Michigan Condo & HOA Law

I recently heard from a co-owner whose association is considering passing a rule prohibiting dogs in their condo. At present, there is no rule banning dogs and he was wondering if the association has the wherewithal to establish such a rule

Of course this is an impossible question to answer without looking directly at the associations bylaws. For the sake of argument let’s say the bylaws do not limit dogs at this time. Creating such a prohibition will most likely be a lightening rod as people will set up camp at the two extreme ends of either wanting dogs or not wanting them. The association could possibly consider a bylaw amendment, which may require two-thirds of the co-owners to approve it depending upon its jurisdiction; whereas a “rule” can be created by the board of directors and can generally be promulgated by the Board of Directors.

There is much to consider when deciding between creating a “rule” and passing a bylaw amendment. Associations are best advised to consult with an attorney knowledgeable about condominium law before proceeding.

Posted by Robert Meisner at 9:38 AM | Permalink

I recently heard from board members from a condominium association who were inquiring about how various law firms bill out their services. Their experience was that one law firm charged the same hourly rates for all of its attorneys while another law firm had different rates for their attorneys and they were seeking my opinion on these billing methods.

I truly believe that appropriate charges should depend upon the experience, expertise and reputation of the attorneys. If one law firm is charging the same rate for all their attorneys, the question to ask is are all their attorneys equally experienced in the particular area of law needed? More than likely that is not the case and one may be better off hiring a law firm that has varying rates depending upon the experience and length of service of the attorney, even if the hourly rates for some of the attorneys may be higher than the hourly rate charged by the firm who charged the same rate for all of its attorneys. Remember the old adage, he who charges least knows best what he/she is worth.

Posted by Robert Meisner at 5:17 PM | Permalink

I recently heard from a co-owner whose association has several extra parking spaces which the co-owners have been using. The condominium association board of directors has adopted a rule stating that these unassigned parking spaces are for guest parking only. The co-owner wondered if the board could adopt such a rule that eliminates owner’s use of these extra parking spaces.

What the board has to be concerned about in this case is that the rules and regulations are consistent with the Master Deed and Condominium Bylaws. Because the co-owners have easement rights to parking areas designated for vehicle use, a more reasonable rule would be for the Board to designate the area for residents and guests unless there is a specific provision in the bylaws authorizing the Board to make this guest parking. If the future use results in a shortage of owner or guest parking, the directors can modify the rule under its authority to administer the condominium documents. The Board is best advised to get a legal opinion from counsel.

Posted by Robert Meisner at 3:36 PM | Permalink

I recently received an email from a condominium board member whose association is dealing with an issue of what information should be allowed on bulletin boards.
Obviously, many communities have bulletin boards in their lobbies or common areas. Typically, Associations use the boards to post meeting agendas, reminders about upcoming events, units for sale, renovations and other worthy information for members. But letting members post on bulletin boards can cause problems and it is important for the Association to pass community bulletin board rules to prevent bulletin board problems.

These rules should include banning material that may violate Fair Housing laws, banning postings related to illegal or illegitimate activity, banning profane and pornographic material, requiring postings to be approved by the Board of Directors, limiting the size of postings, as well as only allowing the manager to place and remove postings. I would advise any association board to consult with a knowledgeable community association attorney with respect to any rules to be published, especially in relation to making sure Fair Housing Laws are followed.

Posted by Robert Meisner at 4:30 PM | Permalink

I recently heard from a new lawyer embarking on representing community associations who was concerned about the fact that a perspective condominium association client had several Board members who had been antagonistic towards him. He was concerned about how he would handle such a group as clients.

I recently wrote an article for Common Ground Magazine entitled “Advice and Dissent” (click here to read the full article). In that article I spoke about the fact that the attorney actually works for the association as opposed to the board of directors. While it is the board that does the hiring (and firing) of the association attorney, it is vitally important that the attorney realize he or she has a direct responsibility to the association as a corporate entity and not certain individuals within the association or neighborhood community.

In my book entitled Condo Living: A Guide to Buying, Owning, and Selling a Condominium, I talk about the "cast of characters" that one finds on the Board of Directors. Unfortunately sometimes you find Directors who have a great distaste for lawyers and/or do not match up personality-wise with the association’s attorney.

Sometimes some of the best clients are the ones that you choose not to represent just like some of the best real estate deals are the ones that are not made. If one has a “bad” group of Board members to begin with, things could only get worse, unless, of course, the Board changes in composition. It is a business decision that every attorney has to make, but one may be best advised to beg off and let someone else have the hassle.

Posted by Robert Meisner at 5:21 PM | Permalink

I recently spoke with a co-owner who was complaining because her board of directors continually chooses the cheapest contractors who tend to not do a very good job. She was looking for some advice on how to approach her board to not be afraid to spend a little bit of money for a job well done.

My reply is simple. While the Board has a certain amount of discretion in regard to whom they contract and when to make the repairs, that discretion can not be abused when the community is left in a state of disrepair. Co-owners who feel that their association board is being penny wise and pound foolish should contact the Association Board and point out their fiduciary responsibilities in operating the Association in the physically sound manner which results in an improvement of the capitol structure including adequate maintenance and capitol improvements, if necessary.

Absent their favorable response, I would retain an experienced community association lawyer and threaten them with legal action and, if necessary, take such legal action. By trying to save a few dollars by skimping on work being performed, the association board may very well be hurting the longevity and overall well being of the community association. This also applies, of course, to legal and accounting professionals.

Posted by Robert Meisner at 3:35 PM | Permalink