Departments
Association Couldn’t Enforce Lien Against Bankrupt Homeowner
Facts: An association filed a lien on a homeowner’s property after she didn’t pay dues or assessments for several years. It filed the lien under the Pennsylvania Uniform Planned Community Act (UPCA). In order to recoup the past-due amount, the association arranged for a sheriff’s sale of the homeowner’s property. But two days before the sale, the homeowner filed for bankruptcy, which meant that the association couldn’t sell her property at the sale. The sale was cancelled, but the association sought to enforce its lien.
Homeowners Bound by Vague Restrictive Covenants
Facts: Homeowners installed landscaping on their property without receiving approval from their association’s architectural review committee (ARC), which was required by restrictive covenants in the community’s governing documents. The homeowners refused to remove the landscaping after they were informed by the association’s manager that it conflicted with the appearance of the community and was prohibited. They argued that the restrictive covenants were vague and ambiguous as to what outdoor improvements could be made by homeowners.
Board Could Unilaterally Increase Regular Assessment
Facts: An association’s governing documents granted the board the authority to levy a special assessment if the regular assessment is inadequate. The board raised the regular assessment from $100 per quarter to $130 per quarter. Notice was sent to the homeowners. This increase was discussed at the annual association meeting, which included the presence of a quorum of the membership. However, the members didn’t vote on the assessment increase.
No Damages Awarded for Homeowners Who Filled in Excavation Site
Facts: Homeowners bought an empty lot in a planned development and hired an architect and contractor to build a three-story, single-family home there. Prior to building the lot, an association member with an adjacent lot asked the homeowners if they would like to jointly buy with him an empty lot that each of their properties had in common so that they could each have more space between their properties. The homeowners declined the offer and went ahead with plans to build on only their purchased lot.
Don’t File Liens Against Members Yourself
When trying to collect assessment arrears owed by delinquent members, don’t file a lien against the member yourself. Instead, refer the matter to your association’s attorney. Managers should avoid filing liens because of the increase in potential liability under the federal Fair Debt Collections Practices Act (FDCPA) when the number of letters or phone calls to a member is increased.
Determining Whether Home Business Ban Includes Day Care
Q: As the manager of a condominium building, I recently discovered that one of the members who lives in the building has been operating a day care for profit in her unit. There have been a few complaints from other members about noise and an increased number of visitors to the building—mostly from pick-ups and drop-offs of children. I checked our governing documents and home businesses are banned.
Check Insurance Before Fighting FDCPA Claim
If you’re threatened with a lawsuit by a member who claims that her consumer protection rights under the federal Fair Debt Collections Practices Act (FDCPA) have been violated by you or your staff, your association's master policy carrier may consider settling the case rather than face the enormous burdens of time and costs required to defend a lawsuit—even if it’s frivolous.
Request for Service Animal Explanation Violated FHA
Facts: A disabled homeowner sued her community association over the right to bring her service animal, a Chihuahua, into the community’s clubhouse. On three occasions, the homeowner was asked when she entered the clubhouse to produce documentation that she is disabled and that the dog is a service animal. She was also asked why the dog was necessary for her to be able to use the clubhouse. When the manager wasn’t satisfied with her responses, she ordered the homeowner to leave.
Expansion Plans Aren’t Violation of Deed Restrictions
Facts: Two homeowners who owned a single lot purchased the lot next to theirs for the purpose of expanding their home. After they had purchased the second lot, they asked their community association to approve their plans to expand their home by converting their existing garage into livable space and building a new garage onto the house. To do this, they would annex a portion of the second lot into their lot, construct the new garage over the original property line and onto the annexed portion, and then sell the remainder of the second lot as a separate home site.
Fixing Las Vegas HOA Elections Was Gamble That Didn’t Pay Off
An alleged homeowner’s association election-rigging plot has been uncovered in Nevada, leaving those living in community associations across the Las Vegas Valley feeling vulnerable after being tricked into hiring a certain construction company.
The scheme involved a former construction company boss using his associates to stuff ballots, steal ballots, and steam open ballots to win HOA elections so that the construction company could obtain lucrative construction contracts from “friendly” board members.