Home Checklists

Architectural Review Committee Checklist

Architectural Review Committee Checklist

 Look to the governing documents:

  • Do they call for an architectural review committee (ARC)? What authority and/or restrictions to its authority apply?
  • Would the improvement, if approved, violate the governing documents? Does the ARC have the authority to approve the variance?

Follow all procedural steps:

  • Has the architectural application been submitted in its entirety?
  •  
    • Is there an official architectural application form that owners must submit? What information must be included?
    •  
    • Practice Tip: Mark all pages of an application (e.g., “1 of 6”) to ensure complete application is reviewed and saved together.
    •  
    • The complete copy of the application should be kept in the Association’s records.
  • What deadlines for approving/denying architectural applications exist in the governing documents and in the Civil Code?
  •  
      • If the deadline passes, is the application deemed automatically approved? Look to CC&Rs and Civil Code.
      •  
        • For example, under Civil Code §4745(e), applications for the installation of electric vehicle charging stations must be deemed approved unless denied in writing within sixty (60) days of submission.
        •  
        • Practice Tip: Calendar all automatic approval dates.
      • Procedure for making decision must be fair, reasonable, and expeditious. (Civil Code §4765 (a)(1))
      •  
      • Decision must be in writing (Civil code §4765 (a)(4))
      •  
        • Denial must explain why application was denied and provide owner with notice of right to appeal

Standards for Review:

  • Follow Guidelines.
  •  
      • Are they well written? Are they consistent with CC&Rs? If not, revise.
      •  
      • Criteria in guidelines may be subjective.
      •  
      • Decision making should not be arbitrary.
        •  
        • If certain improvements have been allowed in the past, applications for similar improvements should only be rejected if there is a tangible reason (i.e., different or changed circumstances).
Click here to download checklist in PDF

Get legal updates straight to your inbox.

Our newsletters highlight community association best practices, new developments in the laws affecting associations, and sheds light on topics of concern and relevance to those involved in association management.

Sign up

Issues for Inspectors of Election Checklist

Issues for Inspectors of Election to Consider
(Checklist)

1. Front of envelope – not signed in upper left corner

         Accept            Reject

2. Front of envelope – signed but other identifying information not filled in

         Accept            Reject

3. Front of envelope -ballot voted by proxy, but envelope not signed by proxy holder (owner’s signature or no signature)

         Accept            Reject

4. Front of envelope – no identifying information or signature

         Accept            Reject

5. Front of envelope – name is different than the name on Association’s owners list

         Accept            Reject           Female and first name is the same
                                                       (possible change in marital status)

         Accept            Reject           Unit owned by corporation

         Accept            Reject           Unit owned by trust (trustee)

         Accept            Reject           Alleged Power of Attorney

         Accept            Reject           None of the above – name just does not match

6. Outer envelope has been opened

         Accept            Reject           Apparently opened after receipt by
                                                       management/Inspectors of Election

         Accept            Reject           Apparently just not sealed by voting owner

7. Outer envelope sealed, but inner envelope not sealed

         Accept            Reject

8. Some form of ballot other than Official Ballot put into double envelopes (e.g., directions to proxy holder, handwritten ballot, other) [1]

         Accept            Reject

9. Ballots received not in double envelope system – only in one envelope

         Accept            Reject           Placed only in outer envelope

         Accept            Reject           Placed only in inner envelope

10. Validity of ballot if placed in ballot box but not in envelope(s)

  1. Accept            Reject           Signed (or identity of voter can be determined)
  2. Accept            Reject           Unsigned (identity of voter cannot be determined)

11. Ballot delivered to other than the meeting or the officially designated location on envelope

         Accept            Reject

12. Two ballots received from same unit

         Accept            Reject           Earliest dated / First received

         Accept            Reject           Owner vote over proxy holder vote

13. Ballots received after official close of the polls

         Accept            Reject

14. Validity of ballot if faxed

         Accept            Reject

15. If owner wants to revoke original ballot and re-vote, can they revoke ballot already cast?[2]

         Accept            Reject           Allow Revocation and re-vote

         Accept            Reject           Disallow revocation and re-vote

If allowed to re-vote, what is the latest point in time when this can occur?

                                                                                                                     

16. When will polls officially close? (If not previously determined)

                                                                                                                    

ELECTRONIC VOTING (IF PERMITTED IN ELECTION RULES AND USED)

17. Opt-In and/or Opt-Out Received

         Accept            Reject

18. Ballot received

         Accept            Reject  

19. Required Features of Balloting System

Electronic system includes voter identity authentication

         Yes            No

 

System check conducted 30 days before election

         Yes            No

 

Confirmation of vote sent to owner

         Yes            No

 

Maintain secure records of electronic ballots until election challenge period ends

         Yes            No

 

All electronic vote tallies remain confidential until counted publicly at an open meeting

         Yes            No

PROXY ISSUES (IF USED)

20. Front of envelope – ballot voted by proxy, but not signed by proxy holder (owner’s signature or no signature)

         Accept            Reject

21. Validity/priority if two proxies received from same unit

         Accept            Reject           Earliest Dated

         Accept            Reject           Latest Dated

Date:                                                                                                                            
                                                          Inspector of Election

Date:                                                                                                                                                                                                                           Inspector of Election

Date:                                                                                                                                                                                                                           Inspector of Election

Click here to download checklist in PDF

[1] The Association’s election rules may prohibit counting unofficial ballots. Please confirm with Association’s election rules.

[2] The Association’s election rules may prohibit revoking or changing an original ballot. Please confirm with Association’s election rules.

Get legal updates straight to your inbox.

Our newsletters highlight community association best practices, new developments in the laws affecting associations, and sheds light on topics of concern and relevance to those involved in association management.

Sign up

Lawsuits, You’ve Been Served Checklist

What to do when your Association and/or Board of Directors is served with a lawsuit

Note Service Date, Time and on Whom

Make a written note immediately of the name of the person who was served with the papers, the time and the date. Your attorneys and insurance carrier will need to know this information, as you have only 30 days to file a response in State Court and 21 days if the lawsuit is in Federal Court.

Notify Attorneys and Insurance

Immediately send a copy of the lawsuit to your attorneys and your insurance carriers noting the name of the person served, and the date and the time when they were served. Depending on your insurance policies and the nature of the claim, there may or may not be insurance coverage.  Your attorneys may have to take the initial steps to protect your rights in the lawsuit. If you fail to protect your rights, the courts may not help to save you from your own mistakes, or, more likely, it will cost you a great deal more to undo the errors. 

Preserve Evidence

Your Association, all members of the Board of Directors, the Community Association Manager, and any employees of the Association have a legal duty to preserve evidence related to the lawsuit.  Do not delete any emails or other electronically stored information, nor destroy any hardcopies of documents, letters, photographs, etc.  If in doubt, ask your attorneys for guidance.

Preserve The Attorney/Client Privilege

Do not discuss the lawsuit with anyone other than your attorneys and other board members in executive session.  Do not forward emails or other correspondence from your attorneys to anyone who is not a member of the board of directors, or the Community Association Manager.

Click here to download checklist in PDF

Get legal updates straight to your inbox.

Our newsletters highlight community association best practices, new developments in the laws affecting associations, and sheds light on topics of concern and relevance to those involved in association management.

Sign up

Board Duties, General Checklist

Board Duties, Miscellaneous Checklist

CC&R Expiration

Know if and when your declaration (CC&Rs) expires. Older CC&Rs may terminate on a specified date if not extended. Some are doing so now. Calendar the expiration and any deadline to act. Some deadlines occur months before the expiration date. ONLY IF the CC&Rs contain no method to extend the term, CC §4265 provides for an extension approved by more than 50% of the owner votes. Otherwise, follow the amendment requirements in the CC&Rs. Allow at least a year lead time, preferably more, before any expiration deadline.

Rule Change Notices

The Board must give at least 28 days prior written notice of most proposed rule changes, consider comments from the members and adopt the rules at an open meeting. Consult the statute for many detailed definitions and requirements. [CC §§4340-4370]

Board Member Education

An on-line education course for boards may become available, although there is no funding for the program as yet. [CC §5400]

Granting Exclusive Use of Common Area

Associations must obtain approval from at least 67% of the owners before the board may grant exclusive use of any portion of the common area to any member with limited exceptions. [CC §4600] The vote must comply with the strict, technical voting requirements in the Civil Code.

Phone/Contact Information

For floods, other emergencies and even contacting owners to vote on document amendments, it is extremely helpful to keep a list of home and work phone numbers and email addresses for owners. This can be requested and updated in a database for any owners who contact the association. Consult with your attorneys for the extent to which this information may be required to be included when a member requests a membership list and contact information. For additional information, see “Membership Rights Checklist”.

Recorded Assessment Information Statement

To assist in collecting assessments, the association may record an information statement containing the name of the association; the recording information on the declaration; the name and phone number of the treasurer, managing agent or other person authorized to collect assessments; and a list of the assessor’s parcel numbers of the separate interests subject to assessments. [CC §4210]

Towing Signs

The Board must have the appropriate signs and follow the appropriate procedures if it wishes to tow vehicles that are improperly parked. [CVC §22658]

Gambling or Raffles for Fundraising

Any nonprofit organization that uses gambling, lotteries or games of chance, including bingo, for fundraising must register annually with the state’s Division of Gambling Control, obtain prior approval for the event and comply with all the requirements of the law, including limits on the number of fundraisers allowed, their duration, value and types of prizes, percentage of proceeds going to the organization, etc. [B&P §§19985-19987 on the electronic version only; also see Penal Code §§319-329 & 300-337z]

Fair Housing Accommodations and Unit or Common Area Modifications

HUD and the Department of Justice have published joint statements concerning “Reasonable Accommodations under the Fair Housing Act” dated May 17, 2004 and “Reasonable Modifications under the Fair Housing Act” dated March 5, 2008. These have valuable information for any association that may be asked to make a reasonable accommodation or allow reasonable modifications for persons who have disabilities. The internet link is too large to include here. The easiest way to find them is to use a search engine and search for the quoted language. [CC §4760 and W&I Code §9105.1]

Request for Governing Documents for Owner to Provide to Prospective Purchaser

See the relevant statutes for additional requirements and details than those merely summarized below. Upon written request, within 10 days, an association must provide to an owner: (1) a copy of the governing documents and, if the association is not incorporated, a statement to that effect; (2) a statement that any age restriction in the governing documents is enforceable only to the extent permitted by the Unruh Civil Rights Act in the Civil Code and including the applicable provisions of CC §§51.3 & 51.3.5, (or CC §51.11 in Riverside County); (3) a copy of the documents required by CC §§5300-5320; (4) a statement of the current regular and special assessments and fees, including a statement of any unpaid assessments and fees plus any unpaid monetary fines or penalties, late charges, interest and costs of collection on the unit in question including any which are or may be a lien on the unit; (5) a copy or summary of any notice of violation sent to the owner alleging any violation of the governing documents that remains unresolved at the time of the request; (6) information about defects and/or repairs as required by CC §6000; (7) the latest information related to construction defect settlements as required under CC §6100; (8) information on approved changes in regular and special assessments that have been approved but are not yet payable, (9) the effect of provisions in the governing documents that prohibit leasing [CC §§4740 & 4741], and (10) copies of board minutes from the prior 12 months, if requested by the purchaser. [CC §4525] The information must be provided to the owner or someone the owner designates to receive it. If an association maintains this data in electronic form, it must give the owner the option of receiving the information in electronic form or machine readable storage media and may also put the information on a website, but it may not charge an additional fee for electronic delivery in lieu of a hard copy. [CC §4530] The billing costs and documents requested are to be listed on a form as specified in CC §4528. The seller must provide any documents listed in the CC §4528 form that the seller has in its possession and at no cost to the buyer. A seller may request to purchase some or all of the documents, but shall not be required to purchase ALL of the documents listed on the CC §4528 form.  Any forms provided by seller may not be listed in the form or charged for by the association. Any association that provides a copy of a declaration or any governing document or a deed to any other person shall place a cover page over the document or a stamp on the first page of the document stating, in at least 14-point boldface type the following:

“If this document contains any restriction based on age, race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, familial status, marital status, disability, veteran or military status, genetic information, national origin, source of income as defined in subdivision (p) of Section 12955, or ancestry, that restriction violates state and federal fair housing laws and is void, and may be removed pursuant to Section 12956.2 of the Government Code by submitting a “Restrictive Covenant Modification” form, together with a copy of the attached document with the unlawful provision redacted to the county recorder’s office.  The “Restrictive Covenant Modification” form can be obtained from the county recorder’s office and may be available on its internet website. The form may also be available from the party that provided you with this document. Lawful restrictions under state and federal law on the age of occupants in senior housing or housing for older persons shall not be construed as restrictions based on familial status.” [Govt. Code §12956.1]

High Rises and Mobile home and RV Parks – Evacuation Plans

With very limited exceptions, various requirements apply to residential buildings taller than 75 ft. above the ground floor. These include annual Fire Marshal certifications; providing emergency evacuation plans and procedures posted in appropriate locations, including procedures for handicapped and non-ambulatory persons; and other requirements established by the State Fire Marshal or more stringent requirements set by local governmental agencies. [H&S §§13210-13234 (high rises); §§18603 & 18871.8 (mobile home and RV parks)]

Playgrounds

All playgrounds built between 1/1/94 and 12/31/99 must comply with applicable safety regulations by the time they are 15 years old. See statute for other requirements. [H&S §115725]

Periodic Maintenance Inspections

In addition to requiring owners and/or an association to perform reasonable and necessary maintenance, CC §§5550 and 5551, in addition to some governing documents, also require performance of specified maintenance inspections and tasks. Such specified inspections and tasks are found in CC §§5550 and 5551, and additionally, may often be found in maintenance manuals prepared and provided by an association’s developer.

Click here to download checklist in PDF

Get legal updates straight to your inbox.

Our newsletters highlight community association best practices, new developments in the laws affecting associations, and sheds light on topics of concern and relevance to those involved in association management.

Sign up

Board Duties, Fiscal Checklist

Board Duties, Fiscal Checklist

  • Tax Returns

Associations must file a federal and state tax return or exemption statement by the 15th day of the third month after the fiscal year ends. Since requirements can vary, it is best to consult the association’s CPA or tax advisor regarding applicable filing or reporting requirements.

Annual W-2 and 1099 Forms

Associations that have their own employees (regardless of compensation paid) or that have non-incorporated independent contractors (paid $600 or more during the year) must file appropriate forms with the state and federal government at various intervals during the year. Consult the association’s CPA, tax advisor, manager or payroll contractor to be sure all forms are being processed. Calling employees independent contractors does not make them independent contractors any more than calling a cow a horse makes it a horse.

Use Tax Payments and Returns

California law requires any individual or business to pay “use tax” on merchandise bought from an out-of-state vendor for use in California, if that vendor does not charge sales tax. This is frequently the case with mail order and internet purchases. The State Board of Equalization is now sending notices to businesses, including CIDs, to register to pay use tax on such purchases. See www.boe.ca.gov, Publications 123-TG and 126 and Form BOE-404-A. [R&T Code §6225].

Annual Review or Audit

Within 120 days after the fiscal year ends, a CPA must prepare at least a “review” (or an audit, if the governing documents call for it), and the association must distribute it to the members, if the association’s gross income exceeds $75,000. [CC §5305] However, any incorporated association which had at least $10,000 in gross revenue, must make available a balance sheet, income statement and statement of changes in financial position which is (1) accompanied by report from a CPA or (2) an officer’s certificate that its balance sheet was prepared without audit. [Corp. Code §8321] The annual report must also contain a statement of where the names and addresses of the current members are located [§8321(a)(2)]. It must also contain a statement of any corporate “indemnifications or material financial transactions” between the corporation and any officer, director or holder of 10% or more of the voting power. The statute contains many details. [Corp. Code §8322]

Director Financial Interest in Contracts

The 2014 Davis-Stirling Act added a section identifying specific actions on which directors have a conflict and may not vote. [CC §5350] Under the Corporations Code, directors must disclose any contract or other transaction between the corporation and (1) the director or (2) any entity in which the director has a material financial interest. Detailed rules apply for proper ratification of any such transactions. [CC §5350 & Corp. Code §7233]

Distributions to Members

Corporations may not make any distributions of funds to members except upon dissolution. [Corp. Code §7411]

Reconciling Bank Accounts

On a monthly basis, review a current reconciliation of the association’s operating and reserve accounts. [CC §5500(a)&(b)]

Review of Budget

On a monthly basis, review the current year’s actual operating revenues and expenses compared to the current year’s budget. [CC §5500(c)]

Review of Income Statement

On a monthly basis, review an income and expense statement for the association’s operating and reserve accounts. [CC §5500(e)]

Review of All Bank Statements

On a monthly basis, review the latest account statements from each financial institution where the association has its operating and reserve accounts. [CC §5500(d)]

Review of Check Registers and Monthly General Ledger

On a monthly basis, review the check registers from each financial institution where the association has its accounts as well as the association’s monthly general ledger. [CC §5500(f)]

Review Delinquent Assessment Receivable Reports

On a monthly basis, review the delinquent assessment receivable reports. [CC §5500(f)]

Bank Signature Cards

Be sure that the signature cards on all reserve accounts require at least two signatures. All signatures must be either board members, or one may be an officer who is not on the board. [CC §5510(a)]

Proper Reserve Expenditures

Do not spend reserve funds except for reserve items, or for litigation involving the repair, restoration, replacement or maintenance of major components which the association is obligated to maintain. The board may borrow money from a reserve fund for operating expenditures following the procedures in the law. However, any borrowed funds must be restored within 1 year from the date of the first transfer, with limited exceptions. [CC §§5515 & 5520]

Operating or Reserve Account Transfers

The transfer of funds from the operating or reserve account of more than $10,000 or 5% or more of an association’s total combined reserve and operating account deposits, whichever is lower, requires the written approval of the board. [CC §§5502, 5380(b)(6)]

Good Samaritan Law and Liability Exemption

California amended its “Good Samaritan” statute to provide additional protection for persons who, in good faith without compensation give emergency medical or nonmedical care at the scene of an emergency. [H&S §1799.102]

Common Area Taxes

We have found that some associations are paying real estate taxes on their common areas. Most, if not all, associations should be exempt. Check with legal counsel or your CPA. [R&T Code §2188.5]

Common Area Tax Bill Addresses

If the association owns common area lots, be sure the county assessor has your correct mailing address, even if you do not normally get tax bills. If a tax bill appears for any reason, or if you become subject to a mechanic’s lien, the only address may be the address in the public records. You want to be sure you know about any tax liens or other liens against the property. Many of these mailing addresses are still old addresses for the developer.

Water Meter Errors

Associations regularly pay water bills on meters that serve other properties, or they encounter claims to pay water bills that someone else has been paying. It is critical for boards and managers to know that the water bills match up to a meter serving the association and that meters serving the association have a water bill coming to the association.

Click here to download checklist in PDF

Get legal updates straight to your inbox.

Our newsletters highlight community association best practices, new developments in the laws affecting associations, and sheds light on topics of concern and relevance to those involved in association management.

Sign up

Membership Meetings Checklist

Membership Meetings Checklist

Nomination and Election Procedures

Associations must adopt election rules [CC §5105(a)], but the requirements of §§5100-5145 do not apply if the governing documents provide that one member from each separate interest is a director. [§5100(f)] Every corporation must have reasonable nomination and election procedures given the nature, size and operations of the corporation. Certain specific requirements apply in corporations with 500 or more members and in corporations with 5000 or more members. [Corp. Code §7520-7525] Association funds may not be used for campaign purposes in board elections or in other membership votes. [CC §5135(a)] There are a multitude of additional requirements for election rules, requirements for independent inspectors of election and other detailed requirements that are stricter or different from the requirements set forth in the Corporations Code. Consult the relevant statutes and your community association counsel for those requirements. [CC §§5100-5145]

Parliamentary Procedure Adoption

Adopt a recognized system of parliamentary procedure, and/or other parliamentary rules for conducting membership meetings. It’s a good idea, but not mandatory for board meetings. [CC §5000] Some governing documents require use of a specific system of parliamentary procedure (like Robert’s Rules of Order) for member meetings, but most do not specify the system of procedure. Even if Robert’s Rules is specified, there are numerous books entitled Robert’s Rules of Order, so if Robert’s Rules is specified, it is best to identify which title, publisher and date you are using.

Election Inspectors

Appoint 1 or 3 election inspectors in advance of the annual meeting and any membership vote by secret ballot to perform the duties specified in the statute. Bylaws or election rules may set the number of inspectors at 1 or 3 and specify additional qualifications for the inspector(s) beyond those set forth in Civil Code Section 5110. Civil Code controls over Corporations Code in the event of conflict. [CC §5100(e)]

IRS Revenue Ruling Needed?

Consult with the association’s accountant regarding the appropriate resolution, if needed, to adopt at the annual meeting for the treatment of any surplus income over expenses from the current fiscal year. [IRS Revenue Rulings]

Secret Ballots

Use a secret ballot and a double envelope system mailed to all owners at least 30 days in advance for all elections and recall votes of the board, membership votes regarding assessments, votes on amending the governing documents or the grant of exclusive use of common area under CC §4600. Associations can also amend their election rules to allow for voting by electronic secret ballot, except for a vote regarding regular or special assessments. [CC §5105(i)] There are a multitude of additional requirements for election rules, electronic secret balloting, requirements for independent inspectors of election and other detailed requirements that are stricter or different from the requirements in the Corporations Code. Consult the relevant statutes and your community association counsel for requirements. [CC §§5100-5145] There is a maximum of one year to file a civil action for a violation of the election procedures or statutes. [CC §5145;]

Written Ballots in Lieu of Meeting (not Secret Ballots)

Written ballots to members (used in place of a meeting) must meet many specific requirements to be valid. [Corp. Code §7513] Written Ballots are signed and dated by the voter and cannot be used when the Davis-Stirling Act requires a secret ballot.

Timing of Member Meeting Notices

Give written notice of membership meetings at least 10 and not more than 90 days before the meeting date. [Corp. Code §7511] If notice is given by mail, and the notice is not mailed by first-class, registered, or certified mail, notice must be given at least 20 days before the meeting. Notice of meetings at which directors are to be elected must be provided at least 30 days in advance and include the names of all those who are nominees at the time notice is given to members. [CC §5115(b)]

Topics Specified in Notice

Specify matters intended to be presented at the meeting in the notice of the meeting. [Corp. Code §7511(a)]

Special Meeting Petition

When a special meeting is called by a petition signed by the specified percentage of the members [Corp. Code §7510(e)], the Board must set the date, time and place of the meeting not less than 35 nor more than 150 days after receipt of the request and send notice within 20 days after receipt of the request, or the persons signing the request may give the notice. [Corp. Code §7511(c)]

Maximum Adjournment

No membership meeting may be adjourned for more than 45 days. [Corp. Code §7511(d)]

Proxies

An association is not required to prepare or distribute proxies. [CC §5130] Any proxy distributed to 10 or more members in a corporation with 100 or more members must include the chance to specify a choice between approval or disapproval of each matter or group of related matters intended to be presented at the meeting. [Corp. Code §7514] Proxies may not be used in lieu of a secret ballot. Any proxy holder must complete a secret ballot. Any instruction in a proxy that directs the manner of voting must be set forth on a separate page of the proxy that can be detached.

Proxy Validity

Consult the statutes for details on proxy validity. [Corp. Code §§7517 and 7613]. IMPORTANT: Under Corp. Code §7613(g) a proxy cannot be used for certain types of votes, including recalls, unless it mentions the general nature of the matter to be voted on. Many associations do not use proxies any longer after the secret ballot, double envelope system took effect. Under Corp. Code §7613(f), proxies can be prohibited only if the members amend the Bylaws or Articles to do so.

Cumulative Voting

Check the association’s Bylaws to determine whether cumulative voting is authorized.

Election Results

The results of any election (not just for the board), must be reported to the board, recorded in the minutes and published within 15 days to all members. [CC §5120(b)] Election materials must be kept for a minimum of one year. [CC §§5125 & 5145(a)]

Click here to download checklist in PDF

Get legal updates straight to your inbox.

Our newsletters highlight community association best practices, new developments in the laws affecting associations, and sheds light on topics of concern and relevance to those involved in association management.

Sign up

Membership Rights Checklist

Membership Rights Checklist

Right to Specified Documents

On request, the association must provide members the right to inspect and/or copy the documents listed in CC §5200(a) following the procedures in CC §5205-5240. Other portions of the Davis-Stirling Common Interest Development Act (“Act”) contain requirements to provide other documents to members, upon request.

Right to Inspect Documents and Membership List

Members are entitled to inspect and copy the names, property and mailing addresses, and email addresses (as collected by the association) on the membership list for a proper purpose; minutes of the association, including board and any committees having any board powers; and access to certain books and records and rules of the association. The reasonable alternative contemplated by Corp. Code §8330(c) may not be available in an association subject to the Act unless a member has opted not to have his or her name and other information shared with a member who requests a membership list as provided in CC §5220. [CC §§4365(c), 5200(a) & 5240(b); Corp. Code §§8330 et seq.]

Right to Opt Out of Sharing Member’s Name, Address, etc. with Other Members

As provided in CC §5220, members have a right to opt out of sharing their contact information with another member who requests it. For advice on what the association must do for a member who opts out, and what the association may be required to do in response to a member’s request for the membership list when some members have opted out, consult with your attorneys. The scope of books and records has been significantly expanded, and the times for which they must be available to the requesting member vary. See the statute for details. [CC §5200 et seq.]

Right to Dispute Resolution

Members are entitled to demand Internal Dispute Resolution, and an association must accept. [CC §5900 et seq.] Members are also entitled to request Alternative Dispute Resolution. [CC §5925 et seq.]

Suit to Enforce Rights

Members may sue to enforce their rights concerning elections and voting [CC §§5100-5145], to attend open meetings [CC §4955], and granting exclusive use of common area [CC §4605].

Right to Disciplinary Hearing

Members are entitled to have hearings regarding discipline and the member’s payment of assessments held in executive session. [CC §4935(a)] To avoid a circus-like atmosphere in a disciplinary hearing, we believe it is best to adopt a rule requiring all disciplinary hearings to be held in executive session and to exclude all witnesses, other than the parties, except for the time they testify.

Right to Notice before and after Disciplinary Hearing

Members are entitled to at least 10 days’ prior notice of any hearing held to impose any proposed discipline or to impose a monetary reimbursement charge for costs incurred by the association to repair damage, unless the Association’s governing documents require a longer notice period. The hearing must be held at least 5 days before the effective date of the discipline [CC §5855; Corp. Code §7341]. CC §5855 is consistent with Corp. Code §7341 on the timing of the hearing, but it requires the notice to contain the date, time, and place of the hearing, the nature of the alleged violation and a statement that the member has a right to attend and address the board at the meeting. It also requires that the association must give a member written notice of any disciplinary action, either by personal delivery or “individual delivery” as provided in CC §4040 within 15 days after the “action,” i.e., presumably the decision to impose any discipline. Also, since Corp. Code §7341 states that the discipline cannot be effective until at least 5 days after the hearing, that timing presumably applies even if the notice is sent immediately after the hearing. The discipline is ineffective if the Board fails to comply with the CC §5855 requirements. [CC §5855(d)]

Right to Speak at Meetings

Members have a limited right to speak at board and membership meetings. [CC §4925(b)]

Right to Minutes

Members are entitled to copies of minutes, except executive session board meeting minutes, within 30 days after the meeting upon request and payment of a reasonable cost. [CC §4950; Corp. Code §§8330 et seq.]

Right to Call Member Meetings

Special membership meetings may be called by 5% or more of the members, but the date must be set and notice sent by the board, within 20 days after receipt of a meeting request, and the board must set the meeting date for 35 to 150 days after receipt. [Corp. Code §§7510 & 7511]

Right to Delinquency Details

All owners are entitled to detailed information regarding the delinquency by certified mail before a lien is filed, and to a copy of the lien mailed as required by CC §2924 within 10 days after a lien is filed. The association may not foreclose on a lien until the principal amount is at least $1,800 or a year old. The procedures prior to foreclosing are very detailed and complex. They require reference to the full statute. [CC §5650 et seq. & §5700 et seq., especially. §5705] The association may use nonjudicial foreclose to enforce a lien representing a penalty assessed to repair common areas damaged by a member or the member’s tenants or guests, but not for other types of monetary penalties. All costs and attorney’s fees for preparing, filing and mailing the lien may not exceed $425. Specific provisions apply to owner requests for payment plans, time limits for releasing liens after payment, and other aspects of the assessment collection process. (NOTE: A lien is not a prerequisite for filing a lawsuit, nor does a lawsuit for money “enforce” a lien.) [CC §5650 et seq., §5700 et seq.& §2924b] If an association forecloses on a lien, there is a right of redemption for 90 days after the sale. [CCP §729.035.] If a lien is recorded in error, there can be significant economic costs and delays to an association to correct the error. [CC §5685(c)]

Small Claims Actions

Owners may sue an association for amounts up to $12,500, but associations may sue only for amounts up to $6,250. [CCP §§116.220 & 116.221]. Moreover, no person, including an association, may file more than two small claims actions in which the amount demanded exceeds $2,500, anywhere in the state of California in any calendar year. [CCP §116.231] Any small claims case to collect a debt must contain a detailed accounting of the original debt, all additional fees and charges, all credits and debits and an explanation of such fees, charges, debits, and credits. [CCP §116.222] The association may appear in a small claims case through an agent, management company representative, or bookkeeper. [CCP §116.540] An authorization to appear, signed under penalty of perjury by the individual appearing on behalf of the association, must be submitted to the court prior to or at the time of the small claims hearing.  [CCP §116.540(j)] Consult with legal counsel for assistance in preparing the necessary authorization.

Right to Keep a Pet

Any An association may not prohibit through its governing documents, an owner of a separate interest from keeping at least one “pet” which means any domesticated bird, cat, dog, aquatic animal kept within an aquarium, or other animal as agreed to between the association and owner. [CC §4715]

Right to Display Political, Real Estate and Non-Commercial Signs and U.S. Flag

The governing documents may not limit or prohibit the display of the United States flag on or in the owner’s separate interest or exclusive use common area, except as needed to protect public health or safety. [Govt. Code §434.5; 4 U.S.C. §5] Real estate signs must be allowed. [CC §§712 & 713] Certain non-commercial signs, posters, flags or banners are permissible in CIDs [CC §4710]. Political signs expressly are permitted in mobile home subdivisions. [CC §799.10] See each statute for specific requirements and limitations.

Right to Market Property and Limitation on Transfer Fees

Any rule that arbitrarily or unreasonably restricts an owner’s ability to market his or her property in an association is void, including a fee that exceeds the association’s actual costs to market the owner’s interest, to change its records after a sale, or that establishes an exclusive relationship with a broker. [CC §§4730 & 4575(a)]

Right to Notice of Rule Changes

The Board must notify members of many types of rules changes. [CC §§4350-4360] Members also may call for a special meeting to reverse a rule change. Detailed procedures are contained in the statute. [CC §4365]

Right to Install Fire-Retardant Roof

Associations may not require owners to install roofs that would violate H&S Code §13132.7. [CC §4720]

Assessments Exempt from Judgment Creditors

Assessments collected by an association are exempt from attachment by judgment creditors, but only to the extent necessary for the association to perform essential services, such as paying for utilities and insurance. [CC §5620]

Right to Install Electric Vehicle Charging Stations and Time of Use Meters

Charging stations and time of use meters must be allowed, subject to reasonable restrictions. [CC §§4745-4745.1]

Right to Lease Property

An owner may not be subject to a governing document restriction that prohibits, has the effect of prohibiting, or unreasonably restricts the leasing of a separate interest, accessory dwelling unit, or junior accessory dwelling unit to a tenant. Additional details are contained in the statutes. [CC §4740 & 4741].

Right to Display Real Estate Signs

CC&Rs or other governing documents that effectively prohibit or restrict the use of signs to advertise a property for sale, lease or exchange are void. However, reasonable restrictions may be imposed that comply with statutory requirements. See the statutes for details. [CC §§714 & 714.1]

Right to Install Solar Energy Systems

Associations may not establish a general policy prohibiting the installation of use of a rooftop solar energy system for household purposes on the roof of the building in which an owner resides or a garage or carport adjacent to the building that has been assigned to an owner for his/her exclusive use. See statute for details. [CC §§714 & 714.1]

Right to Protect Solar Panels from Shade

Under the Solar Shade Control Act, once solar panels have been installed, an owner of a nearby property may not allow vegetation to grow in a way that casts a shadow greater than 10 percent of the collector’s absorption surface area between 10 a.m. and 2 p.m. standard time. [Pub. Resources Code §§25980-95986]. Also see solar easement protections [CC §801.5].

Right to Install Artificial Turf; Low-Water Using Plants

Associations may not establish a general policy prohibiting the installation of low water-using plants or artificial turf. The association may apply landscape rules so long as they comply with the above. See statute for details. [CC §4735]

Right for Some Residential Care Facilities to be Exempt from Recorded Covenants Prohibiting Business Uses

As a matter of state and federal public policy, there are various types of residential care facilities that will or must be treated as residential uses of property. While an association may contend that the use violates a CC&R prohibition against any business use, statues and court decisions have ruled otherwise. Attempts to enforce covenants that would prohibit group homes for persons with disabilities is considered a violation of the federal Fair Housing Amendments Act (42 U.S.C. §3604(f)(1). Several California statutes expressly hold that certain types of group homes are considered residential uses of property despite CC&R prohibitions against business uses. Covenants that would prohibit family day care homes for children permitted by the law are declared to be void (H&S Code §1597.40). “Residential facilities” for six or fewer persons under the Community Care Facilities Act that provide 24-hour nonmedical care to adults or children “in need of personal services, supervision, or assistance essential for sustaining the activities of daily living or for the protection of the individual in an assisted living environment” are encouraged (H&S Code §1502). Residential facilities are also considered residential use of property even if a recorded covenant may provide otherwise (H&S Code §§1566.3 & 1566.5).

Right to Construct or Use ADUs and JADUs

Associations that are planned developments may not effectively prohibit or unreasonably restrict the construction or use of an accessory dwelling unit (“ADU”) or junior accessory dwelling unit (“JADU”) on a lot zoned for single family residential use that complies with applicable Govt.  Code sections [Govt. Code §§66314 & 66333].  Associations may impose reasonable restrictions on ADUs and JADUs. [CC §4751]

Click here to download checklist in PDF

Get legal updates straight to your inbox.

Our newsletters highlight community association best practices, new developments in the laws affecting associations, and sheds light on topics of concern and relevance to those involved in association management.

Sign up

Management Company Duties Checklist

Management Company Duties Checklist

Disclosure Statement to Board before Contracting

The management company must give a written statement to the board, no earlier than 90 days before entering a contract, containing the following: (a) Names and business address of the owners or partners of the management company. If the management company is a corporation, it must include: (a) the names and business addresses of the directors and officers plus shareholders who hold more than 10% of the shares; (b) A statement containing the names of any of the above persons who hold relevant California licenses in areas such as architecture, construction, engineering, real estate or accounting, the licenses they hold and the dates the licenses are valid; (c) A statement containing the names of any of the above persons who hold relevant professional certifications or designations in areas such as architecture, construction, engineering, real estate or accounting, which certifications or designations are held, what that certification or designation is and who issued it and the dates the certifications or designations are valid; (d) A statement disclosing any business or company the manager or management company has any ownership interests, profit-sharing arrangements, or other monetary incentives provided to the management company or manager; and (e) A statement as to whether or not the manager or management company receives a referral fee or other monetary benefit from a third party provider distributing documents pursuant to CC §§4528 & 4530. [CC §5375]  A manager or management company shall also disclose, in writing, any potential conflict of interest when presenting a bid for service to a board. “Conflict of interest” is defined as (1) any referral fee or other monetary benefit that could be derived from a business or company providing products or services to the association or (2) any ownership interests or profit-sharing arrangements with service providers recommended to, or used by, the association. [CC §5375.5] [CC §5375]

Professional Certification Disclosures

On an annual basis, an association manager must disclose to each association board, (a) whether or not the manager is “certified,” as defined in the statute, (b) the name, address, and telephone number of the professional association that certified the manager, the date the manager was certified, and the status of the certification, (c) the location of the manager’s primary office, (d) whether the fidelity insurance of the manager or the manager’s employer covers the current year’s operating and reserve funds of the association, and (e) whether the manager possesses an active real estate license, (f) disclose information required in Section 5375 of the Civil Code, (g) Whether or not the common interest development manager receives a referral fee or other monetary benefit from a third-party provider distributing documents pursuant to Section 5300 of the Civil Code, (h) An affirmative written acknowledgment that the disclosure provided to a member or potential member pursuant to Sections 4528 and 5300 of the Civil Code, and all documents provided thereunder, are the property of the association and not its managing agent or the agent’s managing firm. See statute for more details. [B&P Code §11504]

Unfair Business Practices

It is an unfair business practice for a manager or management company to hold oneself as “certified” without meeting the requirements of B&P Code §11504, to state or advertise that the person is certified, registered, or licensed by a governmental agency to perform the functions of a certified common interest development manager, to state or advertise a registration or license number, unless the license or registration is specified by a statute, regulation, or ordinance, or to fail to disclose or misrepresent any item to be disclosed under B&P Code §11504. [B&P Code §11505]

Separate Bank Accounts

The management company must deposit all funds belonging to the association either into: (1) an escrow account with a bank, savings association or credit union, or (2) an account under the control of the association, or (3) a trust account with a bank, savings association or credit union located in California, insured by the federal government or is a guaranty corporation subject to Financial Code §14858, and held there until disbursed according to the association’s instructions. [CC §5380(a)]

Interest-bearing Accounts

Upon the association’s written request, the management company must deposit all funds it accepts or receives on behalf of the association into an interest-bearing account in a bank, savings association or credit union located in California that is insured by the Federal Deposit Insurance Corporation, National Credit Union Administration Insurance Fund or a guaranty corporation subject to Financial Code §14858. (1) The account must show the management company as trustee for the association, (2) the fund must be insured by an agency of the federal government, (3) The funds must be kept separate from the management company’s own funds and from other funds the management company holds in trust, (4) Disclose the nature of the account and any interest, service charges, notice requirements, and early withdrawal penalties, (5) Interest cannot benefit management company or employees, (6) Transfers from operating or reserves require Board approval unless the transfers are less than $5,000 or 5% of estimated income for associations with 50 or fewer separate interests, or less than $10,000 or 5% of estimated income for associations with 51 or more separate interests. In no event may those funds be invested in stocks or high-risk investment options. [CC §5380(b)]

Maintaining Accounting Records

The management company must keep a separate record of all funds received and disbursed from any account described in CC §5380, including any interest earned on the funds. [CC §5380(c)]

Commingling Funds

The management company may not commingle association funds. [CC §5380(d)]

Lien and Foreclosure Actions

If a management company undertakes lien and foreclosure work on behalf of an association, there are significant, technical requirements to follow. [CC §5650 et seq. & §5700 et seq.] If a lien is recorded in error, there can be significant economic costs and delays to an association to correct the error. [CC §5685]

Click here to download checklist in PDF

Get legal updates straight to your inbox.

Our newsletters highlight community association best practices, new developments in the laws affecting associations, and sheds light on topics of concern and relevance to those involved in association management.

Sign up

Developer Transition Checklist

Developer Transition Checklist

Necessary Documents

Developer Maintenance Agreement(s)

Subsidy Agreement(s)

DRE Budgets

All recorded documents affecting property

Executed copy of Bylaws and filed Articles of Incorporation

Deeds for all common area Lots

Developer's Participation on the Board

Determine Board-approved directors and terms

Verify required number of non-developer owners to be elected

Track first and subsequent annual meeting dates

Obtain all Board meeting minutes and corporate minute book

Establish Architectural Committee if CC&Rs call for one

Architectural Control

Who is in charge… sales office, construction, superintendent, management?

Retain consultant

Establish tracking procedure

Turnover Walk-Throughs

Determine annexable area

Create punch list during walk-through

Determine maintenance periods

Establish utility transfers/notify insurance carriers

Obtain warranty information

Turnover letters/bond releases

Review/Creation of Association Contracts During/After Transition

Attorney

Management

Insurance

Utilities (including cable/internet)

Landscaping

Pest Control

Janitorial

Courtesy Patrol/Parking Enforcement

Utilities (Cable/Internet)

Click here to download checklist in PDF

Get legal updates straight to your inbox.

Our newsletters highlight community association best practices, new developments in the laws affecting associations, and sheds light on topics of concern and relevance to those involved in association management.

Sign up

Board Meetings Checklist  

Board Meetings Checklist

Board Meetings Defined

Board “meetings” are defined in Civil Code section 4090[1] and Civil Code section 5450 and must be open to members with limited exceptions for executive sessions (Civ. Code §§ 4090, 4900-4935, & 5450.)

Board Action Not Permitted Outside of Board Meetings

Board meetings may not be conducted by email or other electronic transmissions except when very limited special criteria are met. (Civ. Code §§ 4910 & 5450.)  Teleconferences are permissible, but everyone, including owners present or attending via teleconference or video, must be able to hear one another. (Civ. Code §§ 4090 & 5450.) (See footnote 1.) A board meeting or meeting of the members may be conducted entirely by teleconference, without any physical location being held open for the attendance of any director or member, except for a meeting at which ballots are counted and tabulated pursuant to Civil Code section 5120. (Civ. Code § 4926.)

Executive Session Matters Noted in Minutes

Any matter discussed in executive session must be generally noted in the minutes of the immediately following meeting that is open to the entire membership. (Civ. Code § 4935(e).

Notice of and Agendas for Board Meetings

Except for an emergency meeting and unless the bylaws provide for a longer time period, the association must give notice to members of board meetings at least four (4) days before an open meeting and two (2) days before an executive session. The board must post the agenda for the meeting with the notice. Notices of Board meetings may be given by “general delivery” as described in Civil Code section 4045. (Civ. Code § 4920.) The board may not consider items not listed on the agenda except for specified “emergencies.” See Civil Code section 4930 for details. However, the association must send notice by “individual delivery” as described in Civil Code section 4040 to any member who requests notice of board meetings by “individual delivery.” This may include posting the notice on the association’s internet website in a prominent location, or delivery by email or other forms of electronic delivery if the member consents. (Civ. Code § 4045(b).) For virtual meetings, additional notice requirements are set forth in Civil Code section 4926.

Notice to Directors of Special Board Meetings

Special board meetings require four days’ notice to directors by first-class mail or 48 hours’ notice delivered personally or by electronic communication as defined in the Corporations Code. (Corp. Code §§ 20 & 7211.)

Emergency Board Meetings

Emergency board meetings, without required prior notice, are available only as specified in the law. (Civ. Code § 4923.) In an emergency, try to give the best notice possible under the circumstances. Even for an emergency that meets the statutory criteria, an open meeting must still be open for owners.

Board and Member Meeting Minutes

Minutes of member meetings and open board meetings must be made available to members as provided in our “Membership Rights Checklist.”

Board Agenda Required for Discussion and Action

Except as otherwise described in Civil Code section 4930 (b)-(e), the board may not discuss or take any action on any item at a nonemergency meeting unless the item was placed on the agenda.  Notwithstanding this requirement, the board may take action on any item of business not appearing on the agenda if certain conditions are met.  (See Civil Code section 4930(d) for more details.)

Click here to download checklist in PDF

[1] “Board meeting” means either of the following:

(a) A congregation, at the same time and place, of a sufficient number of directors to establish a quorum of the board, to hear, discuss, or deliberate upon any item of business that is within the authority of the board.

(b) A teleconference, where a sufficient number of directors to establish a quorum of the board, in different locations, are connected by electronic means, through audio or video, or both. A teleconference meeting shall be conducted in a manner that protects the rights of members of the association and otherwise complies with the requirements of this act. Except for a meeting that will be held solely in executive session, the notice of the teleconference meeting shall identify at least one physical location so that members of the association may attend, and at least one director or a person designated by the board shall be present at that location. Participation by directors in a teleconference meeting constitutes presence at that meeting as long as all directors participating are able to hear one another, as well as members of the association speaking on matters before the board. (Civ. Code § 4090.)

Get legal updates straight to your inbox.

Our newsletters highlight community association best practices, new developments in the laws affecting associations, and sheds light on topics of concern and relevance to those involved in association management.

Sign up