A more than two-year battle over an American flag display in a Jacksonville, Fla., homeowners association has led to more than $8,000 in fines and a lien on a member’s home in that community. A Florida veteran has been fighting with the association about what he asserts is his right to keep the flag in a flower pot in his front yard.

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.

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.

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.

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.

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.

It may seem like tax season—and the paperwork that accompanies it—has just passed, but remember that as you manage your community year-round, you need to be aware of tax issues that could arise in the future. A common issue to keep your eye on is the use of outside, third-party workers to perform jobs, such as cleaning, in your community. If you don’t handle paying these workers properly throughout the year, you could get into tax trouble with the IRS or state and local tax agencies later.

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.

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.

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.