SB800 and Governing Documents Checklist

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[Requirements usually found in the Association’s Bylaws and/or the CC&Rs]

Notice to Members and Informational Meeting

  • Notice to members required at least 30 days before filing a civil action against developer
  • Notice must include:
    • Time and place that a meeting will take place to discuss problems impacting association
    • Potential impacts to community, including potential financial impacts to association and its members. This can include impact of claims on sales; attorney fees, expert and other costs; raising funds through assessments and reserves
    • The options, including civil actions, that are available to address the problems
  • If the association has reason to believe an applicable statute of limitations will expire, it may give notice of this meeting within 30 days after filing of a civil action
  • Some governing documents may suggest a membership vote is required prior to initiating any legal action against a declarant entity. Generally, these provisions are void and unenforceable if drafted by the declarant. Such provisions may be enforceable if adopted by the non-declarant members of the association.

Information Typically Required for Meetings Through Governing Documents

  • Impact of claims on sale
  • Attorney fees, expert and other costs
  • Raising funds through assessments and reserves
  • Potential parties
  • Description of process to pursue claims

Documents to Have Prepared and Ready when Sending Notice to Builder

  • Meeting Minutes
  • Maintenance Manual reports
  • Maintenance Records
  • Budgets, reserve studies for 10 years
  • Communications with members?

Community Association Transition to Owner Control Checklist Construction

  • Manufacturer warranties (HVAC, elevators, windows, lift gates, pool equipment, exterior cladding, key fobs, security)
  • Manufacturer recommended maintenance schedules and instructions
  • Building plans and permits; notices of completion or occupancy
  • Location of key components (water, gas, irrigation valves and shut off) and information concerning all fire safety and other emergency systems
  • Owner and Association Maintenance Manual
  • List of contractors and contact information
  • Inventory of Association real and personal property

Legal Documents

  • Everything recorded (CC&Rs, easements, maps), Bylaws, CC&Rs, Rules
  • Architectural requests, approvals, denials; meeting minutes
  • Insurance policies
  • Release of mechanics liens; lawsuit documents
  • Records from Department of Real Estate (or “BRE”)
  • Assessment and Construction Bonds
  • Leases
  • Senior Housing Compliance documents

General Timeline to Bring Claims

(Each case varies with the applicable facts)

For an association, the time to bring claims can begin to run from a number of different dates, including, the date of substantial completion of the building or building component (as defined by code) or the date the declarant relinquishes control over the decision to initiate a claim (this can have various meanings, including the date a homeowner becomes a director, the date homeowners become the majority on the Board of Directors, or some governing documents define a specific date based on the association’s annual meeting). Do not apply these time periods without consulting with counsel!

1 year          Irrigation systems, drainage, manufactured products, noise (from occupancy of adjacent unit)

2 years        Dryer ducts, landscaping systems, untreated wood posts

4 years        Exterior pathways, driveways, hardscape, sidewalks, patios, (certain) plumbing and sewer system issues, (certain) electrical systems, untreated steel fences

5 years        Paint, stain

10 years      Other components including decks, balconies, tiles, stucco, framing, foundations, (other) plumbing and sewer lines, roofs, soils, structural, windows