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News/Blog

News/Blog

February 8, 2015

John Morris testified before the Senate Business and Labor committee last week regarding new HOA laws in Utah. HB 99 will require condominium, townhome, HOA, PUD, and homeowner associtaions to all open their board of directors', management committee', or board of trustees' meetings to owners. John Morris answered questions about the law and addressed concerns of Senators that the law does not go far enough in protecting the rights of owners to attend board member meetings. John explained that the law is a first step and that the industry does not want to create to much of a burden on managers or associations, while nonetheless preserving the right of an owenr to attend board meetings. John continues his work on good laws in Utah on the Community Association Insitute (CAI) Utah Legislative Action committee. House Bill 99 is sponsored by representative Mike Shultz in District 12. HB 99 originated in the local Utah Chapter and was the product of almost three years of discussion among managers, owners in HOAs, board members, HOA attorneys, and other industry vendors and participants.   

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February 5, 2015

Leon Benzer pleaded guilty Friday January 16, 2015, in a massive scheme to take over and defraud several homeowners association in the Las Vegas area.

Benzer, a former construction company boss and who prosecutors say is the mastermind behind the scheme, entered a total of 19 guilty pleas, which include conspiracy, fraud, and tax evasion in two separate federal indictments.

In his plea agreement with prosecutors, Benzer provides an explanation of his role in the multi-million dollar scheme. But his agreement does not include testifying against the remaining defendants charged in the HOA conspiracy. Prosecutors allege that this occurred at 11 HOAs across Las Vegas valley between 2003 and 2009.

Prosecutors are recommending that Benzer’s prison time be reduced because of his acceptance of responsibility for his crimes. However, Justice Department lawyer Charles La Bella said prison time will be left to Mahan and his assessment of the federal sentencing guidelines.

Benzer, who once owned Silver Lining Construction Company, and 10 other people were indicted in the scheme in January 2013. These charges relate to more than $7 million that Benzer and his company obtained through fraudulent contracts with the Vistana condominium development to do construction defect work.

The investigation that led to the indictments is thought to be the largest public corruption case federal authorities have brought to Southern Nevada. In all, 36 defendants have pleaded guilty since August 2011. Most are cooperating and waiting to be sentenced after the trial.

Prosecutors are seeking almost $25 million in restitution for the HOAs and lending institutions that were defrauded in the takeover scheme.

Benzer’s goal was to gain control of the HOA boards and steer construction defect litgation contracts to Quon’s (former construction defect lawyer) law office. Quon, now deceased, was to give Benzer 10% of any defect judgments she won. Benzer would also obtain construction defect repair contracts from the corrupted HOA boards.

According to prosecutors, Benzer, Quon and others are to believed to have funneled more than $8 million through secret bank accounts to help them land the contracts.

In his plea agreement, Benzer admits he had the scheme covered from all angles, including setting up buyers to infiltrate HOA communities and get elected to their boards.

Members that were loyal to Benzer were elected through ballot stuffing, bribery and other tricks. Attorneys on Benzer’s payroll were hired to provide legal advice to the boards and oversee the election rigging, putting the Benzer-friendly community management firms in place.

The conspirators gained control of half of the HOA boards and were working on the others until authorities broke up the scheme in 2008 with raids across the valley.

To read the full article, click here.

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February 4, 2015

House Bill 98 (HB 98) just passed the house and has been refered to the Utah Senate for Consideration.  HB 98 contains some compromise legislation on landlord/HOA issues and also contains a substantial revision to the HOA fine laws for both condominiums and for homeowners associations governed by the Community Association Act. These provisions allow commercial condominium associations to assess fines for the first time in Utah. Morris Sperry will be ready to help with updates to Rules and CC&Rs to facilitate this new opportunity. The new fine changes also clarify continuing verses repeated violations, the content of warning and fine letters, the procedures related to the issuance of fines and warnings, and the right of board members and owners to attend fine hearings remotely. These fine changes are good for associations and owners. Morris Sperry attorney John Morris is proud to be part of the Utah CAI Legislative Action Committee that worked on this bill and to be one of the primary drafters of the fine law changes in this bill. Morris Sperry remains committed to this volunteer effort and to keeping at the forefront of changes in community association law so that their HOA, townhome, homeowners association, condominium, and PUD clients receive legal advice that is timely and accurate.     

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January 30, 2015

Will drones be used by an HOA for enforcement of covenants and common area inspections?  Will drones be used by third parties for the delivery of pizzas, delivery of prescription medications, taking photoragraphs for real estate listings, and other uses in a condominium association?  Will drones "land" in an HOA? Will we need "drone ports"? Is vaping or use of E-cigarettes "smoking" or covered in no smoking policies? Should they be? Are there secondary risks from these devices? Is medical use of Marijuana a problem for community associations in Utah? Will the use of Google Glass, Microsoft Hololense and similar "eyeglasses" that can photgraph or video surepticiously exacerbate the already difficult issue of recording annual meetings and board meetings?

Morris Sperry attorneys are attending seminars and talking about these issues at the National HOA law seminar this week in San Francisco California.This is part of the ongoing effort by Morris Sperry lawyers to stay ahead of these cutting edge issues in the drafting and enforcement of governing documents. 

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January 29, 2015

Continuing their dedication to keeping ahead of the industry on important legal issues, five Morris Sperry lawyers are attending the CAI national law seminar in San Francisco California. Once again, Morris Sperry sends more Utah lawyers to the law seminar than any other firm in the state. The only Morris Sperry lawyer not attending has the one great excuse nobody could argue with - a new baby born two days ago!

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January 29, 2015

Two new hoa laws, HB 98 Association Amendments and HB 99 Open meetings, passed through House Business and Labor Committee by unanimous vote of the committee members and HB 99 just passed the house and is on the way to Senate. John Morris of Morris Sperry was involved in the drafting of both bills. HB 99 will guarantee owner access and the right to notice of regular meetings of the board of directors and management committees in condominium and homeowners associations in Utah. HB 98 contains long negotiated changes to further balance the relationship between HOAs and owners who rent their units and homes. Utah HB 98 also contains new provisions clarifying HOA fine provisions and changes that will finally allow commercial condominiums to fine owners rather than have to initiate lawsuits in every enforcement action. Morris Sperry is at the frontline in the drafting and passage of balanced laws affecting community assocaitions. 

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January 27, 2015

In 2014 sixty-four Representatives co-sponsored legislation that would have required HOAs to "reasonably accomodate" HAM radio towers and antennas. The legislation did not pass, but the HAM radio industry is back attempting the same legislation in 2015.

SEND AN EMAIL OR LETTER TO YOUR FEDERAL REPRESENTATIVE AND SENATOR TELLING HIM OR HER THAT YOUR OWNERS SHOULD DECIDE WHETHER OR NOT HAM RADIO TOWERS ARE ALLOWED IN YOUR HOA, NOT THE FEDERAL GOVERNMENT.

ASK THEM TO OPPOSE LEGISLATION REQUIRING HOMEOWNERS ASSOCIATIONS TO PERMIT HAM RADIO TOWERS IN THEIR COMMUNITY.  

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January 16, 2015

Morris Sperry's board member training seminar was a huge success. After filling up the first night, the seminar was extended to a second night that quickly filled up. Many of the attendees commented on the valuable information they received during the seminar. Topics such as doing business by email, the attorney client privilege, board member legal duties, how to select an insurance agent, and many others were packed into what turned into a two-hour seminar. The lawyers at Morris Sperry look forward to future seminars and continuing the strong relationship they are building with both their board member clients and the community. 

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January 13, 2015

John Morris appeared on ABC Channel 4 Utah this morning to talk about Morris Sperry's seminars in Park City. See the story at this link. Morris Sperry's board member seminar filled up quickly and they added a second day to satisfy the demand. Morris Sperry continues its efforts to educate HOA board members and plans on future seminars for board members. 

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January 13, 2015

John Morris and Quinn Sperry were chosen by their peers as members of Utah Business Magazine's 2015 Utah Legal Elite. Legal Elite honorees are selected by their peers in a statewide balloting process. Members of the Utah Bar were invited to participate by submitting a ballot of Utah lawyers they hold in the highest regard--lawyers they have observed firsthand and would recommend to others.

 

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May 30, 2013

In a very interactive session, several managers from Advanced Community Services participated in training with the attorneys at Morris Sperry. As usual, the lively discussion was helpful for everyone involved and reflects both ACS's and Morris Sperry's dedication to quality HOA management through intensive training. Anyone looking for a good HOA manager or a good HOA lawyer should start by looking at those people who dedicate serious time to sharpening their skills and expanding their knowledge. Morris Sperry and the managers they provide training to demonstrate that commitment.

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May 15, 2013

Several managers and assistant managers from FCS Community Services were treated to two hours of training on community association rules by the attorneys at Morris Sperry. The interaction and discussion was helpful for everyone. A second session is planned in the future to discuss in further detail various issues that arise in the drafting and interpretation of rules.

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May 7, 2013

In December, 2012, a lawsuit was brought against a Condominium Association and client of Morris Sperry. The plaintiff claimed over $700,000 in damages. The Morris Sperry team, working aggressively in defense of the lawsuit, prevailed on summary judgment in a hearing before Judge Andrew Stone on May 6, 2013. The judge ruled in favor of Morris Sperry's client based on theories advocated and advanced in a cross-motion for summary judgment brought early in the case. This brought a prompt end to a lawsuit brought against a Morris Sperry client.

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May 7, 2013

In a never ending committment to advancing their skills, John Morris and Quinn Sperry completed the 40-hour course required to become court approved mediators. This advanced training in mediation and the extraordinary dedication of time and effort is just one more clear demonstration of the commitement of the Morris Sperry attorneys to unparalled service to their clients. Not only are the attorneys at Morris Sperry excellent litigatators, they do an excellent job of keeping their clients out of litigation whenever possible. The Morris Sperry team is commited to resolving their clients' disputes as economically and efficiently as possible.

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May 5, 2013

John Morris was appointed to the Board of the local chapter of the Community Association Institute. He will serve in that capacity completing a two-year term. This is a further demonstration of Morris Sperry's commitment to the industry and to all homeowners, board members, and industry partners who rely on and look to the local chapter for education and standards. John is excited to begin work as a new member of the board and looks forward to helping and supporting an already great team.

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May 1, 2013

With the additional new staff at Morris Sperry, Quinn has been focusing extra effort and time on the HOA and community association assessment collections. Morris Sperry's advanced collection software allows both managers and board members immediate access to up-to-date account information via the web, anytime and anyplace. Morris Sperry's flexible collections program works with PUDs, Townhomes, Condominiums, HOAs, and every other type of homeowners association.

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April 17, 2013

In a packed house at the Alta Club, John Morris gave an update to Utah attorneys on recent legislation and case law in the area of community association law. The lunch was excellent and the real property section leaders did a great job organizing the event. In a little over an hour, John covered the three most important bills affecting community associations in the 2013 legislative session, HB 101, SB 64, and SB 90. He also discussed and summarized several community association appellate law cases decided in the last year, including one of his own cases. Having participated in the drafting and legislative process of the bills, John added rare insight and perspective, including the history behind the bills and what to potentially expect in the future.

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April 13, 2013

John Morris attended the CAI legislative update. The board members in attendance had a great chance to talk directly to vendors in the industry and were presented with a good explanation of the Community Association legislation that passed in the 2013 session. John Morris helped present along with other members of the CAI Legislative Action Committee. The facilities at Thanksgiving Point were wonderful.

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April 12, 2013

Morris Sperry is excited for the arrival of Sydney Allen as our new Administrative Assistant. She is in the process of completing her degree in Exercise and Sports Science at the University of Utah while simultaneously working on a paralegal certificate. She has a strong work history and brings a great personality and professional demeanor to the Morris Sperry team. We are confident that she will be a key person helping to ensure that our clients experience professionalism in all dealings with Morris Sperry.

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March 4, 2013

Quinn Sperry has written a comprehensive article explaining both the reasons behind amending and options for amending CC&Rs. Check out the article at: http://uccai.net/blog-post/legal/amending-ccrs/

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September 25, 2013

The topic of "open meetings" was discussed at another successful CAI leadership Luncheon. In a very lively discussion moderated by John Morris of Morris Sperry, opponents and proponents of open meeting legislation had a chance to express their thoughts. The discussion explored many aspects of the proposed legislation including notice to owners, the burden on management companies, the value of open meetings, and the mechanics of making it work in a way that avoids litigation. Open meetings continues to be a difficult topic that requires the careful balance of competing interests.

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August 23, 2013

In a previous news story, Morris Sperry reported on an association that banned unmarried couples from moving into the association. That rule, passed in mid-July 2013, was recently abandoned by the association in the face of tremendous national publicity. The story also ignited a nationwide debate among HOA lawyers over the various claims that might be brought against the association and whether the rule addressed issues that should or should not be within the discretion of an association to regulate. This issue highlights how ongoing social and cultural changes in our society can directly impact community associations. It is frequently the case that rules and board actions in associations unknowingly violate the law and/or modern social norms. Well run associations with educated managers and HOA experienced legal counsel typically avoid these types of problems or at least make decisions knowing the risks.

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August 19, 2013

On August 13, 2013, the Justice Department announced that the Townhomes of Kings Lake HOA Inc. (HOA) and Vanguard Management Group Inc. have agreed to pay $150,000 to settle a lawsuit alleging violations of the Fair Housing Act (FHA). The lawsuit alleged that the HOA adopted and both defendants enforced occupancy limits that discriminated against families with children at the Townhomes of Kings Lake, a 249-townhome community in Gibsonton, Florida. Under the proposed consent decree, which must still be approved by the Court, the defendants will pay $45,000 to the family that initiated the original complaint filed with the U.S. Department of Housing and Urban Development (HUD), $85,000 into a victim fund to compensate other aggrieved families, and $20,000 to the United States as a civil penalty. In addition, the proposed consent decree prohibits the defendants from discriminating in the future against families with children and requires the defendants to receive training on the requirements of the FHA.

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August 14, 2013

In a new and unexpected twist, a Florida condominium has apparently adopted a declaration amendment or a rule banning anyone from moving into the association who is "living in sin." The ban allows couples of any gender and sexual orientation to move in, so long as they are married. But, if they are "a couple" and are not married, the association intends to restrict them from moving in. While we can certainly talk about the legal and moral issues arising out of this decision, a more important issue is clearly implicated. Should the owners or board members in a condominium association be regulating this type of behavior at all? One can only imagine the "investigation" that will ensue when the first couple attempts to purchase a unit and professes that they are merely roommates, not "living in sin." Should a board be in the business of investigating and verifying someone's sexual activity? Moreover, exactly how would they do that?

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July 15, 2013

Many people have watched the prosecution of George Zimmerman and the recent not guilty verdict. For Mr. Zimmerman's past neighbors, however, a much more intimate lawsuit was resolved in April 2013. George Zimmerman lived in a community association (HOA). After Mr. Zimmerman fatally shot Trayvon Martin, Trayvon's family filed a lawsuit against the HOA. Hopefully there was insurance coverage for the HOA, but either with our without insurance, a lawsuit against the HOA can be a very stressful process. The case was settled in a confidential settlement in April 2013 and we think it is safe to assume that some payment was made to Trayvon's family.

This incident highlights the serious legal issues involved in community associatoin neighborhood watch programs and with any sort of self policing of associations. Morris Sperry is pleased to post on our website a helpful overview of HOA neighborhood watch programs provided by Beat Koszinowski of the Buckner Company. Go to the Resources tab of this website and look under Articles for the Neighborhood Watch article. At a minimum, any community association considering a neighborhood watch program should talk both to their legal counsel and their insurance agent.

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July 2, 2013

In 2008, an owner in a 2000 single-family home association in Illinois was driving through the community at 34 miles per hour. The posted speed limit was twenty-five miles per hour. The HOA's private security officer pulled the owner over with flashing lights and issued him a fine. The Rules also provided that if the owner had not pulled over, he could have been fined an additional two hundred dollars. The owner fought back and challenged the stop in a lawsuit that ultimately made it to the Illinois Supreme Court. The Illinois Supreme Court held that the Association had the right to pass rules allowing for security personnel to stop owners, to use radar guns and flashing lights on vehicles, and to issue fines for exceeding speed limits. The Court's opinion can be viewed here.

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June 23, 2013

The latest in a never-ending stream of HOA embezzlement stories involves a management company accounts payable employee stealing $180,000 in condominium association funds. For over four years (2009-2013), the employee wrote checks to herself and cashed them at banks and stores. This story, along with all of the others we hear about, highlights the need for vigilance in reviewing financial statements for managers as well as board members. Serious consideration should be given to requiring board members to sign checks and for regular audits or reviews. Finally, it is always important to review the crime/dishonesty insurance policy and any fidelity bonds of any management company retained by the association. Morris Sperry is preparing training specifically on this topic and will be making that training available to board members and managers in the fall of 2013.

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June 17, 2013

In a very aggressive action, a Florida Condominium Association has prevailed in collecting $98,000 in assessments, late fees, and collection costs (in addition to attorney fees), from Federal National Mortgage Association (FNMA) after a bank foreclosure. The case is now on appeal and could take a year or more to get finally resolved. Look to Morris Sperry for cutting edge community association law news and services.

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June 3, 2013

The Federal Housing Administration (FHA) recently decided that a common provision in condominium declarations violates Section 513 of the National Housing Act. It is, therefore, refusing to provide FHA approval to condominium associations with this provision. Declarations commonly restrict short term occupancy (hotel and transient occupancy) of less than 30 days. Occasionally, you will also have an exception to this provision for lenders who take title through foreclosure. The FHA has targeted the lender exception and decided it violates Section 513. No condominium association with this exception will get or remain FHA approved and the FHA has flatly taken the position that any such exception must be amended out of the declaration to get or retain FHA approval. According to the Community Association Institute (CAI), associations around the country are being denied FHA approval based on this decision. CAI continues to lobby nationally to try to resolve this problem without amendments to declarations, but the FHA decision stands for now. If your condominium association wants become or remain FHA approved, Morris Sperry can quickly determine whether you have this provision and if you do, prepare an amendment allowing your condominium association to remain FHA approved. According to CAI, FHA has no intention of taking away FHA approvals already granted, but will strictly apply this decision in any future renewal or first-time application.

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April 2, 2013

On March 26, 2013, the Governor signed SB 90 and HB 101. On April 1, 2013 the Governor signed SB 64. All will shortly be the law on May 14, 2013 - except for the deferred provisions! Go to the Resources page of this website for information on which provisions are deferred and which are not.

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