The U.S. Department of Housing and Urban development announced Wednesday that it filed a complaint against the owner, architect, builder and designers of the 36-unit Valle Creek Condominiums at 8011 Valle Creek Parkway in Barnhart, Mo., for violating the Fair Housing Act. Read More……
State Supreme Court Permits Continued Development Of Franklin County Subdivision
The Tennessee Supreme Court on Monday upheld a decision of the Chancery Court for Franklin County to permit the continued development of Cooley’s Rift, a 1,400-acre residential development near Monteagle, despite objections from some original homeowners to changes in the development plan. Read More……
Significant Maryland Condominium Arbitration Award Confirmed By Balitmore City Circuit Court
The Circuit Court’s confirmation of the $1,252,487 arbitration award resulted in what is believed to be Maryland’s largest judgment against a condominium council of unit owners for its failure to maintain, repair, and replace the common elements of a condominium building (in this case, the roof system, exterior façade, and HVAC ductwork of a 27-story […]
Developers may require that construction defect disputes be resolved through arbitration (CA)
The California Supreme Court recently ruled that developers – by including an arbitration provision under the Federal Arbitration Act (FAA) in Homeowners’ Association Covenants, Conditions and Restrictions (“CC&R’s”) – may require that construction defect actions be resolved through arbitration rather than by jury trial. Read More……
Community association law moves up
Community associations, the nonprofit corporations that govern subdivisions, condominiums, planned communities and mixed-use developments, have become as common as fast-food restaurants. Nearly every new real estate development with multiple owners is governed by one or more community associations. Read More……
To Recuse or Not to Recuse? That Is the Question an Attorney Answers
A 70-unit, eight-building condominium complex faced the issue of a board member’s personal involvement in its decision-making process. The backdrop was cigarette smoke flowing from one unit into other units — including one owned by a condo-board member. You can probably see where this going. Read More……
Florida Court Reviews Entitlement To Attorneys’ Fees
No one wants to be involved in a lawsuit. Guaranteed to not only be a real drain on time and elevate stress levels all around, litigation can rack up enormous legal fees for both the plaintiff and the defendant. A well-known strategy for companies is to include wording in contracts that allows a prevailing party […]
Court Grapples with Distinction Between Repairs and Capital Improvements
The Washington Court of Appeals issued an unpublished opinion earlier this month concerning a condominium association’s authority to fund a major construction project without a prior vote of its owners. The project involved the installation of a $2 million “rain screen” building envelope system Read More……
Neither a Community Association Nor its Management Have Liability under the Federal Fair Debt Collections Practices Act
We have had to extricate several of our clients from claims or lawsuits relating to the federal Fair Debt Collections Practices Act (FDCPA). It is well settled law that the FDCPA applies to the collection of delinquent and unpaid assessments for condominium and homeowner associations. However, the FDCPA does not apply to collection efforts which […]
Assessment Collections Fees in “No-Cost” Collections Contracts
The United States Bankruptcy Court in California recently ruled in a case that may impact the terms under which Homeowners Associations (“HOAs”) contract with collections companies to pursue delinquent assessments. Read More……
Arbitration of Construction Defect Claims Against Developer and General Contractor
Denver District Court orders arbitration of construction defect claims in Glass House Residential Association v. Alta Riverfront LLC et al, no. 2012CV1531. The Glass House ruling provides direction for developers and general contractors to choose a preferred method of dispute resolution for construction defect claims. The Denver District Courts recently upheld mandatory arbitration in a […]
Can condominium associations ban religious symbols?
The Supreme Court of New Jersey addressed this situation in A Committee For A Better Twin Rivers, v. Twin Rivers Homeowners’ Association. In the Supreme Court’s decision, authored by Justice John E. Wallace, Jr., the Court determined that even in light of New Jersey’s broad interpretation of its constitutional free speech provisions, the “nature, purposes […]
Even if they disagree with the board, condo owners must pay special assessments
The New Jersey Appellate Division has restated a basic rule of condominium and homeowner association law: i.e. that disagreement with the Board will not justify the non-payment of your maintenance fees or special assessments Read More……
Property Owner Wins Lengthy Turf War; Judge Titles Order: “Anatomy of An HOA Dispute Run Amok”
A CC&R dispute that started 11 years ago over the condition of a Tampa Florida homeowner’s lawn, a lawsuit that involved dozens of court hearings, a weeklong jury trial, two appeals and a second trial, at a cost of hundreds of thousands of dollars is finally over, and the owner prevailed. While this lawsuit occurred […]
Know your state law to better assess risk
The recent Illinois case 1324 W. Pratt Condominium Association v. Platt Construction Group, Inc. reminds contractors to be mindful of state policy considerations which may affect their risk assessments when constructing condominiums or high profile projects. Read More……
25 years of condo law, and communal fruit
This month, I celebrate 25 years of practicing “condo” law. I would like to say that I have seen it all, but I probably have not done so. After all, I have practiced on the west coast of Florida. I have no idea what Miami would be like, and I do not want to know. […]
New Maryland Towing Law Immediately Impacts Community Association Towing Procedures
As of October 1, 2012, community associations throughout the state of Maryland must comply with new towing laws prior to towing or removing a vehicle from association property. The new towing laws affect all Maryland associations that have more than three common area/common element parking spaces. Read More……
AL: Homeowners’ associations face scrutiny
A state task force is looking into homeowners’ associations and whether they’re too restrictive. One Montgomery resident says he knows the issues firsthand. Read More……
Recovering Attorneys’ Fees in HOA Election Disputes
The California Court of Appeal’s recent ruling in a case underscores how crucial it is for HOAs to strictly comply with the Civil Code’s election procedures and requirements. The court in That v. Alders Maintenance Association (2012) applied Civil Code § 1363.09 to hold that a HOA’s attorneys’ fees and costs are generally not recoverable […]
AZ: Class Action Filed Against AZ HOA Management Companies
Class Action Lawsuit Filed by Arizona Homeowners Against Arizona HOA Management Companies Alleging Millions of Dollars of Damages for Violations of Federal Debt Collection Laws and Arizona Law Read More……
Australia: Whole new storey: strata laws with less red tape, more people power
There’s a saying in politics that you don’t ask a question unless you know the answer. A discussion paper released at the weekend by the Fair Trading Minister, Anthony Roberts, offers almost 70 pages of possible answers for a proposed huge change in strata law. Read More……
Court opinions could change residential lending
The landscape for residential lenders in Oregon and Washington is changing quickly. Three recent appellate court opinions have the potential to significantly impact how residential lenders do business in the Pacific Northwest. Read More……
VA: Community Associations and the Power to Adopt Rules and Regulations: Is it more limited than we think?
Community Associations that have adopted rules and regulations that permit the association to avail itself of the enforcement capabilities found in Va. Code Ann. § 55-79.80:2 or § 55-513(B) should have counsel review the governing documents or condominium instruments, as applicable, in light of an unpublished Virginia Supreme Court order in Shadowood Condominium Association et […]
Indiana AG files lawsuit against three board members of The Harbours
“Today’s lawsuit is the first of its kind under a new state law allowing the Attorney General’s Office to regulate homeowner associations,” said Gabrielle Owens, director of the Homeowner Protection Unit and Licensing Enforcement Unit of the Indiana Attorney General’s Office. “Board members have a fiduciary duty to serve in the interest of those they […]
IL: Amendments to Common Interest Community Assn Act (HOA/POA)
Amendments to Common Interest Community Assn Act (non-condo’s) signed into law August 2012 Read More……
Some Possible Implications Arising From California Supreme Court’s Pinnacle Decision
On August 16, 2012, our state supreme court issued its opinion in Pinnacle Museum Tower Assn. v. Pinnacle Market Development, Case No. S186149 (Cal. Sup. Ct. Aug.16, 2012). The high court found that CC&Rs mandating arbitration between developers and homeowner associations (HOAs) were enforceable under the Davis-Stirling Act and were not unconscionable in nature. There […]
Privity, Shmivity, Says The California Supreme Court – A Provision To Arbitrate Construction Disputes In Recorded CC&Rs Will Be Honored If Not Unreasonable
Arbitration is a matter of consent, right? Because there can be no meaningful consent between a developer that drafts covenants, conditions, and restrictions containing a provision requiring arbitration of construction disputes, and a homeowner’s association (HOA) that doesn’t yet exist, how can the HOA in such circumstances be bound by the arbitration clause? That was […]
Homeowner Associations/POOF!: Strange Procedural Posture Requires Reversal Of $46,300 Fee/Costs Order When Judgment of Dismissal Reversed in Fourth Appeal of Dispute Involving Homeowner and HOA
Well, the fourth appeal in a longstanding mold/water intrusion/infestation dispute between a homeowner and HOA involved homeowners’ challenge to a judgment of dismissal in favor of HOA as well as the lower court’s order awarding HOA attorney’s fees of $37,336 and costs of $8,972. Read More……
Court sides with contractor over subrogation for damages from burst pipe
A federal district judge in Miami has sided with a heating, ventilation and air conditioning contractor against an insurer seeking subrogation for damages paid related to a burst pipe during Hurricane Katrina at a luxury condominium building in Miami. Read More……
Arbitration Decision Coming Soon
On Tuesday, May 29, 2012, the California Supreme Court heard arguments from both sides in Pinnacle Museum Tower Association v. Pinnacle Market Development, in which the Court will decide whether a homeowners association is bound by an arbitration provision contained in its declaration of restrictions (“CC&Rs”). Read More……
AB 1720 Signed into Law Requiring Access to Gated Communities for Licensed Private Investigators for the Limited Purpose of Service of Process
California Governor Jerry Brown recently signed AB 1720 into law. The bill, introduced by Assembly Member Norma Torres, aims at ensuring that state-licensed private investigators are provided access to gated communities to serve process, just as licensed private investigators are able to serve process everywhere else. State law currently ensures that registered process servers are […]
Déjà Vu All Over Again: Political Signs in Community Associations
As reported in the Press of Atlantic City, Anita Carbonara has two signs in support of President Barack Obama in the windows of her Barnegat Township home. The Board of Trustees at the Heritage Point, Ms. Carbonara’s homeowners’ association, wants the signs removed. Ms. Carbonara previously made a request to the Board to allow her […]
For Whom the Bill Tolls: Board Sues AT&T for 18 Years’ Cell-Tower Electicity
Calling AT&T: Why have we been paying your electric bill for 18 years? That’s the question the condo board of The Leonori condominium — where residents include the actor Samuel L. Jackson and former Morgan Stanley CEO John Mack — has put to the telecommunications giant after discovering the building has been paying to power […]
Who Gets Preliminary Notice When Working on A Condominium Complex in Washington?
Over the weekend, a reader sent in an interesting question about Washington’s preliminary notice requirements. The question relates to construction work and materials furnished to a condominium complex, specifically inquiring as to who must receive the preliminary notice on such projects? Read More……
Court Tells Board in Foreclosure Case: The Guy Paid. What Else You Want?
Most condominium boards and their managers and attorneys act in what they perceive to be the best interests of their condo associations. But when one Manhattan board in an arrears foreclosure tried to not let the owner pay, and then tried to not tell the court when it did let the owner pay, the judge […]
Ruling opens door for Sellersburg to annex Covered Bridge
The Indiana Court of Appeals has upheld Clark Superior Court’s 2010 decision that voided the incorporation of Covered Bridge as a town. The appeals court also upheld the lower court’s dismissal of a petition signed by more than 600 residents of the golf community and surrounding rural area who opposed Sellersburg’s proposed annexation of their properties. […]
Fourth Court Upholds Allegedly Obsolete Restrictions Mandating Residential Use Along Blanco Road
On July 13, 2012, the Fourth Court of Appeals of Texas (San Antonio) issued its opinion in a case in which it was asked to determine whether antiquated residential-use limitations applied to a subdivision abutting now heavily-developed and largely-commercial Blanco Road in San Antonio. Read More……
Homeowners Association Found to Have Equitable Easement Despite Lack of Recorded Document
Sumner Hill is a homeowners association in a gated community in Madera County. The Sumner Hill residents historically enjoyed access to a private road that leads to the nearby San Joaquin River. That access was jeopardized when a portion of the Sumner Hill property was sold to an outside developer. The developer first sought to […]
Court ruling could increase liability of individual condo, co-op board members
New Yorkers may become even more reluctant to sit on the board of their condominium or co-op building. A decision handed down by the state appellate court this month could increase the likelihood that individual board members will be held liable for their building’s decisions, the Wall Street Journal reported. Read More……
Ticky Tacky Little Governments: A More Faithful Approach to Community Associations Under State Action Doctrine
Community associations are an innovative solution to a myriad of challenges that arise in the ownership of residential property. They solve collective action problems and fulfill desires in the common pursuit of neighborhood harmony. But when community associations go too far to conform and perfect the neighborhoods they govern, they often intrude on the fundamental […]
On further thought . . . Reversing earlier board decisions
A recent decision of the Ontario Small Claims Court tackles the interesting issue of whether and how condominium boards can reverse earlier decisions in maintenance and repair scenarios. Read More……
HUD charges MN management co. with discriminating against families with children
The U.S. Department of Housing and Urban Development (HUD) announced today that it is charging a Minnetonka, MN, condominium association and its management company, Gassen Company, Inc., with violating the Fair Housing Act by discriminating against families with children under the age of 18. According to HUD’s charge, Greenbrier Village Condominium III Association allegedly maintained […]
Homeowner Associations/POOF!: Reversal Of HOA Award Means Homeowner Survives To See What Happens On Remand
Homeowner Association (HOA)/homeowner disputes seem to be very acrimonious. However, depending on who prevails, there may be fee exposure under Civil Code section 1354 (CC&R enforcement) or Civil Code section 1717 (contractual fee enforcement). But, each side may have to wait until the end of the day–including numerous appeals–to decide who prevails, so that may […]
Foreclosing Lenders Avoid Disaster and Given More Options To Foreclose In Eaton v. Fannie Mae Case
The Massachusetts real estate community has been waiting 8 long months for a decision from the Massachusetts Supreme Judicial Court (SJC) in the much anticipated Eaton v. Federal National Mortgage Association (link) case. The decision came down June 22, and now that the dust has settled, I don’t think there is any question that lenders […]
MAZDABROOK COMMONS HOMEOWNERS’ ASSOCIATION v. KHAN
MAZDABROOK COMMONS HOMEOWNERS’ ASSN v. KHAN MAZDABROOK COMMONS HOMEOWNERS’ ASSOCIATION, Plaintiff-Appellant, v. WASIM KHAN, Defendant-Respondent. No. (A-65-10), September Term 2010 (067094).Supreme Court of New Jersey.Argued October 24, 2011.Decided June 13, 2012. CHIEF JUSTICE RABNER delivered the opinion of the Court. The question in this appeal is whether a homeowners’ association can prohibit residents from posting political signs […]
FL: New Law Eliminates Important Homeowner, HOA Protections Against Construction Defects in Community Infrastructure Systems
HB 1013, one of the most surprising and anti-consumer pieces of new legislation for Florida homeowners and HOAs, was recently signed into law by Gov. Scott. HB 1013 was passed in direct response to the Fifth District Court of Appeal’s decision in the case of Lakeview Reserve Homeowners Association, Inc. v. Maronda Homes of Florida, […]