We frequently are asked whether volunteer board members can be civilly liable for actions taken while a board member. This issue is of serious concern because lawsuits tend to be over inclusive, naming every possible defendant in the initial complaint. Why sign up as a volunteer board member if it could bankrupt you?

Continue reading “What Does It Mean to be on the Board of Directors of your HOA? Potential Liability (Part 2 of a Series)”

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The enforcement of covenants, conditions, and restrictions (“CC&R’s”) is among the most criticized of the duties performed by the Board of Directors of community associations, but is also the most important responsibility. CC&R’s govern many activities in a community including house designs, parking regulations, maintenance and repair of the common areas, and collection of assessments. Sensational “Gotcha” type news stories highlight enforcement practices of some associations, which contribute to a false perception that associations in general lack common sense. However, studies repeatedly show that the overwhelming majority of people  living in neighborhoods governed by HOAs believe that the rules in their communities benefit them.

Continue reading “Benefits of HOAs Part 2: How is Covenant Enforcement Good for Owners?”

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Although Virginia law does not address who can perform a reserve study, it is clearly in the best interest of an association to hire a credentialed professional to conduct a reserve study for the community. Professionals who provide reserve studies include licensed Professional Engineers (PE), Architects (AIA and/or RA) and experts such as a Reserve Specialist (RS) or Professional Reserve Analyst (PRA).

Continue reading “How does our HOA hire a Reserve Study specialist? (Part 3 of a 3 part series on Reserves)”

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Recent amendments to the Americans with Disabilities Act (the “ADA”) regulations limit the definition of “service animal” to any dog that is individually trained to do work or perform tasks for the benefit of an individual with a disability, including a physical, sensory, psychiatric, intellectual, or other mental disability. The amendments specify that providing “emotional support, well-being, comfort, or companionship do not constitute work or tasks” under the new definition.

On the other hand, if your situation is not an ADA issue but rather a Fair Housing issue, a recent memo clarifies that the new definition is not applicable to the Fair Housing Act (the “FHA”). The FHA does not contain a specific definition of “service animal.” Under the FHA, animals that provide emotional support have, in certain instances, been recognized as necessary assistance animals as a reasonable accommodation. The FHA permits individuals with disabilities to keep an assistance animal as a reasonable accommodation when there are limitations imposed by the homeowner or condominium association on animals and pets.

Continue reading “HOAs, ADA, and FHA: regulating “Service or Assistance Animals””

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We’ve mentioned already the abundance of news articles criticizing community associations. If these news stories are to be believed, then associations are unpopular indeed. But is it true that residents living in community associations are unhappy with their association? Research by the Community Associations Institute suggests that it is not. In fact, the research suggests that more people than ever are choosing to live in communities with associations, and the overwhelming majority of those people are happy with their association.

Statistics compiled by the Community Associations Institute show that the number of associations continues to grow. In 1970, just ten thousand communities, with a combined 2.1 million residents, were governed by associations. Today there are over 309,000 communities governed by associations. More than 62 million Americans live in associations. 1.75 million volunteers serve on community association boards, and a full 26 percent of the eligible U.S. population volunteers for an association at some point during a year, according to one estimate. That kind of service simply would not happen if associations were as widely disliked as has been portrayed.

Common Interest Communities

Continue reading “Benefits of HOAs Part 4: What do homeowners really think about their associations?”

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The Virginia Code has provisions that provide members of condominium associations and homeowner associations with the ability to request copies of books and records. The statutes have also permitted  associations to recover the costs of copying the requested books and records.

This blog post highlights a new statutory provision affecting common interest communities. On July 1, 2012, HOAs and condo associations will only be able to recover these copying costs if the association has adopted a cost schedule.

Continue reading “Virginia Statute – HOAs must adopt “Cost Schedule” to recover copy costs”

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We discussed Governing Documents for homeowners associations and Governing Documents for condominium associations. These governing documents for your community association must be read in conjunction with certain state and federal laws. In this article, we will discuss those relevant laws that must be considered by your HOA.

Continue reading “How important are state statutes and case decisions in governing your HOA?”

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A Virginia Circuit Court case highlights the expense and time commitment required when a homeowner sues a common interest community (referred to as “HOA” in this article). Furthermore, this case illustrates that HOAs can rarely predict or control when they may be dragged into a lawsuit.

In this case, Hornstein v. Federal Hill Homeowners Association, a homeowner had her house for sale with a pending sales contract. Pursuant to Va. Code Ann. § 55-509.5, the HOA provided a disclosure packet that revealed that the homeowner’s fence was not located on her property. In fact, the homeowner’s own survey confirmed that fact. The pending sales contract fell through.

The homeowner sued the HOA in Fairfax Circuit Court for slander of title and tortious interference with contract, including a claim for “bodily injury,” and “mental anguish.” The HOA prevailed in the case, leading to the homeowner’s petition for appeal to the Virginia Supreme Court. [UPDATED: The Virginia Supreme Court refused to hear the case, meaning that the Circuit Court’s decision stands].

Another battle has been waged regarding whether the HOA’s insurance carrier had a duty to defend the HOA in the underlying litigation. When the HOA’s insurance carrier denied coverage and representation, the HOA sued the insurance carrier. The case was removed to the federal court. The 4th Circuit District Court agreed with the insurance carrier. The HOA appealed and the 4th Circuit Court of Appeals reversed the trial court and held that the insurance carrier had a duty to defend. The insurance carrier has appealed for a rehearing. [UPDATED: the insurance carrier lost its appeal and was ordered to pay the HOA $217,308.86 for the attorneys’ fees the HOA incurred].

For a brief review, the HOA provided the disclosure packet in February 2006. After the homeowner’s pending sale fell through, she sued the HOA in August 2007. As we near August 2010, the underlying case may be close to resolution, but litigation with the insurance company may be far from resolving. Based upon the amount of litigation, we can assume that the HOA’s attorneys’ fees have reached six figures. Obviously, payment for these attorneys’ fees is then passed onto the homeowners (unless the case shifts payment of the attorneys’ fees to the losing party, but even then, courts rarely award the full 100% of the incurred fees).

Many lessons can be drawn from this experience. Most importantly, HOAs need to review their insurance policies to make sure they are covered fully for worst case scenarios. Our experience has shown that “anybody can sue anybody for anything at any time.” Although the plaintiff may not win (and did not win in this case), the ensuing litigation will take abundant resources. We can help you review your documents and insurance policies with the necessary professionals to protect your HOA, and homeowner interests.

Tarley Robinson, PLC, Attorneys and Counsellors at Law

Williamsburg, Virginia

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The 2014 session on the  Virginia Legislative Action Committee (“LAC”) created new experiences for our committee. Each year on the LAC brings new challenges, and in my second year as Chair of the LAC, we experienced our most active General Assembly session.

The LAC’s mission is to monitor and advocate for legislation affecting HOAs and condominium associations. All of the bills cited below are effective July 1, 2014 unless otherwise noted.

Continue reading “2014 Legislative Update for Virginia HOAs”

Hard to believe that the CAI Law Seminar in Las Vegas was 7 weeks ago.  I have been meaning to report on the seminar but the practice has kept me very busy.

The Law Seminar provides a unique learning opportunity to discuss emerging trends, practices and legislative issues important to the practice of community association law. Attendees include attorneys, management professionals, and other industry leaders.

The Law Seminar was excellent this year! I attended education sessions each day that were well-presented, topical, and detailed.  My colleagues in the HOA and condominium industry have a lot of experience to share.

I attended a session that reviewed a case study on Repair Projects, Special Assessments, Association Divisiveness and Litigation.  This session provided a lot of good information.  Two of the attorneys involved in advising the association, and in defending the subsequent litigation, provided an in-depth analysis of a community that needed to move forward on repair projects but did not have sufficient funds in its reserve account.  (Sound familiar?).  The program identified the issues faced by the community, the challenges of getting consensus from the owners on the needed repairs, and the solution that the board pursued.   There are many communities in Virginia that have aging infrastructures and will soon, if not already, be facing the challenges of making repairs and having the money to do so.  The presented case study provided a road map for a major repair project.

I also had the opportunity to serve on a “Panel of Pundits.” Along with colleagues from Colorado, Massachusetts, Hawaii and New Jersey, we fielded questions from the audience concerning community association issues.

Attorneys that make the effort to attend and participate in events like these help us all to stay current on issues that affect HOAs. That enables us to provide better service and advice to our clients. Because the law changes quickly, make sure your HOA law firm stays current.

Tarley Robinson, PLC, Attorneys and Counsellors at Law

Williamsburg, Virginia