Reader Questions - Pets, Corporate Suspension, and Borrowing from Reserves

Kelly,

I read your article in the paper and am curious about how many dogs are allowed in a town home? My next door neighbor has 4 large dogs.

Sometimes they howl when no one is home. If the yard is not sprayed down daily since it is concrete, the smell is horrible. My association doesn’t seem to want to do anything. They want us to send emails to them and then that way the neighbor will know where its coming from. We have already talked to the neighbor about smells for years and they apologize & clean up for a while but then it eventually gets bad again. I just think 4 big dogs is not right in such a small area. I don’t think this should be up to us to take care of.

J.S., Mission Viejo

Dear J.S.,

Your HOA documents may not have a limit on the number of pets, but a basic neighborly responsibility is the avoidance of nuisance. Neighbors must take steps to avoid smells, noises or other matters which rise to the level of unreasonable interference with normal living. Associations struggle with issues primarily involving just two neighbors, and boards should be cautious about deciding which of two neighbors is reasonable and which is not. You could “lawyer up” and spend a lot of money destroying the relationship between you and your neighbor. On the other hand, you could continue to do what you are doing – continue in contact with your neighbor, reminding them that this is an ongoing focus. No easy answer here, except the best resolution is old fashioned communication and neighborly cooperation.

Kelly

Kelly,

We are a small 8 unit incorporated condo association. We have two issues: First, our corporate status has been suspended. I’ve been trying to go to the Franchise Tax Board to get answers as to how to get reinstated. Secondly, in recent years our Board wiped out two reserve accounts without notice to the homeowners. This was done to pay for overages in a re-landscaping project (which also didn’t get homeowner approval).

Do you have any suggestion?

R.S., Dana Point

Dear R.S.,

The suspension of corporate status is very bad for the association. It means that the state presently does not recognize your association exists. That means the association cannot protect its rights in court, or even protect its corporate name. Reinstatement should be a high priority. This can be avoided in the future by filing annual tax returns, and by filing the simple forms required by the Secretary of State – the SI-100 form and the SI-100. Those forms are available on line. Associations can and should check corporate status at http://kepler.sos.ca.gov. If you find that information is out of date, or even that the association is suspended, file updated forms as soon as possible.

As to the reserve withdrawal issue, boards often withdraw money not for scheduled reserve items but for other “important” expenses. The problem is, it has to be repaid into the reserve account in one year. The expense may have truly been quite important, but a board needs to lead the association to the disciplined action of a special assessment to repay the borrowing. The reserve account is not a slush fund, but is a way of setting aside money for the daily depreciation of assets which are aging and wearing out.

Best,
Kelly

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®.