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Hogg v. Villages of Bloomingdale I Homeowners Association, Inc., 357 So.3d 1271 (2023)

Lessons learned:

  1. An Association can’t seek reformation of a declaration after the applicable statute of limitations has passed – meaning that once the applicable statute of limitations has passed a change to the declaration requires a properly passed amendment.
  2. Before the statute of limitations has passed, a court of equity has the power to reform a declaration where, due to a mutual mistake, the declaration does not accurately express the true intention of the declarant. 

Continue Reading Statute of Limitations Prohibits Association from Bringing Action to Reform Declaration

Wine & Cheese

Governing Documents for Condominium and Homeowner Associations don’t age well. They are not like a fine wine.  They are more like cheap cheese.  Remember, they were likely written by a developer who really only cared about them until it had sold all of its units or lots (assume 10 years or less).  So if your documents were written before 2008, it is unlikely that they have anything in them to deal with:

  1. Emotional Support Animals;
  2. Drones;
  3. Short Term Rentals (AirBnB was founded in 2008 in San Francisco);
  4. Medical Marijuana; or
  5. Unit or Lot Owners buying insurance to cover a large insurance deductibles that could be assessed against them if their actions cause an insured loss.

Continue Reading Our Governing Documents Have Aged Nicely

Insurance

In Wisconsin condominium associations are required to insure all of the property (other than the personal property) of the unit owners. (See, Sections 703.17(1) and 703.02(14) Wis. Stat).  Many unit owners worry (needlessly I would contend) that their neighbors have improved their unit more than they have and then argue that they don’t want to pay the insurance for those improvements.  Ignoring for the moment that those improvements also likely increase the value of their neighbors unit and therefore increase the value of their unit, which they are more than happy to accept, this argument simply misses how insurance companies actually insure condominiums in Wisconsin.  The law requires all of the property to be insured.  The law requires that the insurance be paid as a common expense.  (Section 703.17(1) Wis. Stat).  Accordingly, arguing over who has to insure what, considering the clear language of the statute, wastes both the time and resources of an association.  However, there is something a board of directors can do to increase the insurance it provides unit owners without any material cost to the association.  To adequately explain where these savings can be obtained, I first need to explain how insurance companies currently charge premiums and pay condominium claims in Wisconsin.
Continue Reading Free Money from your Association Insurer

A unit owner sought to expand their unit by building additional living space on the roof of the association. The declaration, like all declarations, defined the various units and their locations.  Unlike many declarations, this one allowed top floor unit owners to expand their units on the roof of the building.  Expanding a unit would, by definition, take common element and convert it into unit space. 
Continue Reading Declaration Amendment – Sometimes There is No Other Way to Accomplish Something