Unless the CC&Rs of a community association prohibit spending association funds on Christmas or other holiday decorations and lights, in or on the common areas, boards may spend a reasonable amount of money on these items, assuming funds are available. If criticized, board members can cite the business judgment rule.

Members of HOAs that refuse to provide their email address to the management company will not receive timely notices. This should be obvious. When the management company does not have an email address, notices must be mailed which means they may not be received for days. Some notices are emergency notices; others deal with the shut-off of utilities. Members that refuse to provide their email address are creating inconvenience and risk for themselves.

Community associations that fail to meet the January 1, 2026 deadline for obtaining an Elevated Structure Inspection are asking for trouble for at least the following reasons: (1) They will be subject to financial penalties; (2) They will be placing their members, guests, and visitors at unnecessary risk; (3) They will make it extremely difficult for owners to refinance their property; and (4) They will make it far more difficult for owners to sell their property at a good price.

Some HOA management companies are requiring members of associations to mail their monthly assessments to out-of-state addresses. Given that it takes significantly longer for assessment checks to reach the management company’s out-of-state address, more late fees are being paid by owners which could be avoided if a local address was utilized.

October, November, and December are considered fire season in Southern California because of the annual Santa Ana winds and history of wild fires. See: Brush Clearance Minimum Guidelines and Fire and Carbon Monoxide Safety Checklist.

Contracts with contractors and vendors must be authorized by the board of an association and reflected in the minutes. Likewise, contracts should be signed by a board member or members after board approval as opposed to the property manager acting as the association’s agent. If a board member signs a contract on behalf of the association, he or she should sign as follows:

John Doe, Director
Acting as agent for the
ABC Homeowners Association

___________________________
John Doe

A Van Nuys Superior Court judge ordered the Lake Lindero HOA in Agoura Hills to pay a $15.6-million judgment to the association’s developer and former management company for the wrongful termination of its management agreement.

Court documents stated the board “breached the agreement when they stopped paying management fees under the agreement and prevented the management company from managing the premises.

In addition to the $15.6 million, a penalty of more than $3 million was ordered by the court to pay the management company’s attorney fees and other costs.

According to the judge, a majority of members of the board fa iled to do the right thing. The judge scolded the HOA for having lost its way by carrying on a protracted battle and abrogating its fiduciary responsibility to the members.

Holding the HOA and its legal defense team liable for egregious errors and missteps in its dealings with the former management company, the judge said in court documents that the HOA board and its former president, Chris Barone, “engaged in the worst forms of ethical violations which have resulted in overwhelming and irremediable prejudice to the former management company.

The current HOA president is Hal Siegel, who served on the Barone board. Siegel was also chastised by the court.

Many homeowner associations that have only 3 directors are amending their corporate bylaws to increase the number to 5. Some associations with 5 directors are increasing the number to 7. There are several reasons community associations increase the number of board members or directors: (1) A larger number of directors results in a board that more closely represents the majority of the homeowners in the community; (2) When one or more directors are absent from a board meeting, the remaining directors (even if a quorum exists) is more likely to make decisions that reflect the majority of the homeowners, and (3) A larger board tends to make more moderate and less extreme decisions. See: HOAlnspectorofElections.org

A Utility Billing System (RUBS) can save your association and its members money every month on the cost of all utilities that are currently master metered. See: Ratio Utility Billing System (RUBS)