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HOA Archives

Limitation on Notice of Delinquent Assessments in HOAs (4 of 4)

Limitation on Notices of Delinquent Assessments in HOAs was imposed by the court in In re Guajardo (Bankr ND Cal, Mar. 11, 2016, No. 1531452DM) 2016 Bankr LEXIS 769, *8. For the collection of deliquent assessment in HOAs, the general practice has been, and continues to be,  to record the Notice of Delinquent Assessment with the County Recorder for the specific amount due with a clause that provided the amount would be increased to include all future unpaid assessements.

Indemnity Does Not Always Protect HOA Directors (3 of 4)

Indemnity for an HOA Director does not mean a Director can take actions or fail to take actions without incurring liability.  To avoid liability a Director must act in accordance with the "business judgment rule" and with diligence.

HOAs - Changes in the Law 2017 (1 of 4)

HOAs subject to the Davis-Stirling Act were not forgotten in Sacramento's annual enactment of ever more regulations. This is the first of four Blogs to address some of the changes in the statutory law in California affecting common interest developments.

HOAs & Mobilehome Parks - Your Rules May Violate FHAA

Most HOAs and Mobilehome Parks have rules intended to protect children and other residents.  Unless, the property is age restricted to 55+ or 62+, then such rules violate the Federal Fair Housing Amendments Act of 1988 ("FHAA").

Alert: New Law on HOA Reserves

HOA Reserves under the Davis-Stirling Act may be impacted by the enactment of Assembly Bill 968, which amends California Civil Code Section 4775. AB 968 changes the responsibility for exclusive use common areas. The current law under the Davis-Stirling Act effective until December 31, 2017 excludes exclusive use areas from the association's maintenance, repair and replacement responsibilities and places that responsibility on the owner of the separate interest for maintaining any exclusive use area attached to the separate interest. The new law, in effect on January 1, 2017, reverses the responsibility requiring, generally, that if the HOA's governing documents and/or CC&Rs are not clear on who is responsible for exclusive use common areas, then it is the HOA' s responsibility.

A Motion For Sanctions Can Be Helpful in Litigation

Any member of an HOA board or management company is aware the extreme costs lawsuits can pose to the association no matter how frivolous the suit is. Homeowner's associations can greatly benefit from the use of Motions for Sanctions under California's Code of Civil Procedure Section 128.7.

New Regulations for Homeowners' Associations & Other 501(c)(4) Organizations

Homeowners' Associations and other social welfare organization exempt under IRS section 501(c)(4) are subject new regulations.  As part of section 405 of the "Protecting Americans from Tax Hikes Act of 2015", enacted December 18, 2015, certain provisions affect social welfare organizations described in section 501(c)(4) that are established after December 18, 2015 and certain organizations existing on that date.  

Added Disclosure Requirements for Common Interest Developments

The Davis-Stirling Common Interest Development Act was amended by Assembly Bill 596 which modifies Civil Code Section 5300. Effective July 1, 2016, as part of the Homeowners Association's (HOA) Annual Budget Report required to be delivered to the owners within the community, the Annual Budget Report shall include specific statements indicating whether the Community has FHA or VA approved.

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