Articles

Helpful articles to aid Management Companies, Board Members, and Housing Cooperative Professionals in handling complex legal issues.

CTA Takes A Rollercoaster Ride Through The Holidays Part 2

A nationwide preliminary injunctive order issued by Judge Amos Mazzant on December 3rd, 2024 in the Eastern District of Texas (ECF No. 24), that applies to all reporting companies, including all housing cooperatives nationwide was appealed by the Federal Government. In its Emergency Motion for Stay Pending Appeal, the Government pleaded with the Fifth Circuit Court to grant an immediate stay of the nationwide injunction. On December 23, 2024, the Fifth Circuit Court Motions Panel granted the Government’s request and entered an Order staying the District Court’s nationwide injunction.

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CTA TAKES A ROLLERCOASTER RIDE THROUGH THE HOLIDAYS

A nationwide preliminary injunctive order issued by Judge Amos Mazzant on December 3, 2024 in the Eastern District of Texas (ECF No. 24), that applies to all reporting companies, including all housing cooperatives nationwide was appealed by the Federal Government. In its Emergency Motion for Stay Pending Appeal, the Government pleaded with the Fifth Circuit Court to grant an immediate stay of the nationwide injunction. On December 23, 2024, the Fifth Circuit Court Motions Panel granted the Government’s request and entered an Order staying the District Court’s nationwide injunction.

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HUD’S FINAL RULE ON 30-NONPAYMENT NOTICES

In response to the number of evictions for non-payment after the COVID lockdowns, HUD issued an interim rule requiring certain housing program recipients to issue a 30-day notice for non-payment instead of the 14-day notice of non-payment. The interim rule became a proposed rule published on December 1, 2023 and was to remain in effect until such time as HUD issued a final rule. On December 13, 2023, HUD released its final rule regarding the provision of a 30-day notice for non-payment of rent for select federally subsidized projects with an effective date of January 13, 2025 despite its required application in the interim.

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Are You Ready For The Corporate Transparency Act Deadline?

As the January 1, 2025 deadline for registering with FinCen under the newly enacted Corporate Transparency Act (CTA) approaches for hundreds of Michigan cooperative board members, many remain in the dark as to the Act’s application to them. Others remain unsure as to what information is required and how that information is filed to avoid steep fines. Others may not even be aware that even if they are not a board member, they could still be considered a beneficial owner in their cooperative, subject to FinCen filing requirements under the CTA.

Who Made That Accommodation Request: What Law Applies?

Housing providers such as cooperatives, wear many hats. They may be employers and have employees. They provide housing to their members. Their business offices may also be open to the general public to answer questions and receive applications. What happens when a disabled person asks for an accommodation? They may want a designated parking space for their disability. They may want an assistance animal for their disability. Is the person an employee, a member, or simply a member of the public? The answers to these questions will decide what laws apply and guide the cooperative along the way toward successful compliance.

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A $750,000 Parrot?

Legal disputes over assistance animals continue to make inroads in the cooperative housing community. In a recent case, a cooperative Board apparently didn’t think a parrot qualified as an emotional support animal. It denied a member’s accommodation request to keep the parrot because of the member’s disability. The member filed a complaint with HUD. The cooperative retaliated. The U.S. Attorney got involved. As a result, the mistake cost the cooperative $750,000.

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Missing In Action: Where Are Your Written Job Descriptions?

Attention employers. Do you have a written job description covering each position in your workplace? Are they compliant with the Americans Disability act? If you get sued for disability discrimination, will those job descriptions hold up in court? Let’s review why you need to know the answers to these questions.

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As rents climb, a group of Detroiters seek unique form of housing ownership

As rents climb, a group of Detroiters seek unique form of housing ownership Louis Aguilar The Detroit News

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Quash the Squat: Steps for Preventing and Dealing With Squatting

Squatters are defined as individuals who illegally occupy a property without compensation and without documentation. It is becoming more common and, unfortunately, in many situations, dangerous. In a housing cooperative, squatting can occur under a couple of different scenarios. The first is they start off as an invited guest of a Member and then they just never leave thereby establishing legal residence. Legal residence occurs when the law recognizes your use of a particular address as your home where you receive mail. This is generally a 30-day window and is generally dealt with effectively through the use of appropriately drafted guest policies and enforcement of your governing documents. Typically, you want a registration process for planned stays that are longer than a week and shorter than a month. This assures the Cooperative that occupants are authorized occupants and visitors are just visitors.