We have done many posts showing how HOAs or owners can be subject to substantial fee exposure for losing HOA-owner disputes. Seahaus La Jolla Owners Assn. v. Witt, Case No. D071229 (4th Dist., Div. 1 Nov. 27, 2018) (unpublished) illustrates how this can happen, with the non-prevailing condo owner hit with $225,000 in fees in […]
Ex-Board Member of Homeowner’s Association Sues for Improper Removal; Awarded a Proper Removal (DE)
In Beck v. Greim c/o Bombay Woods Maintenance Corp., the Delaware Chancery Court issued a Master’s Report making recommendations regarding a dispute between a homeowner, who had served as a director and officer of the homeowner’s association, and the homeowner’s association and its president, concerning alleged violations of Delaware General Corporation Laws and the association’s […]
HOA Homefront: Tighter protection of HOA funds in 2019 (CA)
The most important new legislation changing how HOAs operate is Assembly Bill 2912. AB 2912 began with its purpose “to take important steps to protect [HOA members] from fraudulent activity by those entrusted with the management of the association’s finances.” Sponsored by the Community Associations Institute and the California Association of Community Managers, the bill […]
Associations Should Repair Life Safety Defects Even During the Pendency of Litigation (FL)
With the construction boom in full swing, more and more construction defect lawsuits are being filed on behalf of condominium associations because of countless construction defects that occurred during original construction. These construction defects are particularly prevalent in Miami where the unique real estate development market, weather, and shortage of skilled trade workers make it […]
Pennsylvania Man Not Entitled to Attorneys’ Fees in Homeowners Association Declaration Amendment Lawsuit
The Commonwealth Court of Pennsylvania ruled this month that a man from Pittsburgh is not entitled to recover attorneys’ fees and court costs from litigation he won against his homeowners association. Matthew Serota filed suit against the London-Towne Homeowners Association in 2015 after the association amended its Declaration of Covenants, Conditions and Restrictions (the “Declaration”) […]
AB 2912: New Protections Against the Misuse of HOA Funds (CA)
Assembly Bill 2912 (“AB 2912”) was recently enacted by the California Legislature. Its changes to the law, which take effect January 1, 2019, are intended “to protect owners in a [HOA] from fraudulent activity by those entrusted with the management of the [HOA’s] finances.” To that end, AB 2912 (a) significantly increases the financial review […]
Unsafe Balconies, Water Leaks, Other Flaws Claimed at Luxury Sunny Isles Beach Condo (FL)
Sunny Isles Beach’s luxury Regalia condominium, where each unit takes up an entire floor and has floor-to-ceiling glass walls, needs $30 million in repairs due to construction and design defects, an attorney for residents said. Problems include safety hazards like using the wrong or no screws for balcony railings and putting electrical grills meant only […]
Titeflex wants Chapel Ridge Condo Association’s lawsuit over lightning strike moved moved to federal court (MO)
A Massachusetts-based company facing a northwestern St. Louis suburban condominium association’s product liability lawsuit, stemming from a lightning-caused fire last year, wants the case to be heard in federal court. Defendant Titeflex Corporation, whose parent company is Smiths Group International Holdings, filed its notice of removal on Nov. 21 in the U.S. District Court for […]
MRTA and How to Revive Expired HOA Covenants and Restrictions (FL)
During the last 30 to 40 years, exponential population growth and concomitant community development has occurred throughout the Sunshine State. Most newcomers to Florida during that period of time became accustomed to purchasing homes in amenity-rich communities that offered pools and clubhouses, and, in many instances, gates and guardhouses with a promise of security that […]
Skokie condo owner files suit against Park Ridge law firm over nearly $50,000 assessment (IL)
Skokie resident alleges a Park Ridge law firm failed to investigate assessments on a condo unit on his behalf before he purchased it. According to the complaint, the plaintiff retained the defendant’s services when she purchased a condo in October 2016. She alleges she learned in December 2016 that there was a special assessment passed by […]
The Condominium Fire Sprinkler Retrofit and Engineered Life Safety Requirements (FL)
There appears to be some confusion surrounding the compliance date of the Engineered Life Safety System for those condominium associations that previously voted to opt out of the requirement to install condominium fire sprinkler retrofit. What is not confusing is that the safety of all occupants living in high-rise condominiums is paramount. No one wants […]
Ten HOA Law Gotchas
The legal environment for common interest develop-ments becomes more complicated every time the Leg-islature meets or a court rules. Here are 10 quirky aspects of laws pertaining to “HOAs”—this article’s tag for mandatory membership associations for all types of residential common interest developments, including condominium HOAs (subject to Property Code Chapter 82) and subdivision HOAs […]
Court Addresses HOA Attempt to Restrict Short Term Rentals (TX)
In a recent case, the Texas Supreme Court addressed an attempt by a homeowners’ association (“HOA”) to restrict short-term rentals based upon recorded Covenants, Conditions, and Restrictions (“CC&Rs”) applicable to a residential subdivision. The property was a single-family home. The homeowner rented the home through websites such as VRBO. The HOA issued notices of violation; […]
Appellate Ruling Limits Viability of Blanket Receiverships (FL)
Lack of proper notice was central to the Third District Court of Appeal’s decision in Federal National Mortgage Association v. JKM Services, LLC, Case No. 3D17-370 (Fla. 3d DCA October 3, 2018) limiting a receiver’s ability to recover fees and costs incurred in his efforts to collect rent after having been appointed by a condominium […]
Developers Properly Denied $1.950 Million In Attorney’s Fees Against HOA Under Either Civil Code Section 1717 Or The Common Fund/Substantial Benefit Doctrine (CA)
Market Lofts Community Assn. v. 9th Street Market Lofts, LLC, Case Nos. B280446/B282412 (2d Dist., Div. 2 Nov. 13, 2018) (unpublished) involved a case where an HOA lost a suit against Developers based on a Parking License Agreement (PLA) to which HOA was not a party, with the PLA containing a fees clause. HOA was […]
Appeals panel: Lawyer’s lawsuit vs condo board over parking space groundless, but not a SLAPP (IL)
An Illinois appeals panel says a Loop condo owner’s lawsuit against his association board over a parking space was groundless, but the man shouldn’t be forced to pay the board’s legal defense costs, because the lawsuit didn’t come in retaliation for the board’s prior legal action against him. Read the article…………………
2018 Legislative Update – Condominium Association Board of Director Conflicts (FL)
In this third blog post in a series providing 2018 legislative updates, we discuss legislative changes clarifying condominium conflict of interest statutes. Parts one and two of this series addressed record keeping of condominium associations, material alteration requirements, and material alterations as they relate to electric vehicle owners. Read the article………………..
Association Not Liable for Accidental Death in Common Element Hot Tub (OH)
The Fairfield County Court of Common Pleas recently issued a decision on an association’s liability for a death in the common elements. An owner reserved the association’s pool and hot tub area for an extended family party. Tragically, a two year old child drowned in the hot tub, which broke and was closed that very […]
Arbitrator Not Found to Exceed its Powers (CA)
It is well settled that an association’s CC&Rs (“Declaration”) establishes and controls, among other things, a board’s authority to govern an association provided that the CC&Rs do not conflict with California law and regulations (i.e., Davis-Stirling Act). In such cases, the plain language of the CC&Rs control. (Franklin v. Marie Antoinette Condominium Owners Assn. (1993) […]
Nevada Supreme Court Holds CPL Does Not Protect Loan Assignee
The Nevada Supreme Court recently held that the assignee of a deed of trust was not entitled to bring a claim against the title insurance company arising out of the closing protection letter. See PennyMac Holdings, LLC v. Fid. Nat’l Ins. Co., 423 P.3d 608 (Nev. 2018). In the case, a title agent issued a […]
Associations Must Establish Written Policy for Resolving Unit Owner Complaints (IL)
No later than January 1, 2019, associations must establish and adopt a written policy for resolving unit owner’s complaints. This requirement is under Section 35 of the Condominium and Common Interest Community Ombudsperson Act (the “Ombudsperson Act”) and applies to all condominium associations as well as all common interest community association not exempt from the […]
Legal Considerations for Condominium Deconversions in Chicago
With the demand for apartments in Chicago rising, many real estate developers have discovered a previously untapped supply of potential acquisition targets — residential condominium buildings. This includes older condominium properties plagued by large deferred maintenance obligations and stagnating or declining unit sales prices. Read the article…………….
The Land and Everything that Goes with it: How Community Association Restrictions “Run with the Land”
It may be hard to believe, but community associations (“Associations”) occasionally deal with homeowners who don’t think they are required to pay assessments. The reasoning for these beliefs can range from “I don’t use the pool,” to “I am not part of the Association.” Although the majority of such claims are baseless, some may merit […]
WA Court: HOAs May Record Liens Without Providing Owners With Notice and Hearing
Collecting past due assessments can certainly be scary sometimes. After one homeowners association recorded a lien on a delinquent property and obtained a judgment against its owners, they appealed to the Washington Court of Appeals. The court ruled that the association was permitted to record the lien without providing the owners with notice and an […]
Cease and Desist
If you have been involved as a manager or board member of a community association for any significant period of time-, you have likely come across a difficult owner or tenant who insists on using ineffective communication strategies. Maybe they send you daily or hourly emails demanding information, or post these demands to social media. […]
Judge: Trump Tower racketeering lawsuit can continue (NY)
A federal judge has recently denied motions to dismiss a civil lawsuit filed by the condominium board of Trump Tower at City Center against its former treasurer and his associates for alleged violations of the Racketeer Influenced and Corrupt Organizations Act (RICO). Read the article………………
MCL 559.234 and Mich Admin R 559.111: Know the rules related to shared recreational facilities in Condominiums
Recreational facilities in condominiums are often one of the many amenities that draw potential purchasers to a particular condominium. Co-owners enjoy the use of recreational facilities such as barbeques, basketball courts, boat launches/slips, clubhouses, gyms, parks, picnic areas, pools, private lakes, saunas, spas or tennis courts in many condominiums. Many recreational facilities are common elements […]
Broward County sues Lauderhill condominium association for rejecting resident’s emotional support animal request (FL)
Broward County this week filed a lawsuit against a Lauderhill condominium association after the association allegedly denied a resident’s request for an emotional support animal. The lawsuit, filed by Broward County Attorney Andrew Meyers, accuses Environ Towers I Condominium Association of violating the Fair Housing Act and the Broward County Human Rights Act. The case […]
Collection of Assessments from Third-Party Purchaser in Foreclosure Sales – Where Did 2018 Leave Us? (IL)
There have been a number of cases that came down in 2018 that further clarified (and muddied) the amounts that can be collected from a third-party purchaser at a judicial foreclosure sale. Section 9(g)(1) of the Illinois Condominium Property Act (the “Condo Act”), creates a lien in favor of a condominium association when a unit […]
Wisconsin Supreme Court to hear Sister Bay condo association lawsuit
The Wisconsin Supreme Court has scheduled oral arguments for Nov. 5 in a lawsuit by the Yacht Club at Sister Bay Condominium Association against the Village of Sister Bay regarding noise from concerts at the municipal band shell. Read the article………………..
Obligations under the Condominium & Common Interest Community Ombudsperson Act (IL)
The Condominium and Common Interest Community Ombudsperson Act became effective on January 1, 2017. Generally, the purpose of this Act is to create a State of Illinois-operated mechanism to assist in resolving certain disputes within condominium and community associations. Read the article………………
RGJ investigates: Somersett rock wall failures in Reno test Nevada construction defect law (NV)
Desert shrubs and three small pine trees dotted a dirt slope overlooking the Somersett Golf and Country Club one morning in August. Just below, a golf cart traveled a paved concrete path while a handful of golfers walked the course nearby………….At the center of the ongoing battle at Somersett is that same dirt slope — […]
River City unit owners not complying with deconversion sale process, new lawsuits say (IL)
The River City condo association lobbed the latest legal volley in the drama-filled deconversion of the South Loop building, accusing owners of multiple units of failing to comply with the sale process. The association filed suits against at least 19 unit owners in the building, accusing them of failing to turn over documents needed to […]
Can condominium associations buy units at tax deed sales? (FL)
Q: One of the new laws for condominiums stops board members from purchasing a unit at a foreclosure sale, how about a Tax Deed Sale? Read the Q&A……………….
Collections Corner: Filing Of A Lawsuit (MD/DC)
This month we are highlighting the process of filing a lawsuit to obtain a judgment against a delinquent homeowner. After a lien is filed, we generally send a lien notification letter to the delinquent homeowner advising him or her that a lien has been filed against the property and; further, if he or she fails […]
Ban on Short-Term Home Rentals Is a “Development” Subject to the Coastal Act
Underlining the broad and expansive definition of “development” under the California Coastal Act, the Second Appellate District ruled that a coastal homeowners’ association’s ban on short-term rentals is considered “development” subject to the requirements of the Coastal Act. Greenfield v. Mandalay Shores Community Association, 21 Cal. App. 5th (2018) Read the article………………
Attorney can’t be sued by non-client, Colo. court rules; Dispute arose over condo parking spaces (CO)
The Colorado Supreme Court determined that a non-client plaintiff was barred from suing an attorney because he lacked standing to assert his claim. The Sept. 24 decision reverses an earlier Colorado Court of Appeals ruling that found that the plaintiff had standing despite the strict privity rule, which bars complaints against attorney’s by non-clients except […]
Turtle Rock III vs. Fisher – The Effect of Fine Enforceability in Arizona HOAs (AZ)
Last year, the Arizona Court of Appeals decided the case of Turtle Rock III Homeowners Association v. Fisher, resulting in a landmark ruling with the potential to have a major impact on an Arizona association’s ability to assess and collect fines. In its ruling, the Court of Appeals held that an association must: Read […]
Diamonds are not forever if there is a unilateral mistake (FL)
Condominium and homeowners’ association officers and directors need to be careful when negotiating and entering into contracts with vendors such as construction contractors, interior decorators, architects etc. because if the association and the vendor are not on the same page (legally have a meeting of the minds), the contract can be nullified based upon what […]
HOA Homefront: Bills that made it in Sacramento – and some that didn’t (CA)
Readers: Various HOA bills passed the Legislature were approved by Gov. Jerry Brown and will become law in 2019. Future columns will provide more detailed discussions of these new laws] Sept. 30 was the last day for the governor to sign or veto bills passed by the Legislature in 2018. Many bills affecting homeowners associations […]
Condominium and Homeowners Association Budgets Must be Ratified (WA)
It’s community association budget season! Due to the recent implementation of WUCIOA (see my previous post about this here), all Washington State condominium and homeowners association budgets must be ratified by those associations’ owners in order to take effect. Read the article………………
SB 261 Signed! Changes to Individual and General Notice (CA)
Homeowners associations are often required to disclose information to their membership. There are two forms of disclosure: general notice or individual delivery. When homeowners associations are required to deliver documents by “individual delivery” or “individual notice,” Civil Code Section 4040 permits delivery by email, facsimile, or other electronic means (“electronic delivery”) only if the recipient […]
State supreme court will not hear case of unit owner fined for expressing opinions (IL)
The Supreme Court of Illinois will not consider the case of a unit owner fined for expressing opinions about his condo board. Michael Boucher successfully sued 111 East Chestnut Condominium Association and seven of its board members after they imposed a $500 fine against him for allegedly violating condo rules that prohibit “obnoxious or offensive […]
Wisconsin’s Small Condominium Law – A Potential Tool to Work Around Local Certified Survey Map Approval and Minimum Lot Size Requirements
Sometimes a municipality’s certified survey map approval authority, minimum lot size requirements, or building setback requirements can present an obstacle to an owner’s desire to sell part but not all of his or her property. Whether it is vacant land, a retail shopping center, or a mixed-use project, a condominium can facilitate the sale of […]
$7.5M Verdict Against Condo Association Should Have Been Prevented (FL)
The recent $7.5 million verdict for a St. Petersburg, Florida, condominium resident to compensate him for the injuries that he sustained in his community’s hot tub is a telling example of the potential ramifications that can result when any defects in the working condition of these amenities are not properly addressed. Read the article………………
Are HOA Owners “Grandfathered” In from New Rental Restrictions? (FL)
The Florida Condominium Act states that an amendment prohibiting unit owners from renting their units or altering the duration of the rental term or specifying or limiting the number of times unit owners are entitled to rent their units during a specified period applies only to unit owners who consent to the amendment and unit […]
TJPA: Ruling Limits Taxpayer Liability in Millennium Tower Legal Costs Fight (CA)
The Transbay Joint Powers Authority (TJPA) announced Monday that a court ruling last week may require the TJPA to pay in the future just a fraction of the legal costs sought by Mission Street Development (MSD), the developer of the sinking and tilting Millennium Tower. On September 20, 2018, San Francisco Superior Court Judge Curtis […]
AB 2912 Signed! Significant Changes to HOA Financial Review and Insurance Requirements (CA)
Earlier this year, the California Legislature proposed AB 2912 (Irwin) in an effort “to protect owners in a [HOA] from fraudulent activity by those entrusted with the management of the [HOA’s] finances.” To that end, AB 2912 significantly increases the financial review requirements of HOA boards of directors, limits the ability for automatic transfer of […]
Think Rules and Regulations Do Not Need to be Recorded? Think Again!! – Recent Legislative Changes Affecting Homeowners’ Associations (FL)
Many Floridians live within a community operated by an association of some kind, be it a community of single-family homes under the jurisdiction of a homeowner’s or property owner’s association, or a condominium building maintained by a condominium association. These owners should be well-aware that many aspects of life within these communities are subject to […]
Draper & Kramer misled buyer in Lincoln Park condo tower, lawsuit claims (IL)
A condo owner is suing Draper & Kramer, claiming the company’s property management arm and a condo board lured him to buy a Lincoln Park residence under false financial pretenses. Robert Cohen in July 2017 bought a unit in the Park West building, 444 West Fullerton Parkway, for $330,000. A subsidiary of Chicago-based Draper & […]