Walsh v. Hawthorn Hills Owners of Rochester, Inc. 2023 WL 4144757, Not Reported in N.W.Rptr (Michigan, 2023)

What you need to know:

  1. A new construction project (street lights) can be a general and recurring expense and therefore fall under the annual budget.
  2. The key to determining whether something is or is not potentially part of the budget is what is provided in the association documents. 

Continue Reading Can a New Capital Project be Paid by Annual Assessments – YES

Recently, Attorney Naomie Kweyu Husch Blackwell LLP, scored a huge bench trial win in a southeastern Wisconsin circuit court on a foreclosure and money judgment action.

Summary

If you want the best chance of collecting outstanding assessments, late fees, interest and attorney fees, you need to be organized, have a collection policy and follow your documents. Doing so can make a big difference to your association, as one of our clients recently learned – read more below:Continue Reading Association Successfully Recovers ALL Attorney’s Fees From Unit Owners Who Refused to Pay Attorney Fees

Thank you to all who attended the Husch Blackwell Condominium & HOA Law Team virtual Association Academy on March 25, 2022.  We covered what’s new with the Fair Debt Collection Practices Act (FDCPA), collections and the new mortgage underwriting requirements..  No need to worry if you missed it, we recorded it for you, and you

Facts

Association Board adopted a resolution that unit owners in the Association who self-rented but did not join the rental pool would need to pay 20% of their rental income to the Association because the self-renters “did not contribute financially for the extra expense of their leasing activity or for the beneficial services provided by the rental pool.”  The resolution also 1) disallowed future self-rentals; and 2) grandfathered in the current self-renters.

The Suit

Claims

The Association sued the self-renters seeking a declaration that its resolution disallowing future self-rentals and imposing a rental fee was enforceable.  The self-renters counterclaimed alleging: a) breach of contract; b) injunctive relief; c) that the resolution was arbitrary and unenforceable; and d) that the Association was improperly allocating certain fees on the self-renters.
Continue Reading Fees for Self-Renters Who Don’t Enter the Rental Pool are Legal

Thank you to all who attended our virtual Association Academy on September 17 – If it Weren’t for the People, Association Living Would be Perfect.  No need to worry if you missed it, we recorded it for you, and you can access at any time.

To access the recording click HERE. We outline some

Please join Husch Blackwell’s Condominium & HOA Law Team on September 17, 2021 as we outline some frequently encountered legal challenges and issues that can prove time-consuming and costly when mishandled.

Topics

  • Condominium legal document review
  • Collections from a debtor’s perspective
  • Handling disruptive unit owners and residents
  • Arbitration
  • Hoarders and foreclosures
  • Rentals and smoking
  • Construction issues]

Continue Reading Association Academy: If it Weren’t for the People, Association Living Would be Perfect

Facts

A unit owner stopped paying assessments.  The condominium association properly recorded and perfected a lien against the unit for those assessments.  Under the applicable Oregon statute, the condo association lien is prior to all other liens, except tax liens and a first mortgage or deed of trust.  An exception exists, such that the condominium association can gain priority over the first mortgage if (among other things) “the association gives the first lienholder formal notice of the unpaid assessments, and the lienholder ‘has not initiated judicial action to foreclose the mortgage * * * prior to the expiration of 90 days following the notice[.]’”  In this case, five days after the association recorded its lien, the bank filed a judicial foreclosure action against the unit, but did not name the association as party, and therefore the foreclosure suit would not have terminated the lien rights of the association.  To correct this issue, the bank filed an amended complaint naming the association as a party.  Five months later the trial court issued a dismissal of the claim against the association, without prejudice, for failure to prosecute.  Five months after that the association sent the bank notice of the unit owner’s default on assessments.  The bank took no action in the next 90 days to reinstate the dismissal or file a new action against the association.
Continue Reading Lien Priority Statutes and Why They Make Sense

Please join Husch Blackwell’s Condominium & HOA Law Team for this informative seminar. We’ll review fine collection, common zoning regulations and practices, the importance of cyber insurance, and recent updates from the Department of Housing and Urban Development on emotional support animals.
Continue Reading Association Academy: Condo and HOA: Zoning, Cyber Crimes, Fine Collection, and Emotional Support Animals