The following is reposted from Community Association Institute’s (CAI) Government Affairs Division:

Freddie_Mac__Fannie_Mae_Release_Uniform_Condominium_Questionnaire_Initiative.png
On March 29, federal housing agencies Freddie Mac and Fannie Mae released a standardized set of lender questionnaires for condominium unit mortgages. The Uniform Condominium Questionnaire is intended to reduce the burden on community associations that routinely provide condominium project information to mortgage lenders.

To comply with Freddie Mac and Fannie Mae mortgage purchase guidelines, mortgage lenders must verify financial and property standards for condominium projects. Over the past two years, Freddie Mac and Fannie Mae worked with CAI and the mortgage lender community to develop a uniform condominium questionnaire to ease the process of obtaining this information. Lenders will now have two options when requesting information from a condominium association.

By David Swedelson, Senior Partner at SwedelsonGottlieb, Community Association Attorneys

california_legislation_-_Google_Search.pngOn March 29, 2016, we posted an article regarding the SB Liberty, LLC, v. Isla Verde Association, Inc. Court of Appeal decision that confirms the law that only owners or members of an a California community association are entitled to attend association board meetings. Follow this link to review our prior post. As we stated in that article, it is not uncommon for a homeowner, usually disgruntled or in trouble with their association, to either want their attorney to attend a board meeting with them or in their place. Often, we hear about it after the meeting where the attorney appeared on behalf of their client and intimidated the board. The Court of Appeal confirmed that members do not have the right to have their attorney attend association board meetings.

Now, we want you to know that the legislature is considering new law that would allow an association member to bring their attorney to board meetings, which would make the foregoing case law no longer applicable. We and just about everyone in the community association industry oppose AB1720, and for good reason.
Continue reading

By David Swedelson, Senior Partner at SwedelsonGottlieb, Community Association Attorneys

lawyers.pngIt is a common scenario. A homeowner (usually disgruntled or in trouble with their association) either wants their attorney to attend a board meeting with them or in their place. Often, we hear about it after the meeting where the attorney appeared on behalf of their client and intimidated the board. This situation raises three hotly contested issues: (1) Do homeowners have the right to have their attorney present at board meetings? (2) Can homeowners delegate their right to attend board meetings to nonmembers? and (3) Does it make a difference in delegating powers to attend board meetings if the owner of a unit is a natural person or an entity? We have not had a solid answer to these questions. That is, until the Court of Appeal came down with its decision in the case of SB Liberty, LLC, v. Isla Verde Association, Inc. Based on this decision, we can definitively say that the answer to all three questions is NO.

The Court ruled in SB Liberty (in May of 2013) that Section 1363.05 of the California Civil Code (now found in Civil Code Section 4925) specifically states that members may attend an association’s board meetings. This means that owners cannot have their attorney, or any other nonmember, attend in their place.

By David C. Swedelson, Partner at SwedelsonGottlieb, Community Association Attorneys

super-bowl-50-hero.jpegMany of our condo and HOA association clients have employees. Some have many employees. And this week, many of those employees are talking about and betting on the game, oftentimes while at work. In fact, some employees have set up betting pools encouraging other staff members to place wagers on various aspects of the game. Legal? What about all that cash that is being passed amongst employees? And what about the lost productivity?

And talking about productivity, leading up to the game, employees will be reading articles about the game, texting friends about the game, etc. Many will be communicating with friends regarding Super Bowl parties. And they will be doing this while they should be working. Can or should your association enforce productivity standards?

By Mark Petrie, Marketing Coordinator at SwedelsonGottlieb

FHA-Loans-florida.jpgH.R. 3700 has passed the House of Representatives and now moves on to the Senate, to the cheer of affordable housing advocates and Community Associations Institute, which issued this letter of support to the bill’s sponsors. This is a positive development for condominium associations, as part of the bill directs the Secretary of the Department of Housing and Urban Development to implement and consider reasonable changes to the certification and recertification process for condominium FHA approval.

Although the details of exactly how the FHA approval requirements will be revised are largely to be determined by the Secretary, if the bill becomes law in its current form, it would likely be much easier to obtain and retain FHA approval. The bill directs the Secretary to:

By David Swedelson, Senior Partner at SwedelsonGottlieb, Community Association Attorneys

Laguna-Beach-Ocean-View-Homes.jpgThe City of Laguna Beach has for a long time had an ordinance that provided homeowners in that city some protection of their ocean and mountain views. According to a recent LA Times article, the City adopted a new view ordinance in 2014 that allows its residents “to use the date they purchased the home or Nov. 4, 2003, [the date used in the prior law] whichever is earlier, to establish a record of a view, usually through photographic evidence. Offending vegetation must be within 500 feet of the claimant’s property line and at least 6 feet tall to be subject to a claim.”

The city’s new ordinance requires a property owner claiming an obstructed view to first attempt to work out a solution with his or her neighbor on whose property the trees/vegetation are located before the city has to get involved. If the homeowners can’t reach an agreement to resolve the view issues, then the property owner pays $500 for a city-hired mediator to step in. This is a great idea and one that we have recommended to many of our clients. Mediation has proven to be a very effective tool for resolving owner-to-owner disputes such as view obstructions. According to the Times article, “[o]f the 25 view mediation applications (the city was expecting more, see below), a mediator resolved five cases while parties in two other cases worked out issues by themselves. Other cases are pending.”
Continue reading

ham.jpg
We received an urgent message from the office of Government Affairs at Community Associations Institute’s national office regarding the federal legislation on HAM radios, H.R. 1301. We previously reported on this legislation but it has passed another hurdle, so we are again requesting that you contact your representative to voice your opposition to this legislation. The following is the message we received from CAI:

As you may recall, last month the Amateur Radio Parity Act of 2015 (S. 1685) passed the Senate Committee on Commerce, Science, and Transportation. Your action is needed today, as the bill will likely be referred to the Energy and Commerce Committee for debate.

H.R. 1301 invalidates community association rules and architectural standards that govern the installation and use of amateur radio towers and antennas. If this bill should become law, Congress will be able to rewrite the private, contractual agreement that you signed upon buying into your community association.

By David Swedelson and Kevin McNiff, Community Association Attorneys at SwedelsonGottlieb

No_Smoking_By_City_Ordinance_Sign_NHE-12045_No_Smoking.png
In August of 2014, we wrote about Culver City’s no-smoking ordinance that would affect common interest developments. The full text of the ordinance may be read through the city’s website here. We have recently received questions from concerned association managers and board members as to whether Culver City condo associations would be responsible for enforcing the ordinance. As the time nears for the smoking ban to go into effect, such questions and concerns will likely be more common for condo boards and managers who are affected. The short answer is yes, Culver City seems to have attempted to make the associations responsible for enforcing the City’s ban on smoking in buildings with multiple units, although it remains to be seen what level of enforcement will be required.
Continue reading

By David Swedelson, Partner, Swedelson Gottlieb, California Community Association Attorneys

B99318139Z.1_20151027165337_000_GI0KKHP2.1-0.jpegI was alerted to a news story out of Detroit where legendary singer Aretha Franklin is being sued for her failure to pay more than $11,563 to the Hills of Lone Pine Association.

Interesting quotes from Ms. Franklin: “It is my property. I don’t live there and feel I have (been) overcharged for years,” Franklin said. “My attorney has been discussing this with them. And I have paid what I felt was credible and legitimate.” She has been “overcharged for years.” She has paid what she “felt was credible and legitimate.” Seriously?! She sounds like many of the delinquent owners we have had to deal with over the years.

american_flag_-_Google_Search.pngInteresting article on restrictions on flying the American flag in Utah. Follow this link to read attorney Peter Harrison’s article that addresses this issue. His article references the great respect that many of us share for our flag and what it stands for. According to Harrison’s article, the Freedom to Display the Flag Act of 2005 (federal law) does not “completely override an HOA’s CC&Rs.”

Things are different here in California. Our Civil Code/Davis Stirling Act expressly prohibits California Community Associations from limiting or prohibiting the display of the flag of the United States on a member’s separate interest or within their exclusive use common area. Follow this link to read our Civil Code Section 4705. We in California do respect our Flag and what it stands for, and no California community association should restrict any owner from flying the flag so long as it meets the requirements of the Code.

David Swedelson is a senior partner at SwedelsonGottlieb, Community Association Attorneys

Contact Information