By David Swedelson, SwedelsonGottlieb, Community Association Attorneys

office%20condos.pngIs your condo association exclusively a commercial or industrial development? Surprise — as of January 1, 2014, the Davis-Stirling Act no longer applies to your association. Your association is now regulated by the new Commercial and Industrial Common Interest Development Act (CICIDA), Civil Code Sections 6500-6876.

Previously, managers and directors of commercial and industrial developments only had to be aware of the provisions of the Davis-Stirling Act that did not apply to commercial and industrial developments. Now, there is an entire new body of law specifically applicable to these kinds of developments. While some requirements remain unchanged, there are some substantive changes that will generally allow for more flexibility when governing a commercial or industrial development. Simply stated, the legislature has not included in the CICIDA many of the requirements of the Davis-Stirling Act that now apply solely to residential associations, including secret elections, budgets, disclosures, and the list goes on. Follow this link to read our comprehensive article.

By Sandra L. Gottlieb, Managing Partner at SwedelsonGottlieb, Community Association Attorneys

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Wage & hour lawsuits are being filed with increasing regularity, and community associations, as employers, are not exempt. Unfortunately, some of our association clients have already been sued on wage and hour claims, and it appears that the risk of the association employer being sued for these claims is greater than ever.

What can you do to not be a target for litigation? Start by evaluating your association’s pay practices.
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By David Swedelson, Senior Partner at SwedelsonGottlieb, Community Association Attorneys

weedwhack.pngWe know that most of you are likely overwhelmed with the new Davis-Stirling Act. But there was other new legislation that impacts many California community associations.

Minimum Wage

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

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It is a fact of community association governance that at some point, every community association board of directors will likely have the need to levy a fine on a member. Most associations have adopted a schedule of monetary penalties or fine policy setting forth the fines that the board will impose in the event there is a violation of the governing documents. Whether an association plans to amend or adopt a new or revised fine policy, or do nothing at all with its current fine policy, all associations must now comply with changes in the new Davis-Stirling Act (effective January 1, 2014) relating to fines.

Former California Civil Code Section 1363(f) provided that if an association adopts or has adopted a policy imposing any monetary penalty, the Board must distribute the policy to all members via first class mail or personal delivery when the schedule is first adopted or when revised. The former code section was ambiguous and some believed that it did not require that the board disclose/distribute the fine policy on a yearly basis. The code just required that the board distribute any fine policy it did adopt/revise at that time. Thus, for example, if an association did not revise its fine policy for 10 years, some interpreted the former code section to say that there was no obligation to distribute it to the members regularly. This led to some confusion and disagreements.
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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.

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                                                   MEMORANDUM
          Confidential Attorney Client Privileged Communication/Not For Distribution
From: SwedelsonGottlieb, Association Legal Counsel To: Happy Holidays Homeowners Association
Re: 2013 Holiday Party Legal Issues We are reporting our preliminary findings following the events that unfolded at the Association’s mandatory Holiday Party last week. We report the following pending matters and recommended changes to the Association’s policies:
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