Month: April 2011

Developer and Housing Authority Can Sue Association to Invalidate Leasing Restriction

Facts: The Chicago Housing Authority (CHA) and a community's developer filed a lawsuit against the master association and its board of directors for leasing restrictions the association adopted. The community consists of single-family homes, townhomes, and two-flat condominium buildings.

How to Identify and Handle Board Member Conflicts of Interest

Association boards are filled with people from all walks of life. And although the volunteer position offers no financial compensation, board members have considerable responsibilities. They are basically in charge of running a “business” with all the same attention paid to revenues, expenses, and assets. On top of carrying out the association's administrative duties, board members have to be concerned with exposing themselves to one of the perils of their position—the potential for conflicts of interest.

NRA Helps Shoot Down Association Gun Ban Plan

A community in El Dorado County, Calif., has historically allowed some sport shooting. But when one board member wanted to change that, he started the process to change the governing documents to completely ban the discharge of firearms and air guns and eliminate all target and other shooting throughout the gated equestrian community.

Signed Agreement Released Association and Contractor from Liability

Facts: A member's condominium was substantially damaged by a fire. The governing documents required the member to appoint the association as attorney-in-fact to interact with the insurer regarding the coverage of the fire damage. A contractor was subsequently engaged to perform the necessary repairs. And the association was to oversee the contractor to ensure that the work was completed.

FHA Issues Waiver on Leasing Restrictions

Many associations have struggled with Federal Housing Administration (FHA) restrictions related to rentals within a community. Associations often seek FHA approval so that units for sale, whether through foreclosure or otherwise, may be sold to individuals who have obtained FHA financing.

How to Minimize Liability Risks Associated with Social Media

Social networking is growing at an exponential rate. According to a report by technology and market research firm Forrester Research, 55.6 million U.S. adults visited social networking sites in 2009, double the number of users reported in 2007. As more adults become engaged with social networking sites such as Facebook and Twitter, property management companies and associations are increasing their presence in an effort to be where their members are. These communities are discovering that Facebook, in particular, is especially adept at conveying information and building community.