Not Create Liability for Resulting Accident (FL)
Lack of parking can be an extremely troublesome issue for many South Florida community associations. For HOAs with rules that prohibit on-street parking, the dearth of available spaces for residents and their guests can leave many homeowners feeling stymied and annoyed. Read the article………………………..
The Best Defense Against a Charge of Defamation (NY)
In these contentious times, politics at all levels – even at the level of co-op and condo board elections – tend to get ugly. Charges and counter-charges circulate with lightning speed. One recent condo board election led to a lawsuit over the truth of charges emailed by one of the candidates. The case turned on […]
Insider Real Estate and Community Association Law Update (FL)
Condominium Association Faces Unit Owner Class Action Pinnacle Condo. Ass’n, Inc. v. Haney, 44 Fla. L. Weekly D203 (Fla. 3d DCA Jan. 9, 2019) After Hurricane Wilma and Hurricane Katrina caused structural damage to the four high-rise towers of the Pinnacle Condominium in 2005, the Condominium Association entered into two contracts to repair the damage. […]
New Final Rule Offers Welcome Relief And Guidance On Private Flood Insurance Requirements
The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Farm Credit Administration and the National Credit Union Administration (the Agencies) recently released a final rule offering significant relief and guidance to institutions in connection with accepting private flood insurance for properties […]
Ellsworth Mews Townhomes is accused of discriminating against a resident who has a disability (PA)
Residents are suing a townhouse/condominium association, citing alleged breach of contract, disability discrimination and retaliation. John Doe, Jane Doe and Mary Doe filed a complaint on Jan. 25 in the U.S. District Court for the Western District of Pennsylvania against Ellsworith Mews Townhomes Condominium, aka Ellsworth Mews Townhomes Association and others for alleged violation of […]
Recent Changes to the Marketable Record Title Act (FL)
Imagine not being able to collect homeowners’ association dues or enforce rules in your community. For homeowners’ associations approaching thirty (30) years of age, this threat is more than a cause for sleepless nights and may become a reality if covenants are not preserved in a timely fashion from the operation of The Marketable Record […]
DBPR’s Condominium Division Increases Disciplinary Civil Penalties Against Associations (FL)
Many community associations unwittingly operate contrary to the requirements of Florida law. Those mistakes can prove costly. Pursuant to section 718.501(1)(d)(6), F.S. and Chapter 61B-21 of the Florida Administrative Code, the Division of Florida Condominiums, Timeshare and Mobile Homes (“Division”) sets forth disciplinary guidelines and civil penalties against condominiums and cooperatives for violations of Florida […]
MCL 559.201 and MICH ADMIN R 559.511: Is Your Reserve Fund Underfunded? (MI)
In Michigan, the laws related to the governance of the formation and operation of condominium projects are found in the Michigan Condominium Act (the “Act”), MCL 559.101, et seq. MCL 559.205 of the Act requires a condominium association to maintain a “reserve fund,” to be set aside for major repair and replacement of the common […]
Condo owners lose key remedy for construction problems
A recent Illinois Supreme Court ruling blocks a route condo owners have used for decades to seek financial recovery for defects in construction, attorneys say. In its Dec. 28 opinion on a case between an Evanston condo association and a manufacturer of aluminum windows and doors, the court ruled there is no implied warranty on […]
Recent California Court of Appeal Ruling Limits Anti-SLAPP Protection for Actions by Board of Directors
The recent unpublished opinion of Chemers v. Quail Hill Community Association et al. (2018) shines some light on the oft-misunderstood California Anti-SLAPP statute and its effectiveness as a defense for actions by a homeowners association’s board of directors. The Fourth District California Court of Appeal held that certain actions by the board in a dispute […]
Litigation over lake level in hands of appellate panel (MN)
Attorneys representing the Department of Natural Resources (the appellant) and the White Bear Lake Restoration Association (the respondent) chose to spend their minutes arguing over the Minnesota Environmental Rights Act (MERA). That state law provides civil remedy to protect air, water, land and other natural resources from pollution, impairment or destruction. In its seventh year […]
Lawsuit blames companies for underground fire (AR)
A Bella Vista man sued today to force two companies and the Bella Vista Property Owner’s Association to pay the cost of extinguishing and cleaning up an underground fire at a one-time stump dump on Trafalgar Road. The cost of the work could be between $21 million and $39 million, Gov. Asa Hutchinson has said. […]
Condo owners win appeal over revising homeowner rules (FL)
A group of condominium owners have won a court appeal after the state’s Department of Economic Opportunity claimed that the association was not entitled to amend or revise its property owners rules. On Jan. 25, the U.S. District Court of Appeal of Florida, Second District granted a reversal of a lower court ruling that found […]
Malicious Prosecution – Can It Result From Filing A Lis Pendens? (SC)
Those of us with any significant history of practice in South Carolina have made an allegation or defended against an allegation of slander of title. Such allegations, and actions for slander of title, were significantly limited, however, with the advent of Pond Place Partners.[1] There, the South Carolina Court of Appeals found the filing of […]