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D.C. Summit Addresses Critical Association Issues

Community Associations Institute (CAI) members from around the country met in Washington, D.C., recently to address critical community association issues with officials at the Federal Housing Administration (FHA), the Federal Housing Finance Agency (FHFA), the Federal Emergency Management Agency (FEMA), and key Congressional leaders.

Late Fees Must Be Reasonable Under ‘Totality of Circumstances’

Facts: An association sued a member for unpaid common expense assessments, among other fees and charges. The trial court ruled in the association’s favor and awarded damages that were more than what the member owed. After the association informed the court that the member didn’t owe as much, the court reduced the award to several thousand dollars less than the member’s debt. The new award didn’t include late fees the member owed.

Association Had No Fiduciary Duty to Member

Facts: A member noticed a window leak in her two-story penthouse unit. For several years after, the member reported that and other water leakage problems to the association’s board. The association eventually waterproofed the exterior masonry, which resolved the problem. But a dispute arose over the need to replace the unit’s wall of windows and over who should bear the cost of replacement.

Carefully Consider Holiday Displays and Events

With the holiday season approaching, you and your management staff may have talked about putting up themed displays or decorations, or hosting a community-wide holiday event to celebrate. But tread lightly when it comes to what types of displays or parties you should install or host—it could land you in trouble if members perceive that you’ve discriminated against any based on their religion.

Put Members on Notice of Approved Projects

It’s inevitable that over the years, you’ll have had some issues with association members who have made modifications to their homes without obtaining the necessary approval from the association. And as a result, you may also have been forced to handle concerns from suspicious members making calls to the management office to ask if particular neighbors have been granted approval by the architectural review committee for whatever project the neighbor happens to be working on. To resolve this, put association members on notice of approved projects in the community.

Give Members Dos & Don’ts for Christmas Tree Safety

As Christmas approaches, many of your members will be setting up Christmas trees in their units. While a beautifully decorated tree can add to the holiday spirit and help create a fragrant indoor atmosphere, Christmas trees can also pose a serious fire hazard to members' condominiums as well as to your building. According to the U.S. Fire Administration, Christmas trees account for an average of 200 fires annually, resulting in six deaths, 25 injuries, and more than $6 million in property damage.

Follow FHA When Fostering Holiday Spirit in Community

The winter holiday season gives associations the opportunity to make their communities look festive and create a sense of camaraderie among members. Getting into the holiday spirit can lead to legal liability, though, if decorations or activities violate the Fair Housing Act (FHA). Pay attention to these aspects of holiday decorating when planning displays and celebrations.

Association Prevails on Unsubstantiated ADA, FHA Claims

Facts: A former homeowner in a planned community sued the association, claiming that it had violated the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA) concerning a walkway built to the house she previously owned and access to the swimming pool and related shower and bathroom facilities by persons in wheelchairs. The owner said that she has a bone disease and an anxiety disorder, but didn’t specify exactly what they are. For the anxiety disorder, she claimed to need a service dog, whose presence reduced her anxiety.

Association Didn’t Fraudulently Conceal Defects in Unit

Facts: After a member moved into the unit he purchased in a condo building, he discovered defects including inadequate fire protection, violations of the state energy code, shoddy insulation work, and poor ventilation, among other problems. He requested that the association cure—that is, fix—the defects. When it didn’t, the member sued the association for breach of contract and fraud. The association asked the court to dismiss the member’s claims.

Failure to Provide Handicap-Accessible Parking Violated FHA

Facts: A renter who used a wheelchair sued a condo association, alleging that the unavailability of handicap-accessible parking in the building violated the Fair Housing Act (FHA). The 40-story building has 342 parking spaces, seven of which are handicap accessible. But the association sold the accessible spaces to members without disabilities.