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.
Is Annual Certification at Age-Restricted Communities Really Necessary?
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.
Unlicensed Contractors Caught In Sting Operation
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.
New Mechanic’s Lien Procedures in California Effective January 1, 2011
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
Squatters At Home in HOA Complain, “We’re Prisoners In Our Own Home!”
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?
Make it a Great Year by Amending or Restating Your Association’s Governing Documents
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?
Professional Behavior Affects Everyone
The Orange County Chapter of the Community Associations Institute (CAI) will be holding a luncheon on January 11, 2011 at the Irvine Mariott, entitled “Professional Behavior Affects Everyone”. CAI encourages you to “come hear the leading professionals in our industry discuss ethical and professional issues relevant to our industry. Our panel will address ethics and professionalism beyond the office and into social settings. In addition, the speakers will present the current trends in ethics complaints as well as the legal issues that arise with ethical violations, and provide insight on dealing with difficult ethical situations.” SwedelsonGottlieb senior partner Sandra Gottlieb, Esq. will be a speaker at this important program. Follow this link to download the registration flyer.
CACM Southern and Northern Law Seminars 2011
Mark your calendars, because just around the corner from the holidays is the California Association of Community Managers’ (CACM) Southern California Law Seminar on January 21, 2011, from 8 am to 5 pm at the Disneyland Hotel in Anaheim. CACM’s annual event is tailored to “community management professionals to have an in-depth understanding of case law and other applicable legal issues, as best practices are driven by the extensive laws associations face.” Follow this link for more information and to register for the Southern California Law Seminar. Be sure to say hello to our attorneys, including our senior partner, Sandra Gottlieb, Esq., who will be presenting. Our senior partner, David C. Swedelson, Esq., is also presenting on the top 10 cases impacting community associations.
CACM will also hold a law seminar and trade show in Northern California at the Oakland Marriott City Center from February 3-4, 2011. Follow this link for more information and to register for the Northern California Law Seminar, at which Sandra Gottlieb will also be a panelist.
Act Now to Fix Your Association’s Suspended Corporate Status
By Mark Petrie, Legal Assistant at SwedelsonGottlieb
Shakespeare’s Hamlet complains about the “law’s delay” as part of the reason he considers suicide. If he had lived today and tried to revive a California corporation’s suspended status with the Secretary of State, his decision would have been easy. Extended delays are placing California corporations (including homeowner associations) at serious risk of litigation exposure and may make them ineligible for disaster relief such as SBA funds, as well as causing them to suffer the extended suspension of other benefits of incorporation. Arguably, the greatest risk of suspended status is exposure to litigation, as the association may not prosecute nor defend a legal action without active status.
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Do You Tow Vehicles At Your Association(s)? Are You Complying With the Vehicle Code?
Prepared By David C. Swedelson.
We are amazed by the number of board members and managers that do not know that there is a Vehicle Code Section (§22658) that addresses how and when California condominium and planned development community associations can tow vehicles that are not legally parked. Compliance with the Vehicle Code is required, and non-compliance could subject the Association to potential fines, legal liability and damages.
On January 1, 2007, changes and amendments to the provisions to California Vehicle Code §22658, relating to towing from private property, including common interest developments, went into effect. No longer can an association instruct security services or a towing service to tow vehicles that may not be authorized. Rather, the association must comply with the new stringent laws.
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