HB19-1118 was introduced this week relating to landlord/tenant issues. Introduced on January 16, 2019, if passed, would require a landlord to provide a tenant fourteen (14) days to cure a violation for unpaid rent or for a first violation of any other condition or covenant […]
HB19-1106, also known as the Rental Application Fairness Act (creating C.R.S. § 38-12-901 et seq), was introduced in the house on January 14, 2019. If passed, the bill would do three things: Limit the application fee that a landlord may charge an applicant to the actual […]
Assessments are the cornerstone of an association, and the necessity of an association to collect delinquent assessments is of utmost importance – an association cannot be run without assessments being paid!
It’s the start of a new year and your Board likely has its delinquencies on the top of their minds. So how does your association aim to reign in delinquencies? One of the potential tools in your association’s toolkit is acceleration. The new year is a great time to think about accelerating the balances due on your delinquent accounts. Acceleration allows a board to call due the entire fiscal year’s debt against the owner’s account, rather than just the current delinquency. Consider especially those owners who may be chronically delinquent.
For example, John Doe (it’s not his first rodeo) has been consistently delinquent for years. On January 10th, the association turns the account over to its attorney for collections. The current balance due at that time is $1,000. However, the board, due to the owner’s continued delinquency, has reviewed its documents and decided to accelerate Mr. Doe’s assessments for the year. At $100 per month, an additional $1,100 would be added to the balance, making the total amount due $2,100. Rather than proceeding to collect on the $1,000, the attorney can now attempt to collect on the $2,100. If it takes six months to collect, once complete, the association will still be paid in full through the end of the fiscal year. You only hope that the owner will pick up paying regular assessments at the start of the next fiscal year!
As we head into the new year, assess your documents to ensure that your community has the ability to use this tool. If you’d like to discuss this or other debt recovery solutions, please contact us at firstname.lastname@example.org or 720.279.4351.
HB-1050 was introduced in the house on January 4, 2019. The bill, if passed, would augment the existing law that establishes the rights of unit owners in common interest communities to use water-efficient landscaping (xeriscaping), subject to reasonable aesthetic standards. The change would extend that […]
The 2019 General Assembly convened today and just like last year, Cornerstone will be keeping on top of issues that affect community associations and landlord/tenant law. You can check our website here for updates throughout the session. In case you are curious as to how a […]
She’s looking forward to her seat at the table starting in 2019! For more information about CAI at the national level, visit www.caionline.org.
According to the Federal Aviation Administration (FAA), in 2018, there were over one million registered consumer drones in the United States. If you are like me, you may not have known that if you have an unmanned aircraft system (UAS or drone), you are now […]
Today, we are celebrating one year of business for Cornerstone Law Firm. Ashley Nichols has over a decade of experience partnering with managers, business partners, and community board members to provide a strong foundation for our associations. This foundation leads to the overall vitality and […]
Recently, a condominium community in Chicago, by a vote of almost 80% of its owners (75% was required by the governing documents), accepted an offer to sell the building to an investment group that will turn its 188 units into apartments. According to the Chicago Tribune, the sale will be one of the largest deconversions in the city’s history. Why is this noteworthy? Let me count the ways …
First, what is a deconversion? This is a term used to refer to the process of converting a condominium project to apartments. The deal that the Chicago owners approved is worth $27 million dollars. According to the article from the Community Associations Insitute, owners will receive approximately 40-50 percent more on average for their units than if they were going to sell them on their own. That’s a HUGE incentive to approve the sale.
Second, the building is from the 1950’s. If you are doing the math along with me, that means that the building is in its 70’s. I have recently taught a few classes to managers and board members about aging communities and how to finance necessary repairs for those buildings. Updates, modernization, code compliance, and capital improvements in an older community are not inexpensive. Often times, the association’s solution to pay for the needed repairs is a large special assessment, or over time, many large special assessments for its owners. In this case, the owners were able to see a solution to the problem of deferred and/or necessary maintenance (sell the building rather than fund costly repairs/replacement).
Third, the rental market in Chicago, like in Denver, has been strong. The need for quality, affordable housing and the limited availability of our land resources, is leading developers toward more creative options of buying older condominium buildings and turning them into apartments. Given our state’s construction defect laws, development on condominiums had all but stopped. Changes to the laws in 2017 were made in an attempt to reinvigorate the market. Look for a resource from Cornerstone on that soon!
Deconversion may not be the right solution for your aging community, but it’s certainly something worth considering – especially if you have 27 million reasons to do so!