Members of Community Associations Institute in Colorado have received the following update from CAI’s Colorado Legislative Action Committee on the HOA Reform Package of bills: Read More……
Court Of Appeal Makes Condominium Association Foreclosures More Costly
The Third District Court of Appeal recently issued an opinion that is a game changer for third-party purchasers of condominium units at foreclosure sales. The Third District’s opinion in Aventura Management, LLC v. Spiaggia Ocean Condominium Association, Inc., Case No. 3D11-2545 (Fla. 3d DCA 2013), absolves third-party purchasers of responsibility for a prior owner’s past-due […]
Ohio Community Associations Dodge a Sales Tax Bullet
On February 12, 2013, a new budget and tax reform plan known as House Bill 59 was introduced. Under the proposal, Ohio’s sales tax rate would have been lowered from 5.5% to 5%. To make up for the lost revenue resulting from the lowered tax rate, all service transactions would have been taxable unless specifically […]
Florida 2013 HOA Legislation Highlights
Last week the House of Representatives and the Senate passed Bill 7119 providing many needed amendments to Florida Statute 720, the statute regulating homeowner associations. We are now waiting for the governor to sign the bill into law, which would go into effect July 1, 2013. Read More……
Illinois Supreme Court: Chicago ordinance allowing unit owners to see records is valid
The primary issue in this appeal is whether a City of Chicago ordinance allowing condominium unit owners to inspect condominium association financial books and records is a valid exercise of the City’s home rule power. We affirm the appellate court’s holding that the City’s ordinance is valid and enforceable. We also affirm the appellate court’s decision that the trial court […]
CA: Hoffman et al v. Pacific Crest Community Association
Sarah and Glenn Hoofman appeal summary judgment in favor of respondent and cross-appellant Pacific Crest Community Association (PCCA). The Hoofmans commenced a class action on behalf of all members of PCCA and sued the developers of their single-family home’s development, as well as PCCA, after a landslide on an allegedly defective common area slope damaged plaintiffs’ home. Plaintiffs asserted […]
CO: HB 1134 and HB 1276 Clear the Senate Local Government Committee
House Bill 1134 (HB 1134) and House Bill 1276 (HB 1276) just cleared the Senate Local Government Committee and will proceed to the full Senate for consideration. HB 1134, which is being sponsored in the Senate by Senate Majority Leader Morgan Carroll, was approved by the Committee on a 3 to 2 vote and was […]
Fourth DCA Rules Insurance Companies Not Required to Provide Coverage for all Portions of Condominium Property
Recently, the Fourth District Court of Appeal in the case of Citizens Property Insurance Corp. v. River Manor Condominium Association, Inc., ruled that an insurer is not required to provide an association with coverage for “all portions of the condominium property located outside the units” and “all portions of the condominium property for which the […]
CO: Lawmakers kill lawsuit limits on condo defects
Tort reform on construction defects in Colorado will have to wait another year. After a hearing spanning two days, the state Senate Judiciary Committee on Wednesday killed SB 52, a proposal by Sen. Mark Scheffel, R-Parker, to limit lawsuits over condominiums and townhouses that have brought construction of such residences virtually to a halt in […]
CO: Manager Licensure Bill Clears First Hurdle in the House
Earlier this afternoon, on a 6 to 5 party line vote, the House Business, Labor, Economic & Workforce Development Committee passed an amended version of HB 1277 – the manager and management company licensure bill. Read More……
Court Says HOA Can Issue Speeding Tickets; What’s Next, Undercover Ops?
The Illinois Supreme Court held in January that an HOA’s hired security officer could stop and issue a valid speeding ticket againsta home owner. Here, we explain the court’s decision in Poris v. Lake Holiday Property Owners Association and whether the court’s reasoning would likely be upheld in other states. Read More……
CO: HOA Debt Collection Bill Approved by House Business Committee
Late yesterday afternoon, the House Business, Labor, Economic and Workface Development Committee passed an amended version HB 1276. Highlights of the bill as originally introduced include the following: Read More……
Leadership Withdrawing Land After Purchase? Oh I Don’t Think So!
CCIOA has an interesting provision, contained in Section 210(4), which allows developers to withdraw property included in an association only if: (1) a portion of the real estate is subject to withdrawal; and (2) a unit in such portion of real estate has not yet been sold to a purchaser. Although this Section seems clear […]
New Jersey Condominiums are Able to Limit Certain Liability Claims
On March 20, 2013, the Superior Court of New Jersey ruled in Irma Sanchez v. The Villages Association that the burden of proving the validity of a community association’s bylaws limiting its liability in personal injury cases rests with the injured plaintiff. It is beneficial for community associations, their boards, professional managers and unit owners […]
Are California Community Managers Required to have a Contractor’s License?
The blogosphere has been burning up lately over a new California law that some commentators say might require community association managers to have a General Contractor’s license to perform their jobs. Since property managers can be said to “oversee” bids for construction projects it has been suggested that they might fall within the expanded definition […]
The Emperor’s New Economic Loss Rule
For years, litigating breach of contract cases in Florida meant having to struggle with the array of cases dealing with the Economic Loss Rule. In its simplest form, the Economic Loss Rule is a judicially created principle that prohibits tort damages in a breach of contract action where the damages are limited to an “economic […]
Bills That Passed This Legislative Session and How to Comply
The 2013 Utah General Legislative Session has ended and the bills that passed have been finalized in their enrolled form to await signature by the Governor. Which bills passed and which ones didn’t? Only three of the six bills I discussed in my last post ended up passing the House and the Senate. They all […]
Maryland Senate Passes Amendment To Provisions For Termination Of Developer Contracts
By a vote of 37 – 7, the Maryland Senate passed SB 162, which provides for amendments to the current provisions applicable to the rights of condominiums and homeowners associations to terminate contracts that were entered into by the developer prior to the property owners having assumed control of the community.
Two Significant Bills Introduced Impacting HOAs in Colorado
The following communication from CAI’s Colorado Legislative Action Committee (CLAC) has been sent to CAI members in Colorado on the introduction of bills addressing manager licensure and HOA debt collections. In addition to future communications from CLAC, stay tuned to this blog for important updates on these significant bills as they proceed through the legislative […]
New Condo Laws Scheduled For Monday Public Hearing In Hartford
A public hearing has been scheduled for Monday on several proposed bills involving Connecticut condominium laws, including legislation that would require banks to reimburse associations for up to 12 months of maintenance fees in case of foreclosures. Read more……
CO: Foreclosure ‘Reform’ or Headache for Associations?
Recently introduced House Bill 13-1249 has been promoted as an attempt to ‘reform’ the public trustee foreclosure process by requiring lenders to prove that they hold the Deeds of Trust being foreclosed and further requiring them to negotiate and work with borrowers requesting a loan modification or other foreclosure prevention alternatives. If the Bill is […]
Maryland House Passes Bill To License And Regulate Property Managers
By a vote of 103 – 35, the Maryland House of Delegates has passed HB 576, which would establish a new regulatory agency for the licensing of community managers of condominiums, cooperative housing corporations, and homeowners associations. Read more…
Texas homeowners may have drought-resistant lawns
he Texas Legislature has guaranteed the right of landowners to install drought-resistant landscaping. The Senate passed a bill Monday denying homeowners’ associations the power to ban landscaping designs intended to save water. The bill now goes to Gov. Rick Perry for his signature. Read more…
Ontario: Directors personally responsible for costs of litigation to quash owners’ rights
Noteworthy costs awards were recently released in Middlesex Condominium Corporation No. 232 v. Owners, which we cited as number 6 in our top 10 condo law cases of 2012 as follows: Faced with an increasingly unhappy ownership, the board commenced an application for appointment of an administrator. Read More……
California Community Associations May be Liable for Injuries Suffered in Trip and Fall Accidents on City Sidewalks
There have been a number of articles written over the last few years regarding the fact that municipalities do not have the money or resources to repair sidewalks broken up by tree roots. There had been some programs in some California cities that would reimburse homeowners up to one half the cost of repairing sidewalks […]
State Supreme Court holds key to condo assessment case
When Lisa Carlson stopped paying her condominium assessments nearly four years ago, she never expected that her legal battle over a leaky roof, bulging drywall and cracked ceilings would wind up before the state Supreme Court. An appeals court paved the way, ruling that Carlson, of Highland Park, could use her condo board’s alleged failure […]
Part 2 on Virginia’s Unauthorized Practice of Law Rules and Community Associations – What is considered the unauthorized practice of law?
Virginia has only one UPL opinion that pertains specifically to HOAs. UPL Opinion 139 addresses “whether a company providing management services to a condominium association, may prepare and file liens on behalf of the association.” A lien filed for a condominium, pursuant to Va. Code Ann. § 55-79.84, or a lien filed pursuant to Va. […]
HUD issues aggressive new fair housing rule
The U.S. Department of Housing and Urban Development (“HUD”) has finally issued its much-debated disparate impact rule. HUD argues that the rule—which it plans to apply retroactively—is simply a codification of its existing position that the Fair Housing Act authorizes disparate impact claims. But the rule goes well beyond that. It articulates a burden-shifting framework […]
Authority To Enter Into Contract Is Issue For Courts, Not Arbitrators
The Third Circuit just issued a decision that tries to divine the dividing line between challenges to the formation of contracts containing arbitration clauses (which are presumptively for courts), and challenges to the validity of contracts containing arbitration clauses (which are presumptively for arbitrators, if the challenge is to the contract as a whole). It […]
Utah LAC Issues Statement on SB 64 (Reserves)
As many of you may know, the 2013 General Session of the Utah Legislature is in full swing on Capitol Hill. A few bills enacting or amending HOA laws are in the works and I’ll be summarizing and commenting on those over the next couple of weeks. Read More……
Third DCA Opinion Deals Significant Blow to Condo Associations That Foreclose on Units in Advance of Banks
For the past several years we have written many articles in this blog encouraging condominium associations to aggressively move their foreclosure cases forward in order to take ownership of those units whose owners are delinquent in advance of the banks’ foreclosures. RealtyTrac’s data shows that it takes an average of 2.5 years for bank foreclosures […]
All HOA and Eviction Lawyers Should Read This Case
One of the more powerful and least understood provisions of the Forcible Entry and Detainer statute allows condo associations and certain other community interest associations to evict homeowners from their units for the non-payment of assessments. The association can then place a tenant into the unit and can apply the rental proceeds to the homeowner’s […]
Diarrhea Signs (And Others) Now Required for California Condo and HOA Pools
Have you heard the latest regarding new required pool signage at California community association pools? Our attorneys have been receiving a lot of inquiries about whether a new “poop sign” is required to be posted at community associations that have pools. We have to report that a diarrhea sign is now required. Read More……
Iowa – Common interest redux
The common interest ownership bill may have some life left in it. Representatives Isenhart (D-Dubuque) and Highfill (R-Polk) have filed House File 122. This bill is essentially the same as the bill that the House Judiciary Committee approved in the last session. Read More……
Turning up the Heat on Residential Design Professionals
California’s 1st District Court of Appeal recently ruled that “design professionals” may be liable under both common law and Senate Bill No. 800 (“SB 800”) to third party purchasers for construction defects. Read More……
Third District Appellate Opinion May Affect Collection Strategies
In its recent opinion in the case of Aventura Management, LLC vs. Spiaggia Ocean Condominium Association, Inc., the Third District Court of Appeal may have significantly impacted the collection strategies implemented by many condominium and homeowner associations in Florida. The case involved a condominium association’s efforts to recover full payment of past-due assessments and related […]
Is the Honeymoon Over for Aussie Strata Committees? (Looking at U.S. D&O claims)
Australian strata committees have enjoyed a pretty benign life for the last 50 years. They haven’t had to do too much, mostly defer to owners meetings on key decisions, rely on strata managers for most day-to-day operations and have not been sued very often or for very much.
Illinois Supreme Court rules subdivision police can detain drivers
The homeowners associations responsible for managing subdivisions across the state have the power to enforce their own traffic rules through a private security force, the Illinois Supreme Court ruled Friday, overturning a lower-court ruling that found they could be unlawful. Read More……
Common Sense and Affordable Legislative Approaches Must Be a Priority
As Chair of CAI’s Colorado Legislative Action Committee (“CLAC”) and a political junky, I avidly follow federal and state legislative and regulatory initiatives relating to HOAs. If you follow our blog, you know that on Friday Representative Su Ryden introduced HB 1134 which significantly increases the obligations and authority of the HOA Information Office & […]
Hurricane damage claim barred by property damage exclusion
The United States District Court for the Southern District of Florida has held that an insurer did not owe a duty to defend a lawsuit by a homeowner against a condominium association because all of the claims arose out of hurricane damage and thus fell under the property damage exclusion contained in a non-profit management […]
Bill Introduced in Colorado House to Broaden Authority and Responsibility of HOA Information Office
On Friday, House Bill 13-1134 (“HB 1134”) was introduced by Representative Su Ryden in the Colorado House of Representatives to broaden the authority of the HOA Information Officer and to clarify the responsibilities of the HOA Information and Resource Center. The primary sponsor of the bill in the Senate is Senator Morgan Carroll. Read More……
Maryland Senate, House reach compromise on pit bull issue
Key members of the Maryland Senate and House have reached a compromise on how to undo a Court of Appeals ruling last year that labeled pit bulls as an inherently dangerous breed. Read More……
Spanish Court Two Condominium Association v. Carlson (IL Appellate Court 2nd Dist)
May a condominium owner refuse to pay monthly and/or special assessments, in whole or in part, on the grounds that the condominium board had failed to maintain and repair the common elements of the condominium property? In the vast majority of jurisdictions around the country, the answer is simple: No. Last summer, in what the […]
Georgia Community Association “Priority Lien” Bill – A New Year, Another Chance
For years now, there has been an ongoing push to try to pass a bill in the Georgia legislature that would give community associations that are subject to the Georgia Property Owners Association Act (as opposed to “common law associations”) and condominium associations a special “Priority Lien.” In 2013, the push continues. Read More……
Insurer cannot Subrogate against its own insured
Subrogation is an insurance company’s right to go after a person or entity responsible for a loss that the insurance company paid to its insured. For example, when an insured is involved in a car accident, the insurance company Read More……
Family Day Care Homes Can Operate Within California Community Associations—So Long As They Follow The Law
Did you know that California community associations are required to allow an owner to operate a “family day care home” within their unit or lot at an association and that the day care can have up to 14 kids in it!? Yup, it is true. This blog post is intended to address family day care […]
Second Circuit Reverses Bacolitsas Decision in Rare Win for Condo Developers
A condominium developer has garnered a significant victory in a dispute with a buyer as the result of a decision by the U.S. Court of Appeals for the Second Circuit. In Bacolitsas v. 86th & 3rd Owner, LLC, a reluctant purchaser of a unit in New York sought to rescind his purchase and sale contract […]
In OpenBand lawsuit, stage set for complex case
A $50 million lawsuit filed by telecommunications provider OpenBand will head to court in February, marking a new escalation in a years-long, increasingly litigious battle involving the Dulles-based company, its eastern Loudoun customers and county supervisors. Read More……