Beaumont Tashjian Law Blog

By: A.J. Jahanian, Esq.

Over the past few years, board members and management alike have had to deal with the challenges of the “sharing economy.” Sites such as Airbnb and VRBO have connected members of common interest developments to outside, non-member renters, in an unprecedented fashion, leading to the “commercialization” of residential communities. Boards and management are increasingly pressed with the issue of regulating short-term rentals and protecting their communities against excess use and nuisances, such as noise and increased traffic, associated with transient tenancy.

Complicating matters, the Court in Greenfield et al. v. Mandalay Shores Community Association has added another wrinkle that may limit a board’s ability to regulate short-term rentals/transient tenancy. In Greenfield, the plaintiffs owned a single-family home in the Mandalay Shores beach community, which they began renting to others for rental periods of less than thirty (30) days. Thereafter, the association adopted a resolution barring the rental of homes for less than 30 days, and any violations would result in significant fines. The plaintiffs then sued to enjoin (i.e., stop) the association’s proposed ban on short term rentals.

By: Jeffrey A. Beaumont, Esq.

Myth. Our community doesn't have common area meeting space so we don't need rules addressing the new law [SB 407].

Fact. Adopting rules in light of the new law would address meetings in the common areas, such as lawns, community pool, etc., and door to door solicitation and canvasing ... so it really applies to every community! Creating rules would establish reasonable hours and days of the week when a member can solicit/canvas; and establish fines and penalties for violations; etc. among other things. Without rules and regulations communities are exposed to unbudgeted expenses and conflict.

This myth is a common response we have received in response to the new law. Now that the law has been effective for several months, let's revisit its purpose and details.

The California Legislature passed this bill with the intent to “ensure that members and residents of common interest developments have the ability to exercise their rights under law to peacefully assemble and freely communicate with one another and with others with respect to common interest development living or for social, political, or educational purposes.” (Civil Code Section 4515(a).)  The law has significant impact on all communities, with or without common area meeting spaces. 

Civil Code Section 4515 reads:

“(b) The governing documents, including bylaws and operating rules, shall not prohibit a member or resident of a common interest development from doing any of the following:

(1) Peacefully assembling or meeting with members, residents, and their invitees or guests during reasonable hours and in a reasonable manner for purposes relating to common interest development living, association elections, legislation, election to public office, or the initiative, referendum, or recall processes.

(2) Inviting public officials, candidates for public office, or representatives of homeowner organizations to meet with members, residents, and their invitees or guests and speak on matters of public interest

Senior Partner, Jeffrey A. Beaumont, Esq., has been selected to speak at the CAI National 2018 CCAL Law Seminar on February 1^st.  Mr. Beaumont will be presenting, “The New Normal: Transgender and Gender Variance in Community Associations.
Read more . . .

Senior Partner, Jeffrey A. Beaumont, Esq. and Partner, Lisa A Tashjian, Esq. have both been nominated for the Chapter’s Speaker of the Year Award.  Each received a nomination for their luncheon educational presentations.
Read more . . .

SB 407 (Wieckowski) Noncommercial Solicitation.
Civil Code §4515
Effective January 1, 2018

SB 407 expanded on existing law which requires associations to provide equal access to common areas for candidates and members for the purpose of advocating a point of view during an election. This bill protects certain free speech rights, i.e., to meet, canvass, and distribute materials of a community association.

AB 634 (Eggman) Solar System Requirements.
Civil Code §714.1, §4600 & §4746
Effective January 1, 2018

Under AB 634, associations cannot establish a general policy prohibiting the installation or use of solar energy systems on the common area roof of the building where the owner resides, or a garage or carport assigned to the owner for exclusive use. Additionally, a vote of the membership is not required to grant exclusive use of common area for such purposes, and associations cannot require approval by a vote of the members as a condition to approval.

Chaptered September 29, 2017

This bill enacts the Building Homes and Jobs Act. The bill imposes a fee, of $75 to be paid at the time of the recording of every real estate instrument, paper, or notice required or permitted by law to be recorded, i.e., Assessment Lien, Release of Lien, Record Request for Notice of Trustees's Deed, Notice of Lis Pendens & Withdrawal, etc. not to exceed $225. By imposing new fees and duties, the bill is intended to create the Building Homes and Jobs Fund which is to be used towards affordable housing, home ownership opportunities, and other housing assistance programs.

This bill takes effect immediately as an urgency statute. However, as of November 9th, the following counties indicated the new law will go into effect as follows:

Los Angeles County - January 2018 (no specific date at this time)
Orange County - January 1, 2018
Riverside County - January 1, 2018
San Bernardino County - January 1, 2018
San Diego County - January 1, 2018
Santa Barbara County - January 1, 2018
Ventura County - January 1, 2018
Kern County - January (no specific date at this time)

As a reminder, the $75 recording fee is a cost that can be added to the delinquent owners account.

"Published" court decisions are law, and binding, while "unpublished" court decisions are not law. Although not law, unpublished decisions are extremely valuable as they illustrate how courts address various issues commonly faced by common interest developments.

Lingenbrink v. Del Rayo Estates Homeowners Association, No. D070194 (Cal.

Board members face decisions every day in performing their duties on the Board of their association. These decisions range from maintenance decisions, such as hiring contractors to perform work, to enforcing governing documents. As we all know, every decision can be second-guessed by someone and can lead to litigation and potential exposure to personal liability. It is important for board members to know what steps they need to take to make sure their decisions are not second-guessed by another member of the association (or by the court if the decision is challenged in litigation).