The California Air Resources Board (“ARB”) passed a regulation (“Regulation”) that requires diesel trucks and buses that operate in California to be upgraded to reduce emissions. The Regulation has a direct impact on HOAs and requires them to take steps to verify that certain vehicles they hire are properly certified…
Articles Posted in HOA Governance
FHA Proposes New Rule for Condominium Certification & Lowers Owner-Occupancy Requirement
We previously blogged about H.R. 3700, the “Housing Opportunity Through Modernization Act of 2016”, which was signed by the President on July 29, 2016. H.R. 3700 required the Department of Housing and Urban Development (“HUD”) to streamline the Federal Housing Administration (“FHA”) recertification process, provide regulations for commercial space exemptions,…
Business Judgment Rule Does Not Protect the Willfully Ignorant
*New Case Law Volunteer homeowners association (“HOA”) directors are fiduciaries who are held to high standards of conduct when making decisions or taking actions on behalf of the communities they represent. Sometimes those decisions, which may seem reasonable at the time, ultimately lead to problems for the HOA or its…
Associations Could Be Held Liable for the Employees of Independent Contractors
On August 27, 2015, the National Labor Relations Board (“NLRB”) published its decision in the Browning-Ferris Industries of California, Inc. case (“BFI Case”). In that case, Browning-Ferris Industries of California, Inc. (“BFI”) retained the services of Leadpoint Business Services (“LBS”) to provide staff to one of BFI’s recycling facilities. The…
Homeowner Attorneys at your HOA’s Board Meetings? This Could Become the New Normal
Civil Code Section 4925 grants to each member of a homeowners association (“HOA”) the right to attend HOA board meetings (except for executive session meetings). Section 4925 also grants members with rights to speak at board meetings and to address the board during open forum. However, these rights are explicitly granted…
‘Substantial Compliance Test’ Possibly Applicable to Open Meeting Act Requirements
*New Case Law HOA board meetings are governed by the “Common Interest Development Open Meeting Act” (“Open Meeting Act”)(Civil Code Sections 4900 through 4955). The Open Meeting Act is designed to bring a sense of transparency to HOA governance, and is similar in purpose to California’s “Brown Act” (Government Code…
Modifying Enforcement Policies; Avoiding Claims of ‘Selective Enforcement’
One problem that arises in the context of enforcing homeowners association (“HOA”) governing documents pertains to how consistently certain use restrictions in the governing documents are enforced over time. For example, if a HOA has historically failed to enforce a particular restriction, a decision to enforce that restriction against a…
AB 2430 Signed: HOA Transfer Disclosure Docs; Seller Paid Fees
*New Legislation Civil Code Section 4530 sets forth the responsibility of homeowners associations (“HOAs”) to provide copies of governing documents, financial disclosures and other documents to a homeowner (or a homeowner’s authorized agent) within ten (10) days of a receipt of a request for those documents. This applies in the…
Are You Prepared for the New Annual Disclosures?
For many associations with a December year end, September marks the first opportunity for the board of directors to review the first draft of the budget and disclosures materials. As of January 1, 2014, changes to the Davis-Stirling Act now require that budget documents and disclosures be distributed in the…
Inspection and Copying of Association Records
*New Library Article There are numerous records and items of information maintained and generated by a homeowners association (“HOA”) in the course of its operations. It is common for a HOA member to request copies of such records and information, especially in connection with an ongoing dispute the member may…