Recreation Area Shared by 2 Associations - CA

Started by KerryF2 • 8 replies • 590 views

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KerryF2 (California)
Posts: 4

Posted:

Hi all,

I am on the board of my community which is in Southern California. I wonder if anyone here has specific knowledge or experience with how state law handles situations in which 2 different associations share the cost of managing common recreation area.

Basically, my board oversees budgeting and management of a common area that includes pool and clubhouse. However, we have a 2nd completely separate association that uses this recreation area and pays my association to use it. There is question about the decision making process for the recreation area and I wonder if there is anything specific in CA law that I should be aware on this topic.

It seems that the president of my board has been operating a separate committee for this recreation area, and any decision making for the recreation area happens in this committee. No meeting agenda, no minutes, and no follow up on what is decided in these meetings, we also have no idea who is on the committee. It seems like the president is using it as a way to be able to make decisions on his own without input from either board, but we can't really tell since he doesn't give us any material updates regarding the committee. Is this legal? I can't find anything in our governing documents about it, so I am hoping that there might be someone out there that has experience with this kind of situation.

Any information you have is greatly appreciated!

NpS (Pennsylvania)
Posts: 4,216

Posted:

Hi Kerry. Welcome.

In your shoes, I would first check with your County's Registry of Deeds to learn the name of the entity that owns that particular parcel of land. It could be owned by your Association only with right of use given to Association 2. It could be owned jointly by both Associations. It could be owned by a separate entity entirely that provides access for a fee to the Associations.

I'm guessing that it's the last option, because I can't think of any legitimate arrangement where information wouldn't be accessible to you if you are an owner.

Once you identify the parcel owner, it should be much easier to chase the paper trail until you find out the legal relationship between your Association and the parcel owner. That paper trail should also, at some point, identify the link between your Pres and that parcel owner.

Would like to hear more on what you find.

Sikubali jukumu. Read all posts at your own risk.

GenoS (Florida)
Posts: 4,276

Posted:

What does the contract say?

KerryF2 (California)
Posts: 4

Posted:

So, according to a recorded document, my association owns the recreation area, and grants access for use to the other association. They pay us for a share of the costs to manage.

NpS (Pennsylvania)
Posts: 4,216

Posted:

If that's the case, then any committee that runs the recreation area is responsible to your Board. And your Board is responsible to you and the rest of the owners of your Association. All records of that group are records that belong to your Association.

How many units in your association? How many would it take to demand a Special Meeting? You should be able to find that info in your bylaws.

Sikubali jukumu. Read all posts at your own risk.

KerryF2 (California)
Posts: 4

Posted:

Just an update . . .

I moved forward with creating a proposal to bring this committee into alignment with our bylaws and CCRs. Unfortunately, it was not taken well by the HOA President. And I am now getting bullied by him. Also, our community manager has resigned. Not exactly sure what this means, but I imagine we will find out in our May meeting.

I have asked that my proposal be discussed during the meeting so that we can make a decision on how to move forward with this committee. I will let you know what happens.

CjC
Posts: 210

Posted:

We have a shared use area in our HOA as well. The area is specified who pays by percentage. ( there is actually a memo of understanding MOU between then that was a result of a lawsuit about ownership...)The main HOA is responsible for upkeep and it is then billed down the line by percentages. due to many many twisted circumstances, the "lesser" HOA actually dictates how we would like this looking. We determine flowers etc that are planted and it usually stays very consistent. We recently had to replace trees so that was a major project, but every had to pitch in their fair share (or if they didn't, we did a lein)

DouglasK1 (Florida)
Posts: 2,046

Posted:

CA has a large body of association law, so it's possible that this situation is addressed somewhere, but maybe not. In most states this would just be a contractual issue between the parties (the two associations). If the board feels that the president is overstepping his/her authority, then they should act, including possibly replacing the president. Replacing assumes the board elects the officers, which is how it works in most associations. Note that the directors can't typically remove a director, so the pres would still be a director, but not president.

Escaped former treasurer and director of a self managed association.

KellyM3 (North Carolina)
Posts: 2,239

Posted:

Quote:

Posted By KerryF2 on 04/30/2019 8:23 PM
Hi all,

I am on the board of my community which is in Southern California. I wonder if anyone here has specific knowledge or experience with how state law handles situations in which 2 different associations share the cost of managing common recreation area.

Basically, my board oversees budgeting and management of a common area that includes pool and clubhouse. However, we have a 2nd completely separate association that uses this recreation area and pays my association to use it. There is question about the decision making process for the recreation area and I wonder if there is anything specific in CA law that I should be aware on this topic.

It seems that the president of my board has been operating a separate committee for this recreation area, and any decision making for the recreation area happens in this committee. No meeting agenda, no minutes, and no follow up on what is decided in these meetings, we also have no idea who is on the committee. It seems like the president is using it as a way to be able to make decisions on his own without input from either board, but we can't really tell since he doesn't give us any material updates regarding the committee. Is this legal? I can't find anything in our governing documents about it, so I am hoping that there might be someone out there that has experience with this kind of situation.

Any information you have is greatly appreciated!

Kerry,

Your board sounds as if it's a "master association" which would possess management oversight of amenities shared by everyone in a housing development (condos, single family and town home). I would say that your board is the manager of the pool and clubhouse and sets policy for it.

Under a master association (at least mine), it's established like the U.S. Senate. Each community is encouraged to have representation but no sub-community can dominate the board, even if one sub-community has majority of owners on the property. The master association isn't attached to any sub-HOA boards; it's independent and has a fiduciary interest to keep its independence.

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