California ADU law could inadvertently create housing issues
A 2024 California law allows homeowners to divide their property and sell ADUs like condos, meaning sellers and buyers would need to create an HOA and decide on ways to take care of the property. The law aims to make housing more affordable, but it could lead to drawbacks, such as overcrowded neighborhoods, parking challenges and a multiyear conversion process. Also, some cities are unprepared for the law's implementation, says real estate agent Lindsey Harn.
What rights does accused have in disciplinary hearings?
Disciplinary hearings in California aren't like criminal court proceedings, so an accused owner can't demand that an HOA require the complainant to be present at their hearing. The procedure for such hearings and the "due process" are meant to be simple, so there's no right to a jury or counsel and no right to cross-examine witnesses. However, as a best practice, HOAs can implement written hearing procedures so owners and board members know what to expect, says Kelly Richardson, a Fellow of the College of Community Association Lawyers.
Conflicting federal policies may cost residents more on flood insurance, and leave them at risk
Conflicting federal policies reportedly may cause thousands of residents in flood-prone areas to face higher flood insurance costs or remain unaware of the risks posed by nearby upstream dams. Challenges occur because FEMA's points-based rating system requires communities to acquire info to map and warn about potential dam failures to get the best insurance discounts, but other federal agencies restrict the release of vital info. For example, Fort Collins, Colo., earned the most points of any community but still failed to get the maximum discounts because it didn't have enough info about dams.
Why Arizona homeowners may have higher HOA dues
Homeowners in Arizona, reportedly the second most expensive state in the US for HOA fees, are experiencing steep hikes in their fees, driven by escalating insurance costs. An HOA can see its insurance premium jump anywhere from 20% to 300% because of just one or two claims, with one HOA experiencing a premium increase from $60,000 to $249,000 annually, according to a board member. To mitigate future claims and fee increases, some boards are mandating owners to replace water heaters every seven years and use smoke and fire alarms.
Condo's 650 owners may be forced to leave over safety law
More than 650 condo owners at Florida's Commodore Plaza are concerned about having to leave their units due to a past due 40-year building recertification and an upcoming Miami-Dade County unsafe structures hearing. Residents have faced a lack of transparency from the COA and have filed complaints with the state, which has yet to respond satisfactorily. Lawmakers are exploring changes to the new condo law requiring reserve funds for structural repairs to help prevent residents from becoming homeless due to financial strains.
San Francisco's Millennium Tower owners could face $10k fine for open windows
San Francisco's Millennium Tower, known for its structural issues, faces new challenges as the board considers fining unit owners up to $10,000 for leaving windows open during high winds. Despite a city mandate to install stronger window support arms, progress has been slow, with only a third of the windows upgraded. Also, the COA has been hit with a $7 million lawsuit from an owner over regular plumbing backups, which some experts link to the condo's leaning and sinking problems.
Five recommendations North Carolina lawmakers may consider to tackle HOA disputes
The article from NC Newsline outlines five recommendations that North Carolina lawmakers might consider to resolve disputes within homeowners associations (HOAs). These suggestions aim to enhance clarity, fairness, and accountability in HOA operations. The proposed measures include improving transparency in financial dealings, enforcing more straightforward communication channels between homeowners and HOA boards, and instituting clearer guidelines for dispute resolution. These changes are intended to reduce conflicts and ensure smoother governance within HOA communities.
Can HOA boards skip meetings and elections?
The article on WCNC discusses the legal obligations of homeowners associations (HOAs) regarding the holding of annual meetings and elections. It emphasizes that state laws typically mandate these associations to conduct annual meetings to ensure transparency and member participation in governance. These meetings are crucial for electing the HOA board and addressing community concerns, reinforcing the democratic process within residential communities.
Study: Homeowners Associations Are Booming
A recent study highlights a significant growth in homeowners associations across the U.S., emphasizing their increasing role in residential real estate. These associations are now managing a vast portion of new housing developments, impacting housing trends and community management practices. The study indicates that this surge is not just in traditional suburban areas but also in urban and semi-urban regions, reflecting a broader shift towards organized community living that prioritizes managed services and amenities.
4 Changes Fannie and Freddie Have Made on Condo Building Policy
The number of condominium and homeowner associations (COAs) is expected to rise from 365,000 in 2023 to as many as 370,000 in 2024, comprising nearly one-third of the U.S. home inventory, according to a recent study and forecast by the Foundation for Community Association Research. Community associations account for about 30% of the overall housing stock, which includes many new construction homes and a significant number of buildings over 40 years old, stated CAI Chief Strategy Officer Dawn Bauman. In the wake of the tragic Surfside, Florida condominium collapse that killed 98 people three years ago, policies regarding condo building safety have undergone significant changes. Fannie Mae and Freddie Mac have introduced stricter condo safety policies, such as broader use of attorney title opinion letters and improved transparency through an online tool for COAs to check project ineligibility information. While one-third of title claims involve issues not found in routine searches, the cost of insurance coverage has decreased by almost 8% since 2004. "Seller-pay" regimes in many states help minimize buyer costs for insurance. However, according to the American Land Title Association (ALTA), condos remain particularly vulnerable to risks.
Who Will Adopt North Carolina’s Abandoned Roads?
North Carolina’s orphan roads issue has long been brewing under the radar, but the state's rapid population growth is shedding light on this problem. Orphan roads, lacking clear owners and not maintained by municipalities, exist in subdivisions with homeowners' associations or road maintenance agreements, causing confusion and financial burdens for homeowners. The lack of road turnover to cities or counties results in roads not meeting required standards, making them ineligible for state takeover. Many potential homebuyers are now aware of this situation, as the North Carolina Real Estate Commission's disclosure forms do not include this information. The North Carolina Department of Transportation imposes density requirements and specific conditions for road maintenance, disqualifying many orphan roads from meeting these criteria. Consequently, hundreds of miles of rural roads and streets across the state are left unattended and unclaimed, earning the moniker "orphan roads." Notably, North Carolina is one of five states where most non-city local governments do not have their own road departments, worsening the challenges of addressing the orphan roads issue. As the state's population continues to grow, the urgency to find solutions to this problem escalates.
HOA becomes First Firewise USA site in Green Valley
In a groundbreaking development, an HOA in Green Valley, AZ, has secured its place in history by becoming the very first local homeowners association to achieve certification as a Firewise USA site. The momentous feat was initiated by a dedicated group of residents who were already familiar with the Firewise program through their volunteer work with the GVFD (Green Valley Fire Department). Becoming a Firewise USA site is no small task; it requires immense dedication, meticulous planning, and relentless effort from a committed team of volunteers within the community. Becoming a Firewise USA site requires significant effort and strategic planning by a committed group of volunteers within each community. An HOA must first complete a comprehensive wildfire risk assessment of their community with the guidance of a local wildfire expert. The community must then formulate a meticulous three-year action plan that prioritizes crucial steps to reduce the risk of ignition to homes. After becoming certified, each neighbor is expected to annually dedicate at least one volunteer hour per dwelling unit to wildfire risk reduction and is required to complete educational and risk reduction actions outlined in the three-year plan. With this commendable achievement, the Green Valley HOA joins a select group of approximately 125 Firewise communities in Arizona, with about 20 of them located in Southern Arizona. With more communities and homeowners’ associations showing interest in the Firewise program, the state's landscape is witnessing a remarkable transformation in wildfire preparedness and prevention. Green Valley's pioneering achievement sets a shining example, instilling hope for a safer and more resilient Arizona in the face of future wildfire challenges.
Navigating changing laws and regulations: How HOAs and COAs can work with banking partners to plan and prepare
A new Florida law, effective July 1, will increase accountability for condominium associations (COAs) in buildings three stories or taller. The law addresses key areas such as reserves, recordkeeping, maintenance, and repairs. COAs can prepare for compliance by collaborating with their banking partners to prioritize capital projects, select appropriate contractors, and explore loan options. Examples of necessary projects include roof replacement, concrete restoration, painting to prevent leakage and elevator maintenance. By working together, project managers and bankers can ensure these tasks are appropriately prioritized. This legislation affects Florida’s approximately 49,000 HOAs and 27,000 COAs, impacting a significant number of homeowners across the state.
Proposed Bill Would Extend FEMA Aid to Condos, Co-ops, & HOAs
Congress is currently reviewing the proposed Disaster Assistance Fairness Act, which seeks to address disparities in Federal Emergency Management Agency (FEMA) recovery assistance provided after natural disasters. The bill aims to extend FEMA aid to HOAs, co-ops, and condos, offering essential support like roof repairs and debris removal, similar to what single-family homeowners currently receive. Presently, shared interest communities often do not qualify for federal disaster aid, hindering their ability to rebuild homes and communities. The bill, known as H.R. 3777, proposes amending the Robert T. Stafford Disaster Relief Act to include critical common elements of community associations under FEMA's Federal Assistance to Individuals and Households Program. Additionally, H.R. 3777 would make HOAs and cooperatives eligible for FEMA's assistance in debris removal after major disasters. The bill has garnered support from national organizations advocating for multifamily homeowners and boards. According to Thomas M. Skiba, CEO of the Community Associations Institute, this act will provide crucial access to FEMA's recovery resources, enabling condominiums and cooperative buildings to be restored to habitable conditions after various natural disasters.
HOA Homefront: What Happens at an HOA Disciplinary Hearing?
Many homeowners often overlook covenants and rules until an issue arises. Disciplinary hearings are intended to encourage owners to be good neighbors, not to target them. Boards typically do not publicize their enforcement activities, so don't assume you're the only one. Making the issue personal can reduce credibility and alienate the board from the start. Homeowners should take proactive steps to prepare for hearings, advises Kelly Richardson, a Fellow of the College of Community Association Lawyers. Key actions include reading about the policy violation in the governing documents and determining if the violation can be quickly corrected. Confirm attendance with the community manager, and plan your presentation, including both arguments and documentation, in advance. If the violation is a first-time issue, show proof that it has been corrected and request a fine waiver. Address the issue rather than arguing about the policy. HOA disciplinary hearings are not court proceedings but meetings between neighbors. Emphasizing the value of neighborliness can lead to a positive outcome for all parties involved.
Condo Seeking to Evict Dogs Gets Gobsmacking Legal Estimate to Make Their Case
In recent developments, residents who refuse to provide the necessary paperwork for accommodating emotional support animals (ESAs) may face fines or suspensions from their Condo Owners' Associations (COAs) for violating no-pet provisions. If residents remain non-compliant, COAs could seek legal intervention, which could cost up to $20,000, as experienced by a 30-unit COA in Palm Beach, FL. Alternatively, COAs might file for mediation to resolve the issue in court. Despite the ease of obtaining ESA certificates online, the government has deemed these insufficient proof for accommodation needs. Under the Fair Housing Act, no-pet buildings must adjust their rules to accommodate disabled persons, including allowing animals that assist with their disabilities. However, COAs are permitted to conduct meaningful inquiries into the disability and its connection to the need for an ESA, especially if the disability is not visibly apparent. Let us know your thoughts by leaving a comment at HOACommunityLeaders.com.
HOAs must file BOI reports with the Financial Crimes Enforcement Network
Despite pending Congressional actions to limit the Corporate Transparency Act, HOAs and board members are currently required to comply with beneficial ownership information (BOI) reporting requirements. Accurate and timely reporting is crucial to avoid severe penalties, including fines of $500 per day for ongoing violations and criminal penalties such as imprisonment for up to two years and fines up to $10,000. CAI is advocating for efforts to relieve HOAs from the BOI mandate, arguing that HOAs were likely not the intended focus of federal financial crime prevention efforts. Additionally, individuals may face civil and criminal penalties for willfully failing to file required BOI reports or for submitting incomplete or false ownership information to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FINCEN).
Leaders In HOAs Discuss How to Improve Sustainability Practices
Residents from over a dozen Montana HOAs recently attended a sustainability workshop addressing education, financial challenges, and practical solutions for HOAs. The workshop covered topics such as achieving sustainability certification, combating wildfire threats, forming action committees, and fostering collaboration between community managers and renters. The workshop director highlighted the excellent collaboration between HOAs and property managers but noted differences between vacation rentals and second homeowners, emphasizing the need for tailored approaches based on varying priorities and resources. Key focus areas included landscaping, waste and consumption, finance and governance, and energy efficiency. Organizers plan to gather feedback from attendees to create a resource guide for homeowners based on these categories.
‘It Will Get Better,’ Insurance, Fees for Hawaii Condo Owners Continue to Rise
Condo owners in Hawaii are grappling with significantly higher insurance premiums, with some facing increases of more than double the previous rates. This spike in costs has been exacerbated by recent natural disasters nationwide, including the devastating Lahaina fires. In addition to insurance hikes, owners are dealing with rising maintenance fees. To tackle these issues, the Hawaii Economic Association convened on Thursday to discuss potential solutions. The consensus was that while risks need to be mitigated, improvements will take time. Experts also cautioned that due to climate change, insurance premiums are unlikely to revert to the levels seen three or four years ago.
Co-op and Condo Boards Must Accommodate Hearing-Impaired Residents
Recently, an issue arose in a Manhattan co-op where a shareholder with "profound deafness" struggled to understand voices on the intercom. The resident questioned the legal requirements for an intercom system accommodating disabilities. Federal, state, and local laws mandate that co-op and condo boards are legally obligated to accommodate hearing-impaired residents who request intercom systems suited to their needs, such as visual interface devices. Non-compliance can lead to discrimination lawsuits for not engaging in "cooperative dialogue" with the resident and even award monetary damages to compensate for things such things as emotional distress.