Assignment of Rent

CC&Rs may provide that if a member becomes delinquent in assessments, that member is deemed to have assigned rental income from their association property to the association. (Civ. Code §2938) In the absence of such a provision, if the association has a judgment against a member, it may seek a court order for an assignment of rents to be paid toward satisfaction of that judgment. (Code Civ. Proc. §708.510 et seq.)

Annual Meeting

Associations are required to hold annual membership meetings to elect directors as set forth in the association’s bylaws. See also, Elections. If the board fails to hold an annual membership meeting within 60 days after the date designated in the governing documents or within 15 months of the association’s last regular meeting, any member can file a petition in superior court to have the court order a meeting. (Corp. Code § 7510(c)) The existing board members shall hold office until a successor has been elected and qualified. (Corp. Code §7220(b))

Association

This is the entity charged with the management and operation of a common interest development. (Civ. Code §4080) Associations are representative governments in which members typically have the right only to elect the board and make major decisions such as document amendments, imposing assessments that exceed statutory limits on the board’s power, etc. Otherwise, association boards typically have the right to make most day-to-day decisions. Also see Homeowners Association.

Acclamation

Refers to the process of declaring the victors in an uncontested election when the number of candidates is equal to or less than the board positions to be filled at the election. Civil Code section 5103 allows boards of directors to approve candidates by acclamation in uncontested elections only if the association complied with specified notice requirements when seeking candidates.

 

Attorney-Client Privilege

The attorney-client privilege is perhaps one of the most valuable tools to a board. This privilege protects communications between the association’s attorney and the board of directors. This ensures the board can be candid and forthright in their discussions with their attorney. It is important to keep in mind that this privilege only exists so long as the communication itself, the contents of the communication or the content of the communication are not divulged to non-board members.

Accounts

Associations will have several different types of accounts that serve a variety of functions. Generally, associations will have an operating account and at least one reserve account. These accounts function just as normal bank accounts, but their deposits and debits must be tracked very carefully and only certain board members may sign checks out of these accounts. Some associations may have litigation accounts or other accounts designated for special purposes.

Attorney General

The most common situation in which a common interest development becomes involved with the California Attorney General is when someone, usually a member, files a complaint with the Attorney General’s office alleging some failure to comply with the provisions of the Corporations Code dealing with member meetings (§7510 et seq.), voting and elections (§7610 et seq.) or inspection of corporate records (§8210 et seq.). The Attorney General will send a notice of the complaint to the corporation which has 30 days to answer. If the Attorney General does not believe the answer is satisfactory, the Attorney General may take various actions and seek remedies for apparent violations.

ADA

The Americans with Disabilities Act (ADA) is one of the federal laws pertaining to accommodations for the disabled. See 42 USC 12101 et seq. Community associations are generally not subject to the ADA, except when some or all of the common areas are open to the public at large. However, community associations are subject to the Federal Fair Housing Amendments Act of 1988 (42 USC 3601 et seq.) which does provide protections for the disabled, as well as various state and local laws pertaining to the disabled. See also, “Fair Housing Laws.”

Attorneys’ Fees

Compensation for legal services performed by a lawyer or law firm personnel at the request of a client, in or out of court. Attorneys’ fees may be billed on an hourly, flat-rate or contingent fee. In litigation, attorneys’ fees are separate from fines, compensatory and punitive damages, and court costs. In the instance of a lawsuit, attorney fees are not paid by the losing party to the winning party except pursuant to specific statutory or contractual rights.