Please join Husch Blackwell’s Condominium & HOA Law Team as we reveal the 10 commandments of what association management “Shalt Not” do while governing. Together, we’ll cover the basics of what homeowner associations (HOAs), condo boards and managers need to know. We’ll also dive into the nitty gritty of assessment collections.

Presenters
Lydia Chartre, Partner, CCAL
Dan Miske, Partner, CCAL
Ketajh Brown, Attorney
Sandra Chapman, Senior Paralegal
Billie Fatheree, Paralegal
Continue Reading Association Academy: The 10 Commandments of Association Management – September 25, 2020

Does your homeowners association have a written collection policy?  What duties does the property manager and/or Board have under the policy?  Learn what role the property manager and/or the Board of Directors should have in the assessment collection process.

Want to learn more about Wisconsin condominium and HOA law from experienced condo and HOA

The law does NOT require a Board to extend additional time to owners to pay assessments just because of the COVID 19 pandemic.  While such policies may show a concern for members of a community, probably without realizing it, those policies may also have significant adverse effects on the Association, especially in 2020.  What

The law does NOT require a Board to extend additional time to owners to pay assessments just because of the COVID 19 pandemic.  While such policies may show a concern for members of a community, probably without realizing it, those policies may also have significant adverse effects on the Association, especially in 2020.  What

The COVID-19 Pandemic has created a global economic crisis impacting individual unit and home owners, and the associations they comprise.  An unfortunate result will be an increase in bankruptcy filings.  Learn how to prepare and protect your Association now.

Want to learn more about Wisconsin condominium and HOA law from experienced condo and HOA

First, I want to thank Julie Howard and her firm NowackHoward in Atlanta, Georgia for much of this Blog (adjusted for Wisconsin Law and my commentary).  She is the former president of the College of Community Association Lawyers (“CCAL”), an excellent association attorney, and has been kind enough to allow Husch Blackwell to use much of their article.

The law does NOT require a Board to extend additional time to owners to pay assessments just because of the COVID 19 pandemic.  While such policies may show a concern for members of a community, probably without realizing it, those policies may also have significant adverse effects on the Association, especially in 2020.

With this background, Associations should first look to see which of their expenses are variable (those that can be cut or reduced because of the pandemic).  Secondly, the Board must ask can the Association really afford to extend the payment of assessments for some or all of its owners?  Associations faced this same challenge during the last financial crisis.  In an editorial published on February 5, 2008 in The Atlanta Constitution, George Nowack (another former president of the CCAL) explained that because many Associations had allowed members to not pay and suspended collection actions, the balances on unpaid accounts reached levels that members gave up trying to pay.  The lesson learned from that past is that a Board is not doing any member a favor if it allows an Association’s accounts receivable to go unaddressed.  That advice is equally true today.
Continue Reading Assessment Collections and COVID-19

Yesterday, Governor Ever’s signed Emergency Order #15 which reiterated the public health emergency relating to COVID 19.  It’s title: “Temporary Ban on Evictions and Foreclosures” also implies that foreclosure actions can not be filed or advance.  That is not the case.  Here is what the Order states relative to Foreclosures:

“7. Mortgagees are prohibited from commencing a civil action to foreclose upon real estate.

8. Mortgagees are prohibited from requesting or scheduling a sheriff’s sale of the mortgaged premises.

9, Sheriffs may not conduct sheriff’s sales of mortgaged premises nor may sheriffs act on any order of foreclosure or execute any writ of assistance related to foreclosure.

10. Nothing in this Order shall be construed to affect the ability to commence a civil action to foreclose upon real estate under Section 846.102 [abandoned premises] of the Wisconsin Statutes.

11. No provision in this order should be construed as relieving an individual of their obligations to pay rent, make mortgage payments, or any other obligation an individual may have under a tenancy or mortgage.”

The Order expires on May 26, 2020.
Continue Reading Wisconsin Governor Ever’s Emergency Order and Foreclosures

Summary

If your Association excessively fines an owner, expect a court to find a way to penalize the association.

The Facts

In 2004 Mr. and Mrs. Mills (“Mills”) bought a home in the subdivision called Galyn Manor.  In 2007 Galyn Manor began fining Mills for a commercial work vehicle parked in their driveway in violation of the association rules.  Galyn Manor advised Mills that the fines would be $50 for each day that the commercial vehicle was parked on their property.  By the end of 2007, the fines amounted to $645.  In January of 2008, the association hired the Andrews Law Firm (“Law Firm”) to collect the fines.  Between 2008 and May of 2015 many demands for payment were made, and many payments were made.
Continue Reading Excessive Fines Cause Courts to Find Liability – A Lesson in Fair Debt Collection Practices

Summary

Each owner of a lot in a planned community with multiple subdivisions was required to be a member of the master association – Holly Lake Ranch Association (HLRA).  Some of the owners voted to amend their particular subdivision’s respective deed restrictions.  The effect of which was to add a voting requirement for assessments, mandatory waiver of duplicate fees for additional lots, and restricted HLRA’s lien rights.  In this particular Texas case, Roddy v. Holly Lake Ranch Association, Inc., __ S.E.2d __ (2019), the court found that the amendments were “illegal” and therefore void.  In addition, the court remanded the case to the trial court to determine the reasonableness and necessity of the attorney fees it awarded to HILRA.
Continue Reading Doing Things Wrong can be VERY Costly, Which is Why Using an Experienced Association Attorney Matters