In the recent case of Dynamex Operations West, Inc. v. Superior Court, the California Supreme Court set forth a new test that employers should utilize to determine whether their workers are appropriately classified as independent contractors or employees. (Dynamex Operations West, Inc. v. Superior Court (2018) 4 Cal. 5th 903.) The new test will likely […]
What is a Reserve Study, Really?
The slightly technical definition of a reserve study is: a budgeting tool based on the art and science of anticipating and preparing for major common area repairs and replacement expenses an association will face in the future. Read the article………………..
How to Prepare for Your Annual HOA Board Meeting
Now is a good time to set a date for your annual HOA board meeting if you haven’t already done so. Annual meetings are a common best practice to keep members informed and get them involved. You may be thinking that it’s going to be a waste of time because the majority of members don’t […]
3 Options if You Need to Make a Big Repair NOW in Your Association
As a general practice, what does an HOA board do if there’s a problem in the association that exists right now, but not enough money in the reserves to fix it? Is issuing a special assessment the way to go, or can the board use other funds in the reserves? In other words, the problem […]
Insurer Prohibited from Bringing Separate Contribution Action in Subrogation to Rights of Suspended Insured (CA)
In Travelers Property Casualty Co. of Amer. v. Engel Insulation, Inc. (No. C085753, filed 11/30/18), a California appeals court held that an insurer may not file its own action to assert claims solely as a subrogee of a suspended corporation, where the corporation could not otherwise assert the claims on its own behalf. In Engel, […]
4 Tips for Celebrating the Holidays in Your Homeowners Association (CA)
During the holiday season many homeowners association members plan festivities with friends and loved ones. With all of the merriment that’s sure to ensue, it’s important that the HOA board reminds residents who are hosting celebrations to not only be considerate of their neighbors, but also take note of the Association’s rules. Read the […]
Counsel Declarations Sufficed To Justify $425,000 Fee Award In HOA’s Favor (CA)
The fee substantiation requirement in California state courts is much less than in federal courts. Federal courts favor submission of detailed timesheets, while attorney declarations and the trial judge’s perception of the work can indeed support fee recovery in California state courts. Read the article……………….
225,000 Fee Recovery In Favor Of HOA And Against Losing Condo Owner Affirmed On Appeal (CA)
We have done many posts showing how HOAs or owners can be subject to substantial fee exposure for losing HOA-owner disputes. Seahaus La Jolla Owners Assn. v. Witt, Case No. D071229 (4th Dist., Div. 1 Nov. 27, 2018) (unpublished) illustrates how this can happen, with the non-prevailing condo owner hit with $225,000 in fees in […]
Training Tips for New HOA Board Members
Homeowners association board members are an elected group who are tasked with making important decisions on behalf of the association. Each board member brings their own proficiency and experience to their role which can be a huge asset to the HOA. However, because they are volunteers, nearly all new board members lack experience with the […]
AB 2912: New Protections Against the Misuse of HOA Funds (CA)
Assembly Bill 2912 (“AB 2912”) was recently enacted by the California Legislature. Its changes to the law, which take effect January 1, 2019, are intended “to protect owners in a [HOA] from fraudulent activity by those entrusted with the management of the [HOA’s] finances.” To that end, AB 2912 (a) significantly increases the financial review […]
Can the Reserves Be Adjusted for Items Costing More Than Planned For?
Picture yourself in this scenario: The clubhouse needs a new water heater and it will cost $10,000. But all prior reserve studies that have been done in the association have only allocated $6,000 for replacement. What are the board’s options to make up the additional $4,000 difference? Read the article…………………..
HOA Homefront: How communities can prepare for and deal with disaster
An unfortunate reality is that sometimes our communities are confronted with disaster. And whether it’s an earthquake, wildfire or another calamity, all can transform a community within a few hours. Planning for the unthinkable can improve an association’s recovery prospects. Here are some tips Read the article………………..
Developers Properly Denied $1.950 Million In Attorney’s Fees Against HOA Under Either Civil Code Section 1717 Or The Common Fund/Substantial Benefit Doctrine (CA)
Market Lofts Community Assn. v. 9th Street Market Lofts, LLC, Case Nos. B280446/B282412 (2d Dist., Div. 2 Nov. 13, 2018) (unpublished) involved a case where an HOA lost a suit against Developers based on a Parking License Agreement (PLA) to which HOA was not a party, with the PLA containing a fees clause. HOA was […]
Arbitrator Not Found to Exceed its Powers (CA)
It is well settled that an association’s CC&Rs (“Declaration”) establishes and controls, among other things, a board’s authority to govern an association provided that the CC&Rs do not conflict with California law and regulations (i.e., Davis-Stirling Act). In such cases, the plain language of the CC&Rs control. (Franklin v. Marie Antoinette Condominium Owners Assn. (1993) […]
How to Offer a Positive Customer Service Experience in Your HOA
Community association board members and managers might not immediately think of customer service as one of their priorities, but they should. Customer Service is typically associated with the retail industry, but it’s an integral function of any organization. The need for excellent services is just as vital to an association’s success as it is to […]
What You Need to Know About Fire Alarm Maintenance (CA)
As a board member, your homeowners trust you to keep the community safe and well-maintained. Fire alarm systems are one of the main requirements to keep homes safe and having them inspected, tested and serviced is crucial. Read on to learn everything you need to know about short and long-term fire alarm maintenance. Read the article………………
5 Possible Solutions to Short Term Rental Problems in an HOA
Short term rentals have become a hot-button issue in HOA communities. More and more homeowners are choosing to rent their homes through sites such as Airbnb or VRBO as a convenient, low-cost way to earn additional income; however, the popularity of short-term rentals is raising concerns in associations and even opening them up to liabilities. Read […]
HOA insurance mistake #2: Thinking small (CA)
Small Homeowners Association (HOA) insurance coverage can be cheaper. But that can cost high assessments later. The easiest mistake to make when reviewing your HOA insurance policy is to think too small. After all, many of the condo and homeowners associations in Napa, Calistoga, St. Helena, Yountville, American Canyon and Sonoma are small. And small […]
Regulation of Noisy Vehicles within the Community (CA)
Asked – We have several vehicles that are “extremely loud” due to their exhaust systems. Even with all windows and doors closed and these vehicles 1/2 way across the complex, there is NO PROBLEM hearing them when they start them. They even set off car alarms near them. Can we ask them to address the […]
Ban on Short-Term Home Rentals Is a “Development” Subject to the Coastal Act
Underlining the broad and expansive definition of “development” under the California Coastal Act, the Second Appellate District ruled that a coastal homeowners’ association’s ban on short-term rentals is considered “development” subject to the requirements of the Coastal Act. Greenfield v. Mandalay Shores Community Association, 21 Cal. App. 5th (2018) Read the article………………
A 58-story luxury condo skyscraper in San Francisco is tilting and sinking — here’s everything that’s gone wrong in the last decade
San Francisco’s Millennium Tower has been shrouded in controversy for years — but its fate has never looked bleaker than it does today. Since its opening in 2009, the 58-story skyscraper has sunk 17 inches and tilted another 14 inches to the northwest, causing many residents to speculate about issues with the building’s foundation that […]
What to Include On An HOA Board Meeting Agenda
Determining what to talk about during every board meeting can feel a bit overwhelming. Since each HOA is different, the items discussed at every meeting will vary. Add to that the fact that state law requires that meeting agendas be posted four days in advance in a public place designated by the association’s annual disclosure, […]
HOA Insurance Mistake #1: Not understanding the CC&Rs
Covenants, Conditions and Restrictions (CC&Rs) are the documents that govern your shared neighborhood, such as a condominium association, a townhome association, a mobile home park and even some neighborhoods with single-family detached homes. Read the article………………
Things an HOA Board Should Consider When Planning Next Year’s Budget
Preparing next year’s budget for your homeowners is one of the most important undertakings for the HOA board. Fiduciary responsibility is something you pledged to look after for your community and this is an area where that really comes into play. There are a few things the Board should consider for next year’s Association budget. […]
SB 261 Signed! Changes to Individual and General Notice (CA)
Homeowners associations are often required to disclose information to their membership. There are two forms of disclosure: general notice or individual delivery. When homeowners associations are required to deliver documents by “individual delivery” or “individual notice,” Civil Code Section 4040 permits delivery by email, facsimile, or other electronic means (“electronic delivery”) only if the recipient […]
HOA Board And Manager Authority
To achieve effective communications between homeowners and their homeowner association, it is important to understand the authority that belongs to the property management company, the board members individually and the board as a whole. For example, the management company may be able to solve a problem quickly while at other times, management may not have […]
Can a Board Use Reserves for an Item Not Listed in the Reserve Study? (CA)
The purpose of the reserve fund is to plan for future repairs and replacements in the association. But what about components that you can’t see and aren’t listed in the reserve study? For example, plumbing supply lines that aren’t included in the reserve study and will end up costing somewhere in the ballpark of $50,000 […]
AB 2912 Signed! Significant Changes to HOA Financial Review and Insurance Requirements (CA)
Earlier this year, the California Legislature proposed AB 2912 (Irwin) in an effort “to protect owners in a [HOA] from fraudulent activity by those entrusted with the management of the [HOA’s] finances.” To that end, AB 2912 significantly increases the financial review requirements of HOA boards of directors, limits the ability for automatic transfer of […]
SB 1016 Signed! New Law Expands Rights to Use EV Charging Stations in HOAs (CA)
For the third time in past seven (7) years, the California Legislature has modified the laws governing the installation and use of Electric Vehicle (EV) charging stations within homeowners associations (“HOAs”). The first time was in 2011 when the Legislature enacted a new statute (now contained at Civil Code Section 4745) designed to nullify any […]
Steps to Take When HOA Board Members Can’t Make Decisions (CA)
Some HOA boards have the need to discuss things ad nauseum and yet never come to a decision. It can be extremely frustrating when the same topic comes up on the agenda month, after month, after month, and after hours of discussion, nobody’s willing to say either yes or no. They either need more information, […]
The #1 Problem Homeowners Associations Have With Management Companies
Are you tired of the lack of customer service from the management company your association has had for a number of years? It’s possible that the company was inherited from past HOA board members. Maybe they hired the management company because they liked a specific manager, but that manager no longer works for the company […]
San Francisco’s leaning tower of lawsuits
It’s a story as old as cities themselves: prosperity comes to town and triggers a building boom. In modern San Francisco, rows of skyscrapers have begun lining the downtown streets and recasting the skyline, monuments to the triumph of the tech sector. Leading this wave, the Millennium Tower. 58 stories of opulence, it opened in […]
Should an Association Respond to Unofficial Publications?
With increasing frequency, homeowners associations are confronted with members publishing content related to their association and its operations, whether on Facebook, blog posts, or other various online forums. Sometimes these publications are critical of the association board of directors, misrepresent important information and facts, or fraudulently purport to be official association publications. The various potential […]
Tips for a Smooth HOA Board Member Transfer (CA)
The volunteers who occupy seats on an HOA board are in a unique position. Although they’re skilled in their professional fields and possess a deep love for their community, few have experience serving on the board of a multi-million-dollar corporation like a homeowners association. As a volunteer with a fiduciary duty to the corporation, this […]
Why HOA Boards Must Hold Regular Scheduled Meetings (CA)
One of the first things you learn as you enter the world of homeowner’s association management is all items must be discussed at a board meeting and all decisions must be made in a meeting. In my eight years as an HOA Portfolio Manager, I’ve never had a Board who hasn’t met on a regular […]
A Self-Serving Board Member Might Look Something Like This
You ran for the board on the platform of remodeling the clubhouse that has become outdated. What you haven’t shared with the members of the association is that your daughter is getting married next year and the clubhouse would be the perfect place for a reception. The association has never charged for members to use […]
After HOA Budget Timelines, It’s Time to Build That Budget
Now that you’ve created your timeline and its tasks, Crummack Huseby’s financial experts want to share insights on creating and implementing the smartest budgets for your community. It’s important to consider expense questions your Board should ask, what your management company’s accountant should know, and thoughts on the timing of assessment increases. Read the article………………
4 Tips to Find and Keep Good Vendors for Your Homeowners Association (CA)
A new member has been elected to your HOA board. Suddenly, you learn that they seem to have a general mistrust of any current vendors of the association, perhaps because they did not choose them. They call for at least three bids on every project, no matter how small. This person seems to be trying […]
Debunking the Myths of Volunteer Board Service
Congratulations! You’ve just been elected to your Board of Directors – now what? Or maybe you’ve been serving as a volunteer director for some time and you just aren’t sure which way is up. If you have been dazed and confused but still have a passionate heart to do the right thing in the best […]
California Coastal Cities’ Lone Fight for Short Term Ordinances and its Impact on Homeowner Associations
California’s housing crisis has made short term rental regulations an even more urgent concern for leaders across the state, and some cities have already set their own regulations. These regulations and internal homeowner association rules and CC&Rs provisions sometimes collide. Here is an update based on recent case law and local ordinances. Read […]
Reserve Funds For An HOA
Reserve funds are an important part of the HOA Boards financial responsibilities. And how HOA’s collect that money is through monthly dues provided by members. A small chunk of monthly dues goes into a reserve fund or a major backup fund that is used for unexpected costs. The amount varies, but what is consistent is […]
When Misguided Attempts to Keep HOA Fees Low Affect the Reserve Fund
The reserve fund of a homeowners association is often misunderstood by members and sometimes the HOA board as well. Some see it as a slush fund that is to be used on a “rainy day”‘ when the association gets low on cash in the operating account. Others, although they may understand the need to have […]
HOA Living: How to Read Your CC&RS
Your community’s CC&Rs (Covenants, Conditions & Restrictions) are probably 100+ pages packed with legal-sounding jargon. It can be a lot to get through. If you just moved into a community—or decided to finally crack open your governing documents after living in an HOA for awhile, here’s some good news: there are really only two main […]
Is a Homeowners Association Required to Install and Maintain AEDs? (CA)
The issue of whether or not a homeowners association is required to install and maintain an automated external defibrillator (“AED”) on-site is a question that has not been directly addressed by California courts. As a result, many community members and Board of Directors (“Board”) seek legal guidance and clarity as to the same. In particular, […]
What Happens When Members Don’t Follow the Architectural Guidelines? (CA)
You’re a board member of a lovely homeowner’s association. On most days as you drive through your community you wave at fellow neighbors, share a friendly smile with passersby, and enjoy the neat landscapes and well-kempt houses. This particular day seems to be no different. The sun is shining. The birds are singing. You appreciate […]
Your HOA Budget Timeline and Tasks. What Should You Do First?
Every good plan needs a timeline and budgeting is no different. The budget process for HOA’s should start 6 months before year end. In the first 2 months you’ll gather your materials. Necessary materials include the annual reserve study, contract and utility cost increases, planned one-time operating expenses for the coming year and the community’s […]
Celebrate a Fun & Safe July 4th in Your Homeowners Association
How will you be celebrating the 4th of July? If you’re traveling to visit friends and family or taking a vacation, bon voyage! If you’re sticking close to home and celebrating with barbecues, bathing suits, and bright fireworks in your homeowners association, there are some important things to consider. If you’re an HOA board member, […]
Water Damage Claims in Your Condo Association
Many condominium associations face problems due to a misunderstanding of how their association’s policies of insurance operate and should be utilized—especially in connection with property damage emanating from broken pipes or plumbing fixtures. Those problems include, among others: (a) denying owners the benefit of the insurance coverage to which they are entitled; (b) having the […]
HOA Management Best Practices
Every management company brings their own unique style to the accounts they oversee. However, there are a few things that every HOA board should expect, no matter the size of your community or the reach of your management company. Here is a list of the best practices we compiled from delivering decades of HOA management […]
New Developments and HOAs
These days most – if not all – of the new housing developments in Southern California are governed by a homeowners association. Establishing an HOA is one of the ways that developers aim to maintain the success of the community and preserve property values in the future. But how can an HOA meet the needs […]