The HOA Board Quarterly Summer 2013 Issue #6 | Page 4

FINED FOR E-MAILS QUESTION : I have been told that I will be fined if I continue to email the board instead of directing my comments and questions to the management company . Is this legal ?
ANSWER : Yes , you can be fined for continuing to send emails once you ’ ve been told to stop . Directors are volunteers and have private lives . They don ’ t sign on for roundthe-clock emails ( or phone calls ) from members . Matters affecting the association can be addressed via the management company or during open forum at board meetings . Accordingly , the board may rely on the nuisance provision of the CC & Rs for the fines or it may adopt specific rules regarding harassing emails and phone calls .
PAYING TAXES QUESTION : We are a 6-unit unincorporated condo association . Do we have to file a tax return ? We have never done so and were now wondering if we are out of compliance .
ANSWER : Being an unincorporated association does not exempt you from filing an income tax return . For federal purposes , unincorporated associations still file as if they were incorporated . For California , if taxable income is less than $ 100 , a California corporate return is not necessary . Additionally , most associations have filed for exemption status under Revenue & Tax Code 23701t and must file an annual information return ( Form 199 ). If the association ’ s average revenue falls below $ 25,000 , Form 199 is not required .
Thank you to Steven Schonwit of the Schonwit Consulting Group for his information on answering this question .
TURNING OFF WATER QUESTION : In regards to suspending privileges , is it possible to suspend partial water privileges ? For instance , can a plumber go into an owner ’ s unit who lives below the deadbeat and install turn-off valves for the unit , so they have some water but making it difficult for them to either bathe or do their dishes ?
ANSWER : No .
SOLAR PANEL LOAN QUESTION : Our board is considering securing a 5-year loan for the purpose of installing solar panels to generate electricity and solar heating for our pools . We estimate the costs will be almost completely off-set by the savings in our gas and electric expenses . We plan to submit a ballot to all home owners to confirm approval from a majority before we proceed . Is this required ? And how will this indebtedness impact individual home owners ?
ANSWER : If the loan requires a special assessment of more than 5 % of the budget , you need homeowner approval . The indebtedness should have no effect on owners ’ credit since the loan will be to the association and not to individual owners .
Contact us at ( 800 ) 464-2817 or info @ adamskessler . com
Adrian J . Adams , Esq . Adams Kessler PLC

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