Featured Articles
Court Upholds Board’s Nuisance-Based Removal of Dangerous Dog
A California HOA’s governing documents supported its board’s decision to order the removal of a dog with a history of injuring both humans and other dogs (Sunset Green Homeowners Ass’n v. Spagenski). “I love this case because it supports an association’s right to enforce its covenants by requiring removal of a dog,” says Sandra Gottlieb,…
Take the Time to Re-Examine Rules for Potentially Discriminatory Impact
The state of Maryland recently passed a new law after an HOA’s demand for the removal of basketball hoops raised questions of racial discrimination. The episode provides a strong reminder to associations, boards, and managers that seemingly innocuous rules, new or existing, could lead to unwanted publicity and litigation stemming from allegations of discrimination. The…
Surfside Update: The Call for Condo Safety Reforms, Part 1
A Miami-Dade County grand jury has issued its report on the Surfside condo collapse, including several recommendations for making buildings safer. “I expected something scary and extraordinarily difficult to do, and that’s exactly what the grand jury recommended,” says Kelly Richardson, a partner in the law firm Richardson Ober De Nichilo in Pasadena, Calif. In…
3 Tax Traps for Associations and Managers to Avoid
Community associations haven’t historically been in the cross-hairs for IRS auditors, but they can face unexpected tax bills. Here are three tax-related areas where associations sometimes slip up and suffer potentially costly consequences as a result. 1. Understanding that even nonprofit associations are taxable. It’s not unusual for boards to believe that, because their association…
‘Residential Use’ Restriction Prohibits STRs
The Michigan Court of Appeals has ruled that regular weekly rentals violated an HOA’s residential use restriction, in a case we first covered in 2020 (Cherry Home Ass’n v. Baker). The decision is a potentially promising development in the ongoing battle against short-term rentals. Owners’ Arguments Shot Down — Twice The case involved a community…
Partner vs. Impediment: 4 Tips for Working with Government Officials
From relocating an invasive flock of peacocks to reducing fire fuel and dealing with the effects of coastal erosion, community associations increasingly are working with government officials to resolve problems. “There are a lot of opportunities for managers and boards, before they start going the road on an issue, to step back and ask agencies…
Cornering Kickbacks: How to Help Your Managers Avoid Them
Kickbacks can cost both you and your clients, but your managers might not even know when they’re receiving one. Teaching your employees to recognize and sidestep such wrongful transactions can reduce the risks to your bottom line. Recognizing Kickbacks Just what type of arrangement qualifies as a kickback? “It’s generally receiving something of value in…
Owners Can Sue Managers Over Excessive Disclosure Doc Fees
An Illinois state court has sent a warning signal to association management firms about the fees they charge for disclosure documents. Disagreeing with a federal court ruling to contrary, the court held that owners can sue a manager for charging excessive fees under the state condo law (Channon v. Westward Mgmt., Inc.). The ruling applies…
California Court Exempts Current Owners From New Short-Term Rental Restrictions
A California Court of Appeal has left some associations and their lawyers reeling from its broad interpretation of a state law that exempts current owners from new rules blocking short-term rentals. “This is an expansion of what I think a lot of us expected Section 4740 to mean,” says Kelly Richardson, a partner in the…
Work Opportunity Tax Credit Can Add to the Bottom Line
Community association management companies (and their clients) have a valuable tool available for growing their staffs and reducing their tax bills at the same time — the Work Opportunity Tax Credit (WOTC). And they may not even be aware of it. “The credit is very overlooked,” says Jamie Dokovna, a shareholder in the Florida law…