The Board of Directors (BOD) for your homeowners association has an immense financial obligation to the community. One of the BOD’s most important jobs is to keep legible and accurate financial reports and records. These reports and records provide an overview of your community’s revenue and expenses against its financial projections or budget. Read the […]
Prevailing Party: Mixed Results In Transfer Fee Litigation Means No One Obtained Fees Or Costs (CA)
Marina Pacifica Homeowners Assn. v. Southern California Financial Corp., Case No. B276719 (2d Dist., Div. 8 Feb. 5, 2018) (published) was hard fought litigation over the validity and timing of an assignment/transfer fee. In the end, the trial court—after bifurcating the trial into several phases—decided the transfer fee could not be collected after December 31, […]
How to Actually Get Things Accomplished at Your HOA Board Meeting
It’s a new year, and that means a new round of board meetings. Since the Davis-Stirling act requires that HOA board meetings take place, you might as well take part in achieving the best and most successful meeting possible. HOA board meetings are a golden opportunity for community members to know the issues that impact […]
Homeowner Associations/Prevailing Party: Homeowner’s Interim Preliminary Injunction Success, Although Ultimately Losing On The Merits, Did Not Make Her Prevailing Party Under Davis-Stirling Fee-Shifting Provision (CA)
In Artus v. Gramercy Towers Condominium Assn., Case No. A147297 (1st Dist., Div. 1 Jan. 24, 2018) (published), plaintiff homeowner sued HOA claiming it illegally failed to enforce cumulative voting standards under governing documents. The trial court granted homeowner a preliminary injunction on two of her three statutory claims, but she eventually lost on the […]
Where Do My HOA Dues Go?
During our decades overseeing property management in Irvine, the Inland Empire and throughout Orange County, the most common questions we receive pertain to HOA dues. Are dues really that important? What are they used for? The first answer is: yes, they’re extremely important. The second answer is more in-depth. In this article, we’ll break down […]
The National Labor Relations Board Had a Change of Heart on Joint-Employer Liability
Previously, we wrote on a decision published by the National Labor Relations Board (“NLRB”) wherein the NLRB concluded that, where a contracting party has reserved the authority to exercise control over the employees of another, said contracting party will be found to be the “joint employer” of the other entity’s employees. In the case of […]
5 Ways Your HOA Board May Unknowingly Put the Community at Risk
As a homeowners association board member, your responsibilities to the community you oversee are many. Homeowners look to their board to keep their community safe, well-maintained and properly managed. Board members are obligated to do everything in their power to meet its members needs while complying with the community’s CC&Rs as well as any state […]
HOA Fees: A Clear Collection Policy is Essential for Your HOA Board
Every HOA’s number one priority is the legal fiduciary responsibility to enhance and maintain their property. The only way to do that is by collecting HOA fees. That’s why a clear collection policy is a must-have for your HOA board. Sounds like fun, right? Maybe not. But the new year is a great time to […]
Court Of Appeal Affirms Half Of Request By HOA In CEQA Case Where Some Diminution In Property Values Expected But Uncertain In Nature (CA)
Heron Bay Homeowners Assn. v. City of San Leandro (Halus Power Systems), Case No. A143985 (1st Dist., Div. 4 Jan. 12, 2018) (published) is a situation where an HOA did win a CEQA biological issue “on a close call” because there was some financial incentive by HOA as far as diminished property values from the […]
Foreclosure Strategies For California Community Associations
In the assessment collection arena, there have been a number of pro-homeowner court decisions that affect a community association’s ability to collect unpaid HOA/Condo assessments. First, courts have held that associations must accept partial payments, which has allowed homeowners to attempt to avoid foreclosure by paying only delinquent assessments reducing the assessment balance below the […]
Do Your HOA Board Members Know What’s Required for Annual Disclosures? (CA)
You serve on your homeowners’ association’s board of directors. You work hard, preparing for and attending meetings and listening to the homeowners that elected you. And you do all this on your own time. Despite your best efforts, your HOA Board may be putting itself in legal jeopardy. Specifically, do you and your board know […]
HOA Homefront: New year resolutions that are good for HOA members
This is second in a four-part series, with possible resolutions for the HOA owner. Next week’s installment will suggest ideas for managers. I, the HOA member, resolve to: Read the article………………..
Requesting HOA Enforcement Held to be Constitutionally Protected Activity
A Strategic Lawsuit Against Public Participation (or “SLAPP”) is a lawsuit brought to prevent or punish someone for exercising their First Amendment right to speak about public issues or to petition the government. In response to this abuse of the court system, California enacted Code of Civil Procedure Section 425.16, known as the “anti-SLAPP” statute. […]
What Do Your HOA Rules Say About Legalized Marijuana? (CA)
Do you have to put up with the smoke and smell from marijuana? The simple answer is NO. Possession and use of marijuana is now legal in California stemming from the passage of Proposition 64. That brings the total number of states where recreational use is legal to seven. That does NOT mean that your […]
Yes, Something Can Be Done About Wildfires
On an autumn weekday here in Deschutes County, Oregon, a chain-saw roar ripped through a pine-scented neighborhood. Tree specialists were removing flammable lodgepole pines in Sunriver, a 4,000-home resort community. With summer crowds gone, the Sunriver Owners Association was reducing wildfire risk. This is a year when huge wildfires, characterized by exceptionally strong winds, continue […]
Three Reasons to Become an HOA Board Member
Do you have great ideas about how your community can be managed more efficiently? Would you like to become more involved in your HOA’s daily operations? Do you have the time, dedication and enthusiasm to regularly volunteer your skills for the benefit of your community? If so, then you’re a perfect candidate to run for […]
Understanding HOA Governance: Your Secret Weapon
Many homeowners aren’t entirely clear about the mechanics of governance that apply to their homeowners association. It’s understandable–when you become a member of a homeowners association, you become a member of a non-profit mutual benefit corporation. This corporation is governed by Bylaws, Rules & Regulations, Covenants, Conditions& Restrictions (CC&Rs) and usually involves a property management […]
New Year, New Laws for California Community Associations/CIDs-2018
Recent legal Developments affect community association interests in a variety of ways. In 2017, the California Court of Appeal decided several cases concerning such issues as title to common area and board member liability. These cases may be instructive to board members and managers. Meanwhile, on the legislative front, new and pending laws affect association […]
HOA Homefront: What Sacramento did for (or is it to?) HOAs in 2017 (Part 2) (CA)
Last week’s column addressed three bills recently passed into law by Gov. Jerry Brown and the California Assembly: Senate bill 2, Assembly bill 534 and AB 1412. Today’s column will tackle three other significant bills, SB 407, AB 634, and AB 690, which also were approved and take effect in 2018. SB 407 created Civil […]
How HOAs Respond to Emergencies
Crime, natural disasters, and medical emergencies are usually not top of mind–until they happen. Your homeowners association management company plays a role in the planning and recovery of emergencies–not during the emergency itself. In moments of crisis, such as fire, flood, earthquake, break-ins, accidents or other emergencies, your first priority should be to protect yourself […]
HOA Homefront: What Sacramento did for (or is it to?) HOAs in 2017 (Part 2)
Last week’s column addressed three bills recently passed into law by Gov. Jerry Brown and the California Assembly: Senate bill 2, Assembly bill 534 and AB 1412. Today’s column will tackle three other significant bills, SB 407, AB 634, and AB 690, which also were approved and take effect in 2018. SB 407 created Civil […]
Why Keeping HOA Fees Low is a Terrible Idea
Working for one of the largest HOA management companies in Northern California I get a lot of phone calls from distressed HOA board members. I hear the same story emerging from these different homeowners association. It’s a sad pattern that is all too common. The story goes something like this: Read the article…………….
HOA Homefront: What Sacramento did for HOAs in 2017 – Part 1
The California Legislature was quite active this year in creating laws affecting homeowners associations, as six bills take effect in 2018. This column will address three and next week’s column will address the other three. Read the article……………..
Construction Contract Tips for Owners — Part 1
A remodel of your home can be a substantial investment. Nonetheless, it oftentimes shocks me to see the contracts that parties enter into regarding construction. This article is intended to highlight some of the issues that homeowners should look out for in these contracts. Read the article……………..
What’s The Plural Of Condominium?
Wednesday’s post was entitled “Condominiums And The California Corporate Securities Law“. Today’s post concerns whether I used the proper plural form of “condominium”. “Condominium” is derived from the Latin words, cum and dominium. Cum means with or together and dominium means right of ownership. Dominium is a neuter noun in the Latin Second Declension, meaning […]
Winterizing Checklist for Your Homeowners Association Members
It’s that time of year—you’ve exchanged your swimsuit from long days at the community Association pool for sweaters and scarves just in time to roll down your sleeves and prepare your home for cooler weather. As we watch the warm days fade into the sunset, consider adding the following items to your winterization checklist, and […]
Tips from an HOA Board for a Safe Halloween in Your Association
Halloween is a kid’s delight. It’s a blast to dress up in costumes, go trick-or-treating, attend parties and most of all, eat a lot of candy. At the same time, Halloween can be scary for parents. Costumes can be dangerous, too much candy can be sickening and walking around at night can be risky, even […]
Tips for HOA Board Members to Set Boundaries with Homeowners
As a volunteer of the Board of Directors, you have the opportunity to help the homeowners in your community through issues that impact one of their biggest investments. Unfortunately, at times, owners forget that you are a volunteer of the Board and not a full-time employee. It’s very important to set boundaries with homeowners and […]
AB 634 Signed! Reduced HOA Control of Solar Energy System Installations (CA)
The Governor has signed AB 634 into law changing HOA control over solar energy system (“Solar”) installations. HOAs may no longer adopt policies and guidelines that prohibit Solar installations on common area roofs protecting HOA property and homes from damage and members are stripped of the right to protect common area property by membership vote. […]
Updating Your Association’s CC&Rs
Asked – Our documents were created in 1981 and have not been updated since that time. I imagine that we are out of legal compliance with some of the items listed within both documents. The HOA membership does not want to pay to have them rewritten and brought up to the codes and I am […]
Robert Bumgarner: Restoring free speech rights to homeowner association members (CA)
If you live in a community that’s managed by a homeowner association, you know that they often stifle the free speech rights of individual owners. That’s because First Amendment constitutional speech protections apply to governmental restrictions on free speech, not to private corporations like those that control common interest developments. This year, the legislature addressed […]
How an HOA Manager Helps the Board Prepare for Emergency Situations
When people think of an emergency, the first image that usually comes to mind is a natural disaster. But an emergency in your homeowners association isn’t always a flood or fire. There can also be financial or management-related emergencies that an HOA board is faced with. Most Boards aren’t prepared to handle emergencies and can […]
Trial Court’s Refusal To Award HOA-Affiliated Individual Defendant Fees, As Against Voluntarily Dismissing Plaintiffs, Under Statutory Fee-Shifting Provision Reversed On Appeal
In Durack v. Wang, Case No. B276086 (2d Dist., Div. 7 Sept. 25, 2017) (unpublished), homeowners sued the HOA and several individual defendants for negligence and breach of fiduciary duty (among other claims), but referencing the CC&Rs in some portions of the operative complaint. Plaintiffs reached a settlement with all defendants except one HOA-affiliated individual […]
3 Common Homeowner Responses to an Increase in HOA Fees
We all have heard the question time and time again, “Why do my HOA fees continue to increase?” Although it may not be news most homeowners want to hear, sometimes an increase in fees is the best way to keep the homeowners association in good financial health. Here are some of the reactions homeowners typically […]
Homeowners Association Safety Tips for Winter Roads and Trips (CA)
Do you live in a homeowners association where snowy weather leads to snow plowing your private roads during the winter months? Preparedness is paramount when it comes to being on the road. With an increased risk of potential driving hazards like sleet, snow, strong winds and frigid temperatures, it’s a good idea to think about […]
SB 407 Signed! Legislation Broadens Assembly and Speech Rights within HOAs (CA)
New Civil Code 4515 will be added to the Davis-Stirling Act to ensure that homeowners association residents may exercise their rights of peaceful assembly and political speech. HOAs are playing an increasing role in the lives of California’s residents as compared to the roles traditionally played by cities and counties. HOAs are growing in number, […]
How to Handle Neighbor Disputes in Your Homeowners Association
You have two residents in your community who for whatever reason do not get along. Unfortunately they live right across the street from one another! Your homeowners association manager receives phone calls and emails from these two weekly. Bill calls to complain about the lights on in Dan’s home. Dan calls to complain about cars […]
Should Your HOA Board File an Annual Report with the State? (CA)
Most HOA boards know that there are annual disclosures that have to be completed and sent out to the membership each year. But did you know that nearly all states also require that a homeowners association organized as non-profit corporations has the responsibility to file an annual report with the Secretary of State? Failure to […]
Frequently Used Terms You’ll Hear at an HOA Board Meeting
Have you ever attended a meeting and had no clue what was going on? It’s an awkward position to be in, especially if you’re trying to understand and contribute to the conversation. Be in the know and wow your board members when you attend your next HOA board meeting by reviewing these common terms that […]
4/3 DCA Determines Civil Code Section 5235(c) Only Allows Costs Award To Prevailing HOA If Homeowner Action Is Frivolous (CA)
The Fourth District, Division 3 faced a first impression statutory interpretation of Civil Code section 5235(c), which provides that “[a] prevailing association may recover any costs if the court finds the action to be frivolous, unreasonable, or without foundation,” in Retzloff v. Moulton Parkway Residents’ Association, No. One, Case No. G053164 (4th Dist., Div. 3 […]
Condominium owners continue to fight Shell over contaminated soil, water
A condominium complex built on the site of a former fuel distribution terminal has lost part of its case against Shell Oil. An appellate court found Shell not guilty of negligence but the question of Shell’s failure to remove all its petroleum products from the soil and water at the site, thus creating a continuing […]
HOA Liability for Discriminatory Harassment: A Primer
Title VIII of the Civil Rights of 1968, also known as the Fair Housing Act (“FHA”), is a federal law which prohibits discrimination in housing and housing-related services due to race, color, religion, sex, national origin, disability, and familial status. Because the FHA applies to entities that set terms and conditions for housing and provide […]
Why Enforcing the Rules Must Be a Priority of the HOA Board
One of the most important jobs a homeowners association Board has to do is to enforce the rules of the Association. As a Board member it is part of your duty to make sure all the regulations are followed by homeowners and the Board itself. Failure to do so can lead to chaos and confusion […]
AB 1139 Imposes New Notice Requirements on Deed-Based Transfer Fees (CA)
On July 31, 2017, Governor Brown signed Assembly Bill 1139 (“AB 1139”) into law. AB 1139 amends California Civil Code Section 1098.5 with regard to deed-based transfer fees (“Private Transfer Fees” or “Fees”). Prior to AB 1139 becoming law, any individual or entity who imposed a Fee on real property on or after January 1, […]
What an HOA Board Should Do Now at the Start of the New Fiscal Year
If your homeowners association operates on the fiscal year, then you’re already a month into the new year – Happy New Fiscal Year! Have your fellow HOA board members asked this question: how did we do last year? If not, then now’s the time to re-evaluate and ask the following questions so your Board sets […]
How to Find New HOA Board Members
Many homeowners association boards ask us how they can get more people involved in their community’s HOA management. The inherent issue is that an HOA board is pulling from a group of people who already lead busy lives. Serving on the board is a volunteer position with no pay and no huge incentive, other than […]
AB 690 Signed! New Management Disclosures and Changes to the Escrow Document Disclosure Form (CA)
The Governor has signed AB 690 into law, which modifies several Code sections and adds two new Civil Code sections to the Davis Stirling Common Interest Development Act. Here is what you need to know about the new requirements: New Civil Code Section 5376 provides that the manager, management firm, or third-party contractor must facilitate […]