May 2011

Late last week, StockMarketsReview.com posted a story entitled “Revenge Foreclosure Is a Tool in the Hands of HOAs.” The story begins by asserting that a new term “revenge foreclosures” has been coined in the HOA world. “It refers to the increasing number of foreclosures being initiated by homeowners associations against house owners for unpaid association fees. It is easier for the associations to foreclose than the banks because here the question of proof of ownership does not arise.” 

The story goes on to describe the following scenario: “The associations engage debt collectors to do their work. LM Funding grants loans to the associations and then brings their books up to date. The firm shares a proportion of the collected fees. Frank Silcox, CEO of the firm said about the associations foreclosing on the unit owners, “They are angry, and they make a short-term decision. They’re thinking they just want to get back at them.”Continue Reading Revenge Foreclosures: Are you kidding me?

Homeowners associations are often faced with the challenge of enforcing covenants when that enforcement is not politically popular.  Recently, an association in Louisiana directed a couple to remove a large, bright banner from their front yard.  The association’s covenants only permit the display of real estate signs.

 

Unfortunately for the association, the banner expresses support for the couple’s son, who is a Marine in Afghanistan.

  Continue Reading Sometimes Covenant Enforcement is a No-Win Situation

At long last, today is the final day of the 2011 Colorado Legislative Session. All in all, it was a good session for HOAs in Colorado. Unfortunately, the HOA registration clean-up bill (“SB 253”) was derailed by the House Majority Leader at the 11th hour.

SB 253, backed by CAI’s Colorado Legislative Action Committee (“CLAC”), was introduced to clean-up and clarify provisions of HB 10-1278 which last year created the HOA Information and Resource Center and HOA Registration – both of which are under the auspices of the Colorado Division of Real Estate. As fully discussed in our April 21st blog posting, SB 253 was intended to provide clarity and protection for HOAs from unnecessary litigation and potential legal exposure relating to the statutorily flawed registration requirement. Continue Reading HOA Registration Clean-Up Bill Dead

Imagine this, you are watching your five-year old son playing in the grass located directly in front of your townhouse when security for your HOA informs you that your son can play in the street or back alley – but not on the grass. You then receive a violation letter informing you that children are not permitted to play in the common areas. As KVVU Las Vegas reported, that’s exactly what happened to Ramona Sjogren. 

Okay – is this story a joke? Did this HOA really have an employee tell a resident to have her five-year old play in the streets and alleys instead of the common areas? Has this HOA considered the potential liability associated with kids in the community getting hit by a car backing out of a garage or driving down a street? What kind of insurance coverage is the association carrying? Do you think this HOA has ever heard of the Federal Fair Housing Act?Continue Reading Play In the Streets and Not On the Grass!

There has been much debate surrounding the super lien in light of House Bill 11-1197 which was derailed this past legislative session.

CR.S. 38-33.3-316(2)(b) provides that the association is entitled to a super lien for assessments which would have come due during the six months immediately preceding the filing of a foreclosure action by an association or a party holding the first Deed of Trust.Continue Reading Super Lien Clarification and Suggestions

The Tennessee Court of Appeals in the case of 4215 Harding Road Homeowners Association v. Harris, 2011 WL 145915 (Tenn.Ct.App.2011) recently ruled that a homeowners association had the right to permanently force a resident out of her condominium unit as a result of hoarding activity leading to unsanitary conditions within the unit and a resulting offensive odor in the common areas.Continue Reading Hoarding May Cause Owner to Lose Unit

With only 9 days left in the Colorado legislative session, two significant bills remain in play for HOAs in Colorado. 

The transfer fee bill (“SB 234”) was passed on 3rd reading Friday by the full Senate. While the bill has been significantly amended by the Senate, the HOA provisions we outlined in our April 26th blog posting remain in place. SB 234 is currently slated to be heard Wednesday by the House Committee on State Affairs. Continue Reading Transfer Fee & HOA Registration Clean-Up Bills Headed to the House