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 […]
Court: Association Declaration’s Reference to Alterations Encompasses Material Alterations (FL)
The approval of board-proposed alterations to a condominium association’s common elements sometimes requires adherence to the general process prescribed by Florida law, which calls for an affirmative vote from at least 75 percent of the total voting interests in the association. Read the article………………
Couple alleges Treasure Island condominium association violated contract (FL)
A couple is suing a Treasure Island condominium owner, alleging breach of contract and statutory duty. Joseph J. Conoslo and Joan M. Consolo filed a complaint July 27 in Pinellas County Circuit Court against Mansions by the Sea Association Inc. alleging violation of the Florida Condominium Act and all other governing documents. Read the […]
Ruling Changes How Boards Keep Minutes and Provide Evidence for Violations (IL)
“Business as usual” for Illinois condo boards has now changed. A very big decision by the Illinois appellate court (First District) makes number of Illinois condominium board standard practices illegal. Boucher v. 111 East Chestnut Condominium Association[1] held that a board, in levying fines against a belligerent unit owner who verbally berated and insulted management […]
Judge’s ruling allows shoreline project to go on (HI)
A 2nd Circuit judge denied a motion by shoreline protection groups to immediately halt the Hololani condominium association’s plans to drive vertical sheets into the ground, beginning as early as today, in a shoreline protection project in Kahana. Read the article………………
Congress Extends Flood Insurance Program Through November
The U.S. Senate has approved a short-term extension of the National Flood Insurance Program (NFIP) through November 30th. With the U.S. House of Representatives having already cleared the legislation, the measure now goes to President Trump for his signature into law. Read the article………………
MI Court rules that MCL 559.208 does not protect a Condominium Association’s lien priority after taking a deed in lieu of foreclosure
In Stonehenge Condominium Association v Bank of New York Mellon Trust Company, NA, unpublished opinion of the Court of Appeals, issued July 24, 2018 (Docket No. 339106), the Michigan Court of Appeals held that a condominium association’s lien priority over a second mortgage was extinguished when the association received a deed to the condominium unit […]
Colo. District Court vacates umpire’s $3.07M hail award in appraisal fairness case
A Colorado federal judge this month threw out a more than $3.07 million award to a homeowner’s association after concluding its appraiser and umpire acted improperly and “engaged in conduct that prejudiced the appraisal process and distorted the final award” against American Family. The July 23 Colorado District Court verdict in Copper Oaks v. American […]
What is a Contest of Lien, and How Does My Association Respond To It? (FL)
You’re the President of a condominium association or an HOA. You’ve had a problem owner for years—someone who doesn’t pay his assessments. Or when he does, payment is late and he incurs penalties and interest, and then later fights those penalties and interest. The owner is basically a drain on the association’s budget and time, […]
Recap of new HOA laws and effective dates (FL)
Q: Thank you for the condominium update a few weeks ago. We understand there are new laws impacting our homeowners’ association (HOA), as well. Would you please recap the changes we need to know about? Read the Q&A……………
Failure to Hold Formal Homeowner’s Association Board Votes Dooms Two Charlotte HOAs (NC)
There are times in the practice of homeowners’ association law when courts make rulings with which we as attorneys disagree but where an underlying principle or best practice is affirmed. A prime example is the N.C. Court of Appeals’ opinion of November 1, 2016 in the case of Willowmere Community Association Inc. and Nottingham Owner’s […]
Federal Court Ruling Vacates Hail Claim Appraisal Award, Highlights Appraiser Abuses (CO)
A recent decision by a Colorado federal appeals court could have significant impact on hail claims and appraisals across the country. Copper Oaks Master Home Owners Association v. American Family Mutual Insurance Co. involves a claim of hail damage that led to a dispute regarding damages. Read the article………………
CAI Blog Series: U.S. Constitution, Tenth Amendment
The First and Second Amendments to the U.S. Constitution get a lot of attention. Freedom of religion, speech, and the press, as well as the right to bear arms are no doubt important. However, it got me thinking: Why don’t we talk about the other amendments as much? Wait, what are the other amendments? Sure, […]
Federal Laws Do Apply to Homeowner Associations
This brief summary is intended to acquaint you with the major federal laws that affect homeowner associations. For authoritative information on these laws, you should consult your state statutes and regulations, or your Association attorney. Read the article………………
Parity Act Options Open Despite Removal from Defense Authorization Act Conference Report
ARRL Hudson Division Director and ad hoc Legislative Advocacy Committee Chair Mike Lisenco, N2YBB, says removal of Amateur Radio Parity Act (HR 555) language from the National Defense Authorization Act (NDAA) Conference Report this week was unfortunate, but does not kill the initiative. The Parity Act would ask the FCC to grant radio amateurs living […]
Fair Housing Center claims Palm Beach condo association, property management agency discriminated against families
A fair housing advocacy group is suing a Palm Beach condominium association and property management agency, claiming their policies about how many people can live in their units are discriminatory and violate the Fair Housing Act. Fair Housing Center of the Greater Palm Beaches, a nonprofit based in Lantana that claims to work to eliminate […]
Judge Calls Seward Park Co-op’s Legal Fees “Highway Robbery” (NY)
A Manhattan judge has slashed law firm Greenberg Traurig’s fee request by 62 percent – from $464,164 to $175,000 – in a lawsuit brought by Seward Park Cooperative shareholders against the co-op board in a dispute over the co-op’s parking operation. Read the article………………
Carbon Monoxide Killed 2 People In A Condo. An Insurance Policy Exclusion Barred Coverage Of The Resulting Lawsuit (FL)
A federal district court in Florida has ruled that a pollution exclusion in an insurance policy issued to a homeowner’s association precluded coverage of a lawsuit seeking damages for the death of two people in a condo unit caused by carbon monoxide poisoning. Read the article………………
Judge: Illinois condo law not meant to control ‘reasonable’ fees for electronic condo sale documents
A Chicago federal judge has tossed a putative class action lawsuit by a trio of onetime suburban condominium owners, who alleged they paid excessive fees for state-required documents when they sold their units, saying Illinois condo laws are not meant to control fees. The July 16 ruling was laid down by U.S. District Judge Manish […]
Nevada Courts Provide Additional Guidance on HOA Super Priority Lien Law for Lenders
As we’ve discussed on this blog before, Nevada’s courts remain a battleground for lenders seeking to establish that their security interests were not eliminated by homeowners’ association foreclosure sales under NRS 116. In recent weeks, the Ninth Circuit and Supreme Court of Nevada have issued new opinions providing more guidance to ultimately resolve those issues. […]
No Expert Needed in Elevator Malfunction Case, Supreme Court Says (NJ)
The New Jersey Supreme Court on Tuesday ruled that a woman injured when an elevator door repeatedly opened and closed on her does not have to present expert testimony to prove negligence. Justice Barry Albin, writing for a unanimous court, said the res ipsa loquitor doctrine, meaning “the thing speaks for itself,” applies in a […]
Community Associations Seek Guidance and Clarification on HUD’s Third-Party Harassment Rule
Earlier this month, CAI sent a white paper to the U.S. Department of Housing and Urban Development (HUD) seeking guidance and clarification for community association board members related to the Sept. 2016 rule titled, “Quid Pro Quo and Hostile Environment Harassment and Liability for Discriminatory Housing Practices Under the Fair Housing Act.” When it was […]
Kushner Companies hit with $10M lawsuit over Williamsburg condo conversion (NY)
The Cuomo administration has directed its tenant protection unit to investigate the allegations of tenant harassment at Austin Nichols House. “Governor Cuomo has zero tolerance for tenant abuse of any kind and we will aggressively take on landlords who try to intimidate people out of their homes,” said RuthAnne Visnauskas, the Commissioner of the New […]
Court denies condos’ request to throw out PWS Environmental lawsuit (FL)
A Florida federal court denied a request by a group of condominium associations to dismiss an $800,000 lawsuit filed by a pressure washing company. Judge John E. Steele of the U.S. District Court for the Middle District of Florida ruled the condo associations did not produce enough evidence that PWS Environmental Inc. did not state […]
New Jersey’s Highest Court Scrutinizes Statutes of Limitation and the Discovery Rule in Construction Defect Cases
The typical construction defect case presents an up-front analytical challenge: the defense attorney is presented with boxes of project materials, perhaps an extensive case history and prior discovery, and likely an unhappy (but these days, resigned) client. So you start with the basics: a review of the complaint to assess the allegations; a review of […]
9th Cir. Holds Judicial Foreclosures Are Debt Collection Under FDCPA
A panel of the U.S. Court of Appeals for the Ninth Circuit recently held that a law firm’s effort to collect homeowner association (“HOA”) assessments through judicial foreclosure constitutes debt collection under the federal Fair Debt Collection Practices Act. In so ruling, for purposes of whether activity constitutes debt collection under the FDCPA, the Court […]
Can a Michigan Condominium Ban Solar Panels
Approximately 25 states have adopted some form of a solar access statute that makes it illegal for condominium bylaws to contain a provision that completely bans the installation of solar panels. There are approximately 15 different states that have adopted solar easement statutes that uphold the validity of contractual easements for solar access. A full […]
Does WUCIOA Eliminate Restrictions on Assessments in the CC&Rs of an Existing HOA? (WA)
We believe that section 326 of the Washington Uniform Common Interest Ownership Act (“WUCIOA”) eliminates any restriction on assessment increases within the CC&Rs of an existing HOA. Our legal argument is strongest in cases of a special assessment. However, the argument should also prove to be successful for dues increases contained within the regular budget. […]
A Fight Over Flooring at a Broward Tower Clarifies Condo Association Rights (FL)
When the board of directors at Fort Lauderdale’s Regency Tower Association changed the flooring in of the condominium lobby from Carrara marble to ceramic tile in 2016, they set in motion a court battle with unit owner Ronald Lenzi. He objected, claiming unit owners were required to vote to approve the renovation work. It all […]
Ruling against Indianapolis’ condo nuisance claim upheld (IN)
Summary judgment entered in favor of an east side Indianapolis condominium complex was affirmed when the Indiana Court of Appeals ruled that damages sought against the complex by the city for being a “nuisance” were inappropriate. Towne & Terrace is a residential complex near the intersection of East 42nd Street and Post Road in Indianapolis. […]
Judge Tells Madonna to Lay Off Her Co-op Board (NY)
Co-op boards wield significant power, even over pop superstars. Just ask Madonna. Manhattan Supreme Court Justice Gerald Lebovits says the Material Girl was “merely harassing” fellow shareholders of her Upper West Side co-op for continuing to seek records from the board after she lost a legal bid challenging a rule that required her to be […]
Virtual HOA Meetings?: Virginia’s General Assembly Makes It Easier For Property Owners’ Associations To Hold Entirely Electronic Meetings
Association (both property owners’ association and condominium association) meetings are typically held at the community clubhouse or other local building. However, with the increasing availability and utility of technology, virtual meetings are becoming more commonplace. Virginia’s General Assembly (Virginia’s state legislature) recently passed legislation, House Bill 1205 (the “Amendment”), amending the Virginia Nonstock Corporation Act, […]
Roofing contractor alleged to have caused damage to Bethalto condo (WI)
A condominium association is alleged to have hired an unlicensed contractor to repair a roof at a Bethalto property. Angela G. Klein, as executor of the estate of Mary K. Webb, deceased filed a complaint on June 19 in the Madison County Circuit Court against Parkside Estates Condominium Association and Steve Mitchell alleging negligence. Read […]
Appeals court sends homeowners association’s lawsuit over flood damage back to Harris County (TX)
A homeowners association’s lawsuit to recover the cost of flood damage to a reserve tract in a Harris County community is on its way back to a local district court after a Texas appeals court ruled, in part, that the lower court had been wrong to find for defendants in the case. Read the article………………
How does a Community Adopt WUCIOA? (WA)
For currently existing condos, co-ops, and homeowner associations, there is a process to adopt the Washington Uniform Common Interest Ownership Act (“WUCIOA”). First the owners must vote to amend the declaration and choose to be governed by WUCIOA. Second, the board must vote to amend the declaration to remove provisions which directly conflict with WUCIOA. […]
Is a First Mortgagee’s “Safe Harbor” Obligations Expanded? (FL)
Generally speaking, as a result of sections 720.3085 and 718.116, Florida Statutes, lenders who acquire property as a result of their own foreclosure of their first mortgage against their borrower only owe the association the lesser of 12 months back assessments or 1% of the initial mortgage, whichever is less. This is referred to as […]
New laws applicable to condominiums effective July 1 (FL)
Question: We understand there are new laws impacting condominium associations. Would you please recap the changes we need to know about? Read the Q&A……………..
Colorado’s Snow Removal Service Liability Limitation Act Restricts Enforceability of Indemnity Provisions
On May 30, 2018, Colorado Governor John Hickenlooper signed into law Senate Bill 18-062, referred to as the “Snow Removal Service Liability Limitation Act” (the Act), codified at C.R.S. § 13-21-129. The Act is based on model legislation drafted by the Accredited Snow Contractors Association (ASCA), which saw similar legislation pass in Illinois, with bills […]
The Wild West, Tamed a Bit (SC)
Although far from comprehensive, the South Carolina legislature has successfully taken its first steps to regulate homeowners’ associations. The South Carolina Homeowners Association Act (“Act”) became official on May 17, 2018 when the governor signed it into law. Up to this point, South Carolina has never had a comprehensive law governing homeowners’ associations. Until now, […]
Appeals panel: ‘Obnoxious’ condo owner has right to free speech, to view evidence when accused by association (IL)
While condo associations are not extensions of the government, they still must respect the First Amendment rights of condo owners, and must disclose evidence to those accused of violating association rules before assessing fines, a divided state appeals panel has ruled. However, a dissenting justice warned the ruling had the potential to bog the courts […]
Your Guide to the Most Impactful 2018 Legislative Amendments to the Florida Statutes
Each year the Florida Legislature proposes and votes on bills for amending the Florida Statutes. Bills that pass both the Florida House and Senate go before the Governor who decides which bills become law. In the 2018 legislative session, approximately 150 fewer bills were proposed, and 40 fewer bills ultimately passed, than in 2017. Nevertheless, […]
Case Law Update: Golf Course Restrictive Covenant Upheld (FL)
Owners of unprofitable golf courses are increasingly wanting to redevelop their golf courses as residential property, especially in areas where land for residential development is at a premium. Some golf courses are subject to recorded covenants that require the property to be used for recreational purposes and therefore prohibit such redevelopment. In Victorville West Limited […]
NYS Assembly passes bill to end future condo tax breaks
The New York State Assembly has passed a bill that would end tax breaks for condominiums starting in 2021. The bill moves to the Senate in the last days of session. Gov. Andrew Cuomo’s staff said he would review the issue. Read the article……………..
HOAs & Condos: Follow Your Bylaws & Proper Parliamentary Procedure (PART 2)
A blog I wrote in 2016 (HOA’s: Follow Your Bylaws & Proper Parliamentary Procedure) examined two opinions from the NC Court of Appeals about HOA/condo board decisions. The short takeaway from those cases for associations? FOLLOW THE RULES. A new case from the Court of Appeals issued today (June 19, 2018) again examines the requirements […]
Preserving the Attorney-Client Privilege
As a member of a community association board, it is important for you to preserve the association’s attorney-client privilege. The attorney-client privilege generally prevents the unwanted disclosure of communications between an attorney and their client. For example, if an attorney provides their client an opinion about the strengths and weaknesses of a potential case, third […]
Appellate court sides with condo owner fined for complaining about building management (IL)
His behavior admittedly aggressive, some would say obnoxious and rude, but a state appellate court says a condominium association in Chicago was wrong to fine a unit owner for expressing his opinions about how the association is managed. Michael Boucher sued 111 East Chestnut Association and seven of its board members after they imposed a […]
Pre-CCIOA Communities Right to Veto Budget Bill Signed Into Law by the Governor (CO)
In prior blog posts we discussed House Bill 18-1342, which proposed that all pre-Colorado Common Interest Ownership Act (“CCIOA”) communities, i.e. communities formed prior to July 1, 1992, comply with the budget veto process found in Section 303(4)(a) of CCIOA. Section 303(4)(a) was, previously, only applicable to post-CCIOA communities. HB 18-1342 has been signed into […]