Co-op but not Common Interest Development (Calfornia)

Started by AM4 • 6 replies • 505 views

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AM4 (California)
Posts: 4

Posted:

California Civil Code Sections 4000 through 6150 (="Davis-Sterling") govern HOAs for condominiums, cooperatives, and planned unit development. They govern everything from assessments to financial dealings to property maintenance to dispute resolution, etc., etc.

These laws appear to only apply to common interest developments though. Does anyone happen to know what laws regulate the same subject matters for a HOA in a cooperative community that is NOT a common interest development? The cooperative has common areas, but the homesites do not have individual parcel numbers (it's a non-profit mutual benefit mobilehome park), therefore it is not considered a common interest development.

Which laws would regulate say the financial affairs or dispute resolutions of such a co-op non-common interest development HOA, since Civil Code §5500-§5580 only applies to co-op common interest development HOAs? Surely there's some type of regulation authority for those types of HOAs?

Any opinions would be appreciated!

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Opinion: Sounds like your a condominium, no matter what you call yourself.

KerryL1 (California)
Posts: 14,550

Posted:

I really know nothing about this, AM4, but are you sure that a development (of whatever) must have "parcel Numbers" to be a CID in CA?

We're a CID-in our case a high rise condo. Our corporate status like yours is a non-profit mutual benefit corporation.

Do you have a Declaration?

Take a look at Davis-stirling.com Main Index, CID to see if it helps. Otherwise, you may need to ask an attorney.

AM4 (California)
Posts: 4

Posted:

KerryL1, it was the cooperative's attorney who said that the mobile home park was not a CID due to no parcel numbers. One single declaration was filed a few years ago, but according to the attorney it was filed in error, says it never should have been filed, and no subsequent declarations were ever filed.

Another attorney that had filed a lawsuit (unrelated matter, had nothing to do with Davis Sterling) against the mobile home park thought that Davis Sterling still applied, regardless of whether it was a CID, but he never did legal research to confirm this because the subject only came up in passing and was not relevant to his lawsuit.

I am only asking this question out of personal curiosity, not because I have a legal issue that needs dealing with. This is why I thought I would ask here to see if anyone here knows. Trying to avoid paying a fee to have my curiosity satisfied :-)

AM4 (California)
Posts: 4

Posted:

I forgot to mention, the cooperative has no recorded covenants, which apparently is another requirement for a CID. But my curiosity arises because even if it is not a CID, there have to be laws and regulation that apply to such a HOA, and if it's not Davis Sterling, what is it? I would love to get to the bottom of this mystery :-)

KerryL1 (California)
Posts: 14,550

Posted:

There aren't many CA posters here. But I can point out that "declaration" and "covenants" are the same thing. Another term is CC&R--Covenants, Conditions and Restrictions. It seems to me that if a "declaration" was recorded, you want to read it to see what it specifies.

A source of guidelines for your Co-op is Calif. corporations code since you are a corporation.

AM4 (California)
Posts: 4

Posted:

Quote:

Posted By KerryL1 on 11/17/2019 8:48 AM
There aren't many CA posters here. But I can point out that "declaration" and "covenants" are the same thing. Another term is CC&R--Covenants, Conditions and Restrictions. It seems to me that if a "declaration" was recorded, you want to read it to see what it specifies.

A source of guidelines for your Co-op is Calif. corporations code since you are a corporation.

I guess I used the wrong word. When I referred to a declaration, I meant the CID Statement that is filed with the Secretary of State. One was filed, but supposedly in error. No documents were ever recorded.

I believe the Corporations Code regulates quite a few things that apply to the type of HOA in question, but it's a mystery to me (and probably will remain a mystery for now) how this type of HOA can function without such detailed laws as the Davis Sterling ones. It's almost scary to think that these types of HOAs can do as they please because there are basically no laws that regulate them (kinda strange considering California regulates so many things).

Thank you, KerryL1, for having taken the time to respond!

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