A running collection of news that matters to HOA, condo, and co-op owners in the U.S. This page includes relevant articles highlighting current housing and real estate industry trends, financial impacts on homeowners, HOA risks and the occasional report of neighbor pettiness and nonsense.
By Deborah Goonan, Independent American Communities deborahgoonan@gmail.com
September 2024
Judge sides with homeowner that HOA banned from pool for six years
A grass roots activist in Gaithersburg, MD, Steven Sellers Lapham, tells the story of a homeowner who was denied access to the HOA pool for six years. The lawsuit, Quail Valley HOA vs. Eric O. Segura, has concluded with a Judge’s order to permit the family’s access to the pool.
The dispute began during the height of the COVID pandemic. At that time, Mr. Segura lost his job and missed a few HOA payments, totaling $5,148, but ballooning to $19,000 with legal fees tacked on. Segura has since attempted to repay his past due fees, but HOA has not been forthcoming with a clear statement of his account.
Incredibly, the HOA shut down access to his online HOA account, making it impossible to ever really know what, if anything, was still owed to the HOA. In the meantime, the HOA revoked Segura’s access to the HOA pool. The court had already dismissed several alleged HOA property covenant violations a week earlier.
In mediation, the parties agreed to a reasonable payment plan for Segura to get current on his HOA fees. In the meantime, the Judge ordered the HOA to immediately allow Segura to use the HOA pool.
Several of the Segura’s neighbors attended court hearings on Aug. 7 and 14 to offer moral support. Several of them have been targets of similar abuse by Quail Valley HOA in the past.
Read more here:
Judge Orders HOA to Permit Hispanic American Family Pool Access TODAY | Gaithersburg, MD Patch (Aug. 17, 2024)
Millennium Tower owners threatened with $10K fine for opening their windows, while some deal with sewage backups
The infamous Millenium Tower in San Francisco has been troubled since the day it was completed. That’s when the tower started sinking and tilting, due to an inadequate foundation. After years of legal battles, engineers worked with the developer and co-owners on a solution to add additional foundational support. The building is now stabilized, and isn’t continuing to move, but since it already tilts 29 inches at the top, there are complications.
For one thing, sewage backups have been a problem for third floor units. Experts have long warned that improperly sloped waste pipes would result from the tower tilting to one side. Predictably, the HOA blames the backups on the 3rd floor unit owners, accusing them of disposing of non-flushable items in their units. The unit owners have to repeatedly clean out their sewage waste pipes to proactively prevent future backups.
Another ongoing problem is that windows as originally installed had defectively weak support arms. That resulted in open windows being blown off the tower in high winds, causing damage to a neighboring tower. Three years after this unfortunate discovery, the HOA is still trying to upgrade to stronger support arms on every window in the building. In the meantime, the condo board is considering enforcing a new rule that would require unit owners to keep their (still not repaired) windows closed. The HOA wants to make each unit owner financially responsible for any damages caused by a window failure due to their negligence. As a deterrent, the HOA proposes a $10,000 fine for leaving windows open in high winds.
San Francisco’s Millennium Tower owners could face $10k fine for open windows – NBC Bay Area
Las Vegas residents could be forced to evacuate their homes because HOA has failed to maintain its private water distribution system
As condo and HOA communities in the U.S. continue to age, infrastructure suffers wear and tear. If the HOA doesn’t maintain its property over the years, systems begin to fail. This story is one of many examples of what goes wrong when HOAs are mismanaged and poorly maintained.
In Somerset Park, underground pipes that provide water supply to residents’ homes have developed leaks, causing sinkholes to form and creating damages to city property. The condo association claims it does not have the money to make repairs. However, Henderson City has issued a warning to residents. Either fix the water pipes for the community’s private water distribution system by September 10, or the city will shut off their water supply. The community will then be ordered to evacuate.
Homeowners are frustrated, because they’ve been paying condo fees for years, but the HOA still claims it does not have the money to fix the water problem.
These residents could be forced out of homes if HOA doesn’t fix water system (msn.com)
HOA decides to enforce rules it hasn’t enforced for ten years
This brief report caught my eye because it’s a very common complaint I hear from homeowners. Residents get used the HOA being very chill about enforcing rules and restrictions. Then, all of a sudden, someone new gets on the HOA board, or the board contracts with a new management company, and boom! The Enforcers come out of the woodwork and start issuing nasty letters and fines for petty rule violations.
Sometimes, if the restriction is in the HOA governing documents, the HOA has the legal authority to do enforce it. But some states have a law that says an HOA can no longer enforce a restriction that hasn’t been enforced in 5 years or 10 years, for example. Each state’s laws are different, and there might be no such limitation where you live.
This article suggests getting involved. To change the rules, try serving on the HOA board. But that’s easier said than done in many cases. It can be difficult or impossible to displace strict or controlling HOA board members.
This is why living under HOA can seem fine for years — until it’s not.
Homeowners’ Energy Policy Act prevents HOAs from blocking installation of energy efficient home improvements
HOAs can no longer charge fees or totally prevent homeowners from adding solar panels, EV chargers, or energy efficient heating and air conditioning systems. Legislators approved, and Governor Whitmer signed a new law — Homeowners’ Energy Policy Act — after hearing from constituents that were prevented from saving energy by restrictive HOAs.
However, the Act appears not to apply to condominium associations and co-ops, where homes often share roofs and walls with other units. Also, the law provides certain requirements and limited exceptions in the HOA approval process. See reference links for details.
HOAs in Michigan lose veto power over rooftop solar, home EV charging and more – mlive.com
Florida condo HOA fees keep increasing by leaps and bounds
Things are getting difficult for condo owners in Florida, where state laws now force condo associations to catch up on their reserve funds and take care of deferred maintenance. Between special assessments and higher condo HOA insurance premiums, many owners are finding they can no longer afford to own their condos.
Condo HOA fees jumped 60% in South Florida in past 5 years. Why higher costs are ahead (yahoo.com)
August 2024
Condo crisis brewing in Florida
Following the condo collapse in Surfside, FL in 2021, state lawmakers passed laws that require condo associations to establish reserve funds to keep up with structural repairs that will keep buildings structurally sound. The state also now requires a safety inspection and recertification for older buildings.
This year, those new legal requirements apply. So now condo owners are seeing the results — special assessments to cover the cost of decades of deferred maintenance. Many owners have also seen their monthly fees double or triple in the past three years.
Some owners are reportedly seeing special assessments of $100,000, $200,000 or more per unit. But it’s all relative to the size and location of the condo building. Owners of modest condos find it impossible to come up with relatively “small” special assessments of $8,000.
There are many owners who cannot afford rising monthly fees plus special assessments, and others that simply don’t want to spend that kind of money, especially if they are living on retirement income.
Owners who do not pay these fees face lien and foreclosure of their condos. Undoubtedly, many will lose their homes, unless there’s a government bailout, which is unlikely. Many owners will try to sell their condo to avoid foreclosure.
Now real estate agents are seeing a surge of condos coming on the market. But who’s going to buy all these old condo units with massive special assessments looming?
Experts expect surge of South Florida condo listings – NBC 6 South Florida (nbcmiami.com)
Crushing special assessment – WSVN 7News | Miami News, Weather, Sports | Fort Lauderdale
HOA in WA says license plate cameras installed to deter crime
This is a controversial trend among HOAs across the nation. A growing number of communities are seeing a spike in crimes like burglary, car theft, vandalism, and home invasions. It’s shattering the long-held belief that HOA-governed neighborhoods are safe havens.
Some HOAs are installing license plate cameras equipped with AI capabilities to track each vehicle that enters and exits the community. The system can run license plate numbers to track stolen vehicles, track drivers with arrest warrants, and help law enforcement with investigation of crimes that occur in the community.
Not surprisingly, some homeowners and residents think that license plate cameras are a bit too much like Big Brother – an invasion of their privacy. The company that markets these cameras says that any HOA member can register their vehicle to avoid being tracked.
But isn’t that flawed logic? Who’s to say that the criminal isn’t an owner or resident of the HOA community?
Federal Way HOA deploys license plate reading cameras to deter criminals (komonews.com)
Atlanta townhouse owners sue their HOA to hold them accountable
For months, owners of an aging townhouse community in southwest Atlanta have been complaining about code violations and lack of maintenance of their buildings and grounds. Leaky roofs in need of replacement, a gaping hole in the brick wall, broken rain gutters, and generally unkempt appearance plague this community.
The board President reportedly owns 12 of the 47 units. Owners say they haven’t seen a budget report or proof that the board member is actually paying fees for her 12 units. Local news (11Alive) has been covering the story, drawing attention to the problem. But, despite all the negative publicity, the HOA has made little progress on repairs. It seems there’s no money available to do the work. Owners want to know what happened to all the money they’ve paid in fees for years.
It’s unclear whether the HOA has failed to adequately collect its fees, or whether there’s foul play involved. Either way, owners want answers.
Some advocates for the HOA owners will be working with a state government task force this fall to address the need for oversight, education, and regulation of HOAs.
And this particular community is but one example of why HOAs don’t work in the long term.
How one Atlanta community is trying to hold their HOA accountable | 11alive.com
Lawmakers agree to study Georgia HOA woes | 11alive.com
Alderman, condo management company owner gets probation and must repay $292,000 for embezzlement spanning a decade
The former Des Peres, MO Alderman, John Pound, was sentenced in a condo embezzlement case in July 2024. He will serve probation, and has been ordered to repay his former clients a combined total of $292,000.
In March 2024, Pound pled guilty to stealing from two of his management company’s client condominium associations between 2010 and 2020. According to investigators, Pound embezzled $200,000 from one commercial condo association. The former condo manager admitted to taking a larger salary than the condo board authorized.
Pounds had gained the trust of his clients, because he served as an Alderman on his town’s board for 20 years. The conviction that resulted from his plea deal made him ineligible to serve as an Alderman going forward. Pounds is 81 years old.
Former Des Peres Alderman ordered to repay $292K in embezzlement case (msn.com)
Des Peres Alderman Pleads Guilty To Federal Charges | Webster Kirkwood Times | timesnewspapers.com
Search warrant on former AL HOA Pres leads to arrest for theft
Latoya Cook, Smith’s Station, AL was arrested for stealing $11,000 from Shadow Wood Homeowners Association. Cook is a former HOA President. She has been released on bail.
Smiths Station woman arrested for allegedly using HOA money for personal use (wtvm.com)
FL condo HOA won’t waive late fees and interest for owner’s 20-cent payment error
No, this isn’t a hoax. It’s for real. And completely unreasonable. Stories like this leave observers wondering why in the world an HOA would take the hard line for 20 cents.
Who’s profiting from $90 dollars in late fees? Is someone pushing for a lien and foreclosure on this woman’s condo? If so, why?
HOA doubling down on collecting 20 cents from homeowner – WFTV
Northern KY condo owners sue Sanitation District for construction project that caused landslide damage
Sanitation District 1 is being sued by owners of Building 30 in Woodland Hills Condominiums in Southgate, Kentucky.
SD1 was in the midst of a sewer expansion project when the hillside began to shift toward Building 30. Several units sustained visible damage due to earth movement, but, worse than that, the residents were forced to evacuate due to the possibility of a building collapse.
Owners are suing for loss of property value and relocation costs.
This story begs the question, why did Southgate permit housing construction on soil that is prone to landslides?
Condo owners sue sanitation district after being advised to evacuate (wlwt.com)
Three dozen NKY condominium owners being advised to evacuate homes due to landslide (wlwt.com)
Minnesota home, condo owners facing steep insurance premium increases
Minnesotans have been pummeled by more than their share of hailstorms the past few years, leading to billions of dollars in property damages. Many insurers have pulled out of MN, leaving few homeowners and HOA insurance options for consumers.
Insurance premiums and deductibles have increased exponentially. And underwriters have added exclusions for wind and hail damage. That makes roof replacement more costly for homeowners across the state.
Condo associations have been hit particularly hard, with Master Association insurance policy premiums increasing by 400% on average. As a result, it’s becoming more common for condo owners to be paying monthly fees in excess of $1,000.
Condo roof replacements tend to be more complicated and labor intensive than re-roofing single family homes. These multifamily properties tend to be large buildings that are three or more stories high, with longer continuous roof planes and multiple roof vents, compared to a single-family home.
Hail storms in Minnesota lead to huge insurance price increases | kare11.com
Eight high-end Houston condos evacuated after ground collapses due to cistern failure
405 Sutherland Terrace Place was evacuated on July 27, 2024, after flood waters overwhelmed the cistern located between two rows of condo buildings. No one was injured, but residents of 8 condos were evacuated as a precaution.
Even expensive condo developments can experience failure of major infrastructure. (Recent unit listings are around $1.4 million) And because this damage has occurred on the condominium’s property, condo owners will be responsible to pay for repairs.
Sudden ‘ground collapse’ in Houston prompts evacuation of condo residents (dallasnews.com)
SoCal shuts off gas to 135 homes in Rancho Palos Verdes, citing earth movement
SoCalGas turned off natural gas supply to Rancho Palos Verdes in late July 2024. The area has experienced significant earth movement in the past several weeks, causing serious structural damage to some homes in the 50-year-old neighborhood.
Due to the threat of land movement causing broken gas lines – and possible catastrophic explosions – the utility company stopped supplying gas to the area. SoCal is providing $2,500 vouchers to help owners switch to electric water heaters and stoves. No word on when (or if) gas service might be restored.
What it’s like to live in Rancho Palos Verdes without gas – NBC Los Angeles
SoCalGas ending service for some Rancho Palos Verdes residents – NBC Los Angeles
Bronx NY co-op shareholders object to steep fee increases
Park Reservoir Co-op in the Bronx is a limited equity housing community that has been in existence for nearly 7 decades. (It opened in 1957.) It serves as home to low- and moderate-income residents. Now the 237-unit co-op is struggling financially, and shareholders are accusing the co-op board of poor fiscal management.
The co-op board says its hands are tied, and that co-op fees must be increased substantially to cover the rising cost of utilities, labor, repairs and maintenance, and insurance.
This exact scenario is playing out in condo and co-op communities across the nation.
Park Reservoir co-op shareholders seek new board of directors – Bronx Times (bxtimes.com)
Sheriff settles dispute between some CO HOA members over lemonade stand
In late July, some children of the Wildernest subdivision decided to set up a lemonade stand. Unfortunately, a few of their neighbors (apparently citing HOA rules) called the local sheriff, in an attempt to stop the kids from selling lemonade. The owners claimed the stand was blocking the road.
The sheriff said the stand was not blocking the road, but did ask the kids to move back a bit, for their own safety. But as soon as the kids moved, the same owners then complained to the sheriff that they lemonade stand was on private property.
The sheriff then determined that the kids were on HOA property, not private property. And, since all owners of the HOA pay fees to use HOA property, the lemonade stand was not breaking any laws.
Interesting clarification on this story – the HOA wasn’t against the lemonade stand. It was just a few cantankerous neighbors that caused all the unnecessary fuss.
Isn’t it encouraging to see public backlash against the pettiness of certain HOA members?
HOA members try to shut down children’s lemonade stand by calling sheriff’s office (wrdw.com)
For previous HOA news highlights, see the Independent American Communities News Archives
