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TRACKING WHO VOTED
 QUESTION: Is it legal for an HOA to keep track of whether a homeowner voted in the election of board members?
ANSWER: The Davis-Stirling Act prohibits knowing how members voted but nothing forbids tracking whether they voted. Whenever I find an election issue that is unclear, I look to see what California does.
California Voters.
When it comes to elections, the State discloses the voting history of
registered voters. Candidate Meg Whitman's voting record became
an issue in the 2010 governor's race after public records showed that
she had not voted in a number of years. If California makes voting
records public then it is reasonable that HOAs could do the same. The
voting list could be made available during the election at the Inspector's option or posted after the election by the association.
RECOMMENDATION:
Associations should consider posting voting histories on their websites
in a password protected portion of the website accessible only by
owners. Who knows, doing so could prod owners into participating in HOA
elections.
RENT RESTRICTIONS
QUESTION: We are a 200-unit condo association with a 10% rental cap in our CC&Rs. An investor-owner just purchased a unit and is
walking the property with a petition to change our rental cap to 25%. We have a very
nice HOA of mostly all homeowners; can this investor force a change in the rental restriction?
ANSWER:
Your investor-owner can force the issue onto a ballot (assuming he can
get enough people to sign the petition) but only the membership can
approve the change.
Petition. Anyone can circulate a
petition for any lawful matter--requesting a meeting for the purpose of
amending the CC&Rs is lawful. Unfortunately, it takes only 5% of the
membership to set into motion
the expense of a special meeting, which includes the hiring of an
Inspector of Elections and the mailing of ballots. I think 5% (just ten
members in your 200-unit association) is far too few to force a meeting
but the percentage is set by statute. Corp. Code §7510(e).
The purpose of the meeting must be set forth in the petition so members know what they are signing. The board is allowed to verify signatures before setting a meeting date and giving notice. The board is also allowed to publish who signed the petition.
 Giving Notice. The board must give notice of the meeting within 20 days from receipt of the petition; otherwise, the
persons calling the meeting may set the date and give notice. Corp. Code §7511(c). As noted in last week's newsletter,
the board can tell the membership that it is opposed to the amendment.
In addition, board members (and other owners) at their own expense may
campaign for or against the proposed amendment.
Rental Restrictions.
Somebody should let the membership know that loosening rental
restrictions is probably a bad idea. It is widely recognized by lenders,
insurance carriers, real estate professionals and the courts that too many renters in a development drives down property values.
Azy Saghian, Esq.
FEEDBACK
Speed Bumps.
In our county (Orange), the approval authority for speed bump
installation on any street, city/county owned or private is the Fire
Authority because of response time considerations. -Frank B.
Greenhouse Gases. We
installed speed bumps many years ago. When you clock vehicles going 50+
mph on a radar gun in a residential zone, the board knows they must
take action. We could have bankrupted our HOA by having 24/7 enforcement
but decided speed bumps were far more economical and effective. As far
as speed bumps increasing greenhouse gasses, prove it, pal. -Bill C.
Posting Letters.
In our association here in Utah, we've been adding all board
correspondence to our minutes when they are posted on our website. All
names and other identifying information are redacted. The result seems
to be added awareness of the challenges faced by board members. Judging
from comments by owners, they are impressed not only by our openness but
also see the shenanigans of others. I think this practice will result
in some very positive support for future board actions and decisions.
-L. Dalton
RESPONSE: Good idea. Maybe HOAs in California are doing the same and can report their experience with it. -Adrian
Filing 1099s.
As to the reporting of the $600.00 on 1099, I was under the impression
that this requirement will be null and void next year. I heard that the
legislature rescinded this requirement. Is this correct?
RESPONSE: The Health Care Act extended the 1099 reporting requirement to
include all vendor types (individuals, corporations, partnerships, etc.). All
that is being considered right now is to roll it back to the current
requirements. Because this issue is a moving target, you should keep good records and consult a qualified tax professional. -Donald W. Haney, CPA, MBA, MS(Tax)
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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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