We are proud to announce that JP Ranch Community Association has selected Tinnelly Law Group as their association’s legal counsel.
JP Ranch is a master planned community consisting of 786 single family homes nestled in the foothills near the Calimesa Country Club & Golf Course.
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Our HOA attorneys and staff look forward to working with JP Ranch’s Board and management. |
*Asked & Answered
Asked – Is it common for an association to create a website and share certain information via this website with owners/residents of the community? If yes, what are the regulations?
Answered – Yes. A community website can be a valuable and effective communication tool by allowing residents to access homeowner association (“HOA”) information 24 hours a day, seven days a week. While there are no specific regulations regarding HOA websites, there are a few pitfalls that should be avoided when sharing community information in a public forum.
A typical HOA website will provide informational tools to the residents, including access to HOA documents, calendar of events, board meeting agendas, contact information, etc. The board may post most of these items within a public area of the website. However, some items will need to be housed in a secure location. For example, access to the HOA’s CC&R’s, Bylaws, and other governing documents should be restricted to a “Members Only” location of the site, and be protected via a user name and password.
The board may also consider posting disclosure notices, such as the Annual Budget Report, Annual Policy Statement, and other community-wide disclosures on the site. As noted above, these documents should be contained within the “Members Only” section of the website. The HOA would still be required to provide these notices to the membership per the General Delivery requirements outlined in Civil Code § 4045; however, keeping a copy on the website provides the members with a quick and convenient location to obtain additional copies, if necessary.
If the HOA allows its members to review assessment account information, or pay assessments online, the members will need to able to access a secure area of the website in order to protect their private information. To protect the HOA from liability from data breaches, be sure to utilize a payment vendor that is PCI Compliant. PCI Data Security Standards include requirements to maintain a firewall to protect cardholder data, encrypt transmission of cardholder data, use and regularly update anti-virus software, assign a unique ID to each user, and regularly test security systems, among other things.
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Some HOA websites also include a chat room/forum for residents. Keeping your website social can help build a sense of community. However, it can also be a place for members to voice their grievances. Before including this feature, the board should work with the HOA’s legal counsel to create a Terms of Use Policy, and determine any disciplinary action for violations of this Policy. Residents will need to agree to the Terms of Use prior to being allowed access to the chat room/forum. In addition, the HOA should have someone available to moderate the site, so inappropriate comments can be immediately removed. Due to the time and cost associated with monitoring an online forum, the board may find it more beneficial to instead have a list of Frequently Asked Questions (“FAQs”), as well as a Contact Form, where residents can have their questions quickly answered. Above all, the HOA needs to ensure that the website’s information is kept up to date and relevant to ensure that residents keep coming back. |
Blog post authored by Tinnelly Law Group’s Director of Business Development, Ramona Acosta.
To submit questions to the HOA attorneys at Tinnelly Law Group, click here.
We are proud to announce that Barrington’s Terra Vita, Inc. has selected Tinnelly Law Group as their association’s legal counsel.
Terra Vita is a Mediterranean-style condominium association located in the Sawtelle neighborhood of West Los Angeles. Consisting of 16 spacious units, the community is a walker’s delight, conveniently located within a 15-minute walk to parks, recreation centers, and restaurants.
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Our HOA attorneys and staff look forward to working with Terra Vita’s Board and management. |
We are privileged for the opportunities we have to build relationships with our HOA clients throughout the state of California. We are humbled when board members and managers take the time to express their appreciation for the work we provide to their communities:
“You are doing a wonderful job and we all appreciate it.”
(Board President, Condominium Association in Claremont)
“The Executive board & I send sincere thanks for your diligent assistance on our behalf…as well as the homeowners in this matter.”
(Board President, Condominium Association in Costa Mesa)
“Thanks for your diligent work collecting on this matter!”
(Account Executive, Master Association in Laguna Niguel)
“Amazing!! Thanks for all the hard work on this one!”
(Management Executive, Master Association in Hesperia)
“Thank you for all your help with all of this!!!!”
(Community Manager, Condominium Association in Santa Clarita)
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Our firm strives to serve our clients with the utmost care and attention. We are committed to building lasting relationships with our clients and to advancing the professional standards of our industry. |
*New Case Law
It is not uncommon for a homeowners association (“HOA”) to enter into contractual arrangements with a third party where the rights and responsibilities under that arrangement are between the third party and each of the HOA’s members. Under such circumstances, the HOA’s involvement may be limited solely to collecting fees from the members and passing them on to the third party. Because the HOA (as an entity) is not the beneficiary of the contract, there is uncertainty as to whether the HOA has standing to assert claims against the third party on behalf of the HOA’s members. California Civil Code Section 5980 provides a HOA with standing to initiate legal action “in its own name as the real party in interest and without joining with it the [HOA’s] members” in matters relating to enforcement of the HOA’s governing documents, as well as matters involving or arising out of damage to the common area and/or to a separate interest which the HOA is obligated to maintain or repair. However, there is no statutory provision clearly addressing whether a HOA has such standing in matters pertaining to the rights of the HOA’s members in contracts with third parties.
Fortunately, the recent case of Market Lofts Community Association v. 9th Street Market Lofts, LLC (2014) 222 Cal. App. 4th 924 (“Market Lofts”) provides some guidance on this issue.
We are proud to announce that Brightwater Community Center Association has selected Tinnelly Law Group as their association’s legal counsel.
Brightwater is a brand new recreation center in the city of Huntington Beach being developed by Woodbridge Pacific Group. The 2,000 square foot Brightwater Club will feature a combination lap and volleyball pool, children’s pool, spa, gym, and community events room.
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Our HOA attorneys and staff look forward to working with Brightwater’s Board and management. |
We are proud to announce that Ramona Acosta has joined the Tinnelly Law Group as the Director of Business Development, managing the firm’s public relations and marketing efforts. Ms. Acosta has been active in the CID industry with nearly 20 years’ experience as a manager of homeowners associations and management company executive. She has earned the prestigious Professional Community Association Manager (PCAM) designation from the Community Associations Institute, and currently serves as a Delegate and PR Chair to the California Legislative Action Committee (CLAC).
For Ms. Acosta’s full bio, click here.
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We are very excited to have Ms. Acosta join our team. Her wealth of experience working directly with Boards of Directors, vendors, and community managers gives her unique insight into the issues affecting our clients and the ways in which our firm can best serve them. |
In October of 2012, we blogged about a United States Bankruptcy Court case that addressed the proper interpretation and effect of Civil Code Section 5650 allowing for a HOA to recover delinquent assessments, along with “reasonable costs incurred in collecting the delinquent assessment, including reasonable attorney’s fees.” In sum, the Court ruled that the delinquent homeowner was not liable for the fees and costs imposed by the HOA’s collection company that was operating on a contingency basis. Because the HOA was not responsible to pay the collection company’s fees directly, those fees were not costs “incurred” by the HOA which the HOA was legally entitled to recover from the delinquent homeowner. We then predicted that the case may affect the terms under which collection companies contract with HOAs, especially those companies that operate on a contingency (“no-cost”) basis.
Another case currently being litigated in Northern California is addressing this same issue. Though the case is still pending, a recent order issued by the United States District Court, N.D., California illustrates the how the courts may be trending with regard to the fees and costs imposed by collection companies that contract with HOAs on a contingency basis:
“Although no California appellate court has directly addressed whether, as here, a third-party vendor acting on behalf of a HOA can lawfully charge a delinquent homeowner fees not incurred by the HOA, the aforementioned authorities prompt a conclusion that [the collection company’s] right to impose debt collection fees against [the homeowner] extends no further than the [HOA’s] right to do the same….[the collection company’s] fees apparently are neither incurred nor paid by the HOAs that contract for the company’s ‘no-cost’ services. If California law nonetheless entitled [the collection company] to impose the fees of its choosing against homeowners…the company would wield unchecked power to extract a cascade of fees and costs from a HOA’s delinquent members.” (Emphasis added).
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There has been a string of recent court cases illustrating how now, more than ever, HOAs and collection companies are being scrutinized for their collection procedures. HOA Boards and managers should be cognizant of the legal requirements with regard to assessment collection, and how deviations from those requirements may expose the HOA to liability. |
Be sure to check out Steve Tinnelly’s latest article he authored for the “OC View,” an educational bi-monthly magazine published by the Orange County Regional Chapter of the Community Associations Institute (CAI).
The article, entitled “Foreclosure Face-Off,” compares and contrasts the two foreclosure processes available to California HOAs in their assessment collection efforts (non-judicial and judicial foreclosure). It discusses the primary advantages and disadvantages associated with each process, and how they may be impacted by economic factors and issues unique to each delinquency. Our firm is privileged to have the opportunity to work with CAI and to contribute to its educational efforts. For more information on CAI, we encourage you to visit its website at caionline.org.
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Tinnelly Law Group is proud to provide its clients with access to comprehensive, attorney-supervised assessment collection services through the use of its affiliate, Alterra Assessment Recovery (“Alterra”). Alterra’s service offering includes both foreclosure processes, and an array of ancillary services developed to resolve delinquent matters as quickly and efficiently as possible. For more information on Alterra, visit its website at alterracollections.com. |
We are proud to announce that the Laurel Pointe Community Association has selected Tinnelly Law Group as their association’s legal counsel.
Laurel Pointe is a brand new gated community in the city of Vista being developed by Pulte Homes. Laurel Pointe is located just seven miles from the Pacific Ocean and sits above the incredible 16 acre Vista Sports Park. Laurel Pointe’s spacious homes will feature distinctive architectural styles including Spanish Colonial, Early California and Monterey. Its residents will enjoy dedicated walking paths to the Vista Sports Park, as well as short walks to the Melrose Sprinter Station and the Guajome Regional Park.
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Our HOA attorneys and staff look forward to working with Laurel Pointe’s Board and management. |
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