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2008-07-03 LEGISLATIVE UPDATEDuring the last legislative session, the Minnesota legislature passed several bills affecting community associations. This article contains a summary of the major legislative changes affecting community associations. Complete copies of any of the bills mentioned here can be found at the website for the Minnesota Office of the Revisor of Statutes: www.revisor.leg.state.mn.us. Foreclosure Amendments During this past session, the Minnesota legislature has reviewed many of...
2008-05-18 MORTAGE INDUSTRY MELTDOWN AFFECTS COLLECTION OF ASSOCIATION FEES
Recent newspaper headlines throughout the country have made it clear that the mortgage industry is in trouble and that the real estate market is in severe decline. As a result, mortgage foreclosures are on the rise due to declining economic conditions. Many of our community association clients have asked: “What is the effect of these mortgage foreclosures on our ability to collect assessments?” Unfortunately, community associations can become unintended victims of mortgage...
2008-03-15 FCC PROHIBITS EXCLUSIVITY CLAUSES
The Federal Communications Commission ("FCC") recently banned the use of exclusivity clauses for the provision of video services to multiple dwelling units ("MDUs") or other real estate developments. The ban applies to apartment buildings, condominium buildings, cooperatives, and other centrally managed residential real estate developments, including gated communities and townhouse associations. The central purpose of the rule is to foster consumer choice and competition among cable...
2007-09-14 RULES AND REGULATIONS - ADOPT AND ENFORCE, AS A RULEAssociations often under-utilize Rules and Regulations. Rules and Regulations are specific guidelines and policies relating to the day to day operation of an Association. Unlike other Association governing documents, Rules are generally easy to adopt and modify because they are typically adopted and amended by the board of directors without member input or approval. Home owner involvement is not typically required to modify or amend the Rules and Regulations. Under-utilizing Rules and...
2007-06-26 SEND THE KIDS PACKING: ALLOWABLE AGE RESTRICTIONS FOR COMMUNITY ASSOCIATIONSKids are great -- especially your own. But what if you "did your time"? Your kids are grown, and you're ready to start a new chapter in your life -- without worrying about skateboards and bikes littering the lawn and music thumping and blaring at all hours. In other words, is there a legal way a community association can "outlaw" kids? In a word, yes. But it's not necessarily easy. The Fair Housing Act In general, under the federal Fair Housing Act, it...
2007-06-25 JOEL A. HILGENDORF ELECTED TO MINNESOTA COMMUNITY ASSOCIATIONS INSTITUTE (CAI) BOARD OF DIRECTORSHellmuth & Johnson attorney Joel A. Hilgendorf was elected to the Board of Directors of the Minnesota Chapter of the Community Associations Institute (CAI) at its recent annual meeting. Hilgendorf, whose practice focuses on the varied needs of the growing association marketplace, will serve a three-year term. The CAI is the only national organization devoted to representing the ideals of condominium, townhouse and other community associations. The Minnesota chapter's...
2007-06-15 ASSOCIATION COLLECTION OPTIONS IN THE FACE OF A CHANGING MARKETAssociations generally have two options when it comes to collecting unpaid assessments: suing the owner personally and seeking to collect on a judgment for the unpaid amounts, or foreclosing the association's lien. In a strong real estate market, foreclosing the lien is almost automatic. In this changing marketplace, however, an association's board of directors needs to re-evaluate its collections practices to ensure the board is both honoring its fiduciary duty to the association to collect unpaid...
2007-06-01 ASSOCIATION SEMINARS: CALL FOR TOPICS!...
2007-05-11 IMPACT OF RECENT FORECLOSURE OPINIONOn March 20, 2007, the Minnesota Court of Appeals issued an opinion that could have significant impact on associations' foreclosure of assessment liens. In the case, entitled, In the Matter of the Petition of Option One Mortgage Corporation Regarding Certificate of Title No. 1110609 (A06-764), the Court of Appeals ruled that, because the townhouse association's declaration was ambiguous as to the allowable methods of foreclosure, the foreclosure of its lien was fatally flawed. Prior...
2007-05-08 TRANSITION FROM DEVELOPER CONTROL, TURNOVER OF RECORDS AND OTHER DUTIES – WHAT SHOULD THE DECLARANT TURNOVER?
Due to the aging baby boom population and substantial increases in land costs, builders and developers have been increasingly constructing substantial numbers of common interest communities throughout the state of Minnesota. Condominium and townhouse style projects have become increasingly popular. As a result, the demand for these types of developments is far outpacing traditional single family homes. As legal counsel for community associations, we are frequently asked the following...
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