Thursday, July 11, 2013

SHARING HOA RECORDS & HOA FINES


SHARING HOA RECORDS

QUESTION: An owner requested over 4,000 documents which we provided. Does she have the right to share those records with others??

ANSWER: It depends on who the "others" are and for what purpose. Since all members have the right to inspect records, there is nothing improper about members sharing records with other members.

Improper Purpose. Where your homeowner can get herself into trouble is if she uses those records for an improper purpose such as (i) using them for personal gain, (ii) altering the records to defame others, (iii) selling them, or (iv) using them for any other purpose not reasonably related to her interest as a member.

Damages. If an owner uses records for an improper purpose, the association can take legal action against him and is entitled to reasonable attorneys' fees and costs if it prevails. (Civ. Code §1365.2(e)(3))

FINES & COLLECTION AGENCIES

QUESTION: Can an association turn a fine over to a collection agency if an owner refuses to pay? 

ANSWER: Only if the fine is first converted into a judgment. Since collection agencies cannot practice law, they cannot go into court to make an association's monetary penalties collectible. The association needs to first sue the owner in small claims court (up to $5,000) or superior court (over $5,000). If the court determines the fines are reasonable, the association will receive a money judgment that can then be turned over to a collection agency. Most collection agencies work on a contingency fee basis and charge between 25% and 40% on any sums recovered.

EV CHARGING STATION

QUESTION
: I am a townhome owner and would like to install an EV charging station in my private garage. Do I still need HOA approval?
ANSWER: All of the owner requirements in the Davis-Stirling Act apply to installation of charging stations in common areas or exclusive use common areas. If your garage is solely owned by you as your separate property then the association arguably has no interest in the installation of a charging station in your garage.

Licensed and Insured. However, the association has an interest since your townhouse is connected to other townhouses and an improper installation could result in a fire. So as to protect your neighbors, the association has a legitimate interest in ensuring that you hire a licensed and insured contractor who installs the charging station pursuant to building codes.

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