Articles

Home businesses are being operated more often than ever before, as a cost-saving measure or because it’s more convenient for the business owner to stay at home. But some associations restrict the kinds of businesses members can operate in their homes or prohibit home businesses altogether.

Facts: An association that owns and maintains the public areas within a gated community and provides services to the residents of that community sued a homeowner for dues and assessments. Following a nonjury trial, a court ruled in favor of the association. It ordered the owner to pay over $3,000 to the association. The owner appealed.

Decision: A New York appeals courtupheld the lower court’s decision.

Facts: Water leaks in the common area of a condominium building damaged an owner’s unit. The owner sued the association and the building’s developer. After a jury trial, the jury found that both the developer and the association were negligent and that their actions were the direct cause of the damage. The jury attributed 80 percent of “fault” to the developer and 20 percent to the association—that is, the developer would be responsible for paying 80 percent of the damages and the association would be responsible for paying 20 percent.

Facts: A condominium unit included access to a wood rooftop deck enclosed by a railing. The owner of the unit held a party on the deck. One of the party guests climbed over the railing and walked across an unimproved portion of the roof where he fell through an airshaft and was injured. The guest sued the condo association for negligence. The association asserted that the incident wasn’t foreseeable and that it owed no duty of care to the guest. The association asked a trial court for a judgment in its favor without a trial.

Q: Some homeowners associations have an assessment bylaw that includes an annual cap on the amount that monthly assessments can increase without a vote of the members. Is this advisable?

Q: Your community allows pets, but limits their weight to no more than 20 pounds. If a disabled resident says she needs a larger dog as an assistance animal, must you consider making an exception to the weight restriction as a reasonable accommodation?

Proposed Florida legislation would speed up community associations’ ability to foreclose on houses or condo units with unpaid dues in the Sunshine State. Homeowners behind on their community-association dues would have to make good on the full amount before fighting the charges, under a bill filed by Sen. Alan Hays (R-Umatilla). The bill would also bring state oversight to Florida’s homeowner associations.

The Federal Housing Administration (FHA) provides mortgage insurance on loans made by FHA-approved lenders throughout the United States. It insures mortgages on single-family and multifamily homes--including condominiums and homes in planned communities. Since late 2008, the FHA has issued regulatory guidance to set standards associations must meet in order for a prospective member to qualify for FHA financing. The FHA has said that it conducts thorough appraisals to protect both lenders and borrowers.

Last month’s feature touched on the changing face of service animals—that is, nontraditional breeds being used as service dogs, and the ways that associations should handle responsibility and liability if a service dog of any kind happens to bite somebody (see “Keep Restricted Breed Dogs on Short Leash in Community,” February 2013).Although it’s important to speak with your association’s attorney as soon as there’s a request for a service dog that raises safety concerns, you should make sure that members generally understand how to interact with all

Q: I’ve heard about some associations using a “two-envelope” system for mail-in votes. I’m considering proposing it in our community. What are the advantages of a two-envelope system and how does it work?