HOA Law Blog

October 3, 2017

Amended Civil Code Section 4775 Clarifies Responsibility for Exclusive Use Common Area — Has Your Association Adjusted to The Changes?

By David C. Swedelson, Community Association Attorney at SwedelsonGottlieb

Many California community association’s CC&Rs, particularly those in older communities, do not clearly state who is responsible for the repair or replacement of exclusive use common area. This typically relates to the waterproofing of patios and balconies at most condo associations. That is the exclusive use area defined in the CC&Rs that requires repair and/or replacement (for most condominium associations, exclusive use common area is limited to balconies, patios and parking spaces). Before January 1^st of 2017, there was some uncertainty as to who is responsible for the repair or replacement of exclusive use common area which led to disputes between associations and owners.

Fortunately, amended Civil Code Section 4775 helps clarify this issue. If the CC&Rs are not clear, we look to Civil Code Section 4775. That section, like former Civil Code section 1364, its predecessor, had since the mid 1980s provided that the association is responsible for repairing, replacing, or maintaining the common area, other than exclusive use common area, and the owner of each separate interest is responsible for maintaining that separate interest and any exclusive use common area appurtenant to the separate interest.

September 14, 2017

SwedelsonGottlieb Urges Governor Brown to VETO AB 634

by David C. Swedelson

ugly_solar_panels_on_roof_-_Google_Search-300x195 According to CAI’s California Legislative Action Committee, there is still time to stop AB 634, a bill that impacts a condominium association’s ability to control the placement of solar panels in common interest developments. BUT YOU MUST ACT TODAY BEFORE THE GOVERNOR SIGNS THIS BILL INTO LAW.

CAI reports that “AB 634 has passed the state legislature and, if signed by the Governor, will eliminate local association-approved rules and replace them with statewide mandates that allow a single homeowner to monopolize a common area roof with solar panels for their sole benefit.”

It also allows the installation of panels without regard for their impact on our community’s architectural guidelines, suitability for that particular building or roof, or any adequate protections from property or water damage.

PLEASE click here to easily email Governor Brown and ask him to VETO this bill that will hurt all of those living in our communities!

Below is SwedelsonGottlieb’s letter to the Governor:

August 14, 2017

HOA Liability for Discriminatory Harassment: A Primer

by Sandra L. Gottlieb

Title VIII of the Civil Rights of 1968, also known as the Fair Housing Act (“FHA”), is a federal law which prohibits discrimination in housing and housing-related services due to race, color, religion, sex, national origin, disability, and familial status. Because the FHA applies to entities that set terms and conditions for housing and provide services and facilities in connection with housing, it applies to HOAs and other community associations. By now, most HOAs across the country are already aware (or should be aware) that, in 2016, the U.S. Department of Housing and Urban Development (“HUD”) amended its federal housing regulations to firmly establish association liability for discriminatory conduct by its Board, directors, employees, and even by residents. Particularly concerning to HOAs are the new regulations regarding discriminatory harassment and third-party liability, which may also be the most difficult sections to understand for Board members and management.

Quid Pro Quo and Hostile Environment Harassment

Suppose that Happy Acres HOA’s on-site manager Mark has openly expressed his fondness for homeowner Helga by whistling and making cat-calls at her when she passes his office on her way to the gym. He has asked her out on dates several times, even after she declined and explained that she was married with three kids. One day, when Helga emailed Mark to request guest passes for her son’s birthday party, he responded by saying, “come see me in my office in your gym clothes and we’ll see what we can ‘work out.’”

November 11, 2016

Harbor Gate HOA Receives CAI-GLAC Excellence in Community Leadership

by David C. Swedelson

Community Associations Institute’s Greater Los Angeles Chapter held its Annual Awards Gala on Saturday, November 5, 2016. SwedelsonGottlieb congratulates firm client Harbor Gate Homeowners Association (San Pedro, California) for receiving the Chapter’s award for Excellence in Community Leadership.
Harbor_Gate_HOA_Receives_Prestigious_Award___Entries___HOA_Law_Blog___Movable_Type_Publishing_Platform.png Board members Betsy Koehler, Lois Riopelle and Carolyn Cooper were present to accept this prestigious award from Chapter President-Elect Joanne Pena, which was given to this Association because of the hard work and effort the Board undertook to pass a large special assessment for needed common area repairs and renovation work.

This Board undertook the task of pulling the membership together after several failed attempts to obtain member approval and financing for a $4 million dollar renovation project due to years of deferred maintenance. By not giving up on getting the members to see the benefits of investing in their Association and in turn their units, this Board went above and beyond for the betterment of their Association and its homeowners. The Board was successful in the passage of the special assessment and obtaining the homeowners approval to authorize the Association taking out a loan to help the owners pay the special assessment for the work. To date, the Association has completed the repairs to their roof, chimneys, siding and trim, replaced elevated walkways, waterproofing planters and decks, termite treatment, and installation of drought-tolerant plant material. SwedelsonGottlieb Senior Partner Sandra Gottlieb and associate Kevin McNiff worked with the Board to achieve it’s goals. Harbor Gate Homeowners Association is managed by Scott Management,Torrance, California whose efforts were also essential to the Board’s success. www.ScottMgmt.com

November 8, 2016

Do California HOA/Condo Homeowners Have The Right To Post Political Signs On Their Property Or In Their Windows?

by David C. Swedelson

By David Swedelson, Esq. Senior Partner, SwedelsonGottlieb, Community Association Attorneys

Posting Political Signs in the Window Considering how contentious the campaigns for president have been for the election of our next president, it is amazing that we have not received more requests from our California community association/HOA clients for advice on how to deal with political signs. The fact is that we have generally seen less political signs posted on properties then I remember in past elections. With respect to the presidential election, that may have something to do with people not really wanting to out themselves as a supporter of one candidate versus another.

Don’t get me wrong as we have received a few requests for advice from some of our association clients, just not as many as I remember from past presidential elections. In all but one of the matters that we have been requested to consult on did we find that the homeowner did not have the right to post their sign. At one association, the board did not want the owner to have their sign posted prominently in the front window of the owner’s condominium. One of the board members forwarded to me the attached article that appeared in the New York Times indicating that in New York, homeowners do not have the right to place political signs in their windows or on their property unless permitted by their association. The article (follow this link) questioned whether a resident at a community association in New York has a constitutional right to post a political sign on their property. Apparently in New York, a community association can have rules prohibiting political signs or other types of signs placed in the windows or elsewhere, depending on the associations rules.

October 23, 2016

Clotheslines and California HOAs: Not In The Front Yard Please Update to Civil Code § 4750 (Clotheslines & Energy Conservation)

by David C. Swedelson

From the Community Association Attorneys at SwedelsonGottlieb

California law now limits a community association’s ability to restrict the use of clotheslines and drying racks. Effective January 1, 2017, Civil Code 4750.10 invalidates any provision of a governing document that effectively prohibits or unreasonably restricts an owner’s ability to use a clothesline or drying rack in their backyard. This law reflects California’s tendency toward energy conscious legislation, and in fact, the law originally referred to clotheslines as “solar energy systems.”

As applied to community associations, the new law has some important limitations. For example, it only protects an owner’s ability to use a clothesline in a backyard designated for exclusive use. So, the law does not sanction an owner’s ability to use clotheslines in other areas, such as their front yard or a shared rear yard. Further, the law explicitly states a balcony, railing, awning, or other part of a structure or building does not qualify as a clothesline. So, the new law does not protect owners who string wet clothes over their balcony railing to dry.

October 23, 2016

Minimum Wage Increase Will Have An Impact On California Community Associations

by David C. Swedelson

From the Community Association Attorneys at SwedelsonGottlieb

The minimum wage is going up. As a result of a change in the law to take effect on January 1, 2017, the statewide minimum wage will gradually increase over the next six years until it hits $15 per hour. Further, Los Angeles and San Francisco already have their own laws in place to hit this mark even sooner and may see higher increases depending on the rate of inflation as measured by the Consumer Price Index (CPI).

The wage increase will affect an associations existing employees and will likely impact any association’s existing and potential vendor contracts. Roughly one-third of all California employees are paid minimum wage, and many vendors serving associations rely heavily on minimum wage employees. In the past, California has increased the minimum wage by 1-3% annually, but the pending increase represents a 50% rise over six years, which represents a considerable cost for any vendor to absorb. As a result, vendors will undoubtedly pass along their higher labor costs to the associations they serve.

October 23, 2016

New Law Requires That California Community Associations/HOAs Request That Members Provide Their Contact Information — New Civil Code § 4041

by David C. Swedelson

new_leglisation_notice_to_owners_to_provide_contact_information_-_Google_Search.png By the Community Association Attorneys at SwedelsonGottlieb.

Starting January 1, 2017, every California community association will be required to ask its members to provide their contact information and property status. New Civil Code § 4041 will require, starting January 1, 2017, that each association must solicit the following information from its members:

1. The mailing address where notices from the association are to be delivered;

October 23, 2016

Update To Fair Housing Act Requires Community Associations to Act on Discriminatory Conduct and Harrassment

by David C. Swedelson

From the Community Association Attorneys at SwedelsonGottlieb

An update to the Fair Housing Act, effective October 14, 2016, clarifies an association’s responsibility to address discriminatory conduct and harassment by its residents. The Fair Housing Act prohibits discrimination in housing and housing-related services due to race, color, religion, sex, national origin, disability, and familial status (42 U.S.C. 3601 et seq.). Quid Pro Quo and Hostile Environment Harassment and Liability for Discriminatory Housing Practices Under the Fair Housing Act

This update to the Fair Housing Act clarifies that an association is directly liable for failing to take prompt action to end any third party’s discriminatory housing practice if the association knew or should have know about it and had the power to correct it. A commentator for the U.S. Department of Housing and Urban Development stated, “a community association generally has the power to respond to third-party harassment by imposing conditions authorized by the association’s CC&Rs or by other legal authority […].”* Accordingly, an association must take some action to address any alleged discrimination by residents or other people within its authority.

August 21, 2016

Your California Condo or Coop Community Association Could Likely Benefit From An Umbrella Policy

by David C. Swedelson

By David Swedelson, Senior Partner at Swedelson & Gottlieb, California Community Association Attorneys

Protect_your_condo__co-op_or_apartment_building_with_commercial_umbrella_insurance_-_Mackoul___Associates__Inc_.png We are often asked how much insurance a condo or coop association should carry. I often respond by saying as much as the association can afford. Here is a great example of a situation involving one of our firms clients (the facts have been altered to maintain confidentiality). A woman was trying to get into a condo association and the parking arm was stuck. She and her entourage were physically trying to get the arm to move when it dropped hitting her in the leg. It hit an artery and she almost died. She suffered some permanent disabilities and then she sued the association.

Turns out the association knew about the problem and its maintenance guy had been fiddling with the equipment to get it to work. Long story short, there was little question that the association was negligent and the association’s insurance carrier paid out almost 3 million to settle the claim just before trial was supposed to start. The association had a $2 million general liability policy. Fortunately, the association also had a $1 million umbrella policy and with that additional money was able to settle a claim that had the potential for damages that could have exceed the association’s insurance coverage. This is just one of many other examples.

So, what is an umbrella policy?
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