Two Condominium Bylaw Provisions That Every Board Should Review to Ensure that Assessments are not Unnecessarily Depleted

Assessments are the means by which all associations operate, and assessments provide the necessary income to maintain and enhance a community’s assets to protect and maximize unit values. When assessment levels get too high, the very assessments that are essential to sustain a condominium community may very well end up hurting the market values the association is seeking to increase and protect.

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Developer Turnover of Condominium Association

What “Turnover” Is

Before we get to the definition of “turnover,” some background information is necessary.  Most Michigan condominium associations are formed by the project developer at, or shortly after, the time the master deed is first recorded.  Most associations are organized as nonprofit corporations. The incorporator is usually the developer and the initial board of directors is typically and simply appointed by the developer.  These appointees govern the association until the developer arrives at the point where it is ready or required to turn over control of the association to the non-developer co-owners.

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Insuring Condominium Property Under a “Single Entity” Insurance Policy

Insuring Condominium Property Under a “Single Entity” Insurance Policy

One of the primary functions of a condominium’s governing documents is to establish the respective responsibilities of the association and the co-owners for maintaining, repairing and insuring everything located within the project. During the early days of condominium development, most governing documents required the association to insure both the common elements and the individual units. In addition, these older governing documents would typically define “unit” to include the original equipment, fixtures and trim that were provided as “standard features” by the developer, thereby adding these “standard features” to the list of items that the association was responsible for insuring.

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Hoarding – Understanding and Successfully Addressing the Problem

It’s a condition that affects between three and five percent of all Americans, both men and women. With an aging baby boomer generation, experts predict that the problem is only going to get worse. It’s called hoarding and for condominium associations, particularly those with attached units, it can be very expensive and difficult to confront. For instance, in one particularly egregious case in New York City, an association spent more than $150,000.00 in legal fees and took two years to obtain a court order to clean up a hoarder’s unit. Because privacy and individual property rights are involved, weighed against the rights of other occupants to the peaceful and sanitary enjoyment of their property, dealing with hoarding can be complex and must be sensibly addressed.

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Bankruptcy – What Every Condominium Association Must Know

Delinquent assessments are unfortunately a frequent and practically universal problem for condominium associations. The collection of delinquent assessments is essential to the viability of any condominium association; however, these collection efforts can become problematic when a co-owner files for bankruptcy. This Article will address the two common types of consumer bankruptcies filed by co-owners, those being Chapter 7 and Chapter 13, as well as the bankruptcy filing’s affect on an Association’s ability to collect these delinquent assessments.

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Two Condominium Bylaw Provisions That Every Board Should Review To Ensure That Assessments Are Not Unnecessarily Depleted

Assessments are the means by which all associations operate, and assessments provide the necessary income to maintain and enhance a community’s assets to protect and maximize unit values. When assessment levels get too high, the very assessments that are essential to sustain a condominium community may very well end up hurting the market values the association is seeking to increase and protect.

Continue reading “Two Condominium Bylaw Provisions That Every Board Should Review To Ensure That Assessments Are Not Unnecessarily Depleted”

Association Property Damaged by an Automobile – What Every Association Should Know to Recover Under Michigan’s No-Fault Insurance Laws

When people think of Michigan’s No-Fault Insurance Act (‘Act’), their mind is likely drawn to thoughts of a roadside automobile accident. But what if an automobile damages subdivision common areas or condominium common elements? Under State law, drivers are required to carry insurance for injury to or destruction of other’s property resulting from an accident caused by their vehicle. This insurance is intended to benefit third-party property owners (such as a condominium or subdivision association) by imposing liability for property damage on the insurers of vehicle owners or drivers.

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Responding to a Member’s Request To Review and Inspect Your Association’s Books and Records

Member requests to review and inspect an association’s records and books are a fairly typical occurrence and should not be a reason to panic, but such requests should be dealt with in a prompt and orderly fashion for reasons explained in this article. Some members are just generally interested in the ongoing management and administration of the association and want to keep a closer eye on the details. Unfortunately, in other cases, you may have a member with an axe to grind and whose intent may ultimately be to try and find some error or oversight to justify their allegations against the association. Regardless of the intent behind these review and inspection requests, it is of utmost importance that the association address them and respond accordingly. How an Association responds and reacts to these requests may ultimately save it a great deal of time and headaches later on. Therefore, it is a good idea for your association to develop a response protocol that addresses these requests both in terms of the language of the Michigan Condominium Act, Michigan’s Nonprofit Corporation Act, and the language of your governing documents.

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Make Sure Your Enforcement Charges are Collectible

In the course of running a Condominium Association, various charges may be provided by the Condominium Documents to be assessed against or posted to the accounts of co-owners who are either delinquent or in violation of other provisions of the Condominium Documents. These charges are variously referred to as interest, late, fees, fines and attorney’s fees. Many times we find that due to procedural errors, or because the lack of understanding of the uniqueness of each type of charge, the charges become subject to legal objection as being excessive, constitutionally invalid, unreasonable or in violation of statute. For these reasons, it is important that Associations understand the nature of each of these charges, the legal requirements for validity, and the proper procedures to follow in order for these charges to be enforceable.

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Surveillence, Security and Privacy An Overview Of Practical and Legal Considerations For Community Asssociations

Every person desires to have a safe and secure place to call home regardless of whether you live in an attached condominium, site condominium or subdivision. Choosing a home in a low crime area helps to ease worries of safety and security; however, crime occurs in all neighborhoods. High quality video security systems are readily available and may help to give owners an added sense of safety and security. Modern systems even enable an owner to monitor their property remotely in real-time from a smart phone.

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