Parked Motor Home Must Go if CC&Rs; Say So
QUESTION: I live in a homeowners association neighborhood that consists of 150 single-family homes on one- to two-acre lots. Last year, I purchased a motor home and I have been parking it on my property for the last few weeks.
The association president called and told me that motor homes are not allowed in the neighborhood.
I had no intention of moving the motor home but before I could get any further information, I received a very official letter. The notice stated that I would be fined if I didn’t remove the motor home or attend a hearing to answer the accusation that I am violating the declaration of covenants, conditions and restrictions (CC&Rs;).
I don’t have a copy of the CC&Rs; but information that was enclosed with the letter says that motor homes, boats and trailers can’t be parked or stored on the lots or in the driveways.
Why wasn’t I informed about this when I purchased my property? Does the association have the right to tell me what I can do? Do they have the right to fine an owner for violation of the CC&Rs;?
ANSWER: The declaration of CC&Rs; should have been included in the disclosure information you received before the closing of escrow when you purchased your home. The CC&Rs; contain certain restrictions that owners are required to obey. By purchasing the property, you automatically agreed to abide by these restrictions.
The association, through the board of directors, does have the right to enforce the legal documents. You need to read these to find out what obligations you have as an owner and what authority the association has regarding fines or other forms of enforcement.
Remember that the board of directors is a volunteer group who should be glad to respond to your questions. If you need to obtain a copy of the CC&Rs;, you should talk with the board president. If the association has a property management company, the manager should be able to provide a copy for you. You may be required to pay a photocopying charge.
I hope that, after researching the association’s authority, you will resolve this problem by removing your motor home. The other owners have the right to expect that everyone will abide by the legal documents. The board has the authority and the obligation to carry out the enforcement process in a fair and businesslike manner.
How to Amend Your Association’s Rules
Q: How can our homeowner association change the legal documents so we can levy fines for violation of the rules?
A: The change you are contemplating is called an amendment. Read the association’s declaration of covenants, conditions and restrictions (CC&Rs;). It will tell you how amendments are to be approved. Usually, the proposed change must be submitted to all of the owners for a vote of the entire membership.
If after reading your CC&Rs; you still do now understand how to proceed, you should consult an attorney who specializes in community association law. The attorney can explain the amendment process and help with the wording of the proposed amendment.
After an amendment is passed, it must be recorded in the county recorder’s office. You will have to show that the amendment had proper approval of the specified majority as defined in your CC&Rs.; The recording can be done without an attorney, but I find it is well worth paying for an attorney’s help so you can be sure it is done properly.
Steps to Take Before Changing Management
Q: Our homeowners association is managed by a property management company. The board of directors is not satisfied with the performance of the manager. The manager does not return phone calls promptly and is often unprepared for board meetings.
One of the board members feels we need to pay the manager more to get more service. What should we expect from our manager? Should we look for another management company?
A: The level of service can vary greatly from one company to another. The board must read the management contract to find out exactly what services the manager is supposed to provide.
Before the board decides to change management companies, the board president should discuss your concerns with your current manager. Be specific about the reasons for your dissatisfaction. Review the management contract with the manager, noting the areas that need improvement. If the service you want is beyond the scope of the contract, then perhaps the board will want to renegotiate.
If you feel the manager’s performance is unacceptable, be fair and honest as you verbalize your complaints. Open communication is very important but you don’t want to destroy the relationship at this point.
Make notes during your conversation and follow it up with a letter to the manager outlining the topics discussed and the date that you wish to re-evaluate the manager’s performance. A copy of your letter should be sent to the manager’s supervisor or the management company owner. Be sure to allow a reasonable amount of time for the manager to improve his or her performance.
If improvement isn’t noted within a reasonable time, talk to the supervisor and the owner about getting another manager assigned to your association. Try a different manager before you write off the entire management company. Changing management companies should be the last resort.
Copy of Annual Budget Needed to Justify Hike
Q: I live in an 80-unit condominium. I received a statement for my association assessment that said I owed an amount $535 higher than I have been paying in the past.
It said, “On April 1, 1991, an assessment increase goes into effect.” A budget for 1991 was not distributed. When I asked about this in January, the board president said they were going to continue with the same budget they have had in the past.
I have lived here for almost three years and I don’t believe a budget has ever been sent out to all the owners. Now that the board has increased the assessment, I want to know where my money is going and why the extra money is needed. What can I do?
A: Some boards seem to think they can just pay the bills as received and if the income isn’t sufficient to pay all of the bills, then they just arbitrarily increase the assessments. This is not a businesslike approach, and is, in fact, illegal.
The board is obligated to distribute an annual budget each year. The budget should show the estimated expenses for operating and maintaining the property, and the amount of reserve funds the board is setting aside for future repair and replacement. All the owners should receive this information annually, whether the assessment amount changes or not.
California law requires that the annual budget be distributed from 45 to 60 days before the beginning of a new fiscal year.
New legislation that took effect in January, 1991, states that a board of directors that fails to distribute an annual budget may increase the amount of the annual assessment by the percentage of increase that appears in the association’s legal documents. Previously, the California Civil Code, Section 1366, allowed the board to increase assessments as much as 20% over the previous year’s assessment, regardless of more restrictive limits within the association’s legal documents.
Now, if the association’s legal documents limit the increase to only 5%, for instance, and if the board has not distributed an annual budget, it is not allowed to increase the budget under the more liberal provisions of Section 1366. Instead, the board must limit the increase to the amount or percentage that is specified in the association’s documents.
You haven’t indicated the percentage of the increase that the board has approved. You may want to check to see if the increase is such that it would be illegal.
At any rate, you are entitled to receive a copy of the annual budget and your board needs to be reminded of this. Go to your local library and get a copy of Civil Code Section 1366 with the 1991 amendment. Show this to your board and ask if you can assist them in complying with this law. In my opinion, an association that does not comply with the law will have difficulty collecting the increased assessment amount.
Hickenbottom is past president of the Greater Los Angeles chapter of the Community Associations Institute (CAI), a national nonprofit research and educational organization. She welcomes readers’ questions, but cannot answer them individually. Readers with questions or comments can write to her in care of “Condo Q&A;,” Box 5068, Thousand Oaks, Calif. 91360.
