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PAYING PROPERTY TAXES
ON COMMON AREAS
 From time-to-time, I run into a planned development paying property taxes on its common area property. They should not be doing so. The tax code specifically allows planned developments to avoid double taxation on its common areas. (Rev. & Tax Code § 2188.5)
Taxes on common property are already paid indirectly by the membership through their own property taxes. (Lake Forest CA v. County of Orange; Nellie Gail Ranch OA v. McMullin.) The taxable value of common areas is reflected in the increased market value of their properties created by common area lots, whether they be used for clubhouses, parks, or some other function.
If an association is paying property taxes, it is likely the developer failed to designate the subject parcels as common areas when submitting the original development plan, causing the assessor to treat them as taxable parcels.
To fix the oversight, the parcels need to be remapped as common area parcels. It allows county assessors to keep them on the tax rolls, but reduce the assessed valuation to $1 so that no tax bills are generated in the future. For more information, see "HOA Tax Returns, Deadlines & Property Taxes."
Drunken, Abusive
Board Member
QUESTION:  I obtained a restraining order against a board member who left drunken, angry, obscene, and threatening messages on my answering machine. I asked the board to remove him based on our bylaws, which state that "Any officer may be removed, with or without cause, by a majority of directors." Can the director be removed from the board? -Tom H.
ANSWER: No, not based on your bylaw provision. Officers are the president, secretary, and treasurer. Your abusive director can be censured for his behavior and removed as an officer but not as a director. For more information, see "Differences Between Directors and Officers," and "Removing Directors."
ROGUE DIRECTORS
 QUESTION: Can a board member share HOA bank balances with a prospective management company and request a management proposal without the board's approval? -Donald T.
ANSWER: It is inappropriate for a director to act without the consent of the board. If there is an issue with the association's management company, the board as a whole must discuss the problem and how best to address it. Legal counsel may need to get involved to review the management contract and make recommendations.
A director who acts without board authority can create hostile relations with management and fellow directors. A director who goes rogue should be admonished by the board to not engage in such activities. If they continue, the director should be censured by the board.
SMOKING IN BED
 QUESTION: How do you enforce nonsmoking rules when a person smokes in his own bed in his own unit? -Ben
ANSWER: If the smoke is drifting into adjacent units and/or the common areas such that it can be smelled, the board can call the person into a hearing, impose fines, and suspend common area privileges. Secondhand smoke is a known carcinogen. In addition, smoking is a fire risk.
A six-story condo association I represented suffered significant damage from fire, smoke, and water (putting out the fire) when an owner fell asleep in bed smoking. Since he died in the fire, the board didn't need to take any further action to stop his smoking. For the living, if fines don't stop them from smoking in their unit, the board can sue to enforce the restriction. Before filing suit, making a prelitigation offer of ADR may be sufficient to get the smoker to stop. He will know the association is serious, which means he must decide to either spend money on a lawyer defending against a lawsuit or follow the rules.
RULES ENFORCEMENT
WEBINAR
 Are you struggling to enforce your governing documents?
Join Laurie Poole and Rob Ward for a lively discussion on enforcement strategies--what to know, and what to avoid.
Laurie and Rob will dive into the enforcement process with real-world examples and practical strategies. The webinar will be held:
Tuesday, June 24, 2025
12:00 noon
Register here for the webinar.
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DISCLAIMER. Our newsletter provides commentary, not legal advice. Boards needing legal advice should have an attorney review the facts and law for their particular situation. We serve as corporate counsel to California associations.
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