Legal Compliance for Community Associations

The owners in a Kentucky subdivision came out on the wrong side of a court case over their use of their property for short-term rentals. Although the community association wasn’t involved in the litigation, the ruling sheds some light on the arguments associations can expect when trying to block short-term rentals in court — and…

The Kentucky Court of Appeals has rejected a community association owner’s arguments in yet another battle over owners’ right to use their homes as short-term rentals. The court’s ruling, based on a recent decision by the state’s Supreme Court, could provide some useful guidance for your clients that would like to implement enforceable restrictions on…

A federal Court of Appeals recently ruled that a community association manager wasn’t a “debt collector” for purposes of the Fair Debt Collection Practices Act (FDCPA), which strictly regulates the conduct of general debt collectors. (Bates v. Green Farms Condominium Ass’n, 6th Cir. 2020). But managers shouldn’t take too much comfort in the decision because…

A Texas Court of Appeals has found that the failure to enforce a subdivision’s restrictive covenants constituted an abandonment of the restrictions as a whole — despite the fact that the covenants included a severability provision intended to protect the other provisions if one or more were struck down as unenforceable. (Densmore v. McCarley, Tex.…

The Fair Housing Act may prohibit racial discrimination, but a surprising number of community associations’ deed covenants still contain racial restrictions — and some of your clients could be among them. With civil rights a mainstay in the media since the death of George Floyd in May 2020, associations with such restrictions should take action…

Community association residents can be as guilty of “not in my backyard” as anyone else when given the chance. And they may be in for an unpleasant surprise if they count on their declaration and restrictions to protect them from such situations. A community association in Austin, Tex., learned this the hard way. A federal…

People who buy into pricey gated communities likely assume they won’t have to worry about drug and alcohol rehabilitation facilities moving into the neighborhood — but a recent case out of Texas shows that this confidence may be misplaced. A federal district court ruled against an Austin community association, finding that the Fair Housing Act…

The COVID-19 crisis left many boards of directors scrambling to handle a variety of novel issues, sometimes based on uncertain or questionable authority. This has led some associations to consider amending their governing documents to better equip them to deal with similar (or lingering) issues in the future. And, if they’ve already started the amendment…

Community associations across the country are weighing amendments to their governing documents. While the initial impetus may have been some problematic gaps that handcuffed boards of directors as they tried to respond to COVID-19, these associations realize this also may be an opportune time to act on other issues that have been percolating for a…

A Florida Court of Appeals has rejected its own holding from more than 20 years ago, and the change isn’t good news for community associations and their managers. The court concluded that association assessments are consumer debts under the state law that imposes restrictions on debt collection practices — and therefore allowed a class action…