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.
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.
Community Associations or Homeowners Associations for many years have prohibited outdoor drying of laundry. The intent of the Associations and owners of multifamily properties was to maintain the aesthetics of the property for everyone's benefit. The California legislature and governor have different plans for common interest communities and the HOmeowners Associations.
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.
Homeowners' Associations, as nonprofit corporations, generally meet the requirements to qualify as a tax-exempt Social Welfare Organization under Internal Revenue Code section 501(c)(4). Other types of activities may also qualify under Section 501(c)(4), such as bringing about civic betterment or social improvements.
Chris Neri, Assistant Commissioner - Subdivision Division of Bureau of Real Estate ("BRE") released on March 4, 2016 a memorandum regarding subdivision documents which require arbitration and prohibit class actions. The Chris Neri memorandum, in part, states that:
New California Swimming Pool regulations for pools located in community associations with 25 or more units went into effect on January 1, 2016. The new law requires: