Tag: homeowners association

The ABC’s of IDR & ADR

ADRDisputes between owners and associations can easily spin out of control. When those disputes result in a lawsuit, the costs, both in terms of time and money, can be significant. That is why attorneys often encourage parties to first meet and try to resolve those issues through some form of dispute resolution process before a lawsuit is filed. In fact, the law often requires that parties at least offer to meet in some form of alternative dispute resolution setting before they file a lawsuit, or they may lose the right to recover attorney’s fees even if they win the suit.

California’s Davis-Stirling Act contains several sections that address, and sometimes require, the use of the dispute resolution process before litigation can be filed. The statutory process includes (1) Internal Dispute Resolution and (2) Alternative Dispute Resolution.

Internal Dispute Resolution or “IDR” is an informal process where one or two representatives of the association (typically a board member and the association’s community manager) meet with the owner of the property at issue and try to resolve the issue informally. Civil Code section 5905 requires that associations provide a “fair, reasonable, and expeditious procedure for resolving a dispute” with members.

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LEGISLATIVE ALERT – Governor Brown signs AB 596

131754-gov-jerry-brown_1Governor Brown has signed AB 596 which, beginning July 1, 2016, requires the annual budget report of a condominium project to also include a separate statement describing the status of the association as a Federal Housing Administration (FHA) approved condominium project and as a federal Department of Veterans Affairs (VA) approved condominium project.
The statement as to the FHA certification status of the association must be in at least 10-point font on a separate piece of paper and in the following form:
“Certification by the Federal Housing Administration may provide benefits to members of an association, including an improvement in an owner’s ability to refinance a mortgage or obtain secondary financing and an increase in the pool of potential buyers of the separate interest.
This common interest development [is/is not (circle one)] a condominium project. The association of this common interest development [is/is not (circle one)] certified by the Federal Housing Administration.”
Similarly, the statement on the VA certification status of the association must also be in at least a 10 point font, on a separate piece of paper and in the following form:
“Certification by the federal Department of Veterans Affairs may provide benefits to members of an association, including an improvement in an owner’s ability to refinance a mortgage or obtain secondary financing and an increase in the pool of potential buyers of the separate interest.
This common interest development [is/is not (circle one)] a condominium project. The association of this common interest development [is/is not (circle one)] certified by the federal Department of Veterans Affairs.”
There is no requirement that the disclosure document be revised mid-year should the association’s certification status change. However, as part of the disclosure form, associations should consider including a statement indicating the date as of which the status identified on the form is accurate, and including information on the form that those interested can obtain the most currently available information by
checking the association’s certification status on-line at the FHA and VA websites.
FHA status can be checked online at U.S. Department of Housing and Urban Development website, or:
VA status can be checked at the Department of Veterans Affairs web site or:

California Regulations Mandate Stricter Maintenance Requirements for Community Association Pools

HOA PoolThis article was published in the CAI Orange County Regional Chapter’s OC View Magazine. Click Here to view the published version.

Community pools provide welcome relief from summer heat. They also impose certain obligations on operators of those pools, including community associations. Recent regulations adopted by the California Department of Health define “public pools” to include pools maintained by community associations. The most dramatic changes are set forth in Title 22 of the California Code of Regulations (the “Regulations”) which were amended effective January of 2015. Others are contained in the California Building Code contained in the California Code of Regulations, Title 24, which also were amended, effective January 2014. Associations should know that local health agencies are starting the process of enforcing these new standards. Because some of these changes significantly impact the way associations must service, monitor, and track activity at community pools, associations would be well-advised to note the requirements and implement any necessary changes to ensure compliance now and down the road.

Specifically, there are several amendments to the Regulations that affect association management of community pools, including (1) new parameters for water characteristics; (2) strict daily monitoring of public pool facilities and requirements for written records; (3) enforcement of specific safety and first aid equipment; (4) requirements that a public pool have at least one keyless exit and self-closing latches; and (5) imposition of health restrictions for employees or pool users.

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