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 […]
U.S. Senators Press HUD to Prioritize FHA Condominium Approvals
Senators Tim Scott (R-SC) and Robert Menendez (D-NJ) were joined by 52 U.S. senators in calling for HUD Secretary Ben Carson to comply with updated Federal Housing Administration’s (FHA) condominium rules, according to Community Associations Institute (CAI), the leading authority in community association governance, management, and education. Read the article………………..
Judge rules in Hermitage condo cases (VT)
Windham County Superior Court Judge John Treadwell ruled in favor of three would-be Garmisch Court condominium owners following a hearing on Tuesday. According to court documents, the defendants, the Hermitage Inn Real Estate Holding Company and James R. Barnes, never responded to the three lawsuits, and didn’t appear at the hearing. Treadwell acknowledged that Barnes […]
Legislative Fix Needed in Condo Association Property Tax Assessment Appeals Ruling (FL)
Condominium associations regularly represent all of their unit owners as a consolidated class of litigants in cases challenging their local county ad valorem property tax appraisal assessments. However, a vital segment of the representation that associations provide their owners in such actions may soon be coming to an end as a result of a recent […]
New Maryland Law Facilitates Ability Of Condos To Suspend Common Element Privileges As A Means Of Collecting Delinquent Condominium Assessments
The Maryland legislature recently made it easier for condominium associations to amend their declarations to authorize the suspension of common area parking and recreational facilities of unit owners whose delinquent condominium assessments are more than 60 days in arrears. Under prior law, a minimum of 80% or greater was required for such an amendment. The […]
New Maryland Law Prevents Developers From Retaining Disproportionate HOA Voting Control
A new law, effective October 1, 2018, will prevent developers from retaining disproportionate voting control after selling a majority of lots within a homeowner association (“HOA”) subdivision. This law ends the practice where some HOA developers created governing documents that gave them multiple vote for each unsold, Read the article………………..
Associations May Be Able to Recover Six Months of Unpaid Assessments From Foreclosure Purchasers Without Filing Suit Against the Former Owner (IL)
On June 4, 2018, the Appellate Court issued its opinion in Sylva, LLC v. Baldwin Court Condominium Association, Inc. (“Sylva”) holding that the “initiation of an action” requirement in section 9(g)(4) of the Illinois Condominium Property Act (“ICPA”) may be satisfied even when an association does not file suit against the former owner. This expansion […]
Neighbor Winning $784,208 In Damages Against Another Neighbor Based On CC&R/Nuisance/Prospective Economic Advantage Damages Properly Awarded CC&R Fees Of $363,571.56 (CA)
We have noticed an increasing trend among appellate courts to affirm fee awards or fee denials where the appealing litigant failed to provide a reporter’s transcript, especially where abuse of discretion or non-legal issues are involved. The Second District, Division 5 has been especially vigilant on this issue, and we have seen an uptick in […]
Legislative Update Issues to Watch in 2018…and Beyond (NY)
Whether it’s pending Airbnb legislation in various markets, proposed legislation on New York State co-op applications, or homeowners winning the ability to sue condominium developers for faulty practices, co-ops, condos and HOAs are often at the mercy of legislators and the legal system. As constituents, they have a voice, but the question remains: are the […]
Tenant Deming Place sues association board for breach of fiduciary duty (IL)
A tenant is suing the board of managers of the 1201-1025 Madison Condominium Association for alleged breach of duty. Deming Place LLC filed a complaint on April 23 in Cook County Circuit Court, alleging it suffered damages because the defendants burdened it with impossible conditions in retaliation for its requests to examine records and a […]
Attention Virginia Community Associations: DPOR CIC Board to Adopt New Notices for Condo Resale Certificates and POA Disclosure Packages
During its 2018 session, the Virginia General Assembly passed new legislation amending the disclosure requirements under both the Virginia Condominium Act and the Virginia Property Owners’ Association Act. The new legislation has been signed by the Governor and will take effect July 1, 2018. Among other changes, the new legislation requires the Common Interest Community […]
Policyholder accuses State Farm and Firstline insurance companies of not covering losses to Brookhaven property (PA)
A policyholder whose apartment suffered physical loss and damages claims that a pair of major insurance companies have failed and refused to provide her the coverage that was due her in this situation, under those same policies. Miesja Cubito of Brookhaven filed suit in the Philadelphia County Court of Common Pleas on May 22 versus […]
Condo association allowed to challenge PTSD claims in elevator flap with wife of bankruptcy lawyer Geraci: Appeals judges (IL)
A federal appeals court said a lower court judge was correct in ruling against the wife of prominent Chicago area bankruptcy lawyer Peter Francis Geraci in her dispute with her condominium building over elevator access, saying a judge and jury didn’t break any rules in allowing the condo association to contest her claims to being […]
Owners at 4-year-old condo complex sue Kolter Group, allege construction defects (FL)
The owners association at a four-year-old condominium complex in St. Petersburg sued the West Palm Beach-based developer Kolter Group over alleged construction defects. The condo owners sued Kolter and affiliated companies in Pinellas County Circuit Court, alleging they committed dozens of building-code violations in the construction of the 95-unit Water Club Snell Isle Condominium. Read […]
Washington Uniform Common Interest Ownership Act (WUCIOA) Effective July 1
The Washington Uniform Common Interest Ownership Act (WUCIOA) takes effect on July 1. This new law applies to all condominium and homeowners associations created in Washington on or after that date. The following section of WUCIOA applies to condominium and homeowners associations created in Washington before that date as well: Read the article…………….
Centennial owners in Aspen take case to appeals court (CO)
The Centennial Owners Association introduced an opening brief this week with the Colorado Court of Appeals, arguing the lower court’s decision in October “would gut affordable housing in Colorado — ending a public policy legacy spanning nearly 85 years.” The appeal had been expected, In November, the owners filed court papers saying they would contest […]
Intervenors join state in appealing lake lawsuit ruling (MN)
Both the city and township are following the Department of Natural Resources’ lead and filing an appeal in the lake level lawsuit. The firm representing the city, Greene Espel PLLP, filed the appeal May 14; the township gave its attorney the go-ahead to file May 21. The office of the attorney general filed May 11 […]
New 2018 Legislation that affects condos, co-ops and HOAs (FL)
This year a 72-page bill (House Bill 841) became law and will become effective July 1, 2018. HB 841 is a mixed bag mostly for condos but a few items also pertain to cooperatives and HOAs. Last month we discussed in detail the provisions in the Bill affecting electrical vehicles, owners, and the rights the […]
Legislative Review Wrap-Up (FL)
This week we conclude our annual review of 2018 legislation affecting Florida community associations, with a review of the amendments to Chapter 712 of the Florida Statutes, the Marketable Record Title Act, or MRTA, which become effective on October 1, 2018. MRTA is primarily intended to facilitate real estate transactions, by eliminating “stale claims” against […]
Community Manager Licensing – Sunset in Colorado
If you want to earn a living as a community association manager in these eight states – Alaska, Colorado, Connecticut, Florida, Georgia, Illinois, Nevada, and Virginia – you must have a state-issued license. In 1987, Florida created the first state licensure program for community association managers and other states followed sporadically over the past few […]
Texas Supreme Court sides with short-term renters
The Texas Supreme Court has sided with short-term renters, delivering a win to Texas homeowners who hope to take advantage of websites like AirBnB and HomeAway, and likely bolstering a separate, ongoing case against the City of Austin’s short-term rental ordinance. Kenneth Tarr bought a home near San Antonio in 2012, but when his employer […]
Party goer alleges condo association’s negligence led to deck injuries (FL)
An Osceola County woman is suing an Orlando condo association, alleging negligence in failing to to take sufficient measures to prevent injuries on a deck. Jessenia Santana filed a complaint May 7 in Orange County Circuit Court against Winter Park Woods Condominium Association, Inc. alleging failure to maintain and exercise reasonable care in the upkeep […]
Liam Daly and Brandee Daly v. Gulick Group, Inc., CL-2018-214 Demurrer; Letter Opinion (VA)
A real estate purchaser may unilaterally rescind a purchase contract within three days of receiving a property owners’ association disclosure packet under Virginia Code § 55-509.4(A), (C). The relevant issue that the instant Demurrer raises is whether a real estate purchaser may unilaterally rescind a purchase contract more than three days after receiving an incomplete […]
Legislative Updates for D.C.
As we noted last year, the Council for the District of Columbia revised the DC Condominium Act substantially in a few important ways. This legislative season, the Council has considered three additional bills that, if passed, will impact condominiums and other common ownership communities within the District. Read the article……………….
Legislative Updates for Maryland
The 2018 legislative session for the State of Maryland was very active. The General Assembly considered many bills that impact community associations. Below, is a recap of each law that we believe may impact your community. And, I have also noted a few proposed laws that did not pass but which may be considered in […]