Departments

Facts: A member's condominium was substantially damaged by a fire. The governing documents required the member to appoint the association as attorney-in-fact to interact with the insurer regarding the coverage of the fire damage. A contractor was subsequently engaged to perform the necessary repairs. And the association was to oversee the contractor to ensure that the work was completed.

A community in El Dorado County, Calif., has historically allowed some sport shooting. But when one board member wanted to change that, he started the process to change the governing documents to completely ban the discharge of firearms and air guns and eliminate all target and other shooting throughout the gated equestrian community.

Many associations have struggled with Federal Housing Administration (FHA) restrictions related to rentals within a community. Associations often seek FHA approval so that units for sale, whether through foreclosure or otherwise, may be sold to individuals who have obtained FHA financing.

There are times when members may want to make modifications to their homes. In these instances, the concern for associations is that these changes may affect the harmonious design of a community, decrease property values, and increase liability. For example, low-quality construction can drive down property values, increase the premiums on your community's liability insurance, or even render important warranties void. Some types of work, such as a new roof deck, if not done right, can lead to injuries and increase your community's exposure to personal injury liability.

Facts: A member became delinquent on his assessment payments to the condo association starting in November 2008. The member had also failed to pay federal income tax, and the Internal Revenue Service (IRS) assessed his tax obligation on March 17, 2008. The IRS didn't record a notice of federal tax lien until January 2009. And during this time, the member remained delinquent on his association assessments.

Facts: An association filed a small claims action against a member, seeking unpaid dues and late fees. The member filed a counterclaim alleging slander and defamation against two board members. At the hearing, the member admitted that he had not paid dues since 2007, but claimed that the association could not collect, because it was not a legal entity capable of initiating a lawsuit. The member argued that the association is in violation of several provisions of Indiana state law relating to associations.

Facts: A condominium association brought a foreclosure action against a member for unpaid maintenance fees and assessments. The member had purchased two condominium units in the building and had added an internal stairway to connect the two units. The units retained their separate addresses, and the upper unit had no loan recorded for it.

Facts: A member sued his condominium association for negligence for failing to pursue a claim on his behalf under the association's flood insurance policy. The member owned a basement condominium unit. The association held a flood insurance policy on the building, and the member held a separate, secondary flood insurance policy on the condominium. The member's policy contained a clause stating that it provided building coverage for flood-related damage in excess of the policy issued to the association.

The city of Brookfield, Wis., does not have to plow, maintain, or repair the private roads in condominium developments, the 2nd District Court of Appeals found in a recent decision.

Facts: A condominium association signed three service agreements with a company that provided management, security, and property services. According to the contracts, the company was to provide standard residential cleaning, maintenance, and concierge services to all common areas.

When the association did not pay the company, the company filed a lien against the association and more than 100 condominium units. The trial court granted a judgment without a trial in the company's favor and foreclosed on the lien.