Collecting Fee on Condo in Foreclosure

QUESTION: I serve on the board of a small condominium association. One of the owners has defaulted on his mortgage loan and he owes the association over $3,000 in unpaid monthly assessments.

A representative of the lending institution stated over a year ago that they were going to foreclose on the unit. There have been numerous delays and postponements of the foreclosure date. In the meantime, the association is not able to collect the monthly assessment.

Since we are a small association, the loss of funds is critical. What can we do?

ANSWER: Unfortunately, there isn’t anything that you can do about this situation. Many associations are faced with cash flow problems because of uncollected assessments.

There are ways that an attorney or collection service might be able to collect the unpaid assessments. However, if the owner really doesn’t have any money to pay, the association will just be spending money without results.

The delinquent owner is obligated to pay the cost incurred to collect the debt, but if there is no money to be obtained from the owner, then the association may be left with attorney bills or collection service costs that must be paid.

Board Must Determine Rules on Parking

Q: Our homeowner association has had difficulty in enforcing parking regulations. A new parking enforcement chairman was appointed by the board president. This new chairman, an owner volunteer, is now berserk with power. He continually walks around the complex confronting other owners. He uses a threatening manner with the teen-age residents that I fear will result in some form of retaliation. I believe that he is being lenient with some people but is especially tough on those who he calls “habitual violators.”

We board members are at odds. Some board members like the new “get tough” approach. Others don’t want to offend a willing volunteer even though they don’t like his tactics.

What can we do to restore peace without backing off from enforcing the rules?

A: The parking enforcement chairman reports to and takes direction from the board of directors. Committee chairmen do not have any power beyond the authority granted by the board.

The board of directors should determine what the enforcement methods will be. Rules must be enforced but owners should not be treated in a manner that will create hostility against the association or its leaders.

The parking enforcement chairman must be told that violators will be treated fairly, reasonably and consistently. The board of directors has a duty to see that his procedures are just. If parking penalties are levied against owners, the owners have a right to contest the penalty at a hearing with the board. Do not ignore the owners’ rights.

After the board has talked with the enforcer about his methods of responsibilities, determine whether he is suitable for this position. Perhaps you will want to consider contracting a security firm to enforce the parking rules. Of course, the cost of contract security versus volunteer labor may be a factor, but the association’s liability and reputation should be considered also.

Remember that the board should make its decision based on the good of the whole association.

Laws on Homeowners’ Rights in Library

Q: In the Sept. 12 edition, your column discussed the California Civil Code Section 1363 regarding homeowners’ rights and the California Corporations Code Sections 8330 through 8338 regarding members’ access to records.

I am a condominium owner in the Coachella Valley. I would like to know how to obtain copies of these laws.

A: The cheapest way to obtain copies would be to visit your neighborhood library. Most libraries have a reference section where you could find the California statutes and they often have photocopy machines for readers’ use.

While you are there, I urge you to read all of the Davis-Stirling Common Interest Development Act, which runs from Section 1350 to 1373 of the Civil Code. These sections of the code pertain to operation and management of common-interest developments, including condominiums, community apartment (own-your-own) projects, planned developments (homeowner associations) and stock cooperatives.