Originally conceived by John D. Rockefeller Jr., Forest Hill was designed as a vision of suburban unity. But vacant homes and nasty squabbles about how to save the historic community may be tearing it apart. Read the article…………….
Open Board Meetings are not required by Ohio Law, but may be required under the Organizational Documents
Homeowners elect board members at the annual meeting, who are then responsible for making comprehensive business decisions for the association, such as setting the annual operating budget, entering into contracts, promulgating rules, and enforcing restrictive covenants. Because the board has extensive decision making power over the association, owners want to (and also mistakenly believe in […]
Short Sales and Community Associations
A short sale is a common alternative to foreclosure when a delinquent owner owes lien holders on the property more money than the property is actually worth. A short sale can occur prior to the filing of a foreclosure action, but it is still a frequently used alternative to a sheriff’s sale in a pending […]
FHA Has Issued New Owner Occupancy Requirements for Condominiums
As explained in a recent Kaman Report, in July 2016, President Obama signed into law H.R. 3700, the “Housing Opportunity through Modernization Act of 2016.” This law allowed FHA 90 days to issue new regulations pertaining to the owner occupancy requirements when reviewing condominium associations for FHA certification. On October 26, 2016 FHA released Mortgage […]
Dealing with Secondhand Smoke in Your Ohio Home
Every Ohio tenant knows that living in an apartment or condo complex is often challenging, especially when your neighbors’ actions interfere with your life in unpleasant ways. Along with noisy neighbors, secondhand smoke is increasingly becoming a common tenant complaint. Whether you have a respiratory problem such as asthma, are concerned about the health effects […]
Budget Approval Motion NOT Needed at Owners’ Meeting (OH)
As community associations hold their annual meetings, boards should be reminded that for most associations, owners do NOT need to approve the treasurer’s report or annual budget. The majority of association Bylaws provide an outline for the annual meeting agenda, which includes approval of last year’s annual meeting minutes by owners, reports of officers, and […]
Absentee Ballot Voting (OH)
A common misconception about community association annual meetings is that owners may vote to elect board members prior to the annual meeting using an absentee ballot. Absentee ballot voting is not permitted, however, unless expressly authorized by the association’s governing documents. For example, if the association Bylaws (sometimes referred to as the Code of Regulations) […]
Racist/Discriminatory Language must be eliminated from Community Association Governing Documents (OH)
A recent lawsuit was filed against recorders in all 88 Ohio counties to require the removal of racist language from recorded documents. Discriminatory restrictive covenants can found in deeds and governing documents pre-dating the Fair Housing Act of 1968. These restrictions prohibit certain ethnic or religious groups from purchasing property.
Hoarding and Hoarders Must Be Handled With Care
The problems posed by community association residents who hoard are complex and difficult to manage. Boards have to balance the legitimate concerns of residents affected by hoarding, while respecting the rights of residents who hoard, or who are suspected of hoarding. The signs and symptoms of hoarding include foul odors, insects or rodent infestation, dirty […]
In re Jackson (collections – bankruptcy)
The Sixth Circuit B.A.P. holds that the bankruptcy court abused its discretion in awarding sanctions against a creditor for violation of a discharge order in the individual’s Chapter 7 bankruptcy case. The condominium association rescheduled a sheriff’s sale of the debtor’s condominium unit to complete a pre-petition foreclosure. The bankruptcy court found that the association’s […]
Revisiting Condominium Design and Construction Risks: Applying Lessons Learned to a Rekindled Market
Condominium work for developers, contractors and architects is reappearing after being scarce for several years, as leasing becomes less attractive to a maturing class of residential market participants. Condo projects can be attractive work, but are also high-risk. To a large extent, risk has increased as contractual protections have decreased Read the article………….
Summer Time Rules
It is that time of year again in Ohio! The warm weather entices everyone to go outside and enjoy all of summer’s possibilities. With the increased activity on your community association’s property, boards should review their rule booklets to help decrease issues from arising during the summer months. Read the article………….
How to Deal With Board Conflicts
Boards are made up of different people with different personalities and opinions. Ideally, the board should be a group of people who work together efficiently despite differences in opinions. However, the reality is that conflict between individual board members occurs from time to time. When this happens, it is important to remember the big picture […]
Board Members Should Never Use Their Board Position for Personal Gain
Ohio community association board members are unpaid volunteers. Most association governing documents clearly stipulate that the board members “shall serve without compensation” or “shall be unpaid volunteers.” Under Ohio nonprofit corporate laws, board members are required to perform the duties of a director in good faith (known as the duty of care) and in a […]
Tax Facts
In case your board is unaware, virtually all community associations must file a federal income tax return. Associations must file or request an extension on or before March 15. As you prepare to file the association’s 2015 tax return, the board should discuss the filing options with the association’s tax professional. Read the article………….
When do community associations need to vote to roll over surplus funds to the next fiscal year?
In order to avoid adverse tax consequences, community associations should consider conducting a vote to apply surplus funds in their operating budgets at the end of their fiscal year to the budgets for their next fiscal year. Read the article…………
Using Volunteers for Snow Removal Is Never a Good Idea
With budgets being finalized and the winter season approaching, association boards are again faced with the significant and sometimes unanticipated expenses associated with snow removal. In an effort to reduce these expenses, an unwise board may consider using volunteers to perform snow removal tasks around the property, such as shoveling or snow plowing sidewalks and […]
Where Do We Stand on Rental Restrictions? (OH)
The law of rental restrictions is a mixed bag at present. Most attorneys who practice association law believe that to restrict leasing, the declaration of the condominium must be amended, but they cannot agree on the number of votes needed to pass such an amendment, whether 75% or 100%. Read the article………….
Eviction of Adult Children of the Unit Owner for Rules Violations
The Ohio condominium law allows the Association to evict unruly tenants under ORC 5311.19(B). But would this apply to the adult children of the unit owner and would those adult children who are violating the rules be considered “tenants” under the statute? Read the article………………
It’s Time to Communicate Your Association’s Snow and Ice Removal Policy
Unfortunately, snow and ice are a fact of life in Ohio. When temperatures drop and snow starts falling, board members are often faced with questions and complaints about snow and ice removal. To better protect the association from liability and to place more responsibility on the residents, the board should send a newsletter, memo, or […]
“My Pets Are My Family” – Pet Restrictions in Community Associations: Part 1
Pets are, and likely always will be, one of the most controversial topics for community associations. Many people have pets, and those that do often treat the animals as members of their family. The next several newsletters will contain tips for rule making and enforcement for pets on the premises. Read the article…………….
Eye In The Sky: Drone Usage and Rules in Community Associations
Over the past few years, federal, state, and local governments have grappled with the rocketing popularity of unmanned aerial vehicles, also known as drones. The issue has also become a point of concern for some associations as they deal with the challenges and potential benefits of private drone use. Read the article…………..
Lines of Communication: Who Gets to Boss Around the Landscapers?
One of the largest contracts an association often holds is a landscaping contract. Keeping common areas well maintained is one of the most basic association responsibilities. And, of course, one of the most expensive and time-consuming contracts to obtain is a landscaping contract. Finding a professional, well-respected, and affordable landscaper can be quite the task […]
The Bankruptcy Roadblock: How to Protect Your Association
The situation is all too common: The Association has a delinquent owner that owes several thousand dollars in past-due assessments and other fees. The Board took every step it needed to by following its collections policy, placing a lien on the property, and filing foreclosure. As the long foreclosure process comes to a close, the […]
U.S. Supreme Court’s Decision Legalizing Same-Sex Marriage Impacts all Ohio Community Associations
The U.S. Supreme Court ruled Friday that same-sex couples have the right to marry nationwide. The decision of the High Court invalidates gay marriage bans in more than a dozen states, including Ohio. In a 5-4 ruling, the U.S. Supreme Court held that the Fourteenth Amendment requires states to issue marriage licenses for same-sex couples […]
That Pesky Entranceway Sign and Who Takes Care of It?
If you live in a homeowner association, you will most likely enter the community by driving past an impressive sign structure, landscaped and lit up, with a retaining wall or other masonry feature – or some combination of all of these. You dutifully pay your homeowner dues expecting that this feature will be properly maintained […]
No Parking: New Towing Rules in Ohio and Your Association
Recently the Ohio General Assembly passed into law a set of new regulations that seek to clamp down on the practice of abusive towing. The majority of the new regulations affect towing companies and their operations. However, there are sections of the new law that could apply to associations that maintain private tow-away zones. […]
Reservation of Rights
Most community association board members are aware that if a person sustains an injury in the association’s common elements, such as a typical “slip and fall,” and makes a claim against the association for the injuries, the association should be covered by insurance. That is, the association’s insurance carrier should adjust the claim and, if […]
Spring Thunderstorms Bring… Falling Trees
Spring and summer in Ohio often means heavy rains and thunderstorms that cause trees and large branches to fall, sometimes causing damage to property. As a result, many community association board members inquire as to who is responsible for falling branches and trees. The basic Ohio rule is that when a branch or tree falls, […]
Ohio Updates Its Towing Laws
To address complaints of predatory towing practices, the State of Ohio recently enacted updated regulations for towing vehicles from private property. The vast majority of the changes place additional restrictions and requirements on towing companies, but there are aspects of the new regulations that will require action from condominium and homeowners associations to ensure their […]
Elderly Residents Who Need Assistance
Many of our communities started with residents that were baby boomers. Now that population has aged and many community members are past retirement age. Unlike past generations, our residents are choosing to stay in their homes instead of moving in with a relative, into a retirement community, nursing home, or assisted-living community. Read more……..
CAI Best Practices: Ethics
Simply put, when someone is employing ethics, he or she recognizes what is right and what is wrong and is choosing to do the right thing; however, as a great deal of business ethics literature will attest, “the right thing” is not always straightforward. For example, most ethical dilemmas in the workplace are not simply […]
Five-Year Proxies Overcome Owner Apathy
In early November an attorney from our office attended an annual meeting of an association consisting of 44 homes. In spite of the attendance of our attorney, the property manager, the association’s accountant, 5 board members, and 13 homeowners, no business could be conducted in that the association failed to achieve a quorum. Read […]
Every Association Must Complete and File 1099-MISC Forms (OH)
If an association retains the services of an independent contractor, it is important to know when a 1099-MISC tax form must be provided to the contractor and filed with the Internal Revenue Service (IRS). Generally, IRS regulations require that businesses and organizations submit a Form 1099-MISC for any independent contractor paid over $600 for services […]
Understanding Condo Association & Unit Valuation
Quite a few pieces must be in place to ensure no coverage gaps exist in either the condominium association’s or unit owner’s coverage picture. Three questions must be considered by the agent writing the coverage: Read more……..
Is it Time for a “Live and Let Live” Statute?
If you have lived in a condominium or a homeowner’s association, you know that there are rules that we all must follow. These rules are generally about parking, keeping trash cans in the garage, controlling your pets, planting things in the common elements, and keeping the architectural elements the same, from the paint to the […]
How to Handle Reasonable Accommodation Requests
A request for a reasonable accommodation typically presents itself when an owner needs permission to break an association rule in order to accommodate a disability. The Fair Housing Act does require that a community association provide a reasonable accommodation in its rules, policies, practices, or services, when such accommodation may be necessary to afford such […]
Fair Housing and Children: What Board Members Need to Know
The Fair Housing Act prohibits discrimination against individuals based on race, color, religion, sex, handicap, familial status or national origin. The Fair Housing Act applies to community associations in that it prohibits discrimination in the provisions of services or facilities with respect to residential housing. Read more……..
Electronic Voting – What Do Your Documents Say?
Through “electronic voting,” or “e-voting,” association members can take action without attending an in-person meeting and/or without the need for paper ballots. Read more……….
What Does the Term “Owner Occupied” Mean?
I am often asked by my clients to define “owner occupancy.” Some of my clients have leasing restricted communities, and want to know who is an “owner” and who is not for the purposes of enforcing their leasing restrictions.
Understanding the Small Claims Process
Condominium unit owners and lot owners in a planned community are personally liable for unpaid association fees. When an owner fails to pay his or her assessments, the Association may choose to file a collection complaint against the delinquent owner in order to obtain a money judgment against the owner. Read more………
Associations cannot collect charges for damages or enforcement assessments without providing an owner with written notice and granting an opportunity for a hearing
The Ohio Court of Appeals for the Eighth District (the district that hears appeals from Cuyahoga County) recently upheld the rule stating that prior to imposing a charge for damages or an enforcement assessment for violations of the governing documents, an association must provide an owner with notice and an opportunity for a hearing. The […]
Attorney Invoices: To Disclose or Not To Disclose
Can the Board disclose our attorney fee invoices to the general membership in an effort to be transparent? While the motivation is appropriate, and transparency is important to a healthy association, disclosure of the attorney fee invoices may create more problems than it solves. Read more…….
Reserve Fund Uses – The Yes and No
This year’s unusually cold and snowy winter has caused many associations to incur expenses beyond their annual operating budgets. As operating accounts are depleting, associations are trying to think of other ways to cover their operating expenses without having to impose a special assessment. One question that we have received is whether an association may […]