California law prohibits an association from charging a fee not directly related to a cost. Fees related to the cost of collecting delinquent assessments can be imposed by an association upon a delinquent owner and include late fees and interest charges in addition to reasonable costs of collection incurred.
Good Samaritan Law
The Good Samaritan Law traditionally protects those individuals who attempt to render aid in an emergency from liability associated with rescues gone awry. Most often, associations encounter this law when dealing with the decision of whether to purchase an automatic or semi-automatic defibrillator. Currently, the law is vague on whether associations which have an automatic or semi-automatic external defibrillator enjoy this protection. Contact your attorney to discuss this topic.
Housing Cooperative Trusts
Housing Cooperatives Trusts are defined and discussed in Civil Code section 817 and Business and Professions Code section 11003.4. See Limited Equity Housing Cooperative.
Laws
Laws is a generic term that encompasses virtually all types of local, state and federal legislation that has been enacted by the relevant representative body and signed by the chief executive or other authorized executive officer of the governmental unit. The term also applies to regulations that have been enacted by local, state and federal agencies that have non-elected officials appointed to enforce and implement legislative enactments proving the adoption of regulations. Finally, laws also encompass the holdings in court decisions and their interpretation of constitutional, legislative and administrative enactments.
Meetings, Delegates
Delegate voting systems are used by communities that have a master and sub-associations or a large number of separate interests divided into neighborhoods. The representative for each sub-association or neighborhood (i.e., the delegate) acts as the liaison between members and the Board. The governing documents provide for the election of delegates, their duties, and meeting requirements. Delegates meet to cast votes on behalf of the members they represent. Election/voting requirements of Civil Code section 5100 et seq. are not applicable to delegate meetings and voting.
Nonprofit Corporation
Most, but not all, CIDs are incorporated as nonprofit corporations. Most are nonprofit mutual benefit corporations under Corporations Code section 7110 et seq. A very small number of large, typically master, associations may be nonprofit public benefit corporations under the public benefit corporation law, Corporations Code section 5110 et seq.
Payment Plans
Payment plans can be effective in collecting delinquent assessment accounts, and are something boards should consider. It is advisable to ensure that the debt is secured by a lien unless it is a very small amount, and to make the payments manageable, but in an amount to reduce the debt in no more than a year where feasible.
Quorum
A quorum is the minimum number, fraction or percentage of directors or members who must be present to commence business at a meeting of directors or a meeting of members, respectively. Unless prohibited by the governing documents, members may be considered present either in person or by proxy. However, neither directors (Corp. Code §7211) nor delegates (Corp. Code §7152), in those associations that have delegates, may vote by proxy.
RVs
An “RV” or recreational vehicle is either of the following: (a) A motor home, travel trailer, truck camper, or camping trailer, with or without motive power, designed for human habitation for recreational, emergency, or other occupancy, that meets the space and construction requirements set forth in Health and Safety Code §18010 or (b) a “park trailer” as defined in Health and Safety Code §18009.3.
Signature, Reserve Account
Civil Code section 5510 requires the signatures of at least two persons on each withdrawal from the association’s reserves. These two individuals may be either 1) members of the association’s board of directors, or 2) one officer who is not a member of the board of directors and a member of the board of directors. These signature requirements are in place to prevent potential theft and embezzlement.