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

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)

Summary

When faced with the question of how much is too much for a “reasonable fee” the US Court of Appeals for the 7th Circuit held that it could not answer the question because the right parties were not before the court.

The Facts

Keith Horist owned a condominium in downtown Chicago building’s condominium association. Joshua and Lori Eyman also owned a condominium in Chicago, but at a difference association. Both associations hired Sudler Property Management to manage their day-to-day operations.

In 2017 Horist and the Eymans put their units up for sale and found buyers.
Continue Reading How Much Can an Association Charge for Providing Disclosure Documents as Part of a Sale?

The answer to the question of when are fees unreasonable is simple: when a court says they are.  Fairfield Ridge Homeowners Association (association) is an HOA in Ohio.  The association entered into a management agreement with Elite Management Services, Inc. (EMS) to manage the association, including providing closing certification letters to sellers just before the closing on a sale.  EMS charged a unit owner $395 for these letters along with a $100 fee if they needed expedited service.  The association declaration provided that a “reasonable charge” could be assessed to a unit owner for these letters.  Ms. Barger viewed the $495 in charges as unreasonable and filed a class action suit against EMS.
Continue Reading When Are Fees Unreasonable?