By Sandra Gottlieb and Cyrus Koochek, SwedelsonGottlieb, Community Association Attorneys

screen-capture-15.pngMany California condominium and homeowner associations end up with units and homes after foreclosing on assessment liens with no third-party bidders at the foreclosure sales. With increased equity, we are seeing more third-party bidders at sales. But that still leaves a lot of associations in the position of being landlords. And many boards do not know the first thing about being a landlord.

This summer, firm partner Sandra Gottlieb and associate Cyrus Koochek wrote an article that was published in CACM’s Law Journal entitled “Successfully Maneuvering Through Post Foreclosure Evictions and Rentals”. Their article provides guidelines for dealing with issues such as compliance with legal requirements, preparing for tenants, lease terms and rent skimming laws. Follow this link to read their informative article, especially if your association owns or may be in the process of taking ownership of any unit or home.

David Swedelson, Partner, SwedelsonGottlieb, Community Association Attorneys

The_Community_Association_Law_Blog__Does_your_board_undertake__Due_Diligence__.pngWe community association attorneys are fond of telling boards of directors that they need to “do their due diligence” before making important decisions, especially those that may have a lasting impact on their associations. That being said, just how many board members actually understand what steps are needed to fulfill that directive? That was the question posed in an article on this issue by Florida community association attorney Donna DiMaggio Berger. Follow this link to her blog post.

Donna states a definition of “Due diligence” as an investigation of a business or person prior to signing a contract, or an act with a certain standard of care. But as Donna goes on to state, that definition is not likely going to be enough for some boards or managers to map out a plan. The steps required for a board to perform the required due diligence will vary depending on the circumstances. Donna lays out some examples; I use them with modifications and add some suggestions:
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By David Swedelson, Partner, SwedelsonGottlieb, Community Association Attorneys

superlien.jpgThe Nevada Supreme Court recently ruled that a super priority lien held by a Nevada homeowners association can extinguish a first deed of trust on a property. The Court stated: “With limited exceptions, this lien is ‘prior to all – other liens and encumbrances’ on the homeowner’s property, even a first deed of trust recorded before the dues became delinquent”

The Las Vegas Review-Journal reports that this decision will create a windfall for some real estate investors in Las Vegas who picked up properties for pennies on the dollar.
I have previously written an article that addressed assessment super priority liens. 19 states have them. Unfortunately, we do not have super liens in California.
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By David Swedelson, Partner, SwedelsonGottlieb, Community Association Attorneys

ammature_radio_tower_on_condo_-_Google_Search.pngGrowing up, there was a home in our neighborhood that had a massive radio antenna, much like the one in the photograph that is part of this blog post. As a kid, I was fascinated by the antenna. It was so big. Actually, I was captivated by the thought that I could talk to people around the world via a ham radio.

As an adult, while I may still be enamored by the prospect of communicating with people around the world, these days I do that via email, twitter and the telephone. While I have no problem with others wanting to be ham radio operators, I would not want to see one of these radio antennas on the roof of a home at my community association. And I know that many of you feel the same way about not allowing radio antennas, like the one in the photograph, at the associations you live in, manage or work with.

poliCE_officer_issuing_citation_-_Google_Search.pngBy David Swedelson, Partner, SwedelsonGottlieb, Community Association Attorneys

The LA Times reports that the Los Angeles City Council has adopted a new system that allows police officers to issue citations for minor “quality of life” crimes that would typically be resolved with a warning. Read the article here.

According to the article, “a pilot program, called Administrative Citation Enforcement, gives the Los Angeles Police Department and the Department of Animal Services a new enforcement tool that bypasses the court system. It allows city officials to impose fines for offenses such as urinating in public, having dogs off leashes or dumping garbage in public streets.”

Benefits_of_Alternative_Dispute_Resolution___Lawyers_com.pngWho said you can’t trust lawyers? You can certainly trust SwedelsonGottlieb, as we are actively opposing proposed new legislation that would make us more money, AB 1738. This bill concerning internal dispute resolution (IDR) in common interest developments (Civil Code Sections 5900-5920) was recently passed by the the California State Assembly and the Senate unopposed. It’s clear that the legislators do not understand the implications of what may happen if this legislation is signed into law by the Governor. If signed into law, this new law will most certainly make more work for us community association attorneys, as owners will be bringing their attorneys to IDR meetings, and many boards will opt to do the same.

Review the proposed revised language to Civil Code Sections 5910 and 5915 by following this link. On its face, the revised language is pretty innocuous. However, those with real-world experience with IDR in community associations (such as board members, managers and the attorneys that guide them) realize that AB 1738 will end up costing community associations more money for legal fees if this bill becomes law. Why? Because, as CAI’s California Legislative Action Committee (CAI-CLAC) suggested in its Call To Action on this Bill, “AB 1738 encourages members to bring attorneys and others to their first meeting with a single board member who has volunteered to help work out the member’s problem or concern. These simple ‘meet-and-confer’ conversations over coffee most often resolve an issue. When they occasionally don’t, either party may pursue a more formal Alternative Dispute Resolution (ADR) process that does involve lawyers. Nothing in law prevents lawyers from attending IDR right now, but AB 1738 actually promotes having them present to argue the issue(s). This will invariably make the discussion adversarial.”
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By David Swedelson, Partner, SwedelsonGottlieb, Community Association Attorneys

Phil_Angelides___Curbed_LA.pngWe deal with a lot of view obstruction disputes. We are able to resolve most of these disputes, as they are subject to CC&Rs which set out what view is protected. And the CC&Rs and the Civil Code provide that the prevailing party is entitled to collect their attorneys’ fees. That usually convinces most people that the fight is not worth the cost.

Sometimes, these view disputes cannot be resolved. For example, in July of 2013, I blogged about a case I had tried and won that dealt with a homeowner who was not part of the association she sued, claiming her cherished view of the association’s lake was obstructed by the trees in the association’s park; she claimed it was a spite fence. Follow this link to read that story.

So, I found an article about a lawsuit involving a 40 foot hedge to be interesting. The legal battle over the hedge is between two Santa Monica properties. Follow this link to read the Daily Journal article.

The article tells us that while they tried to settle the dispute, the “Santa Monica neighbors – well-known local plaintiffs’ attorney Browne Greene and former California state treasurer Phillip N. Angelides – are instead opting to go to court in September over the 40-foot hedge between their two homes.”
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By: David Swedelson, Partner at SwedelsonGottlieb, Community Association Attorneys

voter_apathy_-_Google_Search.pngIt is an old problem. Many California community associations cannot motivate their owners to participate or even vote at association elections. We have had clients that have been unable to obtain a quorum for director elections for more than 20 years. Even my own association recently reported a failure to achieve a quorum and decided not even to bother holding a second meeting, knowing that the chances of obtaining a quorum was remote.

Some condominium and homeowner associations have the ability under their governing documents to reduce the required percentage for a quorum at adjourned meetings, often from 50% to 25%, but even then some of those associations cannot get 25% of the owners to vote.

Many board members and managers have told me that they believe this is a problem with community associations in general. The fact is that this is not just a problem for community associations; it is a problem for federal, state and local elections as well. A recent Los Angeles Times article stated that “alarmed that fewer than one fourth of voters are showing up for municipal elections, the Los Angeles Ethics Commission voted… to recommend that the City Council look at using cash prizes to lure more people to the polls.”
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By David Swedelson, Partner, SwedelsonGottlieb, Community Association Attorneys

smoking_ban_-_Google_Search.pngI was alerted to a proposed smoking ban in apartments and condominiums by the City Council in Culver City, California. Follow this link to read an article from the Culver City Observer that tells us that the City Council directed the City Staff to prepare a draft proposed ordinance that would ban smoking in any complex of 2 or more units.

We have reported previously about cities banning smoking in multiunit housing – see our prior posts here and here. If a city can ban smoking, so can a condominium or homeowners association. In fact, some of our clients are moving forward with smoking prohibitions in their CC&Rs and have been able to successfully enforce the prohibitions without having to file any lawsuits.

By David Swedelson, Partner, SwedelsonGottlieb, Community Association Attorneys

Los_Angeles_Broken_Sidewalks_-_Google_Search.pngAn article in the LA Times tells us that the City of Los Angeles is facing an interesting dilemma; one that we find is often faced by California community associations. The City’s sidewalks are in terrible shape, broken up by tree roots. The question is, who should pay the cost of the repairs? According to the article, “state law is ‘crystal-clear’ in leaving property owners responsible for fixing and maintaining their sidewalks.”

Case law also holds that if the owner of the property adjacent to the sidewalk has planted or is maintaining a street tree, even though the sidewalk is the responsibility of the City, the owner can be responsible for injuries suffered as a result of a trip and fall accident. See our prior blog post entitled “California Community Associations May Be Liable for Injuries Suffered in Trip and Fall Accidents on City Sidewalks.

The broken up sidewalks have generated a lot of personal injury trip and fall claims against the City from injured persons walking on the sidewalks. They have also generated claims by disabled individuals who argue that the broken up sidewalks violate their rights to public access.
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