2009-09-01 LEGISLATIVE CHANGES AFFECT VACANT AND ABANDONED PROPERTIES AND PERMIT HOMEOWNERS TO POSTPONE FORECLOSURE SALESNancy T. Polomis, Esq. Another legislative session has come to a close. Although overshadowed by budget disputes, budget cuts and unallotments, there were a few changes to laws affecting foreclosure of mortgage and association liens and vacant properties. Most changes affect the mechanics of the foreclosure procedures, but a few changes were clearly aimed at addressing the growing number of foreclosures and the problems related to vacant properties. Homeowners May Now Postpone ...
2008-07-10 FORECLOSURE'S EFFECT ON MASTER INSURANCENearly every association is well aware of the impact mortgage foreclosures are having on the association's cash flow. Mortgage foreclosures and vacant properties can also have a less obvious -- but potentially more catastrophic -- impact on the association's insurance coverage. Most master policies purchased by associations have provisions that require maintaining heat in each home, and an exclusion from coverage where damage is the result of a failure to maintain heat in the home. With...
2008-07-03 LEGISLATIVE UPDATEDuring the last legislative session, the Minnesota legislature passed several bills affecting community associations. This article contains a summary of the major legislative changes affecting community associations. Complete copies of any of the bills mentioned here can be found at the website for the Minnesota Office of the Revisor of Statutes: www.revisor.leg.state.mn.us. Foreclosure Amendments During this past session, the Minnesota legislature has reviewed many of...
2007-06-15 ASSOCIATION COLLECTION OPTIONS IN THE FACE OF A CHANGING MARKETAssociations generally have two options when it comes to collecting unpaid assessments: suing the owner personally and seeking to collect on a judgment for the unpaid amounts, or foreclosing the association's lien. In a strong real estate market, foreclosing the lien is almost automatic. In this changing marketplace, however, an association's board of directors needs to re-evaluate its collections practices to ensure the board is both honoring its fiduciary duty to the association to collect unpaid...
2007-05-11 IMPACT OF RECENT FORECLOSURE OPINIONOn March 20, 2007, the Minnesota Court of Appeals issued an opinion that could have significant impact on associations' foreclosure of assessment liens. In the case, entitled, In the Matter of the Petition of Option One Mortgage Corporation Regarding Certificate of Title No. 1110609 (A06-764), the Court of Appeals ruled that, because the townhouse association's declaration was ambiguous as to the allowable methods of foreclosure, the foreclosure of its lien was fatally flawed. Prior...
2003-06-11 Did you know that Owner Bankruptcy Filings Do Not Discharge Association Assessments or Pre-Petition Liens?Many associations mistakenly believe that unit assessments are fully discharged when an owner files for bankruptcy protection. Pursuant to Section 523 (a) (16) of the U.S. Bankruptcy Code (cited as 11 U.S.C. 523 (a) (16)), association assessments are not discharged in bankruptcy. The foregoing section states that the bankruptcy discharge “does not discharge an individual debtor from any debt for a fee or assessment that becomes due and payable after the order for relief to a membership association...
2003-02-11 Nonprofit Corporation Registration RequirementsLEGISLATIVE ALERT: NONPROFIT CORPORATION REGISTRATION REQUIREMENTS COMMUNITY ASSOCATIONS MUST REGISTER WITH THE MINNESOTA SECRETARY OF STATE, OR ELSE… CAI Spring Conference 1997 Overview of Corporate Status. Incorporated Associations Almost all community associations are nonprofit corporations and subject to governance under Minnesota Statutes Chapter 317A, known as the Minnesota Nonprofit Corporation Act (the “Act”). Unincorporated...
2003-02-01 Summary of MCIOA Opt-in Advantages Opting-in to the Minnesota Common Interest Ownership ActSummary of MCIOA Opt-in Advantages Opting-in to the Minnesota Common Interest Ownership Act The following is a brief outline of the advantages and disadvantages for townhome associations opting-in to the Minnesota Common Interest Ownership Act (“MCIOA”). MCIOA became effective on June 1, 1994, but with respect to townhome developments it applies only to those which were originally constructed on or after that date. Thus, in order to become governed by the statute, the Association...
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