Articles

As Fall is now upon us, Board of Directors may be scheduling their fall inspections of the cooperative premises and dwelling units to ensure that all members are in compliance with their House Rules and Regulations. As more of us are spending more time at home these days, you may have purchased a few new items to store outside for your own personal use, such as a patio set, canopy, grill, wading pool, etc. Each cooperative has its own unique House Rules and Regulations for not only what is permitted or prohibited but how such items can be used and stored.

With summer around the corner, your cooperative may be getting ready to start planning for the opening of swimming pools and other recreational facilities, such as basketball courts, tennis courts, playgrounds, and parks. However, due to COVID-19, extra attention and careful consideration must be given to ensure that the cooperative is in compliance with any and all local and state COVID-19 restrictions as well as adhering to all CDC guidelines for these types of recreational facilities. As we all know, COVID-19 restrictions vary from state to state with respect to face mask orders, gathering size restrictions, capacity limitations and social distancing requirements, and COVID-19 restrictions are continuing to change. Therefore, it is pertinent for Board of Directors to review and monitor your state’s COVID-19 restrictions to ensure that your cooperative remains in compliance.

As we enter into the holiday season and the fall/winter surge of COVID-19 cases, we have been coming up with alternative ways to see our friends, family and neighbors. Some suggested ways to get together have included holding small gatherings outside while practicing social distancing and wearing masks. Some of us may even be planning for holiday dinners to be held outside this year with our friends, families and neighbors.

The installation of security cameras is widely considered amongst cooperatives mainly for the security and surveillance of its parking lots. The installation of security cameras has its benefits as well as its detriments, but it does not come without issues for multifamily housing properties. There are legal ramifications that are associated with the installation of outdoor security cameras on cooperative premises.

A Share Loan is a type of financing that allows for an incoming Cooperative member to finance the initial purchase price of a membership and unit, or can be obtained by an existing member for improvements as specified in a Cooperative’s Bylaws. As part of the Share Loan process, a Recognition Agreement is executed by a Cooperative and a lending institution which sets forth the rights and responsibilities of the parties as well details as what happens if the member-borrower defaults on the member-borrower’s Share Loan. Generally, standard Recognition Agreements are overly Lender friendly and do not provide for specific rights that must be afforded to the Cooperative in the event of a default by the member-borrower. It is pertinent that any Recognition Agreement that is presented to a Cooperative from a Lender be specifically tailored to the needs of the Cooperative.

Imagine a scenario when a member is having some challenges, which come with either age or declining mental conditions to the extent they may be a threat to themselves or the community. What does the Cooperative do? Do they have any obligation? What if the member’s family calls demanding you to take action such as turning off their water or their gas for fear the member might not remember to turn it off?

Among those horrifying things cooperative attorneys at our office, hear about are Board members who still do not get it! Did you know that there is such a thing as a “Fair Housing Tester?” Did you also know that these Testers are paid employees and that they are paid to contact your cooperative to see if your Board members and Management Staff are ensuring an equal opportunity to housing for all persons in protected classes? Can you even name all of the protected classes?

Every Housing Cooperative establishes a set of membership application and eligibility criteria. Screening applications, while itself is not an unlawful practice if decisions do not violate the Fair Housing Act for discrimination against one or more protected classes (i.e., race or color, religion, sex, national origin, familial status or disability) or other relative federal, state and local laws, serves a legitimate purpose. These purposes include insuring that members can meet financial obligations, that members and their immediate family meet occupancy standards for certain sized dwelling units, and passing criminal background checks.

On December 19, 2019, the United States Court of Appeals for the Sixth Circuit issued an Opinion affirming a Michigan federal District Court’s dismissal of a condominium unit owner’s lawsuit alleging discrimination under the Fair Housing Act against a condominium association for its failure to ban smoking as a reasonable accommodation request. This case carries significance for condominium and other association-based communities in how courts continue to address claims under the Fair Housing Act relating to smoking inside a building or unit and the odors that result. This article goes over the history of the case, the Sixth Circuit Court’s opinion and analysis, as well as some key things that the association did that were noteworthy in the opinion.