Tuesday, September 25, 2012

What’s a legitimate common expense for condo owners?

Here’s what court in Pennsylvania decided in a recent case.

 

Owner Not Liable for Assessments for Cable TV Service
River Park House Owners Association v. Crumley, No. 1105 C.D. 2011, No. 1179 C.D. 2011, Pa. Commw. Ct., 03-06295-19-1, June 4, 2012
Association Operations: A Pennsylvania appeals court determined that a condominium association exceeded its authority by entering into a contract for cable television services and levying assessments against unit owners to cover the cost.
River Park House is a 354-unit residential condominium development in Philadelphia, Pa. The condominium is managed by River Park House Owners Association (association) and governed by the declaration and bylaws, as well as the Pennsylvania Uniform Condominium Act (act). William Crumley has owned and resided in one of the units since 1987.
In 2007, to replace an expiring cable television contract, the association entered into a contract with Comcast of Southeast Pennsylvania, LLC for cable television service. The contract required all residents to purchase cable in order for the entire building to obtain discounted cable fees.
Under the contract, the association would pay $43.95 per unit per month, effective January 2008. Because Crumley opposed the contract, he refused to pay the cable television fees but continued to pay the balance of the monthly common expense maintenance fees.
The association sued Crumley for unpaid assessments, late charges and legal fees, and a judgment was entered against him in municipal court. He appealed, and the matter went to an arbitration board, which reversed the municipal court decision. The association then appealed to the trial court.
To read more details about this case and other HOA legal rulings, click here: