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BarbaraB10 (California)
Posts: 117
Posted:
We are a 55+ age-restricted community of stick built homes (not mobile homes).
An HOA event is scheduled for this weekend and it is open to the public as well as residents of the HOA. It was not on an agenda, not discussed in open session however it may have been discussed in executive session. Our ES agendas are vague at best and the board does discuss more than the authorized topics in ES.

Yesterday I became aware that the event is being publicized at local businesses when I saw flyers for local business' entry doors, on multiple storefronts.

From our CCRs: Public Use of Common Areas. The Board shall not sign any agreement that would open any Common Area to public use, with the exception of the County Registrar of Voters to use the Recreational Center as a Voting Precinct in General Elections, without first obtaining affirmative written consent of Members representing a majority of the total voting power of the Association.

I have lived here over 10 years and to my knowledge, we've never allowed public events at the HOA common areas. The boards at that time indicated we do not hold public events on association property. This year we've had 2 public events scheduled in the last 3 months. I complained with the first event and made certain that the board knew of this restriction / clause in the CCRs, but it appears to have been ignored. This weekend's event is the second one. I am concerned with parking, foot traffic, handicap access in the bathrooms & potential for liability just to name a few.

Am I correct with interpreting that *public events are not to be held in the common areas without first obtaining affirmative written consent of Members*?
Have I missed something?
What can be done shy of hiring an attorney?
Any words of wisdom?

Thanks for your comments.
CathyA3 (Ohio)
Posts: 6,299
Posted:
First off: it sounds like your CC&Rs forbid opening the grounds to the public, so the board is violating your governing documents. Do you suppose they will fine themselves? :-)

We've talked about stuff like this in the past around here, and it sounds like you've got a good handle on why this is a bad idea. Here is a list of possible consequences (all of which my association's attorney has seen in other communities):

* Damage to the common elements. Unless everyone can walk to your community, you're likely going to have a heapin' helpin' of cars but nowhere to put them all. This means they'll park on lawns or people's driveways or in the street, causing traffic jams. And then there are the port-o-lets. Ew.

* Increase in crime rates. You will be giving strangers a perfect opportunity to case the joint or even steal things during the event. Do you plan to hire security folks to protect against things getting out of hand? May be a wise thing to do.

* Insurance. You'll need to beef it up to cover the additional liability. The last thing you want is someone to get hurt (accidentally or via a slip-and-fall staged accident) and your insurance refusing to cover your losses because such events were not part of your policy.

* Will you be charging admission fees? If so, this may have implications for your non-profit status.

* I suspect you're right about disability access. I believe that public facilities must provide for the needs of disabled people, and you're turning your private common space into public space. Your association's attorney may be helpful if you run this by him/her.

* Last but not least, I assume there will be some homeowners who will have no interest in the event and who will be disturbed by the noise and commotion. That's hardly fair to them. And to add insult to injury, they'll have to pay should any of the events above occur.

I agree with you that this shouldn't happen. It sounds like the current board has made up its mind, but I think that I would send them a letter outlining your objections and the justifications for each objection.

I hope you'll succeed in getting their attention.
MarkM19 (Texas)
Posts: 1,459
Posted:
Barbara,
Any 1 of Cathies Bullet points would make this board member concerned. If you add more than 1 of the points to that and I would say what benefit are we going to get from the event that would make it worth the risks. Sometimes you have to open the eyes of the sleeping members to get them to see what is clearly in front of them.
KerryL1 (California)
Posts: 14,550
Posted:
Effective 1/18, Barbara, was new CA legislation where residents may use the common areas for events related to HOAs and even political candidates in your area if they come to speak about HOAs. The HOA cannot even charge the candidate or group a deposit or rent for the space.

Are these two events of this type??

I'm, sorry i can't remember the details and don't have time to look it up right now, but see if you can't find it at davis-stirling.com on their Main Index. I also can't think of what the heading would be. Community Room Use? Common areas and look at the cate gorges therein?

It's nots that such common areas can be used for any public event, just certain ones and your HOA's rules to use these areas would need to be updated to include the concerns you & Cathy expressed.
BarbaraB10 (California)
Posts: 117
Posted:
Thank you for the replies. I am in the process of writing to the board.

What is frustrating to me is this seems to be a breach of fiduciary duty. They will not consult with the attorney for guidance nor will they do research on the matter. They have expressed this repeatedly at board meetings when a homeowner mentions consult the attorney on a particular issue.

To me, it is common sense to go to the governing docs for guidance and if it's not in there, then go to Davis-Stirling Act or DS website and do the due diligence required to fulfill your fiduciary duty to the members of the association. Consulting the attorney would be another choice. What is wrong with more, not less, information on which to base your reasoning, decisions and actions?

Thanks Cathy. I appreciate your additional input as these are also my concerns. G-D forbid if there were to be an accident. How would insurance cover something that is explicitly prohibited in the CCRs? If insurance declined to pay the claim, then owners would experience a financial impact.

Thank you Mark. You brought up another valid point - "what benefit are we going to get from the event that would make it worth the risks"? Purely social & entertainment. To me, it's not worth the risk.

Thanks Kerry. The first event was an informational emergency preparation assembly and the second one scheduled in 2 days is a craft fair.

I do know the statute you referred to. Peaceful assembly and equal time to be afforded to opposing viewpoints and candidates. The HOA common areas must have reasonable rules and be made available at no charge.

Is this what you are referring to? >>https://www.davis-stirling.com/HOME/Statutes/Civil-Code-4515 and/or >> https://www.davis-stirling.com/HOME/Political-Activities-Flyers Our rules do need updating so thank you for bringing that up.

KerryL1 (California)
Posts: 14,550
Posted:
No, I'm referring to one that became effective on 1/18. I'll see if I can find it now. A crafts fair would not qualify.
KerryL1 (California)
Posts: 14,550
Posted:
At Davis-stirling.com, go to Political Acts & Flyers to see a whole page discussing the legislation (Cov. 4515(b)(2).

Our HOA attorney wrote guidelines for their accounts to help protect them from this sort of wide open situation.

Your board sounds like it doesn't care what your own documents say concerning open meetings, and that's not good. But assuming they still hold open meetings sometimes--how often?? you can mail them your objections about the craft fair. (The emergency prep event may qualify as OK under this statute.)

Do many Owners attend the meetings?? If you cannot get the board to change its behavior you'll need to try to rally neighbor support and get rid of some of them at the next election. Hard work of campaigning, etc., but our HOA did it several years ago and just last month!!

Or you could try to go the small claims court route about which i know nothing. We have no agency or ombudsperson in CA to advocate on the behalf of homeowners.

BarbaraB10 (California)
Posts: 117
Posted:
Thanks Kerry. Don't know if you noticed that I had provided that very link in my previous reply to you.

There is tremendous apathy in my HOA. Attendance at meetings varies but those numbers seem to be dwindling.

Perhaps the board will change their behavior if it hits them in the pocketbook. I am not one to advocate a lawsuit - I would rather consider ADR/IDR to present my concerns. Maybe that would be effective because we're not getting anywhere with the current strategy. Time to think out of the box.
GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By BarbaraB10 on 11/14/2019 2:15 PM
What is frustrating to me is this seems to be a breach of fiduciary duty.

I think it would only be a clear breach of fiduciary duty if they themselves are attempting to profit personally from it. Ignoring the CC&Rs isn't automatically a breach. There's a pretty high threshold for an actual breach of fiduciary duty. Enriching yourself at the association's expense usually meets that threshold.
BarbaraB10 (California)
Posts: 117
Posted:
Thank you, Geno.

Breach of duty may have been a little harsh - thanks for putting it into perspective.

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