In New Jersey, the United Stated Bankruptcy Court held in In re. Smiley, 569 B.R. 377 (2017) that a Unit Owner/Debtor can modify the Association’s lien and strip off all but the six month super lien allowed under the state’s condominium act.  The facts at the time were that the Association was owed $9,000 for filed liens and another $4,700 that it recognized as unsecured.  At the time of the bankruptcy filing, the monthly assessment was $250.  The fair market value of the property according to the bankruptcy schedules was $142,000, but it was under water because of a $174,000 first mortgage on the property.  Based on these facts the Unit Owner/Debtor claimed, and the court found, that despite the proper lien filings, the Association only had security for $1,500 ($250 x 6 months). Continue Reading Chapter 13 Bankruptcy – Can the Association’s Lien for Unpaid Assessments be Stripped Off? YES

In a 2017 New York case, a dispute arose over what authority the Association had to perform landscaping maintenance on an individual homeowner’s lot (Minkin v. Board of Directors of Cortlandt Ridge Homeowners’ Association, Inc., 149 A. D.3d 723 (2017)).  When the owner refused to pay the assessment for the landscaping services, the Board started assessing fines.  The owner sued the Board.  The New York Supreme Court (the lowest level court in New York) decided that the Board did have the authority to perform the landscaping services on the front lawn and the homeowner was required pay the assessment as well as the fines.  Unfortunately for the Association, there was also a larger issue dealing with the work performed and assessed on the side and rear of the house.  The problem was that the Board and managing agent could not provide backup or evidence for exactly what work was done in each area, and accordingly, the assessments and fines were not upheld in those areas. Continue Reading Know Your Governing Documents

A recent New York Court dealt with an issue on leasing (Olszewski v. Cannon Point Association, Inc., 148 A.D.3d 1306 (2017)).  The Board adopted rules and regulations that placed restrictions on leasing that contradicted relevant portions of the Association’s Bylaws.  The Association then fined the owner for violating these restrictions and the owner sued.  The owner won at the circuit court level and the Association appealed.  On appeal, the Court again ruled in favor of the owner, upholding the trial court’s decision.  Why? Continue Reading Can the Association’s Documents be Contradictory and Still Enforceable?

In Illinois, a Court recently ruled on a Condominium Association’s attempt to charge back an insurance deductible to one of its members (Gelinas v. Barry Quadrangle Condominium Association, 74 N.E.3d 49 (2017)). This particular association had a fire originate in an owner’s unit resulting in damage to not only the specific unit, but the entire building. The Association made a claim with its insurance company and received reimbursement for the necessary repairs to be made. The Association then held a hearing and levied an assessment against the Unit Owner in whose unit the fire originated. Continue Reading Special Assessing an Insurance Deductible Back to a Unit Owner

Our long-time client, a condominium association in Milwaukee that historically faced heavy delinquency issues, was unable to fund its expenses due to very heavy delinquency rates. Among the expenses the association could not fund were its legal expenses. The association owed more than $30,000 in legal fees and costs, but had twice that in collections. The association was unable to make regular payments on their expenses due to a lack of cash flow. Continue Reading What to do When Heavy Delinquency Impacts Cash Flow

A condominium association in Milwaukee has historically faced heavy delinquency issues. Through The Husch Blackwell Condominium & HOA Law Team’s assertive collection methods, the firm collected more than $290,000 in assessments, interest and legal fees for the association since 2013. A substantial portion of the $290,000 resulted from the sale and/or rental of 10 units that became owned by the association. Continue Reading When an Association Owns a Unit – Recouping Delinquent Assessments Through Unit Rental/Sales

At the start of 2012, a condominium association in Waukesha, Wisconsin faced serious collection issues as a result of mismanaged files and accounts by its former property manager and attorney. More than 35 individual unit owners (40% of the owners) were delinquent and the association was owed more than $50,000 in delinquent assessments. Continue Reading Aggressive Collections – A Method that Works

A condominium association in the Milwaukee area was owed more than $2,000 in fines by one unit owner. For more than a year, the unit owner had been fined numerous times due to the same violations of the bylaws which the unit owner refused to correct.  While the unit owner paid assessments monthly, the unit owner ignored the fines and the association’s attempts to demand that the unit owner correct the violations. Continue Reading Unit Owner Bad Behavior – When Fines are Ignored

A condominium association had an owner that was uncooperative, didn’t like following rules and paid assessments on her own timeframe for more than 10 years. In the spring of 2009, another law firm started collection against the unit owner for unpaid assessments by filing a lien on the property.  During the next year and a half, the lien was foreclosed and judgment entered.  In November 2011, the property went to sheriff’s sale. At the sheriff’s sale the attorney for the association opened the bidding at $1 and the property was purchased by a third party for $2.  When the third party spoke with the unit owner, he felt sorry for her and sold the property back to her. Although the association’s attorney sought and was granted a deficiency judgment, the judgment was not collectible because the unit owner was retired and had no assets.  As a result, the association’s debt had increased to more than $22,000, which the association lost due to the purchase of the unit by the third party for $2.  Continue Reading Why Hire an Attorney Who Specializes in Condominium & HOA Law