Rentals

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Room For Rent

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

Association Academy.210917 2

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…

Association Academy.210917 2

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

Apple vs. Pear

Harbour Island Condominium Owners Association, Inc. v. Alexander, No. B285755 (Cal. Ct. App. Jan. 24, 2019)

Summary

In Harbour Island, the Court of Appeals of California held that tenants renting a unit that was part of a condominium association did not have standing before the board concerning meeting attendance and fines imposed for violations. The association did not have to give the tenants an opportunity to be heard, unlike the rights of actual unit owners.
Continue Reading Tenants Due Process Rights are NOT the same as Owners Rights

Devil in Suit

Courts across the country have been hearing cases about short-term rentals of homes and condominium units, and there is not much consistency in the decisions made. Sometimes, it is the homeowners’ association that is trying to enforce its covenants in a manner that prohibits short-term rentals, and sometimes it is a municipality trying to enforce its zoning ordinances.  In the two cases discussed below, we have one of each—and in both cases, the language of the covenant and the ordinance made all the difference.
Continue Reading Short-Term Rentals—A Tale of Two Cases

Money Exchange

Condominium associations generally have a number of legal remedies to pursue when an owner stops paying assessments. An Ohio court recently found that associations may collect assessments as they come due during a lien foreclosure action by and through a court-appointed receiver.

Facts.  In a 2017 case, an investor owner of a condominium unit, who had a rent-paying tenant living in the unit, failed to pay a special assessment to the association. The association filed a lien for the unpaid special assessment and started a lien foreclosure action. While the foreclosure action was in progress, the association also asked the court to appoint a receiver who would collect the rents from the tenant, as well as the current assessments as they come due. The unit owner argued that having the receiver collect assessments was a stretch of the statute, which only allowed a receiver to collect “reasonable rental” during the pendency of a foreclosure action.
Continue Reading Can a Court-Appointed Receiver Collect Assessments Coming Due While a Unit is in Lien Foreclosure?

Yes No

A recent New York Court dealt with an issue on leasing (Olszewski v. Cannon Point Association, Inc., 148 A.D.3d 1306 (2017)).  The Board adopted rules and regulations that placed restrictions on leasing that contradicted relevant portions of the Association’s Bylaws.  The Association then fined the owner for violating these restrictions and the owner sued.  The owner won at the circuit court level and the Association appealed.  On appeal, the Court again ruled in favor of the owner, upholding the trial court’s decision.  Why?
Continue Reading Can the Association’s Documents be Contradictory and Still Enforceable?

Do Not Distrub Guests

A Court in Louisiana recently tackled the issue of short-term rentals (New Jax Condominium Association, Inc. v. Vanderbilt New Orleans, LLC, 219 So.3d 471). A Condominium Association adopted an amendment to its bylaws during its annual meeting prohibiting short term rentals. When a Unit Owner continued to engage in short-term rentals, the Association sued and received a permanent injunction, preventing the Unit Owner from continuing to engage in short-term rentals. The Unit Owner appealed, alleging that the amendment to the bylaws was invalid because certain board members had conflicts of interest, and because one board member changed his vote during the voting.
Continue Reading Banning Short-Term Rentals

Smoking

A unit owner, who is also an attorney, was renting his unit to his mother and believed that the condominium association board, the association, the property manager and the association’s attorney didn’t like him because of his Russian nationality. His mother, who allegedly had asthma and could not tolerate smoking, was upset because her Armenian neighbor would smoke inside her own unit and on her limited common element patio and the smoke would seep through the mother’s open windows. The unit owner demanded that the association board prohibit smoking inside of all of the units. When the board refused, he brought a 200-paragraph lawsuit alleging seven various causes of action, including discrimination, breach of fiduciary duty, and breach of various alleged laws.
Continue Reading Smoking and the Unreasonable Unit Owner Attorney

Bank

An association in southeastern Wisconsin is made up of condominiums that are also rented out for the owners (condotels). In this particular case, a unit owner, who lived in Illinois, was in financial difficulty and wanted to file bankruptcy and turn their condominium over to their bank.  The bank’s attorney prepared a deed in lieu and sent it to the unit owner, which the unit owner then had recorded.  The bank became the owner and was responsible for not only the dues from that date forward, but also what was owed by the unit owner.  The bank did not want to acknowledge this.
Continue Reading Banks & a Deed in Lieu