California HOA's Have A NEW Agenda Law!!!

California has amended Civil Code Section 1363.05 to include a new agenda provision. The recently signed amendment to the Common Interest Development Open Meeting Act requires among other things that a Board cannot "discuss or take action on any item at a non-emergency meeting unless the item was placed on the agenda included in the notice that was posted and distributed pursuant to subdivision(f)." 1363.05(i)(1). Subdivision (f) covers the notice requirements for Board meetings.

It is clear that this new rule does not apply to emergency meetings. The statute provides the following as to what is generally required for an emergency meeting "[a]n emergency situation exists if there are circumstances that could not have been reasonably foreseen by the board, that require immediate attention and possible action by the board, and that, of necessity, make it impracticable to provide notice." Civil Code 1363.05(4)(i).

So, what does all this mean? It means that members of the Board should become familiar with the new agenda law and implement it ASAP. There are other exceptions to the agenda meeting notice law that should be addressed with either legal counsel or board members to ensure compliance with the new rule.

Homeowners Association (HOA) Attorney
Note: The information contained is not legal advice and does not establish an attorney-client relationship. Contact us via email Ryan.McClure.Esq@gmail.com, website: http://www.rpmcclurelaw.com/, or call us at 951.818.0687

Delinquent Assessment Late Charges & Interest

Question:" What are the consequences associated with the paying or receiving a community assessment late?"

First, an assessment is delinquent 15 days after it becomes due unless the governing documents of the community state otherwise. Civil Code § 1366(e). So boards and homeowners when confronted with this issue should first consult the communities governing documents. Second, once the assessment is deemed delinquent the the association can recover and the homeowner must pay the following;

(1) Reasonable costs incurred in collecting the delinquent assessment, including reasonable attorney's fees.

(2) A late charge not exceeding 10 percent of the delinquent assessment or ten dollars ($10), whichever is greater, unless the declaration specifies a late charge in a smaller amount, in which case any late charge imposed shall not exceed the amount specified in the declaration.

(3) Interest on all sums imposed in accordance with this section, including the delinquent assessments, reasonable fees and costs of collection, and reasonable attorney's fees, at an annual interest rate not to exceed 12 percent, commencing 30 days after the assessment becomes due, unless the declaration specifies the recovery of interest at a rate of a lesser amount, in which case the lesser rate of interest shall apply.

Note: The information contained is not legal advice and does not establish an attorney-client relationship. Contact us via email Ryan.McClure.Esq@gmail.com, website: http://www.rpmcclurelaw.com/, or call us at 951.818.0687