Online short-term rental brokers (think AirBnB, VRBO and HomeAway) are here to stay. While the new sharing economy has opened up lots of opportunities for homeowners to generate additional income, these peer-to-peer business models can create headaches for homeowners associations. This is an issue that many San Diego, Inland Empire and Orange County HOA management […]
The Art of leading a Successful Board Meeting (CA)
Let’s face it – no one looks forward to attending anassociation board meeting. At best, a board meeting is just another to-do item on a board member’s already busy schedule. At worst, a board meeting is a multiple hour scream fest where volunteer directors who are doing their best to run a corporation get publicly […]
Mold/Damage Claim: California Appellate Court Addresses Causation Question
A California Court of Appeal (“Court”) addressed in a July 2nd opinion an issue associated with a damage claim involving mold/water intrusion. See Longmire v. 1022 10th Street, Inc., Court of Appeal of California, B288063. The Court reviewed a jury’s finding of whether a defendant was a substantial factor in the damages allegedly caused by […]
Homeowners Were Not Catalysts For Easement Agreement Assumption, Because They Wanted A More Expansive Amendment (CA)
In Lemley v. Aliso Homeowners Assn., Inc., Case No. B288789 (2d Dist., Div. 3 July 3, 2019; posted July 5, 2019) (unpublished), HOA and homeowners got entangled in an easement agreement dispute in which homeowners wanted specific performance/declaratory relief to enforce an amendment to the agreement, while HOA defended on the principal grounds of mootness […]
Court of Appeal Upholds Pre-Litigation Arbitration Clause (CA)
We recently blogged about the importance of the the plain language of an association’s Declaration when following pre-litigation requirements to a construction defect claim. On March 18, 2019, the California Court of Appeal ruled that trial courts should not deny a homeowner of his right to submit a case to arbitration pursuant to the CC&Rs […]
HOA Homefront: Tips on how to create, run HOA committees
A committee should have at least three or four members. When a committee dwindles down to one or two persons, it is no longer a committee and should be restocked with volunteers or disbanded. Read the article………………
U.S. Supreme Court Holds Debt Collection Firms that Solely Practice Non-Judicial Foreclosure Exempt from FDCPA*
It is no secret that homeowners’ associations (“HOA”) are run and managed through the funds of monthly HOA assessments (“Fees”), and more often than not, HOA’s hire and retain debt collection firms to collect on past due Fees from delinquent members of the community. Sometimes, this leads HOA’s to lose large amounts of money in […]
Surpassing Expectations: How HOA Management is Evolving
In today’s world you can rent a movie, order a meal and make a stock trade with a few clicks—so why does HOA management seem to be stuck in the past? Other management companies have tried to address this question by piling more technology into their processes. However, we took a more holistic approach. Here […]
The Nitty-Gritty of Your Governing Documents
Homeowners are often overwhelmed at all the information contained in their HOA’s governing documents. It’s no wonder— an association’s covenants, conditions & restrictions (CC&Rs), bylaws and rules & regulations are packed with information, some of which is written in dense legalese. Read the article……………………
Condo Maintenance: Who is Responsible for Upkeep and Repairs?
Condominium associations typically are obligated to maintain and repair common areas, but the burden may be shifted to owners when forced by overwhelming conditions. For example, consider the situation faced by this 18-unit, four building condominium complex in Los Angeles. Read the article……………………….
Do We Finally Have an Answer to the Age Old Question: Is the Association liable for damages to a unit when the roof leaks? (maybe…)
The facts in this LA case, Sands v Walnut Gardens Condominium Association, are simple. Pipes on the common area roof leaked causing water damage to the owner’s unit. According to the manager’s trial testimony the Association performed no preventative maintenance even though it would have been desirable; he said the roof and pipe had not […]
Homeowner Prevailing In Unlawful Foreclosure Of Condo Unit Case Was Entitled To $434,000 In Damages And $720,000 In Attorney’s Fees (CA)
Yikes! Talk about a change in fortune based on a prior appeal. Homeowner finally won, obtaining damages and substantial attorney’s fees for hanging in there to the end. In Multani v. Castle Green Homeowners Assn., Case No. B278397 (2d Dist., Div. 7 May 28, 2019) (unpublished), HOA earlier won a summary judgment and $90,000 in […]
Association Hazard Insurance Policies Benefit not only the Association but also all Condo Owners (their tenants) and Mortgagees
Both Commercial and Residential Condominium CC&Rs frequently contain insurance language requiring the Association to obtain hazard (fire) insurance and prohibiting Owners from obtaining such coverage. Condominium Owners on the other hand are limited to obtaining liability insurance. Similar language was found in the CC&Rs of the condominium association in Western Heritage Insurance Company v. Frances […]
HOA Homefront – Open Forum guidelines for directors and members (CA)
The “Open Meeting Act” (Civil Code Sections 4900-4955), requires at Section 4925(b) that all membership meetings and board meetings have a time set aside for members to speak. This time is often called “open forum.” In open forum, a member can speak on topics on or off the agenda. Some associations avoid open forum and […]
Pet Rules: What can your HOA really do? (CA)
Our HOA recently voted to update our CC&Rs. One section prohibits ownership of numerous breeds of dogs the board considers dangerous. Since California law (Food and Agri. Code 31683) outlaws dog breed discrimination by counties and cities, we are the only HOA in the region that bans ownership of certain dogs. Isn’t it illegal under […]
Recent California Court of Appeals Ruling Demonstrates Broad Reach of Ban on Nuisances
The Court of Appeals recently rendered an unpublished opinion in Harbour Island Condominium Owners Association, Inc. v. Alexander (2019), which provides some clarity regarding a tenant’s right to attend board meetings and the ban on noxious activities within the community. Read the article……………………
What Happens to the Homeowners Association Fee When a House is Foreclosed? (CA)
Common interest developments, such as condominium projects and planned-unit developments, usually involve an additional monthly fee. A homeowners association, or HOA, levies the same fee for each owner within the community. HOA fees fund the everyday maintenance, services and tasks of the HOA, and therefore are mandatory. The homeowner remains responsible for his share of […]
HUD Rule Changes How HOA’s Address Neighbor Disputes
Historically, Associations have avoided interjecting in neighbor-to-neighbor disputes. Heavy walking, loud parties, surround sound systems, and slamming doors were just a few of the commonly voiced resident complaints, and up until now, the response from most Association Boards was that the residents must settle these matters amongst themselves. Read the entire article……………………………….
A Road Paved with Good Intentions (CA)
As the California legislature expressed in the stated legislative objective behind Civil Code section 4515: “The homeowners’ associations that operate the common interest developments (CIDs) are quasi-governmental entities with great power over the lives and property of their residents, including powers exceeding those of local governments. Unfortunately, those powers have too often been used to […]
Workplace Harassment in a HOA Environment
Workplace harassment and hostile work environments are nothing new for management professionals. Emotionally charged conversations can become uncomfortable and antagonistic for many managers. Unfortunately, such dialogue frequently crosses the line from demanding direction to demeaning personal attacks. Read the article……………………
Voter Apathy Not a Required Showing in a Petition to Reduce Percentage of Affirmative Votes Required to Amend CC&Rs (CA)
Amending a HOA’s Declaration of Covenants, Conditions and Restrictions (“CC&Rs”) can be a challenging endeavor. This is true, in large part, to the onerous approval requirements imposed by the CC&Rs themselves. Indeed, many CC&Rs require a super-majority (i.e., 67% or more) of the HOA’s members to approve an amendment. Such requirements make it difficult for […]
Court rules Wausau Underwriters Insurance owes duty to defend in construction defect lawsuit (CA)
A federal court has granted an insurance company’s motion for partial summary judgment in a case involving one of its insureds which is facing allegations of manufacturing defective plumbing products for a condominium construction project. According to the March 29 order of the U.S. District Southern District of California written by Judge M. James Lorenz, […]
ARBITRATOR DISMISSES $5 MILLION CONSTRUCTION DEFECT CLAIM FOR HOMEOWNER ASSOCIATION’S FAILURE TO COMPLY (CA)
There is an increasing trend by Developers, in an effort to avoid responsibility for construction defects, to insert provisions in the original Association governing documents which they draft that make it exceedingly difficult to pursue such claims against them. The significant harm of these ‘poison pill’ provisions was highlighted in the recent California Appellate Court […]
Court Bars Fire Insurer’s Subrogation Claim Against Condominium Tenant as Implied Co-Insured Under Lease and CC&Rs (CA)
In Western Heritage Ins. Co. v. Frances Todd, Inc. (No. A152428, filed 3/4/19, ord. pub. 4/2/19), a California appeals court held that a condominium association’s fire insurer was barred from suing a tenant in subrogation for fire damage under the rule that an insurer cannot subrogate against its own insured. The lease and the association […]
Making Arrangements for Arrears of HOA Dues (CA)
People who live in condominium units automatically become members of homeowner associations that maintain common areas, institute rules and regulations, set up budgets and establish maintenance fees paid by unit owners. When owners fall behind in those dues, the association board of directors has the authority to begin a process that ultimately could end in […]
How to Enforce Bylaws in Condominiums (CA)
An important aspect of condominium life is knowing how to resolve disputes and enforce the homeowner association bylaws. California law sets forth the basic condominium rules in the Davis-Stirling Common Interest Development Act. Your HOA governing documents, such as the Declaration of Covenants, Conditions and Restrictions or CC&Rs, may have additional rules. In most situations, […]
Tenants Rights in California Condo Association
The word “condominium” denotes a form of ownership in which unit owners share ownership of common areas such as roads and recreation facilities. Condo buyers automatically become members of homeowners associations that establish bylaws and rules detailing the members’ responsibilities and rights. State statutes and governing documents of homeowners associations spell out an owner’s rights […]
$19,233 In Attorney’s Fees And $815 In Litigation Costs To HOA Obtaining Injunction To Require Access To Condo Unit To Make Repairs Affirmed (CA)
In Durant Towers Owners Assn. v. Winchester, Case No. B288966 (2d Dist., Div. 8 March 29, 2019) (unpublished), HOA sued defendant condo owner to obtain access to her unit in order to determine if water leakage from her unit was causing damage to a unit below. After ignoring efforts for voluntarily cooperating, HOA sued under […]
Trial Court Properly Denied Fee Recovery To Prevailing Defendants Under Davis-Stirling Act Or Civil Code Section 1717 And Properly Struck The Costs Memorandum (CA)
In the fee area, you must have a solid fee entitlement basis and you usually have to apportion costs where there are several prevailing defendants rather than claim total costs without an appropriate allocation. Schuchmacher v. McDermott, Case No. B288130 (2d Dist., Div. 3 March 28, 2019) (unpublished) is a case where prevailing defendants obtained […]
HOA responsibilities for homeowners being sexually harassed by other homeowners (CA)
Homeowner associations are notorious for issuing notices for the smallest infractions, so why are they silent when it comes to sexual harassment? The California Department of Fair Employment and Housing (“DFEH”) receives and investigates fair housing complaints based on numerous protected statuses. In 2017, a total of 212 claims were filed that alleged sex or […]
Architectural Variances Binding Future Owners (CA)
Asked – We are thinking about granting a variance to the Covenants of our Homeowner’s Association. The question is: would the Variance, if granted, apply to the next landowner (i.e., does the grant of a variance run with the land)? Read the Q&A…………………..
No Abuse of Discretion In Awarding Prevailing Plaintiff $114,990.75 In Lawsuit Against Homeowners Association (CA)
The Broadway Hollywood is a 10-story historical building on the corner of Hollywood and Vine. It was constructed in 1927 and originally used as a store. However, the building was abandoned in 1987 and remained vacant for 18 years – until it was revitalized and converted from an obsolete building to modern use. Today the […]
Homeowner Plaintiffs In A Common Interest Development Dispute Over Assessment Liens Must Pay Prevailing Party Defendants $125,796.50 In Attorney Fees (CA)
The Davis-Stirling Act (Civ. Code section 4000 et seq.) governs the creation and operation of common interest developments, and requires such developments to be managed by a homeowners association, which homeowners are generally mandated to join. In Bertoli v. Dennis, Case No. A150924 (1st Dist., Div. 5 March 5, 2019) (unpublished), a Board of Governors […]
Homeowner Associations, Section 1717: One Homeowner Prevailing Over Another In Dispute Over Location Of A Fence Was Entitled To Fee Recovery Under Civil Code Section 1717 (CA)
In Hunkel v. Gerhardt, Case No. H044753 (6th Dist. March 12, 2019) (unpublished), two neighboring homeowners squared off in a dispute over the placement of a fence by one homeowner group. The defendant homeowners claimed that there was no proper board of directors making a decision on the fence dispute, a position ultimately embraced by […]
How to Get Homeowners Excited About Your Community
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, close-knit homeowners are integral to creating a true sense of community. […]
HOA decision given judicial deference (and a special election recommendation) (CA)
Our resort community is loaded with homeowners associations – governed by a law known as the Davis Stirling Act. Being on a homeowner board is often a thankless job, but California courts have made it easier. Read the article…………………..
Courts Will Defer to the Decisions of Boards Based on Good Faith and Regard for the Best Interests of the Community (CA)
In Eith v. Ketelhut, No. B272028 (Cal. Ct. App. Dec. 17, 2018), a homeowners association featuring estate properties where members maintain fruit orchards and vineyards yielding fruit that can be made into wine and offered to the public for sale required the Board of Directors (“Board”) to determine if sale of products made from fruit […]
Condominium Conversions Defect Actions Under California Law: Not Your Run-of-the-Mill Defect Case
Condominium conversions may present developers and contractors with both additional defenses and potential liability pitfalls when a defect action is subsequently alleged by an HOA. On the plus side for the converter, unlike new residential construction projects, California Civil Code Section 896, which is commonly referred to as “SB 800,” or the “Right to Repair […]
Recent California Court of Appeal Ruling Limits Anti-SLAPP Protection for Actions by Board of Directors
The recent unpublished opinion of Chemers v. Quail Hill Community Association et al. (2018) shines some light on the oft-misunderstood California Anti-SLAPP statute and its effectiveness as a defense for actions by a homeowners association’s board of directors. The Fourth District California Court of Appeal held that certain actions by the board in a dispute […]
HOA Homefront: Outstanding directors understand how this role is DIFFERENT (Part 3)
All the knowledge and experience from the working world (“day job”) can actually hinder a volunteer’s effectiveness in the world of HOA governance if the differences between the two worlds are not understood. Outstanding directors have learned that much of what worked for them in their day job will likely work poorly in the context […]
When Raising HOA Dues Is a Good Idea
Dues are always a hot topic for HOAs. The collection and allocation of dues can be a touchy subject for the membership since it directly affects their wallets. However, successful homeowners association management wouldn’t be possible without everyone sharing the cost. Board members are put in a tricky situation: they want to please the membership […]
AB 2912 Fraud and Embezzlement//Fidelity Bonds & Financial Review (CA)
It is no secret that community associations are often targets for embezzlement. But they are not alone. Newspaper articles tell us that it happens to various types of businesses and organizations, even attorneys and lawyer/bar organizations. Fraud and embezzlement seems more likely to occur when no one is watching those that control the checkbooks. And […]
California Legislature Fixes the Law on Member Notice & Notice of Rule Changes-Amends Civil Code §4040 and Civil Code §4360
Through SB 261, the California Legislature fixed some issues with prior legislation and took a step closer to efficiency. This bill became effective in January 1st and amends the following existing sections of the civil code as stated: Read the article…………………..
HOA Obtaining Preliminary Injunction To Aid Fumigation Of Separate Units Was Prevailing Party Entitled To Fee Recovery (CA)
Although we do not know the amount of fees awarded below, the homeowners in Windham at Carmel Mountain Ranch Assn. v. Lacher, Case No. D071799 (4th Dist., Div. 1 Jan. 16, 2019) (unpublished) obviously were dismayed when the lower court awarded HOA fees after the trial judge issued a preliminary injunction in favor of the […]
Who Does What? Common HOA Management Duties Defined
Some of the most common questions we receive are from homeowners who are unclear about how the property management company fits into their HOA-governed community. It’s understandable: HOA management is full of industry jargon, mysterious acronyms, and documents with complicated names. In this article, we’ll provide a succinct, easy-to-understand outline of common HOA management duties, […]
5 Resolutions to Make You A Gold Star Member in Your HOA
If you regularly attend board meetings, pay your HOA fees on time, volunteer on a committee, and read the monthly newsletter, you may already be an all-star member in your homeowner’s association. But if you find that you aren’t consistently doing those things, then the new year is a great opportunity to start. Below are […]
Case Law: Artus v. Gramercy Towers Condominium Association (CA)
The Association sought to amend its bylaws to eliminate cumulative voting. The Association’s Board distributed the secret ballots and sent a two-page letter soliciting membership support for the proposed amendment and providing the Board’s rationale for the amendment. The Association also posted neutral notices in the elevators urging members to vote. At the time, the […]
Does The Business Judgment Rule Extend To A Board Interpretations? (CA)
The California Supreme Court has adopted a rule of deference to most decisions made by community association boards: “Where a duly constituted community association board, upon reasonable investigation, in good faith and with regard for the best interests of the community association and its members, exercises discretion within the scope of its authority under relevant statutes, […]
Bah Humbug! What to Do if an HOA Board Member is a Scrooge
There seems to be one in every homeowners association. That one HOA board member that consistently disagrees, goes against the majority, or at the very least enjoys playing devil’s advocate. Do you have a Scrooge – a mean spirited, miserly person – on your Board? There are ways you can deal with them. Read the […]