Pre-1978 Constructed Buildings must NOW abide by New EPA Lead Paint Regulations

The EPA has issued new regulations for dealing with lead-based paint. The new law became effective April 22, 2010. The regulations apply to anyone who hires or is paid to renovate, repair, or disturb lead based paint. This specifically includes community board members, managers, painters, electricians, drywallers, and plumbers. Homeowners working on their own homes are not included. The regulations require that renovations involving lead based paint need to be performed by an EPA Certified Firm using Certified Renovators or employees training and supervised by a Certified Renovator.

The first step is to determine the age of your building. If the condominium or homeowner association was constructed post-1978, lead is not a concern. If the construction is pre-1978, the building should immediately be tested for lead based paint. All testing must be done by an EPA certified analysist. A certified analysist is able to ascertain if there is lead based paint and if so, whether it will be disturbed, and what precautions must be taken. Many projects on pre-1978 structures should NOT require any additional work beyond initial testing and a finding of no lead based paint.

If the testing does indeed reflect the existence of lead paint, lead-safe practices need to be followed. The regulations specify that the work must be done by a Certified Renovator or workers trained and supervised by a Certified Renovator. The regulations require specific notification requirements to residents, dust control, warning signs, specific clean up requirements and then more testing. Additionally, if lead based paint is present, practices like sanding, grinding, planning, needle gunning, blasting and other activities that create large amounts of dust are prohibited. After Completion of the project, the Certified Renovator must prepare and deliver test results to the owners and maintain records for 3 years.

Do not perform ANY construction, renovation, repairs, etc on any property that was constructed pre-1978 unless you have an EPA certified professional involved. Fines for doing so can be as high as $32,000 per day and the health concerns are even more significant.

A helpful brochure explaining this new law is available on the “Resources” page of the Kaman & Cusimano websites, www.ohiocondolaw.com or www.ohiohoalaw.com

Kaman & Cusimano Storms Capital!

In support of H.B. 408 - the "Super Lien," and S.B. 187 - the Ohio Planned Community Act, several staff members and lawyers from Kaman and Cusimano, LLC stormed the Ohio State House last week in support of these two essential pieces of community association legislation. Attorney Darcy Mehling Good met with numerous legislators on an individual basis and Attorney David w Kaman testified before the House's Civil and Commercial Law Committee. Attorneys Kaman and Good answered numerous questions in an attempt to try and garner as much support for both bills as possible.

While S.B. 187 enjoys bipartisan support in the House after it was passed 29-1 in the Senate, H.B. 408 still faces strong opposition from the banking lobby and many Republicans. As 15 other states have shown, however, supporting America's community associations through a "Super Lien" is a not and should not be a partisan issue. Therefore, if you have not yet done so, please express your support for H.B. 187 to your local State Representative, and urge him or her to vote yes! A copy of the sample letter is available on the Kaman & Cusimano, LLC website: www.ohiocondolaw.com

HOA Bill Passes Ohio Senate!!!

Great News! In a victory for all of Ohio's homeowner associations and communities, the Ohio Senate voted 29-1 to pass S.B. 187, the Ohio Planned Communities Act. The Bill will now be referred to the Ohio House of Representatives, where it will be assigned to a committee for further consideration and a vote.

If passed by the House, the Ohio Planned Community Act would give Ohio's homeowner associations a statutory foundation, similar to Ohio's condominiums. The Act will provide Ohio homeowners with the consumer protections they deserve by protecting their investment through statutorily organized associations creating strong neighborhoods and communities. This includes the ability to amend a declaration,require annual elections, inspect the association's records, and to handle rule enforcement issues in-house to avoid litigation.

Thank you for your continued support. Stay tuned to www.ohiohoalaw.com for updates on this important legislation for Ohio's communities.

Collection Action Pays Off!

In 2009, Kaman & Cusimano, LLC collected over Three Million, One-Hundred Thousand Dollars ($3,100,000.00) in 2009 for its community association clients! This figure represents all money collected as a result of bankruptcies, foreclosures, and liens for which we handle the payoffs. It does NOT include the money recovered by the associations directly for countless other liens and collection letters.

As part of the effort to weather and manage the economic crisis, Kaman & Cusimano, LLC has consistently recommended that community associations be aggressive with delinquencies. Collection action is a process. A key part of the process is a foreclosure action. A foreclosure sometimes takes time, but it ultimately yields the best financial result of Ohio's condominium and homeowner association. By taking prompt collections action, associations stop the bleeding of bad debt and give delinquent owners a strong reason to pay. After a foreclosure, related actions such as wage garnishments and bank attachments also prove successful when available information shows the individual is employed or has other resources.

Delinquent maintenance fees and assessments have a tremendous, negative impact on the entire community. Our results have proven that if a Board is proactive and takes strong collections action, the best interests of the community and the property will be preserved and protected.

Attorneys Attend Law Seminar

From January 21-23, several of the Kaman & Cusimano, LLC attorneys attended the national Community Association Institute Law Seminar. The attorneys learned about a variety of topics including Association collections, case law updates, legislative updates, the new FHA guidelines, zoning restrictions, expert witnesses, and the Board's exercise of business judgment. Presented by the College of Community Association Lawyers, to which attorneys David Kaman and Jay Cusimano are members, this seminar provides community association attorneys with a forum to tackle national community association legal issues.

Additionally, Kaman & Cusimano, LLC partner Darcy Mehling Good presented a section of the seminar entitled "Keep Fraud’s Ugly Head Out of Your Community Association." This section included "explaining the factors that foster the opportunity for fraud and discuss and identify proactive measures that an association can take to protect itself."

Kaman & Cusimano, LLC prides itself on its "communication not litigation" philosophy. Attending these national law seminars provides our attorneys with yet another valuable resource in representing our community association clients.

Super Lien Introduced!

Great news! The Ohio General Assembly has heard the voice of Ohio’s community associations. On January 12, 2010, House Bill 408 was introduced by Representatives Ken Yuko and Brian Williams and is co-sponsored by eight (8) other representatives. House Bill 408 contains the “Super Lien” language that would give Ohio’s condominiums lien priority. If the “Super Lien” legislation is enacted, it would mandate that the condominium lien has priority over the bank’s first mortgage in a foreclosure. This legislation is vital for Ohio’s community associations, especially during the current economic climate. You can find a copy of this important legislation at

http://www.legislature.state.oh.us/bills.cfm?ID=128_HB_408

While House Bill 408 does not contain a “Super Lien” for homeowner associations, our legislative sources have informed us that once the condominium “Super Lien” and Senate Bill 187 (the HOA legislation) have each, respectively been passed by the General Assembly, it will be easy to move through similar “Super Lien” legislation for homeowner associations. Therefore, it is vital that all Ohioans living in community associations voice their support of this bill to their State Representative.

The “Ohio Needs a Condominium and Homeowner Association “Super Lien” Now! Grassroots Campaign” is currently underway. As you know, this is the second phase of our campaign – a grassroots effort where we ask that you contact your State Representative. A sample letter to send to your Representative indicating support for this vital legislation can be found on the Kaman & Cusimano, LLC website: www.ohiocondolaw.com. In addition, please make copies of the letter and provide it to all unit owners so that they too may send it to their State Representative. To find out who your state representative is and his or her mailing/email address, please visit http://www.legislature.state.oh.us/index.cfm

Association Gets Creative with Dogs

Kaman & Cusimano receives many of its Service Option Clients' newsletters in the mail. One in particular recently struck our eye. As you can see, Town Square Condominium has developed a unique way to clean up after dogs:

Too bad every association does not have dogs that are this well trained!

If your Association is a Kaman & Cusimano Service Option Client, you can now see many great sample newsletters of other Ohio associations in the "Client Articles" section of our website: www.ohiocondolaw.com

Foreclosures Lead to Rise in Homeowners' Association Fees

Recently, WKYC Cleveland ran a "focus" story entitled "Foreclosures Lead to Rise in Homeowners' Association Fees" featuring Kaman & Cusimano, LLC Attorney David Kaman. The story details the plight of Ohio's associations in the event of a foreclosure and highlights the grassroots effort to pass a "Super Lien" in Ohio.

When a unit goes into foreclosure and an owner stops paying the association's fees, the other members of the community often have to "foot the bill" to ensure that all necessary services of the neighborhood are carried out. According to Attorney Kaman, "[Ohio's] associations are bleeding bad debt, with no bank bailout to help them and so they have to act aggressively in foreclosures." A "Super Lien" would ease this burden on community associations by giving the association's lien six months priority over a bank's first mortgage. Joining the fifteen other states that have similar legislation, a "Super Lien" would not only preserve property values, but also the vibrancy of Ohio's neighborhoods and communities.

To watch the story please click on the following link: http://www.wkyc.com/video/default.aspx?aid=94514

SB 187 Hearings Held

On Tuesday, December 1, 2009, Kaman & Cusimano, LLC attorneys David W. Kaman and Darcy Mehling Good attended Senate Bill 187’s proponent hearing before the Ohio Senate’s State & Local Government & Veterans Affairs Committee. David Kaman testified and answered questions before the committee, elaborating on the bill’s benefits to Ohio’s homeowner associations and Ohio’s homeowners. This was a crucial first step to getting this legislation passed in the Senate.

If passed, SB 187 would establish the Ohio Planned Community Act, giving Ohio’s homeowner associations a statutory foundation, similar to Ohio’s condominiums. The Act will provide Ohio homeowners with the consumer protections they deserve by protecting their investment through statutorily organized associations creating strong neighborhoods and communities. This includes the ability to amend a declaration, permit spouses to serve on the board, and affirm the association’s right to file a lien.

As this bill progresses through the Ohio General Assembly, your support will be crucial to show Ohio legislators that Ohio’s communities and homeowners need this important law. Stay tuned to this blog for how you and your community can help, and for updates on the progress of this legislation.

To view a full text version of the bill, please visit http://www.legislature.state.oh.us/bills.cfm?ID=128_SB_187

Board President Convicted of Theft

According to an article in the Middletown Journal, an Ohio Association's board president was convicted of embezzling association funds. To learn about the steps your board can take to help protect your Association's assets, Kaman & Cusimano, LLC clients should read the article "Safeguarding Association Funds" by Attorney Darcy Mehling Good. The article can be found on the client articles page of the Kaman & Cusimano websites: www.ohiocondolaw.com or www.ohiohoalaw.com


Jail time for man convicted of embezzling $44K
By Denise G. Callahan, Staff Writer

LEBANON — A 49-year-old Maineville man was sent to jail for 60 days and ordered to pay the remainder of the $44,029 he stole from the Fosters Pointe subdivision.

Warren County Common Pleas Judge James Flannery gave Phillip Enrich a severe scolding before imposing the sentence, following Weinrich’s guilty plea Thursday, Aug. 27.

“I’ve decided that sending you to prison in this case won’t be necessary,” Flannery said. “It’s justified, you deserve it, but I’m not going to impose that consequence ... You have shamed your children, your wife, your parents and the very good people who wrote letters on your behalf, that counts for something, that is some consequence.”

Weinrich was the subdivision’s homeowners association board president when other board members found something was fishy with the books. It came to light that Weinrich had set up a secret HOA checking account and was paying his credit cards with those checks, his attorney Mark Krumbein said.

Flannery said in his 36-and-a-half years on the bench he has never had so many correspondence on one case, not even in death penalty and rape cases. He said 42 people took the time to write him and it was an even split between those who vilified and those who supported Weinrich.

Krumbein told the judge that his client, before the lapse in judgment, was a good neighbor, helping anyone in need. He has worked for Habitat for Humanity and performed other charitable works. He also said Weinrich tried to start paying back the money just before he was caught. He has paid back $24,500 of the money he grabbed.

Krumbein said Weinrich works as a traveling sales manager for a large company. The Weinrich home on Kelso Drive is valued at $359,280 by the Warren County auditor.

Flannery noted if Weinrich still has a job after this, he will serve his 60 days on work release, so he can earn the rest of the money he stole. Weinrich will be on community control for three years and also is not allowed to hold any position that involves handling money.

In a letter read during the hearing, members of the HOA board asked Flannery to throw the book at Weinrich, who faced a maximum 18 months in prison for the felony four charge. Members of the HOA board declined to comment after the hearing.

First Assistant Prosecutor Andy Sievers told the judge the best outcome would not be prison, but repayment of the money. Flannery said it mattered little to him that Weinrich intended to repay the money — embezzlers almost always do, he said.

“And you’re an embezzler, you’re a thief,” he said. “There is no polite way to say this and I’m not going to mince words with you. You stole from people who trusted you.”

Weinrich was cuffed and led out of the courtrom. Krumbein said Flannery’s decision was just.

“I feel Judge Flannery’s sentence was fair,” he said. “He respected the victims and was still fair to Mr. Weinrich by allowing him to continue working so he can repay the money.”

Red Flag Rules Delayed

During our current seminar series, entitled "Success Basics for Community Association Board Members," our attorneys have been asked about the new "Red Flag" Rules. The Federal Trade Commission (FTC) has announced the implementation of "Red Flag" Rules which would require financial and creditor institutions with certain types of accounts to implement various rules, regulations, and safeguards to protect against identity theft.

While these new rules were intended for financial institutions such as banks and mortgage companies, the language of the regulations was so broad that they may also apply to certain community associations and property management companies. In part due to this expansive language, the FTC has delayed enforcement of the Red Flag Rules until June 1, 2010.

In order to clarify its positions, the FTC plans on issuing additional guidance to parties effected by these new rules. In the meantime, the Community Association Institute will continue to communicate its concerns to the FTC regarding the implications these rules will have on community associations. As soon as the FTC releases its guidance, the attorneys at Kaman & Cusimano will review it and advise our clients on how best to comply with the rules and reasonable safeguard against identity theft. Stay Tuned to this blog for more information.

FHA Regulations Delayed

This past summer, the Department of Housing and Urban Development (HUD) announced that it was proposing new regulations for the condominium approval process of FHA loans and insurance. These new regulations, as initially proposed, would eliminate the "spot approval" process currently in place and would require existing associations to complete a new, comprehensive application process to obtain FHA approval. Once an association completes this process, it would be on a list of approved condominium associations whose units are eligible for FHA financing for two years.

Unsurprisingly, these sweeping new regulations have met with considerable resistance from both the lending and community association communities. As a result, implementation of these new guidelines has been delayed a second time, to December 7, 2009. In the coming weeks, FHA and HUD promise to release additional guidance on how to best transition an association to the new regulations. The attorneys at Kaman & Cusimano, LLC will continue to monitor this progress and will update readers on any developments. If and when the new guidelines are issued, we will provide information on how best to proceed with FHA financing. In the meantime, the "spot approval" process continues to be the easiest way for a potential unit owner to obtain FHA financing.

The Community Association Institute (CAI) has been an integral part in lobbying Congress, HUD, FHA, and the administration to make the FHA financing process as easy as possible on the millions of American community associations. Please check back to this blog in the coming weeks for additional updates from the CAI, HUD, and FHA.