06.20.24

ISSUE # 93

CIC Info Bytes 06/20/24

CIC Info Bytes are frequent, succinct updates providing educational and engagement opportunities that help your community thrive!  Please forward and share this newsletter with your peers, neighbors and colleagues so they can connect and join.  Our goal is to curate content that provides a robust basis for contextual understanding to support practical takeaways for you and your association.  Please consider following us on Twitter and Reddit. 

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View the Calendar

• Visit our homepage to view events and add them to your own calendar.

  • You can also view past events by rewinding that calendar.  Examples:

  • Colorado HOA Homeowners’ Rights Task Force

  • Hawaii Condominium Property Regime Task Force

  • North Carolina Select Committee on HOAs

The “Professionals” Don’t Know

• This article addresses perceived challenges with the vehicle parking protections enacted by Florida’s HB1203, but what’s most enlightening is the paragraph below encapsulating 

…“The lady said there’s a new state law going into effect in July that will allow me to park a pickup truck (in her driveway), so I don’t think the HOA should be fining me now,” Miller said. “We’re looking around saying, ‘What?’ We have professional staff that are HOA certified. We have attorneys that presumably look out for pending legislation. I’ve talked to people in other communities, and it’s the same story — they absolutely never heard about this.”

New bill could pose problems for East County homeowners associations — Lesley Dwyer | Your Observer | June 18, 2024

Outsourced and Offshored

• Offshoring community association managers (CAMs) is an obvious part of the management company endgame that values growth and profitability (reference Management Companies’ Top Priorities for 2024 in Issue# 91).  Next stop: offshoring + AI.

Was surprised to find out that our recently assigned manager is located out of the country. They are in a low labor cost country. In my recent interactions with this person I was surprised at their apparent lack of familiarity with our property. Now it makes sense!

Property Management Offshoring - Disadvantages? Advantages? — u/HittingandRunning | Reddit r/HOA | June 13, 2024

The New Normal

• Kanara, Ontario, Canada: Five to six-figure special assessments are the new normal as the trend moves from deferred maintenance to find it and fix it.

…In March, the 40 condo owners on Stratas Court near Eagleson Road learned repairs to railings and leaking glass solariums at the 40-year-old complex would cost them a total of $600,000.

Though warned last September that a special assessment was coming, the owners said they only learned the amount three months ago, and now have less than three weeks to pay their share…

…Braun said she'd only lived there nine months when she received the letter from Carleton Condominium Corporation 281 (CCC281) informing her that her share of the special assessment is $13,000, over and above her usual mortgage and condo fees.

Braun said she's now struggling to come up with the money, and was so unsettled by the unexpected charge that she's weighing another move…

Sudden $600K repair bill stuns condo owners — Stu Mills | CBC News | June 13, 2024

Skyrocketing Assessments in Missouri

•  Brentwood, Missouri: Brentwood Forest Condominium Association.  A perfect storm of foundation engineering and repair and property insurance has quadrupled assessments.

VIDEO: Condo owners in Brentwood complain about skyrocketing H.O.A. fees — Russell Kinsaul | First Alert 4 | June 05, 2024

More “Fee” Increases

•  Nashville, Tennessee: Assessments are NOT fees, but we digress…

A group of homeowners in Antioch are demanding an explanation from their Homeowners Association (HOA) after, they say, their HOA fees increased 75%.

Tammy Duvall, who lives at the Lenox Creekside Condominiums, said in the last several months, her HOA fee went from $145 to $255….

…WSMV4 previously covered a townhouse fire at the complex, which the property’s emergency responder said greatly impacted insurance costs.

However, homeowners like Duvall and Bartolovich would like to see financial statements and balance sheets justifying the HOA fee increase….

Antioch homeowners demand explanation after monthly HOA fees rise — Michael Warrick | WSMV4 | June 18, 2024

VIDEO: Man jumps from second story to escape townhouse fire — Tony Garcia, Joylyn Bukovac and Marissa Sulek | WSMV4 | January 13, 2023

Average Assessments by Geography

• Read why you should take these "averages" with a grain of salt.

How Much HOA and Other Fees Will Cost Homebuyers in 14 Cities — Laura Beck | Yahoo! Finance | June 08, 2024

Hole in the Pavement, Chasm in the Records

• Charlotte, North Carolina: The Village at Mill Creek HOA.  Cusick management company.  Oddly, the association’s attorney does not seem to understand the ordinary meaning of the plain language established in § 47F‑3‑118.

Residents at the Village at Mill Creek called WBTV after fighting to get the hole fixed but not getting any results. The townhome owners have seen their monthly assessments increase by over $50 per month since 2020.

“The rates keep going up from the homeowners, but the services seem to be stagnant or disappearing,” Cyril Dosato told WBTV….

…An attorney communicating on behalf of The Village at Mill Creek Townhomes Association wrote in an email that “The repairs to Calpella Court are being pursued as quickly as Association funds allow” and “members tend not to support large increases in assessments, even when there are substantial repairs that need to be made.”...

…“Owners are not entitled to review every record of the Association. For example, owners have no right to review individual bank statements, invoices or receipts.”...

VIDEO: Charlotte HOA failing to fix massive hole in parking lot — David Hodges | WBTV | June 18, 2024

County Government Engagement in Maryland

• Anne Arundel County, Maryland held its first ever “Community Association Summit” and plans to start a web series and hold annual meetings hereafter.

VIDEO: Community Association Summit In Anne Arundel County — Fox45 News | June 12, 2024

Municipalities Don’t Want Your Private Streets

• Washington City, Missouri: The Turtle Creek HOA wanted the City to take charge of its streets.

…City Administrator Darren Lamb sent a letter May 14 to the Turtle Creek Homeowners Association stating the city was turning down the request for several reasons including lack of right-of-way and lack of compliance with city zoning if right-of-way could be obtained. The streets in the subdivision were approved by the city on the premise that they were to be private, and therefore not built to city specifications, the letter notes…

…“The question becomes, is it fair to go ahead then and adopt a problem, that we knew and everybody agreed to up front, that this was always going to be maintained privately and the city didn’t have any interest in it?” he asked…

City rejects request to take over private streets — Jonathan Riley | emissourian | June 07, 2024

Board President Steals over $150,000

• Union City, New Jersey: Yet another example of fraud and embezzlement in community associations.

 The Hudson County Prosecutor’s Office has announced the arrest of Eric Li, a 39-year-old resident of Jersey City, on charges of theft from a Union City homeowners association. Li, who served as the president of the association’s board, is accused of misappropriating over $150,000 in funds for personal use.

The arrest was made by the Special Investigations Unit on Monday, June 17, 2024, following a detailed investigation into the financial activities of the homeowners association between 2017 and 2023. Li is charged with one count of Theft by Unlawful Taking, a second-degree crime under N.J.S.A. 2C:20-3a…

Union City Homeowners Association President Charged with Theft — Shore News Network | June 19, 2024

Unraveling The Hammocks: Attorneys Settle Claims

• Even the association’s attorneys were in on it.

The Hammocks is settling for $3.5 million another lawsuit against the homeowners association’s former law firms.

The firms had allegedly waged a battle against investigators who were looking into allegations of fraud against an ex-HOA president. The settlement, which isn’t final until approved by the judge, marks the fourth with former HOA attorneys in the wake of an alleged massive scheme by former board members to pillage association coffers…

…Last year, [court-appointed receiver] David Gersten sued law firm Rasco Klock Perez & Nieto and attorney Hilton Napoleon II, as well as his law firm, Hilton Napoleon II P.A., for legal malpractice and unjust enrichment. Former HOA leadership had retained Rasco Klock and Napoleon from 2020 to late 2022 to help with litigation against investigators who were checking into Gallego’s dealings, and to push back in court against subpoenas for HOA records. 

Hammocks Settling Suit Against Ex-HOA Attorneys — Lidia Dinkova | The RealDeal | June 14, 2024

Attorneys Should Know These Things

• Kelly Richardson has done a good job with his recent lists of wisdom.  Also see Issue #91.  Here are some highlights that apply to managers and attorneys:

  • If you see something… say something.

    1. Why is it that owners and other board members are so disturbed when their peers say something?  When did saying something become the problem?  When did making routine observations about how to potentially correct or improve a situation become a bad thing?  It's bizarre, until you recognize this is how situational rationalization begins.  Remember satisficing, mental shortcuts and major group decision defects?

  • Clients need answers, not just options. It is helpful to explain the benefits and drawbacks of the various options, but they require you to tell them which is best.

  • It’s OK to say no. The paramount obligation of the HOA attorney is to provide ethical and competent advice for the HOA’s best interests, not to facilitate the client’s desires. 

  • Encourage boards to designate two points of contact for questions and assigning tasks – the manager and a director. However, respond as much as possible to the entire board. This demonstrates to the board that counsel’s loyalty is to the HOA and not to the president, the manager, or any other individual.

  • Encourage alternative dispute resolution and gentle escalation.

HOA Homefront: 14 things I wish all HOA attorneys knew — Kelly G. Richardson | The Sun | June 14, 2024

HOA Homefront: 17 things I wish all HOA managers knew — Kelly G. Richardson | The Orange County Register | May 31, 2024

HOA Homefront: 18 things I wish all HOA members knew — Kelly G. Richardson | The Orange County Register | May 24, 2024

Got Volunteers?

• Condo Connection features an entire page dedicated to volunteering.  Bring.  It.  On.

Do we have any volunteers? South Florida condo associations struggle to find directors — Gabriella M. Ruiz | Miami Herald | May 13, 2024

Development Pushback

• HOAs punching outside their boundaries…

Boise City Council approves 2 hotels near airport. Homeowner's association pushes back — Emily White | Idaho Press | June 08, 2024

Rooftop Relaxation: Don’t Do This

• Condominiums with penthouse units sometimes have a major downside: people can easily climb over railings and onto the roof.  Hanging out on the edge is dangerous.  You should never do this. 

• No more bailouts for properties in the way of climate change…

…Big money is finally waking up to the fact that climate change is a gigantic problem. Property is the world’s greatest store of wealth, with a total value just shy of $380 trillion. This is four times global GDP. But there’s a new kind of toxic asset emerging in property portfolios. The number of homes in what you might call “subprime” locations is rising and, in some parts of the world, property value—like a crumbing coastline—is at risk of erosion. Lenders are getting noticeably more reluctant to lend against these assets. No wonder. In the Asia-Pacific region, nearly one in 10 properties owned by real estate investment trusts could be at “high risk” of climate-change-related damage—particularly those on seafronts, a report from climate risk consultancy XDI announced in May.

“Some communities are just going to become much more expensive to preserve,” says Dave Burt, founder and CEO of DeltaTerra Capital. “There’s a gravitational pull on the value of those properties.” Some banks are starting to highlight climate risk to borrowers. HSBC’s UK website, for example, has a page about how climate change could affect people’s mortgages. But Burt argues that buyers aren’t always being told about the medium- and long-term risks, nor are they necessarily having the amount they borrow scrutinized in terms of how their home might plummet in value in the coming years…

…“As the damages pile up, it could well be that the markets will become more efficient and the incentives [to harden properties] become stronger—because nobody’s bailing you out anymore,” says Ralf Toumi at Imperial College London, who consults for insurance firms…

Banks Are Finally Realizing What Climate Change Will Do to Housing — Chris Baraniuk | WIRED | June 17, 2024

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Stronger winds and more northerly tracks = more destruction from hurricanes.

The Financial Impact of Shifting Hurricanes Patterns in our Changing Climate — FirstStreet |  June 12, 2024

The condominium property insurance meltdown story started around 2 years ago.  When will it end?

Board members of the Highland Park Community Association in Mission Viejo, Calif., braced last year for a rise in insurance costs.

Yet they were still shocked to receive a quote for over $170,000, which was more than four times what the association paid in 2022. Another 12 insurers declined to offer quotes, because wildfire risk has made insurers less willing to do business in California. 

The new policy provides up to $70.9 million in property coverage to this community of 208 townhomes and condominiums. But in the case of wildfire damage, the maximum coverage would be $2 million, said Mark Speros, the board’s president.

“It was like a bombshell,” he said…

Big Jump in Insurance Costs Strikes Condos — Nicole Friedman | WSJ | June 17, 2024

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Country Club Hills, Illinois: Country Club Homes Townhome Association.  The city’s water main burst in January 2024.  The association and its insurance are on the hook for some repairs that are dragging on.   The owner of this unit received $37,000 from her policy that has now been exhausted.

…The manager for the homeowner's association declined to comment. An attorney for the HOA said, "The matter is being investigated by the HOA to determine its legal rights relative to repairs to the common elements. Insurance claims have been submitted."...

VIDEO: Chicago area residents' homes still uninhabitable months after water main break — Lauren Victory | CBS Chicago | June 17, 2024

• Sea level rise = property value decline.  Check out NOAA’s Sea Level Rise Viewer.

As sea levels rise and storms intensify, coastal real estate is seeing flooding and erosion like never before. From Dana Point, California, to Long Island, New York, and Nantucket, Massachusetts, some of the nation’s priciest coastal real estate is in an increasingly precarious position due to climate change.

This year’s hurricane season is already underway, and the forecast is for “above-normal” activity, according to the National Oceanic and Atmospheric Administration (NOAA). It predicts up to 13 hurricanes, with four to seven categorized as “major” storms.

Various risk models have shown myriad projections for falling real estate values, but the effects of climate change are already hitting the market — and at a faster pace than most expected.  

A Nantucket home listed last summer for just over $2 million sold early this year for just $600,000. A barely remarkable Nor’easter in the fall wiped away an astounding 70 feet of the beach it sits on, thanks to sea level rise and unusually intense rainfall…

Luxury homes on these beaches are losing value fast, as effects of climate change hit hard — Diana Olick | CNBC | June 14, 2024

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While we wait for the end of title insurance costs as we know them, perhaps there are ways to save?

...As housing has become more and more expensive, homebuyers are looking for savings across the real estate transaction, including through closing costs and soon real estate commissions. Title insurance is among the add-ons that have come under more scrutiny.

The cost of a title insurance policy is typically pegged either to the rate of the title agency or the rate established by the state government, as a dollar amount per $1,000, and then multiplied by the purchase price. So the more expensive the home, the costlier the policy. According to the Urban Institute, the average premium on a $400,000 property is $2,000....

...Potential ways to save: 1) shop around, 2) ask for the reissue rate, 3) request information from the seller and 4) negotiate a discount.

Homebuyers can’t avoid title insurance. But there are ways to save — Michelle Lerner | The Seattle Times | June 08, 2024

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The cost of owning a home in the US has increased 26% since 2020, as expenses including taxes, insurance and utilities all soared during a period of high inflation across the economy.

The average annual outlay for owning and maintaining a typical single-family home — not including mortgage payments — totaled $18,118 in March, the personal finance website Bankrate found. That works out to $1,510 a month, roughly $300 more than four years earlier, when pandemic lockdowns began.

The calculation is based on Redfin’s March median sales price of $436,291. 

Homeownership Costs in US Jumped 26% Since Pandemic Began — Jennifer Epstein | Bloomberg | June 09, 2024

Study: Typical Single-Family Home Costs Over $18,000 In Hidden Expenses — Alex Gailey and Jeff Ostrowski | Bankrate | June 10, 2024

Read this story for an abbreviated history of the penthouse view.

The status of penthouses changed around 1920, according to Alpern, when publisher Condé Nast convinced the landlord of 1040 Park Avenue to scrap the maids’ rooms planned for the roof and incorporate the space into his top-floor apartment. Nast loved to entertain, and his apartment eventually sprawled to 30 rooms and a ballroom, minting the idea of penthouse living as a glamorous, cosmopolitan thing.

Is a $199,000 Penthouse on E. 84th a Bargain or a Bad Idea? — Kim Velsey | Curbed | June 18, 2024

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…Much of the worry over US commercial property has legitimately centered on the office market, where more than $38 billion in buildings were in distress as of March, compared with about $10 billion for apartments, according to MSCI. But multifamily buildings make up the biggest share of properties with potential distress — exceeding even offices — with more than $56 billion worth of real estate at risk of financial trouble, the firm’s data show.

And unlike office buildings, largely backed by major financial institutions, much of the unraveling is centered on personal investors.

Real Estate Investors Are Wiped Out in Bets Fueled by Wall Street Loans — Prashant Gopal, Patrick Clark and Scott Carpenter | Bloomberg | June 18, 2024

Built Environment

• CULTURE SHOCK: Only in Japan!

A Japanese property developer has decided to raze a newly built condominium in west Tokyo after people living in nearby buildings complained that it blocked their views of Mount Fuji.

The 10-storey Grand Maison Kunitachi Fujimi Dori, consisting of 18 units sold for 70 to 80 million yen per apartment, according to Kyodo News.

Construction on the condominium, 10 minutes by foot from the Kunitachi railway station, began in January last year.

Developer Sekisui House adjusted the original blueprint after feedback from the neighbours, lowering each storey’s height and reducing the building from 11 storeys to 10.

Despite these changes, the developer said it will demolish the condominium due to “insufficient consideration for the impact on the scenery”...

Tokyo to lose newly built condominium blocking Mount Fuji view — Maroosha Muzaffar | The Independent | June 13, 2024

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From convents to condos.

Condo project remakes school and convent site in Frederick, Md. — Amb Worden | The Washington Post | June 12, 2024

More commercial property lending failures could mean more residential conversions.

…“The real wave of distress is just starting” for lenders to everything from malls to offices, John Murray, Pimco’s head of global private commercial real estate team, said in an interview. His division sits within Pimco’s $173 billion alternatives business…

Pimco Warns of More Regional Bank Failures on Commercial Property Pain — Laura Benitez | Bloomberg | June 11, 2024

• Uncomfortable debt is an understatement.

Bond industry leaders see a bleak US fiscal outlook that will keep debt growing and sustain elevated long-dated Treasury yields.

Speaking during a panel discussion at the ISDA/Sifma Treasury forum in New York Wednesday, market participants said spending cuts and tax increases that would address concerns of growing Treasury debt supply remain unlikely — regardless of who wins November’s presidential election. The most worrying scenario, they said, is a clean sweep by one party taking control of the White House and both chambers of Congress.

“No matter what the election result is, when you fast forward five to 10 years, the fiscal direction is not comfortable,” said Jason Granet, chief Investment Officer at BNY Mellon.

Rising US Debt Load Poses a Growing Risk for Treasury Market — Michael Mackenzie and Liz Capo McCormick | Bloomberg | June 05, 2024

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As lawmakers grapple with increasing defense demands and spending on social safety net programs, the Congressional Budget Office projected Tuesday that the federal debt will equal 122 percent of the United States’ annual economic output by 2034, far surpassing the high set in the aftermath of World War II.

The deficit will swell to $1.9 trillion this fiscal year and keep growing until the overall national debt hits $50.7 trillion a decade from now, Congress’s nonpartisan bookkeeper said in its latest report. The group revised its forecast from four months ago, when it projected that the debt would reach $48.3 trillion in 2034, and 116 percent of economic output.

The new figures add to the urgency facing policymakers in 2025 — and on the campaign trail — to tackle the nation’s financial health. Next year, vast portions of the tax code are set to expire, potentially forcing a steep tax hike on individuals and families. Congress suspended the debt limit in 2023, but that, too, will expire next year, setting up a showdown between the two parties over federal spending…

National debt will exceed $50 trillion by 2034, budget watchdog estimates — Jacob Bogage | The Washington Post | June 18, 2024

Inflation and Monetary Policy

• The FOMC now projects only 1 rate cut through the end of 2024.

Federal Reserve officials penciled in just one interest-rate cut this year and forecast more cuts for 2025, reinforcing policymakers’ calls to keep borrowing costs high for longer to suppress inflation.

Officials voted unanimously to keep the benchmark federal funds rate in a range of 5.25% to 5.5% — a two-decade high first reached in July. But policymakers signaled they now expect to cut rates only once this year, compared to the three reductions forecast in March, according to the median projection.

They now see four cuts in 2025, more than the three previously outlined…

Fed Officials Dial Back Rate Forecasts, Signal Just One '24 Cut — Jonnelle Marte | Bloomberg | June 12, 2024

SCOTUS Go-To

• A fantastic resource for SCOTUS cases.  Oyez Supreme Court Cases

Decision for the Christmas Lawyer

• You may recall Battles on Multiple Fronts from Issue# 82.  The 9th Circuit found that the district court abused its discretion, reversed its entry of judgment as a matter of law, its grant of a new trail, and its order of conditional remittitur and remands with instructions to enter judgment on the jury’s verdict and to re-examine the counterclaim in light of the jury’s findings.

Summary from the Opinion: The district court denied summary judgment, and the case went to trial. The jury agreed with the Morrises and awarded them $60,000 in compensatory damages and $15,000 in punitive damages. Post-trial, the district court granted judgment as a matter of law (“JMOL”) to the HOA. We affirm in part and reverse in part. 

…The Morrises alleged that the HOA’s resistance to their Christmas program constituted religious discrimination. They argued that the HOA selectively enforced its rules to obstruct their event, pointing to a letter from the HOA that expressed concerns about non-Christian residents and potential legal costs. A jury initially ruled in favor of the Morrises, awarding them compensatory and punitive damages for violations under the Fair Housing Act (FHA), which protects against discrimination in housing based on religion.

…In the majority opinion, Judge Berzon affirmed that a reasonable jury could indeed find that the HOA interfered with the Morrises’ enjoyment of their home due to religious discrimination. She highlighted the HOA’s letter that mentioned concerns about non-Christian residents as indicative of potential bias. Consequently, the case was remanded for a new trial on the claim of interference under § 3617 of the FHA.

This case underscores the delicate balance between community governance and individual religious freedoms. It illustrates the challenges homeowners associations face in maintaining communal harmony while respecting residents’ rights to religious expression. As the case returns to the district court, it will further test the extent of the Fair Housing Act’s protections against religious discrimination, setting a precedent for similar disputes in suburban America...

A Festive Fight: 9th Circuit Rules on HOA’s Christmas Conflict — ReligiousLibertyTV | June 18, 2024

19-35390: Jeremy Ray Morris and Kristy Morris versus the West Hayden Estates First Addition Homeowners Association, Inc. 

9th Circuit Court of Appeals | June 17, 2024

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In September 2001 the Shoreline Towers Condominium Association adopted rules for the hallways of its building at 6301 North Sheridan Road in Chicago. The rules provide, among other things, that "[m]ats, boots, shoes, carts or objects of any sort" may not be placed outside owners' doors. The rules also prohibit signs on doors or in hallways. Lynne Bloch, who was on the association's board and chaired the committee that devised these rules, did not imagine that they would affect the mezuzah on the doorpost of her unit. For several years they did not. But when the hallways were repainted in 2004 all mezuzot and other religious signs and symbols were removed. Bloch affixed another; the association had it, too, removed, in reliance on the rules.

06-3376: Bloch v. Frischholz | 7th Circuit Court of Appeals | November 13, 2009

Bloch v. Frischholz Amicus Curiae Brief — Department of Justice

Bring your Chickens…Almost

• Austin, TX: It’s CAI vs. Farm and Ranch Freedom.  Covenants generally control, BUT…

…So is this the end of the road for residents who want to raise chickens in an HOA that doesn’t allow it?  Not exactly. There are two separate Right to Farm laws in Texas: the Right to Farm Act and the Right to Farm constitutional amendment, known as Proposition 1.

“Proposition 1 states the people have the right to engage in generally accepted farm ranch, timber production, horticulture or wildlife management practices on real property they own or lease,” Timothy said, reading from the amendment which passed last year.  Voters added Proposition 1 to the Texas Constitution in November. While the Right to Farm laws have similar goals, Proposition 1 is phrased broadly, stating “the people” have a right to farm.

Judith McGeary, executive director of the Farm and Ranch Freedom Alliance, said the amendment could be interpreted to mean everyone is allowed to farm with no exceptions.  “There is at least a very good case to be made that an HOA is prevented from bringing any kind of an action to restrict an agricultural operation, which could include all of these backyard operations,” she said.

McGeary tried to get a separate bill passed to allow people to raise chickens under an HOA twice. In 2023, the backyard chicken bill passed through the state House of Representatives by a vote of 125 to 21, but it died in committee…

Can Austin residents raise chickens if their homeowners association doesn't allow it? — Melody Jones | KUT 90.5 | June 13, 2024

Material Alterations: Removing Tile from Unit Balconies

• Florida:  718.113 provides protections against “material alteration” and “substantial additions” to the common elements, but arbitrators have recognized a “maintenance exception.”

…However, arbitrators recognize several exceptions to the material alteration rule. One of those exceptions is the “maintenance exception.” Arbitrators have ruled that when a condominium is making an otherwise material change not for the purpose of solely changing the form or appearance of the property, but instead in furtherance of the association’s maintenance responsibilities, it does not constitute a material alteration and does not require a membership vote.

One of the classic cases involved a Chattahoochee pool deck that was replaced with paving stones. The association decided to remove the Chattahoochee because they found it made maintaining the pool plumbing nearly impossible, and it was also extremely difficult to repair. The paving stones made fulfilling the association’s maintenance function a lot easier and less costly. The arbitrator agreed that this change, while certainly a meaningful change in the appearance of the pool deck, did not require a membership vote…

When condo board moves to ditch tiled balconies in favor of concrete, do owners get vote? — Ryan Poliakoff | Palm Beach Post | June 16, 2024

Balconies Beware

• Unit balconies have collapsed from coast to coast across the United States.  California addressed balcony safety a few years ago with SB721.

On the second day of vacation with his wife and kids, David Casey was sipping a glass of pinot noir, taking in the view of the beach and ocean at night from the balcony of a rented condo in Seacrest in the Panhandle.

As Casey leaned against the wooden railing on the third-floor unit, it suddenly gave way — “the next thing I knew, I was falling to the ground,” he said — and he plummeted backward into sand dunes and foliage below. The avid golfer and daily jogger from Atlanta was badly injured in that fall eight years ago this month.

So began the Casey family’s years-long legal odyssey to answer a question of interest to condo owners and renters across Florida: Who is responsible for the upkeep and safety of balcony or deck railings — the developer? The unit owner? The condo association?..

Anatomy of a fall: Florida condo case to decide who to blame for dangerous balcony — Debra Garcia | Florida Politics for Fresh Take Florida | April 08, 2024

Violation Drones?

• Houston, TX: No drones here…

…Homeowners can allow drones to be used to collect information, for example to insurance companies. According to real estate attorney Richard Weaver, "Texas law prohibits anyone from using drones for surveillance, but homeowners waive their rights if they give anyone consent to fly drones over their property or to peek into their backyards."

But if a homeowners association flies a drone to collect information with the intention of issuing citations in Texas without the homeowner's consent Weaver says, "That is surveillance and that is illegal."...

Homeowners associations in Texas can't fly drones to spot potential fines — Amanda Stevenson | KHOU 11 | June 05, 2024

Flag Drama: Beyond the Stars and Stripes

• Want to bare your soul to the neighborhood?  Plant your flag.

Flag-flying is a long-standing if unevenly observed practice in the United States, and has evolved from classic stars and stripes to sports teams to more pointed political messages. Perhaps no home decor communicates as much about you to others as the flags you display — how you vote, what you believe, what you care about — and flag sellers have a unique window into the passion (and vandalism, and neighborhood spats) flags can inspire.

Flag drama is not just for Supreme Court justices — Rachel Kurzius | The Washington Post | June 07, 2024

Covenants Prevent ADUs

• Also see HOAs vs. Affordable Housing in Issue# 64.

The Town of Snowmass Village is pausing an effort to update its accessory dwelling unit requirements after the Snowmass Homeowners Association said the regulations would not apply to the nearly 900 homes in the association…

…“The primary goal is if somebody wants to provide an extra 1,000 square feet on their home for an employee unit, we should allow that to happen; that’s the goal we’re aiming for,” said Town Manager Clint Kinney….

…But Paul Taddune, attorney for the Snowmass HOA, said the HOA’s covenants for the 874 homes it governs wouldn’t allow the construction of an ADU.

“The association covenants don’t allow duplex use, even though you’re not going to call it a duplex,” he said…

Snowmass HOA rules could impact new accessory employee unit requirements — Lucy Peterson | AspenTimes | June 05, 2024

Condominium Adjacent

• Governmental immunity is strong.

The Colorado Supreme Court clarified on Monday that litigants may not use a judicial doctrine focused on breaches of contract to sue municipalities for negligently constructed housing, effectively sidestepping the broad immunity state law provides to government entities.

The Colorado Governmental Immunity Act, with limited exceptions, shields public entities from lawsuits over injuries they cause. Its purpose is to protect tax dollars and prevent a flood of lawsuits from disrupting government services.

However, the condominium association for Burlingame Ranch II, an affordable housing community the city of Aspen developed itself, believed it could hold the city responsible for construction defects in a different way. Instead of claiming negligent construction, which the CGIA would block, the association argued the city breached its contract with homebuyers by not addressing the defects.

The state's Court of Appeals believed that was a viable approach, but the Supreme Court stepped in and quashed the condo association's legal theory…

Colorado Supreme Court shoots down condo association's lawsuit against Aspen for construction defects — Michael Karlik | Colorado Politics | June 18, 2024

22SC293: City of Aspen v. Burlingame Ranch | Colorado Supreme Court | June 17, 2024 

• COLORADO: 2024 HB1337 includes significant changes to address abuses of attorney collection, foreclosure and enforcement actions that are bizarrely disproportionate to reasonable remedies and that have, in too many cases, cost owners their homes.  HOA United obtained a key records disclosure from the State of Colorado, assembled the data and provided testimony to the HOA Homeowners’ Rights Task Force and to Representative Ricks.

• FLORIDA: We did not previously highlight HB1645 which is a bill that does much more than update Florida 720.3075(3).  More on HB1021 as it was signed into law on June 14 and becomes effective July 1, 2024 and also HB1203.

Client Alert: Governor DeSantis Signs HB 1645 (2024), Prohibiting Homeowners Associations from Limiting the Use of Certain Fuel Sources or Appliances Using Those Fuel Sources

The Florida House passed a bill to prevent offshore wind energy and remove references to reducing greenhouse gas emissions

— Jim Saunders | WMNF 88.5 FM | March 07, 2024

Florida condo owners get more rights in bill signed Friday by Gov. Ron DeSantis — David Fleshler | South Florida Sun Sentinel | June 14, 2024

DeSantis signs condo bill. Some unit owners are threatening to sue. — Alexandra Glorioso | Tampa Bay Times | June 15, 2024

Curbing the Karens: Florida reins in over-mighty homeowners’ groups — Richard Luscombe | The Guardian | June 10, 2024

Yes, new Florida law places limits on reasons HOAs can fine you — Josh Sidorowicz | WTSP | June 12, 2024