TO THE NEWSLETTER?
QUESTION: What happened to the Newsletter? I haven't received one at all in 2020 and can't find any on your website. -Sally B.
ANSWER: I'm glad you asked. In addition to the enormous amount of work generated the new election rule requirements, we've been busy hiring attorneys. Later in this newsletter is an introduction to attorney Megan Hall. Other introductions will be made in later newsletters.
Election Feedback Needed. Speaking of election rules, CAI-CLAC is reviewing how best to introduce much-needed clean-up legislation in the wake of the mess created by SB 323. To that end, they need to know if your association experienced any costs or problems due to the new election requirements. Please report your experiences to CAI's Legislative Strategy & Research Committee at [email protected]. Your feedback will help legislators understand why we need to fix this badly flawed legislation.
QUESTION: Our board properly posted a meeting notice and agenda 4 days prior to the meeting. Our manager said the meeting must be done over because she was not aware of the meeting and did not attend. Do we need to do everything over?
ANSWER: No, you don't need to repeat the meeting. The manager's presence at a board meeting is not what makes it valid. Board meetings are valid when they are properly noticed along with an agenda and a quorum of directors is present.
RECOMMENDATION: Check again with the manager, she must be concerned about a procedural issue. If it's still unclear, check with your association's legal counsel.
AND DUES INCREASE
QUESTION: Our association's fiscal year begins February 1. As of mid-January, the board has yet to deliver a pro-forma budget for the upcoming fiscal year. Our CC&Rs require budget notice no less than 30 days before the start of the fiscal year. What are the consequences for failure to deliver the budget?
ANSWER: The Davis-Stirling Act requires the annual budget be distributed to the membership not less than 30 nor more than 90 days before the end of the association's fiscal year. (Civ. Code §5300(a).) Actually, it's more than the budget. It's a budget report consisting of the following:
• a pro forma operating budget;
• a summary of the association’s reserves;
• a statement regarding any deferral of reserve item repairs;
• a statement whether special assessments are anticipated related
to reserves or reserve components;
• a statement of how reserves will be funded;
• a statement of how the reserves were calculated;
• a statement regarding any outstanding association loans; and
In addition, there are a number of policy disclosures that must be distributed to the membership.
Failure to Timely Distribute. Failure to distribute the budget report not less than 30 nor more than 90 days prior to the end of the fiscal year voids any increase in regular assessments approved by the board of directors. Any such increase in dues must then be approved by a majority of a quorum of members. (Civ. Code §5605(a).)
I am pleased to announce that attorney Megan Hall joined our firm.
Diverse Clients. Prior to joining ADAMS|STIRLING, Megan represented a diverse client base from the San Joaquin County to individuals in business. She dealt with employment issues, personal injury, CEQA, unlawful detainer and probate matters.
Litigation. Megan has extensive experience litigating matters for clients. In addition to mediations and arbitrations, she handled depositions, motions, summary judgments, trials, and settlements. Megan brings her diverse litigation background into corporate transactional matters for our clients.
Education. Megan earned a Bachelor of Arts with a major in Political Science and minors in Business and Communications from the University of Oregon. This was followed by a Juris Doctor from the Santa Clara University School of Law in Santa Clara, California where Megan was on Law review and Honors Moot Court.
We are delighted to have such an experienced attorney join our team. If your association needs legal services, contact us for a proposal.
We are looking for attorneys to join ADAMS|STIRLING.
Candidates should have at least five years' experience as an attorney.
We offer growth opportunities and excellent benefits. Contact me at 800-464-2817 or by email.
Kudos. I spoke with you many years ago while I was still president and manager (for 10 years!) of an HOA. I have since moved on and am no longer in an HOA. However, I just want you to know how much I enjoy your newsletter, how informative it is, and will continue to do so as an attorney "wannabe." I can just observe that with the way the legislature and Ms. Murray are screwing things up, I'm glad I'm out! Keep up the good work! -Bob T.
RESPONSE: I can't complain too loudly about Marjorie Murray and her Center for California Homeowner Association Law (CCHAL) making such a mess of things. Ms. Murray has been a boon for business for law firms all over the state. I may send her a fruit basket. Unfortunately, the legal work she generates comes at the expense of 9 million homeowners who live in community associations.
Newsletter. Can you guys include a PDF attachment that shares the same info as each newsletter but it’s formatted so we can print it and save them in a binder for reference? -John H.
RESPONSE: We post newsletters on our website at: www.Davis-Stirling.com/Newsletters. You can always go there to print newsletters. We only post current and prior year's newsletters. Posting anything older runs into the problem of constantly changing laws which makes some information in our newsletters out of date. For current information, go to the Index on the Home page of Davis-Stirling.com to look up topics or use our website's Google search to find what you need.
ELECTION RULES. I have a lot of feedback material to cover in my next newsletter. I could not get to it this week due to the large amount of legal work generated by Marjorie Murray's SB 323.
As previously noted, all associations must adopt new election rules. Failure to do so could subject elections to legal challenge and may result in monetary penalties and an award of attorney fees. To avoid this, contact us for new election rules.