Michael Chulak provides litigation management services for homeowner associations anywhere in California. Cases can be plaintiff cases, defense cases, or pre-litigation. See: Reasons HOA Defendants Hire Litigation Managers and Reasons HOAs Get Sued. Call Michael Chulak for a no-cost initial consultation.

California community associations are private membership organizations that are not open to the general public. Unless an association’s governing documents provide otherwise, the legal right to attend board meetings provided for in the Open Meeting Act is limited. See: Who Can Attend Board Meetings and Board Meeting Definition

HOA boards have a fiduciary duty to do what is in the best interest of their association, including everything that is reasonable to collect delinquent assessments. To carry out their duty, boards must establish a collection policy and then implement the policy pursuing those remedies permitted by law, including the recording of liens and foreclosing if necessary. Failure by the board to collect delinquent assessments will likely lead to higher assessments for those paying,larger special assessments, and the inability to borrow funds should the association want to do so. High delinquencies can also affect an association’s ability to qualify for FHA and Fannie Mae approvals which can adversely affect the ability of owners to sell or refinance their units. See: Pacific Association Collections.

Officers, including the positions of president, vice president, secretary, and chief financial officer or treasurer, must be elected by the directors of associations at an open noticed meeting of the board. The bylaws often describe their responsibilities. In the absence of defined responsibilities, see: Duties of President, Duties of Vice President, Duties of Treasurer, Duties of Secretary, and Duties of Member at Large.

We have observed that many homeowners do not have a living trust. Without a living trust, homeowners assume significant risks. To find out more about living trusts, see: AffordableLivingTrusts.net.

Loss Assessment Coverage is designed to protect the owners of condominiums against special assessments resulting from liability claims or covered losses when the claim or loss is specifically insured against in the policy. It is coverage obtained by individual owners. While always valuable, loss assessment coverage is particularly valuable to condominium owners when associations have earthquake insurance. See: Loss Assessment Coverage for Condominium Owners.

Boards that want to assure that their 2025 budget is accurate should schedule a reserve study at this time. Also, note that most insurance companies and mortgage lenders are also requiring reserve studies at this time. For your convenience. we can provide you with a proposal from our affiliate, PacificReserveStudies.com. After July, all reserve study providers start to get very busy in anticipation of 2025 budget requirements, so we suggest that you do not delay in making a decision.

Boards are required to take and maintain minutes of all board meetings. Failure to do so creates a significant liability for the association as well as the board. See: Boards Failure to Take and Maintain Minutes and Minutes of Board Meetings. Boards may also want to consider using HOA Recording Secretary Services which serves all of California.

Adding a washer and dryer to a condominium unit may have several negative ramifications including the following: (1) Since most condominium buildings are master metered for water, all other owners will be required to pay for the increased water usage by the unit with the washer; (2) The owner with the washer will not use any common area laundry facilities, thus reducing the laundry income to the association; (3) The chance of flooding will increase because most condominium building plumbing systems are not designed for the extra soap and water that will be flowing through the building’s plumbing system. The cost of damage is likely to be paid, at least in part by the HOA which means all owners will pay some of the costs; (4) Vibration of the machines are likely to create a nuisance; (5) Clogged dryer exhaust lines may create a fire hazard; and (6) The insurance premium for the association’s master policy may be increased thus affecting all owners.

Many homeowner associations are experiencing problems with certain tenants because the tenants are violating the association’s Operating Rules and/or CC&Rs. Violations affect the association, its members, including the landlord. Many violations by tenants result in fines being charged to the account of owners, but these fines don’t always eliminate the problems commonly caused by these renters.

If you rent your unit, it is important that you do the following: 1) Make certain your lease includes a provision making the tenants responsible for complying with the association’s Operating Rules and CC&Rs, 2) Attaching the Operating Rules and CC&Rs to any tenant lease so the tenants have actual knowledge of their obligations, 3) Checking with the landlord of any rental applicant to determine whether the applicant has previously caused any problems or has not paid their rent. This should not be the applicant’s current landlord. It should be the prior landlord, and 4) Strongly consider hiring a professional rental home management company.

While Coast Management of California does not offer rental home management services, we do have an affiliate that offers this service for a fixed fee of $150 per month. If you have a need, you may contact Pacific-Realtors.net for information.

Professional rental home property management companies benefit the property owner as well as the association and its individual members. All owners desire to live in a peaceful well-maintained community.