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February 17, 2009     Vol. 6 Issue 4 
In the News Since the Last Issue

Check your state or region News Feed for more stories

MA: Oceanside owners file class action lawsuit
Ten apartment owners at the Oceanside Condominiums, 945 Commercial St., have filed a class action lawsuit against the association's board of trustees....

CA: Neighbors locked in dispute over noise
What is music to Martin Gutierrez is something else to Richard Alvarez - it's a crime....

CA: HOA boards must keep finances stable at any cost   Homeowner groups are going through some unusually tough times. This is partly because of the economic times and partly because of rumors and misinformation that association leaders are choosing to buy into....

MD: Officials Upset Homeowner Associations Over Clotheslines  Frederick County state representatives are promoting energy efficiency, asking residents to make use of their backyards to dry clothes, but it's a move that's stirring up controversy with homeowner associations....

IA:Property management, police feeling positive about security at Broadway Condo
Both property managers and police said that placing security guards at a southwest Iowa City condominium complex has been a successful move...

GA: Condo flood fix may fall short
A project to prevent flooding at the Tinsley Mill Village condominiums just off Lake Peachtree is endangered...

From Fannie and Freddie, Here Come the Fee Increases   It may not be what home buyers, sellers and refinancers want to hear, but they need to know: Fannie Mae and Freddie Mac are ratcheting up their mandatory fees and toughening credit score and down-payment rules as of April 1....

Lawyers Face High Learning Curve During Real Estate Crisis  In Massachusetts, for instance, foreclosures on condominiums outnumber those on single-family houses, which triggers problems for owners of nearby units and condo associations...

FL: Buckley Towers wins $20M verdict
A Miami jury on Friday awarded Buckley Towers homeowners $20 million in their claim against global insurance giant QBE Insurance, one of the largest condo insurers in Florida....

WI: Wisconsin Tower condo group sues developer   The group says City Real Estate owes $46,464 to make up for a shortfall in the association's 2008 budget that covers maintenance expenses at Wisconsin Tower...

NV: Lawmaker Looks to Close HOA Loopholes
The sweeping FBI political corruption probe into homeowner's associations sent shockwaves throughout the Las Vegas valley last year....

PA: Warminster woman stole $100,000 from Warwick organizations  Karen Conden, 35, of Wellington Drive, Warminster, used her position as a secretary/bookkeeper to steal money from the accounts of the condominium association for Warwick Commons Industrial Park...

NC: Slow Thy Neighbor  In December, the River Hills Homeowner's Association installed a radar sign paid for with neighborhood dues....

CO: The bigger the HOA, the bigger the fight?
In the past year, five officers resigned from the board of the Woodmoor Improvement Association. Some cited disgust with the petty politics they endured. Others described frustration over constant bickering, personality conflicts and ugly personal attacks....

NY: SCWA plan targets private communities' fire hydrants  The Suffolk County Water Authority plans to create an incentive system to encourage private communities to upgrade their water systems...

AZ: Sen. Harper's helpful advice: Just 'get a life'
Say what you will about the Arizona Legislature, but you've got to appreciate the willingness of our public servants to, well, serve. To set aside their own interests and ambition so that they may travel to the Capitol for half of every year in the hope of mak...

TX: Condo owners smell something wrong with gas bills  After getting brushed off, they learn spiking bills were result of improper meter reading....

MD: Pikesville man who menaced neighbors is sentenced  Residents of a pricey condominium complex in Pikesville can sleep easy...

NV: Foreclosure Crisis Hitting Condo Renters
The foreclosure crisis is now affecting condo renters. In North Las Vegas, tenants at big condominium complex are getting foreclosure notices directly from the developer's lender...

CA: HOA Fees Going Up
Your neighbor's foreclosure could affect you too especially if you live in a gated community or condominium complex. Experts say when fewer people are paying for community costs, there may be increases in homeowners association fees....

TX: BEFORE: Colony Lakes subdivision entryway AFTER: Board enacts major face lift
Robin Elackatt, president of the Colony Lakes homeowners association, and fellow board members took action in January to improve the appearance of one of the subdivision�s major entryways in response to resident concerns...

LA: Elderly condo residents may have to go without power   They say they can't afford special charges for repairs, and their condo manager says if they can't pay, the seniors may end up living in the dark....

FL: Some drywall issues were quietly settled
Complaints about sulfur in Chinese drywall have been quietly settled for at least three years in Florida, according to an attorney who represents homeowner associations....

Miss Manners | Darn it anyway, it's another meeting   DEAR MISS MANNERS: At a condo association meeting consisting of about 60 people, there was a head table with six people, facing about six rows of tables, about 5 feet away. In the front row were two ladies - not sitting next to each other - doing their needl...

AL: Condo buyers wield RICO
In battling developers on behalf of disgruntled condo buyers, lawyers along Alabama's coast have unleashed an array of legal strategies....

CO: Cartoonist takes a biting look at HOA drama  For two weeks, Peters looked at HOAs from the perspective of his canine character, Grimm, and put a satirical spin on life in HOA neighborhoods. (Peters also managed to slip in clever riffs on George W. Bush along the way.)...

VA: Manager sentenced for fraud
Six years ago, Jeffrey S. Koger was a successful business owner and the manager of more than 100 homeowners associations throughout the state, including several in the Fredericksburg area....

NY: A Condo Toughens Its Stance and Tightens Its Belt  GALVANIZED by a rash of arrears, the St. Tropez - a 34-year-old 301-unit condominium on East 64th Street and First Avenue - scrambled into battle station mode last year....

AZ: Villas East HOA, residents battle over changes  Some Villas East homeowners are seeking outside advice on how to stop proposed changes to the CC&Rs and to halt a $3,000 assessment for new heating and air conditioning units that was imposed without their input....

NV: Residents blame roofers for condo fire
A fire at a condominium complex in Summerlin has left over a dozen people without a place to live....

IL: Marina City Web site draws board's anger with slate of news, scandal   Like any news enterprise, the site, run by one of Michalak's tenants, Steven Dahlman, has its critics. The most vocal are the members of the condo board, a favorite target for the site....

GA: Carbon Monoxide Sickens Condo Residents
A mother and child were taken to a local area hospital after extremely high levels of carbon monoxide spread throughout a condo Friday morning...

FL: Nearly 9 Years Later, Pebble Creek Turf War Still Entrenched  After years of hearings, a weeklong jury trial, two appeals and costs running into the hundreds of thousands of dollars, a ruckus over who should pay to sod a lawn in a deed-restricted community is back to square one....

AZ: Bid to aid homeowners is ruled unconstitutional  The Legislature's attempt to provide homeowners with an inexpensive way to challenge their homeowners associations has been declared unconstitutional by a Maricopa County Superior Court judge....

AZ: Hundreds will be without water even though bills are paid  Hundreds of people who live at a condo complex in west Phoenix will be without water on Monday even though they have paid their bills....

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New Articles Found on the Web

Therese QuijanoMultiple Chemical Sensitivity Creates Newest Trigger for Fair Housing Accommodation Requests

Multiple Chemical Sensitivity – MCS – though still a relatively new and often questioned medical diagnosis, is surfacing with increasing frequency in requests from apartment tenants and condominium owners seeking “accommodations” under fair housing laws. In broad terms, MCS describes acute sensitivity to a broad range of common substances, both man-made and natural – from paints, pesticides and cleansers to mold, fertilizers, and trees.  In practical terms, MCS brings medical discomfort or distress to its sufferers and headaches to the landlords and homeowner associations asked to accommodate them by making changes in their buildings, maintenance practices, or both.  As with any request for a fair housing accommodation, the base line question for MCS is whether it represents a “disability’” under state or federal fair housing laws.  The answer is unclear, largely because only a few courts have dealt directly with the question and their responses have varied.    Read more


Top Complaints of Board Members and Residents

Everyone loves a Top 10 list and the co-op and condo world is no different. Besides, if Letterman can do it, so can we. With that in mind, this month we’ve got the top ten things that drive board members crazy about their residents and the top ten things that make residents pull their hair and curl into the fetal position. More importantly, we’ve got suggestions on how to put all of those trifling items to rest and help board members and residents find a happy common ground. So let’s get right to the list making, shall we?   Read more


The Next Generation:  Locating New Managers Difficult, But Not Mission Impossible

A property manager’s day often begins at daybreak with a flood of messages and continues at a frenetic pace until evening board meetings. But no two days are alike; each day poses a new challenge. Managers must respond to email messages about dog poop, investigate missing mailboxes, prepare financial documents and negotiate contracts for trash removal while maintaining a cool and collected manner that instills confidence in residents and establishes credibility. For a pay rate that may be less than what they can find elsewhere, managers must have the energy of youth, the wisdom of experience, and the patience of Job. While many find the challenges of property management rewarding, the demands of the field contribute to a high turnover rate and a problem for the management firms that must hire the next generation of property managers. While finding new managers may seem at times like mission impossible, there is plenty of talent out there and it doesn’t take a secret agent to dig it up.  Read more


Richard ThompsonHOA Rule Tone & Texture

Homeowner associations (HOAs) are the fastest growing form of home ownership in America. In metropolitan markets, they can account for over 2/3rds of all new home construction. As more buyers choose this form of housing, condos and planned communities are becoming a dominant force to be reckoned with. HOAs are quasi-governments that collect mandatory fees to pay for services and enforce architectural standards and rules in the same way that any government can. Like other forms of government, if you choose to live there, opting out of fees and controls is not an option. When you buy into an HOA, you automatically agree to be subject to its authority.   Read more


Rules and Regulations: Serving a Purpose

Rules are one of those necessary evils of life. Our society could not function without them. Just think of the problems and chaos our civilization would endure without rules. Rules help maintain an orderly society, spell out what’s expected of us and grant us a sense of safety and security. From the time we are very young, we have rules that our parents set out for us. By the time we enter school, our teachers are adding more rules and as we grow and mature, society piles on rules from driving a car to filing income taxes to applying for a loan. There is no escaping rules. The majority of us realized a long time ago that we either follow the rules or pay the penalty if we don’t. What happens when the rules just don’t make sense, are outdated or worse yet, unenforceable? That is a dilemma many homeowners associations are confronting. I would venture to say that we’ve all come across rules that were so outdated that we were stunned. I’ve even come across rules that were in direct conflict with the governing documents and some that were even illegal.   Read more


How to Protect Your Community Association From Fraud

The movie Catch Me If You Can, describing the (seemingly) exciting life of former, professional fraudster, Frank Abagnale, increased public awareness about fraud, including identity theft and embezzlement.  While Hollywood often chooses to glamorize the unglamorous, the reality is that fraud hurts many people, and it is present even in our own industry.  Read more   (PDF)

Avoiding Fraud in Your Association

Fraud takes motivation and opportunity. If both are not present, fraud cannot occur. The board of directors cannot control the motivation; that comes from the fraudster. The association board can , however, control the opportunity. In the tight economic conditions that now exist with foreclosures, tight credit and job layoffs, every board needs to be diligent in watching and guarding association moneys. Most of the typical fraud types and characteristics discussed by the fraud experts do not apply to common interest developments since their revenue stream is very predictable and the volume of expenses is small. This is the main reason that the annual CPA review engagement is usually sufficient for associations and an audit is not necessary. The board on a monthly/quarterly basis can compare the revenues and expenses to budget and to the prior year and get a pretty good feel whether the financial reports are reasonably correct.   Read more


Law Lesson 4:  The Case of the Incomplete Condo

Promises made in the offering plan had been broken. The floors were not solid oak but "engineered wood," heaters didn't work properly, door knobs were missing and exhaust fans were causing vibrations. How did it happen? Blame it on the contractors of the posh new six-story condominium building at 88 Washington Place in Greenwich Village — and also, to a lesser extent, on the well-to-do but mostly first-time homeowners.   Read more


Bringing in a New Board:  Inheriting a Mess

In managing the affairs of a building or a community, all board members are far from equal in their abilities and skills. Some bring experience in construction or a background in law, finance, or other professions that can be helpful to the board. Some board members bring little insight or professionalism to the group, and are more concerned with personal vendettas, cronyism or other compromising pursuits. It’s an unfortunate fact of democracy that rule by the people means that sometimes the people ruling don’t do such a great job.   Read more


The Right Elevator Service Agreement Minimizes Downtime

Even though the tightening economy is forcing many facility executives to rein in costs, keeping elevators running properly is often a high priority. Doing so requires a comprehensive preventive maintenance program. “Elevators still are mechanical devices, and require ongoing, consistent maintenance to be safe,” says Jack Tornquist, vice president of the elevator consulting group with Lerch Bates. Moreover, an ongoing maintenance program often is required by code.  Read more


When HOAs are Bankrupt or in Foreclosure

Recently, more and more property owners are being forced into bankruptcy because of mounting debts and high mortgage payments. Also, property foreclosures are at an all-time high. And, it's not just individual owners who are taking the hit. Homeowners' associations (HOAs), and the real estate projects they're created for, like a condominium complex or subdivision, can fall into bankruptcy and foreclosure as well. If you're a member of an HOA, you need to know some of things that can happen when HOAs are bankrupt or in foreclosure.   Read more


Condo Trends: Florida Law May Set Trend on Past-Due Fees

Over the past two years in the foreclosure run-up, one of the points of contention in foreclosure contracts has been past-due condo owner association fees left unpaid by the defaulting borrower. Banks, bent on getting out of the property for as little money out of pocket as possible, have paid or not paid delinquent condo fees, depending on their bottom line.   Read more



National News (Continued)

FL: 60,000 bees found outside condo
The cooler weather is stirring up some unwanted tenants in a North Fort Myers condominium tower. Those tenants - 60,000 bees!...

NV: Comstock Park HOA embroiled in lawsuit, election  An election to the Comstock Park Homeowners Association Board of Directors is expected before the fiscal year ends in April, but it's unclear whether it will resolve a tangle of lawsuits over operation of the manufactured home subdivision....

CO: Arvada Woman Fights HOA To Save Tree   The Arbor Green Townhomes Association plans to cut down trees in 23 patio areas starting Wednesday, but Wendy Thoreaux is fighting to stop it....

CO: Tribute to son puts parents, HOA at odds
Sgt. Jason Lewton is still stationed in Iraq, but his parents' homeowners association wants them to remove the display - something Sue refuses to do until her son is home.... 

CT: City derelict on foreclosed medical condo fees  NEW HAVEN - Since foreclosing on a Chapel Street medical office in January 2004, the city has paid $100,000 in condo fees and still owes at least $80,000 on the vacant unit, according to city officials...

VA: Association salaries may be released
Last week, the Virginia House of Delegates proposed a change in the Property Owners Association Act (POAA) to remove the word "aggregate" in a key phrase, which would allow members of community associations to request salary information about individual employ...

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New Audio/Video

TX: Could HOAs hurt the value of your home? (video)  The Lent's story is just one example of how some say HOAs have turned neighbor against neighbor...

Stark & Stark Shareholders Present Seminar to Aid Co-ops and Condominiums in Managing Costs & Risks in Challenging & Uncertain Economic Times - Part 1
David J. Byrne and Stephen M. Lasser, Shareholders in Stark & Stark's Co-Op & Condominium Group, presented materials related to the challenging & uncertain economic tim...

Stark & Stark Shareholders Present Seminar to Aid Co-ops and Condominiums in Managing Costs & Risks in Challenging & Uncertain Economic Times - Part 2
David J. Byrne and Stephen M. Lasser, Shareholders in Stark & Stark's Co-Op & Condominium Group, presented materials related to the challenging & uncertain economic tim...

Talk With CAM 069: 4th Level Government, Chapter 4  Chapter 4 Talk With CAM 69, February 15, 2009 The Fourth Level Of Government, ©CC 2003, Chapter 4 SHOW NOTES Today’s podcast is the forth chapter of a book I wrote in 2003. The book is called ‘The Fourth ...

 

What's New in the Blogs

California Condo & HOA Law

HOAs and Workers Compensation Insurance
Some confusion has apparently arisen about worker's compensation insurance and requirements under the law. I have written articles about the good and common se...

CC&Rs and Rules Conflict, What Controls?
Lots of people wonder about how to set HOA rules, and others wonder about other rule-related things, like this reader who sent this email:

HOA Legi-slate (CO)

Burn-Out Cigarettes Soon to be Law in Colorado
Effective July 31, 2009, cigarettes sold in the State of Colorado will have to meet certain reduced ignition propensity standards, pursuant to legislation passed by the Color...

Will New Foreclosure Deferment Bill Hurt Or Help Associations?
HB1276 requires lenders to defer foreclosures that have been initiated for 90 days if it is determined that a borrower is eligible for a loan deferment.  We can debate w...

California Condominium Law

50 Small Claims Actions
QUESTION: Our homeowners association has a few owners who are constantly suing the HOA. Even though we end up winning, it costs our association many...

New Jersey Law

(See Audio/Video above)

Virginia Condominium & Homeowners Association Lawyer

Insurance/Fidelity Bond Minimum Requirements
Question:  What are the minimum requirements for insurance/fidelity bond for a 10 Unit condominium with $50,000 in reserves and annual receipts $60,000?

Peters & Freedman, LLP

Revised “Notice-Assessments and Foreclosure”
Existing Civil Code Section 1365.1 requires homeowners associations to distribute a form notice in at least 12 point type entitled “Notice-Assessments and For...

South Carolina Community Association Law

A Mechanic's Lien for Mowing, Trimming, Edging, and Street Cleaning?...

Interpreting and Enforcing Restrictive Covenants...

Hyatt & Stubblefield

Keeping Homeowners Informed, Part 2: Protecting Your ASSets

Renters Are Your Friends

Condo Issues

Hang Together or Hang Separately?
Selling a Distressed Common Interest Development as a Single Parcel: Is Partition an Alternative to Losing it to Individual Foreclosures?To view the...

The "Soft-Story" Problem and Earthquake Safety
Another Issue for Condominium Conversions    A recent article[1] in the Los Angeles Times[2] highlights an old problem that may have n...

Utah Condo Law

Get Your Pools and Spas Fixed NOW!

It's Happening Here, Too!

Idaho Condo Law

Service Animals

Dropping Gas Prices, Dropping Trash Prices

Toronto Condominium Law

By-law needed for condos to appeal tax assessment of units In December 2008, the Premier of Ontario said that municipal property assessment...

Live from the 30th Annual Community Association Law Seminar Utah condo lawyer Lincoln Hobbs has been live-blogging from the College of Commu...

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