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'TIS THE SEASON FOR
POLITICAL EXPRESSION
QUESTION: One of our owners is displaying four (4) upside flags in front on her unit. All owners view the flags. This came about the day after Trump's conviction, so it is politically motivated. Your advice please!! –Josn H.
ANSWER: Locusts swarm every 7 years and devour everything in sight. Politicians do it every 4 years.
Owners are allowed to display upside flags as a form of political expression. You can expect to see signs, flags, and posters sprouting up like weeds as the country heads into a hotly contested presidential election.
Associations cannot prohibit signs, flags, and posters as long as they are on or in an owner's separate interest. (Civ. Code § 4710.) In planned developments, residents can display signs in their yards, in windows, on doors, and on the sides of their houses.
 In condominiums, they can display signs on the inside of their windows and on their balconies. They cannot put them on exterior walls since those are common areas.
Regulating Signs. Even though associations cannot prohibit political signs, they can regulate them. Signs can be made of paper, cardboard, cloth, plastic, or fabric, but not lights, roofing, siding, paving materials, flora, balloons, building, landscaping, or decorative components, or the painting of architectural surfaces. (Civ. Code § 4710(b).) Signs cannot exceed nine (9) square feet in size. (Civ. Code § 4710(c).)
Fighting Words. Associations can restrict signs, posters and flags that display obscenity or fighting words. I have no doubt that signs with "Vote for Trump" or "Vote for Harris" will be deemed both obscene and fighting words by rival groups. They are not. Residents are allowed to display them.
RECOMMENDATION: Everyone should stay calm and hold their noses until the election plays itself out. For more information, see "Political Activities, Signs, Posters & Flyers."
RELIGIOUS FREEDOM
AND CHRISTMAS DISPLAYS
 Some boards want to prohibit owners from decorating for Christmas, and some owners want to prohibit boards from decorating the common areas.
Associations and homeowners are both allowed to decorate for Christmas--especially since it is a national holiday. The Ninth Circuit Court of Appeals recently handed down a case involving a grinch board of directors.
Christmas Event. Morris hosted a popular Christmas event outside his home and wanted to continue the tradition when he and his wife moved into an association. The board drafted a letter to Morris expressing concern about his event because some residents were avowed atheists, and because the Christmas display would "fill our neighborhood with the riff-raff you seemed to attract over by WalMart...We don’t allow 'those kind' in our neighborhood."
Atheists & Riff-Raff Removed. Before sending the letter, the board had the good sense to tone it down. They eliminated references to atheists and riff-raff. Instead, the board expressed concern for residents who were not Christians. After sending a sanitized letter, directors held a meeting that depicted the Christmas event negatively and then put it to a vote of the members. Residents voted against the event, and some harassed and threatened Morris.
Religious Discrimination. Morris sued the association claiming religious discrimination. The board's original letter came into evidence. The lower court delivered a mixed ruling and Morris appealed. The Ninth Circuit ruled that the association's conduct interfered with Morris' rights. Moreover, the board tolerated threats and harassment motivated by religious animus that targeted Morris. (Morris v. W. Hayden Estates.)
RECOMMENDATION: Associations are allowed to impose reasonable regulations on holiday decorations and events. Boards should have legal counsel review their rules to make sure they aren't overly restrictive. As a reminder, directors should keep in mind that their emails and draft letters are discoverable. They should be careful what they write.
CORPORATE TRANSPARENCY
DEADLINE
 By the end of the year, association boards of directors are required to comply with the intrusive requirements of the Corporate Transparency Act.
Co-Managing Partner Laurie Poole and Natalie Stewart, President of CTA Review, will walk boards and managers through their legal obligations.
Laurie and Natalie will provide a valuable guide on (i) who must report (board members, managers, both?), (ii) what must be reported, (iii) how to report to the Financial Crimes Enforcement Network, and (iv) the penalties for noncompliance.
Date: Tuesday, August 27, 2024
Time: 12:00 to 1:00 p.m.
The webinar is free and will be conducted via Zoom. All boards and managers are invited to attend this valuable webinar.
Thanks for the reserve issue inclusion and the shoutout to Robert Nordland. He and the other committee members did a great job with the new reserve SOP. It will take time, but the inclusion of more infrastructure-related items will become the norm. –Scott Clements, Chief Executive Officer of Reserve Studies Inc.
You have the most impressive law firm, lawyers, newsletters. Beautiful work. -David C.
So good to have you back. We missed you. You continue to be an incredibly valuable source of information, clarification, direction, and occasionally fun humor. -Leland B.
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DISCLAIMER. Our newsletter provides commentary, not legal advice. Boards need to retain an attorney to review all the facts and give a legal opinion on the issues they face. We serve as corporate counsel to California associations only. Request a proposal to represent your association.
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