Category Archives: Homeowners Associations & Non-Profits

Considerations in Converting a For-Profit into a Nonprofit

  • Mar 14 2017

Business owners may decide to make the switch from a for-profit corporation to a 501 (C) (3) tax-exempt nonprofit organization when their purpose has shifted from making a profit to furthering a social or charitable cause. There are several factors to consider before making this important decision which include the loss of individual control, primary goals and activities of the corporation and the appropriate method of transition. A nonprofit corporation is a legal entity...

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New Bill Poses Limitations and Unnecessary Expenditures

  • Mar 15 2016

By: Roy Schneider, Esq. Early this year, an act to amend Section 4925 of the Civil Code, relating to common interest developments was introduced by assembly member, Don Wagner. The proposed bill will allow any community association member’s attorney to attend all association board meetings which the member may attend. While it may seem like common sense to allow a member’s attorney to be present at any board meeting where he or she may...

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Client Alert – AB 2755 Signed Into Law Prohibiting “Non-Voting Directors” on Non-Profit Boards

  • Nov 25 2014

Governor Jerry Brown signed AB 2755, which amends Corporations Code Section 5047, to make it clear that a person is only a director as defined in the statute if that person has the right to vote as a member of the governing body and that a person who is a director by virtue of occupying a specific position within or outside the corporation (an ex officio director) can only be a director if that...

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California’s Drought’s Impact on Your Common Interest Development

  • Aug 1 2014

Published in the CAI-CIC Channels of Communication Second Quarter 2014 Magazine By Roy Schneider, Esq. California’s three-year dry spell is taking a toll on the economy and environment.  Last year was the driest ever in California, since record-keeping began in 1895.  According to the California Farm Water Coalition, the lack of water needed to produce everything from milk and beef to wine and avocados could result in lost revenues exceeding $5 billion in 2014...

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New Laws Assist Non-Profits

  • Jan 10 2014

By Roy Schneider, Esq. Effective January 1, 2014, non-profit organizations exempt from taxation under Sections 501(c) (4), (5), (6) or (7) of the Internal Revenue Code (IRC) provisions may now apply for state exemption in California using short Form 3500A, rather than the lengthy Form 3500. Those non-profit entities primarily benefitting from the new legislation include civic leagues, social welfare organizations and local associations of employees (exempt under 501(c)(4)), labor, agricultural and horticultural organizations...

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Newer HOA’s—Know Your CCR’s

  • Oct 9 2013

By Kathi J. Smith, Esq. Common interest developments built after 2003 have the most up-to-date floorplans and modern amenities, which is why owners love them. These new construction homes also have a clock ticking on remedying any construction defects they may have. When the development is ten years old, the clock runs out, and the builder cannot be held liable for construction defects in the homes or common areas. Don’t fumble the chance to...

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My Neighbor in my Homeowner’s Association Told Everyone I’m a Drug Dea

  • Jun 12 2013

By Ted J. Schneider, Esq. Assuming you are, in fact, not a drug dealer, you may be able to successfully bring a civil lawsuit for defamation. Defamatory statements are those untruths which harm your reputation. While defaming another person is not a crime, it is a civil tort and the victim can seek redress in the courts for damages incurred. Defamatory statements can be spoken, gestured, written or pictured. Written defamation is referred to...

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Does Ethics Have A Seat On Your Community Association Board?

  • May 23 2013

By Roy Schneider, Esq. Board members of community associations juggle three different hats. One is the “I am a homeowner hat”.  Another is the “I want to be a good neighbor hat”, and the third is the “I am a board member hat”. It is sometimes difficult for board members to always know which “hat” they are wearing at which time. Even when not physically at a board meeting, a director must consider which...

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Do You Need Meeting Minutes?

  • May 17 2013

By Roy Schneider, Esq. Regardless of the size of the business, organization or homeowners association, corporations (including those organized under Subchapter S) must observe all of the required formalities in order to maximize the benefits of a corporation. Corporate meeting minutes document the decisions made by the company’s board of directors, and are necessary to preserve the “corporate veil” in the event of a lawsuit or other claim against the company. If corporate formalities...

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CC&Rs – To Update or Not

  • Apr 1 2013

Published in the CAI-CIC Channels of Communication First Quarter 2013 Magazine By Ted J. Schneider, Esq. As HOA attorneys, we are often asked by homeowners and managers alike: “Should we now update our CC&Rs”? Given that most of the CC&Rs we see were written either while Nixon was President, the Berlin Wall was still standing, before there were cell phones, or when the Olsen twins were still in diapers, the answer should appear obvious....

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