- CSI Ohio: The Common Sense Initiative Update
- Our Clients Ask Us: Mediation
- Ohio Department of Commerce-Minimum Wage Standards
- New Enforcement of Ohio's Old Use Tax
- $55 MILLION APPROVED TO PROMPT SMALL BUSINESS LENDING IN OHIO
- Our Clients Ask Us: Non-Profit Corporation Qualification
- Supreme Court Throws Out Suit Against Wal-Mart
- Ohio Small Businesses May Get Compensatory Time
- Recently Passed Bill Expands Locations Concealed Handguns are Allowed
- Workers' Compensation Q & A
- Governor Plans to Tackle Workers’ Compensation System
- Our Clients Ask Us: Employee Complaints
- Small Business Jobs Act of 2010 Assists Ohio Companies
- Spring Cleaning Your Business
- Ohio Health Care Law Challenge Expedited by 6th Circuit Court
- Our Clients Ask Us: Tax Credits
- CSI Ohio: The Common Sense Initiative
- Our Clients Ask Us: Filing for Bankruptcy
- Supreme Court Rejects the Constitutional Challenge of Varying Rates for Rental Properties
- The EPA Audit Policy: Incentives for Self-Policing
- Owners of Video Copyrights Must Monitor the Internet
- Our Clients Ask Us: Dress Code
- Employment Litigation and the Discovery of Information on Social Networking Sites
- Illegal Immigrants in the Workplace
- New Legislation on Age Discrimination Law
- Our Clients Ask Us: Waiver of Right to Sue
- Criminal Trial in Absentia Against Corporation is Unlawful
- Small Public Companies to Begin Providing Audited Assessments
- The U.S. Census and Your Business
- Our Clients Ask Us: Unpaid Internships
- Law is Upheld Limiting Workplace Intentional Tort Lawsuits
- Health Care Reform: What Small Businesses Need to Know
- Our Clients Ask Us: PDAs
- The Most Wonderful Time of the Year: Limiting Liability at Office Holiday Parties
- Our Clients Ask Us: Grants
- Termination of Employee Post-Childbirth Ruled as Unlawful Sex Discrimination
- Business Condominiums: A More Common Type of Ownership
- Federal Red Flags Rule: Does it Apply to Your Business?
- 6% Interest Could be Heading Your Way
- Our Clients Ask Us: Credit Card/Payment Card Transactions
- Evidence of Oral Promises is Barred
- Act to Assist Workers Facing Mass Layoffs
- Associational Retaliation No Longer a Concern
- Our Clients Ask Us: Pregnancy Policy
- Statute of Frauds Requirement of a Signed Agreement is Upheld
- Ohio Focuses on Worker Misclassification
- New Bills Offers Pension Relief
- Our Clients Ask Us: Employee Termination
- The Ohio Tax Commission Lowers Interest Rate on Court Judgments
- Ohio's New Partnership Statute
- Privacy in the Workplace
- When is the Requirement of Written Contract Not Met?
- What's in a Name? Choosing Your Company Name
- The FDIC Extends IOLTA Unlimited Coverage
- The Age of the Digital Signature
- State Legislation That Could Affect Small Businesses
- Restoration of the Americans with Disabilities Act
- Privacy Laws
- Paying for Employee Travel Time
- Our Clients Ask Us: Jury Duty
- Our Clients Ask Us: Collections
- Issue 2 and Its Affect on Ohio Companies
- Identity Theft: A Guide for Ohio Victims
- Going Green at the Office
- Genetic Information Nondiscrimination Act of 2008
- Former Employee's Use of Memorized Client Information Violates Trade Secrets Act
- Federal Protection for Returning Veterans
- Entity Selection
- Enforcement of Non-Competition Clauses
- Electronic Discovery Law
- Cuyahoga County's Business Docket
- Copyright Licenses for Movie Nights
- Changes to Piercing the Corporate Veil
- Business Succession Planning: The Basics
- Disposing of Confidential Information
- Our Clients Ask Us: Confrontational Owners
- TWO ASSOCIATIONS: HOW TO COMBAT CONFUSION?
- CAN WE FORCE THE BANK TO PAY?: DELINQUENCY IN BANK-OWNED PROPERTIES
- Update of FHA-Eligibility Requirements for Condominiums
- CHOOSING A PROPERTY MANAGER: WHAT ARE THE RIGHT QUESTIONS TO ASK?
- Our Clients Ask Us: Responding to ARB Requests
- RIGHT OF FIRST REFUSAL: IS IT GOOD OR BAD?
- SPECIAL ASSESSMENTS: WHAT IS THE BEST WAY TO STRUCTURE?
- Defacing Common Elements: Catching a Graffiti Artist
- Our Clients Ask Us: Reporting Insurance Damage
- Multiple Units, Multiple Delinquents
- How to Handle the Deaths of Unit Owners: Steps to Take
- Association-Sponsored Garage Sales
- Requests for Proposal: The Proper Way to Handle the Bidding Process with Vendors
- Quick Quiz: Test Your Knowledge on Pets!
- Our Clients Ask Us: Suspension of Rights During Bankruptcy
- 2013 BOARD OF REVISION COMPLAINTS
- KEEP THE LINES OF COMMUNICATION OPEN
- THE THREE “S” WORDS: SAFETY, SECURITY, AND SURVEILLANCE
- SHARING EMAIL ACCOUNTS: NO BIG DEAL OR DISASTER?
- Our Clients Ask Us: Sheriff's Sale Bids
- THE FORECLOSURE PROCESS: WHY IS IT TAKING SO LONG?
- HURRICANE SANDY: WHO IS RESPONSIBLE FOR CLEAN-UP?
- Defective Workmanship Does Not Constitute “An Occurrence” Under a Contractor’s Liability Insurance
- Our Clients Ask Us: Sex Offenders
- Board Meeting Minutes: Tips for the Secretary
- TAX-EXEMPT, OR NOT-FOR-PROFIT?
- How Bankruptcy Affects an Association's Ability to Collect Assessments and Enforce Rules
- Change in FHA Guidelines for Condominium Association Approval
- Association Issues: Keep it in Perspective; Keep it Professional
- Our Clients Ask Us: Community Picnic
- Can Associations Collect Rent from Tenants When the Owner-Landlord is Delinquent?
- How Long Should an Association Retain its Records?
- Our Clients Ask Us: Leasing Thresholds
- CONTRACTS: YOU BETTER SHOP AROUND FOR BIDS!
- INTERESTING FRAUD CASE IN LAS VEGAS: CAN IT HAPPEN HERE?
- THE TRAYVON MARTIN CASE: THE LIABILITY OF COMMUNITY ASSOCIATIONS FOR A “NEIGHBORHOOD WATCH”
- VACANT OR ABANDONED PROPERTIES IN THE SUMMERTIME
- Our Clients Ask Us: Payment Plans & Execution of Judgments
- Large Verdict for Condo Owners After Harassment by Board and Contractors
- Collecting Through Small Claims Court
- WHAT TO DO ABOUT A BOARD MEMBER ACTING OUT – PART II
- Association Attorneys: Who Do We Represent?
- Our Clients Ask Us: Fee Responsibility at Sheriff's Sale
- MAINTAINING CONTROL: TO REACT OR NOT TO REACT
- WHAT TO DO ABOUT A BOARD MEMBER ACTING OUT – PART I
- 2012 Campaign Signs
- Our Clients Ask Us: Common Area Real Estate Taxes
- THE MOST WONDERFUL TIME OF THE YEAR
- Chapter 5312: What it Means for Your HOA: Part VII
- Let it Snow: Tips for Snowplow Season
- Protect Your Association From Fraud
- Our Clients Ask Us:Back-Billing Legal Fees for Collection
- Trick-or-Treat: Guidelines for Associations
- Natural Disasters and Fires: What the Board Needs to Keep in Mind
- Community Association Delinquencies Nationwide
- Our Clients Ask Us: Settlements
- TRACY REED SENTENCED TO 7 YEARS IN PRISON
- Tips for Minimizing Legal Fees and Costs
- Chapter 5312: What it Means for Your HOA (Part VI)
- Suspension of Privileges: When Does it Go Too Far?
- Association Investment Tips
- FHA Approval Process for Single Family Housing (Follow-up)
- Our Clients Ask Us: Conservation Areas
- ByLaws/Code of Regulations Reminder
- Kathleen DeSalvo to be Released From Prison
- Chapter 5312: What it Means for Your HOA (Part V)
- Tips for a Smooth Board Member Transition
- Appeals Court finds in Favor of Association on ARB Non-Compliance
- Our Clients Ask Us: Flooding on Common Areas
- 2011 Board of Revisions Complaints
- Chapter 5312: What it Means for Your HOA (Part IVI)
- FHA Approval Process for Single Family Housing
- Our Clients Ask Us: Budget/Division of Expenses
- Payment of Association Fees: To PayPal, or Not to PayPal?
- Radon Action Month
- Chapter 5312: What it Means for Your HOA (Part III)
- Our Clients Ask Us: Property Manager's Report of Complaints to Board
- 2010 Energy Tax Credit: You Can Still Take Advantage
- The Mystery of Post-Sheriff's Sale Collection
- Overcoming Challenges to Board Action
- Chapter 5312: What it Means for Your Association (Part II)
- NO Board Members? What Happens to Your Association Next?
- Our Clients Ask Us: Quorom
- Constitutional Challenge to "No Defense to Non-Payment" Section of Code
- Excuse Me . . . What New Contractor?
- Ohio Case Law Update: Amending Governing Documents
- Chapter 5312: What is Means for Your Association (Part I)
- Member Lists: How to Properly Provide Information Requested
- Our Clients Ask Us: Stealing Association Utilities
- So the Board Wants to Amend the Documents, Now What?
- Top 10 Lessons Learned from MultiVest
- Ohio Planned Community Act: The Basics
- Ohio Planned Community Act Signed into Law
- To Self-Manage or Not to Self-Manage
- Our Clients Ask Us: Ignoring Member Complaints
- Ohio Case Law Update
- Discrimination Avoidance on Issues of Familial Status
- Helping Owners Understand the Necessity of Reserves
- Owner Grievances and Withholding Maintenance Fees
- Our Clients Ask Us: Owners Who Walk Away
- Change in the Economic Climate and Corresponding Change in Rental Restrictions
- Pet Restrictions: What is Considered Livestock?
- Inspections of Association Property and Liability Concerns
- Improper Rule or Regulation Pitfall
- The Right to Dry: The Next Attack on Association Regulations
- Our Clients Ask Us: Fence Installation
- Federal Red Flags Rule Update: Change in Effective Date
- Qualification for FHA Availibility
- Position as an Officer- What Does it Really Mean?
- Our Clients Ask Us: Leasing Units to Family Members
- Florida Association Driven to Bankruptcy
- Fair Housing: What Board Members Need to Know
- Methods for Keeping the Peace- Part V
- Overrun by Renters!
- Our Clients Ask Us: Length of Foreclosure Process
- Exclusive Contracts Banned by FCC
- The Crisis Continues- Impact on New Condominiums
- Methods for Keeping the Peace- Part IV
- Federal Red Flags Rule: Does it apply to Community Associations?
- Here Kitty, Kitty: Whose Cat is That?
- Our Clients Ask Us: Repair Reimbursement
- Victory for Association's Architectural Restrictions
- Curfews in Associations
- Methods for Keeping the Peace-- Part III
- The Beginning of a New Era: Developer Foreclosures and Builder Foreclosures
- Federal Programs to Aide Homeowners
- Our Clients Ask Us: Tenants on Board?
- Volatile Enforcement Hearings
- Declaration and Bylaws vs. Rules and Regulations-- What's What
- Methods for Keeping the Peace- Part II
- Accepting an Assessment Increase
- What Happens When a Member Files for Bankruptcy
- EXCLUSIVE USE AREA REPAIR-WHOSE PROBLEM IS IT?
- Our Clients Ask Us: Additions
- Methods for Keeping the Peace (1)
- Proper Use of Reserve Funding
- Recent Ohio Court Ruling: Arbitration Procedures
- Our Clients Ask Us: Partial Payments
- Our Clients Ask Us- Maintenance/ Service Contracts
- Coping with Budgetary Challenges
- National Trends in Budget Management
- New Requirement for Fannie Mae Backed Loans
- Suspension of Privileges in Response to Non-Payment
- Our Clients Ask Us: Keys to Units
- Assisting Elderly Association Members
- From Community Newsletter to Defamation Lawsuit
- Superlien Legislation: Is Ohio Next?
- Our Clients Ask Us- Fuel Surcharges
- Are You Covered? D & O Insurance Explained
- Denial of Architectural Requests: Avoiding Litigation
- HR Act 3221: The Housing & Economic Recovery Act of 2008 (HOPE Fund)
- Our Clients Ask Us- Association Members Feeding Wildlife
- Our Clients Ask Us- Association Picnic/Party
- Smoking Bans- Can They Apply to a Unit?
- Our Clients Ask Us- Satellite Dishes
- Our Clients Ask Us- Open Board Meetings
- Our Clients Ask Us- Delinquent Members
- Our Clients Ask Us- Water Damage
- Our Clients Ask Us- Association Pools
- Strategies for Reduction of Legal Costs
- Smart E-mails: Avoiding Use of the Technology
- Effect of New Underwriting Guidelines for Home Loans
- The Business Judgment Rule: Protecting Board Decisions
- Smoking Bans- Can They Apply to a Unit?
- When is Patriotism Allowed? Displaying the American Flag
- Association Attorneys: The Mystery of Who We Represent
- Discussion of Association Issues Over E-mail
- Protecting Association Assets
- Developing a "Community" Through Fostering Relationships
- Defacing Common Elements: Catching a Graffiti Artist
- Prison Time for Kathleen DeSalvo
- Pet Restrictions
- Guidelines for Selecting a Reserve Professional
- Going Green: Making the Association Earth-Friendly
- Pool Safety Receives Congressional Attention
- Corporate Ownership of Units in the Community
- Rule Enforcement: Is Some Discretion Allowed?
- Political Signs: Free Speech or Rule Violation?
- The Mortgage Crisis: Foreclosure Rates Affect Associations
- Tax Relief For Common Elements
- Representing The Condominium Purchaser
- Practical Pointers In Ohio Condominium Law
- Condominium Loans
- Legal Audit Checklist
- Condominium Insurance Seminar
- Handling Condominium Disputes
- Condominium Defects
- Analysis Of Ohio's Condominium Act Amendments
- Ban on Exclusive Cable Deals by the FCC
- Legislator: Bill would provide Ohio condo associations with more financial flexibility (from The Daily Reporter, Columbus, OH)
- MultiVest Clients Look to Rebound, Recover Money- Cleveland.com- 3/2/07
- Ohio Island Homeowners Association Snarled in Legal Fights- ABC 13 Toledo- 10/2/06
- Johnson Island Toll Halted- Toledo Blade- 6/8/06
Ohio Planned Community Act Signed into Law
Ohio Planned Community Act Signed into Law
OHIO REVISED CODE-CHAPTER 5312
Planned Community Act
Senate Bill 187 was passed by the Ohio’s Congress and signed into law by the Governor. The law became effective September 10, 2010. As a result of this bill, planned communities (other than condominiums) in Ohio will be governed by a new Chapter 5312 of the Ohio Revised Code.
Application to Existing Associations:
The law is not intended to be retroactive. What this will mean for existing associations is that your existing governing documents will continue to apply and will control. If there is a conflict between a provision in your documents and the statute, your document provisions will still apply. If your governing documents are silent on an issue covered by the statute, then the provisions of the statute will apply.
The statute requires that any person or developer establishing a new planned community must file a declaration and bylaws providing for the operation of the planned community with the county recorder. New associations must abide by the provisions of the statute.
Administration of Association:
The association will be administered or run by a board of directors that have specific duties and powers as provided for by the statute. The association must be organized as a non-profit corporation under the laws of the State of Ohio. Meetings of the board of directors will be open only to directors. No owner, other than the directors, may attend or participate in discussion or deliberation of a meeting unless the board expressly authorizes that owner to attend or participate.
The owners association is comprised of owners of lots in the community and the board is elected from the owners and their spouses. If an owner is not an individual, then any principal, member of a limited liability company, partner, director, officer, trustee or employee of the owner may be elected to the board. The association will be required to carry property insurance on common elements, liability insurance, and directors & officers coverage.
Unless otherwise provided, the documents can be amended by a 75% vote of the owners in writing or at a meeting for that purpose.
Any dissolution of the association will require a unanimous consent of all owners holding an interest in the association.
The association will be required to maintain adequate books and records of accounts, minutes, collection records, expense records, and names and addresses of owners. Those records must be available for review by owners.
The association is responsible for reasonable maintenance, repair and replacement of common elements unless otherwise provided by the documents.
The board must adopt a budget on an annual basis for revenues and expenditures. The budget shall include reserves in an amount adequate to repair and replace major capital items in the normal course of operations without the necessity of special assessments, unless the owners, exercising not less than a majority of the voting power of the association, waive the reserve requirement on an annual basis.
Assignment or Conveyance of Assessments or Interests:
The new statute will prohibit the association from assigning the right to assessments or future income from assessments or conveying a security interest in any portion of the common elements unless the declaration specifically allows it or 75% of the owners agree (or whatever percentage required in the declaration). Conveyance of any fee interest in a limited common element or a security interest in a limited common element requires approval of all owners of the lots to which those limited common elements are allocated. Any proceeds of a conveyance are assets of the association.
Rules Regarding Board of Director Meetings, Common Expenses, and Assessments:
- Officers must be elected from among the board members.
- The board can appoint a member to fill a board vacancy for the unexpired portion of a term.
- The association must have an owners meeting at least once a year.
- A special meeting can be called by 50% of the voting power of the association, or lower if the documents specifically allow.
- In lieu of a board meeting, the board can take action with unanimous written consent that is filed with the minutes of the meeting.
- The board can have telephonic or electronic meetings as long as each member can hear or read in real time and participate and respond to every other member.
- No discrimination is permitted.
- The association, through the board, has the authority to:
- Hire and fire a property manager, attorneys, accountants and other professionals.
- Commence, defend, intervene in, settle or compromise any action in the name of or threatened against the association, the board or the property involving two or more owners and relating to matters affecting the property.
- Enter into contracts and incur liabilities relating to property operation.
- Enforce the provisions of the governing documents.
- Adopt and enforce rules for maintenance, repair, replacement and modification of common elements.
- Acquire, encumber, convey or transfer real or personal property subject to the provisions herein.
- Hold title to property.
- Grant easements, leases, licenses, and concessions through or over the common elements.
- Collect fees or charges for use, rental or operation of common elements.
- Levy late fees, returned check charges, enforcement assessments and for damages to the property.
- Adopt rules regarding collection of assessments and the application of payment of assessments.
- Suspend voting and use of recreational facilities.
Assessments and Collections:
If the declaration limits the amount of assessments that can be charged, the board cannot increase the assessment or fee without a 75% vote. If the declaration does not provide for division of assessments, then it shall be divided among all owners equally.
Owners can be charged for enforcement assessments and assessments for utility services and expenses the board incurs in collecting those assessments. Owners can also be assessed for damage to common elements due to willful or negligent acts including attorneys’ fees and court costs. Any of the costs associated with enforcement of the governing documents are assessable to the owner.
Payments of assessments are to be credited in the following order:
- Late fees or enforcement assessments
- Collection costs, attorney fees
The association has a statutory lien for assessments that includes interest, collection costs, attorney and paralegal fees. Any lien filed with the county recorder’s office must be signed by the board or other designated representative. Liens are continuing in nature and are subject to automatic adjustments to reflect additional assessments on the property. The association may also appoint a receiver on the property to collect the rents, if any.
In any action relating to a property in the association, the association will be required to be named as a party to the action. This will require all banks and mortgage companies to name the association in all foreclosure actions on the property. It will not be a defense to non-payment in a foreclosure action that the association failed to provide an owner with any service, goods, work, or that the board failed in any other duty.
In enforcing the governing documents, the board will be required to provide due process prior to issuing an enforcement assessment. Prior to an assessment, the board must issue a notice to the lot owner. The notice must include: a description of the property damage or violation; the amount of the proposed assessment; a statement that the owner has a right to a hearing before the Board to contest the assessment; the procedure to request the hearing; and, a reasonable cure date to avoid the assessment.
To request a hearing an owner must give the Board written notice within ten (10) days of receipt of the notice. Failure to make the request will result in the hearing being waived and will allow the board to immediately impose the assessment. If properly requested, the board shall set the hearing and the time, date and location of the hearing shall be provided to the owner by written notice no later than seven (7) days before the hearing date. No assessments will be permitted prior to the hearing being held, if one has been requested. Once the hearing is held, the board must issue a written notice of the charge or assessment imposed as a result of the hearing.
Rights and Responsibilities of Planned Community Lot Owners:
Owners are permitted to examine and copy the books and records pursuant to reasonable standards including, time, location, and reasonable fees for copying. No owner will be permitted to view personnel records, communications with the attorney(s) regarding litigation, confidential information, transactions currently under negotiation, enforcement information or other information state and federal law prohibits disclosure of.
An owner may file an action for discharge of a lien they feel is improper. If it is found that the lien was improper, the lien shall be discharged and the court is permitted to award the owner his or her attorney fees if the court feels it is appropriate.
All owners, tenants, residents, and other persons lawfully in possession must abide by the governing documents and rules of the association. Failure to do so is grounds for the association, or any owner, to file a civil action for damages, injunctive relief, or both and the court may award court costs and reasonable attorney fees in both types of actions.
Maintenance and Repair:
The association is responsible for reasonable maintenance, repair and replacement of common elements. Each owner is responsible for maintenance, repair and replacement of their lot and improvements to said lot, including the dwelling unit and utility lines serving that unit.
Owners must provide association agents, employees and/or contractors access through their lot and dwelling so that the association can fulfill its duties and obligations. Any damage to common elements, lot, or dwelling because of the access is the responsibility of the owner that caused the damage or the association if it is responsible for the damage. Each is liable for prompt repair of any damage and, if it is irreparable, then for the value of the damaged property or item as it existed immediately prior to the damage.
For the full text of the bill, please visit: http://www.legislature.state.oh.us/bills.cfm?ID=128_SB_187