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HowardF7 (California)
Posts: 6
Posted:
I AM SEEKING INFORMATION ABOUT THE FORMATION OF LEGISLATIVE ACTION IN THE STATE OF CALIFORNIA TO SET UP
AN HOA OMBUDSMAN. This was attempted in 2006 and lost by one vote. It is now more critical than ever.
I wonder if the governor has the power to set up an Executive Order or if it belongs to the Real Estate
Board? In any case I know Florida, Illinois, Nevada has one. What has been their experiences?

TimB4 (Tennessee)
Posts: 21,059
Posted:
Virginia has an ombudsman.

They are very limited in scope and power.

In VA, they only deal with alleged violations of Statute (HOA not corporate or any other statute).
They do not deal with alleged violations of governing documents.

See their site here:

Office of the Common Interest Community Ombudsman
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By HowardF7 on 05/02/2020 12:08 PM
I wonder if the governor has the power to set up an Executive Order
California's Davis-Stirling statute mandates that aggrieved HOA members first use Internal Dispute Resolution (IDR), then attempt Alternate Dispute Resolution (ADR), prior to filing a complaint with California courts. I do not think the Governor can now order that all HOA members with a complaint now use a state-run ombudsman somewhere in this process. The reason is this would amount to an amendment of the Davis-Stirling statute. Amendments may only be accomplished with the support and operation of the legislature.
Quote:
Posted By HowardF7 on 05/02/2020 12:08 PM
or if it belongs to the Real Estate Board?
I do not see that the Real Estate Board has any power to mandate an ombudsman or any other type of dispute resolution.

What's wrong with the IDR and ADR that California currently requires?

I have read a lot of court-made HOA law ("case law"). I have read some decisions by Florida's arbitrators, working for the state via operation of Florida's Condo and HOA statutes. The arbitrators seem unstudied. By contrast, nationwide court-made HOA law is pretty consistent.

My fear with an "ombudsman" is that the state would create this civil servant position, offer some two-bit training and certification to some poorly qualified individual, and the product would be inferior to IDR, ADR and the courts.
MarkW18
Posts: 1,290
Posted:
There is a process submitted to California legislators to create a division withing the Bureau of Real Estate and funded by HOA's. It would handle mediation, but also help underfunded HOA/Condo's.
GenoS (Florida)
Posts: 4,276
Posted:
Florida has an ombudsman? News to me. There's the DBPR (Division of Business and Professional Responsibility) that hears and arbitrates certain kinds of disputes in condos and HOAs, but that's not the same thing.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Ombudsman are usually as useless as tits on a bull. They are created to make people feel good but rarely are they properly funded and staffed. Especially would be true in CA as the state has enough financial problems as is.
MarkW18
Posts: 1,290
Posted:
Quote:
Posted By JohnC46 on 05/03/2020 12:18 PM
Ombudsman are usually as useless as tits on a bull. They are created to make people feel good but rarely are they properly funded and staffed. Especially would be true in CA as the state has enough financial problems as is.

You obviously know what you're talking about. California is THE largest economy in the United States. If it were a nation, it would be the 5th largest in the world. You get the freedom to say the things you do on the internet because of technologies developed in this state. California gives to the federal government $150 billion more than it takes in. On the contrary, South Carolina ranks 10th in the country in receiving more funds than it contributes. If 25% of those funds were withheld, YOUR economy would come crashing down.

Those are the facts and they aren't in dispute!
HowardF7 (California)
Posts: 6
Posted:
thank you all.....

1. Yes California is Big with everything. Today Senior communities (Over 55) have limited funds, fixed incomes, and with the higher costs of living in Cal., IDR, ADR, any legal costs are just moot.

2. Construction of a workable Ombudsman seems the only path for those who can't afford an attorney OR proving that they don't have the money to get public Attorney or ProBono.

3. I understand that one vote in the legislature stopped by Arnold Schwarzenegger stopped it.

4. I continue to work on this issue to help those who really have no voice for their investments.

Any other thoughts would be appreciated.
MarkW18
Posts: 1,290
Posted:
Quote:
Posted By HowardF7 on 05/04/2020 5:36 PM
thank you all.....

1. Yes California is Big with everything. Today Senior communities (Over 55) have limited funds, fixed incomes, and with the higher costs of living in Cal., IDR, ADR, any legal costs are just moot.

2. Construction of a workable Ombudsman seems the only path for those who can't afford an attorney OR proving that they don't have the money to get public Attorney or ProBono.

3. I understand that one vote in the legislature stopped by Arnold Schwarzenegger stopped it.

4. I continue to work on this issue to help those who really have no voice for their investments.

Any other thoughts would be appreciated.

I put together a lengethly proposal that is sitting on the desks of three State Assemblypersons in the Inland Empire.
HowardF7 (California)
Posts: 6
Posted:
Thank MarkW18

What else are you doing? I think this is critical especially today.
I live in the IE and would love to collaborate with you.
HowardF7 (California)
Posts: 6
Posted:
Mark,

Please send me all the information. I want to work with you on this.
Is this type of communication private here? Let me know and we can
meet via zoom or skpe.

Best,

Howard
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By HowardF7 on 05/04/2020 5:36 PM
2. Construction of a workable Ombudsman seems the only path for those who can't afford an attorney OR proving that they don't have the money to get public Attorney or Pro Bono.
Even with an ombudsman, the HOA member who cannot afford an attorney would still be up against the HOA that can easily afford an attorney. Worse, a HOA member who cannot talk to an attorney would be ignorant of the law; more likely to bring up issues that have zero legal teeth; and waste taxpayers' money.

I think the better solution is to continue to expand free legal clinics, as part of the decades old "access to justice" movement. Granted this often still results in unversed members of the public clogging up court dockets with unwinnable cases.
Quote:
Posted By HowardF7 on 05/04/2020 5:36 PM
3. I understand that one vote in the legislature stopped by Arnold Schwarzenegger stopped it.
It appears the California legislature circa 2006-2008 lacked sufficient votes to override Governor Schwarzenegger's veto. See https://www.caionline.org/Advocacy/StateAdvocacy/PriorityIssues/Ombudsman/Documents/Ombudsman_Report.pdf
MarkW18
Posts: 1,290
Posted:
And CAI works against these efforts.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By MarkW18 on 05/05/2020 9:08 AM
And CAI works against these efforts.
Do tell.

Then CAI's opposition compels me to support these efforts.
MarkW18
Posts: 1,290
Posted:
Quote:
Posted By AugustinD on 05/05/2020 9:12 AM
Posted By MarkW18 on 05/05/2020 9:08 AM
And CAI works against these efforts.
Do tell.

Then CAI's opposition compels me to support these efforts.

Read the report from CAI that you posted.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By MarkW18 on 05/05/2020 11:06 AM
Read the report from CAI that you posted.
Read the facts that CAI reports separate from its editorializing.
MarkW18
Posts: 1,290
Posted:
When CAI says that owner satisfaction is 9 out of 10, I compare that to Trump saying he has 96% approval rating in the Republican Party. I stop reading at that point. I worked on both the Los Angeles and Inland Empire Legislative committees for CAI and because of that dropped my affiliation with CAI.
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By MarkW18 on 05/05/2020 11:26 AM
When CAI says that owner satisfaction is 9 out of 10, I compare that to Trump saying he has 96% approval rating in the Republican Party.
I think your analogy is perfect.
Quote:
Posted By MarkW18 on 05/05/2020 11:26 AM
I stop reading at that point. I worked on both the Los Angeles and Inland Empire Legislative committees for CAI and because of that dropped my affiliation with CAI.
I will always welcome more hard evidence of CAI people being jerks.
MarkW18
Posts: 1,290
Posted:
I patterned a proposed legislative after California AB567 which was originally introduced in early 2007.

Some numbers:

There are about 55,000 HOA's in California consisting of about 5,768,400 units. Many of the HOA's are under 25 units and therefore would not qualify for any type of SBA loans in the event of emergency repairs.

AB567 wanted to put the agency under Bureau of Consumer Affairs, I proposed putting it under Bureau of Real Estate.

It would provide training for both boards and homeowners. In the event of a dispute, the agency would be an alternative, if the dispute couldn't be handled onsite.

The agency would be a funding arm for small HOA's in need of emergency repairs where other lending institutions would not help.

Funding would be provided by HOA's at $6.00 per door annually collected by the Franchise Tax Board. The Secretary of State have a list of all incorporated HOA's, the number of units, their agent and the principal officer of the Corporation. Non-incorporated HOA,s or timeshares would not be included.

Based on today's numbers, the amount collected annually to fund the agency is $34,610,400.00 and over 5 years, $173,052,000.00

Copies of the Annual Disclosure Package and Annual Financial Review would be required from each HOA.

That is just a few of the provisions of the bill offered.
SheliaH (Indiana)
Posts: 6,964
Posted:
That's why I usually focus on CAI's educational programs because the political stuff varies by state. I guess I'm lucky - as far as I know the CAI chapter in my area doesn't have a lot of money to hire a full time lobbyist.

That said, I would like to see some sort of alternative dispute resolution program. the local BBB had one (don't know if it still exist) and it could be used in disputes between member companies and their customers. People from the community could volunteer as mediators and got six weeks of training.

Something like this could be used with a licensing board and/or the consumer protection agency in the attorney general's office or another agency. The cost of the program could be funded with some tax money and perhaps an affordable fee paid by the consumer and company, with the loser being required to reimburse the winner. I would also require both sides to agree the the decision is final - if it ends up in court, the case can be used as evidence.

Finding out how to pay for an ombudsmen program is one of the major hurdles to overcome, so if you're talking to your local representative, you better have some ideas ready. You may also need to have some ideas on what type of disputes should be heard. sometimes the HOA did everything right and the homeowner is simply wrong, but won't take no for an answer.

Until such a probe is set up, most peop!e will have to address HOA issues the long way - read your documents, attend meetings once in a while, come up with suggestions and volunteer to help instead of just complaing, get your neighbors involved and perhaps run for a position yourself. If you win, you could use resources like this website to get some ideas you might adapt to your community, along with those TWO resources. If you don't like CAI, Google HOA attorneys in your area. Some have websites that have lots of useful information.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
MarkW18
Posts: 1,290
Posted:
Here were some points brought out in the original bill.

There are more than 41,000 (now 55,000) residential common interest developments in California, comprising more than 4,300,000 (now 5,768,400) dwellings. Common interest developments comprise approximately one-fourth of the state’s housing stock.

Common interest developments are governed by associations. Managing an association is a complex responsibility. Associations are run by volunteer directors, and those directors may have little or no prior experience in managing real property, operating a nonprofit association or corporation, complying with the law governing common interest developments, or interpreting and enforcing restrictions and rules imposed by the governing documents of a common interest development. Mistakes and misunderstandings are inevitable and may lead to serious, costly, and divisive problems. Effective education can prevent or reduce the severity of problems within a common interest development.

The principal remedy for a violation of common interest development law is private litigation. Litigation is not an ideal remedy for many common interest development disputes, in which the disputants are neighbors who must maintain ongoing relationships. The adversarial nature of litigation can disrupt these relationships, creating animosity that degrades the quality of life within the community and makes future disputes more likely. Litigation imposes costs on a common interest development community as a whole, and those costs must be paid by all members through increased assessments. Many homeowners cannot afford to bring a lawsuit and are effectively denied the benefit of laws designed for their protection.

A common interest development ombudsperson will educate community association officers and homeowners regarding their legal rights and obligations. By collecting empirical data on the nature and incidence of problems within common interest developments, the ombudsperson will provide a sound basis for prioritizing reform efforts, thereby increasing the stability of common interest development law.

AugustinD
Posts: 5,144
Posted:
Quote:
Posted By SheliaH on 05/05/2020 12:22 PM
People from the community could volunteer as mediators and got six weeks of training.
Respectfully, before trusting that a volunteer with six weeks of training could get things right, I would take my chances with the other routes the typical state and HOA/condo Declaration offer, which almost always end with the opportunity to choose to file in court.
Quote:
Posted By SheliaH on 05/05/2020 12:22 PM
The cost of the program could be funded with some tax money and perhaps an affordable fee paid by the consumer and company, with the loser being required to reimburse the winner.
In the United States, unless statute or contract says otherwise, judges apply what is called "the American Rule," where each side pays her or his own attorney's fees. The legal conventional wisdom behind this is that imposing attorney's fees on the losing side will deter people from getting justice. Also a HOA attorney who knows (1) he or she is right on the law and facts, and (2) his or her pro se opponent has to pay the HOA attorney's fees, will run up the bill.

Under these terms, I would not choose this hypothetical ombudsman.
SheliaH (Indiana)
Posts: 6,964
Posted:
What I'd like to see is an alternative dispute resolution , which would have more teeth than an ombudsman. This would be the next to last resort before court - too often people don't even try to work things out but rush to sue the daylights out of someone. That's part of the reason you see so many "is this legal" questions you're nice enough to research.

I'm not saying a lawsuit may not be appropriate, but a lot of people need to stop, take a few breathes and apply a little critical thinking with a big dollop of common sense. A little thinking out of the box is also useful. The cynic in me also thinks you don't see a lot of ADR programs (and perhaps ombudsmen programs) is that attorneys don't want The competition!

The reason I said both sides should pay something is to ensure everyone has some sin in the game. If you feel strongly about your case, you should be willing to pay a little something - your have to do this anyway if you hire an attorney or go to small claims court. Your still get your costs back if you win. If anything, I would hope this can slow down some of the foolishness thats already clogging up the court.

As for the traing, what's wrong with bringing ordinary people? Half the conversation on this website are about people who have no clue how to run a non profit organization with budgets of several hundred thousand dollars of more. People are always yelling bout incompetent and unethical board members, and I, for would rather try and teach them how and why there's a method to this madness before the neighborhood explodes thanks to people who don't take the work seriously.


If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
AugustinD
Posts: 5,144
Posted:
Quote:
Posted By SheliaH on 05/05/2020 3:31 PM
What I'd like to see is an alternative dispute resolution , which would have more teeth than an ombudsman. This would be the next to last resort before court
I would support the above. I think probably every judge and her sister does too. (Every attorney in my town will tell her or his client, headed to court, that one of the first things the judge will say is, "Are you open to mediation?") As I think you know, it is not uncommon for Declarations to require either mediation or arbitration before the parties go to court.
Quote:
Posted By SheliaH on 05/05/2020 3:31 PM
- too often people don't even try to work things out but rush to sue the daylights out of someone.
I am going to split the hairs on this one a bit. What I think is common is for people not versed in the law, and angry with whomever, to make threats and have no idea of what is necessary before a viable claim may be made with a court.
Quote:
Posted By SheliaH on 05/05/2020 3:31 PM
That's part of the reason you see so many "is this legal" questions you're nice enough to research.
I think folks coming here are either trying to see what their options are, or if what they are considering is reasonable, practical and supported by law. I know there's often an appearance that certain folks come here just to have their position validated. But if their minds were truly 100% made up, they would not be coming here.
Quote:
Posted By SheliaH on 05/05/2020 3:31 PM
I'm not saying a lawsuit may not be appropriate, but a lot of people need to stop, take a few breathes and apply a little critical thinking with a big dollop of common sense.
I think a lot of people need to stop, shut up, and hit the books. (Easy to say from the vantage point of superior dinner table conversation when growing up. I know many people do not know how to teach themselves. Also this site sees a fair smattering of immigrants whose first language is not English. Increasingly I find myself shaking my head and thinking they have zero chance of prevailing in a situation where they should prevail, because they cannot make themselves understood.) As you know well, folks do not read the HOA governing documents; google; and ask questions.

Is this going to change? Surely people's compliance with and understanding of their legal obligations (to the covenants or whomever) has improved in the thirty+ years since the internet exploded. The net is a resource superior to any encyclopedia and, let's face it, even the old school style of law library.
Quote:
Posted By SheliaH on 05/05/2020 3:31 PM
A little thinking out of the box is also useful. The cynic in me also thinks you don't see a lot of ADR programs (and perhaps ombudsmen programs) is that attorneys don't want The competition!
[wink; smile] I was thinking the reason CAI opposes ombudsman programs is because yes, as you indicate, ombudsman programs likely reduce the demand for HOA attorneys. Supporting the bank accounts of HOA attorneys has been said to be a raison d'etre of CAI. I know CAI publications are not all worthless. But I believe that CAI does have an agenda, and it does not at all emphasize following the law or building good neighborhoods.
Quote:
Posted By SheliaH on 05/05/2020 3:31 PM
The reason I said both sides should pay something is to ensure everyone has some sin in the game.
Your point is valid but, as you seem to understand, I think "the American Rule" covers this already: Just paying one's own attorney is expensive enough.
Quote:
Posted By SheliaH on 05/05/2020 3:31 PM
If you feel strongly about your case, you should be willing to pay a little something - your have to do this anyway if you hire an attorney or go to small claims court. Your still get your costs back if you win.
If one wins, as I wrote in my previous post, most of the time one still pays one's own attorney fees. What the movies show are the big tort lawsuits (a.k.a. plaintiff's lawsuits or liability lawsuits or similar) where sometimes, the attorney's win their fees completely separate from what their clients are awarded. This is deceiving. Many big tort lawsuits result in the prevailing side's attorneys not being awarded their fees. Instead, the attorneys get a percentage of what the judge/jury awarded the attorney's client.
Quote:
Posted By SheliaH on 05/05/2020 3:31 PM
If anything, I would hope this can slow down some of the foolishness thats already clogging up the court.
You, others and I know the courts are terribly backlogged. I think the reasons for this are multiple: Too many attorneys looking for their big payday or just looking to put food on the table? Too many pro se folks? Though it's relatively recent that people have been going pro se in large numbers. Too little support from governors and legislators being unwilling to pay for more judges and courthouses? Too much poverty resulting in necessarily more crime (just to survive), resulting in an overabundance of criminal cases? The late Justice Scalia making too many wisecracks, wasting precious court time and taxpayer resources, while other Justices were trying to get their questions in?
Quote:
Posted By SheliaH on 05/05/2020 3:31 PM
As for the traing, what's wrong with bringing ordinary people? Half the conversation on this website are about people who have no clue how to run a non profit organization with budgets of several hundred thousand dollars of more.
I can count on one hand the veterans here I believe are competent to adjudicate pursuant to the law (which of course implies being reasonable). I think this small handful might even be an improvement on the typical judge, mediator or arbitrator.
Quote:
Posted By SheliaH on 05/05/2020 3:31 PM
People are always yelling bout incompetent and unethical board members, and I, for would rather try and teach them how and why there's a method to this madness before the neighborhood explodes thanks to people who don't take the work seriously.
I agree that when one has to go through a form of "see it, do it, teach it," then one is less likely to be a "HOA/condo vocational dissident," CCO (chief complaining officer), a non-team player, or similar.

MarkW18
Posts: 1,290
Posted:
The proposal I put together has internal and alternative dispute resolution if the homeowner choose not to go the way of the association version. Essentially it would eliminate a lawsuit and the association having to file BK because one board members didn't like a Obama sign in 2008. Most of the effort would be in training and education, very similar to how tax professionals go through annual training and education prior to filing tax returns.

The other part is funding small HOA's in the event of an emergency.

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