Does your condominium or homeowners association (HOA) have owners who don’t pay their assessments?  Owners are finding more excuses to avoid paying their assessments.  Filing multiple bankruptcies, submitting payments with conditional language, NSF payments, claiming they don’t owe since they don’t use the common elements. . .  The list goes on and on.

So how does your association handle these “Sophisticated Debtors”?  Does your Association have a strong written collection policy?  Are your governing documents updated and in compliance with current law?  If not, your association will spend more than you should be in trying to collect unpaid assessments.

To ease the pain and headache of collecting unpaid assessments, make sure your association has:
Continue Reading Dealing with Sophisticated Debtors

When faced with a request by a homeowner or condominium owner to install solar panels at your association, your Board needs to determine a number of things:

  1. Whether there are restrictive covenants or rules that prevent the installation;
  2. What “solar access rights” if any exist under their state’s laws;
  3. What if any restrictions the Association wants and can place on the installation, maintenance, repair, replacement and removal of the solar panels;
  4. Who is paying for any of the maintenance, repairs or removal of the solar panels.


Continue Reading Solar Panels – What Your Association Should Do When Someone Requests to Install Them

Let’s face it, 2020 was rough and not everyone was nice about it.  Hate crimes have increased dramatically over the last six years.  Heightened political tensions have led to family quarrels and neighbor-to-neighbor feuds.  And to top it all off, the COVID pandemic and corresponding lockdowns has made most of us a little stir crazy.

Where does this leave community associations?  Associations have a duty to protect residents from a hostile environment and can be held responsible for the actions of its board members, employees, and residents.  (To learn more on hostile environment and Association liability, click HERE.)

So what’s a community association to do?  GET EDUCATED AND TAKE ACTION!
Continue Reading Education, Education, Education – Overcoming Harassment, Racism and Hostility in Community Associations

Please join Husch Blackwell’s Condominium & HOA Law Team on February 5, 2021, as we outline the NEW 2020 Robert’s Rules, how parliamentary procedure should be used to run meetings more efficiently, some case examples of fine issues that arise and how to solve them, some basic collection reminders relating to death, trusts and mortgages and why your Rules matter more than you think. We hope this will be both interactive and fun while we share the latest information that homeowner associations (HOAs), condo boards and managers need to know. Looking forward to 2021 and making things as straightforward as possible.
Continue Reading Association Academy: Your Rules, Robert’s NEW Rules and Court Rules Relating to Fines

Most condominiums and homeowner associations (HOAs) are nonstock corporations under Wisconsin Chapter 181.  As such their members can make decisions one of three ways:

  1. Holding a meeting;
  2. Action by written consent (181.0704 Wis. Stat.). This may be used unless “limited or otherwise provided in the articles of incorporation or bylaws…”  For an association to act by written consent, the action must be “approved by members holding at least 80 percent of the voting power, or a different percentage, not less than 50 percent, specified in the articles of incorporation or bylaws.”  The written consents must be signed and dated after the date of the last meeting of the members and kept with the minutes
  3. Action by written ballot (181.0708 Wis. Stat.) This may be used “if permitted by the articles of incorporation or bylaws, any action that may be taken at an annual, regular or special meeting of members may be taken without a meeting if the corporation delivers a written ballot to every member entitled to vote on the matter, the ballot sets for the proposed action and provides an opportunity to vote for or against the proposed action.”  “Approval by written ballot … valid only when the number of votes cast by ballot equals or exceeds the quorum required to be present at a meeting authorizing the action, and the number of approvals equals or exceeds the number of votes that would be required to approve the matter at a meeting at which the total number of votes cast was the same as the number of votes cast by ballot.”


Continue Reading Condo and HOA Virtual/ZOOM Meetings in Wisconsin – How Legal Are They?

Facts

In 2016, Plaintiff sent Defendants a letter telling them that the dog-breeding building (“kennel”) they built violated the restrictive covenants of the Texas association.  The restrictions had been recorded in 1981.  The letter stated that the kennel constituted a “noxious or offensive activity.”  Defendants tried sound proofing the kennel in response.  Plaintiff’s then sued seeking a declaration that the restrictions were valid and enforceable.  Defendants pled waiver and abandonment.

Question/Issue for the Court to Answer

Whether or not the restrictions were enforceable.
Continue Reading GOOD BYE: Association Who Fails to Enforce Covenants Loses Right to ENFORCE

Facts

Plaintiffs were two owners (Maples and Brown) at Compass Harbor Village Condominium Association in Maine (the “Association”) who had purchased their respective units sometime in 2007.  The Declarant was an LLC that held more than 50% of the votes (15 of the 24 units) and therefore controlled the board.  For many years the Association common areas were not property maintained in many ways.  In addition, the Association failed to hold meetings, take votes on Association matters, maintain banking or other records and refused to provide financial information to the owners.  The Declarant’s position was that “because it holds a majority of the voting power in the Association and therefore any dispute between it and any of the unit owners would ultimately be decided in its favor.”  Plaintiffs claimed to have lost about $53,000 in value in each of their units because of the actions of the Declarant.
Continue Reading Failing to Maintain and Properly Collect Assessments is a Breach of Fiduciary Duties

Does your Association have rules that target children?  Does your Association have rules that apply differently to children and adult residents within the community?  The following case is a cautionary tale for Condominium Associations and HOAs—repeal those rules now, or potentially face a losing battle pursuant to federal law.

Facts

In a federal district court case from early 2020, a homeowner brought suit against his HOA alleging that the Association’s rules with respect to use of the tennis courts, the pool, and clubhouse were discriminatory.  The tennis court rules stated that adults had court privileges over children after 3:00 PM on weekdays and any time on weekends and holidays.  The pool rules stated that residents 14 through 18 years of age were limited to one pool guest per person, while adult residents were permitted to have up to 6 pool guests at a time.  The clubhouse rules stated that it was reserved for adult use only during summer months while the pool was open.  The homeowner claimed that these three rules discriminated against families with children (also known as “familial status”), which is prohibited by the federal Fair Housing Act (FHA).
Continue Reading Rules that Target Children Really Target Your Association (for Discrimination Lawsuits)

I recently read an article on the difference between condominium and homeowner association officers and directors by an attorney out of Ohio, Jennifer B. Cusimano of Kaman & Cusimano, LLC.  It was well written, clarified a subject that is often confused, and inspired me to do my best to explain the difference to our readers.

In simple terms, directors are elected by the owners, officers are NOT.  Officers are elected by the Board of Directors annually. 
Continue Reading What is the Difference Between Community Association Directors and Officers?