Are Your Community Association Attorneys Using AI to Perform Legal Services for You? Hoffman Law LLC is Not (well, at least not yet) … and … Here is Why.
August 25, 2024
Artificial Intelligence, or AI, has seemingly become an everyday term these days. People are using AI to write resumes, create rough drafts of stories based on variables that the end-user inputs, and also perform all types of tasks for personal and professional use … and … it’s evolving (quickly!). But, as I learned from an awesome acronym from my computer programming (go Basic, Fortran and Pascal!) classes way back in the stone age … GIGO. Wait, GIGO? What does this mean? Quite simply: “garbage in, garbage out“.
In the context of AI utilized in the provision of legal services, it means that the information and data that AI is gathering and aggregating from the internet for attorneys to use in real-world (i.e., not “AI-world”) court filings is oftentimes replete with utter and absolute garbage – including but not limited to absolutely incorrect legal analyses and [caselaw] summaries and citations, and other big “no-nos” for attorneys – which, as you may have already guessed, is a massive problem not just for attorneys and their law firms, but also for the clients of these lawyers and law firms.
About a week ago, on August 19, 2024, the Honorable Karoline Mehalchick, a United States District Judge for the Middle District of Pennsylvania, issued a Civil Practice Order entitled “Use of Generative Artificial Intelligence”, which provides as follows:
Increased use of Artificial Intelligence (“AI”), particularly Generative AI(including, but not limited to, OpenAI’s ChatGPT or Google’s Bard), in the practice of law raises a number of practical concerns for the Court, including the risk that the generative AI tool might generate legally or factually incorrect information, or that it might create unsupported or nonexistent legal citations. As such, any party, whether appearing pro se or through counsel, who utilizes any generative AI tool in the preparation of any document to be filed in any matter pending before Judge Mehalchick, must include with the document a Certificate of Use of Generative AI in which the party must disclose and certify:
- The specific AI tool that was used;
- The portions of the filing prepared by the AI program; and
- That a person has checked the accuracy of any portion of the document generated by AI, including all citations and legal authority.
Failure to comply with this Order may result in sanctions. Further, all parties and counsel are directed to review the conclusions on pages 15 and 16 of the Joint Formal Opinion of the Pennsylvania Bar Association and Philadelphia Bar Association regarding the use of Artificial Intelligence and be mindful of their ethical and professional obligations before this Court. (A link to the information provided in the Order can be found here. Contact us if you would like a courtesy copy of the actual Civil Practice Order Issued by the Court).
What exactly does this mean? It means that if your Association’s attorneys/law firms are representing your Association in a matter in front of Judge Mehalchick, they must certify that AI was used (and which type(s)), identify which portions of the filing are prepared by AI, and that someone (a real live person – go figure!) checked the accuracy of any portion of the filing prepared by AI, including all citations and legal authority. A failure to do so may result in sanctions.
While this Civil Practice Order only applies to matters in front of Judge Mehalchick in the [federal] District Court for the Middle District of Pennsylvania, Community Association attorneys, and their clients, throughout all of Pennsylvania, as well as virtually (no pun intended) in every other jurisdiction in this country, should understand that all of this is coming to a courthouse near you … and soon. Judges do not want to deal with GIGO filings in their courtrooms, so attorneys and law firms should take heed of the risks associated with the use of AI in legal practice – NOW.
Finally, for my fellow Pennsylvania Community Association attorneys, it is highly recommended that you listen to Judge Mehalchick and review pages 15 and 16 of the Joint Formal Opinion of the Pennsylvania Bar Association and Philadelphia Bar Association regarding the use of Artificial Intelligence before you engage in the use of AI in Pennsylvania.
– Edward Hoffman, Jr., Esq., CCAL
BREACH OF PERSONAL INFORMATION IN COMMUNITY ASSOCIATIONS – UPDATED JULY 2024
If you’ve been paying attention, Hoffman Law LLC previously advised of updates to the Pennsylvania Breach of Personal Information Notification Act” (“BPINA”) in 2022/2023 in a prior Blog post found here. This Blog post is an update to same.
NEW:
Pennsylvania Senate Bill 824 (SB 824) changed the BPINA in numerous ways, and the changes become effective on September 26, 2024. We will summarize the recent changes provided by SB 824 below, not in its entirety, but as it may apply to/impact Community Associations.
1.NOTIFICATION OF BREACH. BPINA used to require notification to credit reporting agencies when 1,000 or more PA residents were impacted in the event of a breach. SB 824 brings that number of impacted residents down to 500 or more PA residents.
2. CREDIT REPORTING/MONITORING. SB 824 requires that qualifying entities provide impacted PA residents with access to a credit report and credit monitoring services, free of charge, if the following apply:
a. there was a breach of the “security of the systems” as defined by PA law; and
b. the data accessed as a result of the breach included the individual’s name (first and last name, or first initial and last name) in combination with their SS #, bank acct. # or driver’s license/state identification card #.
If the two aforementioned requirements have both been triggered, the Ass’n must provide the impacted PA individual with access to an independent credit report from a consumer reporting agency if the individual is otherwise not able to obtain an independent credit report free of charge. The Ass’n must also provide the impacted PA individual with an offer of twelve (12) months of credit monitoring services, and advise that same is available free of cost.
3. PA Attorney General. SB 824 requires that an Ass’n notify the Pennsylvania Attorney General’s Office (PA AG) whenever it provides notice of a breach under PA law to more than 500 residents of the Commonwealth (used to be 1000!). The notification to the PA AG must be provided at the same time of the notice provided to impacted individuals, and must include the following information (if known at that time):
- Ass’n name/location;
- Date of breach;
- Summary of incident that led to breach;
- Estimated total # of impacted individuals; and
- Estimated total # of impacted residents of PA.
Finally, we still recommend that community associations review BPINA as amended, as Act No. 33 of 2024 (June 28, 2024), which can be found here, and discuss with their counsel, managing agents, and/or any service providers that handle personal information (especially association software providers), and confirm proper insurance coverage with association insurance professionals. As it relates to insurance, community associations should obtain adequate cyber-liability insurance to offset risk and cover a breach incident (it is noted that the cost of proper notification is tremendous, especially if the breach (now) involves notification to over 500 persons at one time (because all consumer credit reporting agencies must also be notified, as well as the Pennsylvania Attorney General’s Office).
– Edward Hoffman, Jr., Esq., CCAL
PODCAST: CAI Community Matters – The Impact of Emerging Technologies in Community Associations (January 2024)
CAI Community Matters – The Impact of Emerging Technologies in Community Associations (January 2024)
Emerging Technologies in Community Associations*
I was recently listening to my 70’s playlist on Spotify, and the Steve Miller Band’s “Fly Like an Eagle” came on. One of the verses we all know form the song suddenly stuck out to me:
Time keeps on slippin’, slippin’, slippin’ … Into the future
Time indeed does slip … into the future. To wit, it’s already 2024 (where did 2023 go? Or 2022, 2021 and/or 2020 for that matter?). As it pertains to the community association world, what exactly is on the horizon for the future – in 2024 and beyond? Let’s discuss some of the emerging technologies in community associations to see how far we’ve come, and what is coming down the road (pun intended, electric vehicle (EV) joke here).
Electric Vehicles
A couple of years ago, I wrote an article for Community Assets entitled “Plug and Play – Solar Panels and Electric Vehicles in Common Interest Communities” (Nov/Dec 2021 issue). It’s still a very hot topic nationally. While there is currently limited pushback related to EV charging in associations with single family detached units (usually related to aesthetics of installing outside of the unit/garage vs. inside the garage), in stacked condominium and townhome communities it’s been a different story.
The debate about EVs in these communities still relates to how and where electric vehicles will be charged if the vehicle is parked away from the unit because, most of the time, the current infrastructure present in older communities will substantially limit the ability to actually install charging stations in common areas, in addition to association-related logistical, legal and technical issues such as the location of the charging stations, use of parking spaces, deeded spaces, limited available parking, insurance, tremendous expense, disturbance of common facilities and common elements, liability, who will pay for the electricity, commercial EV charging providers on the premises, Level 1, Level 2 and Level 3 charging, and more.
The shift to EVs is rapidly accelerating (another EV pun, intended) as the technology evolves and the cost of EVs continues to decrease. Our industry must proactively figure out how to handle EVs – in old communities and in new communities. It will obviously be much easier to deal with this in new communities where the necessary infrastructure required for EV charging stations is installed at the time the improvements are installed in the units, common areas and common facilities.
I am still not aware of any actual EV legislation that has been formally introduced which would impact community associations in Pennsylvania, but I do believe it’s coming at some point soon, in some manner. And when I say soon, I mean, very soon – PA Senator John I. Kane issued a Co-Sponsorship Memorandum on August 31, 2023 entitled “Residential Electric Car Charging Stations.” Pursuant to the Memorandum:
“I am introducing legislation to allow residents of condominiums and common interest communities to install electric car charging stations in their designated parking spaces. Residents will be responsible for the cost of installing the electric car charging stations. The legislation will bar unreasonable restrictions and enforcement against the use and expansion of electric car charging stations as well as the deliberate disregard of applications. Electric Vehicles have major benefits including improving air quality by lowering emissions and creating new jobs in the manufacture and distribution of these products. That is why leading auto manufacturers including General Motors are ramping up production of electric vehicles and are planning to phase out most gasoline or diesel-powered vehicles. My legislation is modeled after New Jersey’s and New York’s efforts to facilitate the expansion of electric car charging stations. Let’s join our neighboring states in their mission to make electric car ownership hassle-free and accessible. It’s time to take important steps to address climate change while also addressing the barriers that may impeded electric vehicle ownership.”
I’ve asked this before for various issues: shouldn’t we be in front of this issue, rather than behind it? Shouldn’t newresidential construction in Pennsylvania be constructed with the necessary infrastructure to support EV charging stations? Yes, it should.
However, for existing communities with old (aging) infrastructure and other limitations, this will be far more difficult, so any legislation requiring existing Associations to allow EV charging in common area parking situations must be carefully reviewed. If a legislator is reading this article and is considering going down this road (pun intended – EV joke # 3) with respect to existing communities, I would recommend that the legislature identify and/or create funding sources (i.e., state energy grants) which community associations could utilize to install the required infrastructure for EV charging. I am happy to discuss this with any legislator that wants to listen.
Solar Energy
Currently, 29 states (including neighboring New Jersey and Delaware) and the District of Columbia have laws which serve to prohibit association covenants or restrictions from applying to homeowners who seek to install solar panels and associated devices on their homes. Twelve more states have laws that protect easements and their establishment on a legal contractual basis without having an express solar rights law in effect. While Pennsylvania currently has no such solar law(s) in effect, solar panel legislation which would impact community associations has previously been introduced multiple times: Senate Bill 1039 – Residential Rights to Solar Energy (2017-2018 Session); Senate Bill 436 – Removing Obstacles to Residential Rights to Solar Energy (2019-2020 Session); and Senate Bill 826 – Ensuring All Residential Homeowners have Access to Solar Energy (2021-2022 Session). The common theme exhibited in the first two Senate Bills is that community associations would not be permitted to prohibit or restrict the installation or use of a solar energy system on a detached unit.
Senate Bill 826 (from the 2021-2022 Session), took it one step further to provide that Associations would not be permitted to prohibit or would not be permitted to prohibit or restrict the installation or use of a solar energy system on a detached roof or a townhouse unit. Currently, in the 2023-2024 Session, similar legislation has been introduced – Senate Bill 31 and House Bill 1759 – Solar Energy Systems. This legislation, as proposed, provides that a community association may not prohibit or restrict the installation or use of a solar energy system on a detached roof or a townhouse unit for which the repair of the of the unit is an owner responsibility and not the responsibility of the community association.
Thus, all of the bills that were previously introduced, as well as the current session’s bills, focus on preventing community associations from prohibiting or restricting the installation or use of a solar energy system on units in the community association. If solar is indeed the future, why are legislators still focusing on preventing associations from acting in some way? Because most community associations (the Boards and/or the owners) still do not want solar in the community and/or do not want to deal with solar issues in any way. Just like the EV issue we just discussed – shouldn’t we be in front of the issue, rather than always behind it? Community associations must begin to reconsider how they look at solar issues because it’s coming, and there will be no looking back.
Management Software
I know, I’m the community association attorney – what do I know about management software? We work with manymanagement companies in representing the interests of our mutual community association clients all over Pennsylvania, and we see that management software solutions have been evolving, and rapidly. Using the latest software solutions, community association managers and staff can:
- Take payments electronically;
- Perform site visits and issue violation notices, with photographs, immediately from their smartphones;
- Communicate directly, and instantaneously, with all of the unit owners in the community via a communication portal and/or email blast; and
- Communicate with vendors regarding association issues.
Management is also able to offer mobile apps to end user unit owners to be able to view their owners portals and communicate directly with the management regarding their accounts, and notify management of any complaints, issues or violations. Board members can also utilize mobile apps to view and conduct Board business, which was unheard of only a few years ago.
Technology is therefore allowing management to do its job better – and faster – than ever before. Expect to see even more positive changes happen in this area in 2024 and beyond.
Electronic Voting and Meetings
At some point, electronic voting and meetings in community associations will be the norm, not the exception, in Pennsylvania. While we still need to work out the wrinkles statutorily for existing communities in Pennsylvania, the Bylaws that are being drafted for new communities in Pennsylvania already reflect the change to allow emerging, electronic technologies to be utilized for voting and/or meetings (Board and/or association). These technologies, as they exist today, were not really being utilized in community associations even just five years ago – yet, today, they have become the norm.
Social Media
In a nutshell, to say that social media has changed the community association landscape is an understatement, and to say that the use of social media in community associations has drastically changed (whether good, bad, ugly or indifferent) is an even bigger understatement. Social media can be used by community associations in a positive manner, and it can also have negative implications (i.e., unofficial social media pages/online presences which are not run by the association). At the end of the day, social media use in community associations is not going away.
I have been discussing social media issues for well over a decade, and one thing that is clear is that social media issues continue to evolve. To say that media has changed the community association landscape is an understatement, and to say that the use of social media in community associations has drastically changed (whether good, bad, ugly or indifferent) is an even bigger understatement. Social media can be used by community associations in a positive manner, and it can also have negative implications (i.e., unofficial social media pages/online presences which are not run by the association). At the end of the day, social media use in community associations is not going away. Be prepared for it, and handle it appropriately.
– Edward Hoffman, Jr., Esq., CCAL
* This Blog post by the author was originally published in the Jan/Feb 2024 issue of Community Assets Magazine, a publication of CAI’s Keystone Chapter.