Insurance news and information

It’s the economy, stupid – that decade-old statement could have been written about what apartment and condo associations are facing today. With too many associations trying to deal with record numbers of owner foreclosures, association boards are desperate for a solution. That may mean relaxing standards that in the past were meant to protect property values.

 Most apartment associations have rules that prohibit or limit greatly the ability of owners to rent their units. The strong argument has always been that the unknown variable – the tenant – could be a detriment to the value of the property as many unit owners in the past have been reluctant to live in a mixed-use community. However, with so many empty units and so much financial strain on both apartment associations and homeowners, flexibility is the new buzz word of the industry.

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It’s not fair, is it? Your homeowner’s association is holding a stack of overdue association dues notices, yet there your residents are, still watching their cable and using their phones. You as an association want to make a statement – send a clear message to your residents that you’re on to them and that until their dues are paid, life is not all rosy. So you decide to shut off cable service or phone service to your past-due residents. A good idea, right?

Wrong. See, most states do not allow for associations to restrict or deny its residents any amenities as a means to force payment. Oh, you want to, but oh no, you can’t. It’s about protection for the consumer, not the association. Your homeowner’s association is limited to taking only the corrective action it has set forth in writing as a means of collection. Read more…

Community association boards often waver between doing what’s expected of the community per the bylaws and what’s right to do. Case in point – pets. Many communities prohibit pets for obvious reasons: the noise, the smell, the additional stress on the lawns and property, etc. But holding a strict line could land your association in legal hot water.

 That’s because some homeowners require the use of service animals. Seeing-eye dogs are the obvious exception to your board’s rules. And the exception should be made, because to deny a disabled person the right to animal assistance is in direct violation of federal and state disability legislation. But some pet owners are going to great lengths to claim disabilities in order to keep pets that wouldn’t otherwise fall under the definition of a service animal.  What about a service monkey to assist the disabled, or a guide horse for the blind?   It’s an area of the law that lacks clear definition, and while the Department of Justice has a proposal pending that would exclude exotic animals (such as snakes or other wild animals, there’s no clear legal precedent to follow.

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It’s no secret that foreclosures are crippling the condominium industry. Record numbers of unit owners are in or dangerously close to foreclosure. Many condo associations are struggling to keep occupancy levels up and wondering how to deal with so many vacant units at once. And amid this foreclosure crisis comes yet another – condo owners are delinquent on their condo fees. In some cases, the delinquencies total in the hundreds of thousands.

 Such is the case for one Florida-based condo association, whose association board announced recently that its residents are delinquent to the tune of $675,000. That figure represents half of the West Palm Beach-based Palm Beach Grande association’s resident population. With 106 of its 304 units facing or in foreclosure, it’s a crisis situation for the condo association. Read more…

Be careful what you wish for. That’s the hard lesson learned by one Pittsburgh-area condo association board. The board fought for, and won, independence from the local township when it came to roadwork and maintenance. The condo association won its private-road status from the township.

However, privacy can be pricey. The condo association board now faces a costly final project phase – a storm water system – and they’ve gone back to the township, hats in hand, looking for some help. Help, it appears, isn’t forthcoming. Moreover, the project plans were expected to follow township regulations involving setbacks and structure placement. On closer look, the township and the condo association members realized compliance was rather spotty.

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