HOA Lawyer Blog

AB 2237: Contractor Licensing Law & Its Impact on HOA Managers

Published on: May 13, 2013 | by Steven J. Tinnelly, Esq.

*New Legislation

AB 2237 was passed in 2012 by the California Legislature to expand the legal requirements for the “contractors” who are required to have a General Contractor’s “B” license from the State of California.

The “contractors” who must be licensed are defined in Cal. Business and Professions Code Section 7026.1(b)(1). They include “[a]ny person, consultant to an owner-builder, firm, association, organization, partnership, business trust, corporation, or company, who or which undertakes, offers to undertake, purports to undertake, purports to have the capacity to undertake, or submits a bid to construct any building or home improvement project, or part thereof.” (Emphasis added.)

AB 2237 expands upon this definition by adding subsection (2) to Section 7026.1(b). Subsection (2) states that a “consultant” includes a person who either: (A) “Provides or oversees a bid for a construction project,” or (B) “Arranges for and sets up work schedules for contractors and subcontractors and maintains oversight of a construction project.” This language has spawned questions from community association/HOA managers who are concerned that, as a result of AB 2237, they may now be required to hold a license in order to perform common tasks such as obtaining bids and overseeing the progress of ongoing construction work.

A careful reading of Section 7026.1 and the legislative intent behind AB 2237 reveals that the answer to that question is generally “no.” …

New Client: Willmore Condominium Association

Published on: May 10, 2013 | by Steven J. Tinnelly, Esq.

willmore_new client_hoa law_attorney.png

We are proud to announce that Willmore Condominium Association has selected Tinnelly Law Group as their association legal counsel.

This beautiful 11-story building is an Italian Renaissance Revival, designed by the same architects that designed the Hollywood Roosevelt Hotel, and is a Historical Landmark Property.

Residents of the building enjoy the ambiance of the past. As a historic building, The Willmore has preserved many of the original elements from the 1920’s. Along with the stunning solarium, most units feature city or ocean views.

Our HOA Lawyers and staff look forward to working with Willmore Condominium Association.

Association Reserve Accounts and Reserve Studies

Published on: May 6, 2013 | by Steven J. Tinnelly, Esq.

piggy bank reserve studies hoa reserve accounts.png *New Library Article

“Always be prepared.” That simple phrase sums up the importance of funding and properly maintaining a reserve account. Accidents and surprise maintenance issues will inevitably pop up. When they do, the HOA that has been properly funding and managing its reserve account will be prepared to do what is necessary to protect the interests of the HOA and its members.

Our HOA lawyers have published a new article entitled “Association Reserve Accounts and Reserve Studies.” It covers the basics of reserve accounts and reserve studies, their importance, and the relevant obligations of a HOA and its Board. The article is available for download from our library.

TLG Accolades – April 2013

Published on: April 22, 2013 | 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 take the time to express their appreciation for the work we provide to their communities:

“Thanks, and you have provided top notch services.”
(Board President, Condominium Association in Ladera Ranch)

“Many thanks for your assistance in this matter.”
(Board President, Condominium Association in Long Beach)

“Thanks for honoring my request and for the excellent service you provide to our association.”
(Board President, Active-Adult Community in Menifee)

Our firm strives to serve our clients with the utmost care and attention. We are committed to building lasting relationship with our clients and to advancing the professional standards of our industry.

Is our HOA Required to Allow Artificial Grass?

Published on: April 17, 2013 | by Steven J. Tinnelly, Esq.

*Asked & Answered

Asked – Our HOA’s Architectural Committee received an application for a homeowner to install artificial grass in their front yard. Does Civil Code Section 1353.8 (Use of Low Water Using Plants) require us to approve it?

Answered – No. Civil Code Section 1353.8 renders void and unenforceable any restrictions in a HOA’s governing documents that prohibit the installation of low water-using “plants.” Artificial grass or synthetic turf is not a plant, but a synthetic material designed to look like grass.

The California Legislature has in the recent past proposed bills that would require HOAs to permit the installation of artificial grass in their communities. Those bills, however, were vetoed by California governors and ultimately never made it into law. The most recent veto by Governor Jerry Brown in 2011 was based on the Governor’s recognition that “[t]he decision about choosing synthetic turf instead of natural vegetation should be left to individual homeowners associations, not mandated by state law.”

HOAs may authorize the installation of artificial grass/synthetic turf, but they are not required to.

Before deciding to authorize artificial grass, the Board will want to check local ordinances for any restrictions, and develop guidelines for such characteristics as color, pile and weight, toxic materials, permeability, water absorption, and drainage. Additionally, even where artificial grass is permitted, a HOA may still set standards for its appearance and quality, and thus require a homeowner to submit a sample of the artificial grass as part of the homeowner’s architectural application.

Content provided by TLG attorney Terri Morris

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

New Client: Higgins Lofts

Published on: April 9, 2013 | by Steven J. Tinnelly, Esq.

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We are proud to announce that Higgins Lofts has selected Tinnelly Law Group as their association legal counsel.

This beautiful 10-story building in downtown Los Angeles was conceived and designed in 1910. Upon entering the lobby, residents are greeted with classic detailing including mosaic title flooring, caged elevators, and meticulous iron work. The basement and former boiler room is home to the world class Edison Lounge.

Residents of this 135 unit building are proud to be a part of living history, as Higgins Lofts is a wonderful example of the art, culture, and entertainment communities of downtown Los Angeles.

Our HOA Lawyers and staff look forward to working with Higgins Lofts.

Electronic Balloting May be Coming to HOA Elections

Published on: April 2, 2013 | by Steven J. Tinnelly, Esq.

Under the Davis Stirling Act as currently written, common interest developments (“CIDs”) are required to comply with certain procedures for conducting elections. Among other requirements, the Act requires CIDs run by homeowners associations (“HOAs”) to adopt rules and appoint inspectors for the purpose of verifying signatures, counting and tabulating votes. Additionally, the votes themselves must be placed on secret paper ballots, using a specific procedure requiring the use of double envelopes.

Although the rules were intended to improve and standardize the manner in which HOA elections are conducted, they have also had the unfortunate consequence of making it more difficult to achieve quorum. As a result, HOAs are expending more resources, time and money in their attempts to hold an effective election.

In response to these difficulties, the California Legislature has introduced Assembly Bill 1360 (“AB 1360”) sponsored by the CAI California Legislative Action Committee (“CLAC”). In short, AB 1360 proposes to modify the rules to authorize HOAs to conduct elections and other votes of the membership by electronic means. Although paper ballots would still be utilized, the Bill would require Associations to provide their members with the option of voting electronically.

To be kept up to date on the progress of AB 1360, visit CLAC’s blog. If you have questions or concerns regarding your HOA’s voting procedures, or would like to know more about the potential impact of AB 1360, contact your HOA’s legal counsel.

Content by TLG attorney Kai MacDonald

New Client: Alcott Community Association

Published on: March 28, 2013 | by Steven J. Tinnelly, Esq.

We are proud to announce that Alcott Community Association has selected Tinnelly Law Group as their association legal counsel.

Nestled in the Coyote foothills of Buena Park, Alcott provides residents with a small town feel in one of the most desirable areas of Orange County. Surrounded by parkland, sandstone cliffs, shady tress and California sagebrush, the landscape of the community is beautiful.

Alcott is rich in amenities, and is located conveniently close to popular recreation destinations.

Our HOA Lawyers and staff look forward to working with Alcott Community Association.

HOA Gets ‘Smoked’ in Nuisance Enforcement Case

Published on: March 19, 2013 | by Steven J. Tinnelly, Esq.

smoking-hoa

The problems posed by second-hand smoke have become a burning issue for California homeowners associations (“HOAs”), expecially condominium developments. A HOA typically does have the authority to adopt operating rules that prohibit smoking in common areas and exclusive use common areas; however, those rules may be insufficient to address problems posed by second-hand smoke emanating from inside an owner’s unit. Prohibiting that type of activity generally requires language to that effect contained in the HOA’s recorded CC&Rs. Where there is no such language, HOAs often refuse to get involved and opt to treat those situations as a “neighbor-to-neighbor” disputes.

However, we have written before about how a HOA may have an obligation to enforce the nuisance provisions contained in its CC&Rs to address problems posed by smoking within units. An Orange County jury recently affirmed this fact in the first ruling of its kind in California. The jury in Chauncey v. Bella Palermo Homeowners’ Association, et al., OCSC Case No. 30-2011-00461681, found the defendants HOA and its management company negligent and also found the HOA in breach of its CC&Rs for failing to enforce its nuisance provision protecting the plaintiffs’ rights to their “quiet enjoyment” of their unit. The jury held the HOA liable for doing nothing to abate the alleged nuisance resulting from the second-hand smoke, despite the fact that the CC&Rs contained no provision specifically prohibiting smoking within the units.

More and more municipalities are adopting “no-smoking” ordinances within multi-dwelling residential units. However, where there are no such ordinances, or any similar restrictions contained in a HOA’s recorded CC&Rs, a HOA may be still be obligated to enforce its nuisance provisions to address problems posed by second-hand smoke emanating from the interior of a unit. Where the problems persist, a HOA should consult with its legal counsel and also consider a formal amendment to its CC&Rs to prohibit smoking throughout the entire development.

Content by TLG attorney Terri Morris

Recovering Pre-Litigation Attorney’s Fees in HOA Disputes

Published on: March 13, 2013 | by Steven J. Tinnelly, Esq.

*New Case Law

In our recent blog post entitled “Are Attorney’s Fees for ADR Recoverable?” we touched briefly on the recently decided case of Grossman v. Park Fort Washington Association (2012) 212 Cal. App. 4th 1128 (“Grossman”). In response to requests for more information on this issue from our clients and industry partners, we felt it necessary to further address the reasoning behind the court’s ruling in Grossman.

In Grossman, a dispute between a homeowners association (“HOA”) and a homeowner relating to a claimed architectural violation was resolved by the trial court in favor of the homeowners. In awarding the homeowners attorney’s fees and costs arising from both pre and post-litigation activities, the trial court cited Civil Code Section 1354(c), which states that “[i]n an action to enforce the governing documents, the prevailing party shall be awarded reasonable attorney’s fees and costs.” (Emphasis added.)

The HOA objected to the award based on its argument that the statute did not authorize awarding pre-litigation attorney’s fees (fees incurred in participating in ADR) because such fees were not incurred as part of the action (the lawsuit) to enforce the governing documents. However, the appellate court disagreed with the HOA and ultimately affirmed the ruling, noting several key points…

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