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September 9, 2005
Who Can You Complain To?
One of my website readers wrote: "I'm having trouble with my HOA (bet you never heard that before). Is there a regulatory agency that over looks HOA's and management companies? You know how attorneys have the California Bar assoc you can report them to? It there something like that for HOA's and property mgt companies? How do you make a board adhere to the governing documents and the law? I can't get my HOA to provide me with the financials and now they want to charge me for them."
There is no oversight agency for common interest developments in California but there may well be someday soon. The California Law Revision Commission worked on this for a few years and a bill was introduced early this year for such an agency. The bill was changed to a two year bill for further study. But for now, there is no agency. However, there are some bills that have gone to the Governor's desk that provide more rights for owner inspection of records and that provide higher penalties than previously available for failure to comply. These penalties are recoverable through small claims court. The bill is AB 1098. I happen to believe the bill will present difficulties for many associations, and will increase costs to all association members but the legislators felt the micromanagement was necessary because of constituent complaints.
Likewise, there is no reporting agency for managers. However, CACM certified managers have a Code of Ethics to follow and reports of improper conduct can be made to the organization (www.cacm.org) and they will be investigated. And managers who claim to be "Certified Common Interest Development Managers" that do not have the education required can be sued under the Business and Professions Code requirements.
There is a problem in getting some associations to act reasonably. Educating a board is a start. If the Board is notified of a law that is being ignored, and continues to ignore it, the board members are in jeopardy of losing important protections offered by statute and governing documents (see prior blog). Pointing this out may get the attention that is needed.
Often, one attorney letter can do wonders. Attorneys versed in this field tend to know the "buzz words" that get the necessary message across to a dilatory board. And occasionally, I hear that owners are able in small claims court to recover fees paid to an attorney when that is what it took to get a Board to act within the law or honor the governing documents.
Posted by Beth Grimm at September 9, 2005 10:40 PM