Community association management contracts play a crucial role in defining the relationship between community associations and their management companies. This is the second installment of the series focusing on some key provisions of community association management contracts. In the first post, we discussed the concept of indemnification and indemnification provisions in such contracts.
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Community associations are engaged in multi-faceted and dynamic operations, often handling a wide assortment of items from handling reserve funds to arranging for swimming pool operations. There are also considerable administrative burdens in the operation of a community association such as handling communications with owners, payment of insurance premiums, collection of assessments, and preparing Virginia State
Many people are generally familiar with the concept that housing providers, real estate agents, and property management companies are subject to state and federal fair housing laws. However, it is important to know that community associations are also subject to those laws. State fair housing laws vary from state to state. These laws typically set forth a statutory procedure for the resolution of complaints of violations of those laws.
This post will focus mainly on the Virginia Fair Housing Law (“VFHL”) (Virginia Code Section 36-96.1, et seq.) and the Virginia process for complaint resolution.
What VFHL Covers
Virginia has a stated policy to provide fair housing throughout the Commonwealth. Va. Code § 36-96.1. The VFHL prohibits covered persons or entities from engaging in unlawful discriminatory housing practices. Va. Code § 36-96.3.
Continue Reading Virginia Fair Housing Law and Community Associations: Procedural Background and Best Practices in Handling Complaints
By recent decision, the Virginia Supreme Court weighed in on an insurance subrogation dispute arising out of a fire at a Virginia condominium. The case is illustrative as to situations that sometimes face community associations when there are casualty losses.
Subrogation: A Basic Explanation
Subrogation is a legal doctrine where a party who pays a loss on another’s behalf is permitted to “step into the shoes” of the payee (person receiving the funds) and enforce their rights as to a legal claim. An elementary principle of subrogation is that an insurer may not subrogate against its own insured. In other words, an insurer cannot sue its own insured for negligence under a subrogation theory. This is intuitive because if an insurer could sue an insured to recover such losses then there would not be much of a concept of insurance coverage (as any time the insurer paid a loss to an insured, there would be a strong incentive for the insurer to sue its own insured to recover the loss). Subrogation may be waived by contract.
Continue Reading Subrogation: Stepping into the Shoes of Another to Enforce Claims: the Virginia Supreme Court Hands Down an Opinion on Subrogation in the Context of a Condominium Fire
Most people are generally familiar with the concept that hotels, restaurants, and other places of public accommodation are subject to the Americans with Disabilities Act (“ADA”). However, as we have mentioned before on this blog, community associations can fall under the scope of the ADA as well.
The ADA is a sweeping set of federal statutes that applies to places of public accommodation, amongst other entities. The ADA framework seeks to prohibit discrimination against disabled persons. As a general matter, a community association may be a place of public accommodation for purposes of the ADA if it is open to the general public, if its common areas are available for rent by members of the public, or if there are portions of the common area open to the public, such as restaurants or a golf course. The legal inquiry as to whether an association is a “covered entity” is rather fact intensive. Ultimately, the analysis turns on how open the Association is to members of the general public, not just its own owners. The more a community association is open to the public, the higher the chance that the community association will fall under the scope of the ADA.
Continue Reading ADA and Community Associations: Best Practices in Handling Requests
LeClairRyan attorneys Lori Schweller and Will Sleeth will be speaking once again at this year’s Community Association Day trade event sponsored by the Central Virginia Chapter of CAI, which will take place this Tuesday the 18th. The two will be giving a presentation titled "Common Area, Common Problems — Parking, Drinking, and Other Liability Issues".
Amazon.com’s recent announcement – that in the future it may utilize unmanned drones to deliver packages to individual residences – has created a host of novel legal issues that all homeowners associations should consider and plan for. Although commentators believe that the commercial use of delivery drones may be a few years off, associations should begin planning now for whether they should regulate the use of drones within the association; how they should regulate the use of drones; and how they can minimize potential liability arising from the use of drones.
While the public has so far only been provided with bits and pieces of information about the make-up and capabilities of unmanned delivery drones, some general information is available: a drone will carry a package and will fly from a warehouse to an owner’s house, with the goal of attempting to deliver the package in a very short amount of time right after it has been ordered. The drone is designed to land, helicopter style, on an owner’s lawn and drop off the package. The drone will then use its helicopter-style propellers to vertically ascend from the owner’s lawn and return to the warehouse.Continue Reading Drones and HOAs: How Homeowners Associations and Condominium Associations Can Be Prepared to Deal with the New Technology
Editor’s Note: LeClairRyan’s Community Association Team handles sophisticated legal matters for a wide array of large-scale master-planned communities throughout Virginia and the nation. The following press release highlights the Team’s recent work in assisting a large master-planned homeowner’s association in Newport News and York County, Virginia purchase the golf course and country club that is located within the community.
KILN CREEK HOMEOWNERS’ ASSOCIATION TO PURCHASE GOLF COURSE, COUNTRY CLUB & 290 ACRES OF PROTECTED GREEN SPACE
Newport News, Virginia—December 23, 2013
The Villages of Kiln Creek Owners Association (KCOA) board of directors today completed its purchase of the Kiln Creek Golf Course & Resort from Dick Ashe. The $3.5 million purchase price includes 290 acres of protected green space with an 18-hole golf course, a former nine-hole golf course, a clubhouse, a 15-room hotel, two restaurants, a swimming pool, tennis courts, a fitness center and office space.
LeClairRyan Community Association Team member Brian Muse recently blogged about the time extension under the ADA (Americans With Disabilities Act) for compliance with pool lift requirements, something that every HOA with a pool should be aware of. Check out Brian’s post over at his new blog ADA Musings. While you’re there, you’ll find that his blog
Editor’s Note: Guest blogger Steve Blaine, a LeClairRyan attorney practicing out of the firm’s Charlottesville office, and focusing his practice on land use, zoning, and community association law, has contributed the following post.
BMPs: How to avoid an amenity from becoming a headache.
We frequently counsel clients, community associations, developers and builders, on various issues involving that ubiquitous ‘amenity’ known as the stormwater detention pond, or “BMP” (short for “Best Management Practices”). This article will briefly discuss how to avoid some of the more common pitfalls facing homeowners whose community’s common areas/elements include these useful, even if at times burdensome, features. At the end of the article is a “glossary of key terms” related to BMPs.
Why do we have BMPs anyway?
BMPs are used to improve the quality of water runoff from roads, parking lots, developed land, including residential neighborhoods, and to reduce peak stormwater runoff flow by providing temporary storage during larger storm events. If the BMP in your subdivision was constructed early in the development process, it was probably used to trap sediment from construction activities in the tributary drainage area, which also can be a very effective way to collect and remove pollutants. Hopefully, the BMP in your neighborhood happens to provide other benefits such as passive recreation and open space in addition to reducing peak runoff rates and improving water quality.
It is essential for those responsible for maintaining these BMPs to understand their important role and what to do to assure their continued proper function.
Continue Reading Community Associations and Stormwater Detention Pond Maintenance (“BMP”) Responsibilities
