March 30, 2014 |
Question: I'm the president of our homeowner association mainly because no one else wants the job. We live in a prestigious area of Los Angeles and have fewer than 30 units. Because nobody wants to be on our board we hired a management company. They're not a California company. Their head office is out of state, and we've never seen or been to their California place of business and do not know where it is or that they even have a California office. A management representative came and picked up our files and documents, including owners' personal information and accounts, and gave us their P.O. box number.
March 23, 2014 |
Question: Our association board allows the manager to control all the homeowners association notices that owners are supposed to get. The manager picks and chooses who will receive notice of meetings, elections and other important issues. Sometimes she puts these vital notices in a locked glass case, way at the other end of our huge complex, takes a picture of them as proof the notices were put up, then orders the security guards to remove those same notices from the case after the snapshot.
March 9, 2014 |
Question: Our board is very lax when it comes to financials. We don't get timely information, and the information we do get from management and our treasurer is so sparse that owners and the board alike don't have any idea where our association stands. Is there some kind of format that financial statements must follow? Answer: Civil Code section 5305 pertains to standards used for preparation of review of the association's financial statement. It states that unless the governing documents impose more stringent standards, a review of the association's financial statement shall be prepared in accordance with generally accepted accounting principles by a licensee of the California Board of Accountancy for any fiscal year in which the gross income to the association exceeds $75,000.
March 2, 2014 |
Question: Is our homeowner association's board obligated to disclose legal actions to titleholders? Does the board have a duty to disclose the costs of legal fees incurred for such legal actions, or do we owners just sit back and wait to be slammed with several thousand dollars' worth of special assessments months or years later to cover those fees? Our pro forma annual report is sparse, so how can owners protect themselves from something like this? Answer: Owners should never sit back and wait to be slammed with assessments.
January 26, 2014 |
Question: I am a board director at my homeowners association. Receipts produced by our management company personnel requesting reimbursement for "office supplies" showed purchase of a $21 bottle of Tequila. At the board meeting I showed that office supply receipt to the board and demanded homeowners be reimbursed. Totally ignoring my demands that the association be reimbursed, the president joked, "Tequila goes better with lime. " That wasn't the first improper and unauthorized expenditure on the association's office supply account the president authorized on his own. I found purchases for over-the-counter drugs, candies, gum, cigarettes, party supplies, home decorating items and pet food, none of which our association ordered or received.
December 15, 2013 |
Question: I own a house and my mom owns a one-bedroom condo in the same homeowners association development. We want repairs made and we're frightened because our board directors constantly threaten owners; if we violate any of their rules or governing documents they'll fine and then sue us. Those threats are reduced to writing by the board's voracious attorney, who threatens to send us invoices for legal fees. Our properties are not in trusts and we're unsure how to proceed. What are the costs of setting up a trust and will a trust protect us from litigation by the association?