Month: January 2009

Member Allowed to Keep Her Dog

Facts: An association sued to enforce its governing documents against a member. The member's home is governed by two sets of governing documents: one for a master association and one for a sub-association within the larger community. Both governing documents prevent a member from replacing his permitted dog upon its death. However, the documents differ in that the master association limits ownership to instances where the owner had the dog when he purchased his home.

Association Entitled to Reasonable Attorney’s Fees

Facts: A planned community of several subdivisions consolidated to form a single community association in 1999. As part of the transition process, the association recorded several amended governing documents with the county clerk. When a member purchased a home in 2000, she did not know that her property was subject to the amended governing documents. Later, the member sued to have the amended documents nullified and to have the court state that she did not have to pay assessments. The association won the case and sued the member for reasonable attorney's fees.

Lease Agreement with Wireless Company Ruled Invalid

Facts: A group of members sued their condo association and a cell phone company to prevent them from installing wireless communication antennas on the roof of the condominium building. The members were concerned that the antennas would cause ill health effects.

The lawsuit challenged a 25-year lease agreement between the board and the company. The members argued that the lease agreement violated the governing documents and asked the court to grant a judgment in their favor without a trial.

Former Management Company Must Follow Settlement Agreement

Facts: A condo association sued its management company and an insurance broker for breach of contract and negligence. After a rainstorm damaged the community and the association made a timely claim with a proof of loss under the insurance policy obtained by the management company, the association discovered that the community was grossly uninsured. Eventually, the association and the management company reached a settlement in which the company was to pay the association $26,000. At the time, the settlement terms were to include a confidentiality and non-disparagement agreement.

The Year-End Audit: How to Prepare, What to Expect

Associations produce audited financial statements so that members, prospective buyers, and lenders can assess an association's financial condition. If an association's finances are mismanaged, prospective buyers may have a difficult time getting loans and may look elsewhere for a home. This ultimately may reduce home values in the community in an already difficult economic climate.

How Digital TV Transition May Affect Condo Associations

Big changes are coming to broadcast television, and some of your members may have been contacting your management office with questions about the upcoming change. Currently, broadcast stations are broadcasting in both analog and digital. But on Feb. 17, 2009, all full-power broadcast television stations are required to stop broadcasting in analog and continue broadcasting in digital only. This is known as the digital television (DTV) transition.