Condominium associations face increasing exposure to directors and officers (D&O) liability, particularly from claims involving discrimination and selective enforcement. As associations exercise quasi-governmental authority, inconsistent or unfair enforcement of rules can quickly escalate into legal disputes.
Discrimination claims often arise under fair housing laws and may involve disability
accommodations, religious considerations, or familial status. However, many cases are rooted less in the rule itself and more in how it is applied. Selective enforcement — when rules are enforced against some owners but not others — is a common trigger and can undermine an association’s legal position.
Several factors are driving the rise in these claims: greater resident awareness of legal rights, complaint-driven enforcement practices, frequent board turnover, and inadequate documentation. Together, these conditions create inconsistency and the perception of
unfair treatment.
To reduce risk, boards should prioritize consistent enforcement of rules, adopt clear written policies, and maintain thorough records of all actions. Training in fair housing
compliance and governance best practices is also essential. When prior enforcement has been inconsistent, associations should implement prospective enforcement with clear notice to residents.
Ultimately, strong governance, transparency, and uniform decision-making are the most effective tools for minimizing liability and maintaining community trust.
Why a Clean, Dry Attic Matters
