For California's Community Associations June 6, 2010

INDEPENDENT
INSPECTOR OF ELECTIONS

QUESTION: We hired a professional Inspector of Elections to run our recent election. One of our owners was adamant that since the Inspector was "under contract" to the association she was no longer independent and this violated the Davis-Stirling Act. Is that true?

ANSWER: Your owner should switch to decaf--he's way too hyper. He misread Civil Code 1363.03(c)(2), which provides that "An independent third party may not be a person, business entity, or subdivision of a business entity who is currently employed or under contract to the association for any compensable services unless expressly authorized by rules of the association . . ."

Missed Words. Your caffeinated critic missed the words "currently employed." The board cannot hire someone who is currently employed by the association. Since the Inspector you hired was not currently employed by the association, the board can legally hire her to run the election.

Exception to Prohibition. It should be noted that the prohibition against hiring someone "currently employed" by the association has an exception. The statute expressly waives the restriction if the hiring is "expressly authorized by rules of the association." In other words, if your Election Rules authorize the hiring of the association's management company or CPA to serve as an Inspector of Elections, then doing so does not violate the statute.

ILLEGIBLE BALLOT ENVELOPE

QUESTION: Does an HOA or management company have the right to discard and not count ballots if the return signature and address on the return envelope is illegible?

ANSWER: Yes, Inspectors of Election can (and should) set aside and not count envelopes where they cannot identify the voter. To prevent voter fraud, the Davis-Stirling Act requires that owners identify themselves by name, address and signature.

In the upper left hand corner of the second envelope, the voter shall sign his or her name, indicate his or her name, and indicate the address or separate interest identifier that entitles him or her to vote. Civil Code 1363.03(e)(1).

No Discards. Inspectors should not discard any ballots or outer envelopes. All voided materials should be marked "Void" and kept for at least one year with the rest of the election materials.

GARY KESSLER APPOINTED
TO AMICUS COMMITTEE

I am pleased to announce that Gary Kessler has been appointed to serve a two-year term as a member of the Community Associations Institute’s National Amicus Curiae Committee.

Amicus curiae (friend of the court) briefs allow organizations with an expertise in a certain area of the law to educate a court about the legal issues in a particular case. CAI's amicus curiae efforts enable the organization to help shape the outcome of matters of importance to community association law. As a member of the Committee, Gary will be reviewing applications for amicus curiae appellate briefs made to CAI.

FEEDBACK ON
BALCONY SMOKERS

Quaint. Do people still smoke? How quaint. -C.S.

Libertarian Approach. You may want to look at our libertarian approach to the smoking issue, as well as other personal nuisance issues: residents can do whatever they want, so long as no one else smells/hears/whatever it. -Stu S.

Fight to the End. I would fight to the end against a ban on smoking outside!!! -Steve N.

Persecuted Underclass. I am a non-smoker and I really do not particularly like being around cigarette smoke BUT I am beginning to see smokers as a persecuted underclass. Perhaps it is not a violation of an individual's civil rights to ban it but what happened to tolerance and learning to get along with your neighbor? Perhaps we need to go back to understanding that if you choose to live in a communal living situation you are going to be confronted with a variety of different choices people make on how they want to live. If you cannot tolerate the great variety of life and its risks, why in god's name are you living in a condo? -Jeffrey S.

Smoker Rights. I completely disagree with your smoking advice. While I am not a smoker or a lawyer, I find it very hard to believe that a legal challenge will lose, and I’m not sure I would want to spend HOA funds defending against such a suit. A smoker has as much right as a non-smoker. To deny them the right in their own home is ludicrous. -Mark M.

RESPONSE:If smoking were harmless and unobtrusive, your arguments might have merit. A court in Colorado has already upheld a complete ban on smoking, including inside units. The judge noted that second-hand smoke is a nuisance and upheld the association's CC&R amendment as proper and reasonable. Christiansen v. Heritage Hills. In addition, the California Court of Appeal upheld a cause of action for nuisance related to second-hand smoke in outdoor common areas. Birke v. Oakwood. Associations clearly have the authority to regulate nuisance complaints that occur inside units and on balconies. "Nuisance" includes both noise and second-hand smoke.

CENSUS FEEDBACK

Enumerators.The Census Bureau operates year-round taking many types of surveys. Census takers are officially employed as "Enumerators." Enumerators are not allowed to have their I.D. badges photocopied. To verify a person's legitimacy (besides looking at their badge) people can call the local Census office and speak to a manager. -Kristine D., Field Operations Supervisor, Census Bureau

Blitzed with Calls. We are getting blitzed by phone calls from people claiming to be census takers. They ask for the names of residents and for their contact information. To date, the callers have not requested physical access to buildings. Because we cannot confirm the identification of the caller and verify that they are, in fact, a census employee, we have declined to provide this information. -Marcia N.

RESPONSE: Anyone can call and claim to be a census taker. For security reasons, I agree with your approach. you should decline to provide information over the phone. If they come to your office and provide proper I.D., you should cooperate.

MISC. FEEDBACK

Lawyer Ethics. I thought attorneys took an oath to uphold and comply with laws - an attorney advising something contrary to the Davis-Stirling statutes appears to me to be advocating non-compliance. Ethical issue? -Board Member, Palm Springs

If It Ain't Broke. If there was ever an example of people ruling themselves effectively, it is highly visible in the mini-governments of community associations. The elected leaders are unpaid, and there is the attitude “that if it ain’t broken, don’t fix it!” City, states and our national government could do well to study this form and the results. Yes, there is some abuse and we hear about it. Yes, improvements are needed (reserve management and use is one) but all in all, the state of community associations is in good shape when you consider the alternative. -Jim M.

RESPONSE: Self-rule is messy but infinitely better than state control.

FHA Loans. As a real estate broker, it's one of my pet peeves that condominium buyers cannot get an FHA loan for properties in HOA's with less than 60% owner-occupants. Wouldn't it make sense to sell to first-timers who will become residents, thereby increasing the owner-occupant ratio? Cash buyers are likely to be investors, increasing the rental units in the complex. Changing the lender rules would quickly make those units more marketable. I've brought that issue up to Congressman John Garamendi, who promised to look into it. -Maxine

RESPONSE: See latest release from HUD regarding association insurance requirements and FHA loans.

   Sincerely yours,
 

   Adrian Adams, Esq.
   Adams Kessler PLC


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