This Community Association Update is an example of our commitment to providing the highest quality legal services to our clients and industry partners. If your company or Association would like to see a topic or issue covered in future editions, feel free to call our offices, email us, or submit a question online! 

The 2012 amendments to the "Common Interest Development Open Meeting Act" have made it significantly more difficult for Boards to manage the affairs of their HOAs in a quick and efficient manner. Those amendments made significant changes to the Civil Code, including revisions to the definition of meeting to include executive session meetings and the inclusion of a new "No Action Without a Meeting" rule.  As any Board Member or Manager knows, these changes have not only deprived HOAs of many of the tools previously used to conduct business outside of regularly held Board meetings, but have also obstructed the channels and methods of communication that are necessary to effectively assign responsibilities and make ongoing mid-project decisions. Although HOAs are unfortunately bound to abide by these requirements, there are devices available to the Board that can significantly decrease the burdens these requirements impose.

 

We have published a resource discussing the use of one such device--the committee--and the various ways in which it may be used by Boards to address HOA business within the constraints imposed by the Civil Code. 

 

Click here to read our resource entitled: 

"Committees: Delegating Authority to Achieve Efficiency"

Various laws have been established to protect the rights of disabled individuals, such as the Americans with Disabilities Act ("ADA") and the Federal Fair Housing Act ("FFHA"). These laws govern both public and private facilities, and set forth the degree to which an entity, such as a HOA, is responsible for making modifications or improvements to their facilities to accommodate individuals with disabilities. 

 

We have published a new resource in response to recent client inquiries relating to this issue.  It addresses the applicability of each of these laws to HOAs and sheds some light on the potential issues that Boards and Managers should be aware of.  

 

Click here to read our resource entitled: 

"Disabled Residents and the Law"

HOA developers often reserve certain easement rights for the benefit of the HOA's members. Such easement rights typically extend over common areas but may also extend to adjoining properties which are not included within the actual HOA development. When those easement rights are threatened or infringed, the recent case of Sumner Hill Homeowners' Association v. Rio Mesa Holdings, LLC., (2012) (Sumner Hill) illustrates (1) how the HOA can bring an action to protect its members' interests and (2) what substantial role the development's tract map can play in adjudicating the members' easement rights. 

 

To read more about Sumner Hill, click here to read our blogpost entitled: 

"Protecting HOA Members' Easement Rights in Disputes with Developers "

Asked - What effect does hiring an unlicensed contractor bear on a HOA? 

 

Answered - In accordance with the Contractors State License Board, it is illegal for an unlicensed contractor to perform work on any project that exceeds $500 or more in labor and materials. A Homeowners Association (HOA) that hires an unlicensed or uninsured contractor subjects itself to liability for unpaid wage or worker's compensation claims the contractor's employees may have. For example, a HOA that hired an unlicensed contractor was held to be a "general contractor" and thus required to pay the unpaid wages of the unlicensed contractor's employees. Sanders Construction v. Cerda (2009). Additionally, a HOA and a management company that hired an uninsured contractor were held to be the "employers" of the uninsured contractor's employee so as to make the HOA and the management company liable to the pay the employee's workers compensation benefits. Heiman v. Workers' Compensation Appeals Board (2007).

 

HOAs and management companies should always do their due diligence when hiring a contractor to ensure that the contractors are properly licensed. A HOA can verify the license of their proposed contractor by going to the Contractors State License Board verification page. Additionally, in case of any unforeseen scenarios, the HOA should protect itself by having provisions in its contracts indemnifying any wage or hourly claims by its employees.

 

To submit a question online to Tinnelly Law Group, click here.

Welcome New TLG Clients!

 

Our blog is updated weekly with mini articles on an array of community association topics and new case law.  We encourage HOA boards, homeowners and management to send us questions online for our attorneys to answer on our blog.  

 

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TINNELLY LAW GROUP

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