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

Thank you to all who attended our virtual Association Academy on September 17 – If it Weren’t for the People, Association Living Would be Perfect.  No need to worry if you missed it, we recorded it for you, and you can access at any time.

To access the recording click HERE. We outline some

Please join Husch Blackwell’s Condominium & HOA Law Team on September 17, 2021 as we outline some frequently encountered legal challenges and issues that can prove time-consuming and costly when mishandled.

Topics

  • Condominium legal document review
  • Collections from a debtor’s perspective
  • Handling disruptive unit owners and residents
  • Arbitration
  • Hoarders and foreclosures
  • Rentals and smoking
  • Construction issues]


Continue Reading Association Academy: If it Weren’t for the People, Association Living Would be Perfect

Summary

An insurance company can’t sue a condominium tenant in subrogation, even if they were negligent in starting a fire.

The Facts

The Declaration required the association to “obtain and maintain a … policy of all risk property insurance” for the association.  The Declaration also required the policy to name as insureds the unit owners and their bank mortgage holders (Mortgagees) and that “any insurance maintained by the association shall contain [a] ‘waiver of subrogation’ as to the Units and Mortgagees.”  Finally, the Declaration also prohibited the owners from obtaining fire insurance and required all occupants and tenants to comply with the Declaration.

One of the unit owners leased its commercial unit to the tenants (Defendant). The lease did not specify who would carry fire insurance. 
Continue Reading Insurance Subrogation – Not Against A Condominium Tenant