The Corporate Transparency Act (“CTA”), enacted in December 2020, aims to increase corporate ownership transparency to combat money laundering, terrorism financing, and other illegal activities. The CTA requires many small businesses, classified as “reporting companies,” to submit beneficial ownership information (“BOI”) reports to the Financial Crimes Enforcement Network (“FinCEN”). This…
Articles Posted in HOA Governance
Email Discussions Between HOA Board Members are not “Meetings”
*New Case Law The Open Meeting Act (“OMA”) contains various provisions regulating how the board of directors of a homeowners association (“HOA”) may meet and conduct business. One of the most common questions we receive pertains to whether email exchanges between board members on items of HOA business constitute a…
New ‘Community Association Update Newsletter’ – Issue 57
In case you missed it, Issue # 57 of our ‘Community Association Update’ newsletter is available now! Topics covered in this issue include: AB 1410 – Speech on Social Media; Room Rentals; Enforcement During Emergencies AB 1738 – EV Charging Stations in Existing Multi-Family Developments SB 897 – Accessory Dwelling…
The Benefits of Board Education
In the State of California, most HOA’s are non-profit corporations managed by a board of directors composed of volunteer homeowners elected by the membership. Boards derive their authority from the governing documents including the Articles of Incorporation, Bylaws, and Covenants, Conditions, and Restrictions (CC&Rs) that impose rules and restrictions on…
Evidence of Violations is Necessary
There will come a time when a homeowner violates an association’s governing documents (i.e., CC&Rs, Rules & Regulations, Architectural Guidelines…etc). If there is a possibility those violations will be litigated, the association must have a proper trail of evidence to bolster their claims. Q: What are some types of violations…
What the Cluck? Addressing Backyard Chickens in HOA’s
It is becoming increasingly popular to raise chickens in suburban and even in urban areas. Chickens offer a continuous source of fresh eggs and arguably help with pest control. Conversely, chickens can be loud, messy, attract coyotes, and arguably are best suited for rural, country life. Because many municipalities have…
How to Handle Potential Conflicts of Interest
Conflicts of interest present possible liabilities that homeowners associations (“HOAs”) should do their utmost to avoid. There are issues that need to be deliberated and decided upon by the Board of Directors; however, in some situations, not all Directors should take part in the decision-making. A common scenario includes a…
Unmasking Your HOA’s Common Area Facilities
California has lifted its indoor mask mandate for vaccinated individuals. While most HOA industry professionals took the position that the mask mandate did not apply to common interest developments and the HOAs that govern them because such facilities are not “places of public accommodation” (see Carolyn v. Orange Park Community…
What is the Proper Procedure to Adjourn the Annual Meeting?
*Asked and Answered Asked – We recently concluded our Annual Meeting of the Membership. As always, we failed to achieve quorum. Rather than successively adjourn and reconvene the meeting, the Board concluded the meeting. Now we have several owners complaining, saying that the proper procedure was not followed when the…
Can the Board Reconsider an Approved Motion?
*Asked and Answered Asked – Can the Board reconsider a motion that was previously passed by a majority vote? One of the directors that voted in opposition to the motion would like the Board to reconsider. Answered – One of the Board’s primary responsibilities is to make decisions on behalf of…