Legal Compliance for Community Associations

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. The…

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…

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…

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. Just what type of arrangement qualifies as a kickback? “It’s generally receiving something of value in exchange for…

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. In reaching its decision, the Illinois Court of…

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…

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…

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…

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…

The Illinois Court of Appeals recently ruled that a condo association must provide only those accommodations that reduce the effects of a disability so that a requesting resident isn’t disadvantaged because of the disability. This standard proved too high of a hurdle in a recent discrimination lawsuit brought by a particularly litigious owner in a…