eAlerts

Q: I manage a condominium building that was previously owned before the current association took it over. A handicapped unit owner claims that some elements of the building—namely, some doors—are difficult, but not impossible, for him to use as a result of his disability. He is suing the association under the Fair Housing Act (FHA) and asking that the association spend what would be a considerable amount of time and money redoing the design and construction of the building to accommodate him.

Homeowners who have paid a premium for housing that boasts sunset or city skyline views, or are situated in areas noted for their scenic beauty, feel they should be entitled to enjoy them—unfettered by other structures or foliage that might later get in the way. To this end, some of the most notable community association litigation cases have dealt with view protection bylaws. Those cases involved owners who have paid for a specific view that they can no longer enjoy, or that previously made their unit more valuable and unique than others, suing the association.

Although serving on the board of an association is a voluntary duty, unfortunately it can result in board members being sued. An association should do its best to shield board members from individual liability, though. A recent Texas appeals court ruling is an example of a situation where things ended well for board members who were being sued. There, a court determined that the board members, who were being sued by homeowners in a community that had been demolished, weren’t liable.

Short-term condo rentals can help members in an association bring in extra cash. This is especially true when a condo is located in a vacation hotspot, like beach or winter sport towns. But short-term condo rentals have been argued over by many associations and members, with associations that are displeased with rentals claiming that they are a business that violates the covenants.

With almost 800,000 bankruptcy filings in 2016 alone, chances are that someone living in your community will declare bankruptcy at some point. So, what does that mean for you and your association? When a person files for a bankruptcy, the court immediately issues an “automatic stay.” This is a big protection of bankruptcy because the automatic stay prohibits any creditor or individual from attempting to collect on a debt or take any action to collect that debt as of the date of the bankruptcy.

If one of your management staff members suspects that a homeowner in your planned community is manufacturing illegal drugs, you’ll need to get a handle on the situation as soon as possible.

Associations often make the news for incidents that reflect poorly on them, or that end in liability. But not every lawsuit against an association is a cautionary tale for a manager and board of directors. A recent New Mexico case highlights what often happens when a litigious member brings a frivolous claim.

At first glance, an association’s structure and management seem straightforward. A planned community or condominium building typically has a set of governing documents, a board of directors who make sure that the rules and regulations in those documents are followed, and a manager who, with her staff, oversees maintenance, compliance, and organizational aspects of the community. But that’s not always the structure.

The Coalition for Community Housing Policy in the Public Interest’s most recent national survey has uncovered higher dissatisfaction with associations from their members. A whopping 81 percent of community association residents cited a lack of transparency and poor communication as the top concerns among those who live in planned communities and condominiums.

Q: Some of the economically distressed members in the community I manage have decided to lease their homes to tenants to help cover their expenses. At the same time, the landlord-members seem to have made paying assessments a low priority and may have become delinquent. Can an association collect rent directly from a tenant to pay any delinquent assessments? If so, what is the best way to do this?