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California

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Community Association Disclosure Checklist 2008



HOA Should Be Sure Workers are Insured California homeowner associations (HOAs) and HOA management companies will want to pay attention to a recent ruling coming out of the state's Second Appellate District. The case, Heimen et al. v Worker's Compensation Appeals Board, involved the claim of a worker injured on association property for worker's compensation benefits.   Read more
State Laws
Newsletters/Blogs
California Condo & HOA Law

California Condominium Law

 Anderson& Kriger Law Firm has a number of articles and a quarterly newsletter

 The law firm of Berding & Weil has a large number of articles and current information about CA's law.

California Law Journal Summer 2007 from CACM (PDF)

ECHO Newsletter  Main page ("Join our mailing list")
State Resources
California Dept. of Consumer Affairs - links to helpful consumer information regarding homeowners associations and Common Interest Developments:

California Law Revision Commission - The objective of the common interest development law study is to set a clear, consistent, and unified policy with regard to the formation and management of common interest developments and the transaction of real property interests located within them.

Insurance Information Network of California -
Condo Insurance
Publications
 
 
Legislation  
SB-800 and Its Effects on Decks and Their Warranties and Maintenance Of the top-ten building component items that get named in suits as being defective, waterproof decks are high on the list, despite the fact that they aren’t found on every association. Windows and doors, roofs and foundations—since all are found on every house built, it seems natural that they would be on this top-ten list. Waterproof decks are built on perhaps 30-40% of new houses and around 50-60% of condominiums. Decks add an extra "room" to a unit and definitely add value, as people love an outdoor space to call their own and will pay more for a condominium that has a private deck. Read more

Agenda Must Be Included in Notice of HOA Meeting - California Governor Arnold Schwarzenegger recently signed into law Senate Bill 528 (Aanestad), a bill intended to "add greater transparency" to the Common Interest Development Open Meeting Act, which sets forth rules governing the manner in which common interest development (CID) meetings are conducted.

2007 Legislation (summary from ECHO, as well as links)

1353.8.  The architectural guidelines of a common interest development shall not prohibit or include conditions that have the effect of prohibiting the use of low water-using plants as a group.
Resources
California Legislative Action Committee - CAI backed legislative tracking and lobbying group
California Association of Community Managers (CACM)
California Association of Homeowner Associations
Executive Council of Homeowners (ECHO)

    Echo E-Newsletter
CAI - Orange County Chapter
CAI - Greater Inland Empire
CAI - San Diego Chapter
CAI - Greater Los Angeles Chapter
CAI - Bay Area Chapter
CAI - California North
CAI - Channel Islands
CAI - Coachella Valley
 
Directory

Northern California Directory

Southern California Directory
Case Law
An Historical Overview of California Case Law for Common Interest Developments 1996-2003
Articles
Exclusive Use Common Area – The Basics - In condominium living, one area of much confusion and dispute revolves around the concept of exclusive use common area. What is it, who controls it, and who takes care of it are often bones of contention between residents and their association. Many disputes can be avoided by making sure that the owner, the board and the manager understand exclusive use.
Maintenance... It’s a Paying Job! - Reserve study providers are often asked the question... how long will it last? And our standard answer is... it depends!  There are a number of factors that dictate how long a particular component will last, including:
Water Conservation in the Landscape - It has been said that rich people do not necessarily make a lot more money than everyone else; it’s just that they are far more reluctant to spend it.  Where landscape economics are concerned, we could all be a lot richer by cutting back on the amount of water applied to lawns, shrubs, flowers and trees.

Management companies can charge collections fees (CA case)  In a ruling handed down last week, the Court of Appeal ruled that management companies are allowed to charge a fee for the collection of delinquent assessments. The plaintiff, a homeowner in an association in Orange County California, argued that Section 1366.1 of the Civil Code prohibited associations, including their managing agents, from charging a fee in excess of their costs to collect delinquent assessments. She claimed that management companies were making a profit by charging delinquent owners for "late letters" and 'lien letters" which violated the Davis-Stirling Act.  The Court of Appeal disagreed.  (Thanks to www.davis-stirling.com) (PDF)  read opinion

VIEW PROTECTION: Is It Possible? For most people, the purchase of a home represents the single largest investment that they will make during their lifetime. This is especially true in California, where real estate prices are soaring to all time record highs. So it is no wonder that people who pay extra for a view or a “premium lot”, as many developers prefer to call it, are eager to find a way to protect that view. In fact many such purchasers of premium lots are dismayed to later discover that their view is not protected absent an express written agreement or restriction.

Holding Successful Annual Meetings - It's that time of year again - ANNUAL MEETING TIME! What can you do to make the process as simple as possible? START EARLY! The Corporations Code and many Bylaws require that notices be mailed 10-90 days prior to the meeting. Bylaws may vary on this requirement (some say 30 - 60 days), so check your Bylaw provisions to be sure you are in compliance. If you've had problems getting a quorum at your Annual Meeting (and who hasn't?), we suggest you get that notice and proxy out early - 60 to 90 days before the meeting.
An Introduction to CID's
Day Care Centers in an Association
The Most Ignored Law in California (Open Meetings) (PDF)
When Monthly Board Meetings Last a Month
Knowing and Protecting Board Immunity (PDF)
Member Of Condominium Association Lacks Standing To Sue Condominium Board’s D&O Insurer
What Every Association and Manager Should Know About Contracts and Mechanics Liens
The California Supreme Court Clarifies The Confusion Surrounding Employment At-Will - The concept of "at-will employment" to most people signifies a relationship which can be terminated for any reason at any time. However, the statutory presumption of at will employment created by Labor Code §2922 is, in fact, subject to various limitations.
CAI 2002 LAW SEMINAR California Case Law Summary and Additional Cases
ALTERNATE DISPUTE RESOLUTION IN HOMEOWNERS ASSOCIATIONS - Formerly, if disputes in homeowners associations could not be resolved, they wound up in court.  For all concerned, this was time-consuming and expensive.3   Looking for a way to help homeowners associations resolve their disputes (instead of landing in court), the California legislature enacted Civil Code §1354.  The text of Civil Code §1354 can be found in Section III of this monograph.
 
Articles

Insurance Recovery Advice  To help navigate the insurance recovery process, the Insurance Information Network of California offers the following advice to those whose property has been damaged or destroyed:   To download a copy of the PDF brochure

Planned Developments in
California: Private Communities and Public Life (Public Policy Institute of California)  Nearly three million California homes, one-quarter of the state housing stock, are located within common interest developments (CIDs)
such as planned developments, condominiums, and cooperatives.
Moreover, this proportion is ever-increasing, with CIDs accounting for 60 percent of residential construction starts during the 1990s.


VIEW PROTECTION: Is It Possible? - Generally, in California, there is no right to air, light or an unobstructed view. No matter the facts, the law will not find that there is such a right by implication or prescription.
Eighteen Things You Must Know about Meetings, Minutes and Rules Enforcement -
Eighteen Things You Must Know About Meetings, Minutes and Rules Enforcement
Lawn Diseases: Prevention and Management
FACT or FICTION:  President may only vote in case of tie
To Tow or Not To Tow - That is a Question of Liability
Assessment Collection: Available Legal Procedures
Board Member Fiduciary Duty: A Nuts and Bolts Approach
Court Appointment of a Receiver to Run an Association
Can a homeowners association prohibit children from using the spa?
The Impact of Construction Defect Litigation on Condominium Development (PDF)
Recall Elections, or... The Kind of Stuff Lawsuits Are Made Of
Court Validation Of CC&R Amendments
MATERIAL ALTERATION OF THE COMMON ELEMENTS: OWNERS DON'T ALWAYS HAVE A RIGHT OF APPROVAL
A LITTLE REASON NEVER HURT!
Ballot Wars (PDF)- Believe it or not, there is a difference between a “Ballot” and a “Written Ballot” (also called a Ballot and Written Consent). Unfortunately, the differences can create a lot of confusion for directors and managers when it comes to membership meetings.
Conducting Director Elections - Usually once each year, a community association1 will conduct an election of directors. In some associations all directors are elected every year for terms of one year each. Other association’s have provided for “staggered” director terms with only some, but not all, directors being elected each year to terms which are usually either two-year or three-year terms.
Surety Bonds:  Protection for Owners Before the Work Starts (PDF) - Property owners and asset managers need to be familiar with surety bonds, how to use them and the process of obtaining them.
The Mold Problem - Contamination of residential properties by toxic mold and mildew is becoming more and more prevalent. Although mankind has been aware for thousands of years that mold thrives in damp conditions, only recently have we begun to understand how dramatically its presence can impact us.
Is The Empire Clothed?    I just finished reading and article from Professor Evan McKenzie entitled “Homeowners Associations and California Politics” [1] In this informative article about our industry, Professor McKenzie sought to explore the political ramifications of CID’s within California due to the shifting of burdens normally carried by municipalities to Homeowner Associations

 Recent Trends in Business Judgment Rule and Other Standards of Review (PDF) - Usually once each year, a community association will conduct an election of directors. In some associations all directors are elected every year for terms of one year each. Other association’s have provided for “staggered” director terms with only some, but not all, directors being elected each year to terms which are usually either two-year or three-year terms.

Legal Articles

Beth Grimm's Top Ten Ways to Stay Out of Legal (and other) Trouble  

I recently gave two programs on this topic to groups of board members and managers and it went over so well I decided to share the tips in an article. The concepts are simple; however, they are undeniably important in this world of turmoil and stress, where people seem quite easily agitated.

  - Part I      -Part II

Blanket Liens Against Condominium Complexes and Their Effect on Individual Condo Owners    Condominium homeowners associations routinely hire contractors to perform work on areas of their condominium complex. A few mechanic’s lien issues arise as the result of the fact that the “property being improved” includes not only the common areas, but the individual condominium parcels.   read more

Management companies can charge collections fees (CA case)  In a ruling handed down last week, the Court of Appeal ruled that management companies are allowed to charge a fee for the collection of delinquent assessments.  The plaintiff, a homeowner in an association in Orange County California, argued that Section 1366.1 of the Civil Code prohibited associations, including their managing agents, from charging a fee in excess of their costs to collect delinquent assessments. She claimed that management companies were making a profit by charging delinquent owners for "late letters" and 'lien letters" which violated the Davis-Stirling Act.

The Court of Appeal disagreed.  (Thanks to www.davis-stirling.com) (PDF)  read opinion

COMMON INTEREST DEVELOPMENTS AN HISTORICAL OVERVIEW OF CALIFORNIA CASE LAW   The purpose of this paper is to provide an overview of the history of California CID case law in selected areas. The paper first examines the recent CC&Rs enforcement case, Nahrstedt v. Lakeside Village Condominium Ass'n, its precursors and progeny, and then discusses the major cases in the areas of HOA negligence, fiduciary duty and restricting public access to CIDs.  read more

New Elections Laws

Here are some links about the new law governing association elections:

California Condo Guru

HOA Elections

SB 61- Changing the way we conduct "Big" votes

SLAPP:  The First Amendment and Community Association Politics (PDF) - Usually once each year, a community association1 will conduct an election of directors. In some associations all directors are elected every year for terms of one year each. Other association’s have provided for “staggered” director terms with only some, but not all, directors being elected each year to terms which are usually either two-year or three-year terms.

What Every Association and Manager Should Know About Contracts and Mechanic's Liens  Most associations must deal with contracts and related issues on a daily basis. Contracts come into play in hiring management personnel, employees, landscapers, contractors and in purchasing or procuring various services. My experience as a legal representative tells me that a large majority of association directors do not necessarily understand the benefits of a written contract. read more

Virtually Legal - Technology & Its Impact On Association Operations - It is tempting to incorporate as many of these high-tech luxuries into your association's day-to-day operations as possible. The question is, in an industry where the legislature regulates how business is conducted, just how far can you go to use the Internet for association operations?
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