05.29.25

ISSUE # 117

CIC Info Bytes 05/29/25

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Know What You’re Buying

• Raleigh, North Carolina: If you identify a recorded declaration of covenants, conditions and restrictions and/or a set of bylaws or rules and regulations, you should assume there’s an association until proven otherwise.  Don’t take your realtors’ word for it.  Don’t take your future neighbor’s word for it.  Don’t take anyone’s word for it.  Read and understand the nature of the written obligations.

…“There’s two HOAs here. The first one is kind of an overhead HOA, so it covers, you know, all of the amenities,” Jessica Mclemore told CBS 17 Investigates about her Wake Forest home, which is currently up for sale in the Traditions neighborhood. “Then the second HOA for this house covers all lawn care and maintenance.”...

…The couple’s realtor, Brian Pate, said it’s not uncommon potential buyers-say “no thanks” to a neighborhood with an HOA.

“You always hear the bad stories, you never hear the good. So, for that reason, people often want to avoid HOAs, and it can be a challenge with all of the new construction in the Triangle area market because all of those large, new subdivisions are going to have homeowner’s associations,” …

CBS 17 Investigates: NC homeowner’s associations and buyers beware — Mary Smith | WNCN | May 15, 2025

Can Your Board Volunteers Avoid Burnout?

• This is a loaded question and the answer depends mostly on each individual in the position of providing service for your community.

Staying Engaged When it Feels Thankless - Avoiding Board Burnout — AJ Sidransky | New England Condominium| May 2025

Don’t Lien on Me

•  Conyers, Georgia: Is this a case of an invalid lien?

A Rockdale County, GA, judge has approved a $40,000 settlement between the Channing Cove Homeowners Association (HOA) and Michelle Bernard - a longtime homeowner who sued the HOA over a disputed lien on her property.

Bernard’s legal battle began after the HOA placed a lien on her home for a little under $3,000, citing unpaid fees [assessments].

She responded by filing a lawsuit accusing the HOA of imposing fraudulent charges and altering covenants without proper votes or meetings since 2011, according to reporting by Atlanta News First.

“I told them bring the lien,” Bernard said. “I’m bringing a lawsuit.”

A judge granted the HOA’s motion to enforce the $40,000 settlement in May. Bernard claims the payout — which comes from the HOA’s insurance — is an attempt to “make her lawsuit go away.”

“The HOA is trying to force me to settle the lawsuit,” she said. “I need someone to address this, because it’s affecting our community.”...

This Georgia homeowner went to war with her HOA—and won — Jonathan Delozier | Housing Wire | May 23, 2025

HOA to pay homeowner $40K settlement after she sued association for a lien on her home — Anastassia Olmos and Jordan Gartner | KY3 | May 20, 2025

Confidential Records Should be Treated with Care

• Spain: Exposing data comes with risks.  Spain’s AEPD provides enforcement.

A homeowners' association in Spain has been fined for displaying the name and debt of one of the neighbours in the lobby of the building for eight months. In this way, it violated regulations associated with the correct processing of personal data. After two years of unsuccessful attempts to notify the association, the Spanish data protection agency (AEPD), which the affected party filed a complaint with, has decided to take action.

As an independent body responsible for safeguarding peoples' privacy, AEPD considers that the homeowners' association has breached its duty of confidentiality by violating article 5.1 of the General Data Protection Regulation (GDPR): "Personal data shall be processed in such a way as to ensure adequate security of personal data, including protection against unauthorised or unlawful processing and against accidental loss, destruction or damage, by implementing appropriate technical or organisational measures (integrity and confidentiality)."

In addition, the association also considered that there had been a breach of Law 49/1960 regarding horizontal property, which establishes that the minutes of meetings must be sent to the owners following a procedure also outlined in the regulation…

Homeowners' association in Spain fined for displaying meeting minutes in building lobby with residents names and debts

— Susana Zamora | Sur in English | May 28, 2025

A Picture’s Worth 1,000 Words

• This is a classic.  Since when did homeowners become “co-owners”?

New Home Owner first impression with HOA — u/baskerballer0811 | Reddit | May 21, 2025

This is a Developing Story

• Oak Brook, Illinois: An HOA turns developer.

In an unusual move, the homeowners association of the 220-home luxury Midwest Club subdivision in Oak Brook paid $1.373 million in December to buy a house on a 2.6-acre parcel that adjoins the subdivision, and the association plans to subdivide the land into three lots, each of which will have access to a street inside the gated subdivision.

It is very rare — if not outright unheard-of — for a subdivision homeowners association to shell out capital to act as a developer. The Midwest Club was developed in the late 1970s on the site of the former 231-acre Midwest Country Club by Amoco’s American Growth Development Corp. subsidiary, which also developed the gated Oak Brook Club development and the gated Burr Ridge Club on the site of a former Boy Scouts training center…

Homeowners association of the Midwest Club in Oak Brook buys 2.6-acre parcel that adjoins the subdivision

— Bob Goldsborough | Chicago Tribune | May 23, 2025

Chapter 11 Continued…

• West Palm Beach, Florida: Continuing where we left off in Issue #114 with a condominium facing a 7-figure municipal debt.

There's a cautious sign of optimism at the Green Terrace Condominiums, as the HOA has made its first deposit to try and clear its multimillion-dollar debt with the city of West Palm Beach…

Wednesday marked the deadline for the HOA to demonstrate its ability to repay the nearly $4 million debt that has accumulated over the last decade.

Lopez reports that progress has been made: The HOA made a significant initial payment of $36,000 to the city, marking a small yet meaningful step towards addressing the daunting financial obligation and preserving residents' homes, for now…

…The HOA is required to make monthly payments of approximately $24,000.

However, failing to meet these obligations could once again place residents at risk of losing water service, throwing them back into a crisis situation.

In a recent statement, the HOA expressed its commitment to resolving the matter, assuring residents that it is doing everything within its power to address the issues at hand….

…Additionally, city planners are preparing to convene with creditors to discuss strategies for addressing the substantial debt still owed by the HOA.

Green Terrace condos HOA begins repaying debt to city. What's next for residents? — Joel Lopez | WPTV | May 28, 2025

Turn the Other Cheek?

• Murcia, Spain: Those who assault their neighbors pay the price.

The Provincial Court of Murcia has sentenced the president of a homeowners’ association in La Manga del Mar Menor to pay €14,000 in compensation to a neighbour he bit in the face during a violent argument over water damage.  The incident, which occurred in March 2014, left the victim with serious facial injuries, including the loss of park of his cheek.

In addition to the compensation, the court has ordered the defendant to pay €1,600 to the Murcian Health Service for the medical treatment provided to the victim.  The Injuries required nearly 100 days to heal and has resulted in long-term effects, including post-traumatic stress disorder, facial scarring and partial hearing loss.

President of HOA In La Manga Ordered To Pay €14,000 For Biting Neighbour's Face — Murcia Today | May 19, 2025

When Homeowners Attack

• Rehoboth, Delaware: Don’t settle your dispute with rocks or scissors.  Use paper!

Delaware State Police have arrested a 62-year old Rehoboth Beach woman on assault charges following what troopers are calling a homeowner's association (HOA) dispute on May 19, 2025.

Jennifer August allegedly began arguing with a contractor and another HOA member, who were clearing ivy off an easement fence on Black Duck Reach next to her property.

According to police, the argument escalated and August allegedly threatened one worker with a pair of scissors, threw debris at another contractor, and sprayed the HOA representative with an unknown liquid.

Rehoboth resident arrested in HOA dispute — Mike Phillips | WDEL | May 23, 2025

Environment

• Tokyo, Japan: One developer’s plan to reduce sound transmission through walls, ceilings and floors is paying off.  Check out our other coverage about noise.

...After debuting its first soundproof apartments in 2000, Livlan now operates nearly 900 units across 37 buildings in and around Tokyo. Since 2020, when Covid-19 forced everyone to spend more time at home, the company’s waiting list has grown from about 200 people to more than 6,000, says sales lead Daisuke Yamashita. That’s despite above-average rents: A 280-square-foot Livlan unit in Nakanobu in Tokyo’s Shinagawa neighborhood costs ¥128,500 ($854) a month, 45% more than the area’s ¥88,400-yen average...

...Neighbor noise is a common problem in Japan, where a government survey shows it accounts for 43% of all neighbor complaints at apartments. South Korea has also started to crack down on apartment buildings that don’t meet inter-floor noise standards...

...“The weaker our relationship with our neighbors, the more intolerant we become of their noise,” says Norihisa Hashimoto, professor emeritus at Japan’s Hachinohe Institute of Technology, whose research links neighbor disputes to loneliness and other measures of well-being. A government survey published in January found that nearly 70% of people in Tokyo have no interactions with their neighbors, a stark increase from 51% about a decade ago.

Chris Berdik, author of Clamor: How Noise Took Over the World and How We Can Take It Back (W.W. Norton, May 25), says there’s been “a massive increase in people’s desire for quiet,” pointing to silent airports and the rise of quiet travel. As the world grows noisier, and digital distractions proliferate, our brains burn energy sorting through various signals to find what matters, he adds...

...Back at Kusuda’s apartment building, the promise of silence is attracting tenants across ages and family types — but it’s particularly appealing for people who are at home often, or need to sleep at weird hours. A gamer might live next to a stock trader who might live next to a doctor with regular night shifts. And none of them can hear a thing...

Tokyo Real Estate Embraces Silence With Soundproof Apartments and Quiet Salons   (free 🔗) — Marika Katanuma | Bloomberg | May 16, 2025

• The catastrophe bonds market is expanding.  More cat bond coverage in Issue #’s 107, 106 and 101.

Hedge fund Fermat Capital Management expects the market for catastrophe bonds to grow 20% this year, as a product based on disasters gains ground in a world increasingly shaped by extreme weather, population density and inflation.

The market “has reached an inflection point,” John Seo, managing director and co-founder of Fermat, said in an interview.

“The key thing is inflation,” he said, which is making it substantially more expensive in Europe and the US to rebuild property that’s been destroyed by natural catastrophes.

Fermat’s growth prediction means the market for cat bonds, which are typically issued by insurers looking to offload extreme risk to capital markets, will reach roughly $60 billion by the end of 2025. 

The bonds have outperformed other high-yield markets in recent years, and even managed to sail through the turbulence triggered by US President Donald Trump’s tariff war. Against that backdrop, a product that was once the preserve of highly sophisticated investors is now luring a wider array of buyers…

Hedge Fund Fermat Sees 20% Surge in Catastrophe Bond Market — Gautam Naik | Bloomberg | May 14, 2025

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Charleson, South Carolina: Following up on our coverage from Issue# 111 where a 

Dockside Condominium and townhome residents received a notice to vacate in February due to a "potential structural issue" in the condominium tower, as stated by the Dockside Board of Directors.

Five appeals were filed by townhome owners, arguing "the order as the townhomes is without any engineering proof of being deficient or in danger from the tower should it collapse," according to the appeals stated on the meeting's agenda.

After some back-and-forth discussion between board members and applicants, the [Charleston Building Code Board of Appeals] ultimately decided to uphold the order…

Charleston board upholds vacate order, leaving Dockside Condominium residents in limbo — Jessica Klinger | WCIV ABC News 4 | May 05, 2025

• Milton, Delaware: This listing’s #1 selling point: no HOA.

Just listed: Almost an acre of ground with a mobile home and garage. This property has no restrictions except Sussex County rules. It features an updated well, but the septic system will most likely not pass inspection. The property, mobile home, and garage are sold as is, with no warranties, expressed, or implied and being sold for land value. Located just minutes away to Broadkill, Lewes, and Rehoboth beaches. It is priced to sell…

Almost an Acre of Ground with No Home Owners Association! — Bill CUllin | Cape Gazette | May 2025

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Is transparency a recipe for “How to Sell a Condo 101”?

Real-estate agent Jaclyn Bild was trying to sell a Miami condo recently when she got a request: Could a prospective buyer have a video call with the condo association president?

The interested buyer wanted to ask the board president about the building’s budget and whether there might be future costly repairs. Bild had never gotten such a request and, in the past, she thinks the association would have turned it down. But sellers of condos, and their real-estate agents, are having to put in more work in a market that has softened relative to single-family homes. She pushed to arrange the call.

“That meeting saved the deal,” she said. The buyer is now in contract for the condo in a 20-unit building. 

Condos around the country are getting a more critical eye. Prospective buyers are concerned about the possibility of higher bills because of major repairs and rising homeowners’ association dues. That piles on top of high prices and mortgage rates that are making homes of all types unaffordable. 

Units are taking longer to sell than they did a year ago. Sellers are less likely to get their original asking price. The number of condo sales was down 9% year-over-year in April, according to real-estate brokerage Redfin, even though the number of listings was up.

Sellers and their real-estate agents are finding that the most painless way to sell a condo is to be transparent about the state of the building’s finances. That might mean lowering the price to offset a current or future special assessment. It could also mean taking a lower price than identical units fetched just a few years ago…

How to Sell a Condo When the Market Is Working Against You   (free 🔗) — Veronica Dagher | WSJ | May 24, 2025

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Michigan and US: Condominiums remain the most affordable form of homeownership.  There are plenty of condominium units available and buyers for at least some of them.

There are a lot of reasons not to buy a condominium these days. Gordon Miller did it anyway.

He looked past the homeowners-association dues that are rising across the country, and the special assessments that more buildings are charging for major repairs. He acknowledged that a condo probably wouldn’t appreciate as quickly as a single-family house, and might eventually be tougher to sell.   What he found is that there are deals to be had for someone willing to stomach the risks. About 57% of U.S. condos that sold in April went for less than their original asking price, according to real-estate brokerage Redfin. 

Nationwide, the condo market lags behind the single-family home market in demand. There are good reasons for this in places like Florida, where the costs of ownership are surging. But the condo market doesn’t come with such extreme risks everywhere.  Consider Michigan, where Miller was looking. Condo prices are more affordable compared with the national average. Association dues rose less than in the country as a whole in April versus last year…

Is a Condo Really Worth It Right Now? This Buyer Decided to Take the Plunge — Veronica Dagher | WSJ | May 17, 2025

Built Environment

• Brooklyn, New York: A sleek design.

Architecture firm SO – IL has revealed plans for a new residential condominium project planned for Brooklyn's Fort Greene neighborhood. Named 144 Vanderbilt, the development offers 26 condominiums and amenities spanning almost 90,000 square feet. According to SO – IL, the architecture takes cues from Brooklyn's historical heritage, while incorporating a modern twist, as the staggered building prioritizes community interactions and comfortable urban living…

SO – IL Reveals Design for a New Residential Condominium Project in Brooklyn, New York — Maria-Cristina Florian | ArchDaily | October 03, 2024

• The US debt outlook is souring, consumer sentiment is falling and inflation expectations are rising.

…The firm attributed the downgrade to an increase in government debt, a move that clouds the nation’s status as the world’s highest-quality sovereign borrower. The firm joined Fitch Ratings and S&P Global Ratings in grading the world’s biggest economy below the top, triple-A position.

The move adds to compounding risks facing the US market as President Donald Trump’s sporadic tariff regime weighs on the economic outlook. Although the S&P 500 has recovered from the depths of last month’s rout, many Wall Street professionals remain skeptical of the advance as the toll of tariffs on business and consumer confidence threaten to show up in economic data in months ahead…

Wall Street Strategists React to Moody’s US Credit Rating Cut — Alexandra Semenova, Carmen Reinicke, and Anya Andrianova | Bloomberg | May 16, 2025

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The US was downgraded by Moody’s Ratings on Friday thanks to government debt that’s approaching a mind-numbing $37 trillion. It was a dramatic move that cast further doubt on the polarized nation’s status as the world’s highest-quality sovereign borrower. Moody’s lowered the US credit score to Aa1 from Aaa, joining Fitch Ratings and S&P Global Ratings in grading the world’s biggest economy below the top, triple-A position.

The one-notch cut comes more than a year after Moody’s changed its outlook on the US rating to negative. The federal budget deficit is running near $2 trillion a year, or more than 6% of gross domestic product, and Congressional Republicans are pushing through budget legislation that could add trillions of dollars more. “While we recognize the US’ significant economic and financial strengths, we believe these no longer fully counterbalance the decline in fiscal metrics,” Moody’s wrote in a statement.

US Credit Rating Cut Over Massive Government Debt — David Rovella | Bloomberg Evening Briefing | May 16, 2025

More about the decline in consumer sentiment…

Consumer sentiment dropped for the fifth straight month and is now down about 30% since December. Tariffs were spontaneously mentioned by nearly three-quarters of consumers, up from almost 60% in April.

The decline came as a surprise to economists. The preliminary May survey ran from April 22 to May 13. That period included announcements from the White House of trade deals with the U.K. and with China, developments that helped assure some investors and analysts that the trade war could be thawing. 

“Many survey measures showed some signs of improvement following the temporary reduction of China tariffs, but these initial upticks were too small to alter the overall picture,” said Joanne Hsu, the survey’s director. “Consumers continue to express somber views about the economy.”

Consumer Sentiment Falls to Second Lowest on Record — Chao Deng | WSJ | May 16, 2025

• IDAHO: In addition to a bill about towing, Idaho passed HB361 which:

  • restricts concurrent HOA Board service to one owner per lot (and by primary residence for associations with 20 or more homes)

  • prohibits that any single member can control over 50% of members’ votes by proxy

  • Prescribes more specific requirements for developer turnover

House Bill 361 — Homeowner’s associations, boards — Parrish Miller | Idaho Freedom Foundation | May 15, 2025

• MINNESOTA: Despite all the hubbub, legislators in the Land of 10,000 Lakes failed to pass a single bill this year directly related to condos, co-ops and HOAs.

• PENNSYLVANIA: The only piece of condo, co-op and HOA legislation moving forward this year has to do with clotheslines.

Pa. House to homeowners’ associations: Let residents line-dry their clothes

— Amy Worden | PennLive | May 15, 2025

• UTAH: The Beehive State is the latest to join the ranks of and put its own spin on ombudsperson programs.

Utah’s new HOA law: What Homeowners Associations need to know — Jazmynn B. Pok | Uth Business | May 22, 2025

• GERMANY: Setting limits on rent is a worldwide phenomenon and associations are getting involved.

Giving his first government statement to parliament on Wednesday, Chancellor Friedrich Merz (CDU) offered a pithy summary of his housing strategy:  "Build, build, build."

But while the new black-red coalition is pinning its hopes on building its way out of the housing crisis, it also wants to tackle rising rents with other means.

"Tenants must be effectively protected from being overburdened by ever higher rents," the CDU, CSU and SPD state in their pact. In concrete terms, this involves extending Germany's Mietpreisbremse (rent brake) until 2029 and clamping down on landlords who try and avoid it.

For property owners' association Haus und Grund, however, these regulations go much too far.  Around 60 percent of Germany's homes are let by private landlords, they say - and many of them are overburdened and overwhelmed.

"The limits of affordability for private landlords have been exceeded," association president Kai Warnecke told Spiegel.  "Unlike housing groups, private individuals cannot compensate for the massive increase in letting costs in any other way or pass them on."

German homeowners urge rent control exemption for private landlords — Imogen Goodman | The Local | May 15, 2025