|
DISCLOSING
DISCIPLINARY ACTIONS
QUESTION: When
a homeowner files a complaint against a neighbor for a violation of the
governing documents, is that homeowner allowed to know the results of any
disciplinary action?
ANSWER: Not
really.
Unlike the public court system where almost every detail of every criminal and
civil action can be published, HOA disciplinary actions are usually private.
Executive Session. Although the
Davis-Stirling Act allows disciplinary hearings to be held in an open meeting
(unless one of the parties objects, Civil Code 1363(h)),
most are held in executive session as provided for in Civil Code 1363.05(b). Doing so reduces the potential for claims of defamation, infliction of emotional distress, etc. Minutes of executive session hearings are not subject to review by the membership. Civil Code 1363.05(d). Moreover, withholding records of
disciplinary actions is specifically provided for in Civil Code 1365.2(d)(1)(E)(ii).
Reported Generally. Even so, I believe it is allowable to report in open meeting minutes and in the association's newsletter something
generic. For example, "During the month of April, disciplinary hearings were
held for the following violations: (i) dog not on a leash that resulted in a warning, (ii) nuisance noise from a late night party that resulted in a
fine of $75, and (iii) a parking
violation that resulted in a fine of $50."
This kind of reporting keeps the membership informed without identifying the
persons involved.
DEVELOPMENT
AND
REAL ESTATE EXPERTISE
I am pleased to announce that attorney Helene Fransz has joined our firm as "Of Counsel." Ms. Fransz has extensive experience in subdivision law, having spent
the last twenty years creating residential and commercial common interest
developments. Ms. Fransz is a regular presenter for the CEB (Continuing
Education of the Bar) and a contributor to the CEB treatise Forming California
Common Interest Developments (“Financing Sales of Units in Common Interest
Developments”). Ms. Fransz received her J.D. from the Georgetown University Law
Center, where she graduated cum laude. Helene's full bio is posted on our
website.
Ms. Fransz's expertise in dealing with newly
formed associations, age-restricted communities, unusual forms of ownership such
as leasehold condominiums, stock cooperatives and own-your owns, and tax-related
real estate issues will allow Adams Kessler to expand the scope of services we
provide to our clients.
Watch for Ms. Fransz's upcoming contribution to
our newsletter - "Changing an Existing Community to an Age-Restricted Community"
and contributions to the Davis-Stirling website focusing on new developments and
master planned communities.
FEEDBACK ON
JULIA BROWNLEY'S
LEGISLATION
Larry Stirling, author of the Davis-Stirling Act, penned an article about the proposed legislation. It adds to the growing opposition to AB 2502. A hearing is set for Wednesday, April 28, so
it's important that everyone fax a letter to
Assembly Housing Committee Members expressing your opposition to the bill. Below is some of the feedback
we've received.
Bangladesh! Tried to respond [to Assemblywoman Julia Brownley]. Completed
my message, but the form rejects any correspondent who is not in her district.
Just thought you'd like to know. I sent my feedback instead to my
assemblyman--all the way from here in Bangladesh! -Randy K.
RESPONSE:
Ms. Brownley authors legislation that affects 9 million HOA residents (the ones who bear the brunt of her legislation) and then
rejects input from everyone except those in her district. That seems a bit unfair.
Fax Number. Please also
send the phone and fax number for Julia Brownley. -Suzy K.
RESPONSE:
Assemblywoman Julia Brownley,
State Capitol P.O. Box 942849,
Sacramento, CA 94249-0041, Tel: (916) 319-2041,
Fax: (916) 319-2141.
Lost Over $100,000. AB
2502 will only burden the rest of the homeowners to make up for lost HOA dues.
Our complex has lost over $100,000 in dues and have had to raise dues to cover
this loss. This means that more homeowners won't be able to pay their dues. We
have not been able to collect on any of this loss and our only defense is to
start the process of non-judicial foreclosure while the amounts owed are still
reasonable for the owner to pay. It is the only way to make paying their dues a
priority for them. -Pat C.
Constituents Only. [After the
Assemblywoman
rejected my email] I faxed a letter to Ms Brownley’s Sacramento fax number and
left a telephone message for her press officer suggesting that if the
assemblywoman is going to propose legislation having state-wide effect, then she
really should be prepared to accept comment from outside of her district.
-Elisabeth D.
Collection Delays. What concerns us
about the legislation is just using the current system, some of our
collection processes have taken up to 2 years; this will just add more time
HOAs cannot afford. We took a hit last year of $132,000 in various
collections/lien issues which ended up being non-reserve transfers. -Joseph L.
Dramatic Increases. In the last 18
months we have seen a dramatic increase in delinquencies in the associations we
manage. This impacts monthly expense obligations. Our boards are faced with
either delaying projects or borrowing from reserves. For some, we have seen delinquency rates
more than double. Such
jumps have forced boards to enact emergency special assessments which
burdens those owners who do meet their obligations. Boards in many of our
communities have become frustrated with the current laws that handcuff
collection efforts. Further restraints would be disastrous for many HOA's
(especially smaller ones). -Steve M.
|
Advertise
with
 |

(888) 448-9356
|

Election
Inspectors
(888) 558-0421 x3
|

To advertise with us,
contact me.
|

Management Services
(818) 437-3331 |

Frazier
Mt. Electric
(800) 651-2757 |
 |
|
|
|
Copyright
Adams Kessler PLC
Davis-Stirling.com
is not affiliated with or sponsored by any governmental agency.
Newsletters are for
advertising & general information. Readers should not act on
articles without
consulting legal counsel.
You may reprint articles
provided there are no changes and you include:
Reprinted from
Davis-Stirling.com by Adams Kessler PLC
|
|
|
|

May 25, 2010
6:30 p.m.
Adrian Adams and Candice Gottlieb will be speaking in Pasadena, CA on
"Diffusing Conflict & Dealing with Difficult People." There is no cost to
attend. RSVP: (626) 795-3282 x886 or email
Carol Brock
|
|

ADAMS KESSLER PLC
Corporate counsel
to California associations.
Offices in San Francisco, Sacramento, Los
Angeles, Orange County, Riverside and San Diego.
800-464-2817
|
|
To
receive newsletters
subscribe here. |
|