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Showing posts from April, 2018

‘Political Free Speech’ in CA HOAs ▶ Using New Law SB407

VIDEO ▶ SLIDESHOW ▶ PDFALTACITIES today follows The Center for California Homeowner Association Lawa clearinghouse of consumer education, training, and referral services for the estimated 9 million California homeowners who now live in over 45,000 common interest development (CID) or HOAs in the state. CCHA is created to serve consumers who live in these localities or are considering purchasing an association home.
The CCHA mission is to provide training and support to public interest attorneys, to legal services organizations, to fair housing agencies, and to other nonprofits serving homeowners; to government agencies with jurisdiction over CIDs, and public officials, journalists, and researchers delving into the public policy issues raised by CIDs in their role as quasi-local governments. The focus of the Center is the web of laws and regulations creating the CID legal framework that governs both the lives and the property of association homeowners. ALTACITIES is a contributing m…

ALTACITIES® ▶ HOA ‘Business Judgment Rule’


Delivered by Feedburner Homeowners won’t reside long in a California Common Interest Development or Homeowner‘s Association (HOA), without coming to face with the state corporations code. Even though officers and directors are deemed fiduciaries, boards are not required to make the "right" decision. Rather, they must make what they believe to be the best decision for the corporation with the available information. Corporations Code §7231(a) protects directors from personal liability if they make decisions that result in damage or loss to others, provided their decisions were made:

In good faith,
In a manner which the directors believe to be in the best interests of the corporation, and
With such care, including reasonable inquiry, as an ordinarily prudent person in a like position would use under similar circumstances. The most-often cited caveat and premise for how the Business Judgment Rule appli…