How Washington D.C. Affects California HOAs?

While normally one thinks of Sacramento as the source of homeowner association law, Washington D.C. is increasingly becoming involved. Three pending bills in Congress will, if passed, affect California HOAs.

HR 2887 and SB 1480

House Resolution (HR) 2887 and Senate Bill (SB) 1480 would amend the Stafford Act, the law under which the Federal Emergency Management Agency (“FEMA”) operates. FEMA has in recent years taken the position that HOAs are not covered by the Stafford Act because FEMA considers them “business associations” and therefore are not eligible for emergency assistance. This caused great consternation in 2012 during Hurricane Sandy, which pounded the East Coast, particularly New Jersey. Based on their interpretation of the Stafford Act, FEMA refused to assist common interest communities with emergency aid such as removing downed trees. HR 2887 and SB 1480 would remove this discrimination and entitle association residents the same protection as other citizens during times of disaster.

FHA and FNMA

In 2010, the FHA and FNMA (“FannieMae”) changed the way condominium loans were approved for loans, announcing that the two agencies would no longer approve individual condominiums for preferred residential mortgages, but only would approve the entire condominium project. They issued project eligibility guidelines which, for many (if not most) condominium associations, were hard to meet. This was unprecedented, in that a federal quasi-governmental agency had imposed requirements on all associations in the country. Many associations still struggle with the guidelines and are unable to comply, even though FHA and FNMA eased their rules somewhat a few years later.

HR 3700

HR 3700, called the “Housing Opportunity Through Modernization Act of 2015,” was introduced in October 2015. Section 301 of that bill would provide further relief to condominium associations by instructing the H.U.D. Secretary to streamline the recertification process, decrease the owner-occupied requirement (currently 50%) to 35%, and allow more flexibility with regard to the commercial component of mixed use condominium projects.

HR 1301

HR 1301, the “Amateur Radio Parity Act”, seeks to protect “ham” radio operator usage by limiting the right of common interest communities to ban the antennae or place limitations on such equipment. The idea is that in times of emergency, an amateur radio operator can be very helpful in facilitating communications. However, if a private community did not wish to allow large and unsightly antennae in their community, this proposed law would prevent the community from doing so. While the benefits of amateur radio are relevant, so also are the property rights of a community to determine what they will accept.

Others

There are other ways in which federal law impacts California HOAs – including federal Fair Housing law, the FCC (satellite dish antennae) and the EPA (lead paint removal restrictions), to name a few.

Some national organizations such as the Community Associations Institute and National Association of Realtors® monitor issues such as these, and it is clear that Sacramento no longer can be the only focus of California homeowners.

In addition to contacting your state legislators from time to time about issues involving California HOAs, perhaps it is time to contact your representatives in Washington as well, and remind them that they very much are affecting housing in California – and let them know whether you support or oppose the above three bills. 

For information on legislation in Congress, visit www.congress.gov and enter the bill number.

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®.