December 31, 2024, is the deadline for compliance with both SB721 and SB326 for multi-family houses, condominiums, and buildings with more than 3 dwelling units. Residential property owners and HOAs across California have other seemingly more important things to consider. Consequently, EEE Advisor aims to help property managers and owners to prepare and beat the deadline by getting them familiar with the inspection criteria and process to ensure compliance with the California Balcony Law.

December 31, 2024, is the deadline for compliance with both SB721 and SB326 for multi-family houses, condominiums, and buildings with more than 3 dwelling units. Residential property owners and HOAs across California have other seemingly more important things to consider. Consequently, EEE Advisor aims to help property managers and owners to prepare and beat the deadline by getting them familiar with the inspection criteria and process to ensure compliance with the California Balcony Law.

Exterior Elevated Elements (EEEs)

These two ordinances are designed for buildings that have three or more dwelling units. SB326 is for condominiums, and SB721 is for apartments and multifamily.

The term emerged following the Berkeley balcony collapse and is now used in the law to mean any elevated element structures, including their waterproofing system supports and railings, such as balconies, decks, porches, stairways, and walkways that extend beyond the exterior walls of the building and which have a walking surface that is elevated more than six feet above ground level according to these ordinances.

SB 721, SB 326 & Load-Bearing Components

According to SB 721, load-bearing components are “those components that extend beyond the exterior walls of the building to deliver structural loads from the exterior elevated element (EEE) to the building.”

SB 326 gives a more descriptive definition as components that extend beyond the exterior walls of the building to deliver structural loads to the building from decks, balconies, stairways, walkways, and their railings, all designed for human occupancy or use, supported in whole or in substantial part by wood or wood-based products, and associated waterproofing systems including flashings, membranes, coatings, and sealants that protect the load-bearing components of Exterior Elevated Elements from exposure to water.

Visual Inspection

According to SB721, the minimum requirements for inspection include “identification of each type of exterior elevated element that, if found to be defective, decayed, or deteriorated to the extent that it does not meet its load requirements, would, in the opinion of the inspector, constitute a threat to the health or safety of the occupants.”

SB326 defined visual inspection as “inspection through the least intrusive method necessary to inspect load-bearing components, including visual observation only or visual observation in conjunction with, for example, the use of moisture meters, borescopes, or infrared technology.” One of the major challenges with compliance is understanding the terms, especially visual inspection, as required by law, which is where the team at EEE Advisor will be helpful.

The inspector for balcony inspection provides a written report that lists the components that have been checked and describes their condition. Estimating the components’ remaining functional life, any necessary repairs, and reporting any immediate dangers to occupants.

The (SB326) report will be incorporated into the HOA’s next reserve study, and they will be required to keep at least two inspection cycles, that is, up to 18 years. If the inspector in the report clarified any type of threat that required repair, but the owner or board member of homeowners association decides not to repair, then the inspector has to notify the local jurisdiction. However, if a building element fails and someone is injured, there could be severe liability for the HOA and board.

The distinctions between the assessment of SB721 and SB326 are striking. The timeframe under SB326 is at least once every 9 years except for new common interest buildings. But, for SB721, subsequent inspections need to be completed by January 1st every 6 years thereafter.

Also, SB326 does not specify any fines. Although, because the inspection report is incorporated into the reserve study, it will most likely be subject to the same penalties as failure to comply with the Davis-Stirling Act. Local enforcement agencies have the ability to collect enforcement expenditures, according to SB721 and SB326.

Sample Size

Described as “the biggest divergence between the law meant for apartments and the law meant for Condos for HOAs,” sample size is defined by SB721 as “a sample of at least 15 percent of each type of exterior elevated element shall be inspected.” SB326 is a bit more elaborate, defining sample size as “a sufficient number of units inspected to provide 95 percent confidence that the results from the sample are reflective of the whole, with a margin of error of no greater than plus or minus five percent.”

Understanding the terms of the law and subsequently ensuring compliance can sometimes be a daunting task, especially for inexperienced engineers and even property managers. Consequently, it is imperative to hire the best hands to ensure safety and of course, compliance.

For further information about SB721 and SB326 offered by EEEAdvisor, visit www.EEEAdvisor.com.

Homeowners associations are led by a set of board members who are elected into office. When it comes to elections, members typically have a few options, one of them being an HOA secret ballot.

What Is an HOA Secret Ballot?

A secret ballot is exactly what it sounds like. When voting in HOA elections, members cast their votes by submitting a ballot. A secret ballot is simply a vote or ballot that does not have any identifier. That means details such as the voter’s name, address,

Homeowners associations are led by a set of board members who are elected into office. When it comes to elections, members typically have a few options, one of them being an HOA secret ballot.

What Is an HOA Secret Ballot?

A secret ballot is exactly what it sounds like. When voting in HOA elections, members cast their votes by submitting a ballot. A secret ballot is simply a vote or ballot that does not have any identifier. That means details such as the voter’s name, address, lot number, or contact information are left off the ballot. The entire point of using an HOA secret ballot is to maintain anonymity for the voter.

While secret ballots are more often used in board elections, they are not limited to that. Many homeowners associations also use them to vote for other things, such as amending governing documents and approving certain projects.

Benefits of Using Secret Ballot Voting at HOA

Some might wonder why there is even a need to use secret ballots in an HOA community. If the results are all the same, then why go the extra mile to protect the identity of the voter?

There are a couple of arguments that support the use of secret ballots or anonymous votes.

1. Eliminates Pressure

Removing the identity of the voter from the ballot can make them feel more at ease. Voters are not compelled to make certain choices in order to maintain their image.

By hiding their identity, voters can feel more comfortable voting for the person they actually want to vote for or the issue that they feel more strongly about. It also eliminates possible peer pressure as well as the use of tactics such as intimidation and threats.

2. Security

The HOA secret ballot method is arguably more secure than the traditional ballot method. When properly executed, secret voting ensures a fair election. It can also help the association avoid claims of fraudulent or biased elections.

Are Secret Ballots Required?

There are two areas to look at when it comes to determining whether secret ballots are mandatory in your HOA.

First, you should refer to your state laws. In some states, the law specifically requires that associations adopt secret voting methods when it comes to HOA elections. In others, there are certain conditions that would trigger secret ballots.

For instance, California Civil Code § 5100 demands the use of secret ballots for the following actions:

The second place to look is your governing documents. Your bylaws and CC&Rs should be able to tell you when secret ballots must come into play. The same documents should also contain the requirements and procedures related to the use of secret ballots.

Sometimes, neither your state laws nor governing documents will say anything about secret ballots. In that case, if you wish to adopt secret ballot voting, it is best to amend your governing documents to include a provision allowing its use.

When Is There a Need for HOA Secret Ballots?

Apart from state laws or your governing documents requiring it, there are other reasons to adopt the use of secret ballots. Certain situations may call for it. Here are some examples where your HOA may need to use secret ballots.

Challenging Board Positions. A lot of communities are having trouble recruiting owners to join the HOA board. As such, it is uncommon for an HOA to have more candidates than available seats on the board. When such a situation does arise, though, secret ballots are usually the better option. This is so that no person can claim that members felt obliged to vote for their neighbor rather than another candidate. Again, it circles back to eliminating pressure and making voters feel more comfortable about their choices.

The HOA Secret Ballot Process

Traditional ballots are easy — voters fill them out and either drop them off or mail them to the right place. With traditional ballots, there is no need to worry about hiding the identities of voters. But, with secret ballots, the HOA must exert additional effort to ensure that votes remain anonymous.

Generally, the process of an HOA secret ballot involves the following steps:

The Final Word

The HOA secret ballot can be a powerful and helpful tool in ensuring fair and free elections. Because there are certain complexities involved, it is important to familiarize yourself with state laws and your community’s own provisions regarding secret ballots.

Running an entire community, especially a large one, can come as a challenge. If your HOA board needs help, contact a reputable management company in your area. Browse our online directory to narrow down your search!

RELATED ARTICLES:

{ "@context": "https://schema.org", "@type": "BlogPosting", "headline": "HOA Secret Ballot: When Should This Process Be Used?", "image": [ "https://www.hoamanagement.com/wp-content/uploads/2022/10/HOA-Secret-Ballot-When-Should-This-Process-Be-Use.jpeg" ], "datePublished": "2022-10-12T07:00:30+00:00", "author": { "@type": "Person", "name": "The HOA Management Team" }, "publisher": { "@type": "Organization", "name": "HOA Management", "logo": { "@type": "ImageObject", "url": "https://www.hoamanagement.com/wp-content/uploads/2018/01/hoam-new-logo.png" } }, "description": "The experts at HOA management discuss the use of an HOA secret ballot." } { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [{ "@type": "Question", "name": "What is an HOA secret ballot?", "acceptedAnswer": { "@type": "Answer", "text": "A secret ballot is exactly what it sounds like. When voting in HOA elections, members cast their votes by submitting a ballot. A secret ballot is simply a vote or ballot that does not have any identifier. That means details such as the voter's name, address, lot number, or contact information are left off the ballot. The entire point of using an HOA secret ballot is to maintain anonymity for the voter." } }, { "@type": "Question", "name": "Are secret ballots only used in HOA elections?", "acceptedAnswer": { "@type": "Answer", "text": "While secret ballots are more often used in board elections, they are not limited to that. Many homeowners associations also use them to vote for other things, such as amending governing documents and approving certain projects." } }, { "@type": "Question", "name": "What are the benefits of using HOA secret ballots?", "acceptedAnswer": { "@type": "Answer", "text": "Removing the identity of the voter from the ballot can make them feel more at ease. Voters are not compelled to make certain choices in order to maintain their image. By hiding their identity, voters can feel more comfortable voting for the person they actually want to vote for or the issue that they feel more strongly about. It also eliminates possible peer pressure as well as the use of tactics such as intimidation and threats." } }, { "@type": "Question", "name": "Are HOA secret ballots required?", "acceptedAnswer": { "@type": "Answer", "text":"First, you should refer to your state laws. In some states, the law specifically requires that associations adopt secret voting methods when it comes to HOA elections. In others, there are certain conditions that would trigger secret ballots. The second place to look is your governing documents. Your bylaws and CC&Rs should be able to tell you when secret ballots must come into play. The same documents should also contain the requirements and procedures related to the use of secret ballots."} }] }

An 11-year-old Maltese dog has allegedly been killed by other dogs in the neighborhood of Charlee Estates. Now, the owners are suing the HOA.

Owners Sue HOA Over Dog Attack

Gloria Cabrera is the owner of Toby, an 11-year-old Maltese dog. On January 13, two pit bull mixes allegedly attacked Toby, resulting in the latter’s death. Lourdes Francisco, the owner of the pit bulls, claims her dogs are innocent. The lawsuit also names Francisco.

According to Francisco, her dogs,

An 11-year-old Maltese dog has allegedly been killed by other dogs in the neighborhood of Charlee Estates. Now, the owners are suing the HOA.

Owners Sue HOA Over Dog Attack

Gloria Cabrera is the owner of Toby, an 11-year-old Maltese dog. On January 13, two pit bull mixes allegedly attacked Toby, resulting in the latter’s death. Lourdes Francisco, the owner of the pit bulls, claims her dogs are innocent. The lawsuit also names Francisco.

According to Francisco, her dogs, Mars and Blue, did escape for about 10 minutes on the morning of January 13, but they didn’t attack anyone. Francisco said her dogs did not “come out with blood.”

Angela Arimune, the daughter of Cabrera, described the attacks. Arimune said the two dogs attacked Toby on the neck and that even her mother sustained bites and scratches.

According to Cabrera’s family, Toby is not the first dog they lost in Charlee Estates. In 2011, they had another Maltese, Mickey, who also died after another dog attacked him.

Cabrera had been walking her dogs during both incidents. After two attacks, the family no longer feels safe in the neighborhood.

HOA at Fault, Says Lawsuit

The lawsuit claims that the homeowners association of Charlee Estates is to blame, in addition to Francisco. The HOA apparently has a ban on pit bulls due to insurance liability restrictions. And the Cabrera family asserts that the HOA failed to enforce this regulation even though it was aware of the pit bulls.

Francisco, though, stands by her claim that her dogs are not pit bulls. Still, the Cabrera family wants accountability from both the HOA and the property management company.

It is not uncommon for a homeowners association to ban certain breeds of dogs from the community. But, consistent enforcement of the rules is paramount to avoid fatal incidences like this.

A community in Beaufort, North Carolina, has been experiencing an HOA flooding issue, and homeowners are not pleased.

Flood Traps Residents in Their Homes

The Town of Beaufort is certainly beautiful, but one particular neighborhood is experiencing problems with standing water. Residents living in this neighborhood believe they have an HOA flooding issue on their hands.

After a heavy downpour, standing water would flood the street and essentially trap residents in their homes.

A community in Beaufort, North Carolina, has been experiencing an HOA flooding issue, and homeowners are not pleased.

Flood Traps Residents in Their Homes

The Town of Beaufort is certainly beautiful, but one particular neighborhood is experiencing problems with standing water. Residents living in this neighborhood believe they have an HOA flooding issue on their hands.

After a heavy downpour, standing water would flood the street and essentially trap residents in their homes. This is what happened the past week.

On Thursday night, heavy rain swept through the Town of Beaufort. By Friday morning, resident Janet Sweeney had to cancel a meeting as she couldn’t get out of her house due to the flooding.

This is what Sweeney constantly worries about whenever there is heavy rain. A neighbor, Marge Cristobal, shares the same worries.

Sweeney and Cristobal have had to cancel several appointments because of the standing water. Residents are also concerned that first responders can’t reach them in time in the event of an emergency.

The neighborhood consists of both working residents and retirees.

An HOA Issue?

Meeting Street, which the Town of Beaufort owns, does not have any storm drains. The same goes for Professional Park Drive, the road parallel to it. Sweeney believes no one apart from the residents cares about the issue.

Town officials have said that they aren’t the ones responsible for this; rather, it is up to the developer and the homeowners association.

Sweeney and Cristobal have tried contacting anyone and everyone. And while they haven’t gotten a positive response, they are determined to keep trying.

There is an upcoming meeting for the Town of Beaufort. Sweeney and Cristobal plan to raise the issue then, with the support of some of their neighbors. Their goal is to have storm drains installed on their street.

In a community in Punta Gorda, Florida, owners are still paying HOA fees on homes that burned down months ago.

No Homes, Yet Obligation to Pay Persists

Four months ago, a number of homes in Emerald Pointe Community burned down. And while the owners of those homes haven’t been able to use them for quite a while, they are still continuing to pay the HOA fees for those homes. Perhaps even more shocking was that the HOA raised the dues two months after the fire.

One man, Mitch

In a community in Punta Gorda, Florida, owners are still paying HOA fees on homes that burned down months ago.

No Homes, Yet Obligation to Pay Persists

Four months ago, a number of homes in Emerald Pointe Community burned down. And while the owners of those homes haven’t been able to use them for quite a while, they are still continuing to pay the HOA fees for those homes. Perhaps even more shocking was that the HOA raised the dues two months after the fire.

One man, Mitch Eby, lost his home and possessions in the fire. It was the kindness of his neighbors — people he barely knew — who offered their help in his time of need that pushed him to buy a new home in the same community. But, that also meant he had to pay the fees on two homes.

What Happened to the Insurance Payout?

Emerald Pointe’s insurance company already paid the condo association $1.9 million. However, the owners who lost their homes said they still haven’t received a penny. They’re also not pleased with owners still paying HOA fees.

According to Eby, the association already spent $100,000 of the payout.

Neil Purtell, the president of the condo association, said that money went to the cost of cleanup and remediation. The association allocated another $200,000 for any additional fees the association may encounter.

The HOA is set to hold a vote soon, with the owners who lost their homes voting on whether they want to rebuild. Most victims, though, only want to stop paying HOA fees and receive the $225,000 payout.

The introduction of Florida HB403 has given homeowners more freedom when it comes to working from home. But, the bill has also resulted in concerns among citizens and homeowners alike.

What Is Florida HB403?

Florida House Bill 403 was first filed in January 2021. After months of back and forth, Gov. Ron DeSantis signed the bill in June 2021 and it finally passed into law in July 2021.

Among other things, the bill allows home-based businesses to operate even in areas zoned

The introduction of Florida HB403 has given homeowners more freedom when it comes to working from home. But, the bill has also resulted in concerns among citizens and homeowners alike.

What Is Florida HB403?

Florida House Bill 403 was first filed in January 2021. After months of back and forth, Gov. Ron DeSantis signed the bill in June 2021 and it finally passed into law in July 2021.

Among other things, the bill allows home-based businesses to operate even in areas zoned for residential use. It does away with rules that limit an owner from running a business from their home, such as how much square footage they can use, what products and services they can sell, and how many family members can work for the business.

According to Rep. Mike Giallombardo, the sponsor of the bill, HB403 serves as a way “to keep Florida at the forefront of freedom.” It would essentially display that the Sunshine State is open for all types of business, even home-based ones.

New Florida HB 403 Raises Concerns Among Cities

While operating a home-based business in Florida isn’t a problem in and of itself, the bill does introduce a few key issues. Homeowners associations, in particular, are worried that the bill might alter the character of their communities. Residents have also started to raise concerns about safety and security.

In Tallahassee, a concern they received from citizens was the establishment of brothels or gentleman’s clubs in single-family neighborhoods. The bill’s kicker is that it currently does not restrict the kinds of businesses owners can put up. If the business follows the law and secures the proper permits, cities are essentially backed into a corner and forced to let them operate.

Another concern homeowners have is that some people might set up gun or ammunition shops in their neighborhoods.

Real-Life Example

An ammunition shop is exactly what one owner planned to open in the city of Lauderdale Lakes.

Jameson Labady has always wanted to expand his business. While his current business, JSL Security Intelligence, provides private security, he wishes to open a new venture selling ammo. The new business would carry the name, Popping Smoke Ammunition, and would operate from his two-bedroom home.

When Labady filed the paperwork for his new business, officials sprang to action. Lauderdale Lakes Mayor Hazelle Rogers reached out to Tallahassee lawmakers for help, worried about the safety of residents.

Although Labady doesn’t intend to store the ammo in his house, he has since backed down after his HOA reacted negatively to the idea. He ultimately decided not to fight his association on the matter. Instead, Labady plans to look for a commercial space to house his new venture.

Homeowners Associations and Rules on Commercial Use

It is not uncommon for homeowners associations to have certain bans or restrictions on using a residential property for commercial purposes. In fact, many associations outright prohibit residents from operating a business from their homes. This is because it creates safety and security issues.

A private subdivision may not want outside customers going in and out of the community. Having strangers inside a gated HOA might make residents feel unsafe. It’s also impossible to screen all of them before they enter the neighborhood.

Operating a business also involves the possibility of several vehicles parked along the street. If a street is blocked by too many vehicles, emergency responders won’t have a way to get through.

Finally, businesses need signs and all sorts of paraphernalia. The sign alone can go against the association’s architectural standards. Flyers, posters, and business cards may also litter the neighborhood. Beyond that, ad-painted vehicles are also an eyesore to the community.

How the Bill Affects HOAs and Condos

Homeowners associations are understandably concerned about the aftermath of the bill passing into law. But, it is worth noting that the bill does not supersede any current or future declaration of an HOA or condominium pursuant to Chapter 718, Chapter 719, or Chapter 720.

This means that if an association’s declaration prohibits homes used for commercial use, the HOA can uphold the restriction. The new law, though, does not address an association’s rules and regulations.

As such, if an HOA does not have language built into its declaration prohibiting home-based businesses, it likely can’t stop owners if they have the proper licenses and permits. This poses a problem for neighborhoods that don’t belong in associations, too, as they don’t have the same restrictions that an HOA would normally have.

Florida HB403 Likely to Undergo Tweaks

It is currently unknown how many home-based businesses have sprouted since the passing of Florida HB403. But, it is clear that the new bill certainly has its downsides.

Rep. Michael Gottlieb, the chair of the local delegation of Broward senators and representatives, believes there is work left to be done. Gottlieb has said that lawmakers still need to refine the legislation.

Broward Rep. Chip LaMarca also said that the bill may undergo some changes pertaining to the industries that it will allow to operate in a residential area.

Florida HB403 was crafted with the intention of protecting professionals from being penalized for using their living room as a workspace. During the COVID-19 pandemic, working from home had become necessary. But, lawmakers likely did not expect it to spark such a huge response from local governments.

Seeking Legal Advice

Legislators passed Florida HB403 with the aim of encouraging small businesses and aiding the American dream. However, it also spawned unintentional consequences and understandable concerns. For now, local governments and homeowners associations should simply keep an eye out for any new developments.

HOAManagement.com strives to provide up-to-date law news. Look for the best lawyers, vendors, and HOA management companies in your area using our online directory!

Disclaimer: We do not offer or provide legal advice. If you need legal help, it is best to consult an attorney.

RELATED ARTICLES:

{ "@context": "https://schema.org", "@type": "BlogPosting", "headline": "Florida HB403: Can HOAs Stop You From Working From Home Or Setting Up Shop?", "image": [ "https://www.hoamanagement.com/wp-content/uploads/2022/07/Florida-HB403-Can-HOAs-Stop-You-From-Working-From-Home-Or-Setting-Up-Shop.jpeg" ], "datePublished": "2022-07-26T07:00:30+00:00", "author": { "@type": "Person", "name": "The HOA Management Team" }, "publisher": { "@type": "Organization", "name": "HOA Management", "logo": { "@type": "ImageObject", "url": "https://www.hoamanagement.com/wp-content/uploads/2018/01/hoam-new-logo.png" } }, "description": "The experts at HOA management discuss Florida HB403." } { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [{ "@type": "Question", "name": "What is Florida HB403?", "acceptedAnswer": { "@type": "Answer", "text": "Among other things, the bill allows home-based businesses to operate even in areas zoned for residential use. It does away with rules that limit an owner from running a business from their home, such as how much square footage they can use, what products and services they can sell, and how many family members can work for the business." } }, { "@type": "Question", "name": "Does Florida HB403 supersede HOA rules?", "acceptedAnswer": { "@type": "Answer", "text": "Homeowners associations are understandably concerned about the aftermath of the bill passing into law. But, it is worth noting that the bill does not supersede any current or future declaration of an HOA or condominium pursuant to Chapter 718, Chapter 719, or Chapter 720. This means that if an association's declaration prohibits homes used for commercial use, the HOA can uphold the restriction. The new law, though, does not address an association's rules and regulations." } }] }

A homeowners association in Nevada is seeking a hefty HOA special assessment to remove grass and trees. This is a problem for the community’s residents, most of whom are operating on fixed incomes.

An $11,000 HOA Special Assessment

Henderson-based Sun City Anthem HOA plans to remove its grass and trees and replace them with water-efficient turf. While the effort to conserve water is admirable, members of the community are concerned about the financial impact this will have on them.

A homeowners association in Nevada is seeking a hefty HOA special assessment to remove grass and trees. This is a problem for the community’s residents, most of whom are operating on fixed incomes.

An $11,000 HOA Special Assessment

Henderson-based Sun City Anthem HOA plans to remove its grass and trees and replace them with water-efficient turf. While the effort to conserve water is admirable, members of the community are concerned about the financial impact this will have on them.

According to the residents, the plan may come with an $11,000 special assessment fee. Resident David Hartson worries that this will prove difficult for many homeowners. The community is home to many retirees who operate on fixed incomes.

Another resident, Spencer Haneline, pointed out that the economy right now doesn’t exactly help. With inflation and interest rates up, homeowners will likely struggle to pay the hefty sum.

It is not uncommon for HOAs to levy special assessments for large projects like this.

The Role of Assembly Bill 356

Representatives of Sun City Anthem told news outlets that the landscaping change isn’t simply cosmetic — it is to comply with Assembly Bill 356. The bill, which passed in 2021, requires the removal of nonfunctional turf on any property that is not zoned exclusively for a single-family residence. It would mean having to replace most of the community’s grass and trees with something more drought-friendly.

The bill goes into effect in 2027. This means Sun City Anthem only has until the end of 2026 to make the necessary changes.

In response to the negative press, the HOA put out a statement. It clarified that the HOA has yet to compute the actual numbers as there are too many unknown variables at this point in time.

Meanwhile, residents of Sun City Anthem are hoping that the HOA special assessments don’t go too far.

An appeals court rules on an HOA dispute concerning the redevelopment of a golf course. The ruling has partially come out in favor of the homeowners association.

The Aftermath of Hurricane Florence

In 2018, Hurricane Florence hit North Carolina and devastated the Cape Fear region. The state also suffered from billions of dollars worth of damages. One subdivision, The Cape, did not come out unscathed.

The hurricane brought on physical damage to many structures in the HOA. The

An appeals court rules on an HOA dispute concerning the redevelopment of a golf course. The ruling has partially come out in favor of the homeowners association.

The Aftermath of Hurricane Florence

In 2018, Hurricane Florence hit North Carolina and devastated the Cape Fear region. The state also suffered from billions of dollars worth of damages. One subdivision, The Cape, did not come out unscathed.

The hurricane brought on physical damage to many structures in the HOA. The community had removed and torn down the pool and the clubhouse, with plans for restoration in the future. However, that restoration never happened. And it led to a fracture in the community, says HOA President Bill Conley.

In addition to the pool and clubhouse, the HOA’s golf course was also shutting down and being redeveloped into something else. Homeowners felt outraged and filed a lawsuit against the course’s property owner. The lawsuit eventually reached the North Carolina Court of Appeals.

Court Rules on HOA Dispute

The appeals court has ruled partially in favor of the HOA. According to the ruling, the New Hanover County judge was incorrect in granting summary judgment for the golf course’s owner. The owner had claimed that they had an easement to utilize the neighborhood’s streets without having maintenance responsibilities.

Homeowners in The Cape HOA wanted involvement in the redevelopment. They wanted to have a say in what the developer would build on the land, as it would have an effect on the entire community.

Conley stated that the homeowners’ concerns were mainly about the what and the how — what will be built and how it will be built. After all, these things can have a direct impact on the neighborhood’s flooding.

The HOA claimed that the developers had no right to use the roads of the neighborhood. And the lawsuit served as a way to not give the developers permission to use the roads until both parties came to an agreement. However, negotiations never brought any results.

Following a years-long legal battle, a district court has ruled to remove HOA board members from the La Bota Homeowners Association. The members have been barred from serving on the association’s board now and in the future.

Homeowners Advocate for the Removal of Board Members

The case began 5 years ago in Texas. Homeowners in two developments, the La Bota Property Owners Association and the La Bota Ranch Owners Association, accused their board of overcharging the residents in

Following a years-long legal battle, a district court has ruled to remove HOA board members from the La Bota Homeowners Association. The members have been barred from serving on the association’s board now and in the future.

Homeowners Advocate for the Removal of Board Members

The case began 5 years ago in Texas. Homeowners in two developments, the La Bota Property Owners Association and the La Bota Ranch Owners Association, accused their board of overcharging the residents in fees. This board consisted of members of the Muller family, Albert Muller, III, Virginia Muller, Albert Muller, Jr., and Greg Ebe.

The Mullers owned the development and were serving on the board at the time. According to the homeowners, the Mullers increased the dues by $2,600 annually. The family would then foreclose on owners who failed to settle their dues and resell the foreclosed homes.

A group of homeowners subsequently sought legal action. Vanessa Perez, a District VII Councilmember and one of the homeowners involved in the lawsuit, likened it to a dictatorship where homeowners had no say.

Court Rules in Favor of Homeowners

A Webb County judge ruled in favor of the homeowners. Lopez ordered the removal of the four members from the HOA board. The same ruling also barred the four from serving on the La Bota board in the future. Additionally, they could not participate or have anything to do with decisions, whether directly or indirectly, made on behalf of either of the associations.

The two associations will have to replace the four board members without the input of the persons involved in the case. Should the HOAs fail to do so, the court will appoint a receiver, who will then appoint replacement board members.

Doanh “Zone” Nguyen, a lawyer representing the homeowners, believes the court made the right decision. The La Bota case marked the first of its kind in Texas. As such, it certainly sets a precedent for similar cases in the future.

Can an HOA Board Member Be Removed?

Even without court intervention, associations do have the power to remove HOA board members. Homeowners should look to their state laws and governing documents for guidance on the procedure. Typically, an HOA’s bylaws will include guidelines on how to remove board members. It will also outline valid reasons to remove board members from their positions.

If state laws and governing documents remain silent, homeowners can consult an attorney for assistance.

While a man-made lake may sound like a good idea from a theoretical standpoint, one homeowners association in Arizona quickly learned the truth. Now, the HOA faces bankruptcy if it can’t come up with $2.5 million.

Promising Beginnings

The Continental Country Club constructed Lake Elaine back in the 1970s. At the time, it was an asset to the HOA. It bolstered the property values of homes located on the waterfront and was a gorgeous sight to see.

But, in the 1990s, disaster

While a man-made lake may sound like a good idea from a theoretical standpoint, one homeowners association in Arizona quickly learned the truth. Now, the HOA faces bankruptcy if it can’t come up with $2.5 million.

Promising Beginnings

The Continental Country Club constructed Lake Elaine back in the 1970s. At the time, it was an asset to the HOA. It bolstered the property values of homes located on the waterfront and was a gorgeous sight to see.

But, in the 1990s, disaster struck. Lake Elaine’s water level started to plummet, and the club was forced to drain it entirely to make repairs to the plastic lining. It was at this time that the Continental Country Club HOA and 52 residents, who owned homes on the perimeter of the lake, had made an agreement. According to the agreement, the club would have to take responsibility for maintaining the water level at 6,845 feet above level now and in the future.

In the following years, the club encountered problem after problem. The lake was incompatible with the Flagstaff environment, as the water kept seeping into the limestone landscape. The lake started to leak more, and sinkholes appeared not long after. As the lake lost 200,000 gallons a day, the club was having trouble maintaining the appropriate water level.

Continental did what it could. It even received up to 1.6 million gallons of reclaimed water per day from the City of Flagstaff, but it wasn’t enough. By 2016, the club stopped adding water to the lake, and the concrete collar that ran through its perimeter started showing.

And Then Came the Lawsuit

At the start of 2017, the homeowners around the lake’s perimeter filed a class-action lawsuit against the club for breaking their agreement. In 2020, judge Dan Slayton ruled in favor of the homeowners. The HOA was ordered to pay $700 in fines for every day that it failed to pump water into Lake Elaine. The fine would go down to $500 per day once they start pumping water and would continue until they reach the agreed-upon water level.

But, the lake still continued to leak. In 2019, the club drained the lake once more to determine how big a problem they were facing. The investigation found that the liner had suffered damages as a result of the sinkholes. It needed major repairs, which were estimated to cost $3 to $5 million at the time. On top of that, they also had a $600,000 balloon payment due in October 2020.

The board made the decision to file for Chapter 11 bankruptcy.

HOA Faces Bankruptcy: Two Options

The Chapter 11 bankruptcy filing gave the association some time to reorganize. It eventually came up with two options to get them out of this conundrum.

The first option is to deed Lake Elaine to the 52 homeowners who owned lakefront properties. This option included the club paying them $2.5 million to repair and maintain the lake forever. If chosen, this option would allow Continental to do away with all of its ongoing liability. But, it’s an option that homeowners are unlikely to choose.

The second option is to spend $2.5 million and turn Lake Elaine into a brand-new amenity. The plan includes a few ponds, some benches, and walking trails that would be available to all homeowners.

HOA Turns to Homeowners for Funding

Both options require money to execute. And where will the club get this money? The homeowners.

Now, the association is asking homeowners to vote to approve two items — a one-time fee and an increase in annual dues. The first item would authorize the club to collect a one-time payment of $2,000 from all owners. The second item would authorize the club to raise annual dues by $97 per year.

Should the association fail to secure the necessary votes for these two items, the club and its current amenities would be in jeopardy. The club would essentially have no choice but to file for Chapter 7 bankruptcy. This outcome also can’t be good for the more than 2,300 homeowners in the community, as property values would take a plunge.

While there are already some homeowners who have voted “yes” on both items, there is doubt that the resolutions won’t pass. One homeowner, Sam Sherwood, believes it’s because of the existing bad blood between the HOA and its residents following the former’s decision to prohibit rentals. Sherwood, who owns a lakefront home, already cast his vote and would love to see the lake transformed.

Tahlia Murray, the club’s general manager, remains optimistic.

The club distributed the ballots to homeowners on June 28. They have one month to make a decision, with the final tally taking place on July 28.

One condo association in Panama City Beach is charging a hefty sum for an HOA renovation. But, unit owners are pushing back. Now, a legal battle begins.

Condo Owners File Motion

Unit owners in the Shores of Panama condo have filed a motion asking a court to bar their HOA from levying an $8.9 million assessment to fund an $80 million HOA renovation. According to the owners, the renovation is completely unnecessary. Dana Matthews, the attorney representing owners of 58 out of 709 units,

One condo association in Panama City Beach is charging a hefty sum for an HOA renovation. But, unit owners are pushing back. Now, a legal battle begins.

Condo Owners File Motion

Unit owners in the Shores of Panama condo have filed a motion asking a court to bar their HOA from levying an $8.9 million assessment to fund an $80 million HOA renovation. According to the owners, the renovation is completely unnecessary. Dana Matthews, the attorney representing owners of 58 out of 709 units, states that the building does not have any structural problems.

The motion seeks a declaratory injunction to block the Shores of Panama HOA Board of Directors from charging the assessment fee. It would also stop the association from continuing with any more work until the court decides on a ruling.

A date for the hearing has yet to be set.

Large Assessment Due

On June 7, the Shores of Panama HOA levied an $8.9 million assessment against condo owners to fund some of the work. Mark McWaters, the building official for Panama City Beach, stated in May that he is only relying on the opinions of architects and engineers. McWaters declined to comment on the pending litigation.

New Condo Safety Law in Florida

A new Florida condo safety law went into effect on July 1. The law, which comes after the tragic Surfside condominium collapse in 2021, requires stricter condo inspections and reserve funding. This new law, though, applies to buildings that are at least 25 years old. The Shores of Panama condo, standing at 23 stories high, is only 17 years old at most.

Still, there are allegedly problems with the building. According to the HOA, these problems were the result of Hurricane Michael in 2018.

In December, the board announced a roofing project that their insurance could not pay for.

In February, McWaters informed the HOA in a letter that it had 30 days to execute a safety plan to minimize the risk of danger brought on by “cracked anti-lever beams, rusted metal framing, and loose and detaching stucco.”

The association’s insurance won’t cover the $80 million renovation, so it’s turning to the owners.

Renovations Have Commenced

The condo board approved the hefty special assessment on June 7. But, the owners complained that the board signed contracts and started work without even informing the owners. Construction workers have already taken out portions of stucco from the exterior of the building.

Now, unit owners want a temporary injunction until the court can analyze all the details of the suit and make a decision on whether renovations really are necessary.

Can I install cameras in my condo? This is a question asked by many condo unit owners. But, one condominium in Florida has asked a resident to remove their doorbell camera after an incident of theft.

Theft Caught on Camera

Back in June, a resident’s doorbell camera managed to record a security guard appearing to steal something from an elderly woman. The elderly woman was injured and, as first responders took care of her, the security guard seemed to take something from the woman’s

Can I install cameras in my condo? This is a question asked by many condo unit owners. But, one condominium in Florida has asked a resident to remove their doorbell camera after an incident of theft.

Theft Caught on Camera

Back in June, a resident’s doorbell camera managed to record a security guard appearing to steal something from an elderly woman. The elderly woman was injured and, as first responders took care of her, the security guard seemed to take something from the woman’s purse. The video made its way to social media and, eventually, on the local news.

Many residents of the condominium, the Towers of Quayside, rightfully felt angered after watching the video. This included Magdalena Cuprys, who lived in a neighboring tower from the injured 83-year-old woman.

Cuprys mentioned on a Quayside Facebook group that she also had a doorbell camera. It was after posting this that she received a letter from the condo association. The letter asked her to remove her doorbell camera as it was in violation of the association’s rules.

A Violation of Condo Rules

In its letter to Cuprys, the Towers at Quayside claimed that the doorbell camera was a “material alteration of a common element.” This meant she had to remove it. Cuprys, an attorney, believed that the condo was attempting to cover up the incident. She subsequently posted the letter on the condo’s Facebook group.

Although Quayside cited the condo’s uniformity rule as the reason behind the request for removal, Cuprys pointed to examples of other doors on her floor that violate the rule as well. Other doors sported religious decorations, knockers, and other security features. Cuprys’ main concern is the safety of her loved ones. As such, she views the condo’s decision as a double standard.

Can I Install Cameras in My Condo?

It is only natural for unit owners to want to install security cameras for condos, especially doorbell cameras, which allow owners to view visitors before opening the door to them. But, many condo associations do have rules on what changes residents can make to common elements if any. Doors generally fall under common elements.

If a condo association prohibits doorbell cameras in its governing documents, violating this rule can result in certain consequences for owners. That said, condo boards should make a point to enforce the rules consistently and uniformly.

In Florida, condo safety has become a top concern after the collapse of the Surfside condominiums. In response, Gov. Ron DeSantis has signed the new Florida condo safety law, which aims to minimize the risks associated with the structural engineering of condo buildings.

The Tragedy at Surfside

In June last year, Champlain Towers South in Surfside, Florida, partially collapsed. The tragedy resulted in the deaths of 98 people. Ten days later, the building was demolished.

Several

In Florida, condo safety has become a top concern after the collapse of the Surfside condominiums. In response, Gov. Ron DeSantis has signed the new Florida condo safety law, which aims to minimize the risks associated with the structural engineering of condo buildings.

The Tragedy at Surfside

In June last year, Champlain Towers South in Surfside, Florida, partially collapsed. The tragedy resulted in the deaths of 98 people. Ten days later, the building was demolished.

Several theories have pointed to a number of possible causes, including saltwater corrosion, inadequate construction, and water leaks. There were also arguments that the condo association had failed to maintain a reserve account that would have funded necessary maintenance and repairs.

Whatever the case, it was clear that something had to change. And the unfortunate incident jumpstarted legislation that aimed to ensure the safety of condo buildings.

New Florida Condo Safety Law Signed

Almost a year after the Surfside collapse, the state of Florida introduced a new safety bill. The House immediately passed SB 4-D and DeSantis signed the bill the following day.

The newly minted law requires all buildings with at least three stories to undergo recertification after 30 years — 25 years if it is located within 3 miles of the coast — and every 10 years thereafter. Condominiums are also now required to set aside money for repairs and conduct a reserve study every 10 years as well as provide inspection reports to unit owners.

Champlain Towers South was 40 years old and was in the middle of its recertification process when it partially collapsed last year. Miami-Dade County and Broward County were the only two counties that required recertification at the time.

The law will take effect in 2025.

A Shortage of Engineers

Although the new law will help bolster the safety of many condos, it does pose a challenge to the state of Florida. There are an estimated 650 certified structural engineers in the state. The demand for these engineers is already high in new construction alone, so existing buildings will need to get the gears running before the law kicks in.

To put things in perspective, there are more than 1.5 condominium units in the state. Out of those, there are over 912,000 condos aged 30 years and older. That equates to more than 2 million condo residents.

What This Means for Condo Associations

Condo associations are naturally preparing for the big change this law brings. Many boards feel worried about the financial toll the new law will have on their communities.

The Florida condo safety law requires condos to maintain a reserve fund. Not all associations currently have such an account and will have to build up their reserves to an adequate level in a short amount of time. This will have a disproportionate impact on low-income residents in particular.