QUESTION. If our 50% quorum is not achieved, is there a requirement that another vote take place but with a 20% quorum requirement? If so, how quickly does this need to take place? Read the Q&A………………………………..
HOA Board Governance: Roles, Responsibilities, and Ethics
Homeowners’ Associations play a pivotal role in shaping the communities they oversee. At the heart of every HOA is its board of directors, a group of individuals entrusted with the responsibility of making decisions that affect the entire community. However, being an HOA board member is not merely a title; it comes with a set […]
Accusing Neighbor of Racism Is Not of Public Interest (CA)
Div. Eight of this district’s Court of Appeal held Friday that repeated accusations by owners of a condominium in a six-unit complex of racism and malfeasance on the part of another owner in emails to the homeowners association, an insurance company, neighbors and others, implicates too small and specific of an audience to qualify as […]
California HOA Condos and Homes: Unveiling the Top 10 Pitfalls of Faulty Gutter & Fascia Installations
A common oversight with potentially significant financial impacts is the quality and installation of gutters and fascia. At Naumann Law Firm, we’ve seen firsthand how these defects can lead to extensive property damage and financial strain. In our most recent blog, we delve in a bit closer the top 10 construction defects resulting from poorly […]
Do E-mail Exchanges Constitute A Meeting Of The Board? (CA)
In LNSU#1, LLC v. Alta Del Mar Coastal Collection Community Association,94 Cal. App. 5th 1050, 312 Cal. Rptr. 3d 707 (2023), two homeowners in a common interest development argued that their homeowners’ association violated state law governing open meetings when certain directors discussed items of association business by e-mails without giving all association members notice […]
Virtual Board and Member Meetings (CA)
Good news for directors and managers who hold virtual meetings but hate the hassles that come with hybrid meetings: you can legally hold solely virtual meetings! Read on for details. Associations have been using virtual video communications platforms like Zoom, GoTo Meetings, and Microsoft Teams for the last few years to hold board and member […]
Harnessing Sustainability: HOA Community Composting and Rainwater Harvesting Programs (CA)
In the global pursuit of sustainability, homeowners associations (HOAs) are taking the lead by adopting innovative practices to make their communities greener. Two key initiatives, community composting, and rainwater harvesting programs, are gaining traction worldwide. These eco-friendly practices not only contribute to environmental sustainability but also foster a sense of community and shared responsibility among […]
Managing Delinquent Board Members: Strategies for HOA Leadership (CA)
In the complex world of managing a homeowners association, one of the most challenging issues that board members may face is dealing with delinquent board members. These individuals can disrupt the functioning of the HOA, cause financial strain, and create tension within the community. Addressing this issue requires a delicate balance of assertiveness, diplomacy, and […]
AB 1458 Stop, Adjourn, Then Proceed: New Reduced Quorum Requirements Help Make Every Vote Count (CA)
Recent legislation has provided various tools to remedy the difficulties that many associations face due to the lack of member participation in director elections. AB 502 went into effect in 2022, permitting elections by acclamation when the number of qualified candidates running for a board of directors is less than or equal to the number […]
HOA Homefront: Myths mold consultants use to scare residents, homeowners (pt 2) (CA)
Although mold trade organizations have created their own credentials and extensive and expensive cleanup protocols, the EPA recommendation to clean up a moldy area of up to 10 square feet is to wipe it with a cloth dampened with a diluted bleach solution. Misleading and self-serving statements by the “toxic mold” industry continue to grab […]
HOA boards unintended victims of federal law aimed at terrorism
A federal law aimed at curtailing money laundering to benefit terrorists is catching the more than 120 homeowners associations in Ventura County and elsewhere in its net with new beneficial ownership filing requirements. In effect, individuals who are elected by their fellow homeowners to represent their communities could be asked to register with the federal […]
Overcoming the Challenge: Ensuring Renters Adhere to Community Guidelines (CA)
In the vibrant tapestry of community living, harmony and order are often maintained through carefully crafted rules and regulations. These are commonly referred to as Covenants, Conditions, and Restrictions (CC&Rs). These guidelines serve as the backbone of residential communities, ensuring that each member contributes to the neighborhood’s overall aesthetic and functional harmony. Read the article…………………………….
Treasurer’s Payment Mistake Requires Defense Coverage Under Property Association’s D&O Policy
A federal court recently ruled that a carrier must defend its policyholder against a claim involving the treasurer’s erroneous payment to a scammer. The ruling shows that a “wrongful act” under a D&O policy need not be an egregious act of wrongdoing, that coverage may hinge on whether extrinsic evidence can establish coverage, and that […]
HOA Homefront: Why ‘toxic mold’ myths continue to panic residents (CA)
In 2000, a new panic swept the country — “toxic mold.” Twenty-four years of lawsuits and untold billions of dollars later, major mold myths continue to frighten residents and cause exaggerated repairs and unnecessary conflict. On one side of the debate is the mold industry: testers, consultants and mold clean-up contractors. On the other side […]
Homeowner Associations: $156,476.33 Is The Fees/Costs Award Against An In Pro Per Plaintiff Who Lost A Demurrer To The HOA And A Subsequent Appeal (CA)
We have posted many times on how attorney’s fees and costs are the “tail that wags the dog in litigation” in homeowner-HOA disputes, resulting in hefty awards for the prevailing party or resulting in a large expenditure fees even though no one is deemed to have prevailed. Harter v. Rancho Rios Homeowners Assn., Case No. […]
Understanding the Differences Between CC&Rs, Bylaws and Rules & Regulations (CA)
For HOAs, implementing universal rules and expectations is part of what helps a community thrive. To structure these, every association has three types of governing documents: Covenants, Conditions & Restrictions (called “CC&Rs”), Bylaws, and Rules & Regulations. Read the article…………………………….
Navigating the Shadows: HOA Fraud and Community Safety (CA)
Homeowners Associations (HOAs) play a pivotal role in maintaining harmony and order in the fabric of community living. However, this structured environment is not immune to fraud and misconduct risks. HOA fraud casts a shadow over community trust and safety, raising concerns and demanding vigilance. This blog explores the intricacies of HOA fraud, offering insights […]
Say What? Court Says Boards Can E-mail (CA)
The Court of Appeals for the Fourth Appellate District recently handed down a landmark decision impacting HOA governance. In LNSU #1 v. Alta Del Mar Coastal Collection Community Association, the court delves into the issue of e-mail communications between board members. For better or worse, the court essentially eviscerates the transparency component of the Open […]
Mastering the Architectural Review Process
Reviewing architectural applications is typically part of a community association manager’s bread and butter. However, the architectural review process can be fraught with stumbling blocks, and architectural disputes with homeowners can be drawn-out, expensive affairs. A few practice tips for processing architectural applications are listed below to help master the architectural review process: Read the […]
Bridging the Gap: SB428 Expands Available Protections in the “HOA Workplace” (CA)
By now, most individuals in the industry are aware of the newly adopted AB648 (virtual meetings) and AB1458 (lowered quorum). However, SB428 is another bill that managed to fly under the radar and will ultimately have a significant impact by providing associations with a more expansive tool to protect those who serve community associations, including […]
Rules and Expectations of Managers and HOA Boards of Directors (CA)
If you have never owned a home that has a governing homeowners association (HOA), it can be difficult to sort out who does what. While collaboration among everyone involved is what helps to drive a community forward, it’s helpful to clarify responsibilities and align goals. Read the article…………………………….
The Road Ahead: Embracing EV Charging in Homeowners Associations (CA)
The transition to electric vehicles (EVs) represents a pivotal shift in our approach to transportation, marking a step towards sustainability and environmental responsibility. However, for many living in communities managed by Homeowners Associations (HOAs), the adoption of EVs brings forth the challenge of setting up convenient charging infrastructure. This blog delves into how HOAs can […]
What Happens to Owner Equity? (CA)
In past installments, we discussed why condominium projects are especially prone to a shortened service life. We analyzed why the condominium “business model” allows inadequate maintenance, leading to early deterioration. Finally, we listed the signs of failure—some obvious, some hidden—that will lead to a project’s obsolescence. In this installment, we will review what can be […]
CA FAIR Plan
Many boards of directors have been asking about the California FAIR Plan (CFP) and wanting quotes. For communities that are experiencing difficulties in obtaining property insurance, it may sound like the perfect solution, but only because details important to community associations are often left out when the media and the CA Department of Insurance talk […]
When has a Condominium Building Reached the End of its Service Life? (CA)
If you read the earlier installments of this series, you know that the service lives of condominium buildings are shortened by inspection, maintenance, and funding failures. Recognizing when a building may begin to reach the end of its service life may be easy or hard, depending on the type of failure. A catastrophic failure by […]
HOA Emergency Preparedness: How to Create an Emergency Evacuation Plan for Your Community
When it comes to HOA (Homeowners Association) emergency preparedness, having a well-thought-out evacuation plan is crucial. Disasters and emergencies can strike at any time, from natural disasters like earthquakes and wildfires to unexpected events like gas leaks or fires within the community. To ensure the safety and well-being of your community members, it’s essential to […]
New Legislation (CA)
AB 572. Assessment Limitation. Beginning January 1, 2025, new associations with affordable housing are limited to assessment increases for affordable housing to 5% plus cost of living, not to exceed 10% greater than the preceding regular assessment. This does not apply to associations with 20 units or less. “Affordable housing” means a unit occupied by […]
HOA Homefront: Understanding fair housing laws to help those who need it (CA)
California and federal law provide important protections for disabled persons. Morally and legally, doing what we reasonably can to help the disabled live as normally as reasonably possible is the right thing to do. However, requesting residents and responding HOAs don’t always fully understand the legal requirements. HOAs are “housing accommodations” under the Fair Housing […]
Important Tax Deadlines for California HOAs
While understanding tax deadlines and requirements is crucial for any HOA board, navigating through these can be complex and overwhelming. The intricacies of tax filings often require professional guidance to ensure compliance and avoid penalties. In California, HOAs are subject to various tax reporting and filing deadlines, each with its own set of requirements and […]
Mum’s the Word When Disclosure Leads to Breach of Fiduciary Duty
It is common knowledge that a director has a fiduciary duty to his or her association and its members. To be a fiduciary means that the director has accepted the highest duty imposed by the law…….This duty also obligates the director to place the interests of the association and its members as a whole over […]
Understanding the Interplay Between an Individual Unit Owners’ Policy and Their HOA Policy is Crucial for Submitting Condominium and Townhome Claims in California
Of the 39 million potential insureds making up California’s population, over 14 million – or over 35% – live in homeowners association communities. Therefore, understanding whether their property damage claims fall under their individual or association insurance policies is essential to properly recovering insurance benefits. Equally essential is understanding which policy takes priority when property […]
How to Get Homeowners Excited About Your Community for the New Year!
Membership enthusiasm plays a key role in the success of every community. When homeowners are engaged and excited, the whole community can feel it. It makes the HOA a vibrant, bustling place to live. Not only does an engaged membership support high property values, but close-knit homeowners are integral to creating a true sense of […]
2023 Year-End Review of California Legislation and Cases Which Affect Community and Homeowners’ Associations
When an Association cannot achieve the quorum required in its governing documents for a Board of Directors election meeting, this new law allows the Association to adjourn the meeting to a date at least 20 days after the adjourned meeting, and provides that only 20% of the voting members need be present at subsequent meetings […]
When Time Runs Out…Part II (CA)
The Typical Condominium “Business Model” will Not Sustain the Buildings: Condominium buildings are like rental apartments in their aesthetics and construction, with one significant difference—condominiums are mapped and built to be sold to individual unit owners. The ownership of rental apartments remains with one owner. Apartments are rented for a fixed period. Read the article…………………………….
Developing HOA Reserve Study Procedures for Specific Assets (CA)
Homeowners’ associations (HOAs) serve as the guardians of their communities. Moreover, they’re responsible for maintaining and enhancing the quality of life for residents. A fundamental aspect of this stewardship involves prudent financial planning and establishing reserve funds. Read the article…………………………….
Understanding the Importance of Reserve Study Data
Homeowners Associations (HOAs) play a crucial role in maintaining and enhancing the value of a community. To ensure financial stability and plan for future growth, HOAs must clearly understand their reserve study data. In fact, reserve study data is an indispensable asset for homeowners’ associations aiming to secure a bright future for their communities. Read […]
HOA Homefront: Could holiday charity include your HOA? (CA)
Regardless of one’s religious leanings, most agree that the holiday season is a time of generosity. Here are several ways those involved with the HOA can through generosity promote community, peace, and harmony throughout the year. Read the article………………………….
Navigating Inflation and Investments: Strategy Guide for HOA Reserve Funds
Whether your HOA reserve fund is modest or substantial, the pressing question remains: How can you best manage this crucial financial resource for your entire community? In the current climate where inflation looms large and investment opportunities are rising, understanding the intricate balance of community safety, growth, and fiscal responsibility is paramount for managing your […]
Common HOA Rules Homeowners Accidentally Break
We know rule enforcement is generally a touchy subject for HOA members. It’s the same for the HOA management company, too. No one feels great about issuing violation notices to homeowners. However, there is an important reason these rules exist at all: to protect and preserve property values by making sure that the community is […]
How California HOAs Enforce Special Assessments
HOAs offer a community-managed alternative to residential living. These areas tend to offer more amenities, such as club houses, pools, and maintained public roads and sidewalks. However, in exchange, residents are committed to paying regular dues to the managing body. Read the article…………………………….
Are California HOA Special Assessments Legal?
Living in a California homeowners association (HOA) confers numerous benefits: maintained public spaces, consistency among property quality, and more. In order to secure these advantages, the residents of an HOA pay dues to the governing body to fund communal projects and resources. Read the article………………………………….
Aging Infrastructures: Changes in Insurance Underwriting (CA)
It is no secret that the insurance industry, especially for common interest developments in California, is in crisis. After several years of wildfires and other natural disasters, carriers are not only charging higher premiums, but also revising eligibility requirements and giving greater scrutiny to insurance applications. Read the article………………………………
Embracing Sustainability: The Power of HOA Community Recycling Programs (CA)
In an era where environmental consciousness is paramount, Homeowners’ Associations (HOAs) play a pivotal role in fostering sustainable practices within their communities. Furthermore, one such initiative gaining momentum is the HOA Community Recycling Program. This comprehensive guide explores HOA recycling programs’ benefits, implementation, and key considerations. Read the article………………………………
Are Term-Limits for HOA Board Member Limited (CA)
QUESTION. I read with interest your recent newsletter that if bylaws have a term limit provision, recalled board members could not immediately run again if termed out. Two different law offices informed us that state law prohibits term limits for HOAs. Is this correct? Read the Q&A…………………………
HOA Reserve Studies: How to Identify and Mitigate Risk in Your Community (CA)
Homeowners’ Associations (HOAs) play a crucial role in maintaining and enhancing property values in communities nationwide. One essential aspect of HOA management is the creation and maintenance of reserve funds, which are dedicated to covering major repair and replacement expenses. In addition, to ensure that these funds are adequate and well-managed, HOAs often conduct reserve […]
Understanding the Uniqueness of HOAs: Why One Size Doesn’t Fit All (CA)
A common misconception in community management is the belief that one-size-fits-all HOAs. When HOA boards attempt to adopt a one-size-fits-all approach, they risk overlooking critical aspects of their community’s management. For instance, implementing a strict set of rules without considering the cultural and social dynamics of the community can lead to unrest and dissatisfaction among […]
2024 Legislative Update (CA)
Assembly Bill 572 is concerning as it directly impacts an association’s ability to increase regular assessments. Fortunately, this statute only affects associations whose original declarations are recorded on or after January 1, 2025. Read the article………………………………
Setting Expectations for Your HOA Management Company
The best relationships between HOAs and the management companies they employ are based on open communication and clear expectations. There is a lot that goes into maintaining property values. However, if you’re not exactly sure what your management company should be doing for your association, it can be difficult to determine if you’re getting the […]
Giving Thanks to the Unsung Heroes of Your HOA
When you stroll the perfectly groomed grounds of your neighborhood or enjoy a relaxing afternoon at your community’s pool, it’s easy to overlook the amount of attention and maintenance required to keep your community looking spectacular. Read the article…………………………
‘Tis the Season for HOAs: Preparing for the Holiday Season (CA)
The holiday season is a time of joy, celebration, and togetherness. Communities across the country come alive with festive decorations, twinkling lights, and the sound of carolers singing their favorite tunes. For homeowners’ associations (HOAs), this time of year presents a unique set of challenges and opportunities. Read the article……………………………