tow.pngWe are often asked if a California condominium or homeowners association has the authority to tow vehicles from the association if the vehicle is parked in violation of the association’s Rules and Regulations. The answer is that an association has the right and authority to tow vehicles, assuming that the Association has the proper signage posted in accordance with the California Vehicle Code, the towing is conducted in accordance with the California Vehicle Code, and the association’s Rules allow for same. Do you tow vehicles at your association? Are you considering adopting rules regarding towing? We have updated our information on towing vehicles at community associations and turned it into a printable article. Follow this link to download it.

Need assistance with developing towing rules and/or policies? Contact David Swedelson at dcs@sghoalaw.com

holiday%20lights.pngThe holidays are just around the corner, and it’s time for community association boards to start getting ready to address issues connected with holiday decorations. What kinds of limits should be placed on holiday decorations? How do you implement holiday rules and regulations? All that and more questions are answered in our article ‘Tis the Season to Be Tolerant: Building a Sense of Community in Spite of Holiday Decoration Rules.

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by Sandra L. Gottlieb, Esq., Senior Partner at SwedelsonGottlieb, Community Association Attorneys

As most everyone in the community association industry knows (or should know), on August 17, 2012 California Governor Jerry Brown signed into law Assembly Bill (“AB”) 805 which reorganizes and makes significant changes to the Davis-Stirling Common Interest Development Act (the “Act”). While the date for mandatory compliance is January 1, 2014 (meaning that although the change is now law, the new and revamped Act does not take affect until 2014), we have heard that a rumor has been spreading within the industry that associations have the option to implement the new laws beginning January 1, 2013. This rumor is false and this is simply not true. Could you imagine the chaos that would ensue if some associations followed the new Act and some the old? We can!

The community association attorneys at SwedelsonGottlieb have attacked AB 805 head-on, reading every single word and evaluating each component of the new legislation/Act. Section 3 of AB 805 states the following: “This act shall become operative on January 1, 2014.” Nowhere in the legislation does it say that there is an option to make the new Act operative earlier. To confirm our research, we contacted a representative of the Assembly Housing & Community Development Committee, the committee that introduced the legislation. The representative confirmed our findings and stated: “The operative date of the legislation is January 1, 2014, there is nothing in the bill about early implementation.” Accordingly, don’t be misled! Early implementation is not an option and in fact, we recommend associations implement the new legislation on January 1, 2014 – no earlier, and certainly no later.

This is a busy time of year for community association managers and board members. For those associations whose fiscal year runs from January to December, and most do, it is budget time. But in addition to the budget, there are a number of other disclosure documents and notices that California condominium and homeowner associations are required to annually distribute to association members.

As we do each year, SwedelsonGottlieb has compiled a list of all of the documents and notices that are required to be prepared and distributed to owners on an annual basis. Follow this link to our checklist for 2012-2013. There were no changes to the Davis-Stirling Act regarding disclosures which apply this year or next year, and this list is not much different from last year’s.

By David Swedelson, Senior Partner, SwedelsonGottlieb; Condo Lawyer and HOA Attorney

email.pngApparently there are many of you out there that are not aware that as of January 2010, California community associations are permitted by law to distribute budget packages and most annual disclosure documents to owners electronically so long as owners give their written consent to receive them by email. Once that consent is obtained, budget distribution can become virtually paperless. To read the statute, follow this link for Civil Code § 1350.7. This statute was amended effective in 2010 to permit all notices listed in a new Index (read the statute) to be distributed electronically, by following the member consent requirements in the Corporations Code.
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Blog post by David Swedelson, Senior Partner at SwedelsonGottlieb, Condo lawyer and Community Association Attorney

ghosts.pngOkay, it is Halloween. I have been representing condominium associations for 30 years and have never heard of one that is haunted, at least not with goblins and ghosts. But apparently there are some where residents have claimed to have seen ghosts. Follow this link to an article posted by a condominium law firm in Ontario, Canada. Apparently ghosts are more prevalent in condominium conversions, especially converted factories or hospitals. And of course, there is the story about spirits who were angry about the removal of gravesites on part of the condo property that was formerly a cemetery. The article also references a story from Hawaii where a security guard claimed that there was a ghost in the garbage room. (The story is about a man who murdered his wife and stuffed her body parts into garbage bags which ended up in the garbage room; the security guard believes that the wife’s ghost was looking for her head which was never found!)

So here’s a question: if an owner or resident complains of strange noises or voices, flickering lights or disappearing items without any logical explanation, is the condominium association obligated to hire Ghostbusters? Happy Halloween.

By David C. Swedelson, Senior Partner at SwedelsonGottlieb; Condo lawyer and HOA attorney

fdcpa.pngWe have had to extricate several of our community association clients (and often their management as well) from claims or lawsuits relating to the federal Fair Debt Collections Practices Act (FDCPA). It is well settled law that the FDCPA applies to the collection of delinquent and unpaid assessments for condominium and homeowner associations. However, the FDCPA does not apply to collection efforts which a community association, the creditor, undertakes on its own to collect on a debt, nor does it apply to its agents whose collection activities are “incidental to a bona fide fiduciary obligation” or which concern a “debt which was not in default at the time it was obtained by such person.”

As it relates to the collection of delinquent community association assessments, courts have held that an association management company is not a “debt collector” under the FDCPA. Courts have held that an association’s management company falls under the exceptions found in the FDCPA. This determination was based on the fact that the management company has a fiduciary obligation to collect assessments on behalf of the association. But this exemption only applies if the management company was obligated to collect the delinquent assessment debts prior to them being delinquent. A management company may be responsible to comply with the FDCPA if an owner/property was already in collection at the time the management company started managing the association.

Blog post by David Swedelson, Partner SwedelsonGottlieb

nosmoke1.png Santa Monica has passed a law with new smoking rules that affect all multi-unit housing, and that includes condominiums. Follow this link to review the new municipal code. Follow this link to review a related notice from the City of Santa Monica. What follows is a description of the new law as it impacts condominiums.

Condominium associations must complete a smoking survey of current unit residents by 1/21/13, and unit owners will be required to designate their units either “smoking” or “non-smoking”. For details about this process, go to smconsumer.org.

Current or existing unit residents can continue to smoke inside their units if they designate the units as “smoking”. If an owner or resident (and for the purposes of compliance with this new law, condo associations should survey both owners and tenants) fails to respond to the survey, that unit will be “undesignated” for the purposes of the final results. Not sure what that means. Time will tell.

The new law affects all new owners or residents after 11/22/12. This means that if there is a smoker residing in the unit now (either an owner or tenant), they can continue to smoke in the unit. However, starting November 22, 2012, all newly occupied condominium units in residential community associations located in Santa Monica are declared non-smoking. “So, anyone moving into an apartment or condo after November 22 can’t smoke in the unit.”
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By David Swedelson, Partner SwedelsonGottlieb; Condo Attorney and HOA Lawyer

grass.pngA CC&R dispute that started 11 years ago over the condition of a Tampa Florida homeowner’s lawn, a lawsuit that involved dozens of court hearings, a weeklong jury trial, two appeals and a second trial, at a cost of hundreds of thousands of dollars is finally over, and the owner prevailed. While this lawsuit occurred in Florida, it could have just as easily taken place in California. Boards at homeowners associations need to be careful when imposing charges and recording liens on an owner’s property.

The lawsuit was between an owner at the Pebble Creek HOA, a real estate broker and retired Tampa police captain, who claimed that his homeowners association illegally took action to replace his lawn in January 2002 and then recorded a $2,212 lien against the home and property for the cost of the sod.
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By David Swedelson, Partner, SwedelsonGottlieb, Condo Lawyer and HOA Attorney

default.png California community associations have been filing a lot of lawsuits the last three or so years attempting to collect delinquent assessments. Usually, these lawsuits are filed against owners that have lost their homes to their lender in foreclosure, wiping out their condominium development’s or planned development’s assessment lien. These associations are left with only a judicial remedy to collect what is owed their association.

In California, if a defendant in a lawsuit does not file a timely responsive pleading to that lawsuit after they have been served (e.g., answer or demurrer), a default can be entered by filing what is called an Application to Enter Default. In assessment collection lawsuits, many delinquent owners (most are former association owners) fail to respond to the complaint, allowing these claims to go by default. After entry of default, the defendant loses the right and ability to defend the lawsuit, and the plaintiff community association can then seek a default judgment.
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