Articles

Having the right kind of insurance and enough coverage under an insurance policy is key to operating an association. After all, insurance can protect the association from liability that might financially sink the community if costs for repairs, lawsuits, and accidents had to come out of pocket. But community association insurance is specialized. And not all insurance agents and brokers are really qualified to recommend insurance products, work with the association to determine its insurance needs, and keep up with changing insurance requirements as time goes on.

The draw to residential communities for most owners is that there are rules that keep homes looking nice, and when their neighbors neglect their properties, it can not only conflict with the community’s aesthetic, but also cause damage. For example, an unresolved plumbing leak can cause damage to adjoining units. The good news is that, typically, associations’ governing documents require members to maintain their properties, and authorize the association to compel compliance.

Q: I manage a condominium building that was previously owned before the current association took it over. A handicapped unit owner claims that some elements of the building—namely, some doors—are difficult, but not impossible, for him to use as a result of his disability. He is suing the association under the Fair Housing Act (FHA) and asking that the association spend what would be a considerable amount of time and money redoing the design and construction of the building to accommodate him.

Facts: An association notified some of its members who were renting their units to vacationers that this was in breach of the restrictive covenants because they were essentially running a business out of their units. The members refused to stop renting their units. The association sued the renters. A Florida trial court ruled in favor of the members. The association appealed.

Decision: The appeals court upheld the trial court’s decision.

By Carolyn Zezima

With almost 800,000 bankruptcy filings in 2016 alone, chances are that someone living in your community will declare bankruptcy at some point. So, what does that mean for you and your association? When a person files for a bankruptcy, the court immediately issues an “automatic stay.” This is a big protection of bankruptcy because the automatic stay prohibits any creditor or individual from attempting to collect on a debt or take any action to collect that debt as of the date of the bankruptcy.

If one of your management staff members suspects that a homeowner in your planned community is manufacturing illegal drugs, you’ll need to get a handle on the situation as soon as possible.

Associations often make the news for incidents that reflect poorly on them, or that end in liability. But not every lawsuit against an association is a cautionary tale for a manager and board of directors. A recent New Mexico case highlights what often happens when a litigious member brings a frivolous claim.

By Andrea Brescia

With almost 800,000 bankruptcy filings in 2016 alone, chances are that someone living in your community will declare bankruptcy at some point. And the likelihood grows if your association is in the South, where the highest numbers of bankruptcies are recorded. With one filing, the member living in your community goes by the new name of “debtor” on official documents. And just like that, the way you deal with this member must shift dramatically.

By Andrea Brescia

More and more Americans are getting—and sending—their information through social media in real time: from politics and breaking news to sharing family photos and learning about events. Platforms like Facebook and Twitter are the favored community forums for staying in the know. Facebook pages, Twitter streams, and even community-designed apps are popping up all over homeowners associations—sometimes both officially and unofficially.