HOA Lawyer Blog

Complaining about your HOA is a Constitutionally Protected Activity

Published on: March 28, 2011 | by Steven J. Tinnelly, Esq.

A recently decided case underscores the fact that speaking out against the action of a HOA’s Board of Directors, agents and/or management is a constitutionally protected activity. In Country Side Villas Homeowners Association v. Susan Ivie, 193 Cal.App.4th 1110 (2011) (“Country Side“), a homeowner (“Ms. Ivie”) was upset at the Association’s newly elected Board and newly hired Attorney for their new interpretation of a maintenance provision in the CC&Rs concerning balconies. Ms. Ivie was concerned about the lack of funding for the new maintenance obligation and also that the decision was being made by the Board for self-serving reasons. The case ultimately went to trial where the Association sought a judicial determination as to the interpretation of the CC&Rs and also sought damages in the form of attorneys’ fees from Ms. Ivie.

The most interesting aspect of the holding is that the appellate court ultimately affirmed the trial court’s granting of Ms. Ivie’s anti-SLAPP motion. “SLAPPs” (“Strategic Lawsuits against Public Participation”) are civil complaints or counterclaims in which the alleged injury was the result of petitioning or free speech activities protected by the First Amendment of the US Constitution. California has an anti-SLAPP statute (Civil Procedure Section 425.16) that provides for a special motion to strike a complaint where the complaint arises from conduct that falls within the rights of petition and free speech.

HOA Members Concerned Over High-Speed Rail Plans

Published on: March 21, 2011 | by Steven J. Tinnelly, Esq.

The Problem of Suspended Homeowners Associations

Published on: March 18, 2011 | by Steven J. Tinnelly, Esq.

California Homeowners Associations (“HOAs”) primarily exist as California Nonprofit Mutual Benefit Corporations. We have recently encountered some instances where smaller and/or self-managed HOAs have failed to file and pay their state corporate taxes and/or make certain corporate filings. The unfortunate result for these HOAs is that their California corporate status is being suspended.

The exercise of corporate powers, rights and privileges may be suspended both under California Revenue and Taxation Code Section 23301 for a HOA’s failure to pay taxes and under California Corporations Code Section 5008.6 for the HOA’s failure to file certain corporate statements. Once a HOA is suspended, so too are its powers, rights and privileges which are outlined in its governing documents.

These powers, rights and privileges are essential to the effective management and functioning of its community. Should directors or agents of a suspended HOA even attempt to carry out the powers of the HOA during the period of its suspension, California Revenue and Taxation Code Section 19719 may punish them “by a fine of not less than $250 and not exceeding $1,000, or by imprisonment not exceeding one year.”

City Held Responsible for Maintaining Berm Supporting HOA Property

Published on: March 14, 2011 | by Steven J. Tinnelly, Esq.

In Coronado Cays Homeowners Association v. City of Coronado (2011), the City of Coronado (“City”) appealed a judgment in which the court determined the City, rather than the Coronado Cays Homeowners Association (“Association”) is responsible for the maintenance of a berm that provides lateral support to bulkheads located on Association property.

The original developer of the project had placed concrete bulkheads along “Lot 90” of the development to act as a retainer for the waterway that was to be dredged on the adjoining lot, “Lot C”. The developer then dedicated “Lot C” to the City for public recreational use while reserving a 55′ wide easement for docks and related structures for the exclusive use of the Association’s residents.

The gradual erosion of the supporting berm in which the bulkheads are embedded resulted in the failing of several bulkheads. Though the Association conceded that it is responsible for maintaining the bulkheads, the Association sought a judicial determination that the City is responsible for maintaining the berm since it is located in the waterway.

Homeowners Compelled to Submit to Hoarding Inspections by HOA

Published on: March 11, 2011 | by Steven J. Tinnelly, Esq.

Laguna Woods’ United Mutual HOA board voted unanimously this month to adopt a policy to compel residents suspected of hoarding to allow the association to inspect their home.

In the wake of the policy’s adoption, the HOA’s board of directors sought to assure the association’s members that the policy would not be abused and that members would not be subject to the HOA “breaking down” their doors.

The policy states that once a complaint is filed by one of the association’s members, an inspection would be ordered of the residence where the hoarding is suspected. The HOA board must first get the resident’s permission to enter the unit for the inspection. However, residents who refuse the inspections will be called to a disciplinary hearing before the board.

Homeowners Associations Saving Money with Solar Power

Published on: February 23, 2011 | by Steven J. Tinnelly, Esq.

The rough economic times have encouraged Homeowners Associations to look for ways to reduce their expenditures. In an effort to reduce electricity costs, some Homeowners Associations in Arizona are turning to solar power. An article published in the Arizona Republic highlights one such Homeowners Association, the Sunbird Golf Resort.

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After learning that one owner within the Association was able to reduce his personal electricity expense to approximately $15.00/month by utilizing solar technology, Sunbird’s management became interested in exploring potential opportunities to utilize solar power for the Association at large.

The first application of solar power was the installation of solar-powered heating for the community swimming pool. This application was able to immediately reduce what had been a $26,000 annual expense for the Association.

The Association is now looking for ways to further expand its implementation of solar power, including powering their streetlights and clubhouse.

Homeowners Associations in California may want to explore the feasibility of implementing alternative energy within their communities. Some CC&Rs may restrict or prohibit these installations; however, any such restrictions flatly prohibiting solar panels are null and void in California. If you would like some guidance on this issue, contact our offices to discuss with one of our attorneys the options available to your Association.

Should a HOA Foot the Repair Bill for Dilatory Owners?

Published on: February 9, 2011 | by Steven J. Tinnelly, Esq.

A HOA may not be responsible for the entire cost to repair damage if the owner was slow to disclose the situation to the HOA.

The heavy rains that hit Southern California this winter have unfortunately resulted in many instances of leaks and water intrusion. If a Homeowners Association (“HOA”) is obligated under its Governing Documents to repair/maintain the exterior walls of units, it is likely also obligated to repair damage to the interior of units caused by water leaking through the exterior walls.

However, if an owner is unreasonably slow to notify the HOA of a leak, the HOA may not be responsible for the entire cost to repair the damage. HOA Governing Documents typically include provisions that hold owners accountable for damage caused by their willful or negligent conduct. Additionally, California caselaw requires that owners use “ordinary care and diligence” to prevent an unwarranted piling up of damages. If the owner failed to disclose the leak to the HOA in a timely manner, the HOA may hold the owner responsible for the portion of the repair cost attributable to the owner’s unreasonable delay in disclosure.

A HOA’s Governing Documents outline the HOA’s obligations to repair/maintain various areas within the community. However, situations often arise where the scope of the HOA’s obligations may not be clearly defined.

TLG Secures $170,000 in Attorneys’ Fees for HOA Client in Orange

Published on: February 4, 2011 | by Steven J. Tinnelly, Esq.

TLG awarded $170,000 in attorneys’ fees in maintenance enforcement suit for our HOA client in the City of Orange

For those of you that read our blog post, you know that TINNELLY LAW GROUP has recently prevailed in a maintenance enforcement suit for one of our clients–a Homeowners Association (HOA) in the City of Orange, California. Our client initially sought to resolve its dispute for several years with the homeowner outside of court through Alternative Dispute Resolution (ADR). The homeowner refused to participate in ADR and insisted that the dispute proceed to litigation.

Ultimately, TINNELLY LAW GROUP’s Bruce Kermott prevailed on the merits and secured an order for injunctive relief on behalf of our client to force the homeowner to comply with the HOA’s maintenance requirements.

The court just awarded our client approximately $170,000 in attorneys’ fees and costs. Congratulations to Bruce for yet another success.

TINNELLY LAW GROUP strives to resolve its clients’ disputes through non-judicial means wherever possible. However, when issues do result in litigation, our clients take comfort in knowing that our attorneys provide the highest quality representation available.

TLG Launch Party – A BIG HIT!

Published on: January 31, 2011 | by Steven J. Tinnelly, Esq.

A sincere thank you to all of our clients and industry colleagues that attended our Official Launch Party on Friday, January 28th

At one point it was standing room only in our new Orange County offices during our Official Launch Party. We had a fantastic time and were truly humbled by the outpouring of support and excitement for the growth of our firm and for the investments we have made.

We are privileged to work in such a fantastic industry and we look forward to strengthening our working relationships with all of you.

Continue reading this post for photos and videos from the event.

TLG Secures Injunctive Relief in Maintenance Suit for HOA Client in Orange

Published on: January 19, 2011 | by Steven J. Tinnelly, Esq.

TINNELLY LAW GROUP has prevailed in a maintenance enforcement suit for one of our clients–a Homeowners Association (HOA) in the City of Orange, California.

Our client initially sought to resolve its dispute for several years with the homeowner outside of court through Alternative Dispute Resolution (ADR). The homeowner refused to participate in ADR and insisted that the dispute proceed to litigation.

The suit resulted in 16 days of trial as the homeowner called 21 witnesses. The homeowner had subpoenaed all the members of the HOA’s Board of Directors as well as the HOA’s property managers.

Ultimately, TINNELLY LAW GROUP’s Bruce Kermott prevailed on the merits and secured an order for injunctive relief on behalf of our client to force the homeowner to comply with the HOA’s maintenance requirements.

A motion to recover our client’s attorneys’ fees from the homeowner will be heard in February of this year. We will keep you posted.

TINNELLY LAW GROUP strives to resolve its clients’ disputes through non-judicial means wherever possible. However, when issues do result in litigation, our clients take comfort in knowing that our attorneys provide the highest quality representation available.

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