Common Interest Communities

Question 1

Common Interest Community

Answer 1

1. a planned residential development where all properties are subject to comprehensive private land use restrictions
2. which is regulated by an HOA

Question 2

What is the creation of a CIC

Answer 2

written declaration:
1. established HOA
2. Imposes covenants, conditions, and restrictions
seen as real covenants and equitable servitude
3. monetary assessments
4. ownership rights
FSA in own unit, undivided interest in common area of CIC, membership interest in HOA

Question 3

Unreasonableness Majority Rule

Answer 3

Objecting owner who merely asserts that a particular provision is unpopular or unfair, or that he failed to read it, will obtain no relief.

Question 4

Minority Rule

Answer 4

a growing minority of courts will invalidate a CIC covenant if it is arbitrary, violates a fundamental Constitutional right, or violates public policy

Question 5

Arbitrariness Defense Rule

Answer 5

courts will not enforce restrictions that are arbitrary, meaning they bear no rational relationship to the protection, preservation, operation, or purpose of the affected land

When a use restriction bears no relationship to the land it burdens, or violates a fundamental policy injuring the public at large, the resulting harm will always be disproportionate to any benefit

Question 6

Arbitrariness Defense Rule:

Answer 6

courts will not enforce restrictions that are arbitrary, meaning they bear no rational relationship to the protection, preservation, operation, or purpose of the affected land
o When the harm caused by restriction is so disproportionate to the benefit produced by its enforcement

When a use restriction bears no relationship to the land it burdens, or violates a fundamental policy injuring the public at large, the resulting harm will always be disproportionate to any benefit

o Objective Standard: the reasonableness or unreasonableness of a use restriction is to be determined not by reference to the objecting owner but by reference to the common interest development as a whole

Question 7

Changed Conditions

Answer 7

where changed or altered conditions in a neighborhood render the strict adherence to terms of a restrictive covenant useless to the dominant lots, courts refrain from enforcing such restrictions

o Neighborhood = only immediate (not remote) area
o Courts must consider adjoining tracts as well as restricted tract
o Relevant inquiry concerning changes to the immediate neighborhood is whether such changes alter or eliminate the benefit that the restriction was intended to achieve

o Border lot = changed conditions doctrine most commonly asserted in cases where vacant lot on edge of subdivision is restricted to residential use, but is no longer suitable for this purpose (usually b/c now fronts a busy commercial street); courts tend to reject such claims and find that the residential only restriction still benefits lots insides the subdivision