On February 24, 2014, the U.S. Supreme Court denied certiorari in the Ninth Circuit case Salameh v. Tarsadia Hotel, effectively rejecting a securities fraud claim by purchasers of hotel condominiums and affirming one method of publicly offering hotel-condo units outside the purview of federal and state securities law. 726 F.3d 1124, 1128 (2013). […]
CCOC’s Legislative Proposals Enacted In Connecticut
The CT Condo Owners Coalition [CCOC] is very pleased that the Legislature passed a bill during the last few days of the session that will benefit unit owners residing in common interest communities throughout Connecticut (Substitute Senate Bill 457 (File 613, as amended by Senate “A”. This legislation is now Public Act 14-215, “An Act […]
Status of House Bill 371
Because of the thousands of emails, phone calls, and letters that Rep. Grossman received in strong opposition HB 371, she was willing to meet face-to-face with representatives from the Ohio Legislative Action Committee of CAI to discuss the many concerns with the legislation as drafted and to hear our ideas in the alternative. […]
California Supreme Court to address design professionals and duty of care to third-party purchasers
On May 7, the California Supreme Court heard oral arguments in Beacon Residential Community Assn. v. Skidmore, Owings, & Merrill LLP, a case that will have a huge impact on design professional liability in California when third-party purchasers sue a designer alleging defective designs. Read more…….
NJ trial court dismisses condo association’s defect claims
In late March, a trial court in Bergen County, New Jersey dismissed a condominium association’s construction defect claims against several construction entities for failure to comply with the applicable statute of limitations. This decision’s appellate aftermath will be interesting to follow, because the trial court stripped away some of the protection that New Jersey’s discovery […]
Appellate Court (FL) Rules in Favor of Association: Fannie Mae Must Pay
The Third District Court of Appeal in the State of Florida ruled in favor of The Alden Hotel Condominium Association against Federal National Mortgage Association on, April 2, 2014, following an appeal of a non-jury trial. According to court documents, Fannie Mae had taken title to one of the condominium units through bank foreclosure and […]
Anti-SLAPP statute does not apply to statements made to HOA during board meetings (CA)
In an April 15 opinion, the California Court of Appeal decided that a builder cannot use the anti-SLAPP statute to circumvent fraud-based claims where there were misrepresentations by the builder to the homeowners association regarding repairs for defects at the project. Read more………
Houston (TX) Court of Appeals Reverses Large Judgment Against HOA
The Houston Court of Appeals, 14th District recently ruled in Tanglewood Homes Association, Inc. v. Feldman, overturning a trial court judgment for over $ 500,000 that had been awarded in favor of owners after a lengthy bifurcated jury trial. Read more……..
Homeowner Association: $13,482.50 Fee Award To HOA Prevailing In Injunction Proceeding Affirmed On Appeal (CA)
Homeowner in Sungate Country Owners Assn. v. Stephens, Case No. E055751 (4th Dist., Div. 2 May 28, 2014) (unpublished) may have thought he was safe from fee exposure after HOA dismissed its case without prejudice after winning a preliminary injunction relating to unauthorized construction activities and after he/his mother sold the lot. Read […]
Lender liability for Florida HOA and condominium association assessments 2014 update
While Florida continues to make progress processing and completing the backlog of residential foreclosures stemming from the prior decade’s housing crisis, lenders, buyers and associations continue to encounter several unresolved issues involving assessment liability. In June, 2011, I discussed several of these issues in a prior article. This article is a brief case law and […]
Casey v. Sudden Valley, Budgets v. Assessments (WA)
In many associations, a board adopts a budget, the board sends a summary of the budget to the owners, and the owners ratify the budget. This practice is consistent with RCW 64.38.025(3) – the Washington Act that applies to non-condominium homeowner associations. Read more…….
Condominium Council (MD) Held In Contempt Of Court For Failing To Make Common Element Repairs
In a case in which my colleague, Jack Boyd, and I represented the unit owner, the Circuit Court for Baltimore City has held a high-rise condominium in contempt of a prior order of the Court to undertake and complete repairs to the exterior common elements needed to make the building watertight. Read more…….
Florida’s Distressed Condominium Relief Act Gets Further Extension of Life
An extension of the Distressed Condominium Relief Act has been approved by the legislature and is under review by Governor Rick Scott. Many were worried that the sunset of the Distressed Condominium Relief Act would prevent owners who bought distressed properties from reselling these properties in bulk. Read more……..
Court (CA) Clarifies Transfer Disclosure Law for Mixed-Use Property
The recent appellate decision of Richman v. Hartley is critical for California real estate agents and sellers to know as it clarifies the mandatory disclosure requirements for property sales. Read more…….
Is a Homeowners Association Required to Accept Partial Payments? (CA)
In Huntington Continental v. J.M. Trust (Cal. App. Sup. Ct.; January 13, 2014)(222 Cal. App. 4th Supp. 13.) the Appellate Division of the Orange County Superior Court held that the Davis-Stirling Act compels associations to accept partial payments from homeowners to reduce the amount of the homeowner’s unpaid assessments. Read more…….
Servicemembers Civil Relief Act
Sometimes during a collection of an account, we become aware that the homeowner is in the military. When this happens, there are certain procedures and precautions we must take before proceeding with collections. This is due to the Servicemembers Civil Relief Act, which affords a number of significant protections to servicemen and servicewomen who are […]
New 2014 Utah HOA Laws
A few new HOA laws went into effect earlier this week on May 13. They are not too substantial and shouldn’t significantly alter your way of doing business, but they’re important to know about and comply with. Read more…….
Board President Personally Liable for Violation of Fair Housing Act
In our most recent blog post, we discussed the issue of accommodation of service dogs, and specifically arecent Florida case, Sabal Palm Condos. of Pine Island Ridge Ass’n v. Fischer. In this post, we’ll discuss another facet of that case: the individual liability of the Board president of the Sabal Palm COA for his actions. […]
News from the Virginia General Assembly and CAI’s Virginia Legislative Action Committee
Below are a host of new laws that will become effective on July 1, 2014. There are some significant new items and we urge you to read closely. Mike Inman serves on the Virginia Legislative Action Committee and can answer any questions you might have about the bills. Read more……….
Legislature (FL) Passes Bill to Allow Some Legal Work Performed by Community Association Managers
With the ending of the most recent legislative session on May 2, 2014, the Florida Legislature addressed the issue of what many attorneys in Florida have considered the unlicensed practice of law by community association managers. House Bill 7037 was adopted this term and expands the role that CAMs play in the associations that they […]
Illinois legislature may restrict arbitration as option for resolving condo association-developer disputes
Commonly used, cost-effective measures for resolving disputes between Illinois condominium developers and association boards may soon be declared void as against public policy. Two bills with similar language currently under consideration by the Illinois legislature will make significant changes to the Illinois Condominium Property Act (“the Act”) with costly implications for developers and other construction […]
SB 14-220 Runs out of Time
As quick as SB 14-220 was introduced, it was declared dead almost as fast. After passing out of the Senate Committee on State, Veterans and Military Affairs on a 3-2 vote, it was referred to the Judiciary Committee where, given the lack of time remaining in the session, the Committee declined to schedule the bill […]
Colorado: Construction Defect Bill Dead for Session
Senate Bill 14-220 (“SB 220”) is dead for the session. Sponsored by Senator Jesse Ulibarri (D-Commerce City), who represents himself as an advocate for affordable housing, this bill was a molotov cocktail created to destroy the ability of homeowners living in HOAs to recover from builders for defective construction. Read more……..
New law provides high standards for community managers (FL)
The Florida Legislature just passed a new bill that creates high standards for Florida’s community association managers and management companies. The Governor is expected to sign it. Here is what the law says: Read more…….
Appellate Court Decision Reaffirms That Community Association Liens Are Wiped Away by Tax Deed Sales (FL)
A decision last year by the Second District Court of Appeal clarified an issue that has caused some consternation and confusion among community association boards throughout Florida for many years. Read more……..
Construction-defects reform bill companion dies in Colorado Legislature
A three-pronged approach to addressing the shortage of affordable condominiums in Colorado lost a prong Thursday when a Senate committee decided there was no need to have multiple state agencies study the issue. Read more……….
Lev Leviev & Partner Shaya Boymelgreen Ordered By Judge To Hand Over Control Of Luxury Manhattan Condominium To Residents
Lev Leviev’s Africa Israel group has substantial real estate development interests in New York, including residential condominium conversion projects. One of these, at 15 Broad Street in downtown Manhattan, is a luxury residential project that was converted from office space. Read more……..
Bill Introduced to Strip Homeowners of Ability to Recover for Construction Defects
With one week remaining in the 2014 legislative session, Senate Bill 14 – 220 (“SB 220”) was introduced yesterday evening in the Colorado Senate. While it may seem to some that this bill was introduced too late in the session to have any chance of passage, with relaxed rules in place for the end of […]
Washington State HOAs Must Comply With New Law Regarding Meeting Minutes
Only one piece of state legislation directly affecting Washington State community associations became law in 2014. This new law amends RCW 64.38, which is the state law governing homeowners associations. The new law adds the following language to RCW 64.38.035(1): Read more……..
Judge dismisses lawsuit from Skypoint condo owner who said Riverwalk (FL) high-rise will block his view
A judge Wednesday dismissed a lawsuit from a Skypoint condo owner who said a planned nearby high-rise tower would block his “sweeping views of the Hillsborough River.” Read more…….
Appellate Court of Illinois Provides Guidance On Condo Board Operations & Owners’ Rights
The Appellate Court of Illinois, First District, has recently ruled in the case known as Palm vs. 2800 Lake Shore Drive Condominium Association that meetings held by the Board of Directors of a condominium association, which were closed to unit owners, were a violation of the Illinois Condominium Property Act. Read more……..
Construction-defects reform bill (CO) is yet to be introduced after accusations that leaders were attempting to delay it to death
Colorado House Speaker Mark Ferrandino predicted Tuesday morning that a construction-defects reform bill will die this year, about 10 hours before a second measure dealing with the lack of condominium housing — but not the the long-awaited measure for which business groups and metro mayors have been pushing — was introduced in the Colorado Legislature […]
New York State Tax Break Finally Coming to Co-op and Condo Owners
State Senator Tony Avella (D-Bayside) officially announced last week the inclusion of a tax-relief program for small homeowners, renters and co-op and condo owners in this year’s New York State budget. After the original proposal entailed tax relief solely for renters, Avella introduced legislation to include condominiums and cooperative owners and other homeowners. Read […]
A Condo Board (NY) Tries to Get Foreclosure Proceeds Ahead of the Bank. Can It?
When a sponsor is in arrears to both a lender and a condominium, can the condominium get some of the money it is owed before the lender does? Usually, you can’t — but the condo board at 455 Central Park West made some novel arguments that are worth knowing about. Read more……..
Condo-building incentives — but not lawsuit curbs — introduced in Senate
Half of the construction-defects package that business groups have been waiting for is now in play in the Colorado Legislature. Read more……..
Community Life: Videoconferencing and board meetings (FL)
Q: Can board meetings of a condominium association be conducted using a videoconferencing service, such as Skype, so that both board members and unit owners cannot only hear, but see the business being conducted? Read more……..
CAM bill advances; House (FL) expands homeowner management duties
Community association managers, or CAMs, that operate homeowners associations would have their duties more clearly defined under HB 7037, which passed the House on Friday by a 95-17 vote. Read more…….
Management Company Transparency Bill Signed Into Law (CO)
On April 18th, Governor Hickenlooper signed HB 1254 into law. The bill addresses the disclosure of fees charged to HOAs in Colorado by management companies. HB 1254 will go into effect on January 1, 2015. Here’s what you need to know about the bill: Read more………
A Brooklyn Condo Board Fights a Sponsor’s Alleged Shoddy Construction
The condo board at 550 Grand Street in Williamsburg, Brooklyn, had a problem unrelated to hirsute hipsters, organic kale smoothies and double-wide strollers. It’s a common problem with new construction and even in renovated pre-war apartment buildings, such as this four-story, 1920 walkup converted circa 2009 from three units to six. Read more……….
Florida District Court of Appeal Reaffirms Ruling Making Condominium Association Foreclosures More Costly
Last week, the Florida Third District Court of Appeal dealt the final blow to an often-used strategy by condominium associations. In the second iteration of Aventura Management, LLC v. Spiaggia Ocean Condominium Association, Inc., Case No. 3D13-1437, the Third DCA confirmed its prior ruling that a third-party purchaser who takes title to a condominium unit […]
Judge denies injunction, restraining order for community association lawsuit (HI)
A judge denied Mauna Kea Resort Services’ request for an injunction Wednesday, ordering that organization to enter mediation with another community association. The Uplands at Mauna Kea Association filed suit last month against Mauna Kea Resort Services, an umbrella organization for several other resort homeowners associations, alleging the company had fraudulently withheld millions in common […]
SF 2312 Condos and Co-ops Bill (IA)
The bill clarifies that the terms, conditions, covenants, and provisions of the documents creating and regulating a multiple housing cooperative or horizontal property regime (condominium) continue and remain in full force and effect for so long as the coop or condominium is in existence, unless amended Read more……..
Judge rules against Eldorado (NM) chickens; birds must be gone by Sept. 30
If your neighbor’s house has knee-high grass, dilapidated siding or a car up on blocks in the backyard, don’t wait until you’re ready to put your house on the market to try to get theirs fixed up, said Janet Johnson, supervisor of the Office of Community Engagement for the city of Wichita, Kan. […]
Bill would protect California homeowners association members who reduce water use for landscaping
A bill moving through the Legislature protects people in homeowner associations from retribution if they take steps to reduce water use for landscaping. Read more………
Provisions in CC&R’s Requiring Arbitration of Claims Against Developers by Homeowners Associations or Owners Are Not Enforceable (CA)
In Villa Vicenza Homeowners Ass’n v. Nobel Court Dev., LLC, No. D054550 (4th Dist. Jan. 11, 2011, the Fourth District of the California Court of Appeal held that a provision in a declaration of covenants, conditions and restrictions (CC&R’s) that required a homeowners association (HOA) and homeowners to arbitrate claims against the developer are not […]
Disaster Planning: New Law (NJ) Mandates Over 55 Communities to Maintain Emergency Building Operations Plans
On January 13, 2014, New Jersey Governor Chris Christie signed into law P.L. 2013, Ch. 186 (A-3625/S-2343), which requires age-restricted multiple dwelling owners – including certain condominiums and homeowners associations – to annually prepare and maintain emergency building operations plans. Read more………
Michigan Court of Appeals rules mortgagees responsible for condominium assessments from date of sheriff’s sale
In Wells Fargo Bank v. Country Place Condominium Association, the Michigan Court of Appeals addressed an issue of first impression and resolved an issue that had been disputed for many years in Michigan between condominium associations and banks. The case involved a dispute as to when the mortgagee bank, which was also the purchaser at […]
Management Company Transparency Bill Headed to Governor Hickenlooper’s Desk! (CO)
On a vote of 53 to 11 (with one representative excused), the Colorado House of Representatives just voted to approve the Senate amendments to House Bill 14-1254 (“HB 1254”). The next stop for HB 1254 is Governor Hickenlooper’s desk where we fully expect he will sign the bill into law. Once that happens, HB 1254 […]
HOA Records Bill Signed Into Law (CO)
During a bill signing ceremony today, Governor Hickenlooper signed House Bill 14-1125 (“HB 1125”) into law. HB 1125 will go into effect on August 6th and fixes an inadvertent oversight in the HOA records law which has made it impossible for HOAs to include in membership directories the telephone numbers and email addresses of owners […]
Management Company Transparency Bill Easily Clears the Senate!
This morning, House Bill 14-1254 (“HB 1254”) was passed by the Senate on 3rd reading on a 32 to 3 vote. The bill, which was amended in the Senate to require that fees and charges be included in a management contract to be enforceable, is now headed to the House for concurrence with the Senate […]