FINED FOR E-MAILS

QUESTION: I have been told that I will be fined if I continue to email the board instead of directing my comments and questions to the management company. Is this legal?

ANSWER: Yes, you can be fined for continuing to send emails once you've been told to stop. Directors are volunteers and have private lives. They don't sign on for round-the-clock emails (or phone calls) from members. Matters affecting the association can be addressed via the management company or during open forum at board meetings. Accordingly, the board may rely on the nuisance provision of the CC&Rs for the fines or it may adopt specific rules regarding harassing emails and phone calls.

PAYING TAXES

QUESTION: We are a 6-unit unincorporated condo association. Do we have to file a tax return? We have never done so and were now wondering if we are out of compliance.

ANSWER: Being an unincorporated association does not exempt you from filing an income tax return. For federal purposes, unincorporated associations still file as if they were incorporated. For California, if taxable income is less than $100, a California corporate return is not necessary. Additionally, most associations have filed for exemption status under Revenue & Tax Code §23701t and must file an annual information return (Form 199). If the association's average revenue falls below $25,000, Form 199 is not required.

Thank you to Steven Schonwit of the Schonwit Consulting Group for his information on answering this question.

TURNING OFF WATER

QUESTION: In regards to suspending privileges, is it possible to suspend partial water privileges? For instance, can a plumber go into an owner's unit who lives below the deadbeat and install turn-off valves for the unit, so they have some water but making it difficult for them to either bathe or do their dishes?

ANSWER: No.

SOLAR PANEL LOAN

QUESTION: Our board is considering securing a 5-year loan for the purpose of installing solar panels to generate electricity and solar heating for our pools. We estimate the costs will be almost completely off-set by the savings in our gas and electric expenses. We plan to submit a ballot to all home owners to confirm approval from a majority before we proceed. Is this required? And how will this indebtedness impact individual home owners?

ANSWER: If the loan requires a special assessment of more than 5% of the budget, you need homeowner approval. The indebtedness should have no effect on owners' credit since the loan will be to the association and not to individual owners.

CHANGING POOL HOURS

QUESTION: Can the board change the hours of the pool without a vote from the homeowners?

ANSWER: As part of its management authority, the board can establish and modify pool hours without a vote of the membership. If members are unhappy with the decision, they have recourse by electing directors who are more responsive to their wishes.

ARCHITECTURAL COMMITTEE

QUESTION: Is it a requirement that HOAs have an architectural committee? Or can the board of directors make architectural decisions?

ANSWER: It depends on your governing documents. If the documents do not call for an architectural committee, then none is required and the board can review and approve architectural submittals. Most governing documents require the appointment of a committee. If so, the board must appoint members to the committee. Some documents allow the board to serve as the committee if no committee members are formally appointed. I recommend amending your CC&Rs so the board automatically becomes the architectural committee if committee members are not specifically appointed. Otherwise, you may have legal challenges to architectural decisions.