Case Study:  Homeowners Association 

As in thousands of older subdivisions, a homeowners association owned substantial common areas – including open space, athletic fields, and structures – but the covenants did not grant the association any express right to levy assessments to pay for maintenance and operation of those areas.  As a result, the common areas were falling into disrepair.  The homeowners adopted a new covenant requiring all homeowners to pay assessments.  One homeowner refused to pay, claiming he was bound only by the covenants that existed at the time he bought his home.  In a case of first impression, we persuaded a state’s supreme court that the new covenant was enforceable and that, in any event, a homeowner’s association has an implied right to levy assessments to pay for maintenance and operation of common areas.