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By David C. Swedelson, SwedelsonGottlieb Partner

There was an interesting article on new legislation in the March 6, 2011 edition of the Los Angeles Times about the 2,323 new bills that have been introduced in the California legislature, and this includes several that impact California community associations (more on that below). As reported in the Times:

In addition to addressing the state’s $25-billion deficit this year, the Legislature is making time for some other less-pressing matters: Caffeinated beer. Spaceships. How to properly describe a dog pound.

Proposals on those subjects are among the 2,323 bills lawmakers have introduced this year. Others would revise the definition of olive oil and regulate the reflectivity of pavement to help curb global warming. There’s a measure to create a “Parks Make Life Better” month.
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By Sandra L. Gottlieb, Esq.

Although the legal definition of what constitutes a “hostile work environment” is continually evolving, an employer has a general duty to protect its employees from a hostile work environment which can generally be defined as existing when an employee experiences ongoing workplace harassment and fears going to work because of the offensive, intimidating, or oppressive atmosphere generated by the harasser. Hostile work environments apply to community associations and their managing agents, whether they are directly employed by the association or through a management company. The harassers can be board members, owners, residents and even vendors. The association’s duty to provide a hostility-free work environment also extends to all association employees, and not just the manager(s), and to the employees of its vendors such as landscaping, maintenance and security personnel.
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By David C. Swedelson, Esq.

Many planned development community associations have built into their CC&Rs the obligation of the association to maintain property owned by some and often not all of the owners. Sometimes, they are called “Association Maintenance Areas” or “Association Easement Areas”. Sometimes, there is no special name for the area, but the association’s CC&Rs specify that the association will maintain a slope area or landscape area that benefits the association or the owners, typically for aesthetic reasons. And sometimes, disputes erupt over just how far the association’s maintenance responsibilities extend.
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By SwedelsonGottlieb, Community Association Attorneys

We recently assisted an association’s board of directors with addressing the question of whether the association has a legal obligation under its governing documents (or under applicable law) to install, or allow for the installation of, charging stations for homeowners’ electric cars. In this case, the homeowners’ parking spaces were exclusive use common area that were assigned to specific units under the association’s condominium plan and unit grant deeds. The owner at issue wanted to install the charging device in her exclusive use common area parking space.

The first issue we had to address was whether there were any association rules or architectural guidelines in effect that prohibited the storage or placement of items in parking spaces. We advised the Board that if there were, and if there was no specific exception to that rule that allows for the storage or placement of an electric vehicle charger in parking spaces, then the board would need to prepare and adopt a rule modification allowing for that installation, following the Civil Code requirements for operating rules.
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Some California community associations charge transfer fees. The Federal Housing Finance Agency was proposing a ban on such fees, and they have now backed off this proposal. Community Associations Institute (CAI) was very much involved in addressing the proposed ban. Now the Federal Housing Finance Agency says they will exempt the fee if it is imposed to benefit the property or community. Follow this link to a LA Times article that addresses this issue in more detail.

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By Sandra L. Gottlieb, Esq.

Our 55 and older age-restricted communities sometimes ask whether they are required to survey and certify that they comply with the 55 and older qualification standards (if you live in or are on the board of an age-restricted community, you likely know what this means), seeing as they have already surveyed and certified residents in units. They do not want to have to recheck and recheck, year after year, inasmuch as the owners are not getting any younger over time.

For those that are wondering what the heck we are talking about, the Fair Housing Amendments Act of 1988 (the “Act”) provides an exception for communities for older persons (55 and older), which allows restrictive occupancy without violating the Act by discriminating against families with children or against persons that are 54 years of age or younger. The FHA has been amended by the Housing for Older Persons Act of 1995 (“HOPA”). HOPA sets forth standards, which allows, if followed, the 55 and older communities to satisfy the exemption by completing the age restriction requirements.

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The California Contractors State License Board (CSLB) recently issued a news release regarding their recent sting operation, which caught several unlicensed contractors attempting to perform work for more than $500. Unlicensed contractors tend to prey on senior communities such as the Sun City retirement community, which assisted with the sting operation. Boards of directors and managers of senior communities should be especially vigilant and ensure due diligence is performed when hiring contractors. See the news release for a list of important tips and red flags when hiring contractors.

Check contractors’ status with the CSLB here.

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By David C. Swedelson, SwedelsonGottlieb

Effective January 1, 2011, California law imposes new requirements and notice procedures for contractors who are serving and recording mechanic’s liens. California Civil Code § 3084(a)(6)-(7) now mandates that a valid mechanic’s lien must contain the following information in addition to what the law currently prescribes:

• Particular language in 10-point boldface type entitled “Notice of Mechanic’s Lien” as set forth precisely in the statute, and

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Here at SwedelsonGottlieb, we’ve dealt with or heard a lot of interesting situations. Sometimes, we think we must have seen just about everything there is to see. But a recent article about squatters at an a home in a Newport Beach HOA made us laugh out loud. The squatters had taken over a $2.6 million home in a gated planned development community, and amazingly, they complained of not being able to access the security gate to the association. They claimed they were “prisoners in their own home”, but now it looks like they may have to make prison their home for awhile.

This story does have more serious implications. Associations should keep an eye out for squatters and then alert the owner, as the association should not get directly involved except perhaps to call the police. And, there could be some implications for not allowing access, assuming that the squatter is now a tenant (technically and depending on how they got possession of the home/unit). We have heard about owners putting people into their home or unit as the foreclosure was taking place. At some condominium associations we represent, we have been told that squatters have taken up residence. How did anyone know? The first clue was an extension cord out the door and plugged into the association’s common area electrical socket. A clue for another association was a transient using the spa and clubhouse. A sign of the times?

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You know you’ve been meaning to get around to it for a long time now. Your manager has probably been nudging the board as well, hoping that maybe this year will be the year your association decides to get rid of those outdated CC&R and Bylaw provisions, making everyone’s job a lot easier.

Amending your governing documents does not have to be a painful process. Some boards of directors will not even consider amendment, dismissing it out of hand as too time-consuming or too expensive with little chance for success. But if the board truly commits to the process and engages in an active marketing campaign to support the approval of the amendment by the required secret ballot vote, we find that our association clients are able to get some great amendments passed by their members, quickly and effectively.

What’s bothering you?

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