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 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 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.
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.
Lender Relief for condominium projects comes from the House of Representatives. The House passed 427 to 0 a bill entitled "House Opportunity through Modernization". Under the bill, the rules and regulations of the FHA are being relaxed. Approximately, ten years ago the FHA severly tightened its regulations related to financing condominium units. The tightening of the rules and regulations resulted in only about ten percent (10%) of the projects in the United States qualifying for financing underwritten by FHA. The lack of FHA financing has negatively impacted sales and increase the percentage of condominium unit rentals, both of which in turn negatively affect the value.
Over the past decade, municipalities up and down the California coast have passed ordinances which limit short-term vacation rentals to properties located within the coastal zone.
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:
If you would like to rent out your condominium unit on short-term vacation rental websites like Airbnb or Craigslist - be careful! Property owners often do not consider the rules and regulations of their Homeowners Association ("HOA") before doing so. As one San Diego man found out, the penalties for violating a HOA's rules and regulations can be costly.