Departments

Nevada Financial Institutions Division Commissioner George Burns recently ruled that collection agencies for community associations in Nevada can no longer charge excessive fees. The decision limits collection agencies to nine months of back association dues and permits fees only as outlined under state laws. Any added fees or charges must first be approved by the association.

With colder weather approaching, condominium associations with gas or oil heat need to worry about carbon monoxide (CO), a hazardous gas that's invisible and odorless. At least several hundred people die each year from CO poisoning, and thousands more become ill.

In one recent incident, a 24-year-old woman in Pittsburgh, Pa., was pulled unconscious from her unit after carbon monoxide had been leaking into her condominium building. Crews from the gas company determined the toxic gas was leaking from a faulty furnace.

Facts: An investor bought eight condominium units within an association, giving him approximately 18 percent ownership of the building. The investor consistently paid maintenance fees for common expenses, and he also paid special assessments as needed for roofing repairs and painting.

At one point, the board met to discuss a special assessment for replacing the siding in the building. The members who attended this meeting did not object to the proposed special assessment, and the board approved the replacement of the siding of all the units in the building.

Facts: A member suffers from a paralyzed diaphragm and a thyroid disorder. These conditions limit her ability to walk significant distances without shortness of breath. The member qualifies for and uses a disabled parking permit. Also, diaphragm paralysis is a disability covered by the protections of the Fair Housing Act because the condition substantially limits one or more of the member's daily life activities.

Facts: A member sued a condominium association and its managing agent for negligence for failing to maintain and repair the association's sewer pipes in the common areas. Since 1999, the member experienced repeated plumbing backups in his unit. In 2003, the member wrote a letter to the board complaining of the persistent problem and reported that the plumber who responded to the latest call had recommended annual maintenance of the drain lines serving the building.

Facts: A condominium association asked a court to declare that a member was in violation of the condominium's governing documents and community rules for having a dog. The house rule, made by the board, states, “Positively no pets are allowed in the building for any reason.”

The New York State Legislature passed a law requiring city landlords to disclose any history of bedbug infestation before leasing an apartment. Real estate lawyers say that even though the law was intended to address rentals, bedbug disclosure has become an issue in the sales market as well.

On Dec. 7, 2010, the Federal Housing Administration (FHA) condominium recertification process must be completed by each individual condominium complex in order to be eligible for homebuyers to receive FHA financing in their building.

In recent years, it seems as though the number of disgruntled members has risen. These members might complain of lack of transparency or failures by association boards to follow basic governance principles, such as: adopting an annual budget with notice to the members, holding fair elections for the board of directors, providing key financial information about the association, and fairly imposing association fines. Oftentimes, these complaints are resolved in court or directed to the offices of the states' attorney generals.

Facts: A condominium development consists of two sections. In 2000, the association decided to replace the wooden enclosure fences in the first section with vinyl fencing. Upon learning that the association intended to replace the fences in only the first section, a member in the second section contacted the management office and requested that her fence be replaced as well.