Two condominiums adjacent to Franklin Place, a mid-block alley in lower Manhattan, asked that Franklin Place be designated as a fire apparatus access road in order to prohibit parking next to condominiums. Read the article………………………………….
Florida Legislature to Pass Law Prohibiting Associations From Charging Estoppel Fees
Of all the subjects I never would have thought I would be writing to you about, it is this: the Florida Legislature is dangerously close to passing legislation that prohibits a Florida community association from charging a fee for the preparation and delivery of an estoppel certificate!!! Read the article…………………………….
New Deadline for Parking Structure Inspections (NY)
The roll-out of the city’s garage inspection program has just been accelerated. The city has posted a new deadline that requires all buildings with garages to complete an initial safety inspection of the structure by b. Read the article………………………………..
Client Alert: Florida Senator Proposes Creation of State Database for Homeowners Association Information
On December 13, 2023, Florida State Senator Rodriguez filed Senate Bill 942 (2024), which, if adopted, would require the Department of Business and Professional Regulation (DBPR) to establish a searchable database of certain homeowners associations’ information no later than July 1, 2025. Read the article………………………….
Fannie Mae and Freddie Mac to add transparency to condo lending blacklists
The article on the front page of the Miami Herald on Dec. 17, revealed some welcome news for the thousands of condominium communities that have been placed on confidential blacklists by the government-sponsored Fannie Mae and Freddie Mac mortgage buyers and backers behind more than 70 percent of all U.S. residential loans. Read the article……………………………….
Persimmon Hill – Huge Impact on South Carolina Construction and Insurance Industries
The Persimmon Hill decision is one of the most impactful South Carolina insurance coverage decisions in years. The 58-page opinion authored by Justice Konduros addresses myriad issues including insuring agreements, obligations owed to insureds and additional insureds, bad faith, and an alternative to the “time on risk” allocation formula. Read the article………………………..
How a 1970s clerical error paved the way for Mattamy Homes to build on shuttered golf course (FL)
Circuit Court Judge G. Joseph Curley recently ruled that Mattamy Homes was not bound by an agreement signed in the 1970s that restricted the use of the golf course to recreational activity because the agreement was never formally recorded with the Palm Beach County Clerk’s Office. Read the article…………………………….
A 2022 law required HOAs to assess maintenance needs. Now it’s time to pay up (MD)
Maryland community associations are finding themselves squeezed by a 2022 law intended to ensure maintenance of condominiums and similar housing, but which is resulting in thousands of dollars in surprise fees and assessments that are leaving some residents struggling to make ends meet. Read the article………………………….
Corporate Transparency Act – Action Required in 2024-2025 (FL)
We are writing to inform you that the Corporate Transparency Act (“CTA”) will become effective on January 1, 2024, for all new entities (as defined below) filed on or after the beginning of next year and will become effective on January 1, 2025, for all currently existing entities, (with entities being defined as any entity […]
South Carolina Court Alters Time-on-Risk Approach, Holds Insurer Responsible for Unresponsive Insured’s Defense
The South Carolina Court of Appeals recently affirmed a $27.3 million judgment against an insurer. It held that the insurer acted in bad faith in failing to defend its insured and the general contractor in a construction defect suit involving a Berkeley County townhome community. Read the article…………………………….
Central Florida lawmakers work to reduce fines that can be issued by HOAs (FL)
Two lawmakers from Central Florida are introducing legislation to limit the amount you could be fined by homeowner associations. Watch the news report…………………………..
Fannie Mae and Freddie Mac: A New Era of Transparency for Homeowners
In a significant shift towards transparency, Fannie Mae, the Federal National Mortgage Association, has recently announced that it will make its once-secret “Condo Unavailable Projects and Phases Report” accessible to the public. The decision to make this report publicly available reflects a broader industry trend towards transparency, acknowledging the pivotal role that information plays in […]
Alert to Business Owners: New Law Requires Disclosure of Information
In 2021, Congress passed the Corporate Transparency Act, 31 U.S.C. Section 5336 (the “Act”) which requires the reporting and collection of beneficial ownership information for applicable entities. Beneficial ownership information refers to identifying information about the individuals who directly or indirectly own or control a company. Read the article………………………………
Corporate Transparency Act 2022: Reporting Required for HOAs (GA)
The Corporate Transparency Act (the “CTA”) that was enacted by Congress in 2021 will go into effect at the start of 2024. While the Corporate Transparency Act was implemented to combat the use of shell corporations, LLC’s, partnerships, and other entities to facilitate terrorist funding, corruption, tax fraud, and other illicit activities, it will also […]
2023 in Review (Florida)
The 2023 Florida legislative session addressed a wide variety of issues impacting community associations. The longest bill impacting community associations became 2023-203, Laws of Florida. The amended statutes changed, clarified, or corrected provisions created by the laws approved in 2022, Senate Bill 4-D, which became Chapter 2022-269, Laws of Florida, commonly referred to as “SB-4D.” […]
City Releases FInal Rules on How Co-ops and Condos Can Comply With Local Law 97 (NY)
New York City has released its long-awaited final rules on how buildings owners, including co-op and condo boards, can cut their buildings emissions enough to comply with Local Law 97, which goes into effect less than two weeks from today, on Jan. 1, 2024 Read the article………………………………
Major Ruling: Illinois Supreme Court Provides Clarity and Changes Precedent on CGL Coverage for Defective Work
The Illinois Supreme Court recently upended decades of Illinois caselaw regarding coverage under commercial general liability (CGL) policies, aligning Illinois with most states on the issue. On November 30, 2023, the Illinois Supreme Court unanimously held in Acuity v. M/I Homes of Chicago, LLC that the “your work” exception under CGL policies did not prevent […]
Condo group sues State Farm for water damage 30 years too late: Court (WA)
A Tacoma, Washington, condominium association that sued a State Farm Insurance Co. unit for water damage filed its suit nearly 30 years too late, a federal appeals court ruled Monday, affirming a lower court ruling. Read the article………………………………..
Appellate court rules for Gran Paradiso residents in North Port irrigation fee lawsuit (FL)
A state appellate court sided with Gran Paradiso Property Owners in their suit against the West Villages Improvement District over a 100-year contract for irrigation water that the residents say is both too long and too high. Read the article…………………………….
Client Alert – Corporate Transparency Act
Millions of entities across the United States must get ready to comply with the Corporate Transparency Act (CTA), a new federal law that goes into effect on January 1, 2024. Subject to a few limited exceptions, the CTA requires all new and currently existing entities to file reports with the federal government, identifying information about […]
Illinois court asked: Are defects covered by general liability insurance?
The ruling, passed down from the state’s supreme court, could affect which issues contractors choose to litigate with insurers across the country. Read the article…………………..
Florida And Massachusetts Law Firms Unite To Tackle Fannie Mae’s Secret Condo Blacklist
The firms say they are committed to helping condominium and cooperative associations currently on the blacklist, or at risk of being added, navigate this complex issue. Fannie Mae, a government-sponsored enterprise, uses the blacklist to designate properties ineligible for conventional financing, affecting thousands of residents and potential buyers. Read the article………………………….. Link to web site […]
Dozens of swanky Florida country clubs and HOA’s are being sued for $29 million in alleged PPP fraud. One is in Key Biscayne (FL)
A lawsuit unsealed in federal court last month alleges dozens of South Florida’s most luxurious country clubs and homeowners associations – including one in Key Biscayne – improperly got as much as $29 million in federal pandemic or “PPP” loans and should be ordered to pay up to triple damages. Read the article………………………….
Compliance with the Federal Corporate Transparency Act (FL)
Complying with the Federal Corporate Transparency Act may surprise many Florida Corporations, including many Condominium and Homeowner Associations. In 2021, as part of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021, the Federal Government passed a Federal law called the Corporate Transparency Act (the “CTA”). Read the article………………………………….
New Law Affects Contractor Retainage for Co-ops & Condos: Add Another Item to Boards’ List of Things to Worry About (NY)
As if New York co-op and condo communities weren’t under enough pressure from sluggish sales, high interest rates, and the ever-increasing volume of work required to comply with environmental requirements like Local Law 97, Governor Kathy Hochul signed a bill into law on November 17 amending Sections 756-a and 756-c of the New York State […]
Court of Appeals Decides that HOA Is Not Required to Enforce Parking Restrictions (WA)
The Washington Court of Appeals has issued an unpublished opinion concerning a property owner’s claim that his homeowners association is legally obligated to enforce parking restrictions. Read the article……………………………
S. Carolina Insurer’s Bad Faith Causes $27M Loss from Policies with $2.5M Limit
A panel of the South Carolina Court of Appeals on Wednesday affirmed a trial court order requiring Pennsylvania National Mutual Casualty Insurance Co. to pay an award totaling $27,339,535.46 to developer Portrait Homes and the Persimmon Hill Homeowner’ Association, even though the policies it sold Castillo’s company provided only $2.5 million in coverage. Read the […]
Historic bill to repudiate racially restricted deed covenants passes (PA)
The Pennsylvania Senate made history Wednesday by unanimously passing state Rep. Justin Fleming’s legislation (H.B. 1289) that would help rectify the legacy of biased housing practices by making it easier for property owners to repudiate discriminatory deed covenants. Read the article…………………………………..
When North Carolina HOAs want to block or pass legislation, they often get their way
North Carolina Sen. Kandie Smith was troubled by news reports of people who lost their homes over small HOA debts. So in March, the Pitt County Democrat introduced a bill to prohibit homeowners associations from foreclosing on homeowners. Read the article……………………………..
Deceit, rigged bids and extortion: How HOA foreclosures can open the door to predators (NC)
A federal lawsuit focused on an intricate bid-rigging and extortion scheme has helped illuminate another pitfall of HOA foreclosures: They can leave homeowners vulnerable to profiteers. Read the article……………………………
Effective Date of New Reserve Law Questioned (FL)
Q: Our condominium association just held a vote to less than fully fund reserves for the 2024 budget. It passed by a majority of the quorum, but not a majority of the entire voting interests. Read the Q&A…………………………….
Bipartisan lawmakers seek to cut condo insurance costs through valuation pilot program (FL)
In a bipartisan move, Florida lawmakers have introduced legislation that seeks to establish a Condominium Windstorm Pilot Program, which would provide a new insurance option for condominium associations. Read the article……………………………
Money & the Law: Fight over parking spot ensnares courts (CO)
It has long been my belief that civil litigation has replaced horse racing as the sport of kings, and may be more expensive. A case decided in October by the Colorado Court of Appeals added further evidence in support of my belief. The lawsuit at issue here involved a parking space in an open-air parking […]
Santa Cruz County homeowners face $4.7 million in fines for blocking public access to beach walkway (CA)
Citing violations as far back as 1982, the commission will weigh a staff recommendation to fine the Rio Del Mar Beach Island Homeowners Association – and its estimated 27-home membership, most of which are vacation rentals – more than $4.7 million. Allegations include blocking the public’s access to a 37-foot-wide, almost quarter-mile long stretch of […]
Many Tall Condominiums Face New Expenses (FL)
Surfside Condominium collapsed in June 2021 with $1 billion in property damage and 98 deaths. In May, 2022 Florida’s legislature amended statutes and adopted laws to require structural inspections and reserves for condominiums if three stories or more in height. The legislature amended the statutes in 2023. Many condominiums will find meeting the new statutory […]
Fannie Mae to make its secret condo blacklist public
But the information will be available only to homeowners’ associations. Move follows Globe story on how unsuspecting buyers and sellers were left in the dark. Read the article……………………..
Condo originations ‘streamlined’ through project advisor tool: Freddie Mac
Government-sponsored enterprise (GSE) Freddie Mac on Wednesday announced further enhancements to its Condo Project Advisor tool that are designed to “streamline” such loan originations and to offer lenders “greater security” through a new designation, according to an announcement. Read the article…………………………..
Maryland judge sides with insurer in dispute involving 22 damaged condo roofs
A condo association submitted a claim to Philadelphia Indemnity, alleging a storm damaged the roofs of 22 condominium buildings that required replacement, claiming the replacement costs of the roofs totaled more than $1.1 million. Meanwhile, Philadelphia Indemnity estimated that the storm-related damages and repairs came in around $38,000. Read the article…………………………………
Boca Raton’s L’Ambiance HOA Facing Lawsuit (FL)
Homeowners in the Boca Raton community of L’Ambiance are suing the Homeowner’s Association and its board of directors, claiming that the HOA is taking money and not providing required services and maintenance. The suit was just filed in Palm Beach County Circuit Court. Read the article………………………….
What is The Open Meeting Act? (CT)
The Open Meeting Act, also known as the Sunshine Law, aims to enhance accountability and transparency in governing bodies. It mandates that all meetings of homeowners associations, including board and yearly meetings, must be accessible to all members. Read the article……………………………
Condo Task Force Facing Deadline May Punt To State Auditor Instead (HI)
The task force report is due at the end of this month, but a draft went nowhere. The auditor could look into critical issues affecting as many as 1 in 4 residents. Read the article………………………..
Navigating Arizona House Bill 2298: Essential Guide for Planned Communities
Arizona’s planned communities are facing a significant shift in governance with the enactment of House Bill 2298. Effective from October 30, 2023, HB 2298 alters the control that community associations have over public roadways within their jurisdictions. This article aims to provide an overview of the bill and outline actionable steps for compliance, helping to […]
Illinois Supreme Court Overturns Decades of Confusing Law on Insurance Coverage for Inadvertent Construction Defects
Over the years, owners and contractors were frequently shocked to learn that there was no insurance that could cover damage caused by inadvertent defective construction. However, that all changed on November 30, when the Illinois Supreme Court, in Acuity v. M/I Homes of Chicago, LLC, aligned Illinois law with the modern trend followed by most […]
Tort Immunity in New Jersey Community Associations (NJ)
The word “immunity” can conjure up many feelings, especially after living through the past few years of COVID-19. This is somewhat ironic because a different type of immunity became a flashpoint for community associations at the during the pandemic – tort immunity. Read the article…………………………………
Little Known Provisions in CCIOA and the Nonprofit Act (CO)
The Colorado Common Interest Ownership Act (“CCIOA”) and the Colorado Revised Nonprofit Corporations Act (“Nonprofit”) are the two primary statutes governing common interest communities in Colorado. These statutes are long, complex, and contain provisions many people are not familiar with, and, frankly, may not care about. Read the article……………………………….
Do Condo Unit Owners Have First Amendment Rights in Illinois?
The answer to the above question about condominium unit owners’ first amendment rights is absolutely yes. Section 18.4 of the Illinois Condominium Property Act provides that no rule or regulation may impair the rights guaranteed by the First Amendment to the Constitution of the United States or Section 4 of Article 1 of the Illinois […]
The Effect of Section 720.3045, Florida Statute on Homeowner Association
Section 720.3045, Florida Statutes was created during the recent legislative session as part of House Bill 437. This section prevents associations from restricting the installation, display and storage of “any item” on a parcel that is not visible from the parcel’s frontage or an adjacent parcel, unless same are prohibited by general law or local […]
Navigating the CTA: A Guide for Condos and HOAs to comply with the Corporate Transparency Act (MI)
The Corporate Transparency Act is a federal law that was enacted in 2021 to stop individuals in foreign countries from illegally moving money into the United States. The Corporate Transparency Act creates new reporting requirements for certain types of corporate entities in the United States. The Federal Crimes Enforcement Network (“FinCEN”), is the federal agency […]
2023 Uniform Law Commission Joint Editorial Board for Uniform Real Property Acts Update
The Uniform Law Commission (ULC) provides states with non-partisan, well-conceived and well-drafted legislation that brings clarity and stability to critical areas of state statutory law. Currently, six joint editorial boards are appointed by the ULC in various subject areas. Each of these subject-matter boards are responsible for monitoring new developments and presenting recommendations for relevant […]