A Box of Cigars
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  California's Leader in Community Association LawAugust 1, 2020
A BOX OF
CIGARS & A LETTER

QUESTION: I live in a no smoking complex. It is also against a city ordinance for people to smoke in condo complexes. My next door neighbor, a renter, smokes cigarettes, marijuana and vapes. I reported her as did her upstairs neighbor. The owner came out and claimed he couldn't smell anything. This is the 3rd smoker he has had in this unit. What can I do? -Alyson R.

RESPONSE: If your neighbor smokes cigarettes, marijuana and vapes, she is not long for this world. You might send her a box of cigars to help things along. In addition, have a lawyer send a demand letter to the city, your board of directors and the landlord. That should start the wheels turning.

AB 3182
RENT RESTRICTIONS

A number of readers had questions about a bill I discussed in our last newsletter. I raised the alarm about Assembly Bill 3182 because it voids provisions in CC&Rs and Rules that prohibit or unreasonably restrict rentals.

Rent Restrictions Voided. The bill defines what it deems reasonable. Common interest developments cannot have a rental cap lower than 25%. That means associations with smaller caps, such as 10%, 15% and 20% (which are common), will be voided. When it comes to leases, the bill will allow associations to adopt minimum leases of 30 days. It makes no allowance for associations that require leases of at least six months or one year (which are common) or requirements that a buyer live in their unit for a year (some require two years) before renting their unit.

Gov Docs Must be Amended
.
Since existing provisions that do not comply with the bill will be voided, associations will be left with no rental restrictions if they don't amend their documents to adopt compliant language. Especially vulnerable will be those associations with lease requirements greater than 30 days. Once the restriction is voided, they will be open to short-term vacation rentals. With a constant flow of weekend rentals, communities will suffer all the problems associated with transient hotel-like operations.

Expensive Amendments. Losing existing restrictions creates a significant burden on associations. It is extremely difficult to amend CC&Rs. Moreover, many associations cannot afford the expense right now. They have already incurred unbudgeted expenses amending their election rules to comply with SB 323, followed by legal expenses adopting emergency rules related to the coronavirus, followed by climbing delinquencies due to members being out of work due to lockdown orders.

Flawed Premise
. The premise of the bill is flawed. Turning someone’s home into a rental doesn’t increase the housing supply or make housing more affordable or cure the homeless problem.

Instead, it destabilizes community associations as the percentage of rentals steadily increases. California already has the second-lowest home ownership rate in the country at 54.8% (US Census 2010). The bill doesn’t increase the amount of housing; it only depletes existing housing stock available for purchase by encouraging large-scale investors to buy up homes and turn them into rentals. The end result will be lower property values. 

Home Buyers Impacted. Finally, the author of the bill seems to recognize that higher rentals negatively impact home buyers' ability to get FHA and VA loans. He added language stating that associations can facilitate buyers to qualify for loans insurance. That is a fairly meaningless provision. If they can't qualify because of high rentals, nothing the association does will facilitate qualifying for the loan. As a result, AB 3182 will make it more difficult for first-time home buyers, seniors and veterans to purchase condominiums.

RECOMMENDATION: CONTACT THE SENATE HOUSING COMMITTEE BEFORE AUGUST 6! Send an email to each of the listed legislators. All you need is a simple one line "Vote NO on AB 3182" in your email to each of the following Senators:

[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]


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NorCal Counties. There are 35 Counties on the monitoring list as of July 27, Butte, Kern, Mendocino and Santa Cruz were added.

The state issued an Employer Playbook for a Safe Reopening.

Mendocino County has a press release from 7/25 stating they are on the monitoring list, although the State has not yet posted that.

Santa Cruz has a press release from 7/27 stating that they are on the monitoring list, although the State has not yet posted that.

Shasta County is urging the public to avoid Waterworks Park, which has refused to shut down, until August 3.

SoCal Counties. Imperial County has two new orders regarding isolation of those individuals who test positive for Covid-19. One is order is for non-immunocompromised which follows CDC guidelines that, after 10 days from first symptoms, can return out of isolation within 24 hours of a fever. The second order is for immunocompromised, who need to wait 20 days from first symptoms, and can return out of isolation within 24 hours of a fever.

Los Angeles County has a new multi-family residence guidance, which reduce home isolation from 72 hours to 24 hours without a fever. Also, Los Angeles updated its face coverings to not include masks with one-way valves.

The City of Palm Springs enacted a supplementary order beginning July 31, 2020 that has restaurants, bars, wineries, distilleries, and breweries closing by 11 p.m., with last seating by 10 p.m.

San Luis Obispo County is asking residents to avoid social gatherings.


Updated Chart. For a list of County restrictions and links to Health Department Orders, see County Chart 7-28-20. The chart is also posted on our website. Thank you to readers for sending us information about their counties. If we missed anything, please contact us.


Boards can contact us for friendly,
professional advice.


Adrian J. Adams, Esq.
Founder & Managing Partner
ADAMS|STIRLING PLC

DISCLAIMER. Our newsletter provides commentary based on sketchy information we receive from readers. From time to time, we add a little humor. Some find it amusing. Others are appalled. Some readers are excited when they score free legal advice. Not so. Our newsletter provides commentary only, not legal advice. You need to pay real money for an attorney to review all the facts and give you a legal opinion. We do that too, but you have to actually hire us. It's okay, we're friendly. You can call us. Keep in mind we are corporate counsel to associations only.

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