Election Apathy & Quorum Requirements

Source: Adrian J. Adams Esq.

QUESTION:

We have spent a countless amount of money in the election process trying to meet quorum. How many attempts does the HOA need to make before the current board just continues/rolls over as the board?

ANSWER: There is no required number of attempts to meet quorum. If it is clear the membership is not interested in participating, the board can stop. For example, if you have 100 units and only 9 send in their ballots, it’s pretty clear no one is interested, which means reaching a 50% or even 30% quorum may not be achievable.

I had a large association with a 15% quorum requirement that could not get more that 12% participation no matter how hard they tried. We sought and received court approval of the 12% so they could open and count ballots.

If quorum is within striking distance, directors should put in the effort to round up more votes. If not, the board does not need to waste time, money, and energy trying to get members to participate. The existing board can continue in office and appoint replacements if they are anxious to step down.

RECOMMENDATION: Associations should amend their bylaws to eliminate cumulative voting and quorum requirements for the election of directors. Apathy will make it difficult to get the amendment passed but it’s worth the effort. 

Illegal & Unethical

Source: Adrian J. Adams Esq.

QUESTION:

Our association recently recovered funds from a lawsuit which the homeowners were charged a special assessment. The board opted to place the funds in the reserve account rather than reimburse the homeowners for their payments. Is this ethical or legal?

ANSWER: Unless the board promised to reimburse owners or somehow made it a condition of the special assessment, it is neither illegal nor unethical to put the money in the reserve account.

Reserve Funding. In fact, not doing so may be imprudent if your reserves are badly underfunded. Failing to fund the reserve account now could result in special assessments later when large repairs are needed and reserves are insufficient. Then everyone would rail against the board for not funding the reserves.

Who Gets the Money? Also, for those units sold after the special assessment but before the recovery, who gets the money? Does it go to the ones who paid it but no longer have a legal interest in the association or the ones who bought units and lay claim to the reimbursement? That could get messy.

RECOMMENDATION: Prudent fiscal management is one of the duties of the board. If you disagree with how they are handling the association’s money, you should consider running for the board.

Seating Arrangement

Source: Adrian J. Adams Esq.

QUESTION: Is there a seating protocol for board members on the dais? Is it appropriate for the manager and attorney to be seated on the dais? What is common practice?

ANSWER: There is no seating protocol that I’m aware of. I checked Robert’s Rules of Order and found nothing on the subject.

Seating Arrangements. I’ve been in meetings where the board, manager and attorney were (i) on an elevated dais with everyone facing the audience, (ii) seated at tables in a “u” shape (common with larger boards), (iii) seated at a round table with the backs of some directors to the audience, (iv)  seated randomly in comfy chairs in someone’s living room, and (v) seated in folding chairs on one side of a pool and the audience on the other side (a quasi separation of church and state–if you could walk on water, you could join the board). My favorite is where the board met in the alley next to a dumpster and everyone stood (it made for very short meetings).

On A Dais. When the board meets on a dais facing the audience, the most common position for the manager and attorney is at the end of the table. The second most common is for the attorney to be seated next to the president so he/she can consult with the attorney as-needed during the course of the meeting.

RECOMMENDATION: Generally, the larger the association, the more formal the seating arrangements. Boards should pick one that is comfortable for them.

Election Confidential

Source: Adrian J. Adams Esq.

QUESTION:For Christmas, I gave out gag gifts to my fellow board members–a condom for the men and an early pregnancy test kit for the ladies. The recipients are all over 65; most are in their 70s. A week later I received a letter from our HOA attorney accusing me of sexual harassment. At a meet the candidates forum, a shareholder asked a question that referenced the content of the letter. Do I have any protection from this confidential letter being shared?

ANSWER: If there is one thing I’ve learned, it’s that people like to talk–especially when directors behave badly. Your options are quite limited. No court is going to order people to stop talking about you. Can you sue for defamation? If members truthfully describe what you did, you would spend a lot of money and lose. Moreover, your litigation would alienate everyone and they would talk about you, your prank, and your lawsuit endlessly.

RECOMMENDATION: If you want to run for the board and win, you should own-up to your gag and apologize for it. If members believe your apology is sincere, you have a better chance of winning their votes.

Absentee Half-Owner on the Board

Source: Adrian J. Adams Es

QUESTION: Does a member have to hold 100% title in the unit to be eligible for the

board of directors? If the candidate shares 50% title with another and does not reside in the unit but leases it, is the member eligible to run for board?

ANSWER: Unless your governing documents state otherwise, directors do not need to be members. That means someone not on title can serve on the board.

Ownership Interest. If your governing documents require directors to be members but don’t set an percentage ownership interest, someone with a 1% interest can serve on the board. When I restate documents for associations, I set a minimum ownership interest of 10%. That way, directors have more of a stake in keeping the development in good shape.

Residency Requirement. If your governing documents are silent, then residency is not a requirement for someone to serve on the board. I include this as an option when restating bylaws. Some associations want it. For others, it may be an impossible requirement if the development is a resort with few if any permanent residents.

RECOMMENDATION: Most associations lack sufficient director qualifications and need to update their bylaws to meet current Davis-Stirling election requirements. Contact me if you need assistance.

Commercial CID Rule Change

Source: Adrian J. Adams Esq.
QUESTION: If the board of a commercial CID changes their collection policy, does it require 30-day review and comment period like residential associations?

ANSWER: For commercial and industrial common interest developments there is no notice or 30-day review requirement for adopting and revising operating rules.

In the Commercial CID Act, the procedure for adopting rules is determined by the development’s governing documents. If your documents require advance notice to the membership and a 30-day review period, then you must do so. If your governing documents are silent, the board may adopt rules by a motion at a board meeting. The rules immediately become effective upon notice to the membership.

RECOMMENDATION: Even if not required by your governing documents, it is still a good idea to notify the membership of any proposed rule change. Members like to stay informed and it gives the board a chance to find out if there are any serious problems with the rule change.

Thank you to attorney Wayne D. Louvier for researching this issue. Wayne works out of our Orange County office.

Re-mailing The Budget Package

Source: Adrian J. Adams Esq. 

QUESTION: We invariably receive budget packages and other disclosure information back in the mail due to member address changes. Are we obligated to resend this information to the new addresses, or are they considered “delivered” per the Mailbox Rule?

ANSWER: Under the “mailbox rule,” when a letter “properly directed is proved to have been either put into the post-office or delivered to the postman, it is presumed . . . that it reached its destination at the regular time, and was received by the person to whom it was addressed.” (Rosenthal v. Walker, 111 U.S. 185, 193 (1884); Civ. Code §4050(b).)

Negligence. In your case, the presumption is lost because you know the annual budget report was not received–it was returned to you. The reason for the failed mailing was the owner’s negligence in not keeping you informed of his/her address change. Members who fail to keep their contact information updated still have a right to the budget report but you can charge them for the additional cost of re-mailing it.

RECOMMENDATION: If you have the budget package in digital form and the owner authorizes it, you can email it. That avoids any disputes over extra mailing costs.

Ham Radio Towers

Source: Adrian J. Adams Esq.

One of the purposes of an association is to protect property values. In addition to maintenance, HOAs 

regulate what people do with their property, i.e., no boats parked on the front lawn, paint your house, don’t install large unsightly antennas, etc.

Bills in Congress. Unfortunately, there are bills in congress that would eliminate HOA restrictions on ham radio masts and towers.

Negative Impact. Robert Browning, a radio enthusiast with a General Class Amateur Radio license, examined the impact of the bills and believes voiding HOA restrictions would be detrimental to communities. He made the following observations:

1. Electronics Interference. Ham operators can use either small towers or large ones. Small towers are less unsightly but require higher wattage to be effective. This can interfere with the electronics of neighbors up to several hundred feet away.
   
   
2. Property Values. If the ham operator installs a large tower so as to avoid interfering with his neighbor’s electronics, he creates an eyesore. The bigger the tower, the more unsightly it becomes, both from size and from all the cables needed for stability. The bigger the eyesore, the more it drives down property values.
3. Safety Issues. Large towers, if not properly secured, can topple onto neighboring properties causing injuries and damage. Safety concerns by neighbors would further depress property values.

Public Interest. Some believe the public interest requires radio towers in HOAs for emergencies. Mr. Browning argues to the contrary. He points out that emergencies (wildfires, earthquakes, hurricanes, tornadoes) require ham operator to report to a particular location. Licensees who volunteer have ready-to-go radio kits called “go-bags” with portable radios, batteries, generators, portable masts and antennas. Thus, there is no need for radio towers in homeowners associations.

Needless Burden. Mr. Browning further observed that other emergency responders do not burden their neighbors with the tools of their trades. For example, paramedics and EMTs do not drive ambulances home, nor do police officers or tow truck drivers. In conclusion, the legislation is unduly burdensome and produces no true public benefit. To read Robert Browning’s report in its entirety, see his White Paper.

RECOMMENDATION: To protect their property values, readers should urge federal legislators to oppose ham radio legislation. CAI has made it easy to send an email to legislators by providing a link with prepared language. It takes only seconds to send. Click here to send an email.

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Declarant Language In Documents

Source: Adrian J. Adams Esq. 

QUESTION: Our CC&Rs and bylaws have never been revised. In a number of provisions, powers are given to the “Declarant.” Since the builder has been gone for over 20 years, should these provisions be removed from our documents?

ANSWER: Yes they should.

Declarant Defined. As defined by the Davis-Stirling Act, a “declarant” is one who creates the original documents that govern the association. (Civ. Code §4130.) Declarants normally give themselves a great deal of power and voting rights so they can complete the development and sell units without interference from homeowners.

Confusing. Declarant language can be very confusing to directors and members alike. Is the association a successor to the declarant? Does the association have the powers of the declarant? Is the association allowed to modify or delete declarant language? In short, the association is not a successor to the developer and does not have a declarant’s powers. And yes, associations can delete declarant provisions once the builder no longer has an interest in the development.

RECOMMENDATION. Associations should, at some point, updatetheir documents. When they do, declarant language should be deleted along with all the legalese that goes with it. It gives you the opportunity to clarify maintenance issues (always a source of conflict and potential liability), add director qualifications, incorporate changes in the law, and make the documents easier to read.

Inspecting Garbage

Source: Adrian J. Adams Esq. 

QUESTION: Our condos have an ongoing problem with residents not placing their garbage bags properly into the bins. This creates a mess when workers move the bins because bags break and spread garbage around. Can the board inspect the bag’s contents for the purpose of identifying who is causing the problem?

ANSWER: Yes you can. People have no reasonable expectation of privacy when they put their trash in a public area. (California v. Greenwood, 486 U.S. 35 (1988).) Trash collectors, the homeless, neighbors, the police, anyone can go through garbage once an owner puts it in a trash bin. Therefore, a board can go through the trash to identify who is causing the problem.

RECOMMENDATION: Board members or staff digging through trash is unsanitary and unseemly. If you want to catch scofflaws, you should install a camera in the trash area. Don’t use hidden cameras. Highly visible cameras help deter bad behavior. Hidden cameras not only offend people, they reveal things you may not want to know.

Motions At Membership Meeting

Source: Adrian J. Adams Esq.

QUESTION: I am under the impression that homeowners can make motions at their annual meeting; am I
 correct?

ANSWER: Pre-2006, you could make motions but that effectively ended with changes to the Davis-Stirling Act.

Robert’s Rules. Under Civil Code §5000(a) membership meetings must be conducted using parliamentary procedures. The most common procedure is Robert’s Rules of Order, which allows members to make motions from the floor. In the “old days” a member could make a motion at the annual meeting. Once it was seconded and debated, it could be put to a vote. I chaired many a meeting where motions were made and votes taken by a voice vote (ayes and nays) or a show of hands.

Davis-Stirling Act. Everything changed in 2006 with Civil Code §1363.03 (now §§5000-5145) which established procedures for elections. Under Civil Code §5100(a), significant votes such as approval of special assessments, election and removal of directors, governing document amendments and the grant of exclusive use common areas requires an Inspector of Elections (Civ. Code §5110) and secret balloting for not less than 30 days (Civ. Code §5115). This procedure effectively precludes all but incidental matters from floor votes. Even incidental matters are problematic.

Color Change. With the advent of mail-in ballots, few members attend meetings any more. In a 100-unit association, sixty members might send in ballots, thereby establishing quorum for the meeting, but only nine members might actually attend. If one person makes a motion to change the color of all buildings from earth tones to navy blue and five vote for the change and four against, does the motion pass? I don’t believe it does.

No Prior Notice. How can the other sixty members whose ballots established quorum vote on the color change since they were not present to hear the motion? I don’t believe the matter can be raised at the meeting without prior notice to the membership. Moreover, I don’t believe approval is a majority of nine (those physically present) but rather a majority of those present in person and by ballot, i.e., a majority of sixty-nine members (60 by ballot and 9 in person). 

Assuming that approval can be accomplished by those physically present at the meeting, allowing five members to change the color scheme of the entire development would create an uproar. Members would be properly outraged since there was no prior notice of the vote.

RECOMMENDATION: Any matters of significance should be put to a vote of the entire membership via written notice and ballot rather than from the floor of an annual meeting.

No Due Process

Source: Adrian J. Adams Esq.

QUESTION: Our pool usage was revoked without any due process and nothing in writing. I went to use the pool one day and couldn’t get in. The president said we were banned as long as he was president and we were lucky we weren’t fined. I asked for a fine schedule but he couldn’t produce one. He said it depended on what the board saw fit for the offense. I mentioned the Davis-Stirling Act and he said it was nothing but a guideline. He said our CC&Rs are the law. Help!

ANSWER: Ah, where to start?

The Law. First, the Davis-Stirling Act is not just a guideline, it’s the law. It encompasses Civil Code sections 4000 through 6150. Violations by the board can result in lawsuits, fines, court orders and an award of attorneys’ fees. Second, your CC&Rs are not the law, they are recorded restrictions known as equitable servitudes. CC&Rs are high on the food chain but they’re a full step below the law.

Due Process. It’s entirely possible your family violated the rules, are a pain in everyone’s rear end, and deserve to have their privileges suspended. However, before any penalties can be imposed, the law requires that you first be given 10 days written notice of the violation and a hearing date so you can defend yourselves. Once the board hears the evidence and makes a decision, it has 15 days to give you its written decision.

Fine Policy. Finally, the board cannot create penalties on the fly. The board must comply with the association’s written fine policy (which must be published annually). If they don’t have a fine schedule, they can’t levy fines or suspend privileges.

RECOMMENDATION: If you’re violating the rules, you should stop. If your board is not following the law, they should start.

Delegating the Budget

Source: Adrian J. Adams Esq.

QUESTION: Our CC&Rs state “The Board shall prepare an operating budget.” However, the board delegates it to the general manager. If the budget is created and passed in violation of our CC&Rs, is it valid?

ANSWER: It is not a violation of the CC&Rs for the board to delegate preparation of the budget. The Corporations Code specifically authorizes the delegation of duties. (Corp. Code §7210.) 

Nondelegable Duties. There are only a handful of duties that boards cannot delegate, i.e., cannot be assigned or transferred to someone else. They include the following:

•  Attending board meetings and voting on motions.

    •  Filling vacancies on the board. (Corp. Code §7212(a)(2).)

    •  Appointing executive committees.

    •  Approving settlement agreements (Elnekave v. Via Dolce.)

CONCLUSION: A manager or a budget committee can put together a draft budget for the board’s review and approval. Once approved by the board, an “Annual Budget Report” and “Annual Policy Statement” must be delivered to the membership 30 to 90 days prior to the start of the association’s fiscal year. (See Disclosure Checklist.)

Filling an Empty Seat

Source: Adrian J. Adams Esq. 

QUESTION. If a board member resigns one full year before the end of her term, is her empty seat automatically open for election or does the board appoint her replacement?

RESPONSE: I know Clint Eastwood had trouble filling an empty chair three years ago but it’s fairly routine for boards of directors. The mechanism depends on two things: (i) how the vacancy was created and (ii) the language in your governing documents.

Recall. Vacancies caused by the membership’s removal of a director (a recall) cannot be filled by the board. It must be filled by the membership at a special election (Corp. Code §7224(a)). That should be done on the same ballot as the recall.

Death & Resignation. Vacancies created by death or resignation of a director are filled by approval of a majority of the remaining directors, unless the governing documents expressly provide otherwise. (Corp. Code §7224(a), Robert’s Rules, 11th ed., p. 467.) Most bylaws follow the Corporations Code and give the board the authority to fill the seat.

Failure to Appoint. If the board fails or refuses to fill an empty position, the membership can call for a special election. (Corp. Code §7224(b).) The process is initiated by filing a petition with the board for a special meeting to fill the seat.

RECOMMENDATION: Check your articles of incorporation and bylaws to see if they address the subject. If they are silent, then follow the Corporations Code as described above.

Suspicious Inspectors of Election

Source: Adrian J. Adams Esq. 

QUESTION: The Davis-Stirling Act states that ONE or THREE independent third parties must be chosen as inspectors of election. Since tabulations must take place in public, it appears suspicious when there are only two at the table when the law requires one or three. If the Inspector brings someone to open the ballots, does he count as an inspector because he is touching and unfolding ballots? If the assistant SORTS the ballots (touching the ballots) and asks questions to the Inspector about ballots, does he become an inspector?

ANSWER: There is nothing suspicious or inappropriate in what you describe. The Davis-Stirling Act addresses the number of inspectors (one or three) not the number of assistants (unlimited). (Civ. Code §5110(a).) What’s more, the Act actually requires that election rules:

Allow the inspector or inspectors to appoint and oversee additional persons to verify signatures and to count and tabulate votes as the inspector or inspectors deem appropriate, provided that the persons are independent third parties. (Civ. Code §5105(a)(6).)

That means you can have one inspector and half a dozen assistants who register people, open envelopes and tabulate votes–all under the supervision of the inspector. Touching an envelope does not magically make someone an inspector. Under that reasoning, mail carriers become inspectors when they deliver envelopes to the inspector. I don’t think the Post Office has that in their job description.

RECOMMENDATION. The British government distributed posters to the people of England during World War II to help get them through the Nazi aerial bombardment. One of them read, “Keep Calm and Carry On.” That applies here. Don’t over-think the inspector issue or you’ll give yourself a stroke.

Panty Thief

Source: Adrian J. Adams Esq. 

QUESTION: There is a man living in our complex who appears to have Down’s syndrome. He goes to the laundry facilities and steals women’s underwear and bras. He has even tugged on a girl’s underwear as she was bending over. The board is afraid of lawsuits and refuses to send the owner a letter. If anyone complains, they say “go to the police.” What can we do?

ANSWER: I passed this hot potato to attorney Jasmine Fisher. Following is her response:

Disability Rights. Your board may be unduly concerned about disability rights. Fortunately, the law only requires “reasonable” accommodation of disabilities. There is no law or case on record (yet!) that gives a disabled person the right to steal undergarments. That means your panty thief may create liability for your association if the board refuses to act.

Association Liability. While the association is normally not responsible for the criminal acts of a third party, Frances T. v. Village Green made an exception when the crime is foreseeable. In Frances T, the board knew about the increased crime in the area, failed to install exterior lighting Frances T. had requested (to make her unit safer) and actively prevented her from installing lighting. She was subsequently raped and robbed in her unit. The court found the association and its directors liable because the harm was foreseeable and they did nothing.

With your panty thief, it is foreseeable the thefts will continue and may escalate into something more physical. If so, your association could be liable for your board’s failure to act. Simply saying “Go to the police” will not remove the liability exposure.

Board’s Options. The courts provide a wide degree of latitude to board decisions so there is no right or wrong option, aside from doing nothing. The board can use the nuisance provision of your CC&Rs to call a hearing to warn the owner. If the behavior continues, fines can be levied (following another hearing). If that does not work, a letter from legal counsel threatening litigation can be next. Ultimately, a lawsuit may be necessary. If needed, the board can skip the early steps and jump to a lawyer letter and potential litigation.

Notice to Members. Should the members be warned? Notifying owners can be tricky. If you don’t notify the membership and your panty thief escalates to sexual assaults, your board could be sued for failing to warn the members. If the board says too much, they could be sued by the panty thief. It’s the same problem boards face when a registered sex offender moves into a complex. They can’t post a notice that sex offender Dilbert Smith moved into unit 301. They must be more circumspect.

RECOMMENDATION: As JFK said, “There are risks and costs to action. But they are far less than the long range risks of comfortable inaction.” To minimize legal exposure, boards who are aware of criminal activity in the development should coordinate with legal counsel for appropriate (i) action against the perpetrator and (ii) notice to the membership.

Inflatable Bouncers

Source: Adrian J. Adams Esq. 

QUESTION: Can an HOA ban jumpers, bouncers, slides, etc. without it being in the CC&Rs or bylaws? Many HOAs allow owners with children who have parties and hire jumpers to place in the common area. It causes problems when the HOA prohibits them on the day of the event.

ANSWER: Yes, they can be banned. When it comes to the common areas, boards have the power to regulate activities. They can do so because governing documents put common areas under HOA control and reducing liability is a key element of a board’s duties.

Injuries. According to the Consumer Product Safety Commission, injuries related to bouncers are on the rise. They estimate more than 100,000 bouncer related injuries were treated in emergency rooms from 2003 to 2013, including 12 deaths. The Child Injury Prevention Alliance noted that inflatable bouncers can lead to broken bones and concussions and estimate that hospital emergency visits are now at “more than 30 children a day, or about one child every 45 minutes.”

Liability. If an owner holds a bounce party in his own backyard and a child is injured, the association won’t be dragged into the litigation. If the party is in the common areas, the association can be sued even though it was the owner’s party. Accordingly, boards have an interest in protecting the association from potential liability related to bouncers.

Rules. Associations don’t necessarily need a rule banning bouncers since a list of prohibited activities could be lengthy–no bouncers, no trampolines, no archery, no weapons, no serving alcohol to minors, no dangerous activities, etc. In addition to being lengthy, such restrictions can be difficult to define. Is running across a greenbelt a dangerous activity and therefore banned? Is using a stick to hit a pinata a weapon? Even so, a short list of banned activities may be appropriate.

Last Minute Notice. Associations often have a catch-all provision in their governing documents requiring permission before holding an event in the common areas. I suspect you did not get permission in advance of the party, which is why the HOA bounced your bouncer on the day of the event.

RECOMMENDATION: Associations with common areas that lend themselves to children’s events should talk to legal counsel about how best to limit liability for such events. That could include insurance and/or a signed hold harmless/indemnity agreement. In addition, boards can adopt a list of the more dangerous activities they wish to restrict and incorporate it into the reservation agreement so members will know in advance what they can and cannot do. Boards need to be cautious how they word restrictions. Otherwise, they could trigger claims of discrimination against families with children.

Unrevoked Consent

Source: Adrian J. Adams Esq. 

QUESTION: Can a member send an email request authorizing their HOA to send them all mailings via email without having to fill out a separate special form giving the HOA this permission?

ANSWER: The permission you describe is called “unrevoked consent” and is required by the Davis-Stirling Act. Unrevoked consent sometimes becomes an issue between dating college students–this is different. The Davis-Stirling Act allows owner to receive notices and documents by email “if the recipient has consented, in writing, to that method of delivery.” (Civ. Code §4040(a)(2).)

Electronic Transactions. The Act does not mandate a particular form. An email from an owner giving permission qualifies as written consent. (Civ. Code 1633.7.) The email can be printed by the association and stored in a file or it can be stored electronically.

Approval Forms. Even so, associations are allowed to create their own consent forms. Lawyers like to include disclosure language about how the consent remains effective until such time as it is revoked in writing.

RECOMMENDATION: If the association uses a form, don’t argue with them; simply fill it out. It only takes a minute and everyone can go away happy.

Executive Session Agendas

Source: Adrian J. Adams Esq. 

QUESTION: Does Civil Code §4930 also apply to executive session meeting agendas? Can boards add things to the agenda without going through the procedures described?

ANSWER: Civil Code §4930(a) restricts boards from discussing or taking action on any item at a nonemergency meeting unless the item was placed on the agenda included in the notice given to the membership.

Agenda Exception. The statute provides an exception for emergencies. If an item came to the attention of the board after the agenda was distributed, and if a majority of the board present at the meeting determines that an emergency situation exists, it can be added to the agenda at the meeting.

Emergency Defined. An emergency is defined as “circumstances that could not have been reasonably foreseen by the board, that require immediate attention” and making it impracticable to provide notice. (Civ. Code §4930(d)(1).)

Executive Session Agendas. The statute does not make an exception for executive session meetings. Even so, an argument can be made that executive sessions were not contemplated since the statute requires the board to “openly identify the item to the members in attendance at the meeting” before discussing the item. Members cannot attend executive session meetings so it would seem to apply only to open meetings.

Reported in Minutes. In any event, if an item of business is acted on by the board in executive session, it must be reported to the membership via open meeting minutes. Any matter discussed in executive session shall be generally noted in the minutes of the immediately following meeting that is open to the entire membership. (Civ. Code §4935(e).)

RECOMMENDATION: Talk to your association’s legal counsel and follow their direction on this issue. 

Mentally Ill Resident

Source: Adrian J. Adams Esq. 

QUESTION: We have a mentally ill homeowner who does not take his medication. His screaming and rants are scaring other owners. Two owners have lost tenants as a result. Young women in the complex are scared. Police and security have been called countless times and say they can’t do anything because he has not threatened anyone. He stays up all night yelling, screaming and using foul language. He is an owner and his family makes sure his dues are current. Is there anything we can do??

ANSWER: My partner Jasmine Hale spoke on this issue at a recent law conference in New Orleans. From what you described, it is clear the parents are warehousing their son in your association. You’re a substitute for a more costly mental institution.

Paper Trail. To properly address the issue, you need to create a paper trail. Residents and management should keep logs of their interaction with the problem owner and submit them to the board so there is a record of the frequency and seriousness of the problem. This can then be used for everything that follows.

Health Services. There are various social service agencies you can call that are sometimes helpful. Counties generally have programs such as adult mental health services and adult protective services. They can assist those with physical, mental or developmental disabilities. Unfortunately, they generally require the cooperation of the person with the problem, which is not always forthcoming. Still,it’s worth a try.

Family. You might contact his family but even that has problems. Because of medical privacy laws, you could find yourself in hot water if you disclose private aspects of his medical condition to others. Even so, on occasion I have sent carefully worded letters to parents that prompted action. One resulted in removal of the problem child and sale of the unit. Another prompted a gift from the parents. They sent me a bird.

Hearing. If the polite avenues fail, the board can initiate disciplinary action. The following steps should be followed: (i) send a cease and desist letter, (ii) hold ahearing and levy fines, (iii) offer ADR, and finally, (iv) file a lawsuit. Depending on the level of mental illness, steps one two and three may have no effect on the person. Even so, they are important for showing the court that the association exhausted all other avenues before taking legal action.
Protective Order. If you are forced to file a lawsuit, the complaint will be for breach of the nuisance provision of your CC&Rs and possibly harassment (depending on the circumstances). If the person poses a threat of harm to others, the association can seek a temporary restraining order without notice to the opposing party. (Code Civ. Proc. 527(c).)

Injunctive Relief. With the facts you described, you will be seeking a preliminary and permanent injunction. The injunction would likely include a stay away order, an order to cease creating a nuisance, and a communication protocol. Even then, depending on his mental illness, he may not understand the order or, if understood, unable to comply. That means you’re back in court again.

Amend CC&Rs. You should also consider amending your CC&Rs to give the association the right to evict tenants who violate the CC&Rs. This is helpful when the problem person is a tenant.

RECOMMENDATION: You should work with legal counsel to address this difficult problem. Unfortunately it will be slow and costly but you must follow the steps I described if you hope to be successful.