2020 community association law legal symposium
TRANSCRIPT
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2020 Epsten, APC Community Association Legal Symposium2020 Epsten, APC Community Association Legal Symposium
2020 Community Association LawLEGAL SYMPOSIUM
The year the laws changed so frequently, they were seemingly written in chalk!
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2020 Epsten, APC Community Association Legal Symposium
New LegislationPrepared and Moderated by Susan M. Hawks McClintic, Esq.Presented by David A. Kline, Esq., Rhonda R. Adato, Esq.,Jacquelyn E. Quinn, Esq., Emily A. Long, Esq., & Carrie M. Timko, Esq.
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2020 Epsten, APC Community Association Legal Symposium
AB 3182: Rental Restrictions
Civil Code §§ 4740, 4741
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2020 Epsten, APC Community Association Legal Symposium
Rental Cap
The new law will state:
“A common interest development shall not adopt or enforce a provisionin a governing document or amendment to a governing document thatrestricts the rental or lease of separate interests within a common interestdevelopment to less than 25 percent of the separate interests. Nothing inthis subdivision prohibits a common interest development from adoptingor enforcing a provision authorizing a higher percentage of separateinterests to be rented or leased.”
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2020 Epsten, APC Community Association Legal Symposium
Rental Cap
• Cannot prohibit rentals (only number of rentals)
• Can cap separate interest rentals to 25%
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2020 Epsten, APC Community Association Legal Symposium
Rental Cap
Section 4740(a) already says:
“An owner of a separate interest in a common interest development shallnot be subject to a provision in a governing document or an amendmentto a governing document that prohibits the rental or leasing of any of theseparate interests in that common interest development to a renter,lessee, or tenant unless that governing document, or amendmentthereto, was effective prior to the date the owner acquired title tohis or her separate interest.”
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2020 Epsten, APC Community Association Legal Symposium
Short-term Rentals
§4741(c) states:
“This section does not prohibit a common interest development from adopting and enforcing a provision in a governing document that prohibits transient or short-term rental of a separate interest for a period of 30 days or less.”
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2020 Epsten, APC Community Association Legal Symposium
4741(c) – Let’s Break it Down!
This section:
• Does not prohibit a common interest development
• from adopting and enforcing a provision in a governing document
• that prohibits transient or short-term rental of a separate property interest
• for a period of 30 days or less.
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2020 Epsten, APC Community Association Legal Symposium
Short-term Rentals
• AB 3182 does not preclude common interest developments from prohibiting transient or short-term rentals.
• Applies to rentals lasting 30 days or less.
• Minimum rental periods longer than 30 days?
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2020 Epsten, APC Community Association Legal Symposium
ADUs & JADUs: Overview
• Reminder: Civil Code Section 4751• Still applies to only planned developments• Can’t prohibit or unreasonably restrict construction or use of ADU or JADU• Can impose “reasonable restrictions”
• What is an ADU/JADU
• What is a “reasonable restriction”
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2020 Epsten, APC Community Association Legal Symposium
ADUs & JADUs: Rental
• Association may restrict short term rentals (e.g., 30 days or less)of ADUs/JADUs
• ADUs/ JADUs not treated as separate interests for purposes of rental caps
• Owners permitted to build one ADU and one JADU per lot(Previously, one ADU or one JADU per lot)
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2020 Epsten, APC Community Association Legal Symposium
ADUs & JADUsADU:
New Build in Backyard(Rented)
JADU: Garage Conversion(Owner Lives Here)
PrimaryResidence(Rented)
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2020 Epsten, APC Community Association Legal Symposium
Examples of Prohibitions & Unreasonable Restrictions: ADUs and JADUs• Owner may rent out no less than the entire separate interest• Owner may not convert a garage into a living space• Owners must park cars in garages• Owners who rent out their lots may no longer use common area
facilities
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2020 Epsten, APC Community Association Legal Symposium
Examples of Prohibitions & Unreasonable Restrictions: Separate Interests• Owner must reside on lot/unit for one year prior to renting it out• Owner may only rent out a certain number of lots/units within
community• Board approval must be obtained of a rental agreement prior to
renting out lot/unit
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2020 Epsten, APC Community Association Legal Symposium
Allowable Leasing Provisions
• Copies of leases must be provided to management• Provision in lease states that tenant must follow governing
documents• Tenants must age qualify in 55+ senior housing communities
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2020 Epsten, APC Community Association Legal Symposium
Penalties for Noncompliance
• Association that “willfully violates” = Penalty not to exceed $1,000• PLUS actual damages
$1,000 + …
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2020 Epsten, APC Community Association Legal Symposium
What Do You Need to Do?
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2020 Epsten, APC Community Association Legal Symposium
What MUST you Amend?
• Rental caps more restrictive than 25%
• Rental term limits over 30 days
• Ownership or residency requirement before renting
• Restrictions prohibiting rental for less than the entire dwelling/lot
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2020 Epsten, APC Community Association Legal Symposium
What SHOULD you Amend?
• Provisions restricting garage use
• Architectural restrictions
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2020 Epsten, APC Community Association Legal Symposium
When Must You Comply?
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2020 Epsten, APC Community Association Legal Symposium
Compliance Dates
By 1/1/2021: Unreasonable Rental Restrictions Prohibited
By 12/31/2021: Amend Governing Documents to Conform
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2020 Epsten, APC Community Association Legal Symposium
Other Legislation
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2020 Epsten, APC Community Association Legal Symposium
COVID-19&
Employees and Employment
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2020 Epsten, APC Community Association Legal Symposium
Debt Collection
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2020 Epsten, APC Community Association Legal Symposium
Wildfires &
Residential Property Insurance
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2020 Epsten, APC Community Association Legal Symposium
Balcony Bill Reminder
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2020 Epsten, APC Community Association Legal Symposium
Inspection of Elevated Elements
• Buildings with 3 or more multi-family dwellings
• Once every 9 years by licensed inspector
• First inspection completed by Dec. 31, 2024
• Must include report to the board and in reserve study
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2020 Epsten, APC Community Association Legal Symposium
Case LawPrepared by Dea C. Franck, Esq.Presented by William S. Budd, Esq., Pejman D. Kharrazian, Esq., Dea C. Franck, Esq., & Rian W. Jones, Esq.
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2020 Epsten, APC Community Association Legal Symposium
Insurance
Auburn Woods I Homeowners Assn.v. State Farm General Insurance Co.
(Sep. 29, 2020, No. C085749) Ordered for partial publication only.
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2020 Epsten, APC Community Association Legal Symposium
TakeawayUnderstand Insurance Policies
Request an Annual Summary
Meet with Insurance Expert
Annual Letter from Expert to Membership
Auburn Woods I v. State Farm
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2020 Epsten, APC Community Association Legal Symposium
Director Liability
Coley v. Eskaton(2020) 51 Cal.App.5th 943
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2020 Epsten, APC Community Association Legal Symposium
Coley v. Eskaton
• Developer “stacked” the Board with its employees• Lodge wasn’t profitable• Developer/Directors:
• Had a clear conflict (incentivized to shift costs to Owners)• Shifted security costs to Owner without any justification• Divulged privileged information to their private counsel
• Developer and its employeesliable for damages and over $600k in attorney’s fees and costs
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2020 Epsten, APC Community Association Legal Symposium
Takeaway
Coley v. Eskaton
Be Mindful of Conflicts
Disclose or Recuse
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2020 Epsten, APC Community Association Legal Symposium
Fair Housing
Hill v. River Run Homeowners Ass’n(D.Idaho 2020) 438 F. Supp. 3d 1155
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2020 Epsten, APC Community Association Legal Symposium
Hill v. River Run Homeowners Ass’n
“Adult Use Only”
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2020 Epsten, APC Community Association Legal Symposium
Hill v. River Run Homeowners Ass’n
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2020 Epsten, APC Community Association Legal Symposium
Takeaway
Hill v. River Run
Review Governing Documents
Make Amendments as Necessary
Consult with your Attorney!
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2020 Epsten, APC Community Association Legal Symposium
Fair Housing
Sanzarov. Ardiente Homeowners Ass’n, LLC
(D.Nev. 2019) 364 F. Supp. 3d 1158
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2020 Epsten, APC Community Association Legal Symposium
Sanzaro v. Ardiente Homeowners Ass’n
Las Vegas, NV
Permanently Disabled Resident
Adopts Angel, the Chihuahua
and…
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2020 Epsten, APC Community Association Legal Symposium
Takeaway
Sanzara v. Ardiente
No magic words
Know the kind of information you can request
Understand difference between service vs. emotional support animal
Act promptly when accommodation request received
Keep information regarding the request private
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2020 Epsten, APC Community Association Legal Symposium
Review Online Resources
• Reasonable Accommodations (HUD & DOJ Joint Statementhttps://www.justice.gov/sites/default/files/crt/legacy/2010/12/14/joint_statement_ra.pdf
• Reasonable Modifications (HUD & DOJ Joint Statement)https://www.hud.gov/sites/documents/reasonable_modifications_mar08.pdf
• Animals as a Reasonable Accommodation (HUD Notice) https://www.hud.gov/sites/dfiles/PA/documents/HUDAsstAnimalNC1-28-2020.pdf
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2020 Epsten, APC Community Association Legal Symposium
Closing RemarksBy Kieran J. Purcell, Esq.
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2020 Epsten, APC Community Association Legal Symposium
ClosingRemarksPresented by Kieran J. Purcell, Esq.
COVID-19 in 2021
Q&A
MUST take survey for CEU’s
…and, attend both Part I & II
How did we do?
See You Next Week!
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2020 Epsten, APC Community Association Legal Symposium
THANK YOU!
See You Next Week
Tuesday, December 8th
10:00 a.m.