Client Alert: Memo on CTA Update
We have one of the largest and best-regarded community association practices in the mid-Atlantic region, representing more than 1,300 condominiums, planned communities and housing cooperatives, of all sizes and types, in Maryland, Virginia, the District of Columbia and Delaware. Our firm’s Community Association Section, made up of approximately 30 attorneys and an experienced professional support staff, includes nationally-known lawyers with extensive experience in this field, including two past Chapter presidents of the Community Associations Institute, two Charter Members of the national College of Community Association Lawyers, and Community Associations Institute board, committee and faculty members.
We provide comprehensive legal advice and guidance to our community association clients, including review, revision and advice with respect to governing documents and rules, as well as guidance on contracts, finance, board operations, and the human dynamics of community association governance. We represent our community association clients in all types of litigation and alternative dispute resolution, and we serve as our clients’ advocates in dealings with homeowners, contractors, financial institutions, developers and government agencies. We have extensive experience with rule and covenant enforcement, delinquent assessment collection, employment law, fair housing law, environmental law, construction litigation, and many other legal disciplines.
Since we understand the time pressures and economic realities faced by community association boards, our goal always is to provide responsive, practical and cost-effective legal advice and assistance whenever our clients need it. Our attorneys and staff utilize the latest technology to provide efficient and timely service, and prompt, effective communication with our clients.
Our firm is one of the leaders in the practice and development of community association law, both regionally and nationally. Our experience, resources and insight allow us to give our clients the latest and most effective problem-solving approaches and the best-informed advice and assistance in this new and rapidly changing area of the law. Beyond that, our firm’s broad and diverse legal experience and resources can assist our community association clients in almost any substantive legal field.
Community Association Litigation
We represent our community association clients in all types of litigation. Our litigation attorneys have decades of experience representing clients in all types of construction litigation from multi-million dollar commercial projects to disputes between homeowners and contractors. We regularly handle litigation involving wrongful termination, breach of contract, rule violations and defective work claims. We have the experience and resources to prosecute or defend your litigation matters in the state and federal courts in Maryland, Virginia and Washington D.C.
A new law effective October 1, 2018 makes it easier for a Maryland Condominium Association to suspend use of common element parking and recreational facilities by delinquent owners.
Mold, technically, is everywhere, in some form or another; it is in the dust on the furniture, in the crumbs left on the counter, and in the air that drifts in from the outside. It is why bread turns green-gray, and why coffee left in the mug on the desk over the weekend will look tan on top. Visible mold, however, is usually a by-product of some other maintenance problem–and usually a sign that that maintenance problem has been going on too long. When mold is given a damp environment and some form of nutrient – either wood, or drywall, or some other building material–it will flourish and grow, creating splotchy discoloration on walls, ceilings and personal property.
Foreclosure is a matter of last resort. Whether an owner is unable to or neglectful in paying assessments owed to an association, the last remedy that should be considered to get paid is foreclosure. A foreclosure takes time, it is costly, and it is designed to displace an association member who cannot or will not fulfill his or her obligation to pay assessments like the other members do. On the other hand, a foreclosure against a property that has sufficient equity in it (meaning the value of the property exceeds the amount of debt owed on it) can be a complete remedy that recovers unpaid assessments, the cost of foreclosure, and eliminates the ongoing hassle for an association by replacing a nonpaying owner with (hopefully) a paying one.
The Virginia General Assembly approved a number of bills during its 2018 legislative session. Several of the bills impact, directly or indirectly, common interest communities. The Governor of Virginia signed the following bills into law in March and the new laws will take effect on July 1, 2018, except as otherwise noted herein. We have outlined the substantive legislative action taken by the Virginia General Assembly that impacts both homeowners and condominium associations.
Chad Toms is speaking at event on March 1 with State Sen. Gerald Hocker Sr. (R-20th) and state Rep. Ron Gray (R-38th). They hope to educate residents on common-interest communities (CICs) at a public workshop in Frankford, Delaware.
In the opening days of the 2018 legislative session, Maryland’s General Assembly overrode Governor Larry Hogan’s veto of the paid sick leave bill passed in 2017. Use of the veto override procedure meant that the law would take effect only 30 days after it was enacted, meaning that the law will become effective on February 11, 2018. During the final days before the law’s effective date, the General Assembly considered a bill to delay its effective date to July 1st, but the legislation appears unlikely to pass in the House of Delegates. As a result, mandatory sick leave will shortly become a reality in Maryland.
Every condominium association is required, by statute and by governing document, to carry a master insurance policy on the building. Such policies cover the common elements and – in multi-story buildings at least – the individual units as well. The question has often arisen, however, whether unit owners themselves should carry homeowners’ insurance, generally known as “HO-6 policies.” The answer is, resoundingly, YES. It is risky not to do so.
An owner’s zealous search for information may involve a request to review the association’s books and records. The District of Columbia, Maryland, and Virginia have statutes detailing the books and records available for examination and copying by owners. Accordingly, the board of directors and managers should be informed of what books and records owners have a statutory right to inspect. This article will set forth the highlights of the relevant statutes in the District of Columbia, Maryland, and Virginia.
Many communities, especially those in the beach and resort areas, are noticing an increase in vest wearing dogs being brought on vacation despite rules that prohibit pets. Numerous internet companies advertise that with a “no questions asked” registration an owner can take their dog anywhere “legally” so long as it is wearing a service animal vest and has a certificate. Communities that see a large volume of vacation rentals are being inundated with vest wearing dogs on vacation that they believe are fake service dogs. As a result, communities should arm themselves with a working knowledge of the differences between the categories of these animals and know the questions an association may lawfully ask to validate a dog’s status.
The Maryland Court of Appeals (Maryland’s highest court) has specified that in order for a lien to be effective, the procedures of the Maryland Contract Lien Act (§14-201 et seq. of the Maryland Code, Real Property Article) (the “Act”) must be followed. In Select Portfolio Servicing, Inc. v. Saddlebrook West Utility Company, LLC, et al., No. 71, September Term 2016, the main issue the Court reviewed was whether a lien could be created on a property by a declaration without following the procedures of the Act.
As of June 9, 2017, new rules and regulations for Aquatic Facilities, including Swimming Pools, Spa Pools, and Saunas, went into effect in the District of Columbia for the purpose of updating existing regulations to reflect new industry standards and District regulations. Most significantly, the proposed rulemaking incorporates industry standards that are included in the second edition of the “Model Aquatic Health Code” published by the U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, as well as other industry standards.
Legislation to amend the D.C. Condominium Act, D.C. Act 21-657, (the “Act”) has been approved by the D.C. Council, signed by the Mayor and is awaiting the end of the mandatory congressional review period. The legislation is currently expected to go into effect on April 7, 2017.
“Ham radio” refers to amateur radio operations and antennas, which has a surprisingly large following among local hobbyists and enthusiasts. While the federal Telecommunications Act of 1996 ( “Telecommunications Act”) is the ultimate authority on regulating satellite dishes and television antennas, it does not apply to amateur radio (“ham radio”) antennas. The Telecommunications Act prohibits community associations from restricting a property owner’s right to install a satellite dish or television antenna on property exclusively within the property owner’s control. The Act’s protections, do not, however, extend to ham radio operations. The Federal Communication Commission’s (the “Commission” or “FCC”) PRB-1 document, an 11 page Amateur Radio Memorandum Opinion and Order, provides that local governments must reasonably accommodate amateur operations, but these regulations do not extend to private land-use restrictions such as deed covenants, conditions, and restrictions (“restrictive covenants”).
Effective October 1, 2016, all employers in Montgomery County, Maryland with one or more employees are required to provide employees with paid sick and safe leave. All employees must earn one hour of paid leave for every 30 hours an employee works in Montgomery County, up to 56 hours a year. Employers with 5 or more employees must provide paid sick and safe leave; whereas, employers with less than 5 employees must provide 32 hours of paid sick and safe leave, as well as 24 hours of unpaid sick and safe leave per year.
This past legislative session, the Maryland General Assembly undertook a review of the resale disclosure laws for condominiums and homeowners associations. After input from CAI’s Maryland LAC and other organizations, a limited number of changes were passed and will become effective October 1, 2016.
The U.S. Consumer Product Safety Commission reports that more than 15,000 home fires are caused each year by faulty or improperly maintained dryers. More than half of these fires are caused by dryer vents that have failed to be cleaned. As temperatures begin to rise, it is time for community associations to examine what type of policy is in place regarding dryer vent maintenance.
The Virginia General Assembly approved a number of bills in the 2016 legislative session which impact, directly or indirectly, common interest communities, and the Governor of Virginia signed the following bills into law.
These new laws amend the Virginia Property Owners’ Association Act (Va. Code Ann. 55-508, et seq., as amended (1950)) (the “POA Act”), the Virginia Condominium Act (Va. Code Ann. 55-79.39, et seq., as amended (1950)) (the “Condominium Act”), and other statutes that may affect common interest communities. These new laws will take effect on July 1, 2016. Below is a brief summary of the legislation that directly or indirectly influences common interest community associations.
Many people move into Community Associations throughout the area due to the many added benefits an Association offers including a more “secure” neighborhood. However, there is a hidden reality that many residents of an Association may be surprised to confront – a sex offender living in their community, amongst them in plain sight. Of course, sex offenders are a real and a major concern to any resident. Common reactions from residents include questions of:
The use of technology by community associations is a great way to efficiently manage association business and records; however, there are recommended practices that should be followed in order to minimize liability exposure.
The registration and licensing requirements of condominium associations in the District of Columbia vary depending upon several factors.
The Prince George’s County Council recently adopted new legislation that establishes a Commission on Common Ownership Communities (the “PGCCOC”). The Commission will be composed of nine (9) members appointed by the County Executive. Five (5) of the members will be selected from unit or lot owners who reside in a common ownership community, and four (4) of the members will be selected from professionals associated with common ownership communities, such as property managers, realtors and attorneys.
The Supreme Court of Virginia published an opinion relating to the process of amending the Declaration of a Property Owners Association. The case titled Steven F. Tvardek, Jr., et al. v. Powhattan Village Homeowners Association, Inc., ruled that an Amended Declaration is not effective unless the President’s certificate recorded with the amendment verifies that the required majority of owners signed the amendment or ratification approving the amendment. In this case, the certificate merely stated the owners approved the amendment.
When a condominium project is FHA certified, it means that the units located within the condominium project are eligible for FHA-insured loans. An FHA insured loan is a Federal Housing Administration (“FHA”) mortgage insurance backed-mortgage loan, which is tied to an FHA-approved lender. In other words, FHA does not issue loans; rather it insures loans from private lenders.
Proper classification of employees is critical to avoid potential liability for unpaid overtime. If that did not get your attention, then consider this: In addition to unpaid overtime, misclassification of employees can result in liquidated damages, equitable relief and reimbursement of attorney’s fees. Classification is particularly important now, in light of the proposed changes to the Fair Labor Standards Act (“FLSA”).
The DC Metro area recently endured winter storm Jonas. Many embraced the historic snow, especially kids who got a weeklong vacation. Homeowners, though, ended up spending some quality time with a shovel and were likely rewarded with a sore back. Likewise, Community Associations had to figure out how to remove the large amounts of snow from streets and sidewalks. However, were the hours of labor and snow removal bills necessary? More importantly, if the snow was not removed and someone was injured, who would be liable?
Montgomery County law now requires common ownership community board members to receive training in basic community association management. The Montgomery County Commission on Common Ownership Communities (CCOC) has launched a new online training program that allows board members to comply with the County’s requirements.
New laws will take effect in Montgomery County, Maryland on November 30, 2015 which will impact parking and towing policies in community associations. This article will highlight the new requirements under Chapter 30C of the Montgomery County Code (“Code”) of which all community associations in Montgomery County need to be aware.
The following items of legislation from the 2015 session may be of interest to Delaware Common Interest Communities.
The Fair Housing Act (“FHA”) applies to community associations and establishes the regulations with which private “housing providers” must comply. This article will explore the possible responses an association may have to a community association member requesting the use of a service animal under the FHA.
As many of you are already aware, the legalization of the possession and use of marijuana in the District of Columbia went into effect on February 26, 2015. As with every law, of course, there are certain limitations to the possession and use of this substance.
Under the current laws in D.C., it is legal for anyone 21 years of age or older to possess, use, or transfer marijuana.
The Virginia General Assembly approved a number of bills in the 2015 legislative session which impact, directly or indirectly, common interest communities, and the Governor of Virginia signed the following bills into law.
In Montgomery County, Maryland, owners who want to rent their homes must obtain a residential rental license from the County. It is a Class A violation of the County Code for an owner to rent without a rental license, which could result in a fine of up to $500 per day. More often than not, owners are renting their homes and deriving an income from the rental while at the same time failing to pay homeowners, condominium or cooperative fees to the community association. However, the County is attempting to stop this practice.
With the wear and tear from winter weather, and spring cleaning approaching, there may be several projects waiting in the wings for your association. Whether it be routine maintenance or a new construction project you will probably need to execute a contract for the work to be completed. Managers may be tempted to sign contracts for these projects, especially for a lackadaisical board or for a project that simply needs to be done. Managers, as a general rule, however, should avoid signing contracts for work performed for the association.
The District of Columbia has adopted rules requiring residential buildings with eight or more units to provide secure bicycle parking spaces, effective as of November 28, 2014. These rules have been added as sections 1214, 1215, and 1216 to Chapter 12 of Title 18 of the District of Columbia Municipal Regulations. Violations of these rules are civil infractions, punishable by fines.
The transition into the cold and dark of winter offers an excellent opportunity for community associations to analyze safety and security issues. In this article, we will examine some of the routine steps a community association can take in order to minimize the risk of crime and prevent injury in the community. We will also examine the legal issues associated with maintaining or instituting a “neighborhood watch” program.
Open Meeting requirements restrict how and when a Board of Directors may discuss Association business. In general, they require that all meetings, including those of any committee or subcommittee, be open to all members of the Association, but provide a limited set of circumstances where a Board may enter an executive or closed session to discuss certain matters in private.
On August 12, 2014, Delaware’s governor signed a bill into law creating an Office of the Common Interest Community Ombudsman within the Department of Justice. What is the Ombudsman charged with doing, and how will it affect your community?
Under the new law, the Ombudsman is empowered to help Delaware communities understand their rights and responsibilities. Equally important, the Ombudsman can also help resolved disputes between a community and its members without recourse to the judicial system.
In November 2008, the District of Columbia enacted the Accrued Sick and Safe Leave Act of 2008 (“ASSLA”) which requires employers to provide paid sick leave to employees, as well as safe leave for absences related to domestic violence or sexual abuse. Effective March 2014, ASSLA was amended by the Earned Sick and Safe Leave Amendment Act of 2013 which broadens the employees covered under ASSLA, provides for additional recordkeeping, and includes stronger remedies for violations of the law.
As a result of the 2014 General Assembly Session, a number of bills were approved by the General Assembly and signed by the Governor, many of which directly or indirectly impact common interest communities in Virginia.
The new laws amend the Virginia Property Owners’ Association Act, the Virginia Condominium Act, and other statutes that may affect common interest communities. These new laws will take effect on July 1, 2014. Below is a brief summary of the legislation that directly or indirectly influences common interest community associations.
This was another busy year in Annapolis. The bills that passed and will become law include the following topics:
Do you know where your association’s important documents are located and how to access them quickly if necessary? Keeping association records organized and safe can be an overwhelming task. When new members join the board, it is vital for associations to have a good set of records so that prior board actions can be reviewed when necessary. Condominium and homeowners associations are also obligated by law in many states, and often by their governing documents, to retain certain documents and make them available for owners to review upon request.
Legislation to amend the District of Columbia Condominium Act was signed by Mayor Gray on April 28, 2014, and will go into effect as soon as the mandatory Congressional review period has expired. Hopefully, that will be sometime before June 15, 2014.
A community association’s ability to suspend an owner’s voting privileges and community privileges, such as parking, pool, and/or fitness center access, is a powerful tool associations can use in getting the attention of owners who are in violation of association governing documents. This tool is typically used when an owner is delinquent in paying his or her assessments and can serve as a deterrent for non-payment as well as an effective means of assessment collection. It is important to note, however, that before an association can proceed with suspending an owner’s voting and/or community privileges, it must carefully review its Declaration, Bylaws, and applicable statutory codes in order to determine whether it has the requisite authority to suspend such privileges, and if so, what procedures must be followed.
A community association’s ability to suspend an owner’s voting privileges and community privileges, such as parking, pool, and/or fitness center access, is a powerful tool associations can use in getting the attention of owners who are in violation of association governing documents. This tool is typically used when an owner is delinquent in paying his or her assessments and can serve as a deterrent for non-payment as well as an effective means of assessment collection. It is important to note, however, that before an association can proceed with suspending an owner’s voting.
A community association’s ability to suspend an owner’s voting privileges and community privileges, such as parking, pool, and/or fitness center access, is a powerful tool associations can use in getting the attention of owners who are in violation of association governing documents. This tool is typically used when an owner is delinquent in paying his or her assessments and can serve as a deterrent for non-payment as well as an effective means of assessment collection. It is important to note, however, that before an association can proceed with suspending an owner’s voting.
A community association’s ability to suspend an owner’s voting privileges and community privileges, such as parking, pool, and/or fitness center access, is a powerful tool associations can use in getting the attention of owners who are in violation of association governing documents. This tool is typically used when an owner is delinquent in paying his or her assessments and can serve as a deterrent for non-payment as well as an effective means of assessment collection. It is important to note, however, that before an association can proceed with suspending an owner’s voting.
No one who becomes a board member for their community association does so with the idea that they want to discriminate against their neighbors. Yet, more and more boards are facing discrimination accusations under the Fair Housing Act and Americans with Disabilities Act. It is critical, therefore, for board members - and the managers and lawyers who assist them – to understand the civil rights laws that apply to them and how these laws can affect the day to day operation of the community association.
Community Associations maintain reserve accounts as a means of funding their long term needs for repair and replacement of major capital items. These Association assets typically include all common property under Association control such as roads, roofs, swimming pools and pool decks, sidewalks and clubhouses. Reserves are not intended to fund the Association’s everyday operating expenses, which are set forth in its annual budget.
There are many circumstances under which litigation can arise between members of a community association and the community association or its board of directors. One tactic employed by members who are litigating with or otherwise adverse to the interests of the community association is to disrupt the open meetings of the association by having the member’s attorney attend the open board meetings as a “designee,” “proxy,” or “representative.” This article addresses how a board of directors responds to the attendance of an attorney representing an adverse party at its board meeting.
Under the Freedom to Display the American Flag Act of 2005 (the “Act”) community associations are not permitted to ban owners from displaying the American flag on the owner's unit, lot or in any area where the owner has exclusive use or possession. However, the Act does permit community associations to place reasonable regulations on the time, place and manner in which the American flag is displayed, including the regulation of flagpoles.
The use of websites and social media by community associations is a great way for communities to keep their membership informed; however, there are recommended practices that community associations should follow in order to avoid, or at least minimize, their potential for liability exposure.
Tax lien certificate sales pose many questions and potential problems for condominium associations in the District of Columbia. They can strip an Association of all its liens on a property, or act as tool to remove a chronically delinquent owner or even net the Association a substantial profit. As such, it is in the best interest of all Associations to monitor tax lien certificate sales and be cognizant of their rights and options.
Evolving community needs and changing legal requirements often present a community association board of directors with a daunting task: amending the association’s governing documents. A well-crafted amendment that complies with applicable law is the obvious objective of any board of directors that is considering proposing revisions to its governing documents. Developing this amendment document itself is generally the easy part of the amendment process if the association is represented by an experienced community association attorney.
In July, the General Assembly of the State of Delaware amended several sections of Title 25 for the stated purpose:
… to permit a real property owner or tenant to display an American flag on a pole attached to the exterior of the property’s structure or on a flagpole located within the property’s boundaries, provided the flagpole does not exceed 25 feet in height and conforms to all setback requirements. Any and all community restrictions to the contrary will not be enforceable.
There are two ways to foreclose on a condominium unit in Virginia; each has its own advantages and disadvantages.
Under the Delaware Uniform Common Interest Ownership Act (“DUCIOA”), certain community associations are authorized to foreclose liens just like foreclosing a mortgage on real estate. In Delaware, all mortgage foreclosures are by judicial process and typically take more than ten months to complete when initiated by a secured mortgage lender. When a homeowner defaults on a mortgage, a lender or association may begin the foreclosure process with the filing of a complaint in court in the county where the property is located. Once judgment has been granted in the association's favor, the association must first try to recoup the delinquent fees from the homeowner's personal assets (i.e., garnishing wages and attaching personal property). Once those methods have been exhausted and part or all of the judgment remains unpaid, the association, like a mortgage lender, may proceed to foreclosure.
With assessment collections continuing to be problem for many community associations in Maryland, manager and board members alike are exploring alternative methods for collecting delinquent assessments. Here is a summary of the general process and timetable for the lien foreclosure procedure in Maryland.
After the "Great Recession" that began in 2008, many individuals have fallen behind on their mortgage payments and/or condominium or homeowners assessments. However, Boards of Directors have a fiduciary duty to their members to ensure the financial stability of their communities, so they may need to consider the option of foreclosing on a unit in order to get a new owner in the property who will pay the assessments.
On July 1, the 2007 amendments to the Virginia laws related to charges for resale certificates go into effect. During its just concluded session, the Virginia General Assembly amended the Virginia Condominium Act (the “Condominium Act”) and the Virginia Property Owners Associations Act (the “POAA”) provisions related to charges for resale disclosure certificates. This Alert describes the permissible charges for preparing and providing resale disclosure certificates and will also discuss the time at which these charges may be imposed.
The 2013 General Assembly session was recently completed, and it resulted in a number of new laws that directly or indirectly impact common interest communities in Virginia.
The new laws amend the Virginia Property Owners’ Association Act, the Virginia Condominium Act, and other statutes that may affect common interest communities. These new laws take effect on July 1, 2013 except as otherwise noted herein. Below is a brief summary of the changes that you should be aware of.
A recently reported decision issued by the Maryland Court of Special Appeals offers some guidance and support for community associations on two issues that are frequently the subject of homeowner disputes. The case of Randall Reiner, et ux. v. Clifford Ehrlich, et al. involved a homeowners association’s denial of a request to install a new roof on a home using materials not authorized by the bylaws of the association. The Plaintiffs in the case filed suit against the homeowners association and sixteen individual community members. After holding a hearing, the underlying circuit court dismissed the complaint as to the individual homeowners, and entered summary judgment in favor of the homeowners association. On appeal, the Court of Special Appeals held that the granting of summary judgment in favor of the Association and the dismissal of the individual homeowners was proper.
Maryland has new local stormwater fees that will be implemented in certain counties beginning July 1, 2013.
Boards may have an opportunity to limit the association's liability to unit owners, but they often don't take full advantage of it.
Boards of Directors will find it useful to set up and maintain an email service for the Board members to conduct their business, but should make an effort to educate users to limit their communications to relevant business topics to avoid violating any open meeting requirements.
Over the past year, community boards have faced an increasing number of requests from owners wishing to install electric car charging stations (“ECCS”) in their assigned common element or limited common element parking spots. Given the growing popularity of fuel efficient vehicles, community boards can only expect to receive mounting requests of this nature in the future. In this article, we will explore a number of issues that community boards should consider with respect to the installation and maintenance of ECCS.
FHA certification makes it easier to sell units in your condominium association. Applying for FHA certification has become more straightforward recently.
The good news for District of Columbia residents is that the real estate market is strong, prices of condominiums, in particular, are rebounding, and the foreclosure rate is low. All these things are true, but they do not tell the real story about foreclosures and the underlying effects on community associations in the District of Columbia.
In 2010, D.C., Maryland and Virginia were paralyzed by historic records of snowfall. In addition to the general headaches of traffic jams, school closings, and lack of power and services, community associations had to deal with snow removal. Snowstorms in community associations often result in busted budgets, slippery sidewalks and parking lots, and the possibility of a slip-and-fall lawsuit. So how can a community association protect itself?
Review your declaration and bylaws carefully. The penalties that a board can impose for violations need to be based in those documents, not just your rules and regulations.
The Maryland General Assembly made changes to the Maryland State Transportation Code, effective October 1, 2012, regulating towing procedures for all Maryland community associations.
The 2012 General Assembly resulted in a number of changes that directly or indirectly impact common interest communities in Virginia. The new laws amend the Virginia Property Owners’ Association Act, the Virginia Condominium Act, and the Common Interest Communities. These new laws take effect on July 1, 2012. Below is a brief summary of the legislation that directly or indirectly impacts common interest community associations.
As we approach the summer months, many questions have been raised regarding whether conducting swim meets, in which teams whose members are not residents of a community association, and whether an obligation that the swimming pool where the swim meets occur, be compliant with the American with Disabilities Act's ("ADA") accessibility requirements. Many associations, as a public service, provide their facilities to swim teams for such meets.
One of the most challenging responsibilities for association board members and the association manager is renovation contracts. It is a fact of life that community associations must periodically perform small and large construction renovations—everything from lobby updates to balcony repairs and garage resurfacing, from window and roof replacements to new HVAC system installations. Before signing a construction renovation contract, boards and managers should understand the potential risks and be prepared to minimize them.
In a few months, community associations around the region will be opening up their pools in preparation for the summer season. Running an association pool, of course, comes with a host of issues, including: training and certifying lifeguards; maintaining, repairing and replacing the equipment itself; and enforcing the rules and regulations for using the pool. This article will focus on two separate issues: the Virginia Graeme-Baker Act and the responsibilities of community associations under the federal and state non-discrimination statutes.
The holiday party season is upon us. Whether you're giving a small private party for employees, a large community event, or a private event within the community, questions often arise regarding the sale and service of alcoholic beverages and potential liability issues for community associations. The best way to ensure that your event is a success and your association is protected from liability is through careful planning and knowing the law.
An Association employee comes to the Association Manager complaining that he/she is being discriminated against by another employee. A unit owner complains to the Board that he/she is being harassed by an Association employee. How does the Board or the Manager investigate the complaint?
Members of a Community Association Board are sometimes confronted with an accusation that they have breached their fiduciary duty -- that is, the duty they owe their fellow owners to act impartially in the best interest of the entire community.
Rules development and enforcement are critically important areas for condominiums, homeowner associations and housing cooperatives. In developing and enforcing rules the board must be diligent, careful and resolute, but must keep things in perspective. If an association's rules are not respected by the residents, or if rule enforcement is poorly handled, the result will be a decline in respect for the association, which can translate into greater dissension in the community, increased numbers of rule violations, and increased delinquent assessments.
On June 30, 2011 the United States Department of Housing and Urban Development (“HUD”) released Mortgagee Letter 2011-22, which updates the requirements that condominium association must comply with in order to obtain FHA approval.
Members of community associations must be aware that the U.S. Department of Justice ("DOJ") has recently issued standards for how it interprets the ADA provisions. Under those standards, if a community association's swimming pool is open to other than members of the association and their guests; it will be deemed a place of public accommodation. If it is a place of public accommodation, then the ADA requires that there be at least one means of ingress and egress to the pool for persons with disabilities if the perimeter of the pool is 300 linear feet or less and a second means if the pool perimeter is more than 300 linear feet.
The 2011 General Assembly session was an active one in Virginia. A number of new provisions will directly or indirectly impact common interest communities in Virginia. The new laws amend the Virginia Property Owners' Association Act, the Virginia Condominium Act, the Common Interest Community Management statutes, and the Virginia Nonstock Corporation Act. The sections of the law that are affected by the changes are listed; unless otherwise noted, the references are to the Virginia Code. These new laws took effect on July 1, 2011, unless otherwise noted in the summaries below.
The D.C. Legislative Action Committee is attempting to introduce a bill to amend the D.C. Condominium Act to make certain changes that Boards should be aware of. Although these amendments have not been passed yet, Boards should understand the amendments and prepare for them accordingly. Below is a brief summary of some of the key amendments that have been proposed.
The Delaware Uniform Common Interest Ownership Act ("DUCIOA"), 25 Del. C. § 81-101, et seq., originally effective July 1, 2009, substantially changed the landscape for Delaware communities. The DUCIOA and sections of Delaware's prior statute, the Unit Property Act, were substantially amended prior to the DUCIOA effective date to address input from builder, realtor and association constituencies. Delaware communities have been subject to the strictures of the as-amended DUCIOA since September 30, 2009, with additional revisions effective August 11, 2010 to clarify certain small-community exceptions and make changes to the resale certificate requirements.
After 17 years of pursuing this legislation, Maryland has passed a priority lien bill. Pursuant to this new law, Association liens have a limited priority over the claim of a mortgage holder whose loan is entered into on or after October 1, 2011. The Association's priority is limited to four months of assessments with a cap of $1,200. This priority amount will be paid from the funds of any foreclosure sale prior to the claim of any other creditor, including a mortgage holder. While this law applies only to future mortgages, it will quickly become an important collection tool for Associations, who today often see their liens extinguished by foreclosure with no payment made towards the delinquency.
Please see the attached document for the full text.
Please see the attached PDF for the full text.
Please see attached PDF for full text.
Please see attached PDF for full text.
Please see attached PDF for full text.
Please see attached PDF for full text.
On May 4, 2010, Governor O'Malley signed into law Maryland SB 224, the so-called "Right-to-Dry" legislation, which requires condominium associations, homeowner associations, and cooperatives to allow homeowners to install clotheslines on their property. The new law, effective on October 1, 2010, adds section 14-130 to the Real Property Code, "Installation and Use of Clotheslines on Residential Property."
Condominium associations that made improvements to their common areas or common elements in 2009 should consider whether those improvements qualify for either the Non-business Energy Property Credit or the Residential Energy Efficient Property Credit.
Unlike a tax deduction, a tax credit is a dollar-for-dollar credit against any federal income tax owed. For example, a $200 tax credit is deducted from the tax owed, reducing the taxpayer's liability by $200.
The suspension of parking privileges is an attractive self-help tool for community association Boards to include in their association's assessment collection policies. This is true because it can bring quick results with minimal expense.
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Select provisions of the Condominium Act, the Property Owners' Association Act, the Residential Property Disclosure Act, and the Nonstock Corporation Act.
The information contained here is not intended to provide legal advice or opinion and should not be acted upon without consulting an attorney. Counsel should not be selected based on advertising materials, and we recommend that you conduct further investigation when seeking legal representation.
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Ray Diaz and Ed O'Connell John Whiteford, Taylor & Preston
Whiteford, Taylor & Preston is pleased to announce that 41 of its attorneys are listed among the 2017 Super Lawyers and Rising Stars in Maryland and Kentucky joining the sixteen who were listed earlier this year in Delaware, D.C., Pennsylvania and Virginia.
Whiteford is very pleased to note that Drew Terrell, co-chair of our Community Associations group, has been named a member of the College of Community Association Lawyers (CCAL). Of the thousands of attorneys practicing community association law in the United States, fewer than 150 have been admitted to this prestigious organization. Two other partners in the group, Joseph Douglass and Raymond Diaz, are also CCAL members.
Whiteford Taylor & Preston is delighted to announce that our partner, Edward J. O’Connell III has been inducted as the president of the Washington Metropolitan Chapter of the Community Associations Institute.
Washington, DC. On November 1, 2012, the Maryland Court of Special Appeals ruled in favor of the Grosvenor Park Maintenance Trust Association in a lawsuit against 10101 Grosvenor Park Condominium.
Brenda Curtis-Heiken, the President of the Association, said, “I truly believed that we had the very best legal team, and I knew we would win! Thank you and your entire legal team for all the long hours and hard work.”
On April 9, 2012, Judge Lawrence Fletcher-Hill released his opinion granting summary judgment to the unit owners of Harborview Condominium and Zalco Realty, Inc., the condominium’s property management company. The plaintiff had claimed $2.5 million in compensatory damages and an additional $2.5 million in punitive damages.
Whiteford, Taylor & Preston (WTP) announced today that Raymond B. Via, Jr., has joined the firm's Community Associations practice as a partner in the Washington, D.C., office.
Whiteford Taylor & Preston invites clients, friends and the public to attend the firm's Community Association Legal Workshop.
Whiteford, Taylor & Preston LLP (WTP) has expanded its Falls Church office - by increasing the number of attorneys and enlarging its office space. Glenn R. Bonard, Eileen Morgan Johnson, Thomas Mugavero, Christy Richardson, and Andrew J. Terrell have joined Raymond J. Diaz, Michael Gartner, Christopher A. Jones, Katherine McCarthy, Edward J. O'Connell, and Eric A. Vendt in WTP's offices at 3190 Fairview Park Drive, Suite 300, Falls Church, VA 22042.
Andrew J. Terrell, a partner and head of Whiteford, Taylor & Preston's Washington, D.C. and Virginia offices, was recently honored as Educator of the Year by the Washington Metropolitan Chapter of the Community Associations Institute (WMCCAI). Terrell was presented with the award at WMCCAI's Red Carpet Affair-themed dinner emceed by broadcast journalist J.C. Hayward on November 3, 2007, at Chantilly's Marriott Westfields Washington Dulles.
Prior to its 75th anniversary, Whiteford, Taylor & Preston (WTP) is proud to announce the opening of its Falls Church office. Located at 3190 Fairview Park Drive, Falls Church, VA 22042, the office officially opened for business on May 31, 2007.
Whiteford, Taylor & Preston (WTP) announced today that Raymond J. Diaz, former President of the Virginia State Bar, and Edward O'Connell III have joined the firm's expanding Community Associations (CA) practice.