Community Association Financials

Times change, and so do your risk exposures. That means your long-time general liability and property insurance policies may not be sufficient to provide the coverage you need these days. “I’m concerned about managers being stuck paying $20,000 to $100,000 in legal fees, not even including the settlement or judgment,” says Steven Fischer, vice president…

The Texas Supreme Court has ruled that an association can qualify as a “prevailing party” entitled to recover its attorneys’ fees under the Uniform Condominium Act (UCA) when it successfully defends against an owner’s claims. More than a dozen states have adopted some version of the UCA. The owner sued the HOA and its board…

U.S. Representatives Charlie Crist (D-Fla.) and Debbie Wasserman Schultz (D-Fla.) recently introduced the Securing Access to Finance Exterior Repairs (SAFER) in Condos Act of 2022 (H.R. 7532). The legislation would allow condo owners to finance special assessments with loans backed by the Federal Housing Administration (FHA). But, if enacted, the law might not provide the…

Corporate investors are snatching up homes in community associations across the country and renting them out. Not surprisingly, “regular” homeowners in these communities aren’t too happy with the results. “If a board thinks this will never happen because of the price points of their homes or whatever, they’re gravely mistaken,” says Scott Weiss, of counsel…

The Texas Supreme Court has ruled that an association can qualify as a “prevailing party” entitled to recover its attorneys’ fees under the Uniform Condominium Act (UCA) when it successfully defends against an owner’s claims. More than a dozen states have adopted some version of the UCA. The ruling could deter owners from filing frivolous…

Owner record requests can prove a hassle for managers and their clients, but courts clearly favor greater access to less — let alone the denial of access. An association in Michigan learned this lesson the hard way when confronted with requests that even the state Supreme Court described as “longwinded” and “often difficult to follow.”…

The Washington Supreme Court has ruled that an HOA’s governing documents grant the board broad discretion in setting assessments. The court also ruled that the board’s decision on assessments was entitled to substantial deference — but not because of the business judgment rule. “This is a major win for associations in Washington state and may…

Owner record requests can prove a hassle for managers and their clients, but courts clearly favor greater access to less — let alone the denial of access. An association in Michigan learned this lesson the hard way when confronted with requests that even the state Supreme Court described as “longwinded” and “often difficult to follow”…

The Washington Supreme Court has ruled that an HOA’s governing documents grant the board broad discretion in setting assessments. The court also ruled that the board’s decision on assessments was entitled to substantial deference — but not because of the business judgment rule (Surowiecki v. Hat Island Community Ass’n). “This is a major win for…

Many associations are taking a second look at their insurance coverage these days. That makes this a prime time to remind them that omitting potential legal claims or other so-called “material” information can come back to bite them. A California HOA learned this lesson the hard way association when a court found it concealed important…