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NEW LAW ON
RENT RESTRICTIONS
 Impact of Renters. Historically,
homeowner associations have experienced problems with renters who tend
to be transient, have little or no stake in their communities and
violate rules in greater numbers than owners. By no means are all
renters bad but high rental populations often drive up HOA expenses and
depress property values--a phenomenon recognized by banks, insurance
companies, Fannie Mae, FHA and the courts. In an effort to keep rentals
at reasonable levels, associations throughout California have enacted
various forms of rental limitations.
Realtors. The
California Association of Realtors ("CAR") was unhappy with this trend
since it impeded their ability to sell property to investors, which
includes many of their own Realtor members. As a result, CAR sponsored SB 150 which exempts owners in a common interest development from rent
restrictions unless the restriction was in effect prior to the date the
owner bought into the development.
 In addition, the bill requires owners to provide buyers with a statement describing any provision in the governing documents that prohibits the rental or leasing of units in the development.
On July 7, Governor Brown signed the bill into law to take effect January 1, 2012.
Tina Chu, Esq.
POOL DRAIN RECALL
Eight
manufacturers have recalled pool and spa drain covers that are a
possible entrapment hazard to swimmers. For a list of the manufacturers,
see the Consumer Product Safety Committee's press release.
If you have any of the recalled pool drain covers, the CPSC recommends
closing your pool until the drain covers are replaced. (Thank you to manager Lorna Leviste for this update.)
BANK'S RIGHT
TO VOTE IN RECALL
QUESTION:
For purposes of a recall election, how does the fact that 30% of the
properties in our development were foreclosed and are now owned by banks
affect the vote?
ANSWER: Bank-owned units count toward the total voting power of the association. Banks, provided they are in good standing,
have the right to vote in a recall. Unfortunately, banks rarely
participate in any votes unless the issue directly affects the bank, at
which point they vote "no" and preserve the status quo.
FEEDBACK
I'm sorry I could not print everyone's feedback this week--there were too many. Following is a sampling:
 Bible Study #1.
The religion response was hysterical. Just thought you should know your
newsletters are both informational and entertaining. -J.C.
Bible Study #2.
I thoroughly enjoy your Davis-Stirling articles, especially with their
humorous twists. In a recent response to a question about a Bible study
group putting fliers in mailboxes, for example, you closed with "The
group should spend some time meditating on Romans 13:1-5." When I went
and looked Romans 13:1-5, I almost spit my coffee out laughing. Thanks
for making HOA work interesting, and at times even entertaining!
-William P.
Bible Study #3. Praise God on this one, Bible study anyone? -S.K.
Bible Study #4.
I was on board and enjoying your response regarding Clubhouse Bible
Study until you made the leap to "advocating violent jihad" and "a quick
call to the FBI." Such comments continue to feed Islamic fear mongering
and are really out of line in a newsletter as classy as yours. Change
the sentence to "advocating violent overthrow of the United States
Government" by any group, and I am a happy camper. There are plenty of
threats to our country from both edges of the bell shaped curve of
religious and secular organizations to go around. Sign me, fourth
generation American daughter of three generations of military service
and a middle-of-the-road Protestant. -Nancy K.
Bible Study #5. I love your response! Creative research! -Patty F.
Bible Study #6.
Our association considered prohibiting fliers a few years ago but the
argument that won out was this would be an infringement of freedom of
speech. Your thoughts? -Bill C.
RESPONSE:
Some associations prohibit fliers altogether while others restrict them
to bulletin boards setup for that purpose. HOAs can legally prohibit
door-to-door solicitors and the distribution of fliers, provided the
development has restricted access. Developments that are freely and
openly accessible to the public cannot prohibit leafleting,
solicitations, and fliers. For more information, see free speech.
Bible Study #7.
Regarding religious meeting notices in the mailbox, in some cases,
depending on the design of the mailboxes, it is a federal offense for
anyone other than a postal employee to put something in a mailbox. The
publisher of our community newsletter was threatened with a $10,000 fine
by the local postmaster if they he didn't stop putting the newsletter
through the mail slots in our front doors. This applies to cluster
boxes as well and could be used by HOAs to prevent distribution of
flyers. -Andy P.
Bible Study #8.
For cat’s sake let them have their Bible meetings!!! We need all the
religion people we can get to neutralize the selfishness going on in the
world. Forget about rationalizations like the dogmatic differences of
what Islam believes and the Buddhists believe, etc., all religions
preach doing good and helping one’s neighbor. Any little amount of
religion helps to counteract the porno, greed, corruption and
malfeasance going on in both high and low places. -Henry Z.
Bible Study #9. The Bhagavad Gita is a Hindu holy book not Buddhist! -Lance M.
RESPONSE: Oops. You’re right, it’s Hindu (and interesting reading).
Small Claims #1. I agree with Frank (July 17 Newsletter). Small claims courts usually use pro tem judges
and rule against not only the prevailing law but against any larger
institution. I have found that pro tems bring their own prejudices and
biases to their rulings completely disregarding the published law. Their
arrogance is incredible. We simply use our attorneys and file in
superior court where we have a chance of the law being upheld. Small
claims courts are a waste and a fraud. -Gary V.
Small Claims #2.
We are having solid success with small claims actions. There is a
provision in the SCA for plaintiffs to challenge decisions if they do
not follow the law (CCP §116.725). -Don H.
Small Claims #3.
My associations have been very successful in collecting assessments
using small claim filings. The trick is doing your research before
moving forward with a particular method. Payment plans, small claims
actions and foreclosures all have a place in the collection process.
From my experience, the reason a lot of boards find themselves with
such high delinquent accounts, is that they fail to follow their own
procedures early on. -Donna B.
Apathy. The comments of
Stephen P. (July 17) regarding attendance at board meetings are very
true. Our HOA has over 1,900 homes, and a resident population in
excess of 3,000, yet it is the same 25 to 30 people who attend board
meetings. We have an excellent BOD assisted by very devoted
committees, but the level of apathy in the balance of the community is
disgusting. -John R.
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Adams Kessler PLC. Readers should not act on issues raised in our newsletters or website without consulting legal counsel. |
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