Posts by John Tarley:
- Before the hearing, the Board
- did not attempt to settle reasonably;
- did not explain variance procedure; or
- did not properly send notice of violation or opportunity to cure.
- During the hearing,
- The Board was disorganized;
- A Board member was rude;
- The Board was not prepared for the hearing;
- The Board did not give owner time to gather/present case; or
- The Board did not view property/alleged violation.
- After the hearing,
- The Board did not give valid reasons for decision; or
- The penalty was unreasonable.
- Draws or distributions to owners;
- Payroll to full-time equivalent employees (payments made to independent contractors reported on a 1099 are not considered “payroll” because ICs are not “employees” and will not be calculated in your payroll). Also, the payment of state and local income tax on employee compensation counts in the “payroll” category;
- Payment for group health-care benefits, including insurance premiums; and
- Employee retirement benefits.
HOAs and Mediation: Not always a viable alternative to Litigation
April 23rd, 2020We have written extensively on the virtues of alternative dispute resolution, specifically mediation, to resolve disputes. Litigation is a time-consuming and expensive undertaking, and in the end, both sides are generally unhappy with the result because of the costs and time incurred.
But although we encourage mediation generally, mediation in HOA litigation is a much more complex and difficult undertaking. In this blog post, we will discuss difficulties with mediating HOA disputes.
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Stop in the name of the…homeowner association! – Can private HOA security forces pull you over?
April 23rd, 2020Virginia’s Attorney General, Mark R. Herring, published an advisory opinion concerning private security forces used by community associations (the “Opinion”). These security forces often act as quasi-police departments and help relieve localities by providing routine patrols in private communities. In the Williamsburg area, the local police often defer to HOA security forces for regular patrols, and health and safety checks. When it comes to more serious police action, like issuing traffic tickets and arresting homeowners, the roles and authority of HOA security forces becomes less clear. This blog post discusses the role of private security forces in homeowners’ associations and the Opinion that addresses some of these concerns.
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Simple Tips for Effective HOA Due Process Hearings
April 23rd, 2020This blog post focuses on addressing one major source of discontent in community associations: due process hearings for alleged violations of the community’s governing documents or condominium instruments.
Homeowners want fairness
Complaints about HOA due process hearings can be split into at least three different categories:
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Can an HOA prohibit the posting of political signs?
April 23rd, 2020Well, it’s that time of year when signs start popping up in neighborhoods as election day draws near. In neighborhoods governed by a homeowner or condominium association, boards of directors are sometimes asked to enforce sign restrictions when one neighbor complains about another’s political sign (and probably, the neighbor’s choice of candidate).
A person’s first response typically is “I have the right to free speech and you can’t stop me from posting my political sign on my property!” However, is that the end of the discussion? This blog post reviews a community association’s rights and responsibilities regarding political signs.
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The Same Employer But a Different Result in this Virginia Supreme Court Case Regarding the Enforceability of Noncompete Agreements
April 23rd, 2020Over the course of the past 20 years, the Virginia Supreme Court has tweaked the law governing non-compete agreements. In its latest case, the Court came full circle by invalidating a noncompete agreement that used the same language the Court had upheld 20 years earlier in a case involving the same company.
As we have written before, trial courts will enforce noncompete agreements when the agreements (1) are narrowly drawn to protect the employer’s legitimate business interest, (2) are not unduly burdensome on the employee’s ability to earn a living, and (3) are not against public policy. Importantly, the employer has the burden to prove each of these elements. When evaluating whether the employer has met that burden, trials courts should consider the “function, geographic scope, and duration” elements of the noncompete restrictions. These elements are “considered together” rather than “as three separate and distinct issues.”
Further, if the noncompete agreement is too broad or otherwise unenforceable, a Virginia court will not rewrite, or “blue pencil” the agreement to make it enforceable. Therefore, it is important that you work with your business attorney to draft an enforceable non-compete agreement.
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You obtained a PPP Loan? Here are some answers to questions you may have on spending the funds
April 23rd, 2020With the COVid-19 Pandemic, amongst the financial packages available to small businesses is the Payroll Protection Program (“PPP”). Small businesses must make themselves aware of the benefits of these loans. This blog post assumes you were able to obtain a PPP loan, and provides you with basic information you need to know, if you want your PPP loan to be forgiven (essentially converting the loan to a grant).
Please note that what follows is NOT legal or tax advice. These are simply my observations and notes based upon information I have gathered through an analysis of the CARES Act, an analysis of proposed regulations governing the PPP, and my attendance at numerous webinars given by tax and banking experts explaining the PPP.
YOU SHOULD CONTACT YOUR TAX ADVISOR AND BANK FOR PERSONALIZED INFORMATION FOR YOUR CIRCUMSTANCES. The purpose of this blog post is to provide you basic information that you can use to educate yourself about the PPP loans, so you can use that knowledge to ask more informed questions of your financial professionals.
First, if you were funded with a PPP loan, the period of time for calculating possible forgiveness of the loan is 8 weeks from the time you were funded. Therefore, if you were funded on April 20, 2020, your allowable expenses can only be calculated for the 8 weeks after that date.
Second, as the name suggests, the PPP is primarily to be used for payroll. At this point, it appears as though your business must spend at least 75% of the PPP funds on payroll in order to qualify as fully forgiven. Be advised that no employee (or owner) can be paid from the PPP loans at an amount greater than $100,000 per year, pro-rated over the 8-week period.
What constitutes “payroll?” Here are the current general guidelines, but there are more specifics that go beyond the scope of this blog post, so your particular situation may vary:
Third, besides payroll, you can use the PPP loan to pay your business’ lease or mortgage payments. Again, the 8 week period applies, and prepayment of future rent or mortgage probably will be disallowed in calculating the “forgiven” portion of your PPP loan expenditures.
Fourth, you can use the PPP loan proceeds to pay your business’ utilities expenses, as well as interest on any other debt obligations that were incurred before you obtained the PPP loan.
As you can see, the PPP loan can work for sole-proprietors, as well as small businesses with multiple shareholders/members. You are an employee of your small business, along with any other employees you may have.
Finally, so long as you follow the guidelines, your PPP loan will be forgiven if the proceeds are used for the program’s intended purposes (see above) over a period of time no more than 8 weeks from when your loan was funded. The bank where you obtained your PPP loan will make the determination of forgiveness, based upon your documentation and your expenditures. For any amount of the loan used that does not meet the PPP loan criteria, that amount will NOT be forgiven.
As a reminder, nothing in this blog post should be considered legal advice or tax advice, but instead is a very basic overview of how to spend your PPP loan proceeds. Contact your tax or financial advisers for your particular situation. But in any case, document every PPP expenditure you make to support your case to have the entire PPP loan forgiven.
At the end of the day, we know many of our small businesses cannot afford to seek out legal advice at this time, but it is vitally important that if we are to survive the financial crisis arising out of this novel Coronavirus pandemic, and we have to be willing to help each other out. As information is made available, we will keep you updated as best we can. Stay safe!
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Residential construction and mechanic’s liens; how you can protect your mechanic’s lien rights
April 23rd, 2020
Courtroom
With the downturn of the housing industry, we have seen a dramatic increase in the number of construction disputes, especially in residential construction. Owners are battling with the contractors, and subcontractors are trying to get paid by somebody. These cases lead inevitably to litigation.
The property owners and the building contractor should have a written contract. However, the subcontractors sometimes find themselves in a difficult situation, unpaid by an insolvent building contractor. It is usually then that we will receive a call from a subcontractor asking about their mechanic’s lien rights. Unfortunately, it may be too late for that subcontractor to preserve their mechanic’s lien rights because they failed to provide proper notice at the outset of the work performance. This blog post provides a brief overview of the notice requirements for subcontractors to preserve mechanic’s lien rights. Read the rest of this entry “
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What are Condominium Instruments?
April 23rd, 2020In our last blog we discussed Governing Documents for homeowners associations. Condominium communities also have governing documents. However, the terminology we use to refer to these documents is “Condominium Instruments. “
What comprises the Condominium Instruments?
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Immigration and Employers – Remember your I-9 Forms
April 23rd, 2020There are many issues for entrepreneurs starting and operating their small businesses. In that light, immigration is not just a national issue involving major companies. Small businesses must be aware of government requirements, too.
Since 1986, the Immigration and Nationality Act has required employers to to verify that its employees are able to accept employment in the United States. Consequently, the I-9 form was developed. Every employee must complete an I-9 form at the time of hire. Employers are required to ensure the form is completed within three days of hire. Furthermore, even if the company engages contractors, the company could be liable if it knows the contractor employs unauthorized workers. Obviously, criminal penalties await those who fraudulently fill out the I-9 form, but civil penalties also can be levied against companies who fail to keep proper records, even if the employee is legally authorized to work in the United States.
As always, ask your attorney to make sure that your company’s legal issues are covered so that you can focus your energy on growing your business.
Tarley Robinson, PLC, Attorneys and Counsellors at Law
Williamsburg, Virginia
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ADA, FHA, and HOAs And Service Animals: Florida Association Sued for housing discrimination
April 23rd, 2020A short while ago we wrote a blog piece on the issues relating to community associations regulating service animals. In that blog we noted that the Fair Housing Act (“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.” In Broward County, Florida, that county’s Civil Rights Division filed suit against a condominium association for violating the FHA by refusing to consider a person’s request for an “emotional servant animal,” a chihuahua.
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