HOA Lawyer Blog

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.

TLG Welcomes Ramona Acosta as Director of Business Development!

Published on: March 17, 2014 | by Steven J. Tinnelly, Esq.

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.

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.

Do ‘No-Cost’ HOA Collection Companies ‘Wield Unchecked Power’?

Published on: March 12, 2014 | by Steven J. Tinnelly, Esq.

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).

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.
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.

‘Foreclosure Face-Off’ Article Published in ‘OC View’ Magazine

Published on: March 6, 2014 | by Steven J. Tinnelly, Esq.

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.

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.

New Client: Laurel Pointe Community Association

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

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.

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

New Client: Coral Sky Homeowners Association

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

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

Coral Sky is a brand new single-family home community in the city of Rancho Cucamonga being developed by Pulte Homes. Coral Sky is a small enclave of 53 homesites ranging in size from 20,000 sq. feet to 43,000 sq. feet (1 acre). It’s spacious, single-story homes will feature amazing layouts with unique features such as pristine courtyards, casitas, and cabanas. Coral Sky’s residents will enjoy equestrian trails and scenic community walkways, as well as gorgeous mountain and city views.

Our HOA lawyers and staff look forward to working with Coral Sky’s Board and management.

Court Upholds HOA Enforcement of ‘Maid Unit’ Rent Restriction

Published on: February 24, 2014 | by Steven J. Tinnelly, Esq.

The ability of California homeowners associations (“HOAs”) to adopt and enforce restrictions on the renting of units has been limited by changes in the law over the past couple of years. Those changes have purported to provide greater protections for homeowners seeking to rent out their units to third parties. HOAs have therefore been required to modify their approach to the enforcement of rent restrictions that may be contained in their governing documents, including the adoption of additional rent restrictions binding only on future homeowners.

However, a recent unpublished Appellate Court decision confirms the ability of a HOA to enforce rent restrictions adopted decades in the past that are intended to address the unique concerns and characteristics of the HOA’s development.

New Client: Mountain Estates Community Association

Published on: February 20, 2014 | by Steven J. Tinnelly, Esq.

We are proud to announce that the Mountain Estates Community Association has selected Tinnelly Law Group as their association’s legal counsel.

Mountain Estates is a brand new gated community in the city of Indio being developed by D.R. Horton. Mountain Estates will feature 96 spacious, single-story homes with beautiful finishes, fantastic entertaining spaces, and breathtaking mountain views.

Our HOA attorneys and staff look forward to working with Mountain Estates’ Board and management.

New Client: Loma Building Owners Association

Published on: February 12, 2014 | by Steven J. Tinnelly, Esq.

We are proud to announce that the Loma Building Owners Association has selected Tinnelly Law Group as their association’s legal counsel.

Loma is a commercial association located in beautiful downtown Laguna Beach. It consists of 10 professional office suites situated just blocks from the largest and most popular stretch of beach in Laguna, Main Beach.

Our HOA attorneys and staff look forward to working with Loma. We welcome Loma to our growing portfolio of commercial common interest development clients.

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