imageFrom the attorneys at SwedelsonGottlieb

We recently sent out an alert on the Corporate Transparency Act being blocked by a Judge from the Texas Federal Court. Specifically, Judge Mazzant of the U.S. District Court for the Eastern District of Texas issued a preliminary injunction against the Corporate Transparency Act (CTA), effectively halting its enforcement nationwide. At that point we were unsure as to what this actually meant for California community associations. We now have more information and good news.

We now know that the Financial Crimes Enforcement Network (FinCEN), which oversees Beneficial Ownership Information (BOI) reporting, has issued a formal statement addressing the matter. While the FinCEN’s statement is available on its website at https://fincen.gov/boi, for convenience, we provide it here.

Did you Know?

California Senate Bill 900, which was signed into law in September 2024, has brought significant changes to the California Civil Code by amending Sections 4775 and 5610(c).

Under the updated Section 4775, unless otherwise specified in an association’s declaration, the association is now responsible for repairs and replacements related to interruptions in gas, heat, water, or electrical services that originate in the common area, even if they extend to other areas. If an association faces financial challenges due to these added responsibilities and lacks sufficient reserve funds, it can secure a loan without needing a member vote and levy an emergency assessment to repay the loan.

Election-Year Etiquette: Tips for Keeping Board Meetings Civil

As we are living through an election year, we can expect heightened passion around political views, some of which may surface at our Community Association Board meetings. The energy and enthusiasm that come with election season can sometimes lead to heated debates and discussions.

While Board meetings are an excellent opportunity to address important community issues, they are not intended as platforms for political debate regarding local, state or federal issues. Nevertheless, avoiding political discussions entirely during this period might be challenging due to the current political climate. Open and respectful dialogue is valuable, but it is best conducted in appropriate settings designed for such discussions.

Condominium Balcony, Stair and Walkway Inspections and Repairs: January 1, 2025 State-Mandated Deadline.

Background

On January 1, 2020, the State legislature added California Civil Code § 5551 to require condominium associations with certain elevated exterior elements (“EEEs”) such as decks, balconies, walkways, stairs, and related railings to be inspected by January 1, 2025. This new law is often referred to as the “Balcony Bill” or SB326 as that was the bill number before being passed into law in year 2019. The cause for this legislation was due to the collapse of a balcony that caused several deaths and so the purpose of these inspections is to make sure EEEs are safe to use and if unsafe, limit access until such EEEs are repaired.

ADUs: Strategic Solution to California’s Housing Shortage

Recent California laws enacted in 2023 and 2024, make it easier for homeowners to obtain permits for building accessory dwelling units (ADUs) on their lots. An ADU is an additional residential structure built on the same lot as a primary structure. These new California laws were enacted to increase the housing supply across the state, which, by doing so, significantly amends California state laws in favor of homeowners who want to build ADUs on their properties.  The new laws have an astounding impact on the changes to housing infrastructures. Below is a breakdown of the changes to the process of approving an ADU, the location of where an ADU may be constructed, the allowable size of an ADU, and the occupancy and ownership rights that homeowners now have in relation to their ADU.

The Process

Contact Information