March 21, 2010

RUNNING FOR PRESIDENT

QUESTION: During the nomination phase of an election should a nominee indicate the role they wish to serve, such as president, treasurer or secretary? Is the officer designation decided by the number of votes highest to lowest or by agreement?

ANSWER: Unless your governing documents state otherwise, candidates cannot run for a particular office. Typically, the membership elects directors, not officers. Once elected to the board, directors decide among themselves which office each person will hold. Therefore, it does not matter that a person campaigns for President and gets the highest number of membership votes. He/she does not have a "right" to be President. The other directors might make the person a "director at large."

HOW MANY NOMINATIONS?

QUESTION: Is the nominee process limited to just one submission per owner?

ANSWER: No, but there is a limit on the number of nominations an owner can make. "When more than one person is to be elected to . . . a board of directors . . . no one may nominate more than one person for the office, if an objection is made, until every member wishing to nominate has had an opportunity to do so. In no event may a member nominate more persons than there are places to fill." (Robert's Rules of Order, 10th Edition, '46, p. 418.) In addition, the nominees should accept their nomination before being listed as a candidate on the ballot. It should be noted that candidates can nominate themselves to run for the board.

BROWN ACT

QUESTION. A non-lawyer advised our board that the Brown Act supersedes the Davis-Stirling Act. Is that true?

ANSWER: No, it's not true. The Brown Act regulates the meetings of public legislative bodies and local public agencies. It does not apply to private community associations. The legislature could have included homeowners associations in the Brown Act but it didn't. Instead, it created a less complicated "Open Meetings Act" that applies specifically to homeowners associations. Civil Code 1363.05.

AMENDMENT TO RESTRICT
DUES INCREASES

QUESTION: We have a new neighbor who is causing huge problems. His newest campaign is to modify the CC&Rs to include the following: "Any assessment and any increase in the dues in excess of the Consumer Price Index (CPI) must be approved by 51% of the homeowners."

ANSWER: His efforts are understandable but misguided. Even if he is successful, the amendment will be void. Assessment increases and voting requirements are set by statute. Regardless of anything to the contrary in the governing documents, boards may increase regular assessments up to 20% and levy special assessments up to 5% without membership approval. Anything more requires owner approval, which is defined as approval by a majority of votes at a meeting with more than 50% of the owners in attendance.Civil Code 1366(b).

LAW STUDENT PRESIDENT

QUESTION: Our board president is a law student who thinks he knows everything about everything. We want legal advice about our CC&Rs but he opposes it since he thinks his advice is sterling. What do we do in a case like this?

ANSWER: There is an old adage that you get what you pay for. Relying on a lawyer-to-be for legal work certainly saves money. However, if problems arise because the board relied on his unauthorized practice of law, the costs could easily exceed the monies saved. If you're really tight on money, let your law student do all the legal research and put his opinions in writing for review by your association's legal counsel. If counsel signs off on his opinions, you save money. If he doesn't . . .

AMENDING CC&Rs VIA
THE COURTS

QUESTION: Our CC&Rs require 2/3 approval to make any changes. The Davis-Stirling Act requires 50% + 1. Does that override the CC&Rs? If so, what are the procedures for changes based on the Act?

ANSWER: The provision in the Davis-Stirling Act you refer to may be used if you amend/restate your CC&Rs and cannot reach the 2/3 approval required by your CC&Rs. If more than 50% of the membership  approve the changes and you meet other conditions required by the statute, your association's attorney can file a petition with the court for judicial approval. Although no attorney can guarantee an outcome, it has been our experience that most petitions are granted.

NEW FEDERAL
LEAD PAINT LAW

On April 22, 2010, a new federal law takes effect which directly affects residences and common areas in homeowners associations built before 1978. It is the EPA Lead Based Paint Renovation, Repair and Painting Program Rule. To find out more about it (and the large potential fines for violators), read the latest article in Kessler’s Condo Court.

   Sincerely yours,
 
   Adrian Adams, Esq.
   Adams Kessler PLC

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