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A HOMEOWNER'S
"Bill of Rights"

by Beth A. Grimm, Esq.

T Homeowner's "Bill of Rights"(of sorts) exists in California. Under California law, Community Association's Boards of Directors and Managers (as applicable per their contracts) of Common Interest Developments are required to:

  • Provide an annual budget each year, by mail, to each owner, in a timely fashion (CC 1365(a))
  • Identify major components and adopt a funding plan, and report on reserves needed to fulfill the plan vs reserves provided (money already collected) (CC 1365(u))
  • Provide an annual financial report (CC 1365(b,c))
  • Avoid comingling of funds (except in limited circumstances) with funds of other associations or the management company (CC 1363.2)
  • Give not less than 30 nor more than 60 day notice of regular and special assessments before the date they become due (CC1366(c))
  • Provide annual notice (summary) of Alternative Dispute Resolution rights (CC 1354(i))
  • Provide annual notice of the policy on how liens and collections are handled (CC 1365(d))
  • Provide annual notice relating to association insurance coverage (CC 1365(c))
  • Provide annual notice relating to right of owner to review and obtain minutes of meetings (CC 1365.05(d))
  • Provide schedule of fines and penalties (if any are to be imposed on owners) (CC 1363(g))
  • Allow owners to attend Board meetings except for executive session (CC 1363.05(b))
  • Allow owners a reasonable time to speak at Board and annual meetings (CC 1365.05(i))
  • Provide fair and reasonable nomination and election procedures (CORP 7520, 7521)
  • Respond to a petition to call a special meeting of members with 5% homeowner support, within enumerated timelines (CORP 7510(e))
  • Adhere to a statutory scheme that provides a mechanism for owners to remove (recall) a director without stating cause (CORP 7222)
  • Provide a reasonable hearing process when considering discipline of a member (CORP 7341)
  • Provide rights to owners or their appointed agents to examine and copy records, and for owners to receive a membership list (within guidelines and with some limitations) (CORP 8330-8338)
  • Post notice of Board meetings at least 4 days before the meeting or give alternative notice to the owners (CC 1363.05(g))
  • Avoid appearances of impropriety, illegal borrowing, and illegal distributions, and to disclose conflicts of interest (CORP 7233, 7236)

[Note: CC = Civil Code and CORP = Corporations Code] Most of these rights are also enumerated in the National Community Associations Institute (CAI) Bill of Rights. See the Resource page and publications for more information.

By Beth A. Grimm, a community association attorney in California, East Bay Resource Panel Chairperson and author of various publications and books about condominium living and the law, and a frequent contributor to THE ECHO JOURNAL.

copyright 2001, Beth A Grimm, all rights reserved... any attempt to improperly use or republish these materials and/or this article without the author's permission is subject to legal action. If you would like printed copies provided through the mail from Ms. Grimm, click on the order form attached. There is a charge of $20 for each article for this service.

THE MATERIALS BEING MADE AVAILABLE HAVE BEEN WRITTEN OVER THE YEARS AND DO NOT COVER STATUTES OR CASE LAW OR PRACTICAL ISSUES THAT AROSE AFTER THEY WERE WRITTEN.

By Beth A. Grimm, Attorney. A "service oriented" attorney and member of ECHO and CAI and various other industry organizations in California and nationally, host of the website www.californiacondoguru.com; two Blogs: California Condominium & HOA Law Blog, and Condolawguru.com Blog, and author of many helpful community association publications which can be found in the webstore on her site.



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