(Continued from page 17)


contrarytoexisngcolleconlaws,which requireaccuratedisclosureofthe amountssought.SB1302wouldthushave preventedassociaonsfromrecovering aorneys’fees,andasaresult,impacted itsabilitytofunconnancially.The addionoffurtherlimitaonsuponan associaon'sabilitytocollectassessments isalsocontrarytomostgoverning documentsandexisngprovisionsofthe Act. 


Byeducangthelegislatureofthe negave,albeitunintended,impact adoponofSB1302wouldhavehadon associaons,membersoftheLAC successfullynegoatedremovalofall objeconableprovisions.Thisprocessalso providedaforumfortheLACtoworkwith SenatorFolmer’sstaonrevisionsto permitvongbyelectronicmeans,the onlyporonofSB1302responsivetoits originalintent–fosteringunitowner parcipaon.CAI’sresponsetoSB1302 illustratestheconnuedneedtomonitor legislaveacvity.Fortunately,withthe helpofitslobbyist,theLAChas establisheditselfasarecognizedleaderon associaonlawtopics.CAI’sposionon associaonrelevantlegislaonisthus signicant. 


Asstatedabove,LACaccomplishments werenotalldefensive.OnJune9,2014, theUnitedStatesCourtofAppealsforthe 3rdCircuit,inabankruptcymaertledIn reKellyL.Makowka,heldthatthelienfor assessmentscreatedbySecon5315of theAct,canonlybepreservedforstatute oflimitaonpurposes,byaninrem foreclosureacon.Thisessenallymeans thatunlessassociaonsleforeclosure aconswithinthreeyearsofa delinquency,thelienforassessmentsis exnguished.Makowkaheldthatmoney judgmentsuitsdonotpreservethelien. Asaresult,associaonswillberequired toresorttomuchmoredrasc, aggressive,andexpensiveforeclosure proceedingstoassureconnuednancial viability.Obviously,thiswillmake colleconacvitysubstanallymore expensiveandinecient,andwillprevent associaonsfromresorngtolessdrasc andappropriateenforcementmethods.


20 | 


Makowkaignoresdecadesofpracce,and wouldturnsmallcolleconcasesinto majorforeclosureacons.Associaons mustconnuetohavetheabilitytoavail themselvesoftheappropriatecollecon method.TheLAChasproposedlegislaon tocorrecttheresultreachedbyMakowka throughsimpleamendmentstoSecons 3315oftheUCAand5315oftheUPCA. Theseamendmentswillpreservethe abilityofassociaonstocollect assessmentsthroughmoneyjudgment acons. 


Condominiumandhomeowner associaonsrelysolelyonunitowner assessmentstofundvariousobligaons imposedbytheirgoverningdocuments.In mostcases,theseobligaonsentailnot onlyunitmaintenancesuchasroofsand siding,butalsoinfrastructurecomponents includingroads,stormwatermanagement andulitysystems.Fordecades, associaonshavepaidforthesemunicipal servicestwice–oncethroughmonthly assessmentsandagainthroughproperty taxes.Curingthisfundamentalfairness issueisthegoalofHouseBill551(2013), whichwouldpermitunitownerstodeduct aporonoftheirassociaonassessments ontheirpersonalincometaxes.However, thescalimpactofHB551couldnotbe studiedwithoutanaccurateinventoryof associaonsintheCommonwealth. AemptsbytheJointStateGovernment Commission(JSGC)togatherthisdata failedmiserably,andevidencedan absolutelackofinformaonon associaonswithinPennsylvania.Whileit isesmatedthat3millionPennsylvanians resideinanassociaon,theactual numberandlocaonofthese communiesis,withrareexcepon, unknown.Therefore,inordertogather verybasicinformaononname,locaon andsizeofallassociaons,theLAChas proposedamendmentstothe PennsylvaniaMunicipaliesPlanningCode toimplementthissimplereporng requirement.AlthoughCAIhas demonstratedthatthisdataiseasily harvestedfromexisngelectronic assessmentrecords,municipallobbying groupshavemountedopposion. Legislatorshavenonethelessexpressedan interestinsponsoringabill. 


Fairnessintheprovisionofgovernmental servicesisnotlimitedtotrashand infrastructure.PursuanttoPennsylvania law,allamendmentstoadeclaraonmust berecorded.Unfortunately,whathas historicallybeenanadministraveactat minimalexpensehasbecomealarge nancialburden.Anumberofcounes haveimplementedarequirementtoindex amendmentsagainsteachindividualunit parcelnumber.And,forindexing amendmentsagainsteachparcelnumber, thesecouneshaveadopteda“per parcel”fee.InMontgomeryCounty,for example,thefeeis$10.00perparcel. Accordingly,anamendmenttoa250unit Associaonwillcost,ataminimum, $2,500.00.Othercounesinthe Commonwealthhaveadoptedsimilarfees, andfurtherincreasesto$15or$20per parcelhavebeenproposed.Suchfeesare notonlyabsurdlyhigh,theybearno relaontotheworkrequiredtorecord documents.Moreover,asrecordingisa legalrequirement,suchfeescouldprevent associaonsfromcomplyingwithlaw.The LACiscurrentlyworkingonlegislaonto bringlingfeesdowntoreasonablelevels, andtopreventcounesfromimposing theseexorbitantcharges. 


Anotherissuewhichwasbroughttothe LAC’saenonthisyearbyseveral Poconoareacommunityassociaonsis changestoregulaonspertainingto privatedams.Manyassociaonswith lakes,includingalargenumberinthe Poconos,havedamsforwhichtheyare responsible.TheStateDepartmentof EnvironmentalProtecon(DEP),without muchnocetoaectedcommunies, madesubstanalchangestoChapter105 oftheStateCodedealingwithDamSafety andWaterways.Thesechangesand accompanyingfeeschedulesnowrequire anAnnualDamRegistraonfeeof$800 andtheposngofbondsforeachdam cosnginmanycasesinthetensof thousandsofdollars.Failuretocomplycan resultinDEPenforcementprocedures whichcarryseverepenales.CAIishaving construcveconversaonswithPoconos arealegislatorsonwaystoreducethe nancialburdenofthesenewregulaons. 


 (Connued on page 35)


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40