11.14.24

ISSUE # 103

CIC Info Bytes 11/14/24

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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CAI Injunction Loss Leads to Paywalled Seminar

• After a searing defeat at the hands of our federal court system, the Community Associations Institute (CAI) now has a $70 seminar about “what to do next” for the Corporate Transparency Act (CTA).

Thankfully, filing FinCEN beneficial owner reporting (BOIR) is FREE and EASY.  You don’t need an attorney, CPA, management company or really anyone to help you use the government system that’s online 24/7 ready to accept the information.  Just get it done.

In my area, I know of one person who is using the CTA as an excuse to discontinue his term on his HOA board. Frankly, I think he was just tired of being on the board.

In my opinion, people jumping ship because of the reporting requirement don't understand the requirement. The information a "beneficial owner" reports are: your full name, date of birth, primary domicile address, and an identifying number from a non-expired U.S. or U.S. state issued ID document such as a driver's license, non-driver's state ID, passport, etc. and an image of the document that you can even make on your smartphone of other device to prove it's your number.

That information goes into a database that law enforcement has full access to see. It's that access that people are upset about. Sorry to put it this way, but they need to get over it. If any of these board members have, for example, a passport or driver's license, law enforcement already has access to that information, including the photo on the two documents.

Through a group in my area that I belong to consisting of HOA leaders we were talking among ourselves about CTA. Many were upset about the information they had to provide. I asked of the group, how many were travelers, that flew on a plane at least twice per year. Everyone raised their hand. I then asked how many traveled internationally by plane at least once per year and about 40% raised their hand. I then asked, how many had a TSA PreCheck membership and about 75% raised their hand and one person asked me did Global Entry count? (Global Entry is a Customs and Border Protection trusted traveler membership program that allows US citizens to return to the US and skip the long lines at immigration and customs. I have it and not that long ago when returning to the US I got through immigration, got my bag and was in my car going home within 30 minutes of getting out of the plane and into the airport, while my neighbor who doesn't have Global Entry had to wait in line and got home more than 90 minutes after me. Global Entry membership includes PreCheck membership.) I said yes, of course, and that was going to be my next question. About 35% of the group has Global Entry.

I then said to them that why were they worried about CTA when they had already give to the federal government far more identifying information than CTA will ever ask for that can be used by law enforcement from the PreCheck and Global Entry databases, particularly Global Entry where they do a really deep dive background check on applicants. Many said at that point, "Wow, you're right."

When you give your beneficial ownership information to the federal government, for likely 99.9% of the people, you're not giving them any more information than they already have and could pull out if they wanted. You are making it a little easier for them to find you if you're in a fraudulent scheme to steal money, but so what.

I believe that when saner heads prevail that they will find that CTA registration by HOA board members is much ado about absolutely nothing.

I should add that when I became president of my HOA and a check signer, the information I had to give to the bank under the Patriot Act was so much more than CTA that this CTA stuff is totally inconsequential.

— Ned Levi | CAI Exchange | November 07, 2024

Election Similarities

• Key similarities between elections at the national level and community associations:

  • The importance of representation

  • Campaigning and platform development

  • Voting process and turnout

  • Term limits and accountability

  • Community impact and leadership style

Comparing the U.S. Election to a Condo Election: Key Similarities and Differences — Denise Lash | Lash Condo Law | November 03, 2024

Unpaid Utilities

• Washington, DC: Here’s what happens when you pay the association $10,000 for utilities and the association doesn’t remit those payments to the water utility.  This case is a poignant reminder that tenant rights often exceed those of unit owners.  Just replace the Board.  Uh huh.

"Buying this house was like a lifelong dream, I didn’t think it was going to be possible, and every day for the past four years has been a nightmare," Madeline Page told 7News.

Page bought a condo located on Montello Avenue Northeast in Washington, D.C.

“I got home from work on a Friday and found a scary notice on my front door that said if I didn’t pay up, my water would be cut off within the week," added Page.

She agreed to pay $198 a month to her Home Owner's Association for water. The HOA would pay DC Water. The property is owned by Montello Virginia Holdings which is owned by Napoleon Ibiezugbe. But, the HOA vanished and so has Montello Virginia Holdings and Ibiezugbe…

…DC Water told us DC Code states a dispute over billing is a matter between unit owners and the condo association. The building has only one meter and it can't divide up the bill…

DC Water charging condo owner thousands of dollars after developer, HOA disappear — Scott Taylor, Jacob Fisher and Kevin Roach | ABC 7 News | October 31, 2024

$7,000 Corruption Case Leads

• Key Biscayne, Florida: Misdeeds do not always go unpunished.

Former EmeraldBay property manager Maria Rodriguez – the person who brought condo corruption to Key Biscayne’s doorstop – received a sentence of three years of reporting probation on Friday, where under a plea agreement she won’t even have a criminal record if she meets all conditions. 

Rodriguez wept as she was fingerprinted. She pled guilty to stealing $7,000 in maintenance fees from a married couple in EmeraldBay, funneling the money into her private bank account.

Rodriguez set up a corporation and — by her own words to police — to deposit money off unused parking spaces at EmeraldBay. She said the maintenance fees were deposited by mistake.

But another resident – according to a former board member at EmeraldBay – had $27,000 in maintenance fees stolen by Rodriguez. The resident didn’t want to press charges, though…

EmeraldBay property manager who brought condo corruption to Key Biscayne gets probation

— John Pacenti and Tony Winton | Key Biscayne Independent | November 01, 2024

Fighting Common Sense

• Wilton Manors, Florida: A group of owners fed up with a run-on list of deferred maintenance expenses refuse to replace the 44 year old air conditioning system.

…A group of seven owners at The Woods Condominium, a two-story 46-unit complex in Wilton Manors, successfully challenged $12,000 assessments that were approved by their governing board — without a vote by all unit owners — to replace the complex’s air-conditioning system.

They hired an attorney who sent a cease-and-desist letter that convinced the board to stop the $550,000 replacement project from moving forward. The board also voted to demote its president, who was the project’s chief backer.

But Randy McLoud, the deposed president, warned that the dissenting unit owners might find that they won a Pyrrhic victory. He says that the complex’s 44-year-old air-conditioning system — which sends water from an onsite well through a series of pipes to heat pumps mounted inside each unit — is in decrepit shape and will have to be replaced before the owners will be able to command market value for their units… The $550,000 air-conditioning-replacement project was the final straw for the dissenting owners….

…Daniel Owsley, a unit owner who is not among the dissenters, said problems with the well and pumps have been ongoing for the 10 years he has lived at the complex.

“Over the last two to three years, it’s been really bad,” he said. “Last year, I had air-conditioning maintenance people here 10 times and almost all of them told me, ‘It’s the pump, it’s the pressure, it’s the well.’ The company I use told me, ‘We will clean your machine and do regular yearly maintenance but we’re not going to try to repair your system because it’s not your unit, it’s the overall pump and well system.'”...

Wilton Manors condo unit owners score rare win in battle with governing board. But is it over? — Ron Hurtibise | South Florida Sun Sentinel | November 04, 2024

Strategies to Handle Conflict

• Get a grip on conflict in  your association with our Conflict page and these resources:

We live in an age of rapid change and instant communication. We also live in a Culture of Blame and Disrespect in which emails, social media posts, and personal attacks are on the increase. We must learn to respond to people who communicate this way -- people with high-conflict personalities. 

BIFF was designed to protect you and your reputation by responding quickly and civilly to people who treat you rudely - while being reasonable in return. BIFF stands for Brief, Informative, Friendly and Firm…

BIFF: Quick Responses to High Conflict People, Their Hostile Emails, Personal Attacks and Social Media Meltdowns — Bill Eddy | 2011

Our New World of Adult Bullies How to Spot Them — How to Stop Them — Bill Eddy | 2024

Stay SMART: Avoid Aspirational Rules

• Visit our Rules page to learn more.  Operating Rules Should be Enforceable, Not Aspirational — Amy Tinetti | Hughes Gill Cochrane Tinetti | October 07, 2024

Justice Served

• Seattle, Washington: A restraining order has been issuedSee Words Matter.  So Do Language Barriers in Issue# 99.

A King County Superior Court pro tem judge renewed a restraining order for Zhen Jin, an elderly Chinese American woman who suffered ongoing racist abuse by neighbors who live in the same condominium complex. Due to continued evidence of harassment, the restraining order was issued for 10 years…

…“The two victim-survivors have endured abuse for almost three years. They have been to court more than 20 times, including 11 hearings,” said Joyce Shui, the attorney for Jin and her uncle. “Given the time and profound trauma, 10-year protection orders could provide a measure of justice and solace,” she added in a written response to the Northwest Asian Weekly. However, the harasser has continued to sidestep the order. So the nightmare is not over.”

Shui stated that Miggins drove a previous tenant out of the condo due to the continued harassment. Miggins had shouted “One down, one to go,” at Jin as that tenant was moving out. According to Shui, the statement conveyed that Miggins is trying to drive Jin out too.  “Ms. Jin does not have current plans to move out,” added Shui. “There are severe economic damages that occur because the board (previously run by Miggins) is not allowing them to rent out their properties and refusing to grant a hardship exemption, which is provided for in the governing documents.”

The Court also issued an order precluding Miggins from being on the Homeowners Association Board. Attorneys on behalf of Jin and her uncle argued that Miggins’ control over the board would continue to hinder the two. Jin has made several attempts requesting the enforcement of homeowner rules to no avail…

Court issues 10-year restraining order on woman accused of racist tirade against Chinese neighbor — Jason Cruz | Northwest Asian Weekly | October 01, 2024

10 Things Potential Buyers (and Existing Owners!) Should Know 

• Here’s a (slightly modified) list that every prospective community association owner should know:

  • The legal structure of your home may vary

  • You ARE obligated to pay assessments

  • Your community may NOT be financially stable

  • PETS may not be allowed

  • EXTERIOR CHANGES might require approval

  • You may be prohibited from LEASING

  • You may be prohibited from SMOKING

  • You may have trouble getting a MORTGAGE

  • There may be rules related to days and times for MOVING

  • YOU may have to get involved

10 things to know before you buy in a community association — Robyn A. Friedman | Boston.com | November 29, 2023

Hammocks Arrest #8

• Miami, Florida: Unwinding fraud at The Hammocks has taken years and keeps going…

Police have arrested an eighth suspect in connection with the alleged multimillion-dollar theft scheme that drained funds from the Hammocks Homeowners Association.

Jesus Cue was the HOA’s controller and accountant from 2018 to 2022. The 63-year-old faces multiple felony charges, including racketeering, unlawful compensation and money laundering, according to the Miami-Dade State Attorney’s Office.

“He was paid about $161,000 a year,” said Miami-Dade State Attorney Katherine Fernandez Rundle.

Cue, who served as a business and accounting consultant for the HOA board through his company, Worldwide Business Solution Corp., is accused of using his position to funnel association funds to friends and relatives of HOA board members through fictional companies and associates, reportedly under the direction of former HOA officials.

“Jesus Cue is important, because he was the one who really designed all the shell corporations, and he had these shell companies that he would establish through, which a lot of the vendors would then submit what I believe, we believe, were fake invoices,” said Fernandez Rundle…

8th arrest made in Hammocks HOA fraud scheme involving $6 million theft, officials say

— Kathleen Ditton, Samantha Sosa and Chantal Cook | WSVN 7News | November 08, 2024

Florida’s Retirement Dreams Come Crashing Down

• Clearwater, Florida: Retirement dreams are fleeting quickly for thousands of condo owners in Florida because new state laws imposed “full funding” requirements without a sufficient ramp to pay for decades of deferred maintenance.

The Kalmia Condominiums in Clearwater wasn’t Ronni Drimmer’s dream retirement destination.  She bought a two-bedroom unit there for her mother in 2001 but ended up moving in when her mom died 18 months later.

“It’s not a fancy place,” Drimmer, 72, said. “There’s a swimming pool. There’s a clubhouse that looks like it’s in the year 1950. That’s pretty much it.”  The maintenance fees were cheap and the buildings had been kept in decent shape. That was enough to satisfy Drimmer and the nearly 300 other residents at her 55-plus community, many of them snowbirds and retirees living off Social Security...

...Even though inspectors found no structural issues at Drimmer’s building, monthly maintenance fees for its 70 owners could climb by more than a third next year. That’s on top of an estimated 21% increase for insurance and a $500,000 special assessment to replace the roof.

For condo towers that require significant repairs, the price will be much higher.  Those who can’t afford to pay may be forced to sell — if they can find a buyer…

Once a retirement haven, Florida’s condo crisis is pricing seniors out — Rebecca Liebson | Tampa Bay Times | November 08, 2024

Will Low Interest Loans Save the Day?

• Broward County, Florida: Are low interest loans the answer for condo owners in distress?  Read about Miami’s loan solution in Issue# 63.

…Condominium-related concerns were raised by a panel of speakers Wednesday during the Broward Housing Council’s “2024 Affordable Housing Workshop: Condo Reform,” presented at the Anne Kolb Nature Center in Hollywood.

Condos represent 40% of Florida’s housing market that will be affected by the reform, said Teneshia Taylor, a managing partner at TAJ Realty. Among Broward’s condos, occupants “in large part” are retirees, seasonal residents and first-time homebuyers, she said. Thousands of the seniors are low-income, she said.

Already “people can’t afford to buy condos” because of the assessments tacked on, and those who want to walk away because they can’t afford the assessments can’t find a seller, warned panelist Charlotte Mather-Taylor, the CEO of the Area Agency on Aging of Broward County.

Some residents hadn’t been paying attention to the association to know that sufficient assessments hadn’t been collected and were too busy “just living their lives,” she said. Those residents are blindsided when “they’re being asked to pay assessments they can’t afford.”

“For lower-income seniors, it really is impossible for them to pay these assessments,” she said. “We’re looking at people who actually are potentially looking at not eating as well, not purchasing their medications, things that they need on a daily basis to be able to survive having to say, ‘Well, can I get this money together to pay the assessment.’ ”

She floated the idea of low-interest loans to help low-income seniors pay the assessments. But she said relief is needed so seniors don’t lose their homes: “This is just one added thing they can’t afford,” she said. “There are so many things expensive in Broward,” she said, including food…

Florida condo crisis: Experts tell of owners’ fears as costs keep mounting — Lisa J. Hurisah | South Florida Sun Sentinel | October 30, 2024

Meeting 2030 climate targets is looking practically impossible.  There’s so much to learn about the challenges facing humanity and the fight against global warming.

…Even before any new slowdown resulting from last week’s monumental political shift, many targets pegged to 2030 deadlines are already in severe jeopardy. An exclusive analysis by Bloomberg Green finds that dramatic acceleration across many fronts would be required to hit end-of-decade milestones on the path to net zero. There are isolated pockets of progress, though those are rare exceptions.

Each year the world falls behind increases the risks of more extreme weather that will put millions of people at risk and threaten global economic growth. One recent assessment forecasts a 1C rise in temperatures would equate to a 12% hit to the world’s gross domestic product. “There are real impacts on people, planet, on industries, on economies, if we miss these goals,” says Sherry Madera, chief executive officer of CDP, a nonprofit that pushes companies and governments to disclose data on their climate impact…

COP29: Is World Close to Hitting Climate Change Goals by 2030?   (free 🔗) — Hayley Warren David Stringer Julia Janicki Aaron Clark | Bloomberg | November 11, 2024

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Trillions of dollars of green infrastructure is required to meet climate goals.  Private sector funding is gearing up.

Over the next two weeks, nearly 200 countries participating in United Nations climate talks in Azerbaijan will negotiate a new, possibly multi-trillion-dollar annual finance goal to help the world’s poorest economies decarbonize and adapt to rising temperatures. But even though nations are doing the talking, much of the money isn’t going to be coming from governments.

Developed countries, feeling cash-strapped these days, are already telegraphing at the start of the COP29 summit that a large part of any finance promised through these negotiations will need to come from sources out of their direct control. That includes the private sector through loans and other “innovative” finance structures.

The complicated and costly proposal to deploy more private finance is already being opposed by highly indebted developing nations, which are pushing for a narrower goal that places emphasis on delivering publicly financed grants. The strategy also raises a fundamental question: How can nations commit third parties, which aren’t a part of the UN process, to mobilize hundreds of billions of dollars? The answer will be crucial in determining the credibility of any new pledge made in Baku this year.

COP29: Countries Are Pledging Private Finance They Don't Control — Natasha White | Bloomberg | November 11, 2024

Americans are waging a war against property taxes.

Voters in eight U.S. states this week passed measures to offer some form of relief on property tax, a sign of their mounting frustration with tax bills that have soared alongside big increases in home values.

Georgia approved a constitutional amendment that caps assessments for all current homeowners, while Florida passed an initiative that pegs the value of one type of property tax exemption to annual inflation.

In Wyoming, voters passed a constitutional amendment that allows residences to be assessed separately from other types of real estate. This could lead lawmakers to pass lower tax rates for homeowners in the future.

Two of 10 state proposals to curb property tax failed on Tuesday, including one in North Dakota that was the most far-reaching and would have eliminated all property taxes. It lost with less than 37% of the vote after facing stiff opposition from a variety of interest groups as well as from Doug Burgum, the state’s Republican governor.

Still, the property tax revolt is well under way and might get bigger soon, as people continue to receive higher tax assessments that capture the sharp rise in property values nationwide over the past few years…

Americans Staged a Property Tax Revolt on Election Day — Will Parker | WSJ | November 09, 2024

Built Environment

• Miami Beach, Florida: Out with the old and in with pricey new condominiums.

You may have heard of the the Faena for its hotel and events center in Miami Beach. Now the brand is putting the name on a pair of condo towers that will rise on the Miami River.

Faena is partnering in the $700 million Faena Residences, said Edgardo Defortuna, CEO and president of the Brickell-based firm Fortune International Group real estate development and brokerage firm. Fortune and Kar Properties are co-developers. The condominiums at 24 SW Fourth St. will have about 400 residences, with a $1 million starting price for a 700-square-foot, one-bedroom, one-bathroom residence…

…Announced in late October, the project shows a boost of confidence in Miami’s condo market, despite the surplus of residences and a downturn in prices. The 3.5-acre project has all of its approvals because it was previously submitted for consideration to the city of Miami as the One River Point project. The development has been in the works since 2015 and has gone through various iterations, including passing from one architect to another…

60-story condo towers are coming to waterfront — and carry name of Miami Beach hotel — Rebecca San Juan | Miami Herald | November 07, 2024

A fascinating look into the world of elevator test towers (and tunnels).  Have you ever wondered why elevator maintenance is $400 to $1,000 an hour?  Take a look at these projects from Kone and TK Elevator.

Elevator test towers: The skyscrapers where nobody lives — Jacopo Prisco | CNN | November 06, 2024

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San Francisco, California: More vertical AND affordable housing.

Plans for a new 72-story residential skyscraper were greenlit for 524-530 Howard St. in San Francisco’s SoMa district, reports SF YIMBY. Thanks to Assembly Bill 2011, the project can move forward with what could become the tallest residential building in San Francisco and one of the city’s top four tallest structures overall. 

California’s AB 2011 simplifies the conversion of vacant commercial properties into housing, particularly focusing on affordable and mixed-income units. Passed in 2022, the bill reduces zoning obstacles and accelerates approval processes for projects that comply with specific wage and affordability criteria, as these developments are exempt from the California Environmental Quality Act…

…According to SF YIMBY, the proposed 843-foot tower will offer approximately 882,250 square feet of space, including 730,975 square feet dedicated to housing and 48,000 square feet for parking. The building is slated to have 672 apartments, with 424 one-bedrooms, 180 two-bedrooms and 68 three-bedrooms. The apartment plans include 68 affordable units for households earning no more than 50% of the area median income. Parking is expected to accommodate 149 cars and 456 bicycles…

Sky-high tower set to become San Francisco's tallest residential building — Kasia Pawlowska | SF Gate | November 01, 2024

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New York, New York: Want a condo with its own gilded dome?

…Carr, the co-founder of Boston Technology and chair of early internet service provider Prodigy, bought the apartment for $7 million. “I’ve had nearly 25 years in one of the most iconic places in New York,” he says. Now he’s listed the penthouse with Lawrence Treglia and Claire Groome of Sotheby’s International Realty for $25 million. For that, a buyer gets 5,000 square feet in a duplex loft, with four bedrooms, four and a half bathrooms and exclusive roof access with 360-degree views of Manhattan…

This $25 Million Flatiron Penthouse Features a Gold Dome — Sarah Rappaport | Bloomberg | November 11, 2024

• The United States spends trillions of dollars a year.  Here’s where it goes: 

• Did you know there’s a misery index?

…According to the so-called misery index, which adds up the inflation rate and unemployment rate, Americans shouldn’t be miserable at all. The widely used welfare gauge is lower than in any recent election year, except for 2016…

US Economy Slowing But Solid Near Election, Unemployment Low — Molly Smith and Edna Curran | Bloomberg | November 01, 2024

Inflation and Monetary Policy

• The US core consumer price index (CPI) keeps rising.  Will the FOMC keep cutting rates? 

…Wednesday’s consumer price data showed the so-called core CPI index — which excludes food and energy costs — increased 0.3% for a third month. The overall CPI advanced 2.6% from a year earlier, marking the first acceleration on an annual basis since March…

Fed’s Schmid Says Uncertain About How Far Rates Should Fall — Catarina Saraiva and Amara Omeokwe | Bloomberg | November 13, 2024

Cashing In

• We hope your association DID NOT purchase I-Bonds for all the reasons listed here.  IF your association is holding I-Bonds, now is the time to evaluate your positions…

The millions of people who bought I bonds when inflation peaked have a decision to make: Hold them, or redeem them and buy new ones.  In most cases, the right move is to exchange. 

Inflation-linked government savings bonds were a hit with investors when they offered a guaranteed return of 9.6% in 2022, stoking so much demand that it took down the website where they are sold.  That rate was short-lived. I bond rates reset based on inflation every six months. Any purchased back at that peak now have a more modest 1.9% rate.

New I bonds issued as of Friday come with a yield of 3.11%, a drop from the prior rate of 4.28%.   But the current yield on new I bonds is only part of how to determine whether to hold or trade in an I bond. The return of your I bonds is calculated based on a fixed rate determined on the purchase date and a moving rate based on the current level of inflation. Since inflation peaked in 2022, the moving rate went down but the offered fixed rate went up. 

This difference between the fixed rate when you bought and the current fixed rate is the most important factor to determine your next move. And today, the fixed rate is more than a percentage point higher than two years ago…

You Bought Blockbuster I Bonds. Here’s What to Do With Them Now. — Katherine Hamilton | WSJ | November 01, 2024

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Look at the real returns for US Dollar-based assets by quarter century.  

• 10 year Treasury Notes = 1.3%

• Treasury Bills (duration of 1 year or less) = (0.7%).  That’s negative -0.7%.

❗From the year 2000 to 2024, Treasury Bills have earned less than inflation.  This should make you reconsider investing reserve funds in qualified financial institutions and solely in cash, money market funds, CDs and Treasuries.

What a quarter-century of stock returns shows: It’s hard to think of a better time for stock investing. The S&P 500 has smashed record after record, AI euphoria is everywhere and even veteran strategist Ed Yardeni — a big bull on Wall Street — worries he’s not optimistic enough. And yet for all the exuberance, US equities are actually on track for their second-worst performance over the past 25 years when adjusting returns for inflation. That’s according to Deutsche Bank’s famous study on market gains over the nine quarter centuries since 1800.

In fact, the nearly 5% yearly advance is so modest, it puts the asset class on track to underperform gold for the first time ever over this quarter-century timeframe, while precious metal, copper and wheat are among the top performers. 

It’s quite the claim — one that will resonate with anyone who’s seen their purchasing power eroded by inflation. While the rally in US stocks has been far stronger than developed peers, it’s not “spectacular” in absolute terms or even relative to government bonds, writes Jim Reid, Deutsche Bank’s global head of macro and thematic research. US equities, since the 1800s, have seen a real annualized total return of 6.9% — far outpacing 10-year Treasuries.

All this may be hard to believe given the stunning developments the world has witnessed in the past 25 years from Apple’s invention of the iPhone to voice assistants including Amazon’s Alexa. Moreover, it was only in this century that three of the so-called Magnificent Seven stocks — Alphabet, Tesla and Meta Platforms — debuted in the US…

America First Is Sinking Stocks and Currencies Everywhere Else — Isabelle Lee | Bloomberg | November 13, 2024

2024 has been a year of substantial stock market returns.  Most community associations’ reserve investments (well over 90% principal-guaranteed instruments like CDs and Treasuries) have significantly underperformed market indices over time.

Wall Street's 'Trump Trades' Keep Powering Ahead: Markets Wrap — Rita Nasareth | Bloomberg | November 10, 2024

Windows Lead to Lawsuits - III

• Mecklenburg County, North Carolina: The end of a 5 year ordeal.  Also see coverage in Issue# 100 and our original coverage in Issue# 74.  

…Your home is your sanctuary.  They could have taken my home if I didn’t have the money to fight them.  And I followed all of their rules.  So homeowners do need to be aware, but if you don’t have money to fight your HOA even if you do follow the rules, you could be out of luck.

War over windows: Charlotte homeowner wins 5-year fight with HOA, gets $75K settlement — Ames Alexander | The Charlotte Observer | November 13, 2024

"[Home] should be a place you want to escape to, not escape from."  - Laura Castro Trognitz

Reasonable Fees Reign Supreme

• Vancouver, British Columbia: Change of occupancy fees on the chopping block.  Assuming that your association can charge whatever it wants (or the same fees in every case) for every change of occupancy or furniture move can land you in hot water.

Also reference: King County 22-2-19946-6-SEA KLOPCHIC ET ANO VS WATERFRONT LANDING OWNERS ASSOCIATION

B.C.’s Civil Resolution Tribunal has ordered a Vancouver strata to cut move-in fees for moves not involving furniture.

Kavita Bains claimed the strata’s moving fee is excessive and sought $1,050 for reimbursement of a portion of six moving fees.

“Mrs. Bains works both in Vancouver and overseas,” tribunal member Dianna Rivers said in her Oct. 23 decision. “When she is away, she rents her home. She is charged a moving fee each time she moves out and a tenant moves in. She says that fee does not equate to the level of service provided by the strata or the concierge. She says her tenants bring in only luggage as her strata lot is rented fully furnished.”  She asked for an order the strata stop charging the current moving fee, and charge $25 or $50 per move instead, depending on whether there is furniture…

…The strata, however, said the fees are set by the strata bylaws and that it properly assessed the fees. It also said the fee is typical of the strata’s building type.  Like many strata bylaws, the building had certain rules, including that moves had to be scheduled, payment of a $300 move fee, a refundable security fee of $200, set hours, elevator lockouts, use of elevator padding, payment for any damage and post-move cleanup if needed.

“The strata provided the strata’s income statement for June 2024, showing year to date moving fee revenue for the strata of $40,200,” Rivers said. “It showed a budgeted revenue for the year of $23,000.”  And, she said, “the moving bylaws in this dispute apply equally to furnished rentals, unfurnished rentals, and owner moves.”...

...“I agree that moves without furniture require less or no inspection of the common area for cleanliness and damage,” Rivers said.  But, she added, “based on the limited evidence, I find that the strata incurred expenses for administrative work by the concierge and the strata manager.”

Rivers found Bains has proved the $300 moving fee was not reasonable for moves not involving furniture and elevator padding.  “I find on a judgment basis that a $150 moving fee is reasonable in these circumstances,” Rivers said. “I make no finding as to whether the $300 fee is reasonable in other circumstances.”  Rivers also ordered the strata to revise its billing of Bains to reflect the $150 fee rate...

$300 move-in fee 'not reasonable' if no furniture, B.C. tribunal tells strata — Jeremy Hainsworth | Vancouver Os Awesome | October 24, 2024

Appellate Court Composition

• How does appellate court composition impact community association case law?

…Federal judges serve for life and tend to remain in their posts long after the president who nominated them leaves office, so their influence can be felt for decades.

The US’s appellate courts don’t get as much attention as the Supreme Court, but they act as the final word on thousands of cases—many with national significance—concerning financial regulations, antitrust disputes, reproductive rights and more.

Most important legal issues get resolved in the appeals courts, says David Driesen, a constitutional law professor at Syracuse University College of Law. “Control of those courts is very important.”

Only 10% of the more than 50,000 cases handled by the circuit courts are appealed to the country’s highest court, which accepts fewer than 100 cases each year for review. When a case doesn’t reach the Supreme Court, the decision at the appeals court level stands…

Trump’s Second Term Can Shift Federal Courts Further Right — Sabrina Willmer, Madlin Mekelburg, and Erik Larson | Bloomberg | November 08, 2024

Construction Defects Are Costly

• Longmont, Colorado: A successful construction defect claim.

…Dream Finders built the 92-unit townhome community known as Parkes at Stonebridge in Longmont, Colorado from 2018 to 2021. Dream Finders promised homeowners "peace of mind" when they sold the homes to Coloradans but failed to deliver on that promise. Soon after moving in, the new homeowners noticed serious construction issues throughout the community including crumbling driveways, heaving sidewalks, and sagging garage awnings.

Depending on the season, sidewalks became dangerous due to ice buildup, ponding water, and slippery algae growth. These conditions caused injury to multiple homeowners who slipped and fell. When homeowners reported their safety concerns, Dream Finders responded with haphazard, negligent repairs that failed to fix the construction problems and caused new hazards.

After multiple failed attempts to negotiate a settlement, the Association proceeded to arbitration against Dream Finders. The Association prevailed on its claims of negligence, breach of contract, breach of express warranty, and breach of implied warranty against Dream Finders. The Arbiter awarded the Association $5,733,471 for its cost of repairs and $679,732 for its litigation costs for a total award of $6,413,204. In addition, the Arbiter awarded the Association post-judgment interest on unpaid amounts until the award plus interest is paid in full…

Longmont Homeowners Association Wins $6.413 Million Arbitration Award… — Kerrane Storz | CNHI News | October 31, 2024

• ALBERTA, CANADA: Bill 30 would see Alberta join Ontario with government-led dispute resolution.

After several years of hearing demands from condo owners, the Alberta government plans to implement a dispute resolution body that will provide an alternative to court.

On Monday, the province tabled Bill 30 — the Service Alberta Statutes Amendment Act 2024 — which proposed changes to the Condominium Property Act. Under the new bill, condo owners will finally see the establishment of the Condominium Dispute Resolution Tribunal and enable chargebacks to be treated as contributions.

Dale Nally, minister of Service Alberta and red tape reduction, said the province has heard from stakeholders about the need for changes, calling the tribunal “long-awaited.”

“There’s an urgent need to improve the governance of condominium communities,” Nally said.  “We’ve taken this feedback to improve condominium governance, provide additional measures for consumer protection, and establish an easy-access mechanism for dispute resolution for condominium owners.”

…Nally said the province will pay $8 million over three years for the tribunal’s startup, and afterward, it will be paid by condominium owners. He said they will determine in the regulations what the cost will be…

Bill 30: Alberta condo owners can head to tribunal, rather than court, to help resolve disputes

— Cindy Tran | Edmonton Journal | November 08, 2024

Condominium Authority of Ontario & Condominium Authority Tribunal (CAT)

Engaging and empowering Ontario's condominium communities.

• Director Training

• Before You Buy and About Condo Living

• Resources

• Dispute Resolution through the Condo Authority Tribunal

• Condominium Authority of Ontario Tribunal Decisions

  • Example records disclosure decision

• CAT Jurisdiction: The Condo Act specifies that the Condominium Authority Tribunal can resolve issues relating to records, unreasonable nuisances, governing documents and compliance with Settlement Agreements.  The Tribunal can’t deal with issues that are likely to cause damage to the condo or cause injury or illness to a person. The CAT also cannot accept cases about agreements between owners and condo corporations to install electric vehicle charging stations or modify common elements.

Episode 43 - Condominium Authority Tribunal — Davidson Houle Allen | October 25, 2024