What you need to know: In some States amendments to a HOA declaration that was not reasonably foreseeable is not enforceable. 

MacLeod v. Mogollon Airpark Inc., Not Reported in Pac. Rptr., 2023 WL 2582622 (Cal. 2023)

Issues:

  1. Was the CC & R amendment prohibiting occupancy of certain guest houses to less than 4 months a year? 
  2. Was the owner entitled to attorney fees for winning the appeal?

Continue Reading An HOA Amendment that was not Reasonably Foreseeable under the Original Declaration may not be Enforceable Without the Consent of 100% of the Owners

Facts

The plaintiff, Jody Goldstein, was beaten and robbed, resulting in serious, permanent injuries while staying as a guest at the Chateau Orleans, a combination hotel, timeshare, and condominium facility located in the French Quarter in New Orleans.  The defendant, Leisure Management, Ltd. maintained and operated the Chateau.  Upon arriving at the Chateau, the plaintiff informed management that there was a large crack in the center of the door to his unit.  The manager on duty told Mr. Goldstein that the door would be replaced, but it never was.  Further, there were no staff members or security personnel present at the Chateau at the time of the break-in.  The only security measures the management company had in place were cameras, a gate to access the property, and spike-topped gates around the Chateau.
Continue Reading Managers of Condominiums Who Know or Should Know of Security or Safety Concerns May be Required to Engage in Enhanced Security Measures

Facts

This case involved a dispute between the owner/operator of a golf course and the owners of adjacent property in a residential community.  Originally all the land was owned by one entity, that then sold lots overlooking the golf course at a premium.  The deed for the property in the residential community described the property by reference to the lot and the recorded subdivision plat that included a map of the subdivision depicting a golf course.  The plat map was recorded with the county.  The developer later transferred the golf course to another entity.  The purchaser, CE, was losing money on the golf course and proposed to develop the land.  The adjacent property owners sued.  The property owners and CE filed cross motions for summary judgment.
Continue Reading Implied Easements – Can You Prohibit a Neighboring Property Owner from Changing the Use of its Property?

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)

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

Facts

Plaintiff, O’Donnell, bought his condo in 2012 and sold it in 2019.  Beginning in 2013, O’Donnell missed various assessment payments.  In late 2013 the association filed a lien, and in 2018 the association commenced a foreclosure action.  To bring the lawsuit to an end, O’Donnell sold his unit.  The sale allowed O’Donnell to pay off the claimed past due assessments and attorney fees.  At the time of sale, he paid $23,342 to the association and $22,234.94 to the attorneys which brought the case to an end.  Plaintiff then filed suit against the association’s law firm alleging violations of the Fair Debt Collection Practices Act (“FDCPA”) by filing a foreclosure suit without legal authority.  Specifically, O’Donnell alleged the law firm failed to satisfy several of the prerequisites to proceed with a foreclosure suit against him.  Both parties moved for summary judgment.
Continue Reading Attorney Fees – FDCPA Violation – Failure to Follow Association Document Procedures

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

Facts

Plaintiff, Ms. Carmichael, is on the board of directors of Commerce Towers Condominium (“Association”).  On the board with her is Mr. Frese and Mr. Vickers.  Mr. Vickers, Mr. Frese and Mr. Tarantino are the officers of the Association. (collectively “Officers”).  All three are also the officers of Tarantino Properties, Inc. (the “Management Company”). Carmichael and other unit owners (collectively “Owners”), individually and on behalf of the Association, sued the Officers and the Management company for breaches of fiduciary duties and for unjust enrichment because the Officers caused the Association to provide for the maintenance and preservation of property that was not part of the Association (the retail space of the buildings).  The Officers and Management Company asserted that the Owners did not have standing to sue on behalf of the Association (a derivative suit).
Continue Reading Self-Dealing by Director is a Breach of Fiduciary Duty (Case 2)