Some states have statutes that require that Associations provide a notice and opportunity to be heard to a resident before the Association can fine them for a violation of the governing documents. Even though Wisconsin does not have such a statute, providing residents a notice of the alleged violation and opportunity to give their side of the story is an important component of providing due process—which will help make your fines ultimately enforceable.
Continue Reading The Importance of Due Process—What is a “Notice and Opportunity to be Heard?”

IMPRESSION: The ruling in Great Am. Ins. Co. v. State Parkway Condo. Ass’n, No. 17-cv-3083 (N.D. Ill. Sept. 11, 2018), should serve as a cautionary tale to Condo and HOA boards.

DETAILS: In Chicago, a unit owner of a condominium located at 1445 North State Street filed an Illinois state discrimination claim in 2007 against the State Parkway Condominium Association (“SPCA”) for failure to accommodate his hearing disability during SPCA Board meetings.  The SPCA defended the claim under its 2006-2007 Non-Profit Management and Organization Liability Insurance Policy (“policy) issued by Travelers Casualty and Surety Company of America (“Travelers”).

A settlement between parties was reached in September 2007; but six months later, the SPCA sued the same unit owner in an entirely unrelated matter.
Continue Reading “Related Wrongful Acts” Can Exhaust an Association’s Liability Insurance Policy Limit

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

A recent case in Colorado (Tyra Summit Condominiums II Association, Inc. v. Clancy, 2017 COA 73) held an Association trying to amend its Declaration to the strict standards for timing and details contained in state statute. The law in question required a Condominium Association attempting to amend its declaration to send out notice of the meeting at least 10 days in advance, along with the general nature of any amendments to the declaration.

In this case, the Association sent out one notice a month prior to the meeting, but only mentioned that an amended declaration was being drafted.
Continue Reading Compliance With State Laws is Important

In 2018 three separate acts amended Chapter 703 of the Wisconsin Statutes. Chapter 703 is Wisconsin’s Condominium Ownership Act.  The amendments mostly took effect on April 18, 2018, but some will go into effect later in the year.  (For an in-depth review of the actual laws: 2017 Senate Bill 131, 2017 Assembly Bill 518 and 2017 Assembly Bill 818.)

Only a few of the changes will affect most associations, but it never hurts to have an idea of what the legislature spent its time on.
Continue Reading The Good, Bad & Boring – 2018 Amendments to Wisconsin’s Condominium Law

Under the law in most states, and certainly in Wisconsin, the Board of your condominium association controls any changes to the exterior appearance.  This is generally based on a statute that can’t be changed even by the governing documents.  However, things are changing.  Across the country many laws are being passed that require the Board of Directors of various condominium associations to approve certain changes to the exterior.  This can range from artificial turf to solar panels.  In addition, the world is changing relative to emotional support animals, sexual harassment and security. 
Continue Reading 2018 Condo & HOA Issues