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

The Garrett’s purchased their property in the HOA in 2001.  The CCR’s required an owner to obtain the approval of the architectural control committee (“ACC”) before doing any construction on the property.  The Garrett’s submitted plans to build a pool in their backyard, but the original plans were rejected by the ACC because the plans “were too vague and because professional plans are required for such a large project.”  The Garrett’s then resubmitted professional plans for the pool only which the ACC approved.  When the Garret’s built the pool, the pool equipment was on the common element and they built far more than just a pool.  The Board sent the Garrett’s a cease-and-desist letter, and after an executive session advised the Garrett’s to move the pool equipment within their property and return the common element to its original condition (they had lowered the height of a fence).  Although Mr. [Brett] Garrett attempted to engage a board member in a conversation, the board member advised that “he would not meet with the Garretts … [and that he] would discuss the matter only in the company of the board at a proper meeting.”  In reality, the Garret’s project “had blossomed into a complete backyard renovation with retaining walls, stairs, a drainage system, patio pavers, and planter beds,” none of which were part of the approved plan.
Continue Reading Building in HOA Common Area – MUCH More Costly Than Owner Thought (Because of Association Attorney Fees)

Attorney Daniel Miske was recently quoted in a Community Association Management Insider Article, “‘Continuous Operation’ Language Declaration Requires Association to Keep Lift Working“:

Lessons for Community Associations

Associations would be wise to review their governing documents to determine whether the documents impose similar strict obligations.

“If the declaration and bylaws put a duty

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

Many of you may have seen the June 7, 2021, Milwaukee Sentinel story about a Milwaukee area home that was flying two flags: one the US flag and the second a Pride flag.  According to the story, the owners were told to take down the Pride flag because the association only allowed the US flag.  The residents, one of whom was a board member, “decided to adhere to the rules and take the flag down” but then installed “a bright display of rainbow-colored Pride lights to highlight the house.”  The story tells us that the residents had no intent to become adversarial, that they “don’t feel targeted or attacked in [their] community” but rather to illustrate with humor ways to get around rules.
Continue Reading Seeing Injustice is Easy – Solving Problems is HARD

Facts

In 2016, a Master Association adopted seven amendments to its declaration.  The amendments addressed the Master Association’s authority to approve proposed uses of certain buildings, increased assessments on them, and imposed additional restrictions on those buildings’ tenants.  In response, the building’s prior owner (“Building Owner”) filed suit against the Master Association and eight individual directors and officers, seeking six forms of relief: (1) a declaratory judgment concerning the legality of the amendments; (2) damages for tortious interference with a business relationship; (3) damages for breach of fiduciary duty; (4) an accounting; (5) a temporary injunction; and (6) a permanent injunction.
Continue Reading Amendments to Condominium Documents MUST be Reasonable to be Valid

Facts

The property was subject to a discriminatory restrictive covenant recorded in 1953 that stated: “No race or nationality other than the white race shall use or occupy any building on any lot, except that this covenant shall not prevent occupancy by domestic servants of a different race or nationality employed by an owner or tenant.”  In 2017 Plaintiffs obtained the property by deed referencing that the deed was subject to covenants.  Plaintiff then filed suit to “have the discriminatory restrictive covenant declared void and to ‘strike that same subsection from public record and eliminating it from the title of the property.’” 
Continue Reading Covenants that Discriminate on Race – ARE STILL A PROBLEM

Facts

Defendant, Castletown Corner Owner’s Association, Inc. (“Association”), had a duty to maintain a lift station.  Specifically, the declaration imposed an obligation on the Association to pay “all Maintenance Costs in connection with” improvements constructed at the Association.  Maintenance costs are then defined as “all of the costs necessary to maintain the … sewers, utility strips, and other facilities … and to keep such facilities operational and in good condition, including, but not limited to, the cost of all upkeep, maintenance, repair, replacement … for the continuous operation of such facilities.”  Plaintiff, owner of one of the commercial units, sued the Association for failing to properly maintain the lift station after an incident where the sanitary lift station malfunctioned and flooded the building with human sewage, which allegedly caused Plaintiff’s tenant to terminate its lease.
Continue Reading Language in Declaration Makes Association Strictly Liable

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