Posted On: November 29, 2011

California Enacts New Employment Laws Impacting Community Associations And Management Companies

By David Swedelson and Sandra Gottlieb, Condo Lawyers and HOA Attorneys, Senior Partners at SwedelsonGottlieb

On October 9, 2011, Governor Brown signed into law several new bills impacting California community associations as well as their managing agents who are employers. These new laws include the imposition of penalties for “willfully misclassifying” workers as independent contractors and the creation of a new definition of “gender” when interpreting California’s anti-discrimination statutes to include gender identity and transvestitism. Follow this link for a summary of some of the new laws that will have the biggest impact on California community associations and their management and vendors.

Posted On: November 9, 2011

Confidentiality Agreements; Are They Enforceable?

By David C. Swedelson, Senior Partner SwedelsonGottlieb, Condo Lawyer and HOA Attorney

We are often asked to include confidentiality clauses in settlement agreements with owners, as the board often wants to avoid other owners hearing that the association settled. The concern is that these other owners will think it is OK to violate the CC&Rs or Rules, as they will ask for the same “sweetheart” deal. We do not want them to think this way. We do not want them to know about the settlement with their neighbor.

Sometimes, we have these clauses in agreements with developers or contractors or even former association employees who want to keep the terms of the settlement confidential.

The question whether and to what extent settlements can be kept quiet through the use of a confidentiality agreement is difficult to answer. Just ask Republican presidential candidate Herman Cain, who currently faces allegations that women formerly employed with the National Restaurant Association received financial settlements in disputes over alleged sexual harassment by Cain, the former head of the National Restaurant Association.

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Posted On: November 7, 2011

Are California Homeowner Associations Required to Create Reserve Accounts?

By David Swedelson, senior partner, SwedelsonGottlieb, California condo lawyer and HOA attorney

"Homeowner Associations Are Not Required to Create Reserve Accounts?" This was the title of a recent Los Angeles Times column on community association law written by two individuals who I do not believe are really community association legal experts (one is an attorney, and the other went to law school, so why the Times has them writing this column is not understood). Their lack of HOA legal expertise is evidenced by their inane and often incorrect responses to the questions they are responding to.

I often question if the questions are real, as in over 25 years of representing California community associations, I have never encountered or even heard about some of the fact situations that they claim they are responding to. Other times, I just chuckle and shake my head (literally), as I cannot believe their responses to the questions. Usually, they are very cynical, and typically they suggest that owners sue their condo or HOA association and its board. More often than not, I am concerned that owners at community associations are reading the incorrect information that they publish and are relying on the poor advice.

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Posted On: November 4, 2011

It's November. What Are You Doing About Year-End Disclosures?

By David C. Swedelson and Sandra L. Gottlieb, California Condo Lawyers and HOA Attorneys

It's fall, and that means that most community association board members and management are busy finalizing their budgets (this applies to most community associations that have a calendar fiscal year). Unlike the old days, the budget is not all that California community associations need to be concerned about. What about all those disclosures that are required annually? Are you sure that your association is in compliance? Never fear, SwedelsonGottlieb is here with our updated annual disclosure checklist. Follow this link for a PDF copy of our checklist which we provide annually, setting out all of the statutory disclosures that California community associations are required to provide to the owners/members.

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