tag:blogger.com,1999:blog-22955438383124723752024-02-08T04:47:18.396-08:00Weiss & Weiss, Attorneys at LawUnknownnoreply@blogger.comBlogger7125tag:blogger.com,1999:blog-2295543838312472375.post-13659598570488628262016-06-08T16:55:00.000-07:002016-06-08T16:55:03.513-07:00"What Happens Now"?-Homeowner Association Sex Offender Restrictions
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<b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="font-family: "Times New Roman",serif; font-size: 12pt; line-height: 107%;">Your
association wants to pass an amendment to its governing documents which
prohibits registered sex offenders from living in the subdivision… What Happens
Now? <span style="mso-spacerun: yes;"> </span><o:p></o:p></span></i></b></div>
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<span style="color: #444444; font-family: "Times New Roman",serif; mso-fareast-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"> </span></span><span style="color: black; font-family: "Times New Roman",serif;">Are there registered
sex offenders in your community? This is a question that used to be difficult
to answer, but in 1993 the United States Supreme Court ruled that information
on sex offenders could be posted on the internet. I</span><span style="color: black; font-family: "Times New Roman",serif;">n
1994 the United States Congress passed the Violent Crime Control and Law Enforcement Act of 1994", aka Megan's Law. Megan's Law makes it mandatory for all states put a method in place for informing local residents when a sexual offender is moves into their community. While the notification databases which have been created in response to Megan's Law are very helpful, what else can homeowner and condominium owner associations do? Currently, there are close to 700,000
registered sex offenders in the United States. Some associations have begun
trying to ban sex offenders from their communities. This is a hot issue, and is
still up for debate. While some lawsuits have been brought to court, precedent
has yet to be set for this issue.<br />
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With more common areas in communities, residents are becoming increasingly concerned about sex offenders. Residents want to feel comfortable
sending their children to common areas such as pools or playgrounds and they
don't want registered sex offenders in the area.<span style="mso-spacerun: yes;"> </span>Many residents are also worried about the
negative impact that sex offenders will have on their property values.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="color: black; font-family: "Times New Roman",serif;"><span style="mso-spacerun: yes;"> <strong>Is it legal for your homeowner or condominium association to pass an amendment banning sex offenders?</strong> </span></span><span style="color: black; font-family: "Times New Roman",serif;">If the owners of a community want to pass an
amendment to their governing documents restricting sex offenders, they are most
definitely able to do so if they comply with the amendment requirements found in their governing documents.<span style="mso-spacerun: yes;"> </span>Enforcing this
restriction is the difficult part.<span style="mso-spacerun: yes;"> </span>It would be very difficult to restrict a
sex offender from buying a home. Restricting residency within the subdivision would be more
effective. This way you would only be preventing a sex offender from living
in a community, not restricting them from owning property. Although a little easier to enforce, restricting sex offenders from living in the subdivision may still prove difficult to enforce against future owners. <br />
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Banning sex offenders does come with its own set of risks.<span style="mso-spacerun: yes;"> </span>Banning sex offenders could give residents a
false since of security and cause them to live less cautiously than
necessary.<span style="mso-spacerun: yes;"> </span>There is also a huge
financial risk in passing these restrictions. Your community may have to go to
court to enforce this restriction at some point and this could prove to be a
very expensive and time consuming endeavor, especially if the sex offender is
already a homeowner.<span style="mso-spacerun: yes;"> </span>The residents of
the association must be willing to spend more money to cover the cost of
enforcing the restriction; otherwise it should not be approved.<br />
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</span><span style="font-family: "Times New Roman",serif;"> Courts have held that
(1), residency restrictions are a form of civil regulation intended to protect
children and thus, the principal argument against these restrictions (that they
amount to <i>ex post facto</i> laws) does not apply; (2), the federal
constitution does not include a right to live where one chooses; and (3),
residency restrictions are rationally related to states' (and the
association’s) legitimate interests in protecting children from harm.<o:p></o:p></span></div>
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<span style="color: black; font-family: "Times New Roman",serif;"> There are many issues to consider before your homeowner or condominium association passes an amendment banning sex offenders.<span style="mso-spacerun: yes;"> </span>Before approving or
voting on any restrictions you should speak with a lawyer who specializes in
community association law. <span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2295543838312472375.post-75820222728416793322016-06-08T16:28:00.000-07:002016-06-08T16:28:26.427-07:00"What Happens Now"?-Extreme Hoarding Inside Condominium Unit.
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<b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="font-family: "Times New Roman",serif; font-size: 12pt; line-height: 107%;">A
unit owner in your condominium association has become an extreme hoarder and
has allowed her unit to become unkempt with trash, animal droppings,
smoking and other conditions. Rancid odors from her unit emanate into the
common hallways and into other units.<span style="mso-spacerun: yes;">
</span>The Association has written letters, sent
emails and imposed fines. Other unit owners have even offered to pay to clean the unit, but the unit owner refuses to respond...What Happens Now? <span style="mso-spacerun: yes;"> </span><o:p></o:p></span></i></b></div>
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Times New Roman",serif; font-size: 12pt; line-height: 107%;"><o:p> </o:p></span></b><br />
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<span style="color: #444444; font-family: "Times New Roman",serif; mso-fareast-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"> </span>Most
condominium association governing documents contain requirements that unit
owners clean and maintain all portions of their unit and keep all parts of
their unit in a sanitary condition.<span style="mso-spacerun: yes;">
</span>These provisions also normally prohibit rubbish, refuse or garbage from
accumulating and prohibiting unit owners from engaging in any use or practice
which is or will likely become a source of annoyance to residents and other
owners. </span></div>
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<span style="color: #444444; font-family: "Times New Roman",serif; mso-fareast-font-family: "Times New Roman";"><span style="mso-tab-count: 1;"> </span>As
a means to enforce these provisions, it is not uncommon for condominium
governing documents to allow the association to take possession of a unit by
filing suit against the unit owner to terminate their ownership interest, evict
of the unit owner and sell the unit as the association’s remedy. <span style="mso-spacerun: yes;"> </span></span></div>
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<span style="color: #444444; font-family: "Times New Roman",serif; mso-fareast-font-family: "Times New Roman";">Real estate property
rights are some of the most valued and protected rights in the United States.
It will be an absolute requirement that the association have well documented
evidence of the ongoing and chronic nature of the violation by the unit owner.<span style="mso-spacerun: yes;"> </span>Such evidence should include numerous written
demands mailed to the unit owner; witness testimony by multiple residents and
the management company; pictures of the interior of the unit (if possible); police
and health department reports from calls initiated by the association to
inspect the unit; testimony from companies hired to clean the unit, etc.</span></div>
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<span style="color: #444444; font-family: "Times New Roman",serif; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>This is a very extreme remedy and is available
only for the most extreme circumstances.<span style="mso-spacerun: yes;">
</span>This remedy should be considered only after the association has
exhausted all other remedies and means available to convince the unit owner to
abate the condition voluntarily.<span style="mso-spacerun: yes;"> </span>As the
association weighs its options, it should consult closely with its attorney as
this remedy could prove to be very expensive and time consuming if the unit
owner hires counsel to oppose the association’s use of the remedy (even if the
court ultimately rules in favor of the association). <span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2295543838312472375.post-74039359734970416102016-03-17T15:38:00.000-07:002016-03-17T15:44:34.778-07:00"What Happens Now?"-Federal Fair Housing Act<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><i><span style="font-family: "times new roman" , serif; font-size: 12pt; line-height: 17.12px;">A disabled unit owner in a condominium association has submitted a request to you as a member of the Board of Directors or the association’s professional community association manager, for an assigned parking space located next to his unit, and a curb cut to allow him easier access to the parking spot. The governing documents </span></i></b><b><i><span lang="EN-GB" style="font-family: "times new roman" , serif; font-size: 12pt; line-height: 17.12px;">define parking spaces as “common elements for the non-exclusive use of all unit owners”</span></i></b><b><i><span style="font-family: "times new roman" , serif; font-size: 12pt; line-height: 17.12px;">… What Happens Now? <o:p></o:p></span></i></b></div>
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<span style="color: #444444; font-family: "times new roman" , serif;">The Federal Fair Housing Act and Tennessee’s Fair Housing laws make it illegal to </span><span style="color: #444444; font-family: "times new roman" , serif;">“discriminate against any person in the terms, conditions, or privileges of sale or rental of a dwelling, <b>or in the provision of services or facilities in connection therewith</b> [<i>emphasis added</i>], because of race, color, religion, sex, familial status, or national origin.” And “It shall be unlawful to discriminate against any person in the terms, conditions, or privileges of sale or rental of a dwelling, <b>or in the provision of services or facilities in connection with such dwelling</b> [<i>emphasis added</i>], because of handicap.” </span><span style="color: #444444; font-family: "times new roman" , serif;"><o:p></o:p></span></div>
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<span lang="EN" style="font-family: "times new roman" , serif;">With regard to disabled homeowners (or renters), the Fair Housing Act requires associations to make “reasonable accommodations or modifications.” <o:p></o:p></span></div>
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<b><span lang="EN" style="font-family: "times new roman" , serif;">What’s the difference between an accommodation and a modification?<o:p></o:p></span></b></div>
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<u><span lang="EN" style="font-family: "times new roman" , serif;">An accommodation</span></u><span lang="EN" style="font-family: "times new roman" , serif;"> would be an exception to the association Master Deed, Declaration, By-Laws or Rules & Regulations that would enable the disabled individual to receive equal treatment within the association, such as designating a parking spot near the entrance as a handicapped space; or reassignment of parking spaces; creating an extra wide parking space; or, overruling parking restrictions to allow the parking of a disability van in the driveway or on common areas. Generally, the association is required to pay for accommodations. <o:p></o:p></span></div>
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<u><span lang="EN" style="font-family: "times new roman" , serif;">A modification</span></u><span lang="EN" style="font-family: "times new roman" , serif;"> requires physical changes be made, such as building a handicap ramp to the front entrance; a curb cut to allow for easier access by wheelchairs. Generally, the homeowner is required to pay for any modifications to the property. They are also required to restore the property to the original state unless it would not hinder the future rental or sale of the unit. There is some argument they would not be required to restore things that are on the outside of the home like a ramp. The law is unclear in a homeowner situation as opposed to a rental situation. <o:p></o:p></span></div>
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<b><span lang="EN" style="color: #333333; font-family: "times new roman" , serif;">If the association receives a request for an accommodation or modification, it<o:p></o:p></span></b></div>
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<b><span lang="EN" style="color: #333333; font-family: "times new roman" , serif;">should:<o:p></o:p></span></b></div>
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<span style="color: #444444; font-family: "times new roman" , serif;">1.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span></span><span lang="EN" style="font-family: "times new roman" , serif;">Ask for documentation that the person is disabled;</span><span style="color: #444444; font-family: "times new roman" , serif;"><o:p></o:p></span></div>
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<span style="color: #444444; font-family: "times new roman" , serif;">2.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span></span><span lang="EN" style="font-family: "times new roman" , serif;">Determine if the request is “reasonable”;</span><span style="color: #444444; font-family: "times new roman" , serif;"><o:p></o:p></span></div>
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<span style="color: #444444; font-family: "times new roman" , serif;">3.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span></span><span lang="EN" style="font-family: "times new roman" , serif;">Understand who will pay for any physical changes to the association common area or property; and,</span><span style="color: #444444; font-family: "times new roman" , serif;"><o:p></o:p></span></div>
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<span style="color: #444444; font-family: "times new roman" , serif;">4.<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;"> </span></span><span lang="EN" style="font-family: "times new roman" , serif;">Consult with the association’s attorney. </span><span lang="EN" style="color: #444444; font-family: "times new roman" , serif;"> </span><span style="color: #444444; font-family: "times new roman" , serif;"><o:p></o:p></span></div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2295543838312472375.post-55380252479858690882015-12-11T14:03:00.000-08:002015-12-11T14:03:08.279-08:00"What Happens Now"-FHA Financing for Condos
<b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="font-family: "Times New Roman",serif; font-size: 14pt; line-height: 107%;">A
condominium association wants to obtain Federal Housing Administration approval
for FHA refinancing of current unit owner loans and FHA purchase money loans
for future owners.<span style="mso-spacerun: yes;"> </span>They come to you as
the association Board of Directors or the association’s professional community
association manager, asking how this can be done… What Happens</span></i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="font-family: "Times New Roman",serif; font-size: 12pt; line-height: 107%;">
Now? <span style="mso-spacerun: yes;"> </span><o:p></o:p></span></i></b><br />
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<span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Ensuring that your condo or townhome
association is on the FHA approved list is important to everyone because:<o:p></o:p></span></div>
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<div class="MsoListParagraphCxSpFirst" style="background: white; line-height: 16.8pt; margin: 0in 0in 0pt 1.25in; mso-add-space: auto; mso-list: l0 level1 lfo2; text-indent: -0.25in;">
<!--[if !supportLists]--><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">1.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Potential buyers may not
otherwise qualify to purchase a home in your association. <o:p></o:p></span></div>
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<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: 16.8pt; margin: 0in 0in 0pt 1.25in; mso-add-space: auto; mso-list: l0 level1 lfo2; text-indent: -0.25in;">
<!--[if !supportLists]--><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">2.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Current owners who may
want to sell one day will have a larger pool of buyers for their unit. <o:p></o:p></span></div>
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<div class="MsoListParagraphCxSpLast" style="background: white; line-height: 16.8pt; margin: 0in 0in 0pt 1.25in; mso-add-space: auto; mso-list: l0 level1 lfo2; text-indent: -0.25in;">
<!--[if !supportLists]--><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">3.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">And it’s important to the
association itself, as that larger pool of buyers helps create more competition
which raises unit prices.<o:p></o:p></span></div>
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<div class="MsoNormal" style="background: white; line-height: 16.8pt; margin: 0in 0in 0pt; text-indent: 0.5in;">
<span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">In years past, an FHA-approved association wasn’t
so important because lenders could do “spot loans” for specific units. <span style="mso-spacerun: yes;"> </span>New laws changed the way things used to be
done so that the FHA-approved pool of buyers can now only purchase in
associations which as a whole, are approved for FHA financing. <o:p></o:p></span></div>
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<b><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></b></div>
<b><u><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">How to Qualify for FHA Approval</span></u></b><b><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></b><br />
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<span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">The HOA must have:</span></div>
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<!--[if !supportLists]--><span lang="EN" style="color: #333333; font-family: Symbol; font-size: 10pt; mso-ansi-language: EN; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">At least 50% occupancy by owners</span></div>
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<!--[if !supportLists]--><span lang="EN" style="color: #333333; font-family: Symbol; font-size: 10pt; mso-ansi-language: EN; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">No more than 15% of units being delinquent
by 30 days on assessments</span></div>
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<!--[if !supportLists]--><span lang="EN" style="color: #333333; font-family: Symbol; font-size: 10pt; mso-ansi-language: EN; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">No more than 25% of total floor space used
for commercial purposes</span></div>
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<!--[if !supportLists]--><span lang="EN" style="color: #333333; font-family: Symbol; font-size: 10pt; mso-ansi-language: EN; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">At least 10% of the annual budget going to
reserves</span></div>
<div class="MsoNormal" style="background: white; line-height: 16.8pt; margin: 0in 0in 0pt; mso-list: l1 level1 lfo1; tab-stops: list .5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span lang="EN" style="color: #333333; font-family: Symbol; font-size: 10pt; mso-ansi-language: EN; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">At least two or more units</span></div>
<div class="MsoNormal" style="background: white; line-height: 16.8pt; margin: 0in 0in 0pt; mso-list: l1 level1 lfo1; tab-stops: list .5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span lang="EN" style="color: #333333; font-family: Symbol; font-size: 10pt; mso-ansi-language: EN; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Insurance coverage, including hazard,
liability and flood (if needed)</span></div>
<div class="MsoNormal" style="background: white; line-height: 16.8pt; margin: 0in 0in 0pt; mso-list: l1 level1 lfo1; tab-stops: list .5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span lang="EN" style="color: #333333; font-family: Symbol; font-size: 10pt; mso-ansi-language: EN; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">No more than 10% of the units owned by a
single entity</span></div>
<div class="MsoNormal" style="background: white; line-height: 16.8pt; margin: 0in 0in 0pt; mso-list: l1 level1 lfo1; tab-stops: list .5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span lang="EN" style="color: #333333; font-family: Symbol; font-size: 10pt; mso-ansi-language: EN; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">All units and common spaces completely
built</span></div>
<div class="MsoNormal" style="background: white; line-height: 16.8pt; margin: 0in 0in 0pt; mso-list: l1 level1 lfo1; tab-stops: list .5in; text-indent: -0.25in;">
<!--[if !supportLists]--><span lang="EN" style="color: #333333; font-family: Symbol; font-size: 10pt; mso-ansi-language: EN; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Association must also be in compliance with
state law and other applicable regulations.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; line-height: 16.8pt; margin: 0in 0in 0pt;">
<span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: 16.8pt; margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><u><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">How to Obtain or Renew
FHA Approval<o:p></o:p></span></u></b></div>
<br />
<div class="MsoListParagraphCxSpFirst" style="background: white; line-height: 16.8pt; margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l1 level2 lfo1; text-indent: -0.25in;">
<!--[if !supportLists]--><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">1.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><!--[endif]--><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Find out if your
association is currently approved by visiting the HUD website at </span><a href="https://entp.hud.gov/idapp/html/condlook.cfm"><span lang="EN" style="font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";"><span style="color: #0563c1;">https://entp.hud.gov/idapp/html/condlook.cfm</span></span></a><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">.<span style="mso-spacerun: yes;"> </span>Condo and town-home associations must reapply
for FHA approval status every two years. <b style="mso-bidi-font-weight: normal;"><u><o:p></o:p></u></b></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: 16.8pt; margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l1 level2 lfo1; text-indent: -0.25in;">
<!--[if !supportLists]--><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">2.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><!--[endif]--><u><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">If your association is
approved</span></u><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">:
the HOA must simply reapply when its two-year period is coming to a close.<span style="mso-spacerun: yes;"> </span></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: 16.8pt; margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l1 level2 lfo1; text-indent: -0.25in;">
<!--[if !supportLists]--><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">3.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><!--[endif]--><u><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">If your association is <b style="mso-bidi-font-weight: normal;">not</b> approved</span></u><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">: there are two ways to
gain approval: <b style="mso-bidi-font-weight: normal;"><u><o:p></o:p></u></b></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: 16.8pt; margin: 0in 0in 0pt 1.75in; mso-add-space: auto; mso-list: l1 level3 lfo1; text-indent: -0.5in;">
<!--[if !supportLists]--><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">i.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">If a potential FHA buyer is working with a
large lender, that <o:p></o:p></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: 16.8pt; margin: 0in 0in 0pt 1.75in; mso-add-space: auto;">
<span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">lender is likely eligible to certify your
association through the Direct Endorsement Lender Review and Approval Process (“DELRAP”).
Certification can take two to four weeks; or,<o:p></o:p></span></div>
<br />
<div class="MsoListParagraphCxSpLast" style="background: white; line-height: 16.8pt; margin: 0in 0in 0pt 1.75in; mso-add-space: auto; mso-list: l1 level3 lfo1; text-indent: -0.5in;">
<!--[if !supportLists]--><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";"><span style="mso-list: Ignore;">ii.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">The association can apply directly through
the HUD Review and Approval Process (HRAP), which can take four to six weeks.<b style="mso-bidi-font-weight: normal;"><u><o:p></o:p></u></b></span></div>
<br />
<div class="MsoNormal" style="background: white; line-height: 16.8pt; margin: 0in 0in 7.5pt; mso-margin-top-alt: auto; text-indent: 0.5in;">
<span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";">Both routes have their
pros and cons. <span style="mso-spacerun: yes;"> </span>The HOA Board will need
to discuss what works best for the association. <span style="mso-spacerun: yes;"> </span>As with any major policy, the Board should
communicate its decision to the homeowners.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 8pt;">
<span style="font-family: Calibri;"><span style="mso-tab-count: 1;"> </span><o:p></o:p></span></div>
<br />
<br />
<div class="MsoNormal" style="background: white; line-height: 16.8pt; margin: 0in 0in 0pt;">
<span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
<br />
<div class="MsoNormal" style="background: white; line-height: 16.8pt; margin: 0in 0in 0pt;">
<span lang="EN" style="color: #333333; font-family: "Times New Roman",serif; font-size: 12pt; mso-ansi-language: EN; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2295543838312472375.post-12338980198749988972015-10-19T14:47:00.000-07:002015-10-19T14:47:26.955-07:00"What Happens Now"-Condo Smoking Restrictions
<b style="mso-bidi-font-weight: normal;">A condominium board
is receiving complaints from unit owners about second-hand cigarette smoke
emanating from within a unit owner’s unit into adjacent units.<span style="mso-spacerun: yes;"> </span>The board wants to put a stop to the
second-hand smoke but is afraid that it will violate an owner’s rights. What can be done?</b><br />
<b style="mso-bidi-font-weight: normal;"><span style="mso-tab-count: 1;"> </span></b><br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-layout-grid-align: none;">
<span style="mso-tab-count: 1;"> </span><span style="font-size: 11pt;">Most
association governing documents (usually in the By-Laws) give express power to
the Board to adopt rules and regulations which govern the administration,
management, operation and use of the common elements.<span style="mso-spacerun: yes;"> </span>This power allows the Board to adopt
restrictions which regulate behavior, use of amenities and common areas within
the association, and impose fines to enforce violations. <span style="mso-spacerun: yes;"> </span>The association Master Deed and By-Laws also
normally have provisions within them on how to amend these documents.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-layout-grid-align: none; text-indent: 0.5in;">
<span style="font-size: 11pt;">Tennessee’s Non-Smoker
Protection Act (the “Act”) prohibits smoking in public buildings, museums,
banks, child care facilities, elevators and pretty much any place else which is
“customarily used by the general public.” Violations of the Act are punishable
by fines.<span style="mso-spacerun: yes;"> </span>The Act however, expressly
excludes private homes and private residences. <span style="mso-spacerun: yes;"> </span>So how can an association protect its members?<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-layout-grid-align: none;">
<span style="font-size: 11pt;"><span style="mso-tab-count: 1;"> </span>Membership
in associations is created by the acceptance of a deed for a unit within the
association.<span style="mso-spacerun: yes;"> </span>The association members or
the association, through its elected board, may vote to make the condominium
common areas and/or individual units, smoke free by either amending the
association master deed or adopting rules and regulations which prohibit
smoking, and defines second-hand smoke as a nuisance, the violation of which is
enforceable in the same manner as other restrictions in the governing
documents.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-layout-grid-align: none;">
<span style="font-size: 11pt;"><span style="mso-tab-count: 1;"> </span>So
that existing owners and occupants who wish to smoke are not unduly burdened,
smoking restrictions may identify designated smoking areas within the
association.<span style="mso-spacerun: yes;"> </span>In the alternative, the
association may adopt a complete ban on smoking anywhere (including within
individual units) within the association property. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-layout-grid-align: none;">
<span style="font-size: 11pt;"><span style="mso-tab-count: 1;"> </span>All
rules and regulations should have a violation notice requirement, reasonable fine
policy and enforcement provision.<span style="mso-spacerun: yes;"> </span>Once the
members vote to amend the master deed or the Board adopts Rules and Regulations,
the document created by the association attorney should be recorded at the <st1:place w:st="on"><st1:placetype w:st="on">County</st1:placetype> <st1:placename w:st="on">Register</st1:placename></st1:place>
of Deeds’ office, and a copy should be mailed to all owners.<span style="mso-spacerun: yes;"> </span>If the association has a website, a copy of
the recorded document should be posted there as well. <o:p></o:p></span></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2295543838312472375.post-16367682163581724502015-10-16T15:11:00.000-07:002015-10-16T15:11:32.886-07:00"What Happens Now"-Association Lien Enforcement (Post Bankruptcy)
There are generally two recognized types of legal jurisdiction in Tennessee.<span style="mso-spacerun: yes;"> </span>Personal jurisdiction (<i style="mso-bidi-font-style: normal;">in personam</i>) and jurisdiction against property (<i style="mso-bidi-font-style: normal;">in rem</i>).<span style="mso-spacerun: yes;">
</span><span style="mso-spacerun: yes;"> </span><o:p></o:p><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-layout-grid-align: none;">
<span style="mso-spacerun: yes;"> </span>Bankruptcy is jurisdiction over the
person (<i style="mso-bidi-font-style: normal;">in personam</i>).<span style="mso-spacerun: yes;"> </span>The idea is that debts owed by the debtor get
discharged and the debtor (homeowner) may start over fresh.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-layout-grid-align: none;">
<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>When an association records a lien, the lien secures
the homeowner’s unit or house as collateral for the amount of unpaid association assessments and
related fees (<i style="mso-bidi-font-style: normal;">in rem</i>).<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-layout-grid-align: none;">
<span style="mso-spacerun: yes;"> </span>What that means to your association is that a homeowner who receives a discharge in bankruptcy, is relieved from the personal obligation to pay any of the unpaid assessments which accrued prior to the date that he filed his bankruptcy petition. The lien filed by the association however, is <u>not discharged</u> in the bankruptcy.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-spacerun: yes;"> </span>Although the
association cannot pursue a homeowner (personally) for debts discharged in bankruptcy,
if the lien was recorded prior to the bankruptcy, and the homeowner requests a
full release of the lien after his bankruptcy discharge, the association may require
the homeowner to pay ALL unpaid association assessments and related fees (including those which
accrued prior to the homeowner’s bankruptcy petition), before a full release of
lien will be recorded.<o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-spacerun: yes;"> </span></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2295543838312472375.post-76523029507168453572015-10-16T14:55:00.000-07:002015-10-16T14:55:07.108-07:00"What Happens Now"-Association Fees in Bankruptcy (In a Nutshell)
The
two main chapters under the US Bankruptcy Code which homeowners most frequently
file under, are Chapter 7 and Chapter 13.<span style="mso-spacerun: yes;">
</span><o:p></o:p><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-layout-grid-align: none;">
<span style="mso-spacerun: yes;"> </span>What are the differences and what do they
mean to your community association?<o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-layout-grid-align: none;">
<strong><u>Chapter
7 (complete discharge)</u>:</strong><span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt; mso-layout-grid-align: none;">
<span style="mso-spacerun: yes;"> </span>If the homeowner fulfills all of the requirements
of Chapter 7, he gets a complete discharge from all “pre-petition” association assessments and related fees.<o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>All association assessments (including late fees, interest,
etc) which accrue <u>after</u> the date of the homeowner’s Chapter 7 petition,
are <u>non-dischargeable</u> in bankruptcy. <o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-spacerun: yes;"> </span>Most Chapter 7
bankruptcies are completed within 4-5 months.<span style="mso-spacerun: yes;">
</span>When the homeowner gets a Chapter 7 discharge, the association may then contact
its attorney to begin the collection process. <o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-spacerun: yes;"> </span>If the homeowner <u>does
not</u> fulfill all of the requirements for a Chapter 7 discharge (which is
not uncommon), the Bankruptcy Trustee will file a motion with the
Bankruptcy Court to dismiss the homeowner’s case.<span style="mso-spacerun: yes;"> </span>If the order is granted, the association attorney may
then begin the collection process for all (pre <u>and</u> post-petition) unpaid association assessments, late fees, interest, etc. <o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p></div>
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<strong><u>Chapter 13 (re-payment plan)</u>:<o:p></o:p></strong></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-spacerun: yes;"> </span>If the homeowner
files for Chapter 13 protection, you should immediately notify the association
attorney. <span style="mso-spacerun: yes;"> </span><b style="mso-bidi-font-weight: normal;">GOOD NEWS!</b> <span style="mso-spacerun: yes;"> </span>In most cases,
because of the lien created by the association’s Declaration of Covenants, Conditions
and Restrictions, and/or Master Deed (for condo’s), the association is treated as a
“secured creditor”.<span style="mso-spacerun: yes;"> </span>As such, the association
will most likely receive monthly payments as a part of the homeowner/debtor’s
re-payment plan once the plan is confirmed.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-spacerun: yes;"> </span>To ensure that the association
participates as a secured creditor in the re-payment plan, the association’s attorney
must file a Proof of Claim with the Bankruptcy Court. In most cases, after the
Proof of Claim is filed and the homeowner/debtor’s re-payment plan is confirmed
by the Bankruptcy Court, the association will begin to receive payments for the delinquent and ongoing
association assessments. <o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-spacerun: yes;"> </span>Any time
bankruptcy is involved there is never a guarantee that the association will receive
100% of the delinquent and unpaid assessments from the homeowner.<span style="mso-spacerun: yes;"> </span>It is essential for the association to have an
attorney who is knowledgeable in bankruptcy law to ensure that the association has the best
chance of recovery after the homeowner files bankruptcy.<o:p></o:p></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="mso-spacerun: yes;"> </span>If the association was
fortunate enough to have filed a Notice of Lien before the homeowner filed
bankruptcy, all is not lost.<span style="mso-spacerun: yes;"> </span>See the
next edition of “What Happens Now?” for how the association may be able to recover 100%
of the unpaid assessments and related fees.<o:p></o:p></div>
Unknownnoreply@blogger.com0