HOAleader.com - Tip of the Week - August 28, 2020
Published: Fri, 08/28/20
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Condo/HOA Boards: Yet Another Reason Deadbeat Lists Do More Harm Than Good
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In this week's tip, we report on how a deadbeat list landed a Florida condo and its manager in court defending a class action lawsuit.
Latheresa Williams, a resident in the Salt Springs Resort condo association, got a reprieve in June when a Florida appellate court revived her class action lawsuit against her condo association. Representing herself and other owners who were similarly allegedly harmed, she sued for the condo's move to name and shame owners behind in their assessment payments. The condo publicly posted a list of the names of more than 100 condominium owners who allegedly owed the association money, along with the amounts they allegedly owed.
What's important here is that Williams' claim alleges a violation of a Florida law, the Florida Consumer Collection Practices Act, not the federal Fair Debt Collection Practices Act. So its reach is limited to Florida.
Florida's FCCPA prohibits the publication or posting of a deadbeat list to enforce or attempt to enforce the collection of a "consumer debt." What was at issue here was whether condo association assessments are considered consumer debt. The appellate court held that, under Florida, law, they do meet the definition of consumer debt.
"We highly discourage this practice, but this case is very specific to Florida," explains Elina Gilbert, a shareholder at Altitude Community Law in Lakewood, Colo., who has specialized in community association law for 19 years. "It's dealing with the consumer protection act in that state, and that specifically prevents shaming people. We don't have that in Colorado, and the federal FDCPA doesn't have that language."
In fact, it doesn't matter what state you're in: This condo's action to publish allegedly delinquent owners is unwise. Read more in our new article: https://www.hoaleader.com/members/4183.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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COVID-19: The Effect of Shutdowns on Condo/HOA Water Supplies
Buildings that have been closed may be breeding grounds for illnesses. A reader has asked us to check it out: "I'm an HOA board member, and we've had our clubhouse facility closed for the past three months. I just read that idle water systems (pipes, tanks, etc.) might be breeding grounds for Legionnaires' disease. Have you heard of this, and, if so, do you know of any actions we should be taking before we open the clubhouse again?"
Click here to read full article:
https://www.hoaleader.com/members/COVID19-Effect-Shutdowns-on-Condo-HOA-Water-Supplies.cfm
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COVID-19: Condo/HOA Law Firm Reports Increase in Mental Health Challenges
The attorneys at Eisinger Law in Florida say they've seen a noticeable uptick in calls from the firm's more than 800 Florida homeowners and condominium association clients over mental health issues. Boards are expressing concern and seeking counsel regarding unit owners or residents who are showing acute and ongoing signs of mental illness.
Click here to read full article:
https://www.hoaleader.com/members/COVID19-CondoHOA-Law-Firm-Reports-Increase-in-Mental-Health-Challenges.cfm
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Does a Condo/HOA Have a Heightened Duty to Get Permits and Use Licensed Pros?
Perhaps this article should be tagged under the "we shouldn't have to say this, but…" category. An HOAleader.com reader asks: "Has anyone had an experience where a board of directors knowingly allowed the property manager to undertake multiple large projects at the HOA without using properly licensed professionals and without obtaining permits? The three projects involved masonry, hardscape, sidewalk; roof repairs; and landscape overhaul with a total budget of about $200,000.
Click here to read full article:
https://www.hoaleader.com/members/Does-CondoHOA-Have-Heightened-Duty-Get-Permits-Use-Licensed-Pros.cfm
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What Should an HOA Declarant's Transitional Audit Look Like?
An HOAleader.com reader asks, "My HOA finally received the declarant transition audit from a CPA, although it has been eight years since the declarant control period supposedly ended. My HOA board is comprised of friends and family of the declarant."
Click here to read full article:
https://www.hoaleader.com/members/What-Should-HOA-Declarants-Transitional-Audit-Look-Like.cfm
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What Condo/HOA Boards Can Glean from an Iowa Emotional Support Animal Case
The Iowa Supreme Court recently sided with a woman who sued her landlord for allowing a tenant to move in to another unit in the building with an emotional support animal. That's despite the building's "no pets" policy and her severe allergy to animals.
Click here to read full article:
https://www.hoaleader.com/members/What-Condo-HOA-Boards-Can-Glean-from-Iowa-Emotional-Support-Animal-Case.cfm
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