All corporations, limited liability companies, limited partnerships and limited liability partnerships (legal entities) in California must select an Agent for Service of Process (Agent) when they are formed but may change the Agent at any time. The Agent is the person who is actually served with a lawsuit should the entity be named as a defendant. Many entities select an owner or officer as the Agent. Your entity can protect its interests by having us serve as your Agent for Service of Process.

California recently enacted AB 130 which became effective on June 30, 2025. It is now California Civil Code Section 5855.

The law caps HOA fines to $100 per violation unless the violation involves “a significant and imminent threat to health or safety.” Unfortunately our brilliant state legislature has opened the door to litigation by not providing clear definitions of key terms. The result of the new law is to make it easier for those who violate CC&Rs and Operating Rules to do so without facing meaningful penalties. This may also be the intent of the law.

The new law is nearly certain to result in more violations of HOA CC&Rs and Operating Rules and it will undoubtedly cost associations more money to prevent these violations. Most HOAs will be required to rewrite most their rules at additional expense in order to comply.

Anyone selling a condominiums in California is now required to provide the buyer with the required inspection report for wood supported balconies, stairways, decks and similar structures. This is now a required disclosure that sellers must make.

Turnover of HOA managers is an industry wide problem that can be avoided. If you hire Coast Management of California as your management company, your association will be managed by a shareholder of the company who is generously compensated, and who receives excellent benefits. We do not experience manager turnover like other companies and look forward to proving it to your board. See: HOA Portfolio Manager Training and HOA Portfolio Manager Wanted – Benefits. Call Michael Chulak for additional information or Request for HOA Management Proposal.

HOA boards should be aware that many mortgage lenders are refusing to make loans to homeowners in condominium associations that do not follow the law by obtaining a reserve study every three years. Those that will make loans in these HOAs are taking advantage by charging higher interest rates. See: Consequences of Failing to Obtain Reserve Studies and Minimum Reserve Contributions.

The impact on the industry has been substantial: (1) The total number of violations has increased substantially, (2) The number of repeat violations has increased even more, (3) Attorney fees for HOAs have increased, (4) The amount of money collected by associations resulting from fines has declined, (5) Board members are required to spend more time on HOA business, and (6) Many management companies are increasing their fees to compensate for the additional time required. The new law has become a gold mine for attorneys who are rewriting Operating Rules and CC&Rs. They are also finding it necessary to get involved in those cases where associations are attempting to impose fines over $100.

Notwithstanding that HOA boards are required to provide all members with at least a four day notice before a board meeting is held, it is recommended that boards establish dates for their board meetings in advance in January of each year for the entire calendar year. Such planning results in higher homeowner attendance and minimizes timing conflicts with board members as well as the management company. HOA management companies and managers usually have more evening meetings than most homeowners, so planning dates in advance assures that the management company representative will not have a timing conflict and will always be available.

You can earn a referral fee of $250 to $500 for the referral of full-service HOA management accounts to Coast Management of California: Earn a Referral Fee.

Property owners should be very cautious before entering into a management agreement. See: Management Company Traps for additional information.

It is common for our HOA clients to hold board meetings where a representative from Coast Management of California is not in attendance. Minutes of these meetings must be prepared, approved, and a copy sent to the manager with a copy to Tina Chulak. Please see Minutes of Board Meetings and Board Meeting Definition.