Getting Ready for 2014

Begin collecting consents to receive notifications by e-mail. The new law will permit associations to give electronic notices to members who agree to accept such method of communication. In a large association the savings of cutting down on postage and paper could be very substantial, but even small associations will benefit. Encourage your members to sign an “opt in” notification. Your association can include it in the next assessment mailing, and have them available at the management office and at board meetings. Remind owners that this will not only save them space and clutter, but will help keep the budget (and therefore assessments) under control.

Review your disciplinary hearing policies (or create some). The new law will require that when the association imposes a reimbursement claim against a member, that claim must be handled using the same process as for member discipline. The law currently does not provide much guidance to boards as to how to conduct these hearings, and unfortunately that is not going to change in the new year. In my experience, boards, having little guidance in the law about how to conduct these hearings, often take far too long. The increase in these hearings in the future means your HOA closed sessions are going to become much longer. Consider adopting policies regarding the conduct of disciplinary and reimbursement hearings, including a reasonable time limit on the homeowner opposing the discipline or reimbursement item.

Begin assembling your HOA’s “Annual Budget Report” and “Annual Policy Statement”. These are collections of disclosures which your association is already required to make, with some very small additional items. Instead of waiting until January 1 to use this new format of annual member disclosure, begin using it when your 2014 budget is distributed to the membership. Check the new Sections 5300 and 5310 for the list of which disclosures go in which packet.

Get ready to update your CC&Rs and Bylaws so that any current CID act sections (1350-1379) are updated to the new Civil Code sections (4000-6150). The new law (at Section 4235) allows boards to amend their CC&Rs and Bylaws ONLY to update any references to the CID act to replace the old statute numbers with the new statute numbers. Most of the HOA law firms already have conversion charts, and one is also available at www.HOAhomefront.com. A board could use a conversion chart and prepare its own amendments, but consulting your HOA lawyer is a good idea. Amended CC&Rs and Bylaws can be prepared by year end, and then adopted by the board at its first open meeting in 2014.

Boards and managers on their “A game” will be ready for 2014. Associations beginning the year unprepared may experience some confusion until they catch up. Be ready.

Written by Kelly G. Richardson

Kelly G. Richardson Esq., CCAL, is a Fellow of the College of Community Association Lawyers and a Partner of Richardson | Ober | DeNichilo LLP, a California law firm known for community association advice. Submit questions to [email protected]. Past columns at www.hoahomefront.com. All rights reserved®.