During the slow recovery in the housing market, many community associations are taking more aggressive approaches with foreclosures and rentals to recover delinquencies and gain financial strength. These associations are using their lien rights in order to avoid the issues that arise with bank delays in foreclosure cases, as delays have become the norm in […]
Of Course You Don’t Need Workers’ Compensation Insurance – Or Do You?
We occasionally get questions about whether a homeowners association should obtain its own workers’ compensation insurance, and when we recommend “Yes,” the inevitable question is “Why; we don’t have any employees?” 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 […]
How a condominium association can beat the bank to money
In today’s economy, banks and courts are processing foreclosures at a historically slow pace, evidenced by the New York Times article predicting that it will take close to 62 years for the foreclosures currently pending in New York State to come to a disposition. Generally, when a unit is being foreclosed upon by a bank […]
Reserve Studies: Like a FICO Score For HOAs
A Reserve Study is one part physical analysis and one part financial analysis. For the last 30 years we’ve helped thousands of clients across the country anticipate and prepare for their community’s major repair and replacement costs. Armed with this knowledge they can make accurate disclosures to homeowners and set their monthly dues accordingly. However, […]
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……
How a Condo Board Can Collect Arrears By Using a Little-Known Tool Called DILF
With the recent economic downturn, condominium boards have been plagued by unit owners defaulting on their monthly common charge. With fewer unit-owners paying, boards are faced with the prospect of increasing common charges in order to collect the deficit from those owners in good standing — unless they can collect the unpaid charges. Read More……
The Attorney-Client Privilege: Disclosure of Confidential Information to Property Management Companies in Furtherance of Representation of Condominium or Homeowner’s Associations
Attorneys are not only ethically, but lawfully obligated to keep certain divulged information confidential in furtherance of representing a client. However, issues may arise whereby certain documentation may need to be transmitted to a third party. For example, an attorney represents a homeowner’s association whose property management company is responsible for maintaining records including contracts […]
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……
The Silent Killer
Over the weekend, I was once again reminded of the importance of carbon monoxide detectors. Sadly, it was reported that one person died and a total of nine families were displaced from their apartment complex in Colorado Springs due to high levels of carbon monoxide. Read More……
Honey Bees and Ethics
“When I put the bees in, I knew it probably would be against the covenant, but I knew it was going to be a safe situation and if it wasn’t, I was going to remove them. I was bending the rules, but it’s not like I was raising vicious pit bulls in my backyard. I […]
HOA’s: When you don’t like the rules
If you live in a newer suburban community or planned unit development, you are probably a member of a homeowners association (HOA). It’s also a good bet that you haven’t given your HOA much thought until you have a problem. Since HOAs make and enforce the community rules, it’s smart to understand what you can […]
Condominium Developers Can Require Arbitration for Construction Defect Lawsuits Through Project CC&Rs
The California Supreme Court recently held that the developer of a condominium project may unilaterally impose arbitration on an owners association by recording a declaration of covenants, conditions, and restrictions that imposes mandatory arbitration for construction defects. Read More……
Help with Going Green: Tapping Federal and State Incentive Programs
With the green movement in full swing across the country, it is not surprising that incorporating energy saving and efficient measures has trickled into condominium development. Today, many buildings in New Jersey pride themselves for having a variety of eco-friendly features ranging from green roofs, the use of sustainable materials and recycling on-site. Read More……
Ten Hot (and Cool) Tips
Energy efficiency has become a “buzz word” over the past couple years in New Jersey and more and more gadgets and devices have come on the market that are specifically designed to use less energy. Saving energy does a lot more than just reduce a building’s carbon footprint and toxic emissions, however—going green can save […]
Budgeting and Reserves for Condominiums
Most covenants for condominiums require that the association include as part of the annual budget, an allocation for reserves. Reserves should be set aside for roof replacement, pavement resurfacing, building painting, and any other item of association responsibility with a replacement cost or deferred maintenance expense of $10,000.00 or more. Read More……
They Fought the Lawn and the Lawn Won
In an epic battle between a homeowners association, owners, and a lawn, the lawn appears to be the only winner. Eleven years of ago, Ed and Billye Simmon and their Florida homeowners association began a court battle over a $2,200 bill related to a bad lawn. Probably the association’s cost of re-sodding. According to the […]
Condo board chiefs often make hard choices
Imagine that you have a job that requires you to be an expert in everything from finance to construction and that trying to do your best at this job makes your closest neighbors hate you. Now imagine that you do this for free. That’s the life of a condominium board president. Read More……
Are HOAs Discriminatory… You Decide
Homeowner’s Associations are an enigma in my mind and always have been. We live in a society already governed by laws and rules in so many forms and yet people choose to constrain themselves under yet another set. My recent conversation with a coworker (see my previous posting here) has led me to a deeper […]
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……
Rentals, Yes – Condos, No! An answer to the blogophile’s prayer?
If you regularly check in with the community association social media—blogs, Twitter, Facebook—you cannot miss the group of correspondents who have a decided bias against community associations. It’s not always possible to separate fact from fiction, or personal bias from social concern, but the message is clear—there are many people who don’t like their homeowners […]
Difficult People: How Do You Deal with Them?
How do we as humans deal with people who yell and scream at us or refuse to be rational? You know the type, adversarial, manipulative, inflexible, unreasonable, irrational. For most people, the answer is “We don’t”. If given the choice, most of us choose not to work with people like this. We don’t socialize with […]
How Can Community Associations be Smart with Smart Phones?
As smart phones are being used for a multitude of things, how can they be used in the community association context? One way is to access information quickly. In the middle of a meeting once, I had to get the specific language of a statute. A quick Google on my phone, and I had the […]
The Vicious Cycle of Collections and a Solution: Acceleration!
Situation: On January 10, 2012, your association obtains a judgment against a homeowner for the balance, as of that date, of unpaid assessments, late fees, interest, attorney fees, and costs. In June of 2012, through a wage garnishment, the judgment balance is collected. Success? YES and no. Read More……
Time to Budget for Deferred Legal Maintenance
Now that accounts receivables are finally starting to shrink, many associations are working hard to stabilize their communities’ finances and planning to take care of long-deferred maintenance projects. During this upcoming budget season, boards and managers will be making important decisions about which projects can, and must, be funded next year and over the coming […]
Smoking Bans in Condominiums
Most Michigan residents are familiar with the Dr. Ron Davis Smoke-Free Air Law of 2009; if not by name, then by its radical ban of smoking in Michigan’s restaurants and taverns. It is hard to imagine another law that has changed our daily lives more. The Act, and others like it around the country, is […]
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 […]
Recent HOA News
The Millshaven Property Owners Association is suing Becky Rogers-Peck over the pink playhouse in her yard built for her granddaughter. The Association says the color of the playhouse violates the covenant that Rogers-Peck signed. She has until October 5th to respond. Read More……
Boost reserve funds with cell phone antennas
Savvy Home Owner’s Associations (HOAs) should always be looking to augment their reserve funds without raising fees in the community. There are several ways to do this if you think creatively. Some common strategies include the addition of coin-operated washer and dryers or renting out common area rooms or space for community functions. One thing […]
Before You Start Pointing Fingers….
I recently read an article where a homeowner was upset about her condominium association initiating foreclosure proceedings against her for her failure to pay her assessments. While people may read this article and feel sorry for the homeowner, one should keep in mind that the homeowner failed to appear at court to protect her interests […]
Are Management Companies Under Attack?
In what may become a national trend, two states are attacking the issues of whether certain types of activities routinely performed by management companies amount to the unauthorized practice of law. Read More……
Neighborhood Association Unveils Its Own Library
The Fairview Mews Homeowners Association, representing a neighborhood of about 150 households located off of South Glebe Road and South Walter Reed Drive, has established a Little Free Library, one of about 2,000 of the kind around the globe. Resident Rob Walter read an article on the library movement, and won support of the association’s board […]
Trustee No More
I am thrilled to report that I lost about 20 pounds yesterday. Don’t worry about my health: this was a combination of figurative weight loss and non-biological weight, including files and emotional burdens. On January 19, my three year term as a subdivision trustee finally ended. Wahoo!!! Read More……
Hiring Professionals – A Winning Approach
One of the key questions facing volunteer community association boards is, “When should we hire a professional to assist us?” This question oftentimes will apply to professional management companies, construction professionals, vendors and service providers, accountants, attorneys and Read more…….
How to Appeal to Generation Y?
It was bound to happen, the number of Generation Y homeowners (people born between 1978 and 1993) is beginning to outweigh Generation X and the Baby Boomer generation. With Generation Y making up over 70 million people in the United States and an estimated 32% of those 70 million being homeowners, associations are facing the […]
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……
Board 101: What Are the Duties of a Condo or Co-op Board Secretary?
Time to do the minutes. See? Bet you didn’t know there were board-secretary jokes! What else do co-op / condo board members and residents not know about the position of board secretary? For one thing, he or she is responsible for a lot more than just the minutes. How much more? Hours’ worth! Read More……
The Value of Pre-Construction Planning
The vendor / HOA manager relationship is a unique one in the world of real estate construction. Both parties face challenges and obstacles when it comes to processes, expectations and deliverables. Hiring a competent construction manager can effectively mitigate many of these issues through up-front, preconstruction planning and streamlined communication throughout the project. Read More……
Board 101: What Are the Duties of a Condo or Co-op Board Treasurer?
You might reasonably imagine you know what a co-op or condo board treasurer does. He or she is like an accountant, right? Or, well, maybe a bookkeeper. It’s the kind of thing where it helps to have a degree in finance. Or is it economics? Or accounting? And it’s up to the board treasurer to […]
A list of Do’s and Dont’s for HOA Management:
Customer service. Answer your calls and emails within 24 hours of receipt. Even if you don’t have an answer, let your client/homeowner know that you are working on it. 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……
Rogers Towers: Defeating Homeowner’s Association Claims for Unpaid Assessments in Foreclosure Cases
When is a first mortgagee not liable for any unpaid HOA assessments that came due prior to taking title? Judging solely by the text of § 720.3085(2)(b), it would seem that a first mortgagee that takes title to property through foreclosure or deed in lieu would instantly become liable to the HOA for unpaid assessments […]
Vendor Contracts That Protect You: An Attorney’s Three Simple Steps
Every condo or co-op board will at some point hire a vendor to perform certain tasks or furnish services — possibly exposing the building to liability brought about by vendor actions and/or the terms of the vendor contracts. Boards of directors and managing agents must understand how to properly protect the building when hiring a […]
Cat in condo? OK. Companion dog? No way
The age-old question of which is better, cats or dogs, has landed in federal court in Minneapolis. The unusual issue has provoked a big legal fight between a disabled Minneapolis woman and the board overseeing a condominium where she’s been a longtime resident. 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……
Rules of the Road for Productive Board Meetings
Those of us who specialize in community law spend a whole lot of time at HOA board meetings. Based upon experience, I can tell you that how well a meeting is run can make a world of difference in the amount of business which gets accomplished and whether the interactions at the meeting are constructive. […]