Posted On: March 30, 2012

Deferred Maintenance: Another Consequence Of The Great Recession

By David Swedelson, California Condo Attorney and HOA Lawyer, Partner SwedelsonGottlieb, Community Association Attorneys

Many community associations continue to suffer from delinquent assessments; many owners are still living in their units or homes not having paid their lender/bank or their association assessments for 2 to 3 years. Many associations are not doing enough to collect those delinquent assessments and are leaving money on the table. At many associations, the senior foreclosed, and the associations have taken no action to collect believing that such efforts would be futile. Maybe yes, maybe no. We spoke about this new community association paradigm here.

There is another consequence of the Great Recession that will likely impact many California community associations in the future; many of these associations are deferring maintenance because they don't have enough income to pay for the regular expenses, much less for extraordinary expenses such as painting. And many are not funding reserves!

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Posted On: March 27, 2012

Jury Awards $3.87 Million To Owners In Molokai, Hawaii Condo Dispute

Blog article by David Swedelson, California Condo Lawyer and HOA Attorney, Partner at SwedelsonGottlieb, Community Association Attorneys

We sometimes see community associations that are out of control, treating some of the owners or residents very badly, refusing to make repairs, perform maintenance in or around some owners’ units or homes or worse. As this case out of Hawaii tells us, this type of wrongful conduct can have disastrous results.

According to a news article, a jury awarded Molokai residents and condo owners $3.87 million in general and punitive damages against their condominium association. The couple said they were targets of threats, harassment and intimidation by an unlicensed contractor (who was alleged to have had a criminal record and was hired to do various tasks around the Ke Nani Kai Condominium in West Molokai) and the resident manager.

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Posted On: March 21, 2012

Trayvon Martin tragedy in Central Florida HOA highlights need to know what association volunteers are doing!

Blog post by SwedelsonGottlieb Partner David Swedelson, Condo Lawyer and HOA Attorney

Interesting and thought provoking article by Florida community association attorney Donna DiMaggio Berger, Esq. that addresses an issue that many of us have thought about, namely a community association's responsibility for volunteer Community Watch members as well as for the acts of other association volunteers. Follow this link to read the article.

For those that do not know the story, Trayvon Martin, a 17 year old kid was shot and killed by on February 26, 2012 by a volunteer Captain of the Neighborhood Watch in a gated Orlando, Florida community association.

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Posted On: March 16, 2012

Pets Must Be On Leashes If That Is What The Rules Say

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

Some condominium and homeowner association residents think that their pet is well trained and does not need to be leashed, and they ignore the association’s rules regarding leashes, believing they do not apply to their well-trained pet. They just do not get the fact that many people are afraid of dogs, especially when they are off leash. What they also do not understand is that just as a municipality has the power to cite a citizen for not having their dog on a leash, so too does a California condominium or homeowner association have the right to enforce its leash rules.

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Posted On: March 14, 2012

Suspension of Voting Rights, Qualifications For Serving On The Board and Related Issues

By David Swedelson, Condo Lawyer and HOA Attorney

For many associations who are preparing to hold their annual elections, boards and managers are trying to determine who is actually eligible to be a candidate for the board and who can vote. This is a big issue these days as there are so many delinquent owners. Boards and managers are questioning why an owner who is not paying their assessments or is in violation of the CC&Rs or rules should be able to serve on the board. The fact is that for many California community associations, the bylaws and other governing documents may not set out any qualifications for serving on the board. This means that even a tenant or other non-owner can serve on the board.

Follow this link for a PDF of David's full article on this subject.

Posted On: March 8, 2012

Governor Brown Signs SB 880 Dealing With Electric Vehicle Charging Stations

By the condo lawyers and HOA attorneys at SwedelsonGottlieb

As reported by the Community Association Institute’s California Legislative Action Committee (CLAC), “Senate Bill 880 leapfrogged ahead of hundreds of other bills and was signed into law on February 29, 2012. Since this bill was passed as an Urgency Bill, it goes into effect immediately.

As you may remember, in late 2011 the California Legislature pushed SB 209 through despite several flaws, and when Governor Brown signed SB 209, he admitted the bill had a number of serious flaws, such as allowing the taking of association common areas for a homeowner's private use in violation of California's Constitution and the Davis-Stirling Act (which generally requires approval of 67% of an association's membership before an owner can exclusively use common areas).

When Governor Brown signed SB 209 into law, he issued the following message:

“To the Members of the California State Senate:

Senate Bill 209 advances the important state interests of lowering vehicle emissions and decreasing dependency on foreign oil. These interests are advanced statutorily by removing unreasonable burdens in common interest developments to the installation of plug-in vehicle charging stations. Charging stations are part of the infrastructure that must be built to integrate electric vehicles into our daily lives by allowing plug-in vehicles to be recharged faster and to minimize impact to the electrical grid. I enthusiastically support this bill.

This bill, unfortunately, contains language that could permit individual homeowners to unreasonably use or occupy common areas. The author has assured me that she will pursue legislation that clearly protects the right of the common interest developments to establish reasonable rules for any use of common areas for charging stations.”

SB 880 is what the legislature calls “clean up” legislation, as it addresses the problems created by SB 209. The bill went through the Legislature on a priority basis, was signed into law on February 29, 2012, and took effect immediately.

What are the changes, you ask? Follow this link for a red-lined copy of the law showing the changes as a result of SB 880 highlighted. The statute, as revised, gives a board of directors authority to grant exclusive use of common areas to an owner to install and maintain utility lines and meters in the common area necessary to service a charging station located in the owner's garage, carport or designated parking space. This change corrects the initial version of the statute which did not clarify that the charging station itself must be in the owner’s deeded, designated or assigned parking space/area. The bill also resolves the unauthorized "taking" of common areas in violation of statute issue, as new statutory language provides that homeowner approval is not required prior to an association permitting the installation of an owner’s utility lines and meters in the common area to service an electric vehicle charging station in the owner’s parking space or area.

The new law authorizes "private" charging stations to be installed in the common area for the exclusive use of an owner, but only if installing a charging station in an owner's exclusive use common area parking area or space is impossible or unreasonably expensive. The new law requires in such case that the association and the owner enter into a license agreement for the exclusive use of the common area where the charging station is installed. It should be noted that owner approval is also specifically not required for this grant of exclusive use common area. The revised statutes can be viewed at Civil Code Section 1353.9 and Civil Code Section 1363.07.

The revised statute also gives California community associations and owners authority to install a charging station in the common area for the use of all members. It grants authority to associations to develop rules for the use of "public" charging stations, and allows associations to create new parking spaces where none previously existed to facilitate their installation. And, associations also have express authority to now create a new parking space in the common area where one did not previously exist to facilitate the installation of an electric vehicle charging station.

While we appreciate this clean up legislation, it still leaves several unanswered questions, and California community associations will undoubtedly have to address the resulting legal and practical issues of this new law. Boards of directors of associations and association managing agents are encouraged to consult with association legal counsel when addressing a request from an owner to install an electric vehicle charging station.