All Articles and Case Decisions

“Red Flags” that Signal Potential Reserve Account Problems

/ Finances
"Red Flags" that Signal Potential Reserve Account Problems Homeowners associations must conduct periodic reserve studies in order to have a realistic estimate of the costs of repairing and replacing major common area components such as roofs. Ideally, an association will have funds set aside in a reserve account to cover ...
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“Res Judicata” Doctrine Bars Action – Homeowner Must Pay Costs & Expenses For Filing Frivolous Appeal

/ Case Decisions, Dispute Resolution
"Res Judicata" Doctrine Bars Action - Homeowner Must Pay Costs & Expenses For Filing Frivolous Appeal Tennessee Appellate Court decision (December 29, 2014). Following a failed real estate sales transaction, the homeowner sued her real estate agent and several other parties that were involved in the transaction. The trial court ...
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“Open” vs “Executive Session” Meetings of an HOA’s Board of Directors

/ Board of Directors
“Open” vs “Executive Session” Meetings of an HOA’s Board of Directors Perhaps because homeowners associations are often viewed and characterized as private governments or quasi-public bodies, most meetings of the board of directors of a homeowners association are required to be open to attendance by the association’s members and state ...
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“Open” vs “Executive Session” Meetings of an HOA’s Board of Directors

/ Subscriber Articles
Perhaps because homeowners associations are often viewed and characterized as private governments or quasi-public bodies, most meetings of the board of directors of a homeowners association are required to be open to attendance by the association’s members and state laws typically prohibit association boards from taking action on any item ...
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10 Common Defenses to Actions to Enforce Governing Documents

/ Governing Documents
10 Common Defenses to Actions to Enforce Governing Documents Members of homeowners associations are frequently confronted with situations involving claims by the association that the member is not complying with certain provisions that are contained in the association’s governing documents (Bylaws, CC&Rs, Rules, etc.). Typically, an association will attempt to ...
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14 Warning Signs that Signal Homeowners Association Reserve Problems

/ Finances
14 Warning Signs that Signal Homeowners Association Reserve Problems State laws and/or association governing documents typically mandate that associations prepare a reserve study for funding the future replacement of major components such as roofs, streets, and exterior paint. The reserve study provides a current estimate of the costs of repairing ...
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14 Warning Signs that Signal Homeowners Association Reserve Problems

/ Subscriber Articles
State laws and/or association governing documents typically mandate that associations prepare a reserve study for funding the future replacement of major components such as roofs, streets, and exterior paint. The reserve study provides a current estimate of the costs of repairing and replacing the common area components over the long ...
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8 Steps HOA Boards Can Take to Minimize the Risk of Fraud & Embezzlement

/ Board of Directors, Finances
8 Steps HOA Boards Can Take to Minimize the Risk of Fraud & Embezzlement Because they rely heavily on volunteer homeowners with varying background experience and limited time that is devoted to providing services as a director, Homeowners Associations are extremely vulnerable to financial damage as a result of criminal ...
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8 Steps HOA Boards Can Take to Minimize the Risk of Fraud & Embezzlement

/ Subscriber Articles
Because they rely heavily on volunteer homeowners with varying background experience and limited time that is devoted to providing services as a director, Homeowners Associations are extremely vulnerable to financial damage as a result of criminal conduct on the part of wrongdoers who take advantage of their position. By following ...
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Accounting Assistant Steals $148,000 from HOA by Setting Up Company with a Similar Name

/ Finances, Managing Agent
Accounting Assistant Steals $148,000 from HOA by Setting Up Company with a Similar Name The Real Deal, a South Florida real estate news provider, has reported that a former accounting assistant in Miami-Dade has been arrested and charged with first-degree grand theft and organized crime to defraud more than $50,00 ...
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AK Bk Ct Says Homeowner Can’t Discharge Debts for HOA Dues After Filing of Bk

AK Bk Ct Says Homeowner Can't Discharge Debts for HOA Dues After Filing of Bk This case involved the issue of whether homeowners’ association fees and assessments that accrued after a homeowner had filed a Chapter 13 bankruptcy were dischargeable. The homeowner had purchased a property in a development governed ...
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Alabama Ct Says HOA Action to Enforce Restrictive Covenant is Barred by 6 Yr. Statute of Limitations

Alabama Ct Says HOA Action to Enforce Restrictive Covenant is Barred by 6 Yr. Statute of Limitations In this case, in 2007, a homeowner purchased a property in a development that was subject to restrictive covenants created by the original developer of the subdivision. Shortly after purchasing the property, the ...
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An Effective Strategy for Dealing with “Out-of-Control” Board Members

/ Board of Directors
An Effective Strategy for Dealing with "Out-of-Control" Board Members It is not uncommon for homeowners associations to have certain volunteer members that appear to have control over the entire operations of their homeowners association. This typically occurs when such members have been elected to the board of directors year after ...
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Appellate Court Rejects Class Action Claims Against HOA Management Companies Over Transfer Fees

Appellate Court Rejects Class Action Claims Against HOA Management Companies Over Transfer Fees A California Court of Appeal issued a decision clarifying a community association manager’s ability to charge transfer fees upon a change of ownership. The appellate court rejected potential class action claims against a management company for charging ...
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Appellate Court Says HOA Debt Collection Letters Must Satisfy “The Least Sophisticated Debtor” Test

Appellate Court Says HOA Debt Collection Letters Must Satisfy “The Least Sophisticated Debtor” Test Ninth Circuit U.S. Court of Appeals opinion (January 13, 2017). This case involved a dispute between a homeowner (“Homeowner”) and the attorneys for her homeowners’ association (“Association”), who were attempting to collect unpaid dues that were ...
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