Articles

Cover 13 Points When Drafting Lease Restriction Bylaw

 

Ideally, community association members would occupy their own units, rather than lease them to tenants. That’s because associations often feel that renters won’t take good care of the units they’re renting and that they won’t follow community rules. This may seem like a generalization, but you can’t be too careful when it comes to protecting your community from problems. So is it allowable to limit the number of units at your community that can be leased at any one time? If so, how can you do this fairly?

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Determining Liability for Dangerous Condition in Community

Q: The community association I manage uses a separate maintenance company to plow, remove ice from, and salt the parking areas and common areas in the community during the winter. So far, we’ve had no complaints from members about slippery conditions. I try to inspect the work done by all of the contractors we use to maintain various parts of the community, but I can’t always do this every time work has been done.

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Was Board’s Water Supply Agreement “Ultra Vires”?

Facts: A condo association on the island of St. Thomas was initially sponsored by a resort corporation. The declaration required the corporation to provide fresh water and wastewater treatment services to the association at a reasonable rate to be determined by several factors. The declaration also made all of the water facilities common property of the association.

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Follow Four Summer Heat Protection Fundamentals

Spring is here, but it’s not too early to plan ahead for beating the heat if the community you manage experiences hot weather during the summer months. Keeping units and common areas cool during scorching summer months is especially important in certain types of communities—for example, communities whose residents are over a certain age and whose health conditions can be aggravated by excessive heat.

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Association Forced to Sell “Heart of Community”

 

A Fairfax, Va., homeowners association spent big bucks on a small problem—and bankrupted itself in the process. The 44-unit townhouse community shelled out almost $400,000 in legal fees to fight a four-year battle with two unit owners who in 2008 placed in their yard an election sign that was four inches taller than the association’s covenants allowed.

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Enforce Home Business Rules Consistently for All Members

Home businesses are being operated more often than ever before, as a cost-saving measure or because it’s more convenient for the business owner to stay at home. But some associations restrict the kinds of businesses members can operate in their homes or prohibit home businesses altogether.

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Agreement to Pay Assessments “Implied in Fact”

Facts: An association that owns and maintains the public areas within a gated community and provides services to the residents of that community sued a homeowner for dues and assessments. Following a nonjury trial, a court ruled in favor of the association. It ordered the owner to pay over $3,000 to the association. The owner appealed.

Decision: A New York appeals courtupheld the lower court’s decision.

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Association Not Entitled to Apportion Attorney’s Fees

Facts: Water leaks in the common area of a condominium building damaged an owner’s unit. The owner sued the association and the building’s developer. After a jury trial, the jury found that both the developer and the association were negligent and that their actions were the direct cause of the damage. The jury attributed 80 percent of “fault” to the developer and 20 percent to the association—that is, the developer would be responsible for paying 80 percent of the damages and the association would be responsible for paying 20 percent.

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Association Owed No Duty of Care to Injured Guest

Facts: A condominium unit included access to a wood rooftop deck enclosed by a railing. The owner of the unit held a party on the deck. One of the party guests climbed over the railing and walked across an unimproved portion of the roof where he fell through an airshaft and was injured. The guest sued the condo association for negligence. The association asserted that the incident wasn’t foreseeable and that it owed no duty of care to the guest. The association asked a trial court for a judgment in its favor without a trial.

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Change Bylaw that Includes Annual Cap on Assessments

Q: Some homeowners associations have an assessment bylaw that includes an annual cap on the amount that monthly assessments can increase without a vote of the members. Is this advisable?