HOA Lawyer Blog

HOA Dealing with Unruly Tenants?

Published on: May 19, 2014 | by Steven J. Tinnelly, Esq.

*Asked & Answered

Asked – A renter/tenant within our community is continually engaging in improper conduct, violating the governing documents, and causing nuisances that are impacting surrounding homeowners. Is there anything the HOA can do to evict the tenant? What steps can the Board of Directors take to prevent situations like this from happening in the future?

Answered – Improper conduct of tenants is a problematic situation commonly faced by homeowners associations (“HOAs”). Tenants often are not as involved in the affairs of the HOA as that of the HOA’s members, nor do tenants feel the same sense of investment in the community. Additionally, members who rent out their homes typically prioritize rental income over the concerns of neighboring homeowners.

The degree to which a HOA may take action directly against an unruly tenant will be principally governed by the HOA’s governing documents–specifically, the HOA’s recorded declaration of covenants, conditions and restrictions (a.k.a. “CC&Rs”). The restrictions in the CC&Rs are “equitable servitudes” that are enforceable against the owners of the “separate interests” within the HOA (the HOA’s members). Civ. Code § 5975. CC&Rs may contain provisions requiring tenants to comply with the HOA’s governing documents. However, those provisions essentially confer obligations upon the members to control the conduct of their respective tenants. Therefore, any remedies available to the HOA in response to tenant violations or nuisance activities must generally be pursued through action against the tenant’s landlord (the HOA member), not the tenant.

However, there are ways in which a HOA may broaden its ability to take action directly against a tenant. For example, a HOA can amend its CC&Rs to require any leases between a member and a third-party tenant to contain language which: (1) requires the tenant to comply with the governing documents, (2) grants the HOA the authority to take action directly against the tenant in response to violations, and (3) holds the landlord-member responsible for the HOA’s attorneys’ fees and costs incurred in taking such action. Such language would make the HOA a “third-party beneficiary” under the lease with the contractual right to enforce its terms through an eviction action or otherwise. Such language will also motivate members seeking to rent out their homes to secure higher-quality tenants at the outset.

In the absence of such language, the HOA should take formal action directly against the tenant’s landlord (the HOA member). Faced with the threat of fines and costly legal action, the member will likely realize that his/her financial interests are better served through securing a different tenant. A HOA dealing with unruly tenants should therefore seek the assistance of its legal counsel to determine the best course of action.

To submit questions to the HOA attorneys at Tinnelly Law Group, click here.

New Client: Bayview Terrace Homeowners Association

Published on: May 5, 2014 | by Steven J. Tinnelly, Esq.

We are proud to announce that Bayview Terrace Homeowners Association has selected Tinnelly Law Group as their association’s legal counsel.

Bayview Terrace is a private gated community located on the beautiful Back Bay in Newport Beach.

Our HOA attorneys and staff look forward to working with Bayview Terrace’s Board and management.

New Client: Spring Valley Lake Association

Published on: April 28, 2014 | by Steven J. Tinnelly, Esq.

We are proud to announce that Spring Valley Lake Association has selected Tinnelly Law Group as their association’s legal counsel.

Spring Valley Lake (“SVL”) consists of 4,205 individually owned lots. SVL’s amenities include a 200 surface acre fresh water lake, a community building, an equestrian area and three parks. There is a privately owned and operated country club and golf course that meanders through the community. SVL is located in the High Desert region of Southern California between the borders of Victorville and Apple Valley.

Our HOA attorneys and staff look forward to working with Spring Valley Lakes’ Board and management.

Clarifying Attorney-Client Privilege in HOA Construction Defect Litigation

Published on: April 23, 2014 | by Steven J. Tinnelly, Esq.

*New Case Law

Civil Code Section 6150 requires that a homeowners association (“HOA”) make various disclosures to its membership in the context of construction defect litigation. The HOA is further required to hold a meeting of its membership to “discuss problems that may lead to the filing” of a construction defect action, as well as the options available to the members to address those problems.

Such a meeting will likely involve communications between the HOA’s construction defect attorney and individual members of the HOA whom are not the attorney’s direct clients. Therefore, the extent to which those communications are protected by the attorney-client privilege may be uncertain. Fortunately, the recent case of Seahaus La Jolla Owners Association v. La Jolla View LTD addressed this issue and clarified the privileged nature of communications between a HOA’s attorneys and its membership in the context of construction defect litigation…

New Client: JP Ranch Community Association

Published on: April 21, 2014 | by Steven J. Tinnelly, Esq.

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.

Our HOA attorneys and staff look forward to working with JP Ranch’s Board and management.

Community Website for our Homeowners Association?

Published on: April 16, 2014 | by Steven J. Tinnelly, Esq.

*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.

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.

New Client: Barrington’s Terra Vita, Inc.

Published on: April 11, 2014 | by Steven J. Tinnelly, Esq.

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.

Our HOA attorneys and staff look forward to working with Terra Vita’s Board and management.

Alterra Assessment Recovery Accolades

Published on: April 4, 2014 | by Steven J. Tinnelly, Esq.

accolade ribbon-blog.png 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)

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.

HOA Has Standing to Sue Developer Over Parking Rights of HOA’s Members

Published on: April 1, 2014 | by Steven J. Tinnelly, Esq.

*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.

New Client: Brightwater Community Center Association

Published on: March 26, 2014 | by Steven J. Tinnelly, Esq.

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.

Our HOA attorneys and staff look forward to working with Brightwater’s Board and management.

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