Shifting from a developer-controlled community to an HOA-managed neighborhood can be challenging. There are many considerations and potential conflicts along the way. The process can take several months or even years. Moreover, there’s a lot of legal paperwork and construction phases involved. HOAs need to plan carefully to ensure a successful transition.

What is a Developer Controlled Community? 

Most homeowners associations do not start as self-managed communities. More often than not, a developer establishes the planned community and sets out its scope. It creates the HOA by developing and filing the governing documents with the Secretary of State. The HOA also establishes a budget and appoints a board.

In a developer-controlled community, the board of directors is made up of the developer and people related to the developer. The developer-appointed board has a fiduciary duty to act in the best interest of the community. It manages all aspects of community life, including maintenance, assessment collection, meetings, and enforcement.

The developer may act independently or hire a management company to handle operations. The management company will take over many of the menial tasks and follow the board’s directives. 

How Developer-Controlled Communities Form

Developer communities form through three phases.

• Expansion Project. The developer starts with an expansion project. It looks for land to develop, conducts a study, and purchases the property to establish an HOA. 
• Pre-Development. During this phase, the developer obtains the required approvals and permits before construction. It also consults with a legal professional to create the association’s governing documents.
• Formation. The developer controlled community is established during formation. It establishes a non-profit corporation and sets the obligations, ownership, and rights of the community. 

Developer Responsibilities

The developer has several responsibilities while it controls the community, including the following:

• Declaration of Covenants, Conditions, and Restrictions (CC&Rs). The developer must create and file the community’s CC&Rs to establish the HOA. The CC&Rs serve as a contract between the HOA and the residents, outlining either party’s obligations and responsibilities. They also inform the bylaws and other community rules.
• Rule Enforcement. The developer must enforce the rules found within the governing documents. When someone moves into the home, they must pay their monthly assessments and abide by the rules. Developers may do this themselves or hire an HOA management company to help them with enforcement.
• Budget. The developer must create a budget for community operations. It must be enough to cover the community’s regular expenses, operations, and reserve funds.
• Fees and Assessments. The developer-appointed board must collect assessments from the homeowners. They will be established based on the annual budget. 
• Governance. The developer must appoint a board to govern the community. Often, the developer appoints its staff to become board members. The board must then hold meetings, manage operations, and vote on important decisions. 

How Much Authority Does a Developer Have?

The developer has a lot of power in a developer controlled community. Homeowners will rarely influence the developer-appointed board’s decisions. The board not only runs the board but also creates the CC&Rs. Moreover, developers have a lot of voting rights because they still own a bulk of the community’s property. Residents may voice their concerns and suggestions, but ultimately, the power rests on the developer.

However, not all developers work like this. Some may proactively seek volunteers to join the HOA board. Potential buyers should do their research before buying a home in a planned development. Otherwise, they may not be happy with the board’s decisions.

Regardless of who controls the board, the directors have a fiduciary responsibility to act in the community’s best interest. If not, the homeowners may eventually file a lawsuit against the HOA. This means developers should follow the governing documents and acknowledge the homeowners’ rights. 

How Long Does a Developer Control a Community?

When does a developer transition to an HOA? Is there a time limit? Unfortunately, there is no standard time limit to developer control. It is often determined by the community’s governing documents and property sales.

For many communities, the developer must begin transitioning when a certain percentage of the properties are sold. For example, the governing documents may require 20% of the board members to be homeowners when 50% of properties are sold. Many communities also require the board to be exclusively comprised of homeowners when 75% of homes are sold.

On the other hand, developer turnover does not just happen when the community has sold most of its homes. Developers may also transition control when they face bankruptcy or if the court appoints a receiver. 

Some communities may also place a time limit on developer control. For instance, the governing documents may require the developer to release control when a certain number of years have passed since the CC&Rs were established. 

How to Transition from a Developer-Controlled Community

Eventually, the developers responsible for managing the HOA must give up control. How does the transition from a developer-controlled community to an HOA-controlled community work? Here are the common phases.

1. Pre-Transition

During the pre-transition phase, the developer may appoint a transition committee to help the board with all transition processes. The committee may then review the community’s finances, perform an audit, check the reserves, review insurance policies, and assess the HOA’s need for professional management. Afterward, the transition committee may recommend how to proceed to the current board. 

2. Turnover Meeting

The HOA may conduct an official turnover meeting to deliver all the documents to the HOA members. Developers must provide the following records to the community:

• A copy of the governing documents and its amendments
• Previous meeting minutes
• All community policies and rules
• Director resignation letters after the developer has turned over control
• Financial reports, statements, and records
• Bank accounts, signature cards, and inventory records
• Membership list
• Architectural, engineering, structural, electrical, plumbing, and mechanical plans
• Underground site services, site grading, drainage, and landscaping plans 
• Insurance policies
• Official permits
• Contractor lists
• Lease agreements and vendor contracts

During the meeting, the community residents may elect a new board of directors comprised of HOA members.

3. Post-Turnover

Developers may still attend HOA meetings for a few months after the official turnover. This time frame allows them to ensure a smooth transition. The developer can advise the new board on operations and provide insights on certain decisions.

Tips for Developer Transition

What should developers and homeowners associations keep in mind during the transition? Here are some tips that might help.

1. Create the Transition Team Early

HOAs should create the transition team at least one year before the turnover meeting. This gives them time to review the HOA’s records and plan for the transition. 

2. Hire Professionals

The HOA may require professional help to turn over documents and operations. Consider hiring an HOA manager who can support the association throughout the process. The HOA manager can liaise between the developer and the community. They may also handle operations and guide the board in their new responsibilities.

In addition, it may help to hire a civil engineer and lawyer. The civil engineer can review the project’s common elements and spot potential problems. Meanwhile, the lawyer may help the developer with the transition’s legal requirements. 

Finally, the community may hire an accountant to audit its financial records. The accountant may check for inconsistencies, discrepancies, and signs of fund mismanagement or fraud.

3. Audit Each Contract and Document

The transition committee may audit all the executed contracts, insurance certificates, correspondence, and maintenance records. They may review and reconsider unreasonable contracts or agreements that do not work in the HOA’s favor. It may help to consult an attorney during the review. 

Apart from this, they should copy and store the documents in a secure vault or online storage platform. The HOA may need to invest in additional security measures to ensure the documents are safeguarded.

4. Inspect the Community

The transition team should schedule an inspection with the community engineer. This way, they can find potential problems with the community’s facilities. The HOA can then ask the developer to address these issues before they transition control. 

A thorough inspection also informs the community of where important utility lines are. The community can also obtain a copy of the neighborhood’s permits and warranties. 

5. Perform and Record Maintenance

The transition team should establish an exact date to transition control over maintenance activities. Doing so can help the board prepare for maintenance duties after the transition.

6. Set Regular Meetings

The new board, transition team, and developer should hold regular meetings to ensure a successful transition. A board email may also be necessary so all directors can access important communications. 

7. Take Financial Control

The new board should review all accounting records and ensure they have control over all community accounts. The developer should also be asked to turn over all bank accounts, investments, and loans to the board. 

A Successful Transition

It’s not always easy to transition from a developer controlled community to an HOA-managed one. The new board may not have the knowledge or experience to run a planned community. Hence, it’s important to create a transition team early and plan the turnover in phases.

Personalized Property Management helps developers and homeowners associations with management and community transition. Call us now at 760-325-9500 or visit our website to learn more!

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Living in a condominium can be beneficial in many ways. Condominiums often have a wider variety of amenities like gyms, co-working spaces, and rooftops. Some condos even come with a mix of residential and commercial properties, offering more convenience to residents. However, the average condo association fees are typically higher than your regular HOA. 

What Do Condo Association Fees Pay For?

Buying and owning a home is an important milestone in any person’s life. However, the cost of the property is not the only consideration. Potential buyers should also consider the cost of the community’s association fees. What are these fees for?

Condo fees typically cover the cost of maintaining the following:

• Landscaping
• Lobbies
• Hallways
• Elevators
• Staircases
• Patios
• Tennis courts
• Swimming pools
• Clubhouses
• Recreational facilities

In addition, many condominium associations hire staff to keep the grounds clean and well-maintained. While homeowners associations can get by hiring occasional vendors, in-house staff are almost essential for condominiums.

Condo associations often include shared utilities in their association fees. Multi-unit buildings often require air conditioning, heating, and hot water. Some communities also provide garbage, sewage, and water services. Higher-end neighborhoods also offer internet and cable television. 

Finally, a part of the condo association fees are allocated toward the reserves. The reserve fund acts as an emergency fund for the community. It’s a long-term account that collects money for major replacements, repairs, and maintenance costs. For example, it can pay for a damaged roof or help replace an elevator.

A lack of ample reserves leads to special assessments. These are one-time fees charged to cover the cost of surprise expenses (e.g., when a storm hits and damages HOA property). They’re useful in a pinch but are often financially burdensome for the residents. 

Why are Condo Fees Different?

HOAs and condo associations both charge assessments for upkeep. However, there are differences between condo fees vs HOA fees. This is because the common areas of HOAs and condo associations are different. HOAs have shared roads, sidewalks, and amenities. Meanwhile, condominiums share hallways, elevators, stairs, and lobbies.

In addition, homeowners’ maintenance duties are different. All condo owners need to pay for repairing the whole building and all common elements, including shared piping, electrical systems, and HVAC systems. Meanwhile, homeowners maintain their own properties. The association does not cover the cost of keeping people’s homes. 

For these reasons, condo fees are usually higher than HOA fees. There’s much more to maintain ,and the residents share more facilities and infrastructure than standard single-family homes or townhouses. 

How Much are Average Condo Association Fees?

What are typical HOA fees for a condo in California? The average condo association fees in the U.S. cost about $300-$400 a month. Typical condo association fees in California are similar in range. However, it may be higher or lower depending on the city. It may even cost as much as $1,000 monthly. It also depends on factors like size, location, amenities, and services.

Generally, more luxurious condominiums with high-end amenities or services charge a higher monthly fee. The same is true for larger condominium communities and those with more facilities. It’s also important to consider the location and accessibility. Condominiums with higher property values in more dense urban areas charge higher fees overall.

In addition, property owners or potential buyers should consider the association’s overall finances. Communities with better financial management can keep costs down. However, those without enough reserves may charge a higher condo association fee or levy special assessments for unexpected expenditures. 

Why are Condo Fees Important?

Condo fees are the lifeblood of a condo association. Condominiums may all but crumble without these assessments. This is because condominium associations need a lot of money for maintenance.

If a condo association lacks funds, several things could happen. Firstly, upkeep could fall by the wayside. This means the hallways, staircases, and lobbies might be untidy and prone to damage. The elevators, electricity, plumbing, and sewage may stop working and cause residents inconvenience.

In addition, the condo association might make unwise financial decisions just to cover the costs. The board might cut financial corners by skipping certain cleaning and maintenance tasks. They might also forego insurance to save money. As a result, the condo might become uninhabitable or unsafe to live in.

Furthermore, the board may tap into the reserve funds to cover operations. This is not ideal as the reserves are intended for major replacements and repairs. If the board uses too much of the reserve funds, there won’t be enough for rainy days. The HOA will be vulnerable during natural disasters or emergencies.

Finally, the association may resort to levying special assessments. This means the residents will have to pay even more money just to manage or maintain the condominium. It’s unpopular among unit owners because condo fees are already quite high. Property owners won’t be happy about paying hundreds (or even thousands) of dollars more on top of HOA fees.

Can Condo Associations in California Raise Fees?

Condo associations are typically allowed to raise annual fees. However, there are certain restrictions imposed by California law. According to the Davis-Stirling Common Interest Development Act Section 5605(b), associations must obtain a majority vote of a quorum of the members at a member meeting or election if they plan to:

• Impose fees 20% greater than the regular dues for the prior fiscal year or
• Charge special assessments, which in full, go above 5% of the gross expenditures budgeted for that fiscal year

In addition, the board members must refer to the governing documents to see whether there are restrictions on assessments. Some communities may require the board to obtain a majority vote regardless of how much they raise fees. 

What Happens When You Don’t Pay for Condo Fees?

Property owners are legally required to pay their association dues. If they cannot or refuse to pay their fees, several things may happen.

1. Violation Notice

When someone misses a payment, condo boards first send a violation notice. The violation letter tells the resident of their late payment, how to make their account current, and the next steps the association will take if the resident misses another deadline. 

Each condo association will have different enforcement procedures. Nevertheless, most associations send the notice by email or mail. 

2. Hearing

Depending on the association’s process, the board may hold a hearing with the property owner and decide how to act based on the hearing’s outcome. 

3. Fines

One of the most effective ways to ensure compliance is to impose fines. The association board may charge interest or late fees on property owners who do not pay their dues on time. Fines and interest can add up quickly, especially if a resident has been delinquent for several months.

4. Suspension of Rights & Privileges

Condo associations often provide lots of perks and amenities. For instance, many will have a pool, clubhouse, gym, or co-working center. The residents can often use these for free whenever they need to.

However, if a resident becomes delinquent in their assessments, they may lose the right to use these facilities until they become current. The board uses this tactic to force compliance. On the other hand, check the governing documents as well. Some associations have strict rules about when the board can suspend the residents’ rights or privileges — or if they are allowed to at all. 

5. Liens

A resident who has been delinquent for several months or years can be troublesome for the association. As a result, many association boards place liens on resident property when they become delinquent. A lien is a legal charge against the property to secure the payment of the resident’s debt. 

When a lien is placed, the unit owner may have a hard time selling the unit once the debt is paid. The lien may also affect the unit owner’s credit rating. Finally, the lien could lead to a foreclosure. 

6. Foreclosure

Non-payment has several consequences — including foreclosure. In other words, the association may take control of the property and sell it off to pay the unit owner’s debt. Foreclosures are often long and tedious, costly processes for both the unit owner and the association. 

Granted, this is often a last resort associations use to collect debts. Nonetheless, it’s a reality many people face when the situation becomes dire. Depending on the process and situation, it may take several months to years. 

Pay Your Condo Association Fees

The average condo association fees vary by region. In California, residents should expect to pay between $300 and $400 a month. These fees include upkeep, cleaning, utilities, reserves, and services. It’s essential to pay them so the community can have a more pleasant living experience. 

Personalized Property Management provides premier condo association management services across Southern California. Call us now at 760-325-9500 or visit our website to request a quote!

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Homeowners associations in the Golden State must understand the different California HOA laws. These laws are specifically designed to govern HOA communities and ensure harmonious association living. They are essential to both homeowners and board members.

What are the State of California HOA Laws?

California HOA laws govern how homeowners associations operate and manage communities. These laws establish guidelines for board governance, homeowner rights, financial management, and more. California’s HOA laws aim to protect individual homeowners and the integrity of the community.

The primary set of laws governing HOAs in California falls under the Davis-Stirling Common Interest Development Act. However, additional laws, such as the Fair Employment and Housing Act, also impact HOAs. These regulations ensure that homeowners are treated fairly and that HOAs run smoothly.

Understanding these laws is crucial for HOA board members, as noncompliance can lead to legal issues and penalties. Homeowners should also familiarize themselves with these laws to understand their community rights and obligations.

The Importance of Understanding California HOA Laws

Both HOA boards and homeowners need to understand California HOA laws. Board members must ensure their actions comply with state requirements, while homeowners should know their rights to avoid violations.

California HOA laws cover everything from board election procedures and financial transparency to architectural guidelines and homeowner rights. Knowing these regulations allows HOAs to function without legal complications and helps maintain a fair and equitable living environment.

Failure to comply with these laws can result in fines, lawsuits, or the invalidation of board decisions. Therefore, understanding the legal framework is essential for preserving community harmony and protecting the interests of both the HOA and its members.

The Davis-Stirling Common Interest Development Act

The Davis-Stirling Common Interest Development Act is the cornerstone of California HOA laws. This act governs the creation, management, and dissolution of HOAs in common interest developments (CIDs), such as condominiums, townhomes, and planned unit developments.

The Davis-Stirling Act outlines rules for operating HOAs, including meeting requirements, voting, and maintaining financial records. It also covers homeowners’ rights to access association documents, dispute resolution processes, and guidelines for assessing and collecting dues.

One key provision of the Davis-Stirling Act requires HOAs to adopt open meeting policies. This ensures transparency and allows homeowners to participate in decision-making processes. The act also mandates annual budget disclosures, reserve fund planning, and election procedures.

The Fair Employment and Housing Act

The Fair Employment and Housing Act (FEHA) applies to HOAs regarding discrimination. FEHA prohibits discrimination in housing based on race, color, religion, sex, gender, national origin, disability, familial status, or other protected categories.

Homeowners associations must ensure that their rules and policies comply with FEHA. This includes rules related to renting units, selling properties, and accommodating disabled residents. Failure to adhere to FEHA’s requirements can result in legal action and penalties for the HOA.

For example, if an HOA denies a homeowner’s request to modify their unit for disability access, the HOA may face legal challenges under FEHA. As such, boards should review their policies regularly to ensure they align with this law.

California Corporations Code

Many California HOAs are incorporated as nonprofit mutual benefit corporations. Therefore, they must also comply with the California Corporations Code. This code governs the conduct of nonprofit corporations, including how HOAs hold meetings, elect directors, and maintain financial records.

The Corporations Code outlines the responsibilities of the board of directors, including fiduciary duties. All HOA boards must act in the community’s best interest and make decisions that benefit all members. The code also addresses procedures for amending governing documents and handling disputes within the association.

Specific HOA-Related Laws in California

The Davis-Stirling Act and Corporations Code cover a wide range of topics. However, some are more discussed than others. Here are the laws that board members commonly look up.

Solar Rights in California

California law protects homeowners’ rights to install solar energy systems on their properties. Civil Code Section 714 states that HOAs cannot prohibit or unreasonably restrict homeowners from installing solar panels. This law is designed to promote the use of renewable energy and reduce the state’s carbon footprint.

While HOAs can establish guidelines for the placement of solar panels, these guidelines must not increase the cost or reduce the system’s efficiency. Associations should ensure that their architectural review processes comply with this law to avoid disputes with homeowners.

Pet Rights in California

California law limits how much HOAs can restrict pets in residential communities. HOAs can impose reasonable rules regarding the number, size, and type of pets allowed. However, they cannot ban pets altogether (Civil Code Section 4715).

Associations can enforce rules about noise, waste, and leash requirements, but outright bans on pets are generally unenforceable. Homeowners should be aware of their rights regarding pet ownership. Meanwhile, HOAs must ensure their pet policies are consistent with state laws.

Climate-Appropriate Landscaping Rights in California

California promotes water conservation by protecting homeowners’ rights to install drought-tolerant landscaping. According to Civil Code Section 4735, HOAs cannot prohibit or fine homeowners from replacing traditional lawns with climate-appropriate plants, including succulents and native vegetation. Homeowners can also request that HOAs reduce restrictions on irrigation and watering schedules to support water conservation efforts.

Does the Department of Real Estate Regulate HOAs in California?

The California Department of Real Estate (DRE) oversees certain aspects of HOA governance, particularly during the initial development of common interest communities. The DRE ensures that developers provide full disclosure to prospective buyers about the HOA’s governing documents and financial responsibilities.

Once the developer hands control of the HOA over to the homeowners, the DRE’s role diminishes. At this point, the HOA board and its members must adhere to the Davis-Stirling Act and other relevant laws. However, the DRE remains involved in matters concerning real estate transactions and disclosures related to HOAs.

New California HOA Laws 2024

Several new laws affecting California HOAs will go into effect in 2024. These laws address a range of issues, from financial transparency to housing equity. Boards should review and update their governing documents to ensure compliance.

Assembly Bill 648

AB 648 permits board meetings to be held via teleconference under specific conditions that ensure homeowners and board members can participate equally, similar to in-person meetings. Meeting notices must include clear instructions on how participants can join the teleconference.

Assembly Bill 1458

AB 1458 allows homeowners associations to reschedule meetings if a quorum is not reached, with a new date set within 5 to 30 days. During the rescheduled meeting, the quorum requirement is based on the number of members attending in person, by proxy, or through secret ballots.

Assembly Bill 1764

Effective January 1, 2024, AB 1764 enables associations to impose term limits for board members. The bill mandates disqualification for members exceeding these term limits, applying to current and prospective board members. Directors who are no longer HOA members will also be disqualified.

Assembly Bill 1572

AB 1572 extends the emergency rule restricting potable water use for non-functional turf in industrial, commercial, and institutional areas. Exceptions include community-use grass, trees, and residential lawns. Non-functional turf may still be irrigated with recycled water. The rule, initially set to expire in June 2023, was extended by the State Water Resource Control Board.

Assembly Bill 572

AB 572 caps the annual increase in regular assessments on deed-restricted affordable housing units in HOAs. Increases cannot exceed 5% of the previous year’s assessment or the cost-of-living increase, with a maximum of 10%. This applies to HOAs that record their original declaration on or after January 1, 2025.

Senate Bill 721

SB 721 mandates inspections of exterior elevated elements in multifamily residential buildings with three or more units. This regulation was introduced to improve safety following a fatal incident in Berkeley in 2015.

Assembly Bill 1033

Effective January 1, 2024, AB 1033 allows homeowners with an accessory dwelling unit (ADU) to split the lot and sell the ADU separately from the primary residence. The ADU can be converted into a condominium, subject to approval from the HOA, all mortgage holders, and the local government passing an ordinance allowing such sales.

Senate Bill 71

SB 71 raises the small claims limit for entities like HOAs to $6,250.

Senate Bill 428

Effective January 1, 2025, SB 428 expands the grounds for workplace restraining orders to include cases of harassment, unlawful violence, or credible threats of violence against employees.

Protecting Homeowner Rights and Reducing HOA Risk

California HOA laws provide a comprehensive framework for governing homeowners associations and protecting the rights of homeowners. HOAs can operate efficiently and foster harmonious communities by understanding and complying with these laws. Staying updated on new regulations ensures the protection of everyone’s rights and that associations remain in good standing with the law.

Personalized Property Management offers HOA management services around Southern California, including assistance with HOA governance. Call us at 760-325-9500 or email us at info@ppminternet.com for more information!

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Many people confuse a condo association with a homeowners association. While they share similar functions, each operates under different rules and structures. Understanding these distinctions is essential for anyone considering living in a condominium or HOA.

What is a Condo Association?

A condo association, or a condominium owner association (COA), is a governing body that manages a condominium community. Its primary purpose is to oversee the maintenance, operation, and management of shared spaces within the condo complex, including common areas such as hallways, lobbies, swimming pools, and landscaping.

A condo association consists of unit owners within the condominium community. Each owner automatically becomes a member upon purchasing a unit. The association is responsible for enforcing the condo community’s rules and regulations. A governing document establishes these rules, typically including bylaws, covenants, conditions, and restrictions (CC&Rs).

Every condo association has a board of directors. These directors assume their positions through an election process, with votes from the unit owners. 

The condo board is responsible for making decisions related to the financial and operational management of the property. These duties include maintaining the building, collecting monthly dues from unit owners, and ensuring that the shared spaces are in good condition. Condo associations also handle reserve funds to cover future repair costs and improvements.

What is the Difference Between HOA and Condo Association in California?

In California, an association must manage a common interest development, including condo associations (Civil Code Section 4800). Although condo associations and HOAs have similar functions, they have notable differences. These differences center around ownership, maintenance, management, fee division, rules, and insurance.

1. Ownership

In a condo association, owners own their units individually but share ownership of common areas. Common areas may include hallways, lobbies, gyms, and swimming pools. 

In contrast, in an HOA, residents own their homes and the land around them. HOA members typically have more direct ownership of the external areas surrounding their homes, such as yards and driveways.

The ownership structure directly impacts how maintenance and repair responsibilities are divided between the association and the owners.

2. Maintenance

A condo association is responsible for maintaining all shared common areas, including exterior structures, parking lots, and recreational facilities. Individual condo owners are only responsible for maintaining the interiors of their own units. 

In an HOA, homeowners are responsible for maintaining their homes and privately owned land. Meanwhile, the HOA manages shared community spaces like parks, pools, and roads. The level of maintenance varies significantly between the two, with condo associations generally having more control over the physical upkeep of the property.

3. Management

A condo association often relies on a condo management company to assist with the community’s day-to-day operations. This company handles tasks like collecting dues, managing budgets, hiring maintenance staff, and resolving resident concerns.

The management structure of HOAs can be similar. The HOA board oversees general operations, often with the assistance of an HOA management company. However, HOA boards may take a more active role in directly managing their communities, particularly in smaller developments.

4. Fee Division

One of the major differences between a condo association and an HOA is the method of calculating fees. 

Condo associations typically charge higher monthly fees since the association handles a larger portion of property maintenance. These include exterior repairs, landscaping, and even utilities in some cases. Additionally, fees can vary depending on the unit size, with larger units sometimes paying a larger percentage.

In contrast, HOA fees tend to be lower since homeowners are responsible for home maintenance and exterior upkeep. HOA fees usually cover community-wide amenities like pools, clubhouses, or common area landscaping. More often than not, homeowners pay the same fee regardless of property size. However, some communities also follow the size-to-percentage rule.

5. Rules

Both condo associations and HOAs enforce rules to maintain the community’s appearance and ensure harmonious living. Condo associations typically have stricter rules because of the shared nature of the property. These rules might dictate what unit owners can do to their exterior walls or balconies. Given how close units are to each other, COAs also emphasize rules concerning noise, occupancy, and pets.

Homeowners associations also have rules, but they tend to focus more on the exterior of homes and community-wide regulations. Rules in HOAs often pertain to landscaping, parking, and the appearance of homes.

6. Insurance

Another key difference between a condo association and an HOA is how insurance works. Condo owners need to purchase insurance policies for the interior of their units, including personal belongings and fixtures. The condo association is responsible for insuring the building’s exterior and common areas.

In an HOA, homeowners are responsible for insuring their entire property, including both the interior and exterior of their home. The HOA typically only maintains insurance for shared amenities and common spaces.

Is Membership in a COA Mandatory?

Yes, membership in a condo association is mandatory for all condo unit owners. When someone purchases a condo unit, they automatically become a member of the condo association. Therefore, they are required to follow its rules. 

This membership also comes with certain responsibilities. Some examples include paying monthly or annual association fees, adhering to community regulations, and participating in any association votes.

Failure to pay dues or comply with the condominium association rules can result in penalties. These include fines, liens on the property, or legal action. Unit owners may also lose access to certain community amenities and privileges if they fail to meet their obligations to the association.

Benefits of Condo Association Living

Condo associations offer residents many benefits, making this form of community living appealing.

1. Shared Maintenance Responsibilities

One of the most significant benefits of living in a condo association is the shared maintenance responsibilities. The condo association handles all external maintenance, such as landscaping, snow removal, and common area repairs, relieving individual unit owners of the burden of maintaining the building’s exterior.

Owners also don’t have to worry about major repairs like roof replacements or exterior painting. The association manages these tasks, ensuring that the entire property is well-maintained without individual owners bearing full responsibility.

2. Access to Amenities

Many condo associations offer a range of amenities that residents can enjoy. These amenities can include swimming pools, fitness centers, clubhouses, and tennis courts. Access to these amenities adds value to condo living. They offer a convenient way for residents to enjoy recreational activities without leaving their community.

3. Enhanced Security

Living in a condo association often comes with enhanced security features. Many condo communities are gated or have security personnel monitoring the premises. Additionally, shared entrances and communal areas help reduce the likelihood of unauthorized people entering the property.

Security features like surveillance cameras and controlled access points are common in condo buildings. These measures provide residents with peace of mind, knowing that their community is secure.

4. A Strong Sense of Community

Condo associations foster a strong sense of community among residents. Since unit owners share common spaces and amenities, they have more opportunities to interact and build relationships with their neighbors. Social events organized by the condo association, such as holiday gatherings or community meetings, further encourage a sense of camaraderie.

Living in a close-knit community can provide a support system for residents and create a more enjoyable living environment. Residents may feel more connected to their neighbors, improving their overall living experience.

5. Professional Condo Management

Another benefit of living in a condominium association is professional management. Condo management companies handle tasks such as maintenance, repairs, budgeting, and owner communication. This takes much of the administrative burden off individual unit owners and board members.

Having a professional condo management company ensures that the property runs efficiently. Condo managers can also promptly address any issues that may arise. This level of professionalism helps keep the community running smoothly and ensures that standards remain high.

6. Property Value Preservation

Condo associations help maintain property values by enforcing community rules and ensuring the property is well-maintained. The collective efforts of the condo association to preserve the exterior of the building and common areas contribute to the overall appearance and attractiveness of the community.

By maintaining high standards and ensuring that the property remains in good condition, condo associations can help protect the long-term value of each unit. This benefits all owners, as a well-maintained property is more likely to retain or increase its value over time. Owners can then get a sizable return on their investment.

Making an Informed Decision

A condo association is similar to a homeowners association in many ways. However, as you can see, there are also key differences. Potential buyers should understand how COAs and HOAs operate and what makes them different from each other. This way, they can make an informed decision on their purchase. 

Personalized Property Management offers condominium association management services around Southern California. Call us at 760-325-9500 or email us at info@ppminternet.com for more information!

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Homeowners associations rely on financial transparency and accountability to maintain trust with residents. One of the best ways to ensure financial accuracy is by conducting regular audits. An HOA audit provides a clear view of an association’s financial health and safeguards the community from potential mismanagement.

What is an HOA Audit?

An HOA audit is an in-depth financial examination conducted by a licensed, certified public accountant (CPA). The CPA carefully reviews the association’s financial records, bank statements, income, expenses, and financial management practices during an audit. The goal of an audit is to verify the accuracy of the HOA’s financial statements and ensure they comply with legal standards and generally accepted accounting principles (GAAP).

An audit is not just a simple review of financial data. It involves a detailed analysis to identify discrepancies, errors, or instances of fraud. The auditor examines the HOA’s internal controls, ensuring that checks and balances are in place to prevent mismanagement. This process also confirms that the HOA’s financial activities align with its budget and governing documents.

In addition to verifying financial accuracy, an audit can help the board spot potential areas of financial inefficiency. For example, it can reveal if the HOA is overspending in certain areas or if there are opportunities to reduce costs. Identifying and addressing these issues early can prevent financial problems from escalating.

Audits also serve as a form of financial protection for the board members. Since board members have fiduciary responsibilities, an audit helps prove they are fulfilling their duties in responsible financial management. By having an independent CPA review financial statements, the board can show that they act in good faith and follow proper procedures.

The Importance of a Homeowners Association Audit

Regular audits are crucial for maintaining financial accountability within an HOA. One of the primary benefits of an audit is the confidence it provides to homeowners. When residents know that a third-party professional has reviewed the HOA’s financial records, they can trust that their association dues are being used properly. This transparency helps foster a stronger sense of community and trust between the board and homeowners.

Audits also help protect the HOA from legal and financial risks. An accurate audit reduces the risk of financial mismanagement or fraud. If an HOA’s finances are ever questioned, having audit reports on hand can protect the association from potential lawsuits. Additionally, audits help ensure compliance with local, state, and federal laws and the association’s governing documents.

In some states, such as California, HOAs are required by law to perform regular audits if they exceed certain financial thresholds. Failing to comply with these audit requirements can result in fines, penalties, or legal action against the HOA. Thus, conducting timely audits is an industry practice and a legal requirement in some jurisdictions.

Another important aspect of HOA audits is that they provide valuable insights into the association’s financial health. By reviewing the HOA’s financial position, an audit can help the board make informed decisions. For example, an audit might reveal that reserve funds are underfunded or that maintenance expenses are rising faster than anticipated. The HOA can better plan for the future and avoid financial pitfalls by addressing these issues.

Types of HOA Audits

There are three primary types of audits that HOAs can choose from, each offering a different level of scrutiny: audit, review, and compilation. The type of audit an HOA selects will depend on its size, budget, and financial needs.

1. Audit

An audit is the most thorough and comprehensive financial review. During an audit, the CPA verifies financial transactions, reviews internal controls, and performs tests to ensure accuracy. The auditor may also look for potential signs of fraud or financial mismanagement. Once the audit is complete, the CPA provides a detailed report, including their findings and recommended improvements.

Audits provide the highest level of financial assurance but are also the most expensive type of review. This type of audit is best suited for large associations or those with complex financial structures. An audit may not be necessary for smaller HOAs with limited transactions, but it can still offer peace of mind.

2. Review

A review is a less rigorous financial examination than an audit. The CPA will analyze the association’s financial statements to check for obvious inconsistencies or problems. However, unlike an audit, the CPA does not perform detailed testing or verification of transactions.

Reviews are more affordable than audits. Therefore, they are ideal for medium-sized HOAs that want some financial scrutiny without the full cost of an audit.

While a review offers less assurance than an audit, it can still provide a reasonable level of financial oversight. Reviews help identify glaring issues and confirm that financial statements are accurate at the surface level.

3. Compilation

A compilation is the least comprehensive type of financial review. During a compilation, the CPA compiles financial data provided by the HOA but needs to verify the information or check for accuracy. Compilations are generally the cheapest option but offer the lowest level of financial assurance.

Compilations are appropriate for very small HOAs with straightforward financial transactions. However, since the CPA does not verify the accuracy of the financial data, a compilation may need to provide more assurance for larger or more complex associations.

Inhouse vs. Outsourced HOA Audit: Which is Better?

HOAs have two options for conducting audits: they can handle the process in-house or outsource the audit to an external CPA firm. Each approach has its own set of pros and cons.

In-House Audit

Typically, the HOA board conducts the in-house audit. However, the board may delegate this responsibility to an HOA audit committee.

This approach can save money, as the association does not have to hire an external CPA. However, conducting an internal audit can raise concerns about bias or conflicts of interest. Board members may not have the necessary accounting skills to conduct a thorough audit, and their personal involvement in financial decisions could affect the objectivity of the audit.

Additionally, internal audits may not meet the same professional standards as those conducted by a licensed CPA. If homeowners do not trust the results of an in-house audit, it could lead to disputes or loss of confidence in the board’s financial management.

Outsourced Audit

Outsourcing the audit to an external CPA provides the highest assurance and objectivity. A CPA is trained to identify financial discrepancies, errors, or fraud. Therefore, they will ensure the audit follows professional standards. The HOA can demonstrate to homeowners that it is committed to transparency and accountability by hiring an external auditor.

While outsourcing is more expensive, many associations find the investment worth the cost. An independent, unbiased audit can help protect the HOA from financial risks and build trust within the community. Additionally, having a third-party CPA conduct the audit can provide valuable insights that the board might need to gain the expertise to identify.

California HOA Audit Requirements

In California, HOAs must follow specific audit regulations outlined in the Davis-Stirling Act. According to this law, any association with annual gross revenues exceeding $75,000 must review its financial statements. This requirement applies regardless of the association’s size or complexity of finances.

Furthermore, a licensed CPA must conduct the financial review. The results must be made available to all homeowners within 120 days of the end of the HOA’s fiscal year. This rule ensures that homeowners remain informed about the association’s financial condition.

While the Davis-Stirling Act sets minimum audit requirements, some HOAs may have stricter audit provisions in their governing documents. If an HOA’s documents require an audit, the board must hire a CPA.

California HOAs should review their bylaws and CC&Rs to ensure they are meeting their legal and internal audit obligations. Failure to comply with audit requirements can result in penalties or legal action. To avoid these consequences, California HOAs must stay up-to-date with state laws and their own governing documents.

How Much Does an HOA Audit Cost?

The cost of an HOA audit depends on several factors, including the size of the association, the type of audit, and the complexity of its finances. A full audit typically costs between $5,000 and $10,000. Reviews are less expensive, ranging from $2,000 to $4,000. Compilations are the most affordable option, often costing under $2,000.

Larger HOAs with complex financial structures may face higher audit costs. However, it is important to view the cost of an audit as an investment in the association’s financial health. A comprehensive audit can prevent costly financial disputes or legal issues.

One way to reduce audit costs is to ensure that financial records are well-organized and up-to-date. The more organized the HOA’s financial data is, the less time the auditor will need to review documents. Thus, the HOA can lower the overall cost of the audit.

Some HOAs may also be eligible for discounted audit services if they hire the same CPA firm to conduct multiple audits over several years. Building a long-term relationship with a CPA can provide continuity and help reduce audit costs.

The Final Word

An HOA audit is a crucial tool for maintaining financial accountability and transparency. Whether an HOA chooses an audit, review, or compilation, regular financial oversight helps protect the association from potential financial mismanagement.

Personalized Property Management offers HOA accounting services around Southern California. Call us at 760-325-9500 or email us at info@ppminternet.com for more information!

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The City of Palm Desert stormwater ordinance ensures proper management of stormwater to protect local waterways and maintain environmental balance. This regulation reduces pollution, promotes sustainability, and complies with federal and state water quality standards.

What is the City of Palm Desert Stormwater Ordinance?

The Stormwater Ordinance is Palm Desert’s local regulation that seeks to manage stormwater runoff and prevent pollution of the municipal storm drain system. This ordinance aligns with federal and state requirements, particularly the Clean Water Act and the National Pollutant Discharge Elimination System (NPDES) permits. It is designed to protect the quality of local water, reduce harm to the environment, and promote sustainability.

When unmanaged, stormwater runoff can carry pollutants—such as oil, debris, and chemicals—into waterways, disrupting ecosystems and contaminating water supplies. The ordinance establishes guidelines and responsibilities for residents, businesses, and developers to minimize these risks.

Key Provisions of the City of Palm Desert Stormwater Ordinance

Here is a summary of the key provisions under the City of Palm Desert, CA, municipal codes for stormwater drainage.

Discharge of Pollutants (24.20.050)

Discharging stormwater into the storm drain system is generally not allowed unless it falls under specific exceptions.

NPDES Permit Compliance

A discharge is allowed if regulated under an NPDES permit or waiver issued by California. The EPA must authorize the permit. The discharger must fully comply with all permit requirements and follow any related regulations to remain in compliance.

Allowed Discharges

When managed properly, certain activities are not considered pollutants and are permitted. These include the following:

•    Flushing water lines or other discharges from drinking water systems
•    Lawn watering and landscape irrigation
•    Irrigation water or redirected stream flows
•    Groundwater seepage or uncontaminated pumped groundwater
•    Water from building foundations, crawl spaces, or air conditioners
•    Natural flows from springs, wetlands, or riparian habitats
•    Residential car washing
•    Dechlorinated water from swimming pools
•    Water used for firefighting efforts

These exceptions are in place to ensure compliance with water quality standards while allowing harmless or necessary activities.

Discharge in Violation of Permits (24.20.060)

Any discharge violating an existing or future municipal NPDES permit is prohibited. This includes permit No. CAS617002 and any future amendments, revisions, or reissuances.

Discharges are considered violations, whether individually or combined with other discharges. The person responsible for the discharge is fully liable for any resulting violations. They must defend, indemnify, and hold the city harmless in any related enforcement actions.

Reduction of Pollutants in Stormwater (24.20.080)

Throwing, leaving, or depositing refuse, garbage, or abandoned objects on any public or private property is prohibited. This includes streets, alleys, sidewalks, storm drains, catch basins, or drainage structures within the city.

The only exception is if the waste is temporarily placed in a proper container with a spill containment system. Allowing dumpsters or waste bins to leak pollutants into streets, drains, or land is also a violation.

Outdoor Storage Areas – Commercial and Industrial Facilities (24.20.090)

Improper grease, oil, or hazardous substances storage in outdoor areas is prohibited. Motor vehicles, machine parts, or objects that may leak hazardous substances must not be stored improperly.

The city may require a spill containment system to prevent hazardous substances from leaving the property. Spill containment systems can include dikes, walls, barriers, berms, or similar devices. Operating a spill containment system that allows incompatible liquids to mix and create hazards is not allowed.

Construction Sites (24.20.100)

Anyone performing construction work in the city must follow this chapter’s rules and comply with Section 27.12.065 on erosion control.

New Development and Redevelopment (24.20.110)

The city may require new developments or redevelopments to control stormwater runoff volume and rate to reduce pollutants. These measures aim to prevent water quality deterioration that could harm future water uses. The public works director may establish BMP standards to manage runoff and minimize pollutant transport.

Acceptable methods for controlling stormwater runoff include:

• Increase Permeable Areas
• Direct Runoff to Permeable Areas
• Maximize Stormwater Storage for Reuse

Compliance With General Permits (24.20.120)

Industrial dischargers, construction-related dischargers, or others under an NPDES permit must comply with all permit requirements. This includes permits issued by federal or state water boards, such as the Santa Ana, San Diego, or Colorado River Basin Regional Boards.

This chapter specifically adheres to the industrial stormwater general permit, construction activity stormwater general permit, and dewatering general permit. Before issuing city grading, building, or occupancy permits, proof of NPDES general permit compliance in an acceptable form may be required for the director.

Compliance With BMPs (24.20.130)

Any federal, state, regional, or city agency may adopt BMP guidelines for activities, operations, or facilities affecting stormwater. These guidelines address stormwater pollution, contamination, or non-stormwater discharges to the storm drain system. Anyone involved in such activities or owning such facilities must follow these guidelines directed by the city’s director.

Authority to Inspect (24.20.140)

Inspection Rights  

Authorized officials may inspect buildings or premises to enforce this chapter if they suspect a violation. They can enter at reasonable times after presenting proper credentials and requesting entry. If the property is unoccupied, they must try to locate the owner or person in charge to request entry.

Right to Refuse Entry

Property owners or occupants can refuse entry during inspections. Officials must inform them of this right and can only proceed with a search warrant. If entry is denied, the official can seek a warrant from a court to gain access.

Routine Inspections

Routine or area inspections may be conducted based on reasonable criteria. This includes random sampling or inspecting areas with evidence of stormwater contamination, illicit discharges, or similar issues.

Authority to Sample and Establish Sampling Devices (24.20.150)

With the owner’s or occupant’s consent or with a search warrant, authorized officers may set up sampling or metering devices on any property. During inspections, officers can collect samples as needed to support their investigation or document on-site activities.

Notification of Spills (24.20.160)

Facility managers or those responsible for emergency response must train personnel and establish notification procedures. They must ensure immediate notification to the city if pollutants or waste are suspected or actually released and risk entering the storm drain system.

Upon discovering such a release, they must take all necessary steps to contain, clean up, and report it. A written confirmation of the notification must also be sent to the public works director.

Requirement to Test or Monitor (24.20.170)

Authorized enforcement officials may require individuals or facility owners to conduct monitoring, analyses, or reports on stormwater pollution or illicit discharges. These requests must be reasonable regarding the need for monitoring and the benefits gained.

The person or facility must perform the requested tasks and provide the required reports. If the owner or operator fails to comply, the city may conduct the monitoring or analysis itself. The cost of these activities, including administrative fees, will be charged to the property owner.

If the invoice remains unpaid after 60 days, the costs will become a lien on the property. If the lien is not resolved within three months, the property may be sold to recover the costs. This must follow the standard process for selling real estate under execution.

Violations Constituting Misdemeanors (24.20.180)

Violating any provision of this chapter or failing to meet its mandatory requirements is considered a misdemeanor. However, authorized enforcement officers may charge and prosecute such violations as infractions instead.

Penalties (24.20.190)

It is unlawful to violate any part of this chapter. Each day a violation occurs or continues counts as a separate offense. Violations can be charged as either infractions or misdemeanors.

A first violation is treated as an infraction and may result in a fine of up to $100. A second violation is also treated as an infraction, with a fine of up to $200. Finally, a third or additional violation is charged as a misdemeanor, punishable by a fine of up to $1,000, six months in jail, or both.

The first offense may be charged as a misdemeanor at the enforcement officer’s discretion. Paying fines does not remove the requirement to correct the violation.

Acts Potentially Resulting in Violation of the Clean Water Act/Porter-Cologne Act (24.20.210)

Anyone violating this chapter, a permit issued, or causing pollution through waste discharge may also violate the federal Clean Water Act or Porter-Cologne Act. Such violations may result in civil or criminal penalties under these Acts.

Violations Deemed a Public Nuisance (24.20.220)

Nuisance and Abatement

Any violation of this chapter that threatens public health, safety, or welfare may be declared a nuisance. An authorized enforcement officer can abate or restore the property. Alternatively, the city attorney may take civil action to stop the nuisance.

Cost of Abatement

The property owner must pay for the cost of abatement and restoration. These costs become a lien on the property until paid. If unpaid for three months after abatement, the property may be sold to cover the costs, following standard real estate execution procedures.

Seasonal and Recurrent Nuisances

A violation will be abated annually without further hearings if declared a seasonal and recurrent nuisance.

Recovery of Costs

If the city wins an administrative or civil case under this chapter, it will recover investigation costs, administrative fees, hearing expenses, legal fees, and other related costs.

Civil Actions (24.20.240)

The city may enforce this chapter through civil action, with remedies including:

• Injunctions that can be temporary or permanent to stop violations.
• Cost recovery for investigations, legal action, and corrective measures.
• Compensatory damages for harm to water quality, wildlife, and aquatic life.

Cease and Desist Orders (24.20.260)

If an enforcement officer finds a discharge violating this chapter, they may issue a cease-and-desist order. The order may require the person to comply with the rules or follow a compliance schedule immediately. The officer may also direct them to take preventive or corrective actions to stop future violations.

Notice to Clean (24.20.270)

If an enforcement officer finds materials like oil, dirt, weeds, or rubbish that may pollute storm drains, they can issue a removal notice. The property owner must remove these materials as instructed.

The officer may arrange for removal if the owner does not follow the notice. The property owner will be billed for the costs. A lien is placed on the property if the invoice is unpaid after 60 days. If the lien remains unpaid for three months, the property may be sold to recover costs.

Appeal (24.20.300)

Anyone required by an enforcement officer to perform monitoring, reporting, or corrective actions can appeal the decision. Appeals must be submitted in writing to the director within ten days of the decision.

The director will review the enforcement officer’s report and schedule a hearing as soon as possible. During the hearing, the director may consider additional evidence and either reject, affirm, or modify the decision. The director’s ruling is final.

The City of Palm Desert Stormwater Program Annual Inspection

The ordinance requires private stormwater facilities to undergo annual inspection and self-certification. Inspections must follow the specified timeframes, and necessary corrections must be completed within 90 days of the initial inspection. Certification forms, including photographs of stormwater components, are submitted to the city.

• Forms may be mailed to:
  City of Palm Desert
  73510 Fred Waring Drive
  Palm Desert, CA 92260
  
• Alternatively, forms may be emailed to mperry@palmdesert.gov.

The Bottom Line

The City of Palm Desert stormwater ordinance shows the city’s commitment to environmental ethics and public health. By adhering to its provisions, residents, businesses, and developers can help maintain clean waterways, prevent pollution, and promote sustainable practices.

Personalized Property Management offers expert HOA developer services around Southern California. Call us at 760-325-9500 or email us at info@ppminternet.com for more information!

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Trees are a natural part of landscaping and can benefit many communities. However, while they do have advantages, they are also common causes of conflict. For this reason, homeowners ask the question: Who is responsible for tree removal? Should the HOA trim trees regardless of where they are?

HOA Tree Policy: Should an HOA Trim Trees?

Homeowners associations often add landscaping to the common areas to beautify the community. It’s one way they can attract potential buyers and keep property values high. However, HOA tree maintenance is more complicated than it looks.

This is because there are various state laws concerning tree responsibility. Moreover, there are numerous factors to consider when it comes to tree ownership, responsibility, and liability.

Tree Ownership

Who does the tree belong to? Oftentimes, the answer to this question will determine who is responsible for trimming and removing the tree. However, it’s not a question with a straightforward answer. 

Neighbors will often fight over who owns the tree. Some homeowners might think the person responsible is determined by the tree’s roots: where it stands determines who it belongs to. If the tree is on the HOA’s property, the HOA is responsible. Meanwhile, if it’s on a homeowner’s property, the homeowner is responsible.

On the other hand, some homeowners argue that the tree’s base determines ownership. If the base is on one person’s property, then they are responsible for the tree regardless of where the roots and foliage are. Ultimately, ownership determines who is responsible for tree trimming, maintenance, and removal.

State Law

When ownership is unclear, the association can turn to state law to determine ownership. Under California law, the person responsible for the tree depends on where the tree trunk is located. If the tree trunk stands wholly on one land, the person or entity that owns that land owns the tree. This is true regardless of where the roots grow or reach.

Meanwhile, if the tree trunk sits on two properties, then there is shared ownership between those who own either parcel. That said, trees planted in common areas generally belong to the HOA unless the governing documents say otherwise. 

Governing Documents

In some communities, the governing documents specify how the associations and homeowners can remove trees. It may include provisions about protecting property views, planting guidelines, and tree maintenance. 

However, when the governing documents are silent, the board may need to determine ownership and responsibility on a case-to-case basis. The board may decide whether a complaint warrants a tree trimming or not. Homeowners must respect the board’s decision, whatever it may be. 

Reason for Removal

Trees beautify community common areas — that much is true. Nonetheless, they can cause a lot of problems within the community. Here are some reasons why homeowners or HOAs may want to trim or remove a tree:

• Property Damage. The tree’s roots or branches may be encroaching under or through property such as sidewalks, roofs, and sidings. 
• Fallen Leaves. Homeowners may complain about too many fallen leaves and branches littering their yards and driveways.
• Disease. Some trees may contract diseases over time, making them risky to keep around. Over time, they might cause accidents or damage nearby property.
• Safety Concerns. Overgrown limbs, possible injuries from falling, and other tree liabilities may exist. Homeowners may want to cut a tree down to minimize safety issues.
• Privacy. Neighbors and strangers may use trees to sneak a peek into private property. This raises safety concerns and breaches people’s personal privacy.
• View Conservation. An overgrown tree may eventually block a homeowner’s view from their front porch, balcony, or windows. 
• Messy. An overgrown and unmaintained tree may be overly messy. The tree may become more detrimental than helpful to the community’s overall aesthetic appeal.
• Maintenance Issues. Large trees may be difficult for the HOA or homeowner to maintain. They may ask to remove the tree to reduce their maintenance responsibilities.

Regardless of the reason, determining who is responsible for removing or trimming a tree may depend on who caused the issue. For example, let’s say a tree that belongs to the HOA has fallen and damaged homeowner property. If the tree fell due to the board’s negligence, the HOA may be held liable for the damages.

Are Trees Part of the Architectural Guidelines?

Homeowners associations often provide architectural guidelines to regulate what homeowners can and cannot do with their property. Often, the architectural standards include landscaping and greenery. 

Some communities even impose maintenance requirements that force homeowners to mow their lawns regularly, maintain exterior paint, or keep fences clean. They do this to maintain curb appeal and preserve property values.

It’s no surprise that HOA trees may sometimes be covered within architectural guidelines. Homeowners associations may include the homeowners’ responsibilities when it comes to tree trimming, removal, and maintenance. 

What to Include in an HOA Tree Policy

Should an HOA trim a tree? How can the board determine responsibility? If the governing documents are silent, it may be wise to amend them or create a separate tree policy for homeowners to follow. A dedicated tree policy can help clear misunderstandings and disputes that may arise from overgrown, messy, or diseased trees. Here are some guidelines to consider.

1. View Conservation

HOAs can add a policy protecting homeowners’ views from their homes. Homeowners who want to plant a new tree must ensure the tree will not block anyone’s view when fully grown. The HOA may even require homeowners to consult with a landscaping company before they can plant any trees to conserve people’s views. 

2. Maintenance

The tree policy should define who is responsible for maintaining the trees. As always, make sure to refer to state regulations and local ordinances before indicating maintenance responsibilities.

The policy should also include what type of maintenance is necessary. For example, the HOA may require pruning, branch trimming, health inspections, fertilizing, and pest control. The policy may also set standards for tree trimming and specify how often the trees must be maintained.

3. Valid Reasons for Tree Removal

Trees are an asset for homeowners associations so they should not be removed without cause. The policy should outline valid reasons for removal like structural risks, safety hazards, property damage, and disease.

In addition, the HOA may adopt a formal tree removal process. Homeowners will need to submit a formal request to the HOA to authorize the removal. The process may include a board evaluation, a professional inspection, and obtaining permits from municipal authorities. 

Finally, the policy may indicate who is responsible for shouldering the cost. This clarifies financial responsibilities and forces the homeowners to think carefully before asking for a removal.

4. Liability for Damages

It’s not always clear who is responsible for damages when a tree falls because of natural causes. Make sure to include a clause that specifies who is responsible and how the property damage should be handled. 

It may also be helpful to address encroachments from tree limbs and roots on neighboring property. The HOA should outline how to resolve the dispute. Homeowners associations may mediate disputes themselves or ask for professional assistance. 

5. Emergency Procedures

The HOA may dictate emergency procedures if a tree poses an imminent threat to property or life. Homeowner associations may provide a reporting process for how the HOA will approve the request. Moreover, the policy can indicate who will bear the cost if emergency tree removal is necessary.

6. Insurance Requirements

HOAs may include insurance requirements regarding tree removal and damage. It’s also important to review local laws to verify whether homeowners or HOAs need insurance coverage to plant or remove trees. 

7. Violations and Fines

HOAs may include consequences for violating the community’s tree policy. The HOA may impose fines, restitutions, and suspension of rights and privileges. Moreover, the board may outline how they will ensure compliance and what process they will take to enfroce the rules.

8. Tree Planting Guidelines

HOAs may implement tree planting guidelines to regulate where and when homeowners may plant trees. They may also require homeowners to ask for permission before they can plant any trees in their yard. 

Tree planting guidelines may also indicate what species of trees are allowed (or disallowed) within the neighborhood. This is important because certain tree species may be considered invasive or problematic overall.  For instance, catalpa trees may have brittle wood and spread seeds everywhere. Meanwhile, Ailanthus trees are often short-lived and considered invasive.

In addition, homeowners may be required to hire HOA contractors with proper certification before they can begin work. They may need accreditation from certain institutions such as the Tree Care Industry Association.

Consult a Professional

Should the HOA trim trees? It depends on state law and the governing documents. Homeowners associations may or may not have the right to trim or remove trees in the HOA. Regardless, it’s best to consult a professional before taking action or creating tree policies to avoid liability. 

Personalized Property Management provides various HOA management services to Southern California communities. Call us now at 760-325-9500 or visit our website to learn more!

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Many HOAs choose to hire professional management companies and HOA managers to conduct operations. However, while hiring a professional may help, it’s still important to reassess and re-evaluate the manager’s work periodically to ensure they’re a good fit. Is the property manager doing a good job? When is it time to replace them?

Is the Property Manager Doing a Good Job? 12 Signs

What are the signs of an HOA manager doing well? Here are some tell-tale signs they’re a right fit for the community. 

1. Good Leadership

Is the property manager doing a good job? One of the ways you can tell is by assessing their leadership skills. Are they able to lead meetings and the community residents? Do the people listen to them or ignore their input?

Property managers should be able to voice their opinions without being easily influenced. On the flip side, while a good leader must be firm, they should also be understanding and diplomatic. The property manager should be able to listen to others’ opinions and respond constructively. 

2. Effective Conflict Resolution

Good property managers must be calm and professional during conflict. Some residents will resort to screaming, taunting, and name-calling. Good property managers will not show they’re frustrated or hurt by the people’s words. Otherwise, they might only intensify the conflict. 

Instead, they must remain calm and professional even when the conversations are getting heated. A good property manager can handle tense circumstances with ease and de-escalate the situation. 

3. Open Communication

A good property manager is quick to respond and easily reachable. After all, board members should be able to contact them in an emergency situation. The manager can then provide valuable insight to the board and help them overcome challenges. 

Good property managers also facilitate open communication within the HOA. They should be able to hear out resident concerns and relay them to the board. On the flip side, they should also be able to communicate the board’s actions, decisions, and announcements to the community. This eliminates conflict and confusion arising from miscommunication. 

4. Smooth Vendor Relationship Management

Working with vendors is a big part of community management. An efficient property manager will be able to effectively collaborate with vendors without much trouble. They should be able to execute contracts and fulfill projects on time.

The property manager should also be able to handle unforeseen circumstances and obstacles. They should be able to negotiate with vendors regarding the price, timeframe, and scope of work. Good project managers have general contractor knowledge and know what’s involved in various HOA projects.

5. Regular Maintenance

One of the most important jobs of an HOA is maintaining the common areas. If the common elements are well-kept and repairs are completed in a timely manner, then it’s a sign the property manager is doing well. 

In addition, a good property manager will plan ahead for long-term maintenance issues. They should be able to advise the board when an upcoming major repair is about to happen. Plus, they should help the board plan how to use the reserves to keep the HOA financially stable while fulfilling its maintenance obligations. 

6. Legal Compliance

Federal and state laws related to homeowners associations and community management are complex. Effective property managers will help the board remain legally compliant and update them on all the new regulations. 

For instance, the new Corporate Transparency Act recently became effective beginning 2024. It requires HOAs to file beneficial ownership information with FinCEN. The HOA manger should be aware of the new law. They should guide the board on what, when, and how to file the information.

7. Proper Rule Enforcement

While a property manager may not be able to eliminate violations entirely, they can help the board enforce the rules more efficiently. A good property manager helps the board send violation notices, inspect the community for breaches, and coordinate with homeowners regarding fines and penalties.

In addition, they should be able to help the board create new policies and fine schedules. This allows the board to stay consistently enforce the rules. It allows them to remain fair and protects them from liability. 

8. Effective Board Meetings 

HOA board meetings are where the board members get things done. A good property manager will help the board schedule and facilitate meetings. They should help them create an agenda, stay on track during meetings, and even provide insight should they ever hit a roadblock. 

In addition, the meetings should always be well-organized. A good manager will help with meeting notices, recording the minutes, and carrying out actions after the meeting. 

9. Transparent and Efficient Financial Management

Financial management is one of the biggest reasons why HOAs hire community managers. Hence, it’s a good test to see whether the property manager is doing their job properly. If so, the community’s financial statements and accounting records should be well-organized and accurate.

They should also be able to help the board create a budget that’s fairly precise. This way, the board will not have to deal as much with overspending the funds. Moreover, the property manager should have decent accounting experience or knowledge, allowing them to spot inconsistencies, fund mismanagement, and fraud. 

10. Keeps Things Confidential

HOA managers should be communicative. However, this does not mean they should tell all the community members about everything that happens behind the scenes. Good property managers should be able to keep certain things confidential.

For example, they should keep quiet when there’s an incident involving the HOA’s staff. They should also refrain from talking about delinquent accounts, resident health conditions, and anything under attorney-client privilege. 

11. Streamlined Operations

An effective HOA manager should be able to streamline the HOA’s operations. They should introduce helpful software that can speed up a lot of the board’s tasks. Furthermore, they should be able to implement systems that allow the staff to get things done more efficiently. 

12. Long-Term Planning

A property manager should help the board plan the community’s long-term goals. For example, if the HOA wants to build a new facility, the manager should help the board address obstacles and concerns such as funding, vendor bids, and timeline projections. 

In addition, they should help the board conduct reserve studies and plan future assessment increases. They should also be able to directly tell the board whether or not they think the new project will benefit or harm the community — and what alternatives are available. 

When is it Time to Replace the Property Manager?

Is the property manager doing a good job? If the answer is no, then it may be time for a replacement. But how can you tell between an honest mistake and a sign of incompetence or negligence? Here are some signs to watch out for that might signal it’s time to replace the property manager.

1. Lack of Communication

Communication is key in HOA management. If the manager is unresponsive and replies late, they may not be able to handle community matters or emergencies well. 

2. Financial Mismanagement

Poor or inaccurate budgets can compromise the community’s financial stability and ultimately lead to debt. If the HOA constantly misses its budgetary or financial targets, it may be a sign to switch HOA managers. The board should also watch out for other signs of mismanagement, such as delayed vendor payments, late financial statements, financial discrepancies, lack of reserves, or unclear financial reporting.

3. Neglected Maintenance

Bad HOA managers might neglect maintenance. When you notice the landscaping, common areas, or amenities are unclean and poorly maintained, then it might be a sign the HOA manager needs to go.

4. Ineffective Enforcement

Signs of inconsistent enforcement or failure to enforce the rules should be red flags. The board should consider replacing the manager to avoid breaching their fiduciary duty or being held liable for selective enforcement.

5. Frequent Vendor Mishaps

The HOA manager should be able to handle vendor relationships well. If projects are delayed or yield substandard work, then the HOA manager may not be doing their job well. Another sign of mismanagement is when the HOA pays too much for unsatisfactory work.

6. Failure to Comply With Regulations

HOA managers should keep the board updated on new laws and regulations. If the community fails to comply, the HOA manager may be at fault for not informing the board. This puts the community at risk of penalties, fines, and even lawsuits.

7. Poor Resident Relationships

No matter how good a property manager is at their job, they might not be worth keeping if they have poor relationships with the residents. Keeping them on board might only cause conflict, compromising the community’s peace and harmony.

Prioritize Good Management

The HOA board hires professional managers and management companies for a reason. If it turns out that the property manager isn’t doing their job well, then the HOA might just be wasting its money. Make sure to watch out for inefficiencies or mismanagement so you can replace the property manager before they cause more problems.

Personalized Property Management offers premier management services to Southern California communities. Call us now at 760-325-9500 or contact us online to learn more!

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Planned communities offer many benefits, like garbage disposal and snow removal. However, while these services may be basic in most communities, HOA security is not always a given. What are the HOA’s responsibilities when it comes to security? Are they liable for the homeowners’ safety?

Is HOA Responsible for Security?

Many homeowners and potential residents ask about HOA security responsibilities. They may assume that an HOA oversees everything related to community living, including security and safety. However, an HOA’s security responsibilities are not as clear-cut as common area maintenance. 

In most cases, homeowners associations are in charge of repairing and maintaining the common elements, including any security cameras or gates that might be on the premises. However, their scope of responsibility depends on the governing documents, which will dictate whether or not the HOA must provide the residents with a safe and secure environment.

Some communities are proactive about HOA security. The board takes extra precautions and installs fences, gates, and CCTV cameras. They may even hire security personnel. Meanwhile, other HOAs take a more relaxed approach. These HOAs may leave security issues in the hands of homeowners themselves.

Is the HOA Liable for Security Issues?

Homeowners associations are not entirely liable for security. They may only be held accountable if they do not take appropriate or timely action to resolve general safety concerns that result in damages to a resident or their property. For instance, the HOA may be liable for not installing ample lighting in common areas to prevent accidents and deter crime.

In addition, the board should never make statements that the homeowners can interpret as promises to keep them safe. Otherwise, they could be held liable for security breaches. The board should also encourage residents to be proactive about maintaining their own security. 

Adding a security disclaimer in the HOA’s membership mailings and newsletters may also be wise. This will remind them that the HOA cannot guarantee the people’s safety and security. The residents should not rely on the association to protect them.

What can the HOA do to Increase HOA Security? 

While the HOA is not always responsible for security, it can still take measures to enhance security within the community. Here are some ways the HOA can increase security and prevent crime within the neighborhood. 

1. Conduct a Security Assessment

Homeowners associations should be aware of potential vulnerabilities around the area. They may conduct an assessment by hiring HOA security companies to inspect the premises. The inspectors will then check all the entry and exit points within the community and help identify threats. They may also offer possible solutions with their expected costs.

Security assessments may cost anywhere from $1,500 to $5,000. The HOA may also need to pay additional fees to cover the cost of labor and equipment usage. Nonetheless, they are a good investment if the HOA wants to increase its security.

2. Install Enough Lighting in Shared Spaces

The HOA has jurisdiction over shared spaces like roads, walkways, parking lots, and recreational areas. Hence, it is in charge of installing and maintaining ample lighting in these spaces. Ample lighting might not seem like a big deal, but it significantly deter crime. After all, criminals are more likely to act in dark places where they cannot get caught.

If the HOA wants to cut costs, the board may also install motion-activated lights to save energy. This allows the community to remain well-lit and save money on electricity bills. 

3. Check All Security Measures

Homeowners associations with built-in security measures such as cameras and fences must ensure they’re properly installed and that these measures are doing their job properly. For instance, if an HOA has a security fence, it should ensure it is at least four feet tall to prevent people from entering. 

4. Create a Safety Committee or Neighborhood Watch

The HOA may form a neighborhood watch or Safety and Security Committee to monitor the association’s security measures. The committee may discuss and spearhead potential security plans and solutions with the board. 

Meanwhile, the neighborhood watch volunteers can regularly patrol the neighborhood to prevent crime. It makes the residents feel safer knowing that fellow community members are actively looking out for them. 

5. Keep Open Lines of Communication

HOAs should keep communication lines open at all times and ensure the residents have someone to call in case of an emergency. This way, the HOA and local law enforcement can quickly act whenever something happens.

The HOA should also encourage residents to voice their concerns. Everyone should be heard when it comes to security and safety. Don’t dismiss someone’s suspicions and make sure to investigate properly. 

6. Schedule Regular Maintenance

The board should schedule regular maintenance for any security systems the HOA has installed. This way, the HOA will not be held liable should there be any burglaries, property damage, or incidents in the neighborhood.

The association may need to work with a community management service provider familiar with the HOA’s security systems. They can also choose to work with the original manufacturer to set up maintenance plans. 

7. Install Security Cameras

Security cameras are great at deterring crime and catching culprits. However, they will be useless if the HOA does not put them in the right places. Ensure to install the cameras in strategic locations such as entry and exit points, around common areas, neighborhood streets, and near vulnerable spots. 

In addition, cameras will need regular monitoring to be effective. Consider hiring an HOA security guard who can monitor the cameras. They can alert local law enforcement right away should anything happen. The community should also have a good HOA access control system so only select individuals can access the footage.

8. Use Landscaping to Your Advantage

Landscaping can play a big role in HOA security. It can either prevent or encourage crime in the neighborhood. For example, overgrown vegetation can serve as a place for criminals to hide. Meanwhile, long and low-hanging tree branches allow criminals to climb up and into second-story windows and balconies. 

HOAs should prioritize landscaping and keep vulnerabilities in check. Hire a landscaper to trim trees, shrubs, and grass regularly. HOAs can also use the landscaping to their advantage. For example, planting thorny bushes around the HOA can discourage criminals from entering or using them as hiding places. They can serve as natural barriers to the outside world. 

9. Educate the Members

HOA security services can only do so much to protect the residents. The members should not rely solely on the HOA to protect them from harm. They should be proactive and employ safety measures on their own.

The HOA can help the homeowners by educating them on safety protocols. Remind them to install carbon monoxide detectors, take inventory of personal possessions, and leave lights on to deter intruders. They should also be aware of who they should contact when incidents occur or if they spot suspicious activity. 

10. Work With the Police

HOAs may partner with local police to prevent crime in the neighborhood. The board can invite them to meetings, ask them to conduct workshops, and even ask them if they can help with neighborhood patrol. 

11. Hire HOA Security Services

Professional security companies offer many benefits to HOA communities. If the HOA budget allows, consider hiring security guards and professional security personnel to protect the residents. They often have more experience preventing crime and know what to do when incidents occur.

However, hire an independent company with no relation to the community. It’s usually not wise to hire a company if a board member has a financial interest in it. This is because the HOA may be exposed to more liability. 

In addition, it may be best to hire unarmed security guards instead of armed ones. The use of firearms and weapons can create legal trouble for the HOA. Misuse, mishandling, and accidents do occur. The residents might file a lawsuit against the HOA without injuries or damages. 

What can Homeowners do to Increase Security?

Homeowners should take a proactive approach to HOA security. The HOA may be unable to protect them from all harm and property damage. Hence, they should take measures to keep themselves and their homes safe. Here are some ideas to consider.

• Lock the Doors. Homeowners should keep their doors locked to prevent anyone from entering without permission.
• Refuse to Open Doors to Strangers. Homeowners should not let strangers inside their homes.
• Ask Service Workers for Identification. Homeowners should ask for a service worker’s ID to ensure they are legitimate workers and not potential scammers or thieves. 
• Purchase Insurance. Residents may purchase homeowners insurance policies with break-in, theft, and dwelling coverage. 
• Install CCTVs. Members may consider installing security cameras around their perimeter to deter crime and prevent break-ins.
• Take Precautions When Traveling. Homeowners who travel often may install automatic lights that open and close at certain times, even when they are away. This prevents others from thinking nobody is home and deters potential thieves. 

Enhancing Safety

HOA security should be a top priority in many communities. While the HOA is not always responsible for the people’s safety, the board may still ensure the neighborhood is generally safe. Doing so helps achieve the HOA’s goal of preserving property values. 

Personalized Property Management offers expert management services to HOAs in Southern California. Call us today at 760-325-9500 or contact us online for more details!

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Several potential legal issues exist in HOAs. Board members must familiarize themselves with these issues and understand how to tackle them. This approach allows the board to prevent litigation and protect harmony within the community.

Common Legal Issues of HOAs and How to Deal With Them

Homeowners associations play an important role in managing and maintaining community standards. While board members have good intentions, legal issues can still arise. These issues can create friction and lead to costly disputes. As such, HOA boards and homeowners must know the potential legal problems to address them promptly and appropriately.

Here are the potential legal actions against HOAs and how to handle them.

1. Misappropriation of Funds

One of the most serious legal issues of HOAs is the misappropriation of funds. HOA boards are entrusted with managing community funds, which include homeowner dues and assessments. These funds should go to maintenance, repairs, and other community expenses. However, board members’ financial mismanagement or outright theft can lead to serious legal consequences.

Transparency and accountability are key to avoiding misappropriation of funds. Boards should implement strict financial controls, conduct regular audits, and provide homeowners with clear financial reports. 

Additionally, the board should require multiple signatories for large expenditures. This can help prevent misuse of funds. Homeowners also have the right to request financial documents. As such, HOAs should be ready to comply with such requests to demonstrate responsible handling of funds.

2. Rejection of Architectural Requests

HOAs often have rules regarding architectural changes to homes, such as painting, landscaping, or structural modifications. Associations usually require owners to submit architectural requests for approval before making any changes. However, disputes can arise when the board rejects these requests.

When rejecting an architectural request, the HOA must ensure the decision is based on the community’s established rules and guidelines. The board should clearly communicate the reasons for rejection and guide how the homeowner can resubmit their request to comply with the rules. 

HOAs must consistently apply their architectural guidelines and avoid favoritism. Failure to do so could result in accusations of bias or unfair treatment, leading to potential legal action.

3. Dispute Over Board Decisions

Disputes between the board and homeowners are not uncommon in HOAs. Homeowners may disagree with certain board decisions, such as raising dues, implementing new rules, or allocating funds. These disagreements can escalate into legal battles.

To prevent disputes, board members should communicate openly with homeowners and explain the rationale behind their decisions. Transparency in the decision-making process fosters trust and can help reduce conflict. In cases where disputes do arise, practicing dispute resolution can greatly reduce litigation.

4. Violations

Homeowners may violate HOA rules intentionally or unintentionally, leading to fines, penalties, or legal action. Common violations include failing to maintain property, parking infractions, or having unapproved modifications.

HOAs need to have a transparent and fair enforcement process in place. This includes sending warning notices and giving homeowners reasonable time to correct the violation. Legal issues often arise when an HOA fails to follow due process or enforcement is inconsistent. 

Additionally, the board should impose reasonable fines in line with the governing documents. If a homeowner feels their penalty is unfair, they may seek legal recourse.

5. Failure to Maintain Common Areas

Associations are responsible for maintaining common areas such as parks, pools, and clubhouses. If the board neglects this duty, it can lead to complaints and even legal claims from homeowners. Failing to maintain common areas can decrease property values and lead to dangerous conditions, possibly resulting in personal injury claims.

Boards should regularly inspect common areas, keep up with necessary repairs, and set aside sufficient reserves for future maintenance. Homeowners have the right to expect that their dues go towards the upkeep of shared spaces. If the board neglects this responsibility, legal battles can ensue.

6. Discrimination

Discrimination is a serious legal issue that can arise if an HOA is perceived to be treating certain homeowners unfairly based on protected characteristics such as race, religion, gender, or disability. The Fair Housing Act prohibits discrimination in housing, and HOAs must exercise caution to apply their rules and regulations evenly to all residents.

To avoid discrimination claims, HOAs should base all decisions on clear, non-discriminatory reasons. It must adhere to federal and state housing laws. Board members should also receive training on fair housing practices. A homeowner filing a discrimination claim can lead to a lawsuit. This, in turn, can tarnish the HOA’s reputation and result in financial penalties.

7. Failure to Comply With a Request

Homeowners have a right to request certain documents and information from their HOA. These include financial records, meeting minutes, and governing documents. In some cases, HOAs may fail to comply with these requests by delaying their response or outright refusing to provide the documents.

State laws usually dictate what documents HOAs must disclose and the timeframe. To avoid legal issues, HOAs should have a clear process for handling requests and ensure that they comply with relevant laws. Failing to provide the requested information can lead to legal action, especially if homeowners suspect the board is hiding something.

8. Pet Issues

Pets can be a source of legal trouble in HOA communities. While many HOAs have rules governing pet ownership, such as breed restrictions or limits on the number of pets, enforcing these rules can lead to disputes. Homeowners may feel that the HOA is overstepping its authority, especially if they believe their pet poses no harm to the community.

HOAs should ensure that pet rules are reasonable and clearly outlined in the governing documents to prevent legal issues. The board should follow the proper enforcement procedures if a homeowner violates these rules. 

Additionally, it’s important to be mindful of disability laws, as some residents may have service animals or emotional support animals that are protected by the law. Associations must exercise caution not to discriminate against these homeowners.

9. Personal Injury

Personal injury claims can arise when homeowners or guests hurt themselves on HOA property. Common areas, such as sidewalks, playgrounds, and pools, must receive proper maintenance to avoid accidents. If a person suffers from an injury due to negligence on the part of the HOA, the association could be held liable for damages.

HOAs should conduct regular safety inspections of common areas to mitigate the risk of personal injury claims and promptly address any hazards. It’s also essential for HOAs to carry sufficient liability insurance to cover any potential claims. 

Furthermore, the board should encourage owners to report any dangerous conditions. This way, the board can address them before an injury occurs.

Undergoing Dispute Resolution Before Litigation

Legal issues in homeowner associations can lead to lawsuits and legal damages. Due to the time-consuming and expensive nature of these suits, it’s best to prevent them by resolving disputes.

In some states, HOAs must utilize alternative dispute resolution (ADR) before pursuing litigation. California is one such state. According to Civil Code Section 5930, parties must endeavor to go through ADR before filing an enforcement action in the superior court. 

ADR options include mediation and arbitration. In mediation, a third-party neutral helps parties reach a mutually acceptable resolution. However, the parties do not have to agree to the settlement. 

On the other hand, in arbitration, a third-party neutral decides the outcome of the dispute after reviewing the facts and listening to all parties. Unlike in mediation, arbitration requires all parties to agree to and adhere to the arbitrator’s decision.

The Importance of an HOA Attorney

Homeowners associations would benefit from hiring the assistance of an attorney. An attorney, particularly one with experience in dealing with HOAs, can advise the board on legal matters and help the association avoid litigation. An attorney can also assist the board in amending the governing documents to ensure federal and state laws compliance.

Additionally, an attorney can aid the board with conflict resolution and assess the HOA’s exposure to risk. Should disputes escalate and become litigation, an attorney can act as the HOA’s legal representative.

Of course, attorneys charge fees for their services, so the board should account for such legal fees in the annual budget. However, attorneys play a crucial role in protecting associations from liability. As such, the benefits they bring to the table certainly outweigh the costs of their services.

The Bottom Line

While the above legal issues of HOAs are perhaps the most common, other legal problems can still arise. Board members should implement clear processes, maintain open communication, and adhere to state laws and governing documents to minimize the risk of legal disputes.

Personalized Property Management offers HOA management services, including legal assistance, around Southern California. Call us at 760-325-9500 or email us at info@ppminternet.com for more information!

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