HOA Law Blog

By David Swedelson, Swedelson & Gottlieb Partner, Condo Lawyer and HOA Attorney

These days, going “green” is all the rage. So, it is no surprise that lately we are getting more and more inquiries from boards wondering how they should respond when homeowners request authorization to install solar panels. If the owner wants to install the solar panels on the common area, such as the roof of a condominium building, the answer is easy: “NO.” Owners do not have the right to install any type of modification on the common area, and solar panels are no exception.

However, it is a different story when owners request permission to install the solar panels on their own roof. As you might suspect, the answer is more complicated. Regardless of what the association’s governing documents may say, Civil Code Sections 714 and 714.1 limit the ability of a homeowners association to restrict the installation of solar panels within a separate interest. Civil Code Section 714 says, among other things, that a community association cannot enact a covenant, restriction or condition which limits or restricts an owner’s ability to install a solar energy system. In fact, any such covenant, restriction or condition is considered “void and unenforceable”. If homeowners want to install solar panels on their separate interest (meaning on their own home or yard), they must submit an architectural application as would be required for any other exterior improvement or modification. However, because of the limitations of the Civil Code, the architectural committee (or board) cannot deny the application for solar panels simply because solar panels do not fit in with the aesthetics of the development.

Continue reading " How to Deal With A Request for Authorization to Install Solar Panels " »

It is mid-October, and many California community associations and managers are busy working on their 2011 budgets that will need to be sent out by the end of November. In addition to the budget, however, there are several other documents and disclosures that are required by California statutes to be made on an annual basis. Most associations provide those documents and disclosures with the distribution of the association's next year's budget. As we have done every year for as far back as we can remember, Swedelson & Gottlieb has published its Annual Disclosure Checklist for 2010–2011. If you are unable to download the PDF file utilizing the foregoing link, please contact Mark Petrie of our office.

You may also wish to download my recent article on Budgeting For Bad Debt.

Swedelson & Gottlieb Senior Partner Sandra Gottlieb and Karen Conlon, President and CEO of the California Association of Community Managers (CACM) have written an article providing community association boards of directors with practical tools designed to identify and implement ethical value systems for their association board members. These tools will enable board members to navigate through the complex ethical issues that can occur in the everyday administration, management and governance of a condominium project, planned development, stock cooperative or other community association. To download a copy of this important article, please follow this link.

"Most successful businesses have embraced the concept of strategic planning, and the results attained drive the direction, resources, and decisions made in the daily course of doing business. It guides the leadership and unites the employees and partners through common goals and objectives."

This is the introduction to an article on strategic planning by hoalawblog friend Debra Warren, PCAM, CCAM, CMCA, of Cinnabar Consulting. As a Community Association Manager, Management Firm CEO and Consultant, Debra should know a thing or two about this subject. She has had the opportunity to work with hundreds of communities and literally thousands of Board Members. She has had a seat at the table with some of the most successful communities and, conversely, at some of the most challenged communities.

Debra raises a good question: Since the benefits of developing a strategic plan are generally positive, why don’t community associations enthusiastically proceed along the same path? Debra’s article suggests that there are several answers to this question. One answer is simply the perception that creating a plan is complicated and requires a lot of time and money. Another answer is that many community association volunteers believe that the 30-Year Reserve Study is their plan. While this financial tool is an important part of a comprehensive plan, it does not include many factors that contribute to the overall health of the community. Some of these factors are changing demographics, local economic conditions, and aging landscaping and design elements. A complete plan will also consider the needs and wants of the individual community members.

Debra’s article suggests that one of the determining characteristics of a successful community is that it has an effective and productive Board of Directors. “Successful communities are not defined by the status of their neighborhoods or by how much money they have in the bank. They are defined by their ability to work through problems, tackle the unexpected and plan for the future. Strategic Planning for Board Members provides you with a simplified planning process that can be effective for any size community association.

This summary of Debra Warren’s article was prepared and posted here by David Swedelson and Sandra Gottlieb, senior partners at Swedelson & Gottlieb, Community Association Attorneys. Send comments or questions to David Swedelson at dcs@sghoalaw.com and to Sandra Gottlieb at slg@sghoalaw.com.

So, you are probably asking yourself what a lawsuit against Nordstrom (a department store) has to do with community associations. Plenty. Let me explain.

In a recent decision, the Court of Appeal determined that the trial court had NOT made a mistake when it granted summary judgment in favor of Nordstrom against a woman who sued the department store after the escalator she was riding stopped abruptly due to a power outage apparently caused by a nearby traffic collision (Bozzi v. Nordstrom, Inc.).

The court’s ruling was based on the fact that the woman who sued had failed to show that Nordstrom had breached any duty of care (meaning that she didn’t show that Nordstrom had been negligent) or that the escalator was defective. While her expert opined that the escalator must have been defectively designed or maintained, he was unable to state any facts to support his opinion.

What this case points out is that in order to show that the association or an owner is liable for damages from a roof or pipe leak or some other damage producing event, unless the association’s CC&Rs say that either can be held strictly liable without a showing of fault or negligence, a party (the association or an owner/resident/tenant) who claims that they have suffered damages must show that the other party somehow breached a duty and/or was negligent.

Continue reading " Woman Sues Nordstrom and Loses; No Negligence or Breach of Duty Means No Liability " »

By Tracy Neal, Esq. and David Swedelson, Esq.

This article follows an earlier post entitled To Foreclose Or Not To Foreclose; That Seems To Be The Question. We had hoped that the economy would have improved so we would not have to revisit the issue. However, board members and managers are still asking the question: Do we foreclose or not? This question is coming up more and more as banks continue to delay foreclosing themselves as they do not want to take title to the property, adding it to unsold inventory and picking up responsibility for its maintenance and the association’s assessments and fees.

The answer to the question is that boards need to seriously consider foreclosing on the assessment liens recorded against the properties of non-paying owners in order to protect the community association — and to protect the other owners who are paying their assessments. Associations need and rely upon the timely payment of assessments to pay the bills, and to maintain the common areas and other amenities. If one owner doesn't pay, the other owners have to pay and in some instances pay more. Desperate times often require desperate measures, and it may be necessary to force the hand of a non-paying owner (and subsequently the bank) by foreclosing. The ultimate goal by foreclosing is to get a property owner who will pay the assessments; in our experience, the quickest and most efficient way to accomplish this goal is through non-judicial foreclosure.

Continue reading " Part Deux: To Foreclose or Not to Foreclose, That is the Question... So What is the Answer? " »