The Meisner Law Group recently notched a significant win in the Michigan Court of Appeals for our client, Sunflower Village Homes Association. In an assessment collection case against owners who did not pay assessments, the trial court judge only awarded $500 in attorney’s fees and costs to the plaintiff Association, which was much less than…
Don’t cut off utilities for delinquent assessments The reasoning goes, “We’ll see just how hard up they are – we’ll cut off their water and then see how soon they pay.” However, even if this is allowed under your governing documents, you are taking on significant risk by doing this. What if there is a…
The owner has not paid assessments in years. Perhaps the owner has a gambling problem and flushed all their money away at the casino. The only significant asset other than their residence is a car with a lien on title, which can’t be seized for a sheriff’s sale. The only income is social security, which…
Instead of retaining experienced legal counsel, some community associations contract with a collection agency to pursue delinquent assessments without an understanding of the major differences between the two approaches. One purported benefit offered by collection agencies is a “no upfront fees” approach where fees and costs are deferred and only added to the delinquent account…
A new unpublished Michigan Court of Appeals decision provides an instructive example of how courts will sometimes use a simple dictionary in order to determine what words mean. In MJ Development Company, Inc. v. Inn at Bay Harbor Association (Not reported in N.W.2d, 2017 WL 726591), the decision was based on the following bylaw provisions: (a) Should…
A recent decision in Essique v. Walnut Woods Condominium Association, No. 2:15-CV-12049, 2016 WL 7337246 (E.D. Mich. Dec. 19, 2016) is a good example of how important it is to strictly comply with the requirements of the federal Fair Debt Collection Practices Act (FDCPA). Following is the judge’s summary of the requirements pertinent to the case…
When we speak with directors and other leaders from Michigan community associations, especially those from homeowners associations and subdivisions, we hear some common refrains when discussing the inadequacy of their regular monthly assessment/dues amounts. The Board may be fully aware that income is not sufficient to meet projected future costs, but for many reasons, the…
Michigan condominium associations with annual revenues greater than $20,000 are required under the Michigan Condominium Act to submit their financial records for an annual audit or review by a Certified Public Accountant. However, many condominium associations do not know that the co-owners may vote to opt out of this requirement on an annual basis, by…
This important victory for community associations was codified by the Michigan Court of Appeals in its recent published opinion issued July 2, 2015 in the case of Great Lakes Shores v Bartley. The importance of this decision cannot be overemphasized for any community association that seeks to recoup its legal fees and costs in a…
A reserve study is an inspection of the common elements that is intended to analyze the repair and replacement needs of a Condominium or HOA. A reserve study serves two important purposes. First, a reserve study allows for an Association to accurately budget for major repairs over an extended period of time and avoid large additional…
*This article may not reflect current changes being made by FHA which are in the process of being finalized by FHA at this time. Contact us to confirm current requirements. An FHA loan allows a buyer to purchase a condominium with a smaller down payment, and in some instances, at lower interest rates. A purchaser can…
By Robert Meisner As I have often told the participants in my seminars, collecting assessments is the lifeblood of the Association. First and foremost, the Association should have a written collection policy in conformity with its condominium documents which would outline when assessments will be deemed to be due, when various late charge notices will…