10.03.24

ISSUE # 100

CIC Info Bytes 10/03/24

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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  • Greeley to host HOA workshop in early October

California: Strong words by the AG regarding the ExxonMobil lawsuit.

California Attorney General Rob Bonta: Well, since the 70s, for decades, they have been telling the world, Americans, Californians, that plastics are recyclable and are being recycled, and that consumers can participate in a single-use throwaway culture, and it's OK because all those plastics that you throw away will be reclaimed, recycled, will show up in someone else's household as a useful plastic product, utensil or a container or something else.

And that is absolutely false. And in many occasions, most occasions, the item is completely not recyclable and never going to be recycled…

…So they promise this circular recycling experience for their plastics through advanced recycling. They can take any plastic, they say, and it'll come back into your household as a useful plastic product.

A water bottle will come back as another water bottle or maybe a container or utensil, something else useful. And it's just not true, and they know it. Only 8 percent of the plastics that they recycle through advanced — so-called advanced recycling are actually turned into recyclable material.

Advanced recycling is not a solution. It is another lie that they are telling. It is completely predictable that they're telling it, because that's what they have done for decades. But it's a lie…

…And so [ExxonMobil is] one of the biggest liars, one of the biggest deceivers that have been engaged on their own and through their trade industry front groups perpetuating this myth of recycling…

VIDEO: California sues ExxonMobil, saying company deceived public about plastics recycling

— Amna Nawaz, Stephanie Kotuby and Alexa Gold | PBS Newshour | September 23, 2024

California Sues ExxonMobil Over Plastic Recycling Claims — Patrice Taddonio | PBS | September 24, 2024

California accuses ExxonMobil of lying about plastics being recyclable — Allyson Chiu | The Washington Post | September 23, 2024

• Earth movement and landslides

When Nic and Alison Grillo bought their home seven years ago in the Seaview neighborhood of Rancho Palos Verdes, Calif., south of Los Angeles, Nic knew that the wider Palos Verdes Peninsula had multiple landslide zones. He grew up there.

But he had never heard of any issues happening in Seaview itself. An adjacent neighborhood, called Portuguese Bend, is where there had been slides since the 1950s. Nic studied the geologist’s report he received and hired an inspector before closing on their four-bedroom, 1,800-square-foot, 1956 ranch house for $1.195 million. “I felt comfortable buying,” he says.

Then, in the summer of 2023, his neighborhood started coming apart. 

Today, there are foot-long cracks on the outside and inside of his house. Since June, two houses nearby have partially collapsed due to landslides and have been deemed unsafe; others were abandoned by owners spooked by the constant creaking of their houses as they were pulled apart by the ground crumbling beneath them. Power and gas were cut off in September, and some worry the sewage system will be next, which would mandate evacuation…

…Although some state legislatures, such as in Pennsylvania, are working to address the lack of financial recourse for slide victims, no measures are currently underway in California. If the area were declared a major disaster by President Biden, it would trigger access to emergency funds for individual homeowners via the Federal Emergency Management Agency, but the state of California hasn’t yet requested this declaration, saying the current situation doesn’t meet federal requirements for such action. 

As a result, owners who don’t want to declare bankruptcy must still pay their mortgages, property taxes—barring a reassessment, which can sometimes take months—homeowner association and other fees, even if their home, and the land it sat on, no longer exists. For those whose homes are damaged, owners are left with few options except to either walk away or stay put and hope their home doesn’t sustain any further damage. Others believe the landslides will abate at some point in the future and trust that they will be able to sell their home when potential buyers simply forget about the landslide threat…

Landslides Swallowed Up Houses in California. Owners Still Have to Pay. — Nancy Keates | WSJ | September 19, 2024

As high temperatures break records around the US and wildfires rip through the West, another climate-driven weather hazard — extreme rainfall — is pummeling the country’s Northeast and scientists say it will get worse as the climate changes. That will bring more rain-induced flooding to a region of millions that isn’t prepared.

The latest example played out on Aug. 18, when a slow-moving storm system approached Northeastern states from the Great Lakes. A patch of low pressure high above Connecticut and New York drew all that wet air upwards, creating perfect conditions for rain. Remnants of Hurricane Ernesto also arrived, slowing down the movement of air masses across the region into a kind of “traffic jam,” according to AccuWeather Inc. 

“The situation itself wasn’t all that unusual,” said Tom Kines, a senior meteorologist at AccuWeather. “It just happened to be the kind of the worst-case scenario where you get heavy thunderstorms over one area for an extended period of time.”

The outcome was anything but usual. Within 12 hours, the area saw two 1,000-year rainfalls — events that have a 0.1% annual chance of occurring — only 35 miles apart.  “Some areas picked up two or three months’ worth of rain,” Kines said…

Extreme Rain Is a Growing Climate Threat to the Northeastern US — Eric Roston | Bloomberg | August 27, 2024

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More than 40 trillion gallons of rain drenched the Southeast United States in the last week from Hurricane Helene and a run-of-the-mill rainstorm that sloshed in ahead of it — an unheard of amount of water that has stunned experts.

That's enough to fill the Dallas Cowboys' stadium 51,000 times, or Lake Tahoe just once. If it was concentrated just on the state of North Carolina that much water would be 3.5 feet deep (more than 1 meter). It's enough to fill more than 60 million Olympic-size swimming pools...

...Private meteorologist Ryan Maue, a former NOAA chief scientist, calculated the amount of rain, using precipitation measurements made in 2.5-mile-by-2.5 mile grids as measured by satellites and ground observations. He came up with 40 trillion gallons through Sunday for the eastern United States, with 20 trillion gallons of that hitting just Georgia, Tennessee, the Carolinas and Florida from Hurricane Helene...

Helene and other storms dumped a whopping 40 trillion gallons of rain on the South — Associated Press | October 01, 2024

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Fort Lauderdale, Florida: More condominium evacuations.

Residents of a condo in Fort Lauderdale have been forced to leave their building after a structural engineer reportedly deemed it unsafe.

The last-minute notice happened as Hurricane Helene is set to make landfall in Florida.

Residents of Springbrook Gardens at 125 North Birch Road were told to evacuate, Thursday…

…“This morning when we got up, we got a letter from the engineer being sent over to the city telling the city to come down to evacuate us immediately because the winds are more than 35 miles an hour and the wind may blow it down,” said Thomas Murphy, HOA president.

The building was built in the 1940s and was converted into a condo building in 1978.

According to Fort Lauderdale Fire Rescue, about 12 residents are displaced by the evacuation notice…

Residents forced to evacuate Fort Lauderdale condominium after building reportedly deemed unsafe

— Jessica Holly, Tynisa Senior, Chantal Cook and Alex Browning | WSVN 7 | September 26, 2024

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Galveston, Texas: This roughly 30-mile-long barrier island, an hour’s drive from Houston, is a powerful testament to humans staring down nature and refusing to yield…

Today, the island is booming. Galveston’s population has grown, home sale prices have more than doubled since 2011 and developers see more potential — even beyond the island’s existing fortifications.

The sea wall protects only about a third of the island. Where it ends, two luxury condominium projects have been proposed along one of the fastest-eroding stretches of beach.  At the same time, here as across much of the South, the threat from the sea is intensifying…

As Galveston faces rapid sea level rise, developers plan new condos — Chris Mooney, John Muyskens and Brady Dennis | The Washington Post | September 23, 2024 

…In California, for example, more than 50% of homeowners said they or the area they live in has seen insurance prices increase from a year earlier, according to a survey conducted by Redfin in the spring. In Florida the rate was even higher, at 70%, while 12% of respondents reported being dropped by their insurance company.

One reason may be the growing threat posed by extreme weather and other climate-related risks. 

“Mounting insurance costs and natural disasters are prompting some people to relocate,” according to the Redfin study. It found that Floridans who plan to move house in the next year were twice as likely as Americans overall to cite the higher price of insurance as a reason.

Rice said that recent increases in insurance premiums are “unprecedented” for the industry. He said the LexisNexis data shows that middle-aged and older Americans are especially likely to be shopping for alternative policies, potentially a sign of financial stresses among those age cohorts… 

Americans Shop Around for Insurance More Than Ever as Costs Soar — Alexandre Tanzi | Bloomberg | August 27, 2024

70% of Florida Homeowners Have Seen Rise in Insurance Costs or Changes in Coverage — Lily Katz | Redfin | April 17, 2024

Northeastern USA: Extreme rain is just one more hazard imperiling life and property.

As high temperatures break records around the US and wildfires rip through the West, another climate-driven weather hazard — extreme rainfall — is pummeling the country’s Northeast and scientists say it will get worse as the climate changes. That will bring more rain-induced flooding to a region of millions that isn’t prepared.

The latest example played out on Aug. 18, when a slow-moving storm system approached Northeastern states from the Great Lakes...

...“The situation itself wasn’t all that unusual,” said Tom Kines, a senior meteorologist at AccuWeather. “It just happened to be the kind of the worst-case scenario where you get heavy thunderstorms over one area for an extended period of time.”

The outcome was anything but usual. Within 12 hours, the area saw two 1,000-year rainfalls — events that have a 0.1% annual chance of occurring — only 35 miles apart.

“Some areas picked up two or three months’ worth of rain,” Kines said...

Extreme Rain Is a Growing Climate Threat to the Northeastern US — Eric Roston | Bloomberg | August 27, 2024

• From Nantucket to Kauai, housing is getting more and more expensive.

…Many of the housing markets where home values are the highest are located in desirable coastal areas. These housing markets are often higher-income, lack a sizable production builder presence, face significant geographical and regulatory building constraints, and are hot spots for knockdown-rebuild development. In the most expensive pockets of the country, land is often worth more than the property structure.

In particular, in the Western half of the country, where many analysts believe the housing shortage is more acute, home prices have soared to levels well above the national average over the past decade. This significant increase has coincided with the region’s tech boom, which greatly contributed to income and wealth growth in the West…

These are the most expensive housing markets in America, according to Zillow data — Lance Lambert | Fast Company | September 21, 2024

St. Petersburg, Florida: Why do homeowners expect different results after rebuilding their homes in the wake of multiple catastrophes?

Kellen Driscoll bought his home here in 2019, settling in the coastal enclave of Shore Acres. It flooded for the first time four years ago after tropical storm Eta dumped more than 3 feet of water.

Hoping it was a fluke, Driscoll tore out the affected drywall and started fresh. After all, the four-bedroom home built in 1960 had no flood history. 

But then it happened again, and again. Like many others in the community, he put his home up for sale in the spring of this year. After seeing little interest, he cut the asking price. 

On Friday, Hurricane Helene deposited more than 6 feet of storm surge in the neighborhood. The rushing waters ripped the “For Sale” sign off his front lawn, and etched a waterline that reached halfway up his front door, just underneath the doorbell. He reduced the asking price for a fifth time.

“We flooded here four times in the last four years,” said Driscoll, as he threw his television sets, furniture, appliances and other belongings to the curb. “I’m just hoping I can sell the house. It’s a good neighborhood for sure, but dealing with the floods is horrible.”

In a Florida Town Ravaged by Storms, Homeowners All Want to Sell — Deborah Acosta | WSJ | October 01, 2024

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Mortgage rates slipped to their lowest point in two years.

The average rate on the standard 30-year fixed mortgage edged lower by one basis point to 6.08%, according to a survey of lenders released Thursday by mortgage-finance giant Freddie Mac. That was the lowest level since September 2022.

Lower rates could draw some would-be buyers and sellers from the sidelines of the market, which had become less affordable than just about ever in recent years. Refinance applications jumped last week, the Mortgage Bankers Association said, and purchase applications posted a small increase.

But mortgage rates are still roughly double what they were at the start of 2022, before the Federal Reserve started its campaign to curb inflation. Mortgage rates aren’t directly tied to those moves, but tend to loosely follow the yield on the 10-year Treasury note…

Mortgage Rates Decline to Lowest Level in Two Years — Gina Herb | WSJ | September 26, 2024

San Francisco Bay Area, California:  Every community association has a unique mix of factors that determine assessments.  There is no true “average.”

Bay Area condominiums are often marketed as a more accessible option for homebuyers trying to break into a highly competitive market. But even buyers who can afford the mortgage payments may find themselves charged with some of the highest homeowners association fees in the country — costs that are only getting higher.

For-sale condos in the San Francisco metropolitan area required a median of nearly $690 a month in HOA dues from June to August 2024. That was the second-highest median among 43 of the most-populous U.S. metro areas analyzed by real estate company Redfin, and an increase from the median of $550 for the same period in 2019 and the $670 for the period in 2023. The rise came even as the median condo listing price in the San Francisco metro area, which Redfin defines as San Francisco and San Mateo counties, declined from $960,000 to $930,000…

Here's how HOA fees for Bay Area condos compare with the rest of the country — Christian Leonard | SF Chronicle | September 23, 2024

Built Environment

• New York, New York: A new office to residential conversion takes shape.

A minute’s stroll from the New York Stock Exchange, down a cobblestone street once lined by imposing headquarters for the titans of finance, a corner office has taken on new meaning.

Starting Monday, New Yorkers can lease an apartment in the former headquarters of Goldman Sachs Group Inc. at 55 Broad St., where it was based from the late 1960s to the early 1980s...

...Now, anybody with $4,000 a month can live in the very space Gus Levy cemented Goldman’s legacy as a trading powerhouse...

Last year, Metro Loft and Silverstein Properties seized on the nearly 60-year-old tower, which was struggling to lure commercial tenants looking for newer buildings. According to Larry Silverstein — for whom this office-to-residential conversion will be a first — the building’s wedding cake shape is ideal for such a project, because no void had to be created for apartments to get light.

“It has a large base, but then over the base the building comes in and rises, so the tower over the base is perfect for residential use,” Silverstein said in an interview from his office in 7 World Trade Center. “Every apartment is going to have windows, windows, windows.”

The turnaround of the curtain-wall structure from drab offices into 571 apartments is expected to be completed by the middle of next year. The smaller, higher-floor units in the 36-story tower are nearly done, and move-ins for those will begin in November...

The Goldman Sachs Offices Converted into $4000 Luxury Rentals — Nacha Battan and Natalie Wong | Bloomberg | September 23, 2024

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3D-printed glass bricks might be coming to a building near you in the future.

…In mechanical testing, a single glass brick withstood pressures similar to that of a concrete block. As a structural demonstration, the researchers constructed a wall of interlocking glass bricks. They envision that 3D-printable glass masonry could be reused many times over as recyclable bricks for building facades and internal walls.

“Glass is a highly recyclable material,” says Kaitlyn Becker, assistant professor of mechanical engineering at MIT. “We’re taking glass and turning it into masonry that, at the end of a structure’s life, can be disassembled and reassembled into a new structure, or can be stuck back into the printer and turned into a completely different shape. All this builds into our idea of a sustainable, circular building material.”

“Glass as a structural material kind of breaks people’s brains a little bit,” says Michael Stern, a former MIT graduate student and researcher in both MIT’s Media Lab and Lincoln Laboratory, who is also founder and director of Evenline. “We’re showing this is an opportunity to push the limits of what’s been done in architecture.”...

Engineers 3D print sturdy glass bricks for building structures — Jennifer Chu | MIT News | September 20, 2024

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South Carolina: From cabooses to condos.

By now, the story is well-known — how Ed Robinson and his wife, Cathy, came up with the idea, purchased the unused train tracks just outside Williams-Brice Stadium, acquired nearly two dozen cabooses from Illinois Central Railroad then began selling the hollow steel containers for $45,000 a pop in 1990. Over three decades later, people are still awed by them.

A few weeks ago, “College GameDay” went into Cockaboose No. 22, guided by owner Garrett Humphries, who welcomed the cameras into his palatial rail car and told folks that years ago, he was the one rattling the magic box inside the Cocky suit. What he didn’t divulge was the lesser-known position he currently holds: president of the Cockaboose Homeowners Association…

…By purchasing a Cockaboose, you become a 1/22 owner in The Cockaboose Corp., and like any HOA, pay the dues, which just had a large increase. The fees spiked this year by over $1,700 — up to $5,000 annually for every Cockaboose.

As Humphries and the board started looking to the future, creating five- and 10-year plans, they realized major costs were looming — stuff on the outside of the Cockabooses that will need to be covered by the HOA. Deck repairs. Room maintenance. And, sometime in the next decade, every Cockaboose is going to need to be repainted with expensive, specialized paint fit for old rail cars.

“It’s either everybody gets a huge assessment or they pay for it over a 10-year period,” Humphries said…

The Cockaboose Corp. is the coolest HOA ever — and it'll throw a yellow flag if needed — Jordan Kaye | The State | September 25, 2024

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"Trapped," a book coauthored by Low, the CUNY researcher, describes a growing movement to build communities that are "privatized, fortified, unequal." By 2015, more than 11 million Americans had retreated to these "secured communities," compared with 7 million a decade earlier.

But rather than making residents feel safer, Low says, the intense focus on security and privacy only serves to cut them off from the public and stoke their anxieties about outsiders. Walled-off communities, by their very nature, lead to ever higher walls.

"Indian Creek is a great extreme example of trying to pull out completely from having anything to do with the rest of the world," Low says. "The more you enclose yourself, the more you're reminding yourself of a sense of risk."

Inside the Island Fortress of America's Mega-Billionaires — Guthrie Scrimgeour | Business Insider | September 22, 2024

Inflation and Monetary Policy

• FOMC Chair Jerome Powell isn’t giving up the ghost on rate cuts.

Federal Reserve Chair Jerome Powell said the central bank will lower interest rates “over time” and again emphasized that the US economy remains on solid ground. Speaking at an event in Nashville, Powell reiterated confidence that inflation will keep moving toward the Fed’s 2% target and added that “we are not on any preset course.” BlackRock Chief Executive Larry Fink, meanwhile, said the market is pricing in too many rate cuts from the Fed.

— Sam Unsted | Bloomberg 5 Things to Start Your Day | October 1, 2024

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Now that the US Federal Reserve has joined rich-world peers with its own initial interest-rate cut, lingering worries about consumer prices are increasingly poised to give way to concerns about growth around the world, according to Bloomberg Economics.

Its aggregate gauge of advanced-economy borrowing costs shows a decline of almost 40 basis points between now and the end of the year, and a further drop totaling more than double that amount by the time 2025 is out…

…But unanswered questions are haunting the outlook, with the US election in November key among them. It’s hard to guess just how different Donald Trump taking office in January might be from Kamala Harris, but — fully implemented — his policies on tax, tariffs and immigration would have major implications for the US economy — and so also for the Fed.

Whatever happens, a sustained period of central bank activism, in contrast to the recent hiatus of higher-for-longer rates, is likely to take hold. 

Fed Drives Global Push to Cut Rates Despite Questions Over 2025 — Bloomberg | September 30, 2024

Cashing In

• Index investing is great…unless you mess it up.

Messing Up the Closest Thing to a Sure Thing in the Stock Market — Jason Zweig | WSJ | August 23, 2024

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The relative value of $100 across the United States as of 2015.

Mapped: The Purchasing Power of $100 in Each U.S. State — Bruno Venditti | Visual Capitalist | September 07, 2024

2021 Map — Tax Foundation (data from US Census Bureau ACS)

2020 Map — Tax Foundation  (data from US Census Bureau ACS)

2015 Map — Tax Foundation  (data from US Census Bureau ACS) 

Cashing Out

• Nearly half of American retirees are facing a sobering situation.

If you're aiming to retire at the standard age of 65, buckle up because you're going to want to hear this one.

According to a simulated model that factors in things like changes in health, nursing home costs, and demographics, about 45% of Americans who leave the workforce at 65 are likely to run out of money during retirement.

The model, run by Morningstar's Center for Retirement and Policy Studies, showed that the risk is higher for single women, who had a 55% chance of running out of money versus 40% for single men and 41% for couples…

About 45% of Americans will run out of money in retirement… (alt 🔗) — Laila Maidan | Business Insider | September 25, 2024

Windows Lead To Lawsuits - II

• Mecklenburg County, North Carolina: Sherry Loeffler’s case will be heard in appellate court in October.  The HOA’s defense counsel filed an intriguing motion to withdraw on September 20.  See our original coverage in Issue# 74.  This case may finally be settled!

Loeffler v Yachtsman - 21CVS011218-590 - Deposition of Yachtsman HOA - August 2024

Loeffler v Yachtsman Files

HOA Antisemitism?

• Cooper City, Florida: Fair housing violation?

A South Florida rabbi is in a religious dispute with his homeowners association after, he said, they are restricting him from expressing his religious views ahead of the Jewish holiday.

Rabbi Shmuel Hurwitz lives in the Embassy Lakes community in Cooper City, and he likes to have his menorah out year-round and play his shofar.

But this year, Hurwitz said, the community’s association told him he couldn’t do it…

Local rabbi accuses HOA of restricting religious display despite allowing others…

— Brandon Beyer, Jack Royer and Kevin Boulandier | WSVN 7 | September 25, 2024

Honor Thy Contracts…or Pay Up

• California: Early management termination proves costly.

…GPL’s contract was not set to expire until 2050, and some HOA members worried about the chaos that could result by jettisoning a management company that had taken over the once-troubled association in the early 1990s and made significant capital improvements to the Lake Lindero grounds at the time. But the HOA’s ire over GPL’s alleged mishandling of club finances and sluice gate repair at the Lake Lindero dam persisted, and several years of cross-litigation between the parties ensued.

“The majority of members of the former board failed to do the right thing,” Watkins said in a previous ruling. The judge scolded the HOA for having “lost its way” by carrying on a protracted battle over board leadership and abrogating its fiduciary responsibility to the members.

Holding the HOA and its legal defense team liable for egregious errors and missteps in its dealings with the former manager, Watkins said in 2023 court documents that the HOA board and its former president, Chris Barone, “engaged in the worst forms of ethical violations which have resulted in overwhelming and irremediable prejudice to Smith and his Golf Projects Lindero.”...

Agoura Hills Lake Lindero HOA loses $15.6-million judgment — John Loesing | The Acorn | September 25, 2024

Responsibility Is Key

• State statutes and the declaration (CC&Rs) (as well as plats and survey maps) define the boundaries of units, enumerate common elements and establish responsibility between owners and community associations.

When Is Your HOA Responsible for Repairs in Your Home? — Jill Terreri Ramos | NYT | September 21, 2024

Common Expense Indigestion

• West Palm Beach, Florida: Who pays?!  Owners generally share costs for common elements.

…“There are seven individual buildings, and our contention is that not all have shoddy construction,” said Tim Johnson, who owns two shops in the development and a townhome. “My building has no problems, but they are treating the buildings all the same.”...

…A decade after the first owners moved into the three-story townhomes fronted by gilded antique stores, the homeowners association says residents are facing an estimated $12.6 million in repairs, which, in a worst-case scenario, could mean an assessment on each owner of $221,000.

Cracking walls, settling pavers, corroding plumbing, rusting gates and the erosion of load-bearing soil is alleged by the association in a 2021 lawsuit it filed against the builder.

An April 2024 report by West Palm Beach-based Slider Engineering Group also details structural concerns including shrinkage in concrete and a lack of reinforcement in some construction elements. A letter to homeowners from the association in August notes missing rebar in walls…

West Palm Beach townhome community on Antique Row shaken by costly repairs, owner discord

— Kimberly Miller | Palm Beach Post | September 20, 2024

Tree Trevails

• Singapore: Associations are generally responsible for deciding the fate of tree growing within common elements.

…Despite the fact that the condo is "very old", many residents are still "sticking around" because of the beauty of the place, said Ms Tang.  "You cannot put a price on that. You can always get another condominium … but you can't get the atmosphere that we have here," she said.

But to Ms Tang's dismay, that atmosphere may soon see some major changes with the removal of four big trees.  Known as Khaya trees, these are large, tall trees that can grow up to a maximum height of 30m. 

Residents opposed to the removal of these trees contacted CNA with concerns over the decision to cut them down when they are still healthy and have been standing strong for more than 35 years... 

Residents at Dairy Farm Estate wrangle with condo management over removal of 35-year-old trees — Natasha Ganesan | CNA | September 20, 2024

So Many Insurance Lawsuits

• Issaquah, Washington: Sammamish Hills condominium association is a 130 unit townhome development with units 3 stories in height.  The association is suing Allstate insurance for $9,700,000.

…Sammamish Hills Owners Association claimed the hidden damage to the exterior weather-resistive barrier, sheathing, and framing occurred incrementally and progressively during each of its policies with Allstate. However, the insurer allegedly denied coverage.

The association first tendered a claim with Allstate in October 2022 and requested an investigation into any hidden damage. By June 2023, the association, its experts at Evolution Architecture, and its insurance providers, including Allstate, conducted an investigation that revealed “system-wide” hidden damage to the buildings…

Condominium Association Sues Allstate Over $9.7M Repairs — Rihem Akkouche | USA Herald | July 10, 2024

Ramifications of the Icon Brickell Case

• Florida: An intriguing read for those interested in Florida case law.

Prior to October 2020, property developers, condominium boards, and legal practitioners in Florida observed a long-held understanding that property owned by a particular condominium unit — such as a hotel or commercial unit — could not be designated as common property controlled by the condominium. This understanding largely stemmed from how the term “common elements” was defined under the Florida Condominium Act...

The lack of mandatory language, such as “shall” or “must,” led to the interpretation that property designated as a “unit” and belonging to a specific unit owner could not be construed as a common element. However, the Third District Court of Appeal’s 2020 decision in IconBrickell dramatically disrupted this principle. 

The IconBrickell case centered on one of three towers that comprise a large mixed-used development in downtown Miami. The tower at issue includes the W Hotel Miami, residential condominium units, and commercial units (collectively, the IconBrickell Condominium). The IconBrickell Condominium is governed by a recorded condominium declaration that runs with the land. The declaration detailed what were referred to as “Shared Facilities,” which designated certain property as being specifically owned by the hotel unit owner...

Course Correcting the Florida Condominium Act in the Aftermath of the IconBrickell Decision

— Kathleen M. Prystowsky and Elizabeth C. Puccio-Williams | Akerman LLP | September 24, 2024

Filed Under Miscellaneous from Illinois

• Illinois: Many states permit electronic communication, but Nevada is the only one so far to automatically opt owners into electronic communication.  More on that and other topics below.

Condo associations can’t require unit owners to receive communication electronically — Howard Dakoff | Chicago Tribune | September 23, 2024

…However, boards must still comply with other applicable laws, such as the Illinois case of Palm v 2800 Lake Shore Drive Condominium Association Illinois case (Palm II), which prohibits a condominium board (i) from emailing each other to discuss board business, (ii) from meeting to discuss association business without notice to the unit owners or (iii) from conducting email votes in-between board meetings. To avoid a Palm II violation, boards commonly delegate decision-making authority to a single board member or a managing agent so contracts and expenditures that arise between board meetings can be properly handled…

Responsibility for damage caused by a burst water pipe and Infrequent Board Meetings (alt 🔗)

— Howard Dakoff | Chicago Tribune | September 23, 2024

Palm v. 2800 Lake Shore Drive Condominium Association —  Illinois State Bar Association

The Aftermath of Palm v. 2800 Lake Shore Drive: The Sky is Not Falling — Kovitz Shifrin Nesbit | Chicago Tribune | February 11, 2015

• GEORGIA: Studying reforms.  View more online and in our Newsletter Database.

VIDEO: Homeowners tell stories of distrust, fear and financial ruin | Lawmakers take a look… — Rebecca Lindstrom | 11Alive | September 24, 2024

• INDIANA: Potential community association legislative reform, but haven’t we all learned enough from the past 40 years of articles, books, reporting, legislation, and outputs of prior legislative study to avoid yet another committee?  Notably, the committee below is not strictly focused on community associations.

Indiana lawmakers took their first steps this week in exploring whether changes are needed in the ways homeowners associations operate.

A study committee took testimony that was prompted by concerns from lawmakers like Rep. Julie Olthoff (R-Crown Point).

Homeowners associations must file their rules — known as covenants, conditions and restrictions — with their local county. But Olthoff said her county recorder told her only about 40 percent of HOAs are up to date on that requirement.

“They’re not even doing what they’re required to do and there’s nobody watching,” Olthoff said.

The Indiana Builders Association told lawmakers no changes are needed to the system.

But Kelly Elmore from the Community Associations Institute — which advocates for HOAs — said HOAs need more options to enforce their rules…

Indiana lawmakers begin exploring changes to homeowners association powers — Brandon Smith | WYFI | September 27, 2024

Indiana Interim Study Committee on Courts and the Judiciary — September 26, 2024

• HOA Gentry Estates Requests

• CAI-LAC Position Statement