Tag Archives: condominium

Virginia – Legum and Norman President John Rhodes Appointed to Governor McAuliffe’s Administration

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Associa L&N President John Rhodes Appointed to Governor McAuliffe’s Administration

RICHMOND, Va., March 21, 2016 (GLOBE NEWSWIRE) — Legum & Norman, an Associa company, is proud to announce President Johns Rhodes’ appointment to Virginia Governor Terry McAuliffe’s administration staff. The administration is focused on finding common ground with members of both parties on issues that will build a new Virginia economy and create more jobs across the Commonwealth.

 

Virginia – Gibson & Associates earns management company accreditation

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Gibson & Associates earns management company accreditation

Gibson & Associates LLC is now the first and only management company in Southwest Virginia that has earned the Accredited Association Management Company credential. There are fewer than 240 management companies worldwide that have earned this highest level of professional recognition in the community association management field.

National – Vigilance is Key in Addressing Abandoned Lots and “Zombie” Mortgages

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Although statistical data shows the battle against zombie mortgages (A property becomes a zombie when a creditor initiates foreclosure and the homeowner vacates then home.  When the creditor fails to complete the foreclosure, title to the real property remains with the original homeowner, leaving the ownership “half dead” and “half living”) is being won nationwide, abandoned lots, vacant units and zombie properties continue to have negative impacts on communities throughout the United States (unkempt proprties, maintenance issues, rodents, unpaid assessments and lack of community spirit).

Through vigilance, community associations can effectively address conditions caused by these zombie properties.

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Virginia – Approved Minutes of December 2015 Common Interest Community Board Now Available

December 2015 Common Interest Community Board Minutes

Minutes from the December 2015 Common Interest Community Board meeting were approved yesterday and are now available.

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Virginia – Senate Bill 389 signed by Governor McAulliffe

SB 389 Local permitting or licensure; consent of common interest community association prohibited

Virginia Senate Bill 389 was approved by Governor McAuliffe on Monday, becoming effective July 1, 2016.

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Virginia – CICB Issues Notice of Intended Regulatory Action for Manager Training Programs

CICB – DPOR – Amendment to Training Program Provisions

The Virginia Common Interest Community Board issued a Notice of Intended Regulatory Action (NOIRA) on December 28, 2015.   The CICB intends to amend 18 VAC 48-50-253 and 255 to require only certain training for individuals renewing certifications and clarify training course content in reference to Virginia laws and regulations directly related to common interest communities.

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Missouri – Busch Properties, Inc. v. National Union Fire Ins. (8th Cir., February 24, 2016)

Busch Properties, Inc. v. National Union Fire Ins., No. 14-3699 (8th Cir. 2016)

Busch Properties, Inc. filed suit against its insurer, NationalUnion Fire Insurance Company, after National Union denied coverage for Busch’s expenditures to remediate mold in the Kingsmill Resort condominium that Busch managed in Wiliamsburg, Virginia.

Through contractual arrangements (with all unit owners and the unit owners association), Busch paid for all required upkeep and maintenance of the condominium units.  After mold growth was found behind vinyl wallpaper, Busch began to remediate the mold growth.

Before Busch began mold remediation efforts, Busch obtained the written consent of individual unit owners, without admitting liability for the mold growth or a release of claims, to enter the Units and perform work which would likely have been the responsibility of individual unit owners under the condominium instruments.

National Union denied coverage because it concluded that Busch was not legally obligated to make the repairs.  The 8th Circuit Court of Appeals had to determine, under Missouri law, whether National Union could lawfully deny coverage under the policies that provide coverage if Busch “become[s] legally obligated to pay as damages for liability imposed upon the Insured by law,” “becomes legally obligated to pay by reason of liability imposed by law,” or incurs “liability assumed by the Insured under contract.”

The district court concluded that there was no coverage for the mold remediation payments and Busch appealed, arguing that National Union should pay the cost of mold removal.

The 8th Circuit Court of Appeals affirmed the district court’s conclusion that Busch’s payments for mold remediation are not covered under its policy with National Union because its legal obligation to remediate the mold did not spring from “liability imposed by law,” but instead resulted from a voluntary, contractual obligation.

Even though decided under Missouri law, the Busch decision reminds us of the importance to carefully consider maintenance, repair and replacement responsibilities as set out in the recorded condominium instruments.  And, associations must weigh the benefits (economies of scale and uniformity) and potential burdens (loss of insurance coverage or potential challenge for ultra vires acts) before undertaking additional responsibilities that are normally borne by individual unit owners.

Because every set of recorded condominium instruments and every insurance policy are different, the application of law to each community association differs.  As always, contact an experienced attorney for advice and counsel.

Virginia – Limited Residential Lodging Act (HB812 and SB416) May Create Unintended Consequences for Associations

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As two bills move through the Virginia General Assembly that would allow property owners to rent out their homes, or portions of their homes, for periods of less than 30 consecutive days, community association volunteer leaders must consider the impact short-term residential lodging will have on their community.

Governing documents of many (most) condominium, cooperative, and property owners association prohibit short-term rentals, use of the home for hotel or transient purposes and leasing only a portion of the home.

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District of Columbia – DCRA Business License Amnesty Program Ends February 29

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The Department of Consumer and Regulatory Affairs (DCRA) Business License Amnesty Program, which allows businesses (including District community associations) to become compliant with DC regulations requiring business licenses and corporate registrations without penalties, late fees, or delinquent filing fees, expires Monday, February 29.

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