The Washington State Legislature has proposed two new residential construction warranty bills — HB 1045 and HB 1393. Neither bill affects condominium developments. It’s too early in the legislative session to determine whether the bills have sufficient legs to get to the full legislature for a vote.
In Birke v. Oakwood Worldwide, 2009 Cal. App. LEXIS 19 (January 12, 2009), the California Court of Appeals ruled that a cause of action for nuisance was adequately pleaded by a five year-old child against a company that managed an apartment complex, where smoking was banned in most of the common areas but there was still limited exposure to second-hand smoke in the common area set aside for smokers.
The Seattle Times published an article today that documents the rising number of foreclosures in Puget Sound. Continue reading
Solar Panels and Homeowner Associations
By Brian P. McLean, Leahy.ps
On January 13 and 14, 2009, the State Legislature introduced two bills that would impose limitations on a homeowner association’s ability to regulate the installation of solar energy systems in Washington State. House Bill (HB) 1112 and Senate Bill (SB) 5136 are intended to further the State’s policy favoring greater use of renewable energy. HB 1112 applies to all associations, including condominiums. SB 5136 applies only to non-condominium associations. Continue reading
Renting in Non-Condo Homeowner Associations
By Brian P. McLean, Leahy.ps
In Washington State, there is no blanket restriction in RCW 64.38 (HOA Act) on either the rental of single-family homes or the authority of the homeowner association to restrict rentals. The obvert authority to enforce such restraints would arise in the association’s Declaration of Covenants, Conditions, and Restrictions (the “contract” between the owners regarding governance, enforcement, and behavior). Continue reading
Yurt Association Law: Developer v. Association Attorneys
Brian P. McLean, Leahy.ps
In Washington State, there’s a palpable and sometimes hostile split between attorneys who represent developers and attorneys who represent owner associations (particular construction defect attorneys). (As for attorneys who represent owner associations in construction defect claims only, their interests are singular in nature.) The purported polarization between developer attorneys and association attorneys is an old debate dressed and propped up in a new fact pattern. Continue reading
The New Homeowners Association – a Burdened Creature, Tripping down Sequoia Lane, with a Knife in its Back
by Brian P. McLean, Leahy.ps
When it comes to homeowner associations, governments are struggling. Competing camps, conflicting policies, and the end result: a crippled creature chased into a burning clubhouse by owners carrying pitchforks and torches . Governments want to limit demand for municipal services, preferring to stack them instead on the shoulders of developers, and eventually associations and their owners. Desiring to increase consumer protection because of actual and perceived abuses by associations, governments simultaneously try to limit the ability of associations to collect assessments, kicking the feet of associations out from underneath them. It’s the unfunded mandate meets inability to tax. (Combine that with no reserve studies, and the amount of the unfunded mandate is difficult to ascertain until the need for the expense is immediate.)
By Brian P. McLean, Leahy.ps
Fannie Mae is updating its review processes with respect to delinquent HOA dues (Announcement 08-34 | 12/16/08):
Fannie Mae is updating its delinquent HOA dues policy for the CPM Expedited Review and Lender Full Review processes to require that no more than 15 percent of the total units in a project can be 30 days or more past due on the payment of their condominium/association fee payments. This new policy applies to the review of both new and established attached condominium projects.
This was pointed out to me by Loura K. Sanchez of HindmanSanchez (Colorado).
By Brian P. McLean, Leahy.ps
On March 21, 2008, Washington State Governor Christine Gregoire signed into law Senate Bill 6215. The new law took effect on June 12, 2008, and requires condominium associations to update reserve studies annually and make mandatory disclosures to purchasers. This article describes what went into effect on June 12, 2008, what happens later, and some practical advice.
The new law affects reserve study professionals, declarants, associations, sellers, purchasers, and the agents that serve them. It is intended to create through disclosure greater transparency about the true cost of ownership in a condominium. It does not mandate that Associations create reserve accounts or raise association dues.
A copy of the law can be found on the State Legislature’s website: http://apps.leg.wa.gov/billinfo/summary.aspx?bill=6215
You can also find the law codified at RCW 64.34.380.
What Took Effect on Saturday, June 12, 2008?
If you’re a declarant, association, or community manager, the effect on June 12, 2008, was modest. After June 12, 2008, each Public Offering Statement or Resale Certificate should include a copy of the associations reserve study for the current fiscal year that meets all of the requirements of the new law, or the following disclaimer:
By Brian P. McLean, Leahy.ps
The Best of Times. It’s that time of year again when budgets pass. Property managers are hoisted on the shoulders of associations and doused with Gatorade. Community associations soar. Accountants balance the books.
The Worst of Times. It’s also that time of year when budgets fail. Property managers are left turning, turning in the wind. Community Associations, like wingless rocks, descend into the fiery bowels of budget hell. Attorneys—rather than accountants—balance the books. And the property itself—once a precious jewel glinting in the sun—begins a death spiral toward a certain future that includes a dry community swimming pool filled with leaves and parched frogs.
Slouching Toward Bedlam and Madness. We should celebrate the associations that soar. But celebrating success is boring. Let’s instead dwell for a moment on what’s gone wrong with your budget-making process:
