Real Estate & Property Law

Good Standing - Board Members - Dialogue Continued - for HOAs and Condos

I did a blog essentially similar to this in October 2007 and republished it just before this blog. As I said in that text, there is quite a bit of misunderstanding about these terms ("good standing"), and when they can be asserted to prevent someone from serving on the board, and when they can be used to prevent an owner from participating in association elections. And of course, there is today's world (and economy) some things have changed since I wrote the blog in October of 2007.

A new question arises - if an owner/board resolve an assessment delinquency or other CC&R violation via a written settlement agreement, does that resolve the violation itself, such that the owner would then be in good standing?

I would say, that "depends".

As for an example, if the settlement agreement is that the late fees and interest are to be deducted if the owner pays by "XXX" date, and the owner does pay by that date, they would be in good standing on the date they pay (assuming the docs say that they have to be "current" in their assessment payments to be in "good standing"). If the agreement involves a payment plan, the good standing issue would be resolved wwhen the payment plan was fulfilled. Thus, the agreement itself in either case would not settle the question of good standing.

Any other violation could bring in all sorts of discussions. If an owner has an unapproved pet that violates the governing documents but agreement is reached that the pet is legally/properly "grandfathered" (allowed to stay until it dies or moves away), then violation is resolved.

But if someone has erected a deck that is ordered to be removed within 30 days, that would be considered a violation until it is resolved.

So, the question of when the violation is resolved and good standing is resumed is a question of fact, depending on the situation, the type of violation, and how it is to be resolved.

Confused yet?
That is why you get help! Hopefully, the right kind of help.

Full post as published by California Condo & HOA Law on July 24, 2009 (boomark / email).