Category Archives: Condo and HOA Assessments

Case Law Update: Nottingham Village Condo Ass’n v. Pensom: Litigation Evaluation Meetings

In some condominium governing documents, there are provisions that require a co-owner vote before the association can file a lawsuit.  These provisions range from the rather mundane to extremely onerous. In Nottingham Village Condominium Association v. Pensom, unpublished per curiam opinion of the Michigan Court of Appeals, No. 333311, Dated December 12, 2017, the Michigan Court of Appeals just upheld

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Should your Community Association have a Holiday Party?

Introduction With Christmas just around the corner, many community associations are currently planning parties to celebrate the holiday season. Holiday parties are a great way to bring the community together and converse with your neighbors. These parties frequently involve the catering of food and alcohol as well as live entertainment which helps foster community participation. While holiday parties are generally

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What is the bank’s obligation to pay assessments under the Michigan Condominium Act after a foreclosure?

MCL 559.169 allows for a Michigan condominium association to impose assessments against all co-owners in order to pay for the common expenses that are necessary to operate the condominium. When a co-owner fails to pay assessments, it places a strain on the condominium association’s budget for the year and unfairly results in an increased burden on the remaining co-owners as

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The Difference Between General and Limited Common Elements in Traditional and Site Condominiums in Michigan

In Michigan, condominiums consist of either units or common elements. Common elements are further subdivided into two categories: general common elements and limited common elements. Under most Michigan condominium documents, the difference between general common elements and limited common elements is important to determine who is responsible for maintaining, repairing and replacing damage to various areas of the condominium, which

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Court rules that Michigan HOA cannot collect assessments after restrictive covenant expires

In Deghetto v Beaumont’s Seven Harbors White and Duck Lack Association, issued June 22, 2017 (Docket No. 330972) (Unpublished Opinion), the Michigan Court of Appeals recently ruled that a homeowners’ association could not continue to collect assessments after the restrictive covenant expired. In Deghetto, the plaintiffs were the owners of multiple lots in six separate subdivisions in Highland Township, Michigan

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HB 4446 allows Michigan Condominium Associations to enforce restrictions and defend lawsuits

On March 30, 2017, Representative Klint Kesto introduced House Bill 4446, which would modify the Michigan Condominium Act, MCL 559.101, et. seq. House Bill 4446 (2017) would amend MCL 559.160, MCL 559.207 and MCL 559.215 as follows: Sec. 60. (1) Actions on behalf of and against the co-owners shall be brought in the name of the association of co-owners. The association

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IRS Revenue Ruling 70-604 and MCL 450.2541(2)(b): The Value of Expert Advice

Many individuals and corporations, including community associations, are currently preparing their tax returns.  For associations with excess revenue this process most likely involves a determination of whether to exercise an election under IRS Revenue Ruling 70-604.  A proper election under Revenue Ruling 70-604 can be used to reduce an association’s taxable income by deducting from taxable income any excess assessments

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