New law is no boon

The new regulations governing collections of delinquent homeowner dues in common-interest developments are not reasons for owners to celebrate as the headline, “Reasons for Owners to Celebrate,” Dec. 18, states.

Laws were already on the books that gave condo owners multiple notices of delinquent assessments, opportunities to request payment plans and opportunities to mediate before the account was turned over to collection. Moreover, the foreclosure procedure itself (whether by trustee or through the court system) has additional multiple notice periods and further opportunities for payment plans and mediation.

Senate Bill 137 ties the association’s hands. The volunteer boards now will have to spend even more time administering the association’s affairs with greater exposure to claims of breaches of some small, esoteric steps in the new procedure. Without full financial participation by all owners, the association’s maintenance and repair will suffer. In small associations, it could mean that there will be insufficient funds to repair a roof or to pay for water, electricity or insurance premiums.

In addition, SB137 is poorly drafted and conflicts with other laws, creating a quagmire that will take years to unravel through costly litigation that associations cannot afford.

When associations run short of cash and raise dues to offset the uncollected assessments, no one will celebrate.

STEPHANY YABLOW

North Hollywood

The writer is a real estate attorney whose practice includes advising homeowner associations.