Insuring HOA Finances - AB 1101
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  California's Leader in Community Association Law May 9, 2021
AB 1101 PROTECTS
ASSOCIATION FINANCES

An important bill was put forward by Assembly Member Jacqui Irwin, a Democrat representing the 44th Assembly District (Ventura County and Westlake Village).

Assembly Bill 1101 establishes much-needed protections for association funds. It prohibits investing HOA monies in stocks or high-risk investment options and requires funds be deposited into accounts that protect the principal, such as  those insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration Insurance Fund.
 
Her bill expands insurance requirements to cover not only dishonest acts by HOA directors, officers, and employees, but also dishonest acts by a managing agent or a managing agent’s employees. In addition, it increases protections against computer fraud and funds transfer, and requires insurance in an amount equal to or greater than the combined amount of an association's reserves and three months of assessments.

CCHAL Opposition. I can't imagine opposition to protecting association funds. Nevertheless, Marjorie Murray's Center for California Homeowner Association Law (CCHAL) is on record opposing the bill. Ms. Murray is again on the wrong side of an issue. Even members of the Judiciary Committee who heard the bill had trouble understanding her opposition. Ms. Murray's hostility to consumer protection is baffling. I encourage readers to ask Ms. Murray to drop her opposition to AB 1101. You can email her at [email protected] or call her at (510) 435-6642.
 
FEEDBACK ON MARJORIE MURRAY'S
OPPOSITION TO SB 391

Last week, we discussed Senate Bill 391, a bill authored by Senator Dave Min, a Democrat from Orange County. Senator Min offers a common-sense solution to assist homeowners communication with their boards and vice versa during declared emergencies when meeting in a physical location is not possible.

Inexplicably, Marjorie Murray's Center for California Homeowner Association Law (CCHAL) opposes the bill. Readers emailed Ms.  Murray to find out why. Following is one of the exchanges:
[Dear Ms. Murray] We are exactly the vulnerable demographics you have claimed to protect — -non-affluent, elderly, minority, disabled — and yet it appears we are bearing the burden of most every legal change YOU SUPPORT and receiving no benefit as you are solving problems we don’t have or fighting legislation that will help us!

So please explain how the bills you support, or in this case you fight ... are helping me and my neighbors. We only see our association wasting money and exhausting the very few owners who are trying to serve our even more vulnerable owners. Our job has become more difficult due to your “service” to the vulnerable ... us. We are 98% owner-occupied so it appears to me you are jeopardizing OUR HOMES to protect SOME DONORS’ financial interest. If I’m wrong, please explain.

Sincerely,
Ms. S. Vincent

FOR TEN YEARS NOW HOMEOWNER ASSOCIATIONS HAVE HAD THE RIGHT TO HOLD ELECTRONIC MEETINGS BY VIDEO OR BY PHONE, SO WHY IS THIS BILL NECESSARY?

Marjorie Murray, President
Center for California Homeowner Association Law
www.calhomelaw.org
3758 Grand Ave, Suite 56
Oakland, CA 94610
Ph: 510.435.6642
[email protected]
[Dear Adrian] Sorry, but I don't think Marjorie Murray even read the Bill. -D. Cook-Whitlatch

RESPONSE: I don't think she did either. In her emails, Ms. Murray shouted at consumers with responses in all caps like the one above. Also, I'm having trouble following her logic. In another email exchange with a reader, Marjorie said the bill should be opposed because some people don't have access to the internet. People who are scattered by a disaster can always get access to the internet — it's gathering in a physical location that's the problem.

No Physical Location. Marjorie missed the whole point of Senator Min's bill — he lifts the requirement of meeting at a physical location during emergencies. Senator Min makes it easier for HOA boards and homeowners to conduct urgent business during emergencies.

Counting Ballots. Senator Min also builds in protections so members can witness ballot counting when elections are held remotely. The bill specifically requires that meetings at which ballots are counted have a camera placed "such that members can witness the inspector of elections counting and tabulating the votes."

CCHAL Harms Consumers. As Ms. Vincent put it so well, Ms. Murray is hurting the very consumers she claims to represent. We urge Ms. Murray to read Senator Min's bill and support rather than oppose it. Please email Ms. Murray at [email protected] or call her at (510) 435-6642 and urge her to support Senate Bill 391.

 
HOW TO SAFELY REOPEN
FACILITIES

Our Firm has been conducting training sessions with management companies on how to safely reopen association amenities.

Chart of Counties. As readers know, our attorneys have been charting the ever-changing COVID guidelines throughout California, which we then publish weekly.

Less Restrictive. The State is loosening its restrictions and boards are asking what they need to do to reopen their facilities. Because the pandemic is not over and COVID-19 is still a threat, our training sessions cover CDC guidelines, insurance issues, waivers, signage, vaccine/testing requirements, and adopting rules for using amenities, followed by a question-and-answer period for managers.

Scheduling. If management companies would like us to conduct a training session with their managers, contact Miranda Ward to schedule NorCal presentations and Candace Schwartz for SoCal presentations.

Rule Updates. Associations that don't have COVID rules and need them to reopen their facilities, or already have rules but need to update them to meet changing guidelines, can contact us.

 

SB 9 & 10. Thanks for the alert on the legislation to allow more dwellings on existing lots. This is unfortunately the potential of government playing checkers instead of chess, reaching for short-term Band-Aids, resulting in more severe problems in the future. -Leland B.

Our sincere thanks to your newsletter for keeping us informed. -Elaine J.

Thank you for this informative treatise. -Bruce C.

Always interesting to read, very informative. -Dee O.

BBQs. Hello I am the president of the Kjergaard condominiums in Solvang, California. It is my understanding that California fire code prohibits any kind of open-flame BBQ within 10 feet of a wood frame structure in a complex of more than two units. Electric barbecues are allowed. Wanted to share –Karen G.

 
 
Federal Update. The CDC Updated the following: Consideration for Multi-Family Housing Including Apartments, Condominiums, and Townhouses; FAQ about COVID-19 Vaccination; COVID-19 Travel Recommendations by County; Managing COVID-19 Stress for Teens and Young Adults; Returning to Work 

Statewide Update
. The State issued a 5/4/21 Press Release re: Vaccines promoting efforts toward hard-to-reach communities.

The CDPH issued 5/3/21 Recommendations for Fully Vaccinated People. The CDPH issued updated facial covering guidance.

The following Counties changed Tiers: Inyo (Red Tier to Orange); Los Angeles (Orange to Yellow); San Francisco (Orange Tier to Yellow); Trinity (Orange Tier to Yellow).

Northern California. Alameda County issued a 5/5/21 Press Release re: Coliseum Vaccination Site Closing and community-based sites being used.

Contra Costa County issued a 5/3/21 Press Release re: Availability of Vaccine to Everyone.

Marin County issued an updated Health Order to reflect where the County is in the Tier categories. The County is also following the CDPH guidance for facial coverings.

San Francisco County moved to the Yellow Tier and issued a 5/4/21 Press Release re: Yellow Tier. The County issued a new Health Order related to this change. Their pool and gym guidance has been updated along with their gathering guidance and other areas. The County issued a 5/6/21 Flowchart re: Applicable Gathering Guidance.

Santa Cruz County issued a 5/3/21 Order Rescinding Facial Covering and Gathering Guidance Orders and deferring to the CDPH guidance.

Sonoma County issued a 5/6/21 Press Release Indicating Half of the County's Population is Vaccinated.

Yolo County has updated their pool guidance and pool protocol.


Southern California. Los Angeles County Press Release regarding updated Health Order to align with moving to yellow tier, which includes gyms can operate indoors at 50% capacity. Similarly, indoor dining for restaurants can operate at 50% capacity. Bars can operate indoors at 25% capacity or 100 people, whichever is fewer.

Revised reopening protocols:

Gyms and Fitness Establishments: indoor hot tubs, saunas and steam rooms may reopen for use.

Short-Term Rentals

Live Events (Outdoor Seated): increased to 67% capacity. Fully-vaccinated seating sections reduced to 3 feet of distancing and can be at 100% capacity for that seating section, as long as the venue capacity of 67% is not exceeded.

Live Events (Indoor Seated): Venues of up 1500 people, maximum occupancy is 25% or 300 people, whichever is fewer. Can be up to 50% occupancy if all guests show a recent negative test result or show proof of full vaccination.

Office Worksites: Up to 75% of maximum occupancy. Office workplaces that only permit fully vaccinated employees may seat employees closer than 6 feet apart.

Private Events (Meetings, Receptions, and Conferences): outdoor events with 100 or fewer people, fully vaccinated attendees do not need to wear face masks. Indoor events with 50 or fewer people, fully vaccinated attendees do not need to wear face masks.Restaurants: televisions can be turned on in both indoor and outdoor dining areas. Can seat up to six (6) households at a table for six (6) indoors and up to eight (8) households for a table for eight (8) outdoors.

Orange County Press Release: County resumes administration of Johnson & Johnson vaccine. Press Release County to close all Super Point of Dispensing (POD) vaccine sites and shift to mobile POD system starting June 6, 2021.

Riverside County Press Release: Hemet Valley Mall opens vaccine clinic.

City of Palm Springs Press Release: the City rescinds face covering Order to align with CDC guidance regarding face coverings not required for fully vaccinated people outdoors with various exceptions. Those who are not fully vaccinated, still required to wear face covering outdoors when physical distancing cannot be maintained.

San Bernardino County issued a Press Release regarding Fire & Ice Cream vaccine events to start this week by hosting pop-up vaccination events in neighborhood parks, with a street parade of County fire trucks, County mobile vaccine van, ice cream trucks and churro wagons. Also, four testing sites have been converted to vaccination sites that makes appointments and also accepts walk-ups (Montclair Place,  National Orange Show Event Center, Rancho Cucamonga Sports Complex, Columbia Middle School).

San Diego County issued a revised Health Order to align with the state’s updated guidance for facial coverings. Further, indoor and outdoor recreation is following applicable state guidance.

Santa Barbara issued a Press Release from County Health Officer entitled, “The Good Outweighs Concerns for COVID-19 Vaccination.”


 
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 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. Keep in mind we are corporate counsel to California associations only. Request a proposal to represent your association. It's okay, we're friendly.

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I join Adrian in inviting you to contact us for your association's legal needs.

Hon. Lawrence W. Stirling, Senior Partner and author of the Davis-Stirling Act

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