Community Association Financials

Budgets, Dues, Association Fees, Assessments, Financial Controls, Insurance, Reserves

Are Community Associations Responsible for Lot Erosion?

A Kentucky couple claimed that they shouldn’t have to pay assessments on their two lots because, as a result of erosion, one had “ceased to exist as a recognizable land mass.” The state court of appeals disagreed (Thompson v. Lake Cumberland Resort Cmty. Ass’n). William and Theresa Thompson own two lots in the Lake Cumberland…

Lot Erosion Doesn’t Erode Obligation to Pay Assessments

A Kentucky couple claimed that they shouldn’t have to pay assessments on their two lots because, as a result of erosion, one had “ceased to exist as a recognizable land mass.” The state court of appeals disagreed (Thompson v. Lake Cumberland Resort Cmty. Ass’n*). The Lay of the Land William and Theresa Thompson own two…

Why Appropriate Insurance Coverage Can Help Your Association Clients Avoid Costly Litigation

The increasing frequency and intensity of natural disasters—from wildfires to hurricanes—makes the procurement of appropriate insurance coverage more important than ever for community associations. If your clients don’t understand their responsibilities in this area under the governing documents and applicable state laws, they could end up in costly litigation. A North Carolina condo association and…

Association’s Allocation of Insurance Proceeds Leads to Lawsuit Loss

The increasing frequency and intensity of natural disasters—from wildfires to hurricanes—makes the procurement of appropriate insurance coverage more important than ever for community associations. If your clients don’t understand their responsibilities in this area under the governing documents and applicable state laws, they could end up in costly litigation. A North Carolina condo association and…

New FiPHO Score Rates Association Health and Efficiency

The reserve study company Association Reserves Inc. has launched a new score intended to distill the overall health and efficiency of a community association into a single number. The so-called FiPHO — which stands for financial, physical, and operational — health score ranges from 1 to 100. “This new system is a direct result of…

Will a New Rating System Help — or Hurt — Your Clients?

The reserve study company Association Reserves Inc. has launched a new score intended to distill the overall health of a community association into a single number. The so-called FiPHO — which stands for financial, physical, and operational — health score ranges from 1 to 100. “This new system is a direct result of the Surfside…

Deferred Condo Maintenance: New Chicago Program Brings Hope of Financial Assistance

The City of Chicago has established a $15 million financial assistance program to help owner-occupants and associations in one particular neighborhood pay for overdue repairs and maintenance. The South Shore neighborhood of Chicago is one of the city’s most densely populated. Located along Lake Michigan, it’s home to the University of Chicago, the Museum of…

Chicago Launches Condo Preservation Program — Could Other Help Be on the Way?

The City of Chicago has established a $15 million financial assistance program to help owner-occupants and associations in one particular neighborhood pay for overdue repairs and maintenance. The South Shore Condo/Co-op Preservation Fund Pilot is intended to help condo owners at risk of losing their homes to deconversion because of their inability to pay for…

Enforcement Overexuberance: Help Your Association Clients Avoid Blowback

Associations are making headlines across the country — and not in a good way. Stories about the overly aggressive pursuit of fines, fees, and foreclosures are going viral on a regular basis. This enforcement overexuberance has many implications for community associations. In July 2022, the Washington Post reported that a Texas couple put their house…

Plat Doesn’t Give Owners Easement Over Adjacent Golf Course: Redevelopment OK’d

The North Carolina Court of Appeals has ruled that original plat maps depicting a golf course didn’t give an adjacent HOA or its members a right to block redevelopment of the property (Cape Homeowners Ass’n, Inc. v. Southern Destiny, LLC*). This is the third recent case where the court considered whether property owners held easements…