Community Association Financials

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

Congress Mulls FHA-Backed Condo Repairs

U.S. Representatives Charlie Crist (D-Fla.) and Debbie Wasserman Schultz (D-Fla.) recently introduced the Securing Access to Finance Exterior Repairs (SAFER) in Condos Act of 2022 (H.R. 7532). The legislation would allow condo owners to finance special assessments with loans backed by the Federal Housing Administration (FHA). But, if enacted, the law might not provide the…

Here Come the Corporate Buyers: How to Prepare Your Clients Now, Part 1

Corporate investors are snatching up homes in community associations across the country and renting them out. Not surprisingly, “regular” homeowners in these communities aren’t too happy with the results. “If a board thinks this will never happen because of the price points of their homes or whatever, they’re gravely mistaken,” says Scott Weiss, of counsel…

Owner Owes HOA Attorney Fees After Losing His Lawsuit

The Texas Supreme Court has ruled that an association can qualify as a “prevailing party” entitled to recover its attorneys’ fees under the Uniform Condominium Act (UCA) when it successfully defends against an owner’s claims. More than a dozen states have adopted some version of the UCA. The ruling could deter owners from filing frivolous…

Record Requests Can Be a Pain, But Compliance Is Often Required

Owner record requests can prove a hassle for managers and their clients, but courts clearly favor greater access to less — let alone the denial of access. An association in Michigan learned this lesson the hard way when confronted with requests that even the state Supreme Court described as “longwinded” and “often difficult to follow.”…

Washington Court Says Board Has Wide Latitude to Set Assessments

The Washington Supreme Court has ruled that an HOA’s governing documents grant the board broad discretion in setting assessments. The court also ruled that the board’s decision on assessments was entitled to substantial deference — but not because of the business judgment rule. “This is a major win for associations in Washington state and may…

Record Inspection Request Requires Rapid Response — Even if Request Rambles

Owner record requests can prove a hassle for managers and their clients, but courts clearly favor greater access to less — let alone the denial of access. An association in Michigan learned this lesson the hard way when confronted with requests that even the state Supreme Court described as “longwinded” and “often difficult to follow”…

Board Has Broad Discretion to Set Amendments

The Washington Supreme Court has ruled that an HOA’s governing documents grant the board broad discretion in setting assessments. The court also ruled that the board’s decision on assessments was entitled to substantial deference — but not because of the business judgment rule (Surowiecki v. Hat Island Community Ass’n). “This is a major win for…

Insurance Coverage Can Turn on Full Disclosure

Many associations are taking a second look at their insurance coverage these days. That makes this a prime time to remind them that omitting potential legal claims or other so-called “material” information can come back to bite them. A California HOA learned this lesson the hard way association when a court found it concealed important…

What Do the Surfside Report Recommendations Mean for Managers?

A grand jury recently released a report on the Surfside condo collapse. What do the report's recommendations mean for managers? The report doesn’t specifically refer to managers, but they would certainly feel the effects of any enacted recommendations. “I’d expect that if some of these recommendations are adopted, the burden will end up falling on…

Why Your Clients Need to Take Insurance Applications Seriously

Many associations are taking a second look at their insurance coverage these days. That makes this a prime time to remind them that omitting potential legal claims or other so-called “material” information can come back to bite them. A California HOA learned this lesson the hard way association when a court found it concealed important…