Articles Posted in Current Affairs

In its February 2014 issue, the International Top 100 BusinessMag recently published its list of the top 100 lawyers in America, which includes our very own Joan Lewis-Heard. The magazine notes that Joan is “highly regarded by both clients and colleagues for her experience, attention to detail and ambition…” Read the full profile from the issue here. Way to go, Joan!

Sandra Gottlieb’s article, The “Art” of Taking Minutes at Your Association’s Meeting was featured in the March 2014 issue of the ECHO Journal, published by the Educational Community for Homeowners. Sandra discusses the format of minutes, the value of brevity, conduct of the meeting, objectivity, approval and retention, among other considerations.

In the California Association of Community Manager’s Spring Edition of the Law Journal, David Swedelson’s article, Payment Plans & Voluntary Liens for Special Assessments was featured on the cover. David describes the best approach to take with regard to payment plan agreements for special assessments and describes some of the pitfalls and common mistakes that are made by associations.

heart.pngFriday, February 14, 2014 is Valentine’s Day. A holiday that originated in Italy, it’s all about love, and it has chocolate and champagne as staple foods, making it very seductive. And dangerous, because it’s easy to get carried away. That is where your attorney can help. Several Valentine contracts have been floating around the Internet. We would like to share our adaptation of one that another attorney disseminated to his “romantically proficient” clients. It’s a non-binding contractual agreement for affection, hereinafter the “Valentine Agreement.”

My dearest darling [valentine’s name here],

WHEREAS, I am madly in love with [valentine’s name here], it is herein proposed that [valentine’s name here] and I agree to be bound to the present Valentine Agreement subject to the following terms and conditions hereto:

By David Swedelson and Cyrus Koochek, Community Association Attorneys at SwedelsonGottlieb

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Many California condominium and homeowner associations’ CC&Rs permit the Board of Directors, on behalf of an association, to impose a reimbursement assessment/monetary charge on a member for the cost of repairing damage caused by a member (or the member’s guest or tenant) to association common areas and facilities. In addition to an association’s authority under the CC&Rs to impose a reimbursement assessment, former California Civil Code Section 1367.1(d) stated that “[a] monetary charge imposed by the association as a means of reimbursing the association for costs incurred by the association in the repair of damage to common areas and facilities…may become a lien against the member’s separate interest enforceable by the sale of the interest…”

Unlike other monetary charges that can be imposed on members, such as monetarily fining a member for a rule violation, reimbursement assessments may be enforced by recording a lien on a member’s property. And effective January 1, 2014, the new Davis-Stirling Act now expressly requires what we have been advising our clients for years, that Boards must hold a hearing before they can impose a fee or penalty on an owner for the cost of repairing damage to the common area.
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By David Swedelson and Cyrus Koochek, Community Association Attorneys at SwedelsonGottlieb

Relocation_expenses_-_Google_Search-2.pngSince the old Davis-Stirling Act was made into law in 1985, there has been a small debate over whether an owner or their association is responsible for temporary relocation costs incurred when owners in a common interest development are required to vacate their units or homes for common area repairs. Former California Civil Code Section 1364(c) stated that the “costs of temporary relocation during the repair and maintenance of the areas within the responsibility of the association shall be borne by the owner of the separate interest affected.” On its own, this provision seems clear enough; however, because this language was found in the code section that also dealt with termite fumigation, and because it followed the provision dealing with termite fumigation, some owners were confused and debated the issue with their association’s board and management, claiming that unless the relocation was as a result of a treatment for termites, their association had to pay their relocation costs. They were confused and wrong.

Taking the location of this provision into context, it is easy to understand why confusion arose. Immediately preceding the temporary relocation costs provision was a subsection devoted to explaining whether the association or the individual owners are responsible for repairs and maintenance of areas subject to wood-destroying pests and organisms. This had led to some owners and others to question whether the temporary relocation costs provision was intended to apply only to wood-destroying pests and organisms, or for all circumstances resulting in temporary relocations. There really was no debate, as the section that dealt with temporary relocation was separate from the section dealing with wood destroying pests. But it was apparently confusing.
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paint.jpgFrom all of us at SwedelsonGottlieb, we hope you have had a joyous holiday season, and we wish you much success in the New Year!

Knowing that one of your New Year’s Resolutions is to learn and understand the new Davis-Stirling Common Interest Development Act (and if you are unsure as to what new Act we are referring to, follow this link for our article “The New Davis-Stirling Act: Get Ready”). We have also prepared a new article that discusses and explains the major changes in the New Act.

Yes, most of the language of the old Act has not changed in the new Act. But some of it has, and those changes are significant. What has really changed are the code sections themselves; longer code sections have been broken up into smaller and shorter code sections, and code sections have been reorganized so they are in a more logical order. And there have been some significant changes in the Act which you should know and understand.

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

condo.jpg_900%C3%97602_pixels-2.pngIn March of 2012, we reported on a lawsuit in Hawaii where the jury awarded $3.87 Million to a couple of condo owners In Molokai. Follow this link to read our March 27, 2012 blog post.

As we reported in 2012, a jury awarded the two Molokai residents and condo owners $3.87 million in general and punitive damages against their condominium association based on their allegations that 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.

By David Swedelson, Senior Partner, SwedelsonGottlieb, Community Association Attorneys
owners_choose_condos_-_Google_Search-2.pngIn the last year, prices for detached single-family dwellings have skyrocketed in Los Angeles. “A single-family house with a backyard is . . . a luxury,” mourned a 34-year-old financial analyst. No wonder “Southland Buyers Shift to Condos,” as an article in the Los Angeles Times put it.

All_Mailboxes__Found_638_matches_for_search_-2.pngSandra Gottlieb will appear as a co-presenter on the CAI-GLAC’s luncheon program, Trends Update: Hoarders, Board Member Hostility and Controlling Rental Tenants on Wednesday, January 15 at 11:30 a.m. at the Skirball Cultural Center in Los Angeles. Topics include:

  • Hoarders: how long can you ignore them?
  • Hostile Board Members: how to step in without being stepped on.
  • By David Swedelson and Sandra Gottlieb, Senior Partners at SwedelsonGottlieb, Community Association Attorneys
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    We are often asked if a condo or homeowners association is required to obtain FHA certification. And unless the CC&Rs make such a requirement (most do not), we generally respond with a resounding “NO!” But what has not been considered, at least until now, is whether a community association is required to even consider the matter. The answer is maybe.

    Some may be asking what the heck “FHA certification” means. In 2010, the Federal Housing Association (FHA) stopped giving spot loan approval and has been requiring that condominium developments themselves become approved if the FHA is to provide mortgage insurance within the development. The FHA, a government-owned loan/mortgage insurer, does not loan money; it insures loans made for buyers who cannot afford a conventional down payment. FHA insured loans now account for more than half of all new home loans. With an FHA insured loan, buyers can purchase a condo unit with a lower down payment (3.5% of the purchase price vs. 20% for conventional loans), lower closing costs, easier credit qualifying, with loans up to $625,500 (depending on the county where the unit is located). So FHA insured loans appeal to lower income buyers.
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