RULES POLICE

QUESTION: Is it acceptable to identify serial complainers who seem to fashion themselves as self-appointed HOA police? We have two such officious meddlers who frequently single out other homeowners for perceived rule violations. It doesn't seem fair for them to remain anonymous while stirring up the HOA.

ANSWER: I’m not aware of any law that prevents an association from reporting in its minutes or newsletter that a particular owner lodged complaints with the board. Moreover, as part of due process requirements, owners accused of rules violations have a right to know who their accusers are.

BOARD PRESIDENT'S
CONFLICT OF INTEREST

QUESTION: If the board president works for the association's management company, is this not a conflict of interest?

ANSWER: I can't think of a worse conflict of interest--the president personally benefits from both his board decisions and his management decisions. Recusing himself from votes involving the management company is not sufficient; your president should either resign from the board or end his relationship with the management company.

DISCIPLINARY HEARINGS

QUESTION: When holding a disciplinary hearing regarding tenants, one of our members has a "manager" who has a record of flouting HOA rules, disrupting board meetings, and bringing in problem tenants. The HOA member in question insists on this personal "manager" appearing for the hearing in her stead. Is the HOA required to grant this demand?

ANSWER: There is no law requiring you to allow the "manager" to appear on behalf of the owner. You could require the owner to make her own appearances. However, if you follow the small claims model for your hearings, the "manager" could present evidence as to why the owner should not be fined for the misbehavior of her tenants. Once the manager is done and has left the executive session hearing, the board can deliberate and make its decision.

The manager cannot disrupt the hearing or attack the board any more than he could disrupt proceedings or attack the judge in small claims court. If he does, you can end the hearing and dismiss him from the room. You can then make your decision based on the evidence presented and send the owner your decision. Make sure you meet all appropriate deadlines. 

DUES vs. ASSESSMENTS

With regard to the issue of "dues" vs. "assessments," one of my pet peeves is folks who like to point out that the word "dues" is incorrect. It's not. A quick visit to the Oxford English Dictionary will show that "dues" is a more general term covering any type of monies due (including assessments). Assessments is a more specific term dealing with a certain type of dues, specifically a type of tax that was assessed.

So while the word "assessments" is a better word if you wish to be more specific, all assessment are, in fact, dues by definition. So the word "dues" is never incorrect, just less specific. -Dave C.

WELLS FARGO
INSURANCE PROGRAM

Dorothy McCorkindale, Senior Vice President Wells Fargo of California Insurance Services contacted me about their CCCASA program. She reported that as of its 2/1/09 renewal, CCCASA complies with the December 2008 FNMA regulation of no blanket coverage for unaffiliated HOAs.

"We also have blanket programs for six property management companies and as each of those renews, it is being restructured to comply as well. For any condo unit loans that come up mid-year on those programs, the property insurer is separating out the complex in question, and issuing separate limits to comply as well."

Ms. McCorkindale stated that Wells Fargo is working with FNMA to have its programs accepted with blanket coverage because of the "huge benefit to the insureds as long as the selected blanket limit is adequate given the values at risk." She also provided insight into why Fannie Mae imposed a "no blanket" regulation--it heard about a $100 million limit on a $1.9 billion Florida property and freaked.

  Very truly yours,
 
   Adrian Adams, Esq.
   Adams Kessler PLC

The Case of the Tenants'
Right to Sue

An owner leased his property within an association, and executed a power of attorney/ assignment authorizing the tenants to handle all property related matters. After a dispute arose with the Association concerning the property, the tenants sued the Association for breach of the CC&Rs and violation of the Davis-Stirling Act.

Did the tenants have the right to bring this lawsuit against the Association? Find out how the Court of Appeal ruled in this new case decided last week.

 
  Gary Kessler, Esq.
  Adams Kessler PLC