Legal Compliance for Community Associations

Articles on the topic of Legal Compliance for Community Associations and CA Management Companies.

55-and-Older Communities: 3 Legal Landmines to Avoid

The federal Housing for Older Persons Act (HOPA) exempts 55-and-older communities from the prohibition against familial status discrimination in housing. But some of these associations fail to comply with the law’s strict, and ongoing, legal requirements, leaving them vulnerable to discrimination claims. Here are the three main areas where they can slip up. 1. The…

New Case Highlights That Parking Availability Can Be a Safety Issue

The California Court of Appeal recently ruled that a condominium association didn’t have a duty to provide adequate on-site parking for invitees and therefore wasn’t liable for injuries a guest sustained after parking off-site. But the court left the door open to an association’s liability for off-site injury in some circumstances. One evening in June…

When Is a Closed Session Appropriate?

Closed sessions are among the most frequently abused governance tools in community associations, according to Kelly Richardson, a partner in the law firm Richardson Ober De Nichilo in Pasadena, Calif. “I frequently see boards conducting discussions in closed session where the topic really should be reserved for open session,” he says. Richardson says closed sessions…

Do Associations Have a Duty to Provide Invitee Parking?

The California Court of Appeal recently ruled that a condominium association didn’t have a duty to provide adequate on-site parking for invitees and therefore wasn’t liable for injuries a guest sustained after parking off-site (Issakhani v. Shadow Glen Homeowners Ass’n, Inc.). But the court left the door open to an association’s liability for off-site injury…

Business Judgment Rule Protections Can Vanish Amid Conflicts of Interest

Conflicts of interest can strip board members of the protections they otherwise might have under the business judgment rule. A case involving a California HOA recently drove that point home. “The case really demonstrates the limits of the business judgment rule and how it’s very easy to step outside the limits of the law if…

Closed Session Dos and Don’ts

Closed sessions are among the most frequently abused governance tools in community associations, according to Kelly Richardson, a partner in the law firm Richardson Ober De Nichilo in Pasadena, Calif. “I frequently see boards conducting discussions in closed session where the topic really should be reserved for open session,” he says. Read on for some…

What Community Association Managers Worry About These Days

With COVID-19 vaccinations widely available and government restrictions dramatically loosened, community association managers have more bandwidth to deal with matters that might have been neglected during the pandemic. We asked some of our experts about the issues they were now turning their attention to. Unfortunately, while COVID concerns have receded, they’ve been replaced with a…

Don’t Get Stuck Paying Attorney’s Fees

When associations sue owners, they typically rely on language in the governing documents that provides the owner must pay the association’s costs if it prevails. But the Missouri Supreme Court recently ruled that an HOA that successfully sued an owner over unapproved construction was on the hook for its own nearly $84,000 in attorney’s fees.…

Conflicts Kill Business Judgment Rule Protections

Conflicts of interest can strip board members of the protections they otherwise might have under the business judgment rule. A case involving a California HOA recently drove that point home (Coley v. Eskaton). “The case really demonstrates the limits of the business judgment rule and how it’s very easy to step outside the limits of…

On the Radar: Current Issues Confronting Community Association Managers

With COVID-19 vaccinations widely available and government restrictions dramatically loosened, community association managers have more bandwidth to deal with matters that might have been neglected during the pandemic. We asked some of our experts about the issues they were now turning their attention to. Unfortunately, while COVID concerns have receded, they’ve been replaced with a…