MICHIGAN COURT OF APPEALS RULES THAT CONDOMINIUM ASSOCIATION IS NOT ENTITLED TO NOTICE OF SURPLUS FUNDS FROM FORECLOSURE SALE

In Moon Lake Condominium Association v RBS Citizens, Case No. 323476 (Michigan Court of Appeals, November 12, 2015, unpublished), the Michigan Court of Appeals held that junior lienholders, such as condominium associations, are not entitled to notice that surplus funds were collected from a foreclosure sale after the first mortgage of record was foreclosed on.  At issue in this case […]

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Which Type of Foreclosure, Judicial or Advertisement, is Best for Your Community Association?

Introduction Community associations are often faced with the challenge of collecting unpaid assessments from delinquent owners. Initial collection efforts typically involve sending demand letters, suspending recreational facility privileges (if permitted by the documents), and suspending voting privileges (if permitted by the documents). When these efforts are unsuccessful, community associations are left with no choice but to record a lien against […]

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Can a co-owner withhold assessment payments if they are dissatisfied with their condominium association?

Condominium assessments are the lifeblood of any condominium association. A condominium association cannot function and provide essential services to co-owners unless assessments are collected. Unfortunately, dissatisfied co-owners often threaten to escrow or withhold assessments as a means to get what they want. Examples of situations where co-owners commonly threaten to withhold assessments and/or withhold assessments are as follows: A co-owner […]

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Does the Board of Directors of a Michigan Condominium Association or HOA have a duty to enforce the Master Deed, Bylaws or other restrictive covenants as written?

In Michigan, the terms of a master deed, bylaws or other restrictive covenants are contractual in nature. See Rossow v. Brentwood Farms Dev, Inc, 251 Mich App 652, 658, 651 NW2d 458 (2002). The Michigan Courts have generally held that a master deed, bylaws or other restrictive covenants are to be enforced as written.  Specifically, …a breach of a covenant, […]

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TEXAS DEP’T OF HOUSING AND COMMUNITY AFFAIRS V. INCLUSIVE COMMUNITIES PROJECT: FACIALLY NEUTRAL BYLAWS AND RULES AND REGULATIONS MAY SUBJECT AN ASSOCIATION TO LIABILITY UNDER THE FAIR HOUSING ACT

On June 25, 2015, the United States Supreme Court decided Texas Dep’t of Housing and Community Affairs v. Inclusive Communities Project, __ US __ (2015), a decision that affects community associations throughout the country, including in Michigan. In a surprise to many court observers, the Supreme Court endorsed the disparate impact theory of liability under the federal Fair Housing Act, […]

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Religious Freedom and Community Associations: How does the Religious Freedom Restoration Act Impact Condominium and Homeowner Associations?

In 1993, the federal government enacted the Religious Freedom Restoration Act (“RFRA”).  The purpose of the RFRA was to allow a person to avoid complying with any law that interfered with the exercise of their religious freedom unless there was a compelling governmental interest behind the law and the least restrictive means of furthering that compelling governmental interest was utilized.  […]

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