No Candidates Run for Association Directors

QUESTION: What happens when a seven-unit condominium has no candidates for the board of directors at the annual election? One of the owners suggested that we contact a management company to provide services to the association but the members killed the idea. How do we continue to operate?

ANSWER: It appears that none of the owners cares enough about their investment. As owners, all of you have responsibilities and liabilities. Are you going to just let the place fall down?

If no one is willing to collect assessments, how are you going to pay for insurance and maintain the property? Soon, owners will decide that they don’t have to pay assessments any more. Even if you hire a manager, the board still has the responsibility of overseeing the affairs of the association.

However, hiring a management company may lessen the time commitment of the board members, so that some of the owners are willing to serve.

I recommend that you call the owners together for an election meeting and vote on hiring a management company. The majority vote will decide the issue of hiring a manger. Remind the other owners that you all need to protect your investment by maintaining the property as stipulated in the declaration.

If you are still unsuccessful in getting a vote to hire a management company and no one is willing to serve on the board, then you’d better sell your condominium because it will surely decrease in value if the common property and association records aren’t maintained.

Board Won’t Permit Sale Before 2 Years

Q: I bought a condominium in a luxury high-rise building about nine months ago. I now want to sell my unit, but I have been informed by the association board of directors that the rules and regulations prevent resales within the first two years of purchase. I signed the rules and regulations, but I did not see the paragraph containing this restriction. Real estate brokers have told me that the board cannot legally restrict my right to resell. What is the law?

A: Check with your attorney for legal advice. Most of the attorneys that I have consulted say that this kind of restriction must be in the association’s declaration of covenants, conditions and restrictions (CC&Rs;) to be enforceable.

Attorneys will differ as to their opinion on the legality of restricting resale rights. This situation sounds like the type that will end up in the hands of the attorneys eventually unless you can work out a solution with your board of directors. If they are willing to concede that the restriction can be waived in your case, then you and the association can both avoid legal fees.

Should Owner Fee Be Based on Unit’s Size?

Q: It is my understanding that many condominiums have a monthly assessment that is the same amount for all owners regardless of the square footage of the unit or percentage of the common area.

However, our association’s documents set the monthly assessments and special assessments based on the size of the unit. The low-paying owners outnumber the owners who pay the larger assessments, so it is unlikely that a vote would result in any change. Are you aware of any action taken to rectify this situation?

A: I have not researched legal action of this type, so I do not know of any precedent-setting cases here in California. Consult an attorney who specializes in community association law.

I am aware of many associations that have debated and are debating this issue. Unequal assessments and unequal voting percentages are often a nuisance for the budget preparer, the bookkeeper, the accountant and the election judge at the annual meeting, so in my opinion equal assessments are sensible. However, the issue of fairness is always brought into the discussion.

Many people assume that the owner of a penthouse unit should pay more for the monthly assessment because the owner paid a higher purchase price, but what effect does the penthouse view, which probably influenced the purchase price, have on the maintenance cost to the association?

Is it unfair to automatically assume that the owners of the larger units will have higher water and electrical usage?

Here’s my advice: You knew or should have known what the assessment differential was when you purchased your unit. If you were willing to live with it then, perhaps you can live with it now. It is probably unrealistic to try to change it if you don’t have the support of a majority of the owners. You will simply make enemies if you try.

Security Officers Biased Against Owner

Q: Our condominium association has a security staff that is discriminating against certain owners. Some of the security people speak openly of “selective enforcement.” I have numerous witnesses to the fact that I am their “selectee.” Can citations and fines by our security personnel be appealed to the state courts? Do we give up our rights when we buy a condo?

A: The association should provide an appeal process before a fine is collected. You should have the right to a hearing before the board of directors. If you are being denied due process, then I urge you to discuss your options with an attorney. Your association’s enforcement proceedings are completely separate from the state court system.

I am adamant in my support of the board if you have disobeyed a fair and reasonable rule. Rule enforcement is often a difficult and thankless job. On the other hand, if the rules established by the board are unfair or if they are being enforced unfairly, then you should take action to change things.

Ask to have the matter placed on the agenda of the next board meeting. You have a right to be heard. If the board does not allow you to speak, then put your request in written form and try again. When you are given the opportunity to speak, be reasonable and courteous, and have your thoughts well-organized so that your comments are brief. You have the right to bring your attorney if you feel that it is necessary.

Wants Permission for Christmas Lights

Q: We live in a 29-unit condominium in Anaheim. Our association documents state that nothing is to be attached to the common area or the exterior of the homes. Could the board make a temporary exception and allow Christmas lights to be attached to the building with some simple guidelines to be followed by the homeowners?

A: You are obviously planning ahead so that by December you will be able to put up your exterior lights and celebrate accordingly. Yes, it is usually within the board’s power to make exceptions for good reason.

The board members may not want to deal with this matter because of the time it would take to draft a proposed policy. Therefore, I suggest that you speak with the board and volunteer to write a draft of a new lighting policy that the board can then consider for adoption.