There are instances where a disgruntled homeowner may file a lawsuit against his or her homeowners association ("HOA"). The lawsuit may be based on a variety of claims (i.e., claims involving property damage or alleged malfeasance on the part of the HOA's Board of Directors). This is one of the reasons why HOAs are legally required to purchase and maintain certain insurance policies designed to protect the HOA and its membership from a variety of risks.

However, problems may arise in response to the actions taken by the HOA and its management once the lawsuit has been served. Those problems generally result from the way in which the lawsuit may have been "tendered" (sent to) to one or more of the HOA's insurance carriers, including whether it was even appropriate to tender the lawsuit in the first place. 

Our attorneys have published a new article to address some of those problems and to provide guidance to HOA Boards and their management with regard to this issue...

Click here read our new article entitled: 

"Tendering Law Suits Brought Against the HOA"

Provisions setting forth the qualifications for serving on a homeowners association ("HOA") Board of Directors are typically found in the HOA's Bylaws. At the time when these provisions were originally drafted, they may have been insufficient to establish a set of specific qualifications designed to avoid operational issues and potential conflicts of interest. 

Therefore, HOAs have been traditionally required to formally amend their Bylaws in order to establish, clarify or expand director qualifications. This generally requires the approval of the membership and a formal vote which, as many Boards and industry professionals understand, often acts as a significant hurdle to achieving the HOA's goals.

However, in light of recent case law, it appears that a less onerous mechanism for enacting new director qualifications may now be available...

 Click here to continue reading our blog post entitled: 

"Court Upholds Use of HOA Election Rules for Director Qualifications"

Commercial and Industrial Common Interest Developments ("Commercial CIDs") in California have historically been governed by the same provisions that apply to planned residential developments and condominiums: the Davis-Stirling Common Interest Development Act ("Davis-Stirling"). However, some of those provisions have resulted in unnecessary burdens and requirements for Commercial CIDs that were really tailored to provide consumer protections for homeowners in residential settings (i.e., open meeting, election and disclosure requirements).

In light of this issue, on September 6, 2013, the California Legislature passed SB752: the Commercial and Industrial Common Interest Development Act.  SB752 mirrors many of the provisions contained in Davis-Stirling, but omits some of the requirements that were geared toward residential homeowners...

Click here to continue reading our blog post entitled: 

"SB: 752: Commercial & Industrial CID Act Signed into Law"

We have previously blogged about the introduction of SB822 by the California Legislature earlier this year. SB822, in part, clarifies recent amendments to the California Business and Professions Code relating to "contractors" whom are required to be licensed by the state. The clarifying language was introduced in the wake of the confusion and concern that had surfaced regarding whether community association ("HOA") managers were required to hold a contractor's license in order to perform common tasks such as obtaining bids and overseeing the progress of ongoing construction work.

Thanks to the efforts of CAI's California Legislative Action Committee ("CLAC"), SB822 was recently signed into law by Governor Brown and will take effect January 1, 2014. SB822 adds the following provision to Section 7026.1(b) of the Cal. Bus. & Prof. Code:

"The term "contractor" or "consultant" does not include a common interest development manager, as defined in Section 11501, and a common interest development manager is not required to have a contractor's license when performing management services, as defined in subdivision (d) of Section 11500."

However, this does not mean that HOA managers should interpret this language as a "green light" to act as de facto construction managers...

Click here to continue reading our blog post entited:  

"HOA Managers Not 'Contractors,' But Beware..."