Although fees for document disclosures may seem too high, the time and effort to litigate may not be worth it.
Continue Reading Fee Limits for Statutory Mandated Documents – How Much Can the Association Charge?
Always have an attorney fees provision in your association’s governing documents, even if the association is entitled to them under the law.
Continue Reading Attorney Fees and Associations
Montana Developer of three condominium-hotels at Big Sky Ski Resort sold units subject to Declarations that required “all unit owners to use [Developer], or an agent designated by [Developer], as their exclusive rental agents,” when renting out their condominiums. The Declarations also provided that “Unit owners may decline to renew the rental management contract with [Developer] after three years, but only if 75% of unit owners vote to end the contract with [Developer].” Of course, Developer also owned all of the commercial units, which constituted 22% of the voting units, and several residential units, practically making it impossible for 75% of the unit owners to do anything that the Developer didn’t want.
Continue Reading Claims for When Developers Have TOO Much Control of Association
Insurance policy language generally insures only what the condominium documents provide, not what state laws require. Having insufficient insurance can cost associations LOTS.
Continue Reading Insufficient Insurance Costs Association LOTS!!!
You read that right. Chickens. Are they pets or are they poultry? Depends what your governing documents say.
Continue Reading Chickens and Covenants
While many states have strong protections for private property, Associations can adopt architectural guidelines.
Continue Reading Association Can Adopt Architectural Guidelines
Developer recorded a Declaration in 2001 for the 260 Jamie Lane Condominium Association (“Association”) consisting of nine units in what seemed to be one building, with an allocation of the percentage interests based on the square feet of each unit. Like most Declarations, it provided that “[e]ach Unit Owner shall pay his proportionate share of the Common Expenses … in the same ratio as his percentage of ownership…” with corresponding lien rights if the payment was not made. The Developer sold five of the units in 2001 upon apparently completing a building within the Association. The Developer filed an amendment to the Declaration and Plat which stated that the building where the five sold units were, was complete and describing “the proposed units for a different building to be constructed on Lot 1.” The Developer continued to own the four uncompleted units. The Association at some point began assessing the Developer for the four unbuilt units, and when the Developer refused to pay, the Association placed a lien on the unbuilt units.
Continue Reading Developer Liable for Assessments on Unconstructed Units
Does a homebuilder need Association approval of its plans? NO, unless the condominium documents require it.
The plaintiff was the builder, Canyon Custom Home Builders (“Builder”). The defendant was Somerset Condominium Association, Inc. (“Association”). The Builder wanted to construct on eight vacant lots/units. The entire Association consisted of 37 units. Although some units could have single family homes on them, the Builder lots/units were designated for multi-family buildings. Under the condominium documents the Board was empowered to take various actions, including “to create certain rules for the ‘maintenance, conservation and beautification’ of the Condominium property and the health, comfort, safety, and general welfare’ of the Condominium property’s occupants.” In 1997 the Association approved an Architectural Control Committee (“ACC”), with the minutes of the meeting reflecting an intent to amend the declaration. The Board did not amend the declaration to reflect the ACC’s adoption. In 2012 the Association amended the ACC Guidelines. The Builder, because the declaration had not been amended, argued it could build whatever was not expressly prohibited by the declaration. The Association argued that the Builder was seeking to construct multi-family buildings and the 2012 Guidelines are entitled “Guidelines For Single Family Homes and Lake Front Condominium Remodeling and New Construction.” Builder was not looking to build either single family homes or lake front condominiums.
Continue Reading Architectural Control Through Rulemaking Authority is Proper IF YOUR DOCUMENTS ARE PROPERLY WRITTEN
Many condominium and homeowners associations (HOAs) have an architectural control committee (ACC). Oftentimes, the Board of Directors assumes the role of the ACC rather than having a separate committee. Where the governing documents give the Board/ACC discretion over proposed architectural/exterior changes within the association, what are the limits to that discretionary power?
In a recent court of appeals case from the fall of 2021, intervening homeowners who were neighbors to a home subject to years-long litigation with the HOA appealed a trial court’s dismissal of their attempt to intervene. These homeowners were disgruntled because they did not like the settlement that was ultimately reached between their neighboring homeowners and the HOA.
Continue Reading Architectural Control and your Community Association—Limits on the Discretion of the Board
Seaside is an 80-acre development in Florida. In the 1980’s the developer recorded declarations for nine separate neighborhood associations. The language in each of the declarations are identical, providing the association with “the right to enforce, by any proceedings at law or in equity, all restrictions, conditions, covenants, reservations, liens and charges now or hereafter imposed by the provisions of this Declaration.” In 1991 the nine neighborhood associations amended their declarations and formed the Seaside Town Council (“Manager”) to “[a]ssume management of the administration and operations of the Association.” Sometime thereafter the developer amended the Manager’s code and acted unilaterally to operate the architectural review committee of the associations in violation of the Manager’s code. In 2011 the nine associations then voted to have the Manager file a lawsuit against the developer to protect their rights and to “assign “to Manager” the right to otherwise prosecute this lawsuit on their behalf.” The Manager then sued the developer for various alleged violations of the declarations. The developer answered the complaint.
Continue Reading Association Can Assign Enforcement Authority to a Manager