Condo-HOA Blog - Governing Documents
A Serious Threat To Condominium Associations' Lien Priority
The lien priority that associations enjoy and regularly rely on is being threaten. Both Washington and Oregon have laws in place that give condominium associations a lien priority for unpaid assessments when a unit goes through a foreclosure. RCW 64.34.364 and ORS 100.450. In addition, some associations attempt to establish lien priority in their governing documents. These super-priority liens are vital to each association's economic well-being, which is why it is so surprising that they are being attacked by the federal government. read more
Unintended Consequences
One of the main takeaways from the Washington Supreme Court's recent decision in Bilanko v. Barclay Court is that a declaration amendment that is adopted in a manner that does not exceed its legal authority and and does not appear to be borne out of fraud or other wrongdoing cannot be challenged more than one year after it is recorded. This is welcome news to associations, which had been thrown onto unsteady legal ground after the Court's earlier decision in Club Envy v. Ridpath called into question the enforceability of rental cap amendments that were over one-year old, but had not been passed with at least 90% owner consent. read more
Bilanko v. Barclay Court Owners Association
In last week's post "Hot Off the Press," we advised readers that the Washington Supreme Court published on that day Bilanko v. Barclay Court Owners Association,an important decision relating to challenges to declaration amendments involving Washington "New Act" condominiums. The decision can be found here. Over the past week we've had time to analyze the opinion and have come up with a few summary points. read more
Getting Ahead of the Game
In times of crisis, Boards generally try to solve the specific issue in front of them, sometimes overlooking basic principles and procedures. So the best time to focus on these basic principles and procedures is before a crisis. Those times may be few and far between, but just after the annual meeting at which new board members were elected is the perfect time for basic board training or, as we like to call it, Board Boot Camp. Boot Camp is also good as a refresher for incumbent board members. read more
Explosions in the Sky
Setting off fireworks is a bright, colorful way to celebrate certain special occasions. While most commonly associated with the 4th of July, it is not unusual for people to set off fireworks on New Year's Eve and other holidays, as well. When the Seahawks won their first-ever Super Bowl in 2014, the Seattle sky was peppered with exuberant blue and green explosions—a night most of us won't soon forget. read more