Since assessments are fees for maintenance and use of utilities and not consumer debt, many association board members wonder if their communities are subject to the Fair Debt Collection Practices Act (FDCPA). Some may be surprised to learn most state and federal courts consider assessment to be “debts” according to this definition:
When board members find themselves faced with a conflict of interest, it can derail an entire association – that’s why it’s so important for board members to nip these types of problems in the bud before trouble begins.
News items of national interest regarding Condominium and Homeowner associations, compiled by the Community Associations Network
Here’s a recent Post and Courier article concerning Battery Gaillard, a West Ashley subdivision. Several doctors in the neighborhood formed an LLC and purchased a lot on which they intend to build a private swimming pool and tennis courts for their exclusive use. The lot is not adjacent to any of the doctors’ property, which brings up zoning and CC&Rs issues. Neighbors are also raising eyebrows at the commercial ownership of the lot. Both sides have engaged counsel for what may prove to be a very interesting lawsuit.
It is interesting to note that a South Carolina statute requires local planning agencies to inquire as to the existence of restrictive covenants before issuing a permit. S.C. Code Ann. § 6-29-1145.
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