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 & […]
Court Ruling Complicates Condominium Member Lawsuits (FL)
A recent decision from an appellate court in Tallahassee will likely create significant hurdles for condominium unit owners who wish to sue their association and its directors for wrongdoing that affects the entire membership. In Iezzi v Edgewater, the First District Court of Appeal held that members of a not-for-profit condominium association must comply with […]
Condo owner alleges Westchase Condominium Association failed to warn of bolts in parking lot that caused fall (TX)
A condo owner in a Houston condominium property is seeking a minimum of $200,000 in damages after falling in the parking lot. Elida Herren filed a complaint on Aug. 29 in the Harris County District Court against Westchase Condominium Association and Creative Management Co. alleging negligence. Read the article………………
HOA Homefront: California now has Fair Housing regulations – and sexual harassment is illegal
The federal Housing and Urban Development Department (HUD) adopted regulations in September 2016 which for the first time prohibited sexual harassment within housing accommodations. “Housing accommodations” in this context includes homeowner associations. These regulations thus far have not received widespread attention, but in California this will change soon. Read the article………………
SB 1016 Signed! New Law Expands Rights to Use EV Charging Stations in HOAs (CA)
For the third time in past seven (7) years, the California Legislature has modified the laws governing the installation and use of Electric Vehicle (EV) charging stations within homeowners associations (“HOAs”). The first time was in 2011 when the Legislature enacted a new statute (now contained at Civil Code Section 4745) designed to nullify any […]
An Insider’s Perspective On Navigating The Florida DBPR Regulatory And Professional Boards
Many business and industries in Florida find it necessary to obtain some form of license in order to conduct business in this state. Florida’s Department of Business and Professional Regulation (“DBPR”) is the state agency in charge of licensing and regulating businesses and professionals within Florida. The Florida DBPR is a governmental agency under the […]
Millville By The Sea residents sue developers for management, amenity issues (DE)
The Millville By The Sea Property Owners Association, Inc. has filed a lawsuit with Delaware’s Court of Chancery against the developers for issues involving access to amenities and property management. The five board members of the POA filed the lawsuit on July 23 as a last resort, after about 18 months of attempts to settle […]
City: Ruling removes handcuffs in fining low-income neighborhood (IN)
A Southern Indiana city claimed victory in a nationally watched property-rights dispute Monday, saying an appellate court ruling lifts restrictions on its ability to inspect homes and issue fines in a low-income neighborhood. But the Pleasant Ridge Neighborhood Association, which alleges in a lawsuit that the city of Charlestown has conspired with a developer to […]
Magnuson-Moss Warranty Act And Arbitration Agreements (FL)
Consumer products often include some form of written warranty. Depending on the type of product, that written warranty may be governed by the requirements of the Magnuson-Moss Warranty Act (“Magnuson-Moss Act” or “Act”). The Magnuson-Moss Act was enacted to protect consumers and to prevent deception in certain types of written warranties by the entity providing […]
Due Process Debate Impacts Condo Management With New Legal Ruling (IL)
Condo associations in Chicago might soon have a harder time managing difficult condo owners. Based on an Illinois Appellate Court decision, owners accused of unruly behavior cannot be fined without first being given due process. Owners must have the opportunity to review any evidence of the alleged incident and cross-examine witnesses. Illinois condo associations that […]
New Statutes Bring Streamlined Methods to Preserve Association Governing Documents (FL)
As we discussed in our main 2018 Community Association Legislative Update post, this year’s statutory amendments included one of the biggest efforts to date to help community associations avoid the disaster of their governing documents being extinguished by the Marketable Record Title Act (MRTA). As a basic premise, if a community’s governing documents are subject […]
Court rules in favor of West Chester homeowner’s association sued by woman who slipped on fallen branches (PA)
The Superior Court of Pennsylvania affirmed a ruling relieving Indian King Residents Association (IKRA) of liability for a resident’s injuries. Plaintiff-appellant Ruthann Hackett injured herself in 2013 after slipping on fallen branches in a common area managed by IKRA. The court determined that appellant was a licensee on the land. In the ruling, Judge Jacqueline […]
Dobbs Ferry community sues state AG, aiming to pay less in taxes (NY)
The Landing at Dobbs Ferry, a residential complex, has filed an Article 78 lawsuit against Attorney General Barbara Underwood and her staff for allegedly abusing their power to stifle the community’s effort to change its status from a single-family-home community to condominiums. Read the article………………
Case to Watch: HUD Complaint Against Condo Association Ban on Religious Meetings (FL)
The community social room is typically one of the most popular amenities in condominium and homeowner association communities, and as such it must be governed with care in order to ensure all entitled residents an opportunity to enjoy it. Bans of any kind against the use of the community room, such as those for specific […]
South Carolina passes HOA reform law
Home owners associations in South Carolina are now under more scrutiny. Gov. Henry McMaster signed an HOA reform bill Wednesday, ending a three-year process for the bill’s supporters. Read the article………………
Highland Crossing Condo Association accuses former employee, residents of defamation (IL)
Highland Crossing alleges the defendants falsely accused several employees of embezzlement and the association of aiding and abetting the embezzlement during the spring of 2018. The defendants also allegedly accused one of the association’s employees of sexually harassing women at Highland Crossing Condominiums and that the association protected, aided and abetted those crimes. Read the […]
Should an Association Respond to Unofficial Publications?
With increasing frequency, homeowners associations are confronted with members publishing content related to their association and its operations, whether on Facebook, blog posts, or other various online forums. Sometimes these publications are critical of the association board of directors, misrepresent important information and facts, or fraudulently purport to be official association publications. The various potential […]
Judge grants preliminary injunction in lawsuit over noise complaints at Riptydz (SC)
A judge has granted a preliminary injunction in the lawsuit over noise complaints involving a Myrtle Beach bar and restaurant, and the condominium complex that neighbors it. Read the article………………
Another Victory for Condominium Associations with Regard to Rental Restrictions (IL)
Earlier this summer, Tressler LLP obtained dismissal of a source of income discrimination claim filed by an owner against a Chicago condominium association. On June 23, 2018, the City of Chicago Commission of Human Relations issued a lengthy written opinion holding that a condominium association’s restriction on leasing forbidding owners from renting their units via […]
How to Become Tax Exempt as an HOA (TX, AZ)
Being tax exempt could save your HOA money in annual tax return forms, but achieving exemption is trickier than it looks. Homeowners associations are usually already considered nonprofit corporations, but just being a nonprofit doesn’t automatically make an HOA tax exempt, or even eligible for tax exemption. Here, we’re going to answer some basic questions […]
Resolving Condominium Construction Claims in Maryland
Newly constructed and newly converted condominiums in Maryland often contain concealed or “latent” construction defects. Left undetected and unrepaired, latent defects stemming from the original construction of a condominium can cause extensive damage over time, requiring associations to assess their members for unanticipated repair costs that could have been avoided by making timely developer warranty […]
Appeals court upholds ruling favoring Florida master condo association (FL)
The U.S. Third District Court of Appeal affirmed Aug. 8 that a lower court ruling asserting that a master condo association does not have the same responsibilities as a sub-association. Appellant Benedetto Dimitri owns six condominium units in a development controlled by the defendant, the Commercial Center of Miami Master Association. Although the master association […]
Lakewood Eagle Ridge fraud lawsuit: Conspiracy must be spelled out, judge says (NJ)
Residents opposed to construction of homes on Lakewood’s Eagle Ridge Golf Club need to refile their consumer fraud lawsuit against the developer, a judge said Friday. More than 600 residents of The Fairways at Lake Ridge in May sued developer GDMS Holdings LLC and the company that built their age-restricted community decades ago, the Kokes […]
State Supreme Court asked to consider case of unit owner fined for expressing opinions (IL)
Fined for expressing opinions about his condo board, a unit owner successfully sued his condo association but now the Supreme Court of Illinois is being asked to reconsider the ruling. Michael Boucher sued 111 East Chestnut Condominium Association and seven of its board members after they imposed a $500 fine against him for allegedly violating condo […]
Courts Address Condo Laws, But Questions Remain (IL)
The myriad issues plaguing the Illinois Condominium Law arena have been subject to several recent opinions from two separate divisions within the 1st District Appellate Court. Unfortunately, the contrasting court rulings ultimately serve to confuse more than clarify. The string of new cases all focus on a particular section of the Illinois Condominium Property Act, […]
Alert: Has Your Association Adopted a Written Policy for Resolving Owner Complaints? (IL)
The Condominium and Common Interest Community Ombudsperson Act (“Ombudsperson Act”) is a recently enacted statute that applies to all condominium associations governed by the Condominium Property Act and all common interest community associations governed by the Common Interest Community Association Act. Section 35 of the Ombudsperson Act requires all associations *to adopt a written policy […]
Changing Your Restrictive Covenants (NC)
The North Carolina Court of Appeals recently rendered an opinion reiterating that all amendments to the restrictive covenants (“CCRs”) governing a planned community must be reasonable. As background, the existing law is that amendments to the CCRs must be reasonable in light of the developer’s original intent for the subdivision. This rule arose in the […]
South Carolina Court Affirms Lien Foreclosure
A recent class action lawsuit in the U.S. District Court of South Carolina served as another chapter in the national debate of the legality of lien foreclosure for community association assessments. In January 2018, seven South Carolina real estate owners in community associations, sued not only their seven associations but also six management companies and […]
Wicker Park condo building under legal siege amid claims of hazardous conditions (IL)
As a legal battle over alleged shoddy work at a Wicker Park condo building winds through court, an insurance company is working to make sure it is not liable for the builder and developer’s legal woes. At issue is the six-unit condo development at 1258 North Milwaukee Avenue, which was found to have severe building […]
Mountain Law: New Colorado law affects liability under snow and ice removal contracts
In the last state legislative session, the General Assembly passed, and Colorado Governor John Hickenlooper signed into law, Senate Bill 18-062 known as the “Snow Removal Service Liability Act.” The act is formally expected to go into effect in August 2018. The act is based on model legislation drafted by an industry trade group known […]
The Other Two Landmark Cases Every Board Needs to Know (NY)
In a recent post, I discussed the three landmark legal decisions that were most influential in shaping the scope and limitations of co-op and condo boards’ powers. Today I add the final two that comprise the Big Five. Read the article………………
Battle of the Brickell High-Rises: Panorama Construction Allegedly Damaged Other Towers (FL)
Construction of Panorama Tower and two other towers in Miami’s Brickell District left some common areas and private balconies unusable at nearby condominiums, a lawsuit claims. The work on Panorama, The Bond and 1010 Brickell damaged the nearby two-tower 1060 Brickell Ave. condo tower’s roof, facade, balconies, cooling tower, pool deck trellis and residents’ personal […]