Feb 25


It’s time to break out your suits and gowns. Our Gala is Friday. It is black-tie preferred, which means men should wear tuxedos or dark suits and women should favor dresses and gowns. 

Valet parking is provided by the firm of Epsten, Grinnell & Howell as you pull into the circle drive at: 

Fairmont Newport Beach
4500 MacArthur Blvd.
Newport Beach 92660
949-476-2001
 

The 6:00 p.m. Reception will be in the Bamboo Pavilion which will have a hosted bar so you can enjoy hors d’oeuvres and a glass of wine while listening to chamber music from the Arroyo String Quartet and mingle with friends and colleagues.

The Ballroom doors open at 7:00 p.m. where you will be welcomed with opening remarks by Adrian Adams (that’s me) and then entertained by singer/pianist Le Grand Barr during dinner which includes table wine (a cash bar will be available for those who want something other than wine.) Our menu includes:

Salad: Organic greens over dried tomatoes, fried shallots, crumbled goat cheese with red wine and shallot vinaigrette, and freshly baked artisan bread.

Entree: A duet of cedar plank smoked salmon brushed with fireweed honey and grilled New York steak with Bearnaise sauce accompanied by asparagus and twice baked potato.

Dessert: Salted caramel cheesecake with dark chocolate crust and coffee or Fairmont tea.

During dessert you will enjoy the box office hit video “50 Shades of HOAs” which features man-on-the-street interviews about homeowner associations. See our teaser.

Our Emcee for the evening is Steve Roseman, whose soft South African accent will tickle your ears. Executive Director Karen Conlon will provide an overview of the astonishing dimensions of the CID industry in California and its three key organizations: CAI, ECHO and CACM.

Prof. Katharine Rosenberry will take the podium and talk about the chaotic process thirty years ago of drafting what became landmark legislation. Her stories of what she and Task Force members went through are humorous and entertaining.

Senator Larry Stirling has his own amusing spin on events leading up to the mad dash to pass the legislation once Speaker Willie Brown gave his okay to the project.

The charismatic former Assembly Speaker and Mayor of San Francisco Willie Brown will be our Keynote Speaker. Unquestionably one of most powerful men in California when he approved the project, Speaker Brown has his own stories to tell.

The awards portion of the evening will be led by industry leaders Jon Epsten, Robert Riddick, Lisa Dale and Debra Warren. Awards will be given to each of the honorees for their work on the original Davis-Stirling Act.

Steve Roseman will describe the extraordinary work by the California Law Revision Commission rewriting, reorganizing and renumbering the Davis-Stirling Act. An award will be presented to Brian Hebert on behalf of the Commission.

We will have closing remarks followed by music by Le Grand Barr as we conclude the event. It will be an exciting and historic evening. I look forward to the pleasure of your attendance.

Sincerely,

Adrian J. Adams, Esq.
President
Foundation for California
Community Association Education
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Feb 25

QUESTION: Can a board deny a delinquent non-disabled owner the ability to remotely open the lobby door from his phone thereby requiring the owner to go downstairs and open the door manually for guests?

ANSWER: Yes, the privilege can be suspended. Remote entry is a privilege not a right. The delinquent owner can still escort guests to his unit–he simply loses the convenience of remote entry (since he is no longer paying for it). Make sure you hold a hearing before suspending privileges.

INSURANCE
HAMMER CLAUSE

QUESTION: One of our members filed a bogus lawsuit against the board and our insurance appointed a law firm to defend us. After a year of being put through the ringer by a nutcase plaintiff and his slimy lawyer, our attorney is recommending settlement. We don’t want our insurance paying him a dime. We know we can beat this guy in court. Are we in our rights to refuse settlement and demand that the case go to trial?

ANSWER: You can refuse settlement but first you should find out if your insurance policy has a “hammer clause.” If it does, you need to carefully weigh the pros and cons of continued litigation. On the plus side, if you take the case to trial and win you discourage others from filing spurious lawsuits against the association. If you lose, it could cost the association a lot of money and a special assessment.

Economics of Settling.
Insurance companies don’t look at who’s right or wrong–they look at the economics, i.e., the cost of taking a case to trial verses the cost of settling. Not only are trials costly, there is a risk of losing. A loss could burden the insurance company with damage awards and plaintiff’s attorneys’ fees. to avoid the risk, they like to settle.

Hammer Clause. To ensure that boards cooperate with settlement offers, insurance carriers frequently insert a “hammer clause” in their policies. In the event a board refuses to settle and takes a case to trial and loses, the association, not the insurance company, pays the difference between the rejected settlement offer and (i) any additional legal fees incurred by the carrier, plus (ii) any judgment against the association, plus (iii) any award of legal fees against the association.

Plaintiff Refuses to Settle. Sometimes it’s the nutcase plaintiff who refuses to settle. When that happens, insurance continues to pay for defending the association through trial and sometimes beyond (if the nutcase loses and files an appeal).

Thank you to Tim Cline of Timothy Cline Insurance for his assistance with this question.

30th ANNIVERSARY
CELEBRATION

The Foundation is celebrating a momentous event–the passage of landmark legislation known as the Davis-Stirling Act. It is recognizing the Task Force who helped author the 1985 “Classic” as well as CLRC’s 2014 “Rewrite” of the Act.

Join us on Friday the 27th for our 30th Anniversary Gala Celebration.

NEW DRAWING. The Law Offices of Larry Kent graciously donated two tickets for a drawing to attend the Gala. To win a ticket ($250 value!). Enter the Drawing via email and provide us with your contact information.

FEEDBACK

Mudslide Loss #1. I don’t think mudslides are covered under homeowner policies. -Don L.

RESPONSE: You’re right. Mudslides are not a covered peril but coverage is available for purchase as a “Difference in Conditions (DIC)” policy. It is something homeowners who are downslope from a burn area would purchase. “Loss of Use” coverage provides additional living expense while repairs are made to the house. This coverage is also an extra.

Mudslide Loss #2. What if common areas were damaged and the association needed to special assess the membership? Does that go to the membership for approval? -Geri N.

RESPONSE: If the association’s insurance does not cover a loss, the board could levy a special assessment under its emergency assessment powers. Members who carry loss assessment insurance could then file a claim against their own policies to pay the assessment.

Mudslide Loss #3. If the association is providing no services to the lots because they are “red tagged” it would seem that they should be exempted from assessments equal to the costs they are not incurring. -Doug C.

RESPONSE: The association would still have ongoing operations, maintenance, utility bills, street repairs, reserve contributions, management contract, etc. If this is a 40-unit association, one-fourth of their budget will be wiped-out if ten homeowners stopped paying assessments. That means a special assessment against the other thirty homeowners. To avoid potential legal challenges, the board should put it to a vote of the membership.

Reserve Components. In your article about unplanned reserve components, you made no mentioned that an association’s CC&Rs may control how reserve monies are treated. Ours (from the 1970s) state that “Reserves for a specific item shall only be expended for that particular item.” -Bob A.

RESPONSE: You’re right, your governing documents must be taken into consideration when dealing with reserve issues. CC&Rs might include restrictions that would necessitate a special assessment instead of the more flexible approach I described. You may want to amend your documents.


Adrian Adams, Esq.
Adams Kessler PLC


“Legal solutions through knowledge, insight, and experience.” We are friendly lawyers; you can contact us at (800) 464-2817 or info@adamskessler.com.

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Feb 19


In 1985, the Coca-Cola Company scrapped its 99-year-old formula for the world’s best-selling soft drink and released “New Coke.” It was a disaster. Three months later “Coke Classic” was back. The announcement was so momentous ABC’s Peter Jennings interrupted the TV soap opera General Hospital to announce the news.

The Foundation is celebrating another momentous event. It is recognizing both the 1985 “Classic” and the 2014 “New” Davis-Stirling Act. We are paying tribute to those who drafted the original formula for the Act as well as those who developed the new formula. Unlike Coke, they got it right. Below is a list of the Honorees for next week’s 30th Anniversary Celebration.

NEW DRAWING. The Law Offices of Larry Kent donated two tickets for a drawing to attend the Gala. To win a ticket ($250 value!). Enter the Drawing.

Gary Aguirre
An attorney who specialized in construction defects but now represents those harmed by violations of securities laws.
Brian Greenberg
An attorney who assists lenders, developers obtain VA/FHA and Fannie Mae approval of condominium projects.
Wayne Hanson One of the earliest association managers in California and founder of Property Management Associates in 1972.
Scott Jackson
An attorney who specializes in creating residential, mixed-use and commercial CIDs for developers.
Melinda Masson
Founder of Merit Management and one of the pioneering women in community association management.
Michael Packard
Founder of Packard Management, one of California’s first companies specializing in community associations.
Peter Saputo
An attorney whose focuses on the creation of Common Interest Developments.
Curtis Sproul
An attorney who specializes in representing homeowners associations and common interest developers.
David Van Atta
An attorney who specializes in real property law, land use and development law, and community association law.

HONOREE FOR
“NEW” DAVIS-STIRLING ACT

Attorney Brian Hebert, Executive Secretary of the California Law Revision Commission, will accept for the team that led the CLRC’s rewrite of the Davis-Stirling Act.
Attend the Gala! Tickets for the February 27 event are still available. Join us at the Fairmont Newport Beach Hotel for the celebration. Click here for tickets. For more information contact Randall Avila at (949) 440-1027 or Events@QuimbyGroup.com.

Adrian J. Adams, Esq.

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Feb 17

QUESTION: About 10 homes in our community were red-tagged by the city due to severe damage from mud and rock sliding off a mountain slope. I asked our board to waive monthly assessments for those homes until they could be occupied again. I was told “We do not have the authority to do that.” Are they correct?

ANSWER: Waiving assessments is analogous to California waiving property taxes. If you can get the state to waive taxes you might have an argument for the board waiving assessments.

Deficit. Forgoing assessments is a friendly gesture but it would create a deficit in the budget that would have to be covered by other members via a special assessment.

Negligence. Fortunately, there is no need to drop assessments since the ten homeowners should have insurance to cover their loss. If they failed to carry insurance, you would be asking your neighbors to involuntarily pay for someone else’s negligence, i.e., their failure to insure.

RECOMMENDATION: If you want to waive assessments, I recommend putting it to a vote of the membership. If the membership approves the waiver, the board would not be acting outside their authority.

UNPLANNED
RESERVE COMPONENT

QUESTION: Should an improvement not listed on the reserve study be paid out of the operating account? We had to modify the drains on a deck above the garage.

ANSWER: Whether you pay from operations, use reserve funds, or special assess depends on the cost.

Small Cost. Some components are left out intentionally because, relative to the association’s annual budget, the cost to replace is too small to include in the study. In that case, you pay out of operations.

Moderate Cost. Sometimes components are left out by mistake. If the cost is moderate and the reserve account healthy, reserve funds can be shifted between components and the missing item added to the study.

Significant Cost. If, however, the impact on the reserve account is significant because the cost to repair is high or the reserves are underfunded, the board may need to borrow from reserves and levy a special assessment to repay the account.

RECOMMENDATION: If you use reserve funds previously allocated to other components, make sure you notify your reserve specialist so he can make appropriate adjustments to the study.

Thank you to Les Weinberg of Reserve Studies Incorporated for his assistance with this question.

30th ANNIVERSARY GALA!

Do you want to attend one of the most prestigious events of the year? Author of the Davis-Stirling Act, Judge and former Senator Larry Stirling will speak at the 30th Anniversary Gala on Friday February 27. Sponsorships and tickets are still available.

Drawing. Enter to win a ticket ($250 value!) courtesy of Association Reserves, Inc.

To enter the drawing, click on: ENTER TO WIN!

BOARD MEMBER WORKSHOP
AND WINE TASTING

Since it includes wine tasting, I thought I better pass this along. On Friday, February 20, the Coachella Valley Chapter of CAI is hosting a Board Member Workshop from 3:00 to 5:30 p.m. at the Shadow Mountain Resort and Club in Palm Desert.

The workshop includes a briefing on legal and insurance issues with Laurie Poole and Tim Cline. It costs $15 and the Chapter is offering tickets to its wine tasting event (5:30 to 8:00 p.m.) for only $5.00 for attendees of the workshop. Please RSVP at 760-341-0559 or admin@cai-cv.org.

FEEDBACK

New Yorker. If you ever decide to change careers, Adrian, may I suggest writing satire for The New Yorker? Even if the topics don’t always apply to me, I know I’ll get a laugh–sometimes from the questions themselves; sometimes from your answers. Please keep it up. -Lee H.

Priceless. Your sense of humor is priceless! I look forward to reading your newsletter every week. Thanks, Roy S.

Politically Correct. You totally crack me up! In this day and age where political correctness is often taken to the point of absurdity, you can still pull off some great “tongue in cheek” humor. Good for you! -Judy M.

Humor. I love everything about your newsletter, graphics, tone, tenor, substance, generosity and sense of self-deprecating humor. -L.S.

Humor #2. Love the humor you inject into your answers! We need laughter as the best medicine, so thank you!! -S.W.

Never? NEVER NEVER use my address again for ANYTHING. -Z.C.


COMMENT: I don’t think he likes the humor.

Really Funny. Love your humor–really, really, smart and funny. There has been no announcement in at least 30 days about a new lawyer addition to your firm. Things must be slowing down! -Cassie T.

COMMENT: If you know any good HOA lawyers who may be looking, send them my way.

Voice of Reason. As always, your newsletter is superb. In an area of law practice which deals with conflicts oddly similar to family law disputes, you are a voice of reason. -Joseph M.

RESPONSE: HOA law makes family law look easy. When parties get divorced they go their separate ways. In HOAs, battling parties never leave…they run for the board and elevate their dispute to a new level.


Adrian Adams, Esq.
Adams Kessler PLC


“Legal solutions through knowledge, insight, and experience.” We are friendly lawyers; you can contact us at (800) 464-2817 or info@adamskessler.com.

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Feb 08

QUESTION: Four months ago we elected a new board. We now learn that one of the directors is not on title as required by our bylaws. Does that make the election invalid? Do we need to start over with a new election?

ANSWER: Voiding the election means it never occurred. Doing so may create unpleasant consequences.

Consequences If you undo the election, prior board members retake their seats since you cannot legally operate without a board. They may or may not be willing to assume their responsibilities. It also means all decisions by the “unelected” board are nullified such as (i) contracts entered into, (ii) liens recorded against delinquent owners, (iii) foreclosure actions, and (iv) disciplinary actions against members. This would create legal mischief.

Proper Course. The proper course is to vacate the seat of the unqualified director. The board can then appoint a replacement.

CHOOSING
OFFICERS

QUESTION: We recently held our annual election. Afterward board members decided who would fill which position (president, secretary, etc.). One director declined his appointment because he wanted another position. Can a board member be made to serve in a position he won’t accept?

ANSWER: Nyet. Laa. (“No” in Russian and Arabic. The way things are going, both are languages we may need to learn.)

DEALING
WITH WATER LEAKS

Attorney Russell Higgins will join John Temoyan of Har-Bro Emergency Services and Craig Phillips of the International Tower in a seminar highlighting the dangers of water leaks. They will cover:

-First steps
-Board involvement
-Best practices
-Whose responsibility?
-What if it goes legal?

The seminar will be held Tuesday, February 10, 2015 from 6:00-7:30 p.m. at the Renaissance Long Beach Hotel. Please sign up at www.cai-glac.org or call 818-500-8636.

30th ANNIVERSARY
GALA!

Do you want to attend one of the most prestigious events of the year? San Francisco Mayor Willie Brown will be the keynote speaker at the 30th Anniversary Celebration of the Davis-Stirling Act.

Drawing. Enter to win a ticket ($250 value!) to the Gala courtesy of Association Reserves, Inc. To enter the drawing, click the link below! ENTER TO WIN!

FEEDBACK


This is about the woman who demanded local phone numbers and 24/7 access to board members:

24/7 Access. What if the board refuses to use a management company? Are board members required to provide 24/7 access under those circumstances? -Cynthia S.

RESPONSE: Even management companies don’t always provide 24/7 telephone support. Managers sometimes have a private life and actually go home at night. I know it’s shocking but it happens. Associations that don’t provide 24/7 support often distribute a list of emergency phone numbers (for plumbers, locksmiths and the like). Older members then use a magnet to stick it to their refrigerator door. Younger members enter the information into their cell phones. Even though I’m older, I’m technologically savvy–I put emergency information in my cell phone and stick it to the refrigerator door.


This concerns the election where no one showed up except the inspector of elections:

Annual Meeting. How does the president call a meeting to order when there are no other board members? -Tena H.

RESPONSE: Since an annual meeting is a meeting of the members, a quorum of directors is not needed. In last week’s newsletter, the Inspector had enough ballots to establish quorum without anyone physically attending the meeting. If no one shows up, the Inspector can either open ballots and tally votes or give notice that ballots will be opened at a board meeting. I recommend the latter.


Adrian Adams, Esq.
Adams Kessler PLC


“Legal solutions through knowledge, insight, and experience.” We are friendly lawyers; you can contact us at (800) 464-2817 or info@adamskessler.com.

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Feb 05

As we get closer to the 30th Anniversary of the Davis-Stirling Act, I am highlighting some of the people who will be speakers and honorees at the dinner. This week it is Keynote Speaker Willie Brown, a political power broker who set the wheels in motion for the creation of the Davis-Stirling Act.

I encourage everyone to register for the historic February 27 event to hear this exciting and dynamic speaker.

 

 

 


Adrian J. Adams, Esq.

 

 

 

 

 

 


WILLIE L. BROWN, JR.

We are proud to welcome our keynote speaker for the 30th Anniversary Celebration: former Assembly Speaker and San Francisco Mayor Willie Brown.

First elected to the Assembly in 1964, Mr. Brown quickly rose through the ranks to become one of the most powerful legislators in our state’s history–nothing passed out of that governing body without Brown’s consent.

It was Speaker Brown’s unquestioned leadership and his approval of a Select Committee on Common Interest Developments that helped usher the Davis-Stirling Act to passage in both houses of the Legislature and, ultimately, it’s signing into law by Governor George Deukmejian.

Join us on February 27 to hear Speaker Brown and learn how the law that impacts millions living in our state’s 50,000 community associations came into being.

Join us in honoring Willie Brown (and those listed in the sidebar) at our Awards Dinner and Gala Celebration at the Fairmont Newport Beach Hotel. Click here to RSVP for the event. For more information contact Randall Avila at (949) 440-1027 or Events@QuimbyGroup.com.

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Jan 29

As most of you know, in addition to my weekly Sunday newsletters, I’ve taken on temporary duty assisting with a large state-wide event celebrating the 30th Anniversary of the Davis-Stirling Act.I encourage everyone to register for the historic February 27 Celebration which will feature keynote speaker Willie Brown, Senator Larry Stirling, Prof. Rosenberry and others (see side-panel for list of honorees). Tickets and sponsorships are still available but going fast. If you’re a manager, board member or homeowner in an HOA, you DON’T want to miss this event.


Adrian J. Adams
President, Foundation for California
Community Association Education


KATHARINE ROSENBERRY Law Professor Katharine Rosenberry’s signature contribution to community associations occurred in 1985 when she worked with Assembly members Gray Davis and Larry Stirling and a Task Force of industry leaders to craft legislation stabilizing California’s rapidly growing housing industry.Prof. Rosenberry identified 43 issues that needed to be addressed by the legislation. Overcoming great opposition, they drafted language, held hearings and then shepherded the bill through the Legislature. When it was signed into law by Governor Deukmejian, it became known as the Davis-Stirling Common Interest Development Act.

The Act established consumer protections with clear requirements for rules enforcement, maintenance, finances, reserve studies, dispute resolution and assessment collection.When the communist bloc fell, Professor Rosenberry was asked to lecture in the Czech Republic, Hungary and Poland on converting state owned apartments to private common interest developments. This was followed by a two-year project writing community association laws for England. And then, teaching positions at two law schools in China on cross-cultural approaches in common interest communities.

Join us in honoring Professor Rosenberry and others who made invaluable contributions to our industry at the 30th Anniversary Celebration and Awards Gala at the Fairmont Newport Beach HotelClick here to RSVP for the event.

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Jan 25

QUESTION: One of our residents is insisting that a board member who does not have a phone number with a local area code violates her rights to 24/7 access to the Board. Does he have to get a local area code?

ANSWER: Her “right” to 24/7 access to board members?? I diligently searched the U.S. Constitution, the California Constitution and the Davis-Stirling Act and found no such right. Maybe I missed something but I don’t think directors become indentured servants upon their election to the board.

Area Code. As for her complaint about calling an outside area code, I’m amazed she even has a director’s phone number. Under no circumstances are directors obligated to provide their phone numbers to residents, let along get a local area code.

Management. Residents should be calling the management company with maintenance requests and to lodge complaints. If they want to personally complain to board members, they can do so during the open forum session of board meetings.

LIMITING LAUNDRY

QUESTION: Some homeowners claim they have enough votes to restrict usage of the laundry to residents only. They feel some residents have guests who use the laundry excessively. Can they vote to restrict our laundry?

ANSWER: Your unhappy homeowners may have the votes but they don’t have the authority to adopt rules.

The only “rules” authority reserved to members is veto power. They can reverse a board-adopted rule but members cannot create or enforce rules. Adopting rules is a power of the board. (Civ. Code §4340; §4350

RECOMMENDATION: If there is a problem with an owner’s guest, a friendly talk with the owner may resolve the problem.

ELECTION NO-SHOWS

QUESTION: At our annual meeting, the inspector of elections arrived but no owners or board members were present. If she has enough ballots to establish quorum, can she open the ballots and tally the votes?

ANSWER: The shortest annual meeting I ever attended consisted of the president, the inspector of elections and myself. Nobody else attended. The inspector had sufficient ballots to establish quorum and the president called the meeting to order. The inspector opened the ballots and counted votes. Five minutes later she announced the results. The president adjourned the meeting and we all went home.

In your case, you don’t even have a director or attorney present. I suppose the inspector could proceed with opening and counting ballots:

All votes shall be counted and tabulated by the inspector or inspectors of elections, or the designee of the inspector of elections, in public at a properly noticed open meeting of the board or members. (Civ. Code §5120(a).)

However, to avoid inevitable complaints about opening ballots without a witness, the inspector should pull someone into the meeting. If she can’t find anyone, she should hold the ballots unopened until the next board meeting and have management give notice to the membership that ballots will be opened and counted then.

DELINQUENT OWNER
PRE-LIEN

QUESTION: We have an owner who is chronically delinquent. After we gave him a pre-lien notice, he paid. Based on his history we know he will again become delinquent. Can we continue the pre-lien process?

ANSWER: I passed this to our assessment collection expert, Richard Witkin. Following is his response:

If the account is current, you cannot continue under your last pre-lien letter. You must wait until he again becomes delinquent. If he paid his assessments but failed to pay prior collection costs and fees, you should accrue them on his account and include them the next time he defaults.

Attorneys’ Fees. As long as attorney’s fees incurred by the association are “reasonable,” they should be recoverable. (Civ. Code §5650(b)(1).) However, it would be best if the attorney’s fees were incurred at a time and date when the owner was delinquent. Fees associated with planning actions for future possible delinquencies are probably not recoverable.


Adrian Adams, Esq.
Adams Kessler PLC


“Legal solutions through knowledge, insight, and experience.” We are friendly lawyers; you can contact us at (800) 464-2817 or info@adamskessler.com.

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Jan 11

QUESTION: Is a board member allowed to vote on an issue according to his own personal opinions? Example: board member personally does not like a certain type of tree so he votes against planting them in the common areas.

ANSWER: Personal opinions…everyone has one. The law does not require directors abandon their opinions when elected to the board. If they did, whose would they adopt?

Rather, directors are required to make decisions (i) in good faith, (ii) in a manner they believe to be in the best interests of the association, and (iii) with such care as an ordinarily prudent person would use in similar circumstances. (Business Judgment Rule.)

If a director’s opinions are out of step with the community, homeowners can express their own views during Open Form and fellow directors can out-vote him. That’s why you have boards of five directors with majority votes–it exerts a moderating influence on outliers.

SUMMARY
OF NEW LAWS

The sausage factory in Sacramento gave us a number of new laws last year that went into effect January 1. Following are some of the more notable ones:

Internal Dispute Resolution. The ugliest of the new laws is an amendment that makes a mess of Internal Dispute Resolution (IDR). For years, IDR has been an effective no-cost way of resolving disputes in community associations. An owner could meet with a board member to discuss a grievance. The change in the law gives owners the right to bring a lawyer with them to an IDR meeting. (Civ. Code §5910(b); §5915(b)(4).) They can do so without prior notice, i.e., ambush the board. Moreover, there is no mediation privilege. That means anything said in IDR can be used against either party. Accordingly, a board member should not continue with IDR if an owner shows up with a lawyer. The meeting should be rescheduled so the association’s attorney can attend. See Recommendations.

Personal Agriculture. Despite any restrictions in an association’s governing documents, homeowners can plant personal-use food gardens in their exclusive use backyards. The bill does not authorize crops for commercial purposes or to be sold on the property. Nor does it authorize the growing of marijuana or other non-food crops. (Civ. Code §4750.)

Fines During Droughts. Homeowners already have the right to install water-efficient landscaping. The Davis-Stirling Act was amended to prohibit HOAs from imposing fines against members who reduce or eliminate watering vegetation during any period which the Governor or local government has declared a drought emergency. (Civ. Code §4735.) Another change makes unenforceable any requirement that owners pressure wash the exterior of their units. (Civ. Code §4736.)

Maintenance & Repairs. Maintenance obligations related to exclusive use common areas were clarified. Unless otherwise provided in an association’s CC&Rs, homeowners must maintain exclusive use common areas but the association is responsible for repairing and replacing them. (Civ. Code §4775.) This change takes effect 2017.

Solar Energy. HOAs can adopt reasonable rules that do not significantly increase the cost of a homeowner’s solar energy system or significantly decrease its efficiency. “Significantly” used to mean decreasing efficiency by 20% or increasing the cost by 20% (not to exceed $2,000). “Significantly” now means 10% and $1,000. (Civ. Code §714.)

COMPLETE LIST. For a complete list of new statutes and case law, see 2014 Changes in the Law.

CHRISTINE HULKA
JOINS ADAMS KESSLER

I am pleased to announce that Christine Hulka joined our firm. As our law practice grows, we are placing greater emphasis on response times, quality service and fixed fee products for our clients. Together with Nathalie Ross, Christine will oversee client services.

Christine is uniquely suited to assist managers and board members, having been president of her own association and then manager of common interest developments for one of the largest association management companies in the country.

As a former manager, Christine worked closely with board members, vendors and legal counsel on maintenance issues, contracts, budgets, reserves, payables, receivables, financial statements and litigation matters. As a result, Christine understands the need for quality information, fast response times and cost controls for clients.

Contact. You can contact Christine at (800) 464-2817 or christine@adamskessler.com.


Adrian Adams, Esq.
Adams Kessler PLC


“Legal solutions through knowledge, insight, and experience.” We are friendly lawyers; you can contact us at (800) 464-2817 or info@adamskessler.com.

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Jan 05
30th ANNIVERSARY
CELEBRATION!

Governor George Deukmejian and the Board of Directors of the Foundation for California Community Association Education invite you to a celebration for the entire community association industry–the 30th Anniversary of the Davis-Stirling Act.

Dignitaries. Be a part of history. Meet and hear from those who thirty years ago had a vision for community self-government that continues to have an enormous impact on California. Their work brought stability and financial safeguards to a way of life for 14.5 million Californians.The following honorees will be recognized:

Governor George Deukmejian
Governor Gray Davis
Mayor Willie Brown
Senator Larry Stirling
Prof. Katharine Rosenberry
The Task Force
California Law Revision Commission

Willie Brown. The charismatic and enormously entertaining former Mayor of San Francisco and former Speaker of the California Assembly, Willie Brown, will be the Keynote Speaker commemorating this landmark legislation and the people who made it happen.

The reception and gala dinner with live entertainment will be held:

   • Friday, February 27

   • Fairmont Newport Beach
     4500 MacArthur Blvd
     Newport Beach, CA

Reservations. Tickets are selling quickly. To attend, please reserve your seat online. You can also spend the night at the Fairmont with room reservations at a discounted rate. If you want to help sponsor the event, please go to sponsorships. For more information contact Randall Avila at (949) 440-1027 or Events@QuimbyGroup.com or visit www.fccae.org.

Foundation. This one-time industry-wide event is overseen by a 501(c)(3) Foundation set up for that purpose. The Foundation is comprised of industry leaders whose commitment to education is reflected in their dedication to the community association industry. As part of that commitment, the Board will be donating proceeds to the educational programs of the California Association of Community Managers (CACM), the Community Associations Institute (CAI), and the Educational Community for Homeowners (ECHO).

KAREN CONLON
NAMED EXECUTIVE DIRECTOR

I am pleased to announce that FCCAE’s Board of Directors named Karen Conlon as Executive Director of the Foundation.

Karen has had an extraordinary career that makes her uniquely qualified to coordinate the 30th Anniversary Celebration.

Having spent the past 22 years as President and CEO of the California Association of Community Managers (CACM), an organization that trains and certifies managers, Karen recognizes the importance of common interest developments to California’s housing and the positive impact of the Davis-Stirling Act on the industry.

Karen also appreciates the need for quality education for board members and managers and the importance of the Foundation’s grants to CACM, CAI and ECHO.

Please join me in welcoming Karen Conlon to the Foundation. We look forward to what will be an exciting event filled with dignitaries, industry leaders and a fun retrospect of events that occurred 30 years ago.

Adrian Adams, President
Foundation for California
Community Association Education


The Foundation thanks our
EVENT SPONSORS

(click on logos to visit their websites)


 
 

To be a sponsor, go to Sponsor the Celebration. For more information contact Randall Avila at (949) 440-1027 or Events@QuimbyGroup.com.

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