HOA Lawyer Blog

California’s New Fire Prevention “Fee”

Published on: December 6, 2012 | by Steven J. Tinnelly, Esq.

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Homeowners in California should be expecting a new bill in their mailbox for the calendar year 2011 and onward. The California legislature has passed a controversial new Fire Prevention Fee which will aim to defray the State’s costs for fire prevention services. The new fee–argued by some to be a tax–will affect homes that are considered to be “habitable structures within the State Responsibility Area (SRA)” and within “the area of the state where the State of California is financially responsible for the prevention and suppression of wildfires.” Homeowners can check the Fire Prevention Fee website to determine if their home is located within the SRA area.

The new assessment fee for affected structures will be $150.00 per “habitable structure,” defined as “a building that can be occupied for residential use.” For affected multi-unit condominium buildings, the new regulations assess a fee of $150.00 for the first “dwelling unit” and $25.00 for each additional dwelling unit located within the building.

Condominium Associations located within the SRA that consist of multiple units may feel the biggest effect due to the new fees levied on each “dwelling unit.” Such Associations will need to determine how best to structure payment (e.g., paid by the Association as part of its annual budget or paid by each owner individually).

The content of this post was adapted from information provided by CAI’s Legislative Action Committee Blog. To read the original article, click here.

Can a HOA Member Inspect HOA Lease Agreements?

Published on: November 29, 2012 | by Steven J. Tinnelly, Esq.

*Asked & Answered hoa law firm

Asked – As a HOA member, do I have the right to see a copy of a lease agreement pertaining to a home that was acquired by my HOA through foreclosure of an assessment lien?

Answered – Yes, you may request to see a copy of the lease agreement. Under Civil Code §1365.2(a)(1)(D),a HOA member is entitled to inspect certain “Association records” for any “proper purpose reasonably related” to her interests as a member of the Association. “Association records” include “[e]xecuted contracts not otherwise privileged under law.” 1365.2(a)(1)(D).

The term “privileged” in Civil Code §1365.2(a)(1)(D) essentially pertains to confidential or sensitive information, as well as records/communications which are protected by attorney-client privilege. A standard lease agreement between a HOA and a renter is generally not a “privileged” contract and is therefore subject to inspection as an “Association record.”

The lease agreement may, however, include confidential information such as social security numbers. The HOA Board of Directors and/or management should ensure that such confidential information is adequately redacted from the lease agreement prior to providing it to a member for inspection. A HOA that has questions or concerns regarding the disclosure of HOA lease agreements and the information contained therein should consult with the HOA’s legal counsel.

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

New Client: Sandalwood Community Association

Published on: November 26, 2012 | by Steven J. Tinnelly, Esq.

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We are proud to announce that Sandalwood Community Association has selected Tinnelly Law Group as its new legal counsel.

Located in the city of Irvine, Sandalwood Community consists of 68 modern condominiums homes with backyard views of mountain hillsides.

Sandalwood residents enjoy association pools, spas, and a gym, as well as parks, retail and an elementary school all within walking distance.

Our HOA lawyers and staff look forward to working with the Sandalwood Community Association and to developing another lasting relationship with a HOA client.

Tinnelly Law Group Returns to the Families Forward Food Pantry

Published on: November 21, 2012 | by Steven J. Tinnelly, Esq.

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Last Friday Steve, Sommer, and Kai had the pleasure of returning to the Families Forward Food Pantry to once again join in preparing and distributing Thanksgiving Meals. Their time was spent sorting and prepping food for distribution, preparing group meal pickups for schools, and loading cars full of all the trimmings necessary for a wonderful Thanksgiving meal. The distributions on Friday and Saturday were expected to feed over 700 Orange County families, and the entire TLG team feels blessed for the opportunity to be a part of such a great cause!

Families Forward is a nonprofit organization that was founded in 1984 and is dedicated to providing supported housing programs for families in crisis. The comprehensive array of services offered at Families Forward empowers families to regain stability and self-sufficiency. Their homeless prevention services include career coaching, life-skills education, and food assistance. These services are supplemented by their rigorous Transitional Housing Program, which has resulted in more than 4 out of 5 families successfully transitioning from crisis to financial stability, giving their children a stable home to help them succeed in school. For more information about this organization, or to get involved click here.

The whole firm is looking forward to spending more time throughout the Holiday Season volunteering our time with Families Forward.

Tinnelly Law Group selects Families Forward Orange County as their charity of the 212 Holiday Season.

Published on: November 9, 2012 | by Steven J. Tinnelly, Esq.

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This Holiday Season, our firm has decided to volunteer our time working with Families Forward, an amazing organization right in our backyard. Yesterday, Steve, Terri, Kai, Will, and Sommer spent time working with other volunteers in the Families Forward food pantry. The TLG team sorted, organized and shelved donated canned and boxed goods that will be put together as Thanksgiving Holiday Meal baskets, as well as Family Forward’s bi-weekly food distributions. The TLG team is excited to return next week to help distribute the Thanksgiving Meal Baskets to hundreds of families.

Families Forward is a nonprofit organization that was founded in 1984 and is dedicated to providing supported housing programs for families in crisis. The comprehensive array of services offered at Families Forward empowers families to regain stability and self-sufficiency. Their homeless prevention services include career coaching, life-skills education, and food assistance. These services are supplemented by their rigorous Transitional Housing Program, which has resulted in more than 4 out of 5 families successfully transitioning from crisis to financial stability, giving their children a stable home to help them succeed in school. For more information about this organization, or to get involved click here.

The whole firm is looking forward to spending more time throughout the Holiday Season volunteering our time with Families Forward.

New Client: Summit Renaissance Homeowners Association

Published on: November 5, 2012 | by Steven J. Tinnelly, Esq.

HOA attorneys

We are proud to announce that the Summit Renaissance Homeowners Association has selected Tinnelly Law Group as its new legal counsel.

Located in the heart of Anaheim Hills, Summit Renaissance consists of 161 beautiful condominium and townhomes in a prestigious gated community.

Summit Renaissance residents enjoy a community pool, gorgeous views of local mountains, and hiking at the nearby Weir Canyon Wilderness Park.

Our HOA lawyers and staff look forward to working with the Summit Renaissance Homeowners Association and to developing another lasting relationship with a HOA client.

HOA Parking Rules Versus Handicap Parking Placards?

Published on: October 30, 2012 | by Steven J. Tinnelly, Esq.

*Asked & Answered hoa law firm

Asked – My HOA requires a parking decal to park in the community. Is my HOA allowed to enforce its parking rules on vehicles with handicap parking placards that are parked within designated parking areas, but are without the HOA required parking decal?

Answered – Yes. Typically, homeowners association (“HOA”) governing documents (e.g., “CC&Rs,” “Rules & Regulations”) contain provisions governing how vehicles may be parked in the common area streets or parking spaces. In the event that a parking violation occurs, the HOA has the authority to enforce disciplinary measures against the violating individuals in accordance with the applicable enforcement procedures set forth in the HOA’s governing documents. Although California Vehicle Code §22511.5 permits individuals with appropriate handicap placards to park in handicap spaces, those individuals must still comply with all other HOA parking rules. Individuals generally may not, therefore, circumvent the requirements of an HOA’s parking rules through the use of handicap placards or plates.

Upon receiving a proper request, a HOA may be required to make “reasonable accommodations” for disabled individuals by designating additional parking spaces as handicap parking spaces. If your HOA has received such a request, the issue should be directed to your HOA’s legal counsel for guidance.

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

TLG Hires Sommer Banich as Director of Marketing & Operations!

Published on: October 24, 2012 | by Steven J. Tinnelly, Esq.

hoa law We are proud to announce that on October 1, 2012 the Tinnelly Law group welcomed Sommer Banich as its Director of Marketing & Operations. Ms. Banich will be responsible for crafting and implementing a cohesive marketing plan, as well as creating and implementing operations processes to improve the service the firm provides to its hundreds of HOA clients throughout the State of California.

“We are incredibly excited to have Ms. Banich join the TLG team. We know she will be an asset in helping to steer the firm’s continued growth while ensuring that we retain the level of quality and responsive service for which we are known.” – Steve Tinnelly, Managing Shareholder.

Prior to joining the Tinnelly Law Group, Ms. Banich was an integral part of the Business Development Department at Merit Property Management, one of California’s leading community management companies. Ms. Banich graduated from California State University at Fullerton with a Bachelor of Arts Degree in English.

To reach Ms. Banich via Email, click here.

Assessment Collections Fees in “No-Cost” Collections Contracts

Published on: October 22, 2012 | by Steven J. Tinnelly, Esq.

*New Case Law hoa law firm

The United States Bankruptcy Court in California recently ruled in a case that may impact the terms under which Homeowners Associations (“HOAs”) contract with collections companies to pursue delinquent assessments.

In In re Antonio Cisneros, the debtor, Cisneros, owned two properties within the HOA and had fallen behind on his assessment payments. Cisneros ultimately filed Chapter 13 bankruptcy in order to save his properties and cure his assessment arrears. The HOA had contracted with a collections company to recover the delinquencies from Cisneros. That contract specifically stated that if the collections company was “unable to collect fees or costs from the delinquent Owner or other responsible party, [then the] Association shall not be responsible for such fees or costs.” (Emphasis added.) Accordingly, under the terms of the contract, the HOA was under no true obligation to pay the fees or costs incurred by the collections company. That contractual provision was what the Bankruptcy Court relied upon in disallowing the collections company’s claims to recover its roughly $14,000 in collections fees and costs from Cisneros…

AB 2273: Resecuring HOA Assessment Streams from Foreclosed Properties

Published on: October 17, 2012 | by Steven J. Tinnelly, Esq.

*New Legislation

Homeowners Association (“HOA”) Boards and industry professionals are keenly aware of the financial impact that the economic downturn has had on HOAs throughout California, especially with foreclosures. The difficulty in identifying/contacting the bank who foreclosed on a property, as well as delays in the recording of certain property transfer documents, has hampered the ability of HOAs to quickly reestablish the assessment revenue stream from the new owner of the foreclosed property (often, the bank).

Fortunately, AB 2273 was recently signed into law to add new Section 2924.1 to the Civil Code and amend current Section 2924(b) of the Civil Code. AB 2273 serves two important functions:

It requires the foreclosing party to record a sale within 30 days of the sale to help the HOA identify new owners; and
It shortens the time for HOAs to be notified by the foreclosing party of the change in ownership: 15 days from the date of sale. However, this only applies if the HOA has recorded a “Request for Notice” prior to the property receiving a Notice of Default.

AB 2273 is another step toward helping HOAs reduce the financial impact the economic downturn is having on their budgets. It also underscores how important it is for a HOA to record a blanket “Request for Notice” pursuant to Section 2924(b). HOA Boards and Managers that are dealing with defaulting properties should contact their HOA attorney to ensure that all appropriate steps are taken to help the HOA quickly reestablish the assessment stream from a foreclosed property.

To read the text of AB2273, click here.

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