Northwest Condo & HOA Law Blog : Washington & Oregon Construction Defect Lawyer & Attorney : Barker Martin Law Firm : Homeowner Associations, Condos : Seattle, Portland

An article in Sunday's Arizona Republic highlights an issue we also have seen in the Pacific Northwest, especially in the Oregon real estate marketplace.  As reporter Craig Anderson writes:   

Developer abandonment is likely to become a serious issue in the coming year for as many as 200 of the more than 10,000 Arizona communities under HOA control, both opponents and supporters of Arizona's HOA policies say. Partially completed subdivisions and newer communities more prone to home foreclosures are the ones most likely to suffer, experts say. . .  Homeowners in neighborhoods with underfunded HOAs have seen their association fees increase at the same time amenities and services are being reduced or eliminated.

Anderson also reported that homeowners in other communities have been unable to wrestle control of their association from developers, who usually are among the HOA's principal debtors.  The complete article can be found here.

As I wrote in an October 26th post:

I have heard of several instances recently where a community (condominium or single-family home) has not been completed or sold out, is under Declarant control, and the Declarant files bankruptcy, leaving the association without sufficient funds to meet its normal operating budget. 

If you are a member of an association that has not yet turned over and you believe your Declarant is experiencing serious financial distress, do not wait for it to file bankruptcy.  Specific steps may include:

·        Call for a Special Meeting for the purpose of discussing the association's finances.  Insist on straight answers to the hard questions of the solvency of the Declarant and financial resources of the association.

·        Both Oregon and Washington statutes require condominium and homeowner associations to conduct annual audits (with some exceptions). If homeowners have questions on finances during Declarant control, insist on the annual audit.  If professionally managed, work with your association management company in this endeavor.

·        Be prepared to seek legal intervention, if needed, to preserve the assets of the association before the Declarant drains all available funds.   

 If you or your association would like more information on these issues, feel free to contact Barker Martin, P.S. by selecting the "Contact" tab at the top of this blog page.

• Email This
• Print
• Comments
• Trackbacks
• Share Link

In an article in this week's Stranger blog, blogger Dominic Holden reported on a recent auction of new condominium units in downtown Seattle:

This is the new normal,” says Rhett Winchell, president of Beverly Hills-based Kennedy Wilson Auction Group, which was auctioning 15 units of the Capitol Hill Press Condos today. The company held 30 auctions nationwide this year and Winchell expects more in Seattle next year. “Auctions obviously do grow in popularity when the economy slows because builders need a way to sell property quickly,” says the pinstripe-suited Winchell.

Holden reported that another condo auction last month suggests this may be a trend in the Seattle condo market.

For anyone who is considering purchasing a condominium at an auction, I highly recommend that they obtain and thoroughly review a Public Offering Statement (in Washington) or a Condominium Disclosure Statement (in Oregon) ahead of time.  Further due diligence would include review of the entire CC&Rs and detailed scrutiny of the Association's finances.  Inquiry with the management company and even speaking with a board member or homeowner would also go a long way in ferreting out potential problems.  Red flags and the hair on the back of the neck of any potential buyer should arise when contemplating purchasing a condominium unit at auction.

If you have purchased, or are thinking of purchasing, a condominium unit in Oregon or Washington and would like further information on required disclosures from the Declarant, feel free to contact Barker Martin, P.S. by selecting the "Contact" tab at the top of this blog page.
 

• Email This
• Print
• Comments
• Trackbacks
• Share Link

Colorado attorney and blogger Stan Jezierski wrote a recent post entitled Holiday Decorations and the Fair Housing Act.  Although many persons are tired of hearing of controversies over something as seemingly innocuous as holiday decorations, as evidenced by the recent headlines the State of Washington created for its holiday display in the capitol building in Olympia, I thought this was a topical issue to address for our readers, as well.  Here is the edited article:

With the holiday season upon us, many homeowners associations are putting up lights and other decorations on the common areas. While there is nothing wrong with fully celebrating the holiday season, associations should take care to ensure that decorations and holiday displays do not give the impression that the community favors one particular religion over another. Such action could subject the association to discrimination claims under the Fair Housing Act (FHA) and other federal and state fair housing laws.

Religious decorations and displays on the common areas may suggest to residents and guests that the community favors people who are of a particular religious affiliation. For example, extensive holiday decorations consisting of nativity scenes and crucifixes may suggest that Christians are favored in the community, or even that residents and visitors who are not Christian are unwelcome.

The safest course of action is to put up only general holiday decorations on the common areas, such as lights and wreaths. Santa Claus images, candy-striped poles, and decorated trees are most likely acceptable, as are general statements such as happy holidays. If there is mention of Christmas or use of Christian symbols in a display, there should also be equal reference to Hanukkah or other requested religious holidays. An association should take care to give equal treatment to all other religious affiliations.

An equally important point to remember is that FHA restrictions do not apply to religious displays by private homeowners. While common area religious displays should either be avoided or carefully monitored, residents of the community should be allowed, within the association’s rules and regulations, to display personal religious items in their homes and on their property.  However, religious symbols that exceed seasonal display may run afoul of an association's CC&Rs (check out the following Virginia news report).

The overall goal of the FHA is to allow members of community to feel comfortable about their religious affiliation. Common area decorations shouldn’t create a feeling of being left out. Open participation by all members of community is the best way to eliminate complaints and ensure a safe, happy and harmonious holiday season.
 

• Email This
• Print
• Comments
• Trackbacks
• Share Link