The Law Journal, Spring 2019 by CACM-California Association of Community Managers

Finance 101 for Community Managers – Get a leg up on 2019 budget prep and financial review

IN THIS ISSUE CONFLICT OF INTEREST DISCLOSURE REQUIREMENTS FOR COMMUNITY MANAGERS The who, what, when and how of California’s recently enacted statutory requirements. NEW FINANCIAL REVIEW REQUIREMENTS Navigating the legislative changes to the Davis-Stirling Common Interest Development Act and how it impacts boards that do not have monthly meetings.

SPRING 2019

Be Ready for All Seasons with Strategic Planning Improve Operations, Increase Property Values and Strengthen Community Engagement BY JOHN F. BAUMGARDNER, ESQ. – CHAPMAN & INTRIERI, LLP

community’s character and property values can be directly related to the maintenance of an association’s common areas. Community upkeep can also impact an association’s membership level of satisfaction, either positively or negatively. To safeguard an association’s ability to effectively and efficiently conduct maintenance, it must tackle long-term, strategic planning related to its maintenance, repair, and replacement obligations. Effective longterm, strategic planning will identify and

ensure compliance with an association’s obligations, engage the membership in decision making, and evaluate alternatives to current practices.

Identifying And Ensuring Compliance With Association Maintenance Obligations An association’s maintenance obligations are often provided within the association’s governing documents. These obligations are generally established by the original builders of the property to

designate common areas maintenance vs. separate interest maintenance. Depending on the type of community (i.e., condo vs. single family homes), the vast majority of these critical maintenance obligations may fall on either the association or individual homeowners. Although these documents cover most maintenance obligations, additional obligations can be found within the Davis-Stirling Act (Civil Code § 4775) and product warranty information for Continued on page 2

THE

Law Journal

A Practical Review of Community Management Law Published by

California Association of Community Managers, Inc. 23461 South Pointe Dr., Ste. 200 | Laguna Hills, CA 92653 949.916.2226 | www.cacm.org

2019 CACM LAW SEMINAR ADVISORY COMMITTEE CHIEF EDITOR Fred Whitney, Esq. Whitney & Michael, APC

ATTORNEY GUEST EDITOR Katrina Solomatina, Esq. Berding | Weil LLP

COMMITTEE MEMBERS Craig Combs, Esq. Wasserman Kornheiser Combs LLP John Hansen, Esq. Baydaline & Jacobsen LLP Alex Sohal, Esq. Adams Stirling Ian McDonald, CCAM Action Property Management, Inc., ACMC Jill Morgan, CCAM Allure Total Management Zayra Yves, CCAM-HR Northpoint HOA The CACM Law Journal is distributed four times annually to members, affiliates and supporters of the California Association of Community Managers. DISCLAIMER: CACM does not assume responsibility for the accuracy of articles, events or announcements listed. Please be advised that the opinions of the authors who contribute to the Law Journal are those of the author only, and do not necessarily reflect the opinions of CACM and other industry attorneys. Please note that in a constantly evolving industry there are frequently multiple interpretations of the controlling statutes and case law. The information contained in these articles is of a general nature and not intended as legal advice. If you have any questions, please discuss them with your association’s legal counsel.

Be Ready for All Seasons... Continued from Front Page

manufactured products (i.e., windows, doors, appliances, HVAC systems). These homeowner and association maintenance obligations detail the minimum level of upkeep required to ensure specific building components last their expected life and that there are sufficient reserve funds to cover their replacement. The association can meet many of these obligations through community inspections which can be performed by managers or professional inspection companies. Additionally, performing these inspections based upon the association’s maintenance calendar, which identifies replacement timelines and maintenance requirements for major reserve items, allows an association to be proactive in managing its common area components. Using proactive inspections allows a community manager and association to detect failing/defective components, identify necessary repairs, and defer unnecessary maintenance. Inspections can also be used to distinguish common area damage caused by association property and damage caused by homeowners. These practical maintenance strategies help save managers and associations time and money.

Developing Proactive Planning Through Community Engagement

Courses Come to You! If your schedule doesn’t mesh with our schedule, bring a CACM course to your area. Individual managers can join a wait list through our Request a Course program, and management businesses can organize a Private Offering. Learn more at www.cacm.org. 2 The Law Journal | www.cacm.org

By using maintenance and long-term planning strategically, an association can tap into its membership’s creativity, knowledge and expertise. Throughout the planning process, an association can provide information to the membership related to its on-going and future maintenance obligations as well as possible cost-efficient alternatives. This information can be provided through town hall meetings and/or community notices. Using these tools, an association can provide its proposals and strategic plans to the membership while receiving direct feedback from the membership. If some members become fully engaged in the process, a board can appoint a special committee to examine the association’s maintenance protocol and long-term alternative practices or building components, subject to limitations in governing documents or statute. (e.g. Corp. Code § 7212.) If meeting participation or community engagement is minimal, an association can draft and distribute homeowner surveys to identify membership priorities related to the associations’ maintenance, repair, and replacement obligations. This permits members to provide their opinion without requiring their attendance at board meetings or participation in a special committee.

Developing Long-Term Proactive Maintenance Strategies Based upon community feedback, the association can create a proactive maintenance strategy that reduces costs, introduces more efficient components and environmentally sustainable products. In order to develop its long-term maintenance strategy, the association must first determine the remaining useful life expectancy of its major components, which are generally listed within the reserve calculation. However, be aware that Civil Code § 5570 (B) (2) notes that “[c]omponents with an estimated remaining useful life of more than 30 years may be included in a study as a capital asset or disregarded from the reserve calculation . . .” If the association is responsible for a major building component that is disregarded from the reserve calculation, managers should similarly determine the remaining life expectancy and ensure that it is included on future reserve calculations once the life expectancy falls below 30 years. Following the determination of remaining useful life expectancy, the association can begin to evaluate varying replacements to maximize efficiency. Building components which can provide savings for the association include energy efficient mechanical and heating equipment, low-e glass/ windows, LED lights, drip irrigation vs. sprinklers, use of solar panels, and drought tolerant, native plants. When replacing major components, an association should also consider alternatives that provide longer life expectancy. Some examples include using cementitious siding and trim products instead of wood and tile roofing instead of composite shingles. A thorough evaluation of these components can be performed by a manager, association, or member committee through properly licensed vendors and contractors. These requests for information or proposals allow an association to proactively tap into the extensive knowledge and expertise of the prospective vendors. These proactive steps will also ensure that an association’s reserve budgets properly consider the true cost of replacing major components. If these steps are taken too late, an association may not be able to commit to its strategic goals due to unexpected costs, necessity of emergency action, or simply by lacking the knowledge of alternative products.

Other Considerations Lastly, if major components are failing unexpectedly within 10 years of construction, it may be necessary for the board to retain a licensed contractor to investigate the cause of the failure. If the component is defective, a claim under the Right to Repair Act (SB800) may be necessary to recover funds to compensate the association for any repairs and damages. ABOUT THE AUTHOR John F. Baumgardner, Esq. is an attorney with the law firm Chapman & Intrieri, LLP located in Roseville. He specializes in CID and Civil Litigation and has been serving the community association industry for the past 4 years.

Conflict of Interest Disclosure Requirements for Community Managers BY DAVID HICKEY, ESQ. AND NATALIE STEPHAN, ESQ. – HICKEY & ASSOCIATES, P.C.

he California Legislature has enacted certain statutory requirements in the Civil Code and the Business and Professions Code (“B&P”) to require community managers to make certain conflict of interest disclosures to common interest developments (“CID”.) The intent behind such laws is to provide guidance to community managers concerning what may constitute a conflict of interest that needs to be disclosed to CID boards and provide CID boards with the necessary tools to make informed decisions regarding proposed service providers. B&P § 11504 describes those disclosures that need to be made on an annual basis. B&P § 11504 states that persons who provide, or contemplate providing, the services of a manager to an association must disclose any referral fee or other monetary benefit received from a thirdparty provider distributing those documents required in a CID Annual Budget Report. Thus, if a

community manager has an established relationship with a document provider such that the manager receives a referral fee or monetary benefit for using the services of that document provider, such a fee or benefit would need to be disclosed to the CID board in writing. B&P § 11504 further directs managers to comply with the disclosures required by Civil Code § 5375, as discussed below. Civil Code § 5375 also describes certain disclosures that need to be made, in writing, by prospective managing agents to boards of directors as soon as practicable, and no more than ninety (90) days before entering into a management agreement. Civil Code § 5375 provides, among other things, that before entering into a management agreement with a CID, prospective managing agents must disclose any business or company in which the CID manager or management firm Continued on page 4

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has any ownership interests, profit-sharing arrangements, or other monetary incentives provided to the management firm or managing agent. Accordingly, if a manager, and/or the manager’s firm, have an ownership stake in, or other profitsharing arrangement with, any business, whether or not such business is utilized or contracted by the CID, such a relationship and monetary incentive would need to be disclosed, in writing, to the CID’s board of directors. Civil Code § 5375 further requires prospective managing agents to disclose whether the CID manager or management firm receives a referral fee or other monetary benefit from a third-party provider distributing those documents pursuant to Civil Code §§ 4528 and 4530. Thus, if a third-party document provider furnishes a monetary incentive or referral fee to the manager or management company for outsourcing the distribution of such documents, the same would need to be disclosed to the CID boards. The California Legislature also enacted Civil Code § 5375.5 to expand the requirements imposed on CID managers

by Civil Code § 5375. Civil Code § 5375.5 requires CID managers or management firms, when presenting a bid for service to the association’s board, to disclose any potential conflict of interest to the board in writing. This statute defines “conflict of interest” as 1) any referral fee or other monetary benefit that could be derived from a business or company providing products or services to the association, or 2) any ownership interests or profitsharing arrangements with service providers recommended to, or used by, the association. For example, if, upon being directed by an association’s board to solicit bids from landscape companies for an anticipated landscape project, a manager (or management firm) owns a stake in a landscape company and seeks to include his or her company on the list of bids from potential landscape contractors, the manager would need to disclose such an ownership interest when presenting the landscaping bids to the board. By enacting such statutory provisions, the Legislature has indicated that disclosing those monetary incentives and/ or referral fees that managers may receive as related to their management work for

CIDs is imperative. While these provisions may appear to increase managers’ obligations when it comes to certain disclosures to be made at varying times, the intent behind such legislation is to increase transparency between managing agents and CIDs, which would appear to benefit CIDs, their members, and their managing agents. The matrix below provides a summary of the described disclosure requirements.

ABOUT THE AUTHORS David Hickey, Esq. is the founder of Hickey & Associates, P.C. and focuses on representation as General Counsel for community associations. He has 26 years’ experience in the industry.

Natalie Stephan, Esq. is an associate at Hickey & Associates, P.C. and focuses on transactional and litigation matters in the area of community association law. She has 2.5 years expereince in the industry.

D I S C LOS U R E R E Q U I R E M E N TS WHO

Manager/ Management Company

Prospective Manager/ Management Company

Manager/ Management Company

WHAT Disclose information required in B&P § 11504 and Civil Code § 5375, including a referral fee/ monetary benefit from a third-party provider distributing documents pursuant to Civil Code § 5300

Disclose information required in Civil Code § 5375, including any business in which the manager/management firm has ownership interests, profit-sharing arrangements, or other monetary incentives provided to the management firm/managing agent, and a referral fee/monetary benefit from a third-party provider distributing documents pursuant to Civil Code §§ 4258 and 4530

Any potential conflict of interest, i.e., 1) any referral fee/ monetary benefit that could be derived from a business providing products or services to the CID, or 2) any ownership interests or profit-sharing arrangements with service providers recommended to, or used by, the CID

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WHEN

HOW

Annually

In writing

No more than 90 days before entering into management agreement

When presenting a bid for service

In writing

New Financial Review Requirements: What To Do With Boards That Do Not Meet Monthly

brainstormed themes for the Spring issue of The Law Journal, we

BY TYLER KERNS, ESQ. – KRIGER LAW FIRM

he most significant legislative changes to the Davis-Stirling Common Interest Development Act that took effect as of January 1, 2019 were the changes made by Assembly Bill 2912. The stated legislative intent of AB 2912 was to take “initial steps to protect owners in a common interest development from fraudulent activity by those entrusted with the management of the association’s finances.” AB 2912 was supported by the community association industry, including CACM. There are three primary changes to the Civil Code that were brought about by AB 2912. First, § 5806 was added to require associations to maintain a specified level of fidelity bond coverage for its directors, officers, and employees, including coverage for computer fraud and funds transfer fraud and coverage for dishonest acts of any managing agent. Second, § 5380(b)(6) and § 5502 were added to prohibit transfers exceeding specified amounts from an association’s operating or reserve accounts without prior written board approval. Third, § 5500 was amended to require boards of directors to review on a monthly basis the financial records that were previously

When we

thought since the issue is publishing in required to be reviewed quarterly and to require that such review include certain additional records that were not previously required to be reviewed. This article focuses on the new monthly financial review requirements and how boards of directors that meet less frequently than monthly can comply with these requirements. Prior to January 1, 2019, Civil Code § 5500 required boards of directors to review the following financial records on at least a quarterly basis: (a) a current reconciliation of the association’s operating accounts; (b) a current reconciliation of the association’s reserve accounts; (c) the current year’s actual reserve revenues and expenses compared to the current year’s budget; (d) the latest account statements prepared by the financial institutions where the association has its operating and reserve accounts; and (e) an income and expense statement for the association’s operating and reserve accounts. Effective January 1, 2019, Civil Code § 5500 was amended to require boards of directors to review the specified financial records on a monthly basis instead of quarterly. In addition, there are some changes to

the list of records that boards are required to review. Civil Code § 5500, as amended, carries forward the requirement for review of a current reconciliation of the association’s operating accounts, a current reconciliation of the association’s reserve accounts, the latest account statements prepared by the financial institutions where the association has its operating and reserve accounts, and an income and expense statement for the association’s operating and reserve accounts. However, where Civil Code § 5500(c) formerly required review of the current year’s actual reserve revenues and expenses compared to the current year’s budget, Civil Code § 5500(c) has been amended to now require review of the current year’s actual operating revenues and expenses compared to the current year’s budget. Further, a new Civil Code § 5500(f) has been added to now also require review of the check register, monthly general ledger, and delinquent assessment receivables reports. These additional records listed in Civil Code § 5500(f) were not previously required to be reviewed prior to January 1, 2019. Now that boards are required to review the

early March and the managers are starting to think about budget season and financial reviews, the overall theme should be “Finance 101 for Community Managers – get a leg up on the 2019 budget prep and financial review.” One cannot discuss finance and not talk about bankruptcy – so this issue will give you two perspectives – one from the owner’s standpoint and the other from the association’s. Additionally, there were some new laws which went into effect in January of this year concerning new financial review requirements and how boards that do not meet monthly review the association’s financials on a monthly basis. Another topic which you will find interesting has to do with the community managers’ required financial disclosures. Finally, we want you to be ready to advise your associations with effective, long-term strategic planning which will ensure compliance with their obligations, improve operations and strengthen their community.

Katrina Solomatina, Esq. is an attorney with the law firm Berding | Weil LLP in Walnut Creek. She has been representing community associations for the past 6 years.

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records specified in Civil Code § 5500 on a monthly basis instead of quarterly, how will boards that meet less frequently than monthly be able to comply with this requirement? One obvious solution would be for such boards to increase the frequency of their meetings to monthly. Alternatively, Civil Code § 5501, added effective January 1, 2019, sets forth a procedure for complying with the monthly review requirements “independent of a board meeting.” Section 5501 provides, “The review requirements of Section 5500 may be met when every individual member of the board, or a subcommittee of the board consisting of the

treasurer and at least one other board member, reviews the documents and statements described in Section 5500 independent of a board meeting, so long as the review is ratified at the board meeting subsequent to the review and that ratification is reflected in the minutes of that meeting.” Therefore, a board that meets less frequently than monthly could continue to do so and still meet the monthly review requirements of Civil Code § 5500 as long as the board complies with Civil Code § 5501. The records described in Civil Code § 5500 will still need to be prepared each month and distributed to every individual member of the board or to the designated subcommittee members to be reviewed monthly, but such review can be conducted

independent of a board meeting. Then, as a noticed agenda item at the next board meeting, the board must ratify the review of the records for each month that a review was conducted independent of a board meeting, and that ratification must be reflected in the minutes of the board meeting. Many boards already meet monthly and review their association’s financial records at each meeting. These boards should be sure that such review includes all of the records now required to be reviewed pursuant to Civil Code § 5500 as amended effective January 1, 2019. Boards that meet less frequently than monthly should familiarize themselves with the review requirements of Civil Code § 5500 and

implement a plan to comply with the monthly review requirements in accordance with the procedure set forth at Civil Code § 5501. Boards have a duty to comply with these review requirements, and such review may help protect against fraudulent financial activity.

ABOUT THE AUTHOR Tyler Kerns, Esq. is an attorney with Kriger Law Firm located in La Mesa. He specializes in community association law and has been serving the industry for 9 years.

Association Strategies When an Owner Declares Bankruptcy BY PAUL W. WINDUST, ESQ. – BERDING | WEIL, LLP

t goes without saying that assessment collection is the lifeblood of management and operation of a community association. A crucial step in the collection process is the recording of an assessment lien at the earliest possible opportunity. This is especially true if the owner files a petition in bankruptcy. The most common bankruptcy filings faced by a community association are petitions filed under chapter 7 and chapter 13 of the United States Bankruptcy Code. In a chapter 7 filing, the debtor’s non-exempt assets are liquidated by a bankruptcy trustee and the proceeds are distributed to creditors. The debtor’s objective in chapter 7 is to obtain a discharge of all unsecured debts. A discharged debt is not enforceable or collectible.

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In a chapter 13 filing, the debtor proposes a repayment plan that must be approved by the Court. In a chapter 13 plan, the debtor is required to pay some or all pre-petition debts over the life of the plan, usually five years. If the debtor complies with the plan, he will receive a discharge of pre-petition debts. Under recent case law, a debtor can also discharge post-petition assessments in chapter 13. The bankruptcy notice will set a deadline for filing proofs of claim. No proof of claim is required in a “no-asset” chapter 7 case. However, a proof of claim is required in a chapter 13 case. There are two types of claims; unsecured claims and secured claims. If the association timely recorded an assessment lien for unpaid assessments, then it may file a secured

claim which gets better treatment under chapter 13. An automatic stay arises when bankruptcy is filed and prevents further collection action. Even though the debtor files a bankruptcy petition, the debtor must pay post-petition assessments, which are assessments that come due after the date the petition is filed. If the debtor fails to pay post-petition assessments, the association may obtain relief from the automatic stay and enforce its assessment lien. Moreover, a lien filed pre-petition remains a claim on the debtor’s real property despite the bankruptcy filing. The assessment lien will survive bankruptcy unless the debtor successfully moves the court to avoid the lien. Post-petition assessments are not dischargeable in chapter 7. Pre-petition

assessment obligations not secured by an assessment lien are considered unsecured debts and dischargeable. Therefore, it is important to record an assessment lien because while a discharge will release the debtor from the personal obligation to pay pre-petition assessments, it will not release the real property from the association’s claim for pre-petition assessments. It is for this reason that many debtors will attempt to avoid the association’s assessment lien. Lien avoidance can be accomplished in chapter 13, not chapter 7. Lien avoidance occurs when the debtor attempts to reduce the association’s secured claim to the present value of the collateral, usually the condominium unit or residence. If the condominium unit or residence has no equity to secure the assessment lien, it can be avoided. Many times, debtors will undervalue their units or residence to accomplish lien avoidance. Therefore, the association should review the debtor’s bankruptcy schedules to ensure that the unit or residence is not undervalued. A debtor can avoid an assessment lien by filing a motion in the bankruptcy court or by the terms of the proposed chapter 13 plan. The association should review the plan to determine how the debtor intends to deal with the assessment lien. A chapter 13 plan must pay the secured portion of the association’s assessment lien. A debtor may be motivated to undervalue his or her unit or residence to reduce the apparent equity in the property and cause the association’s lien to impair the debtor’s exemptions. In summary, an association should record its assessment lien as soon as possible to ensure favorable treatment in bankruptcy. The association must review the proposed plan to determine if the debtor intends to avoid the association’s lien. If the assessment lien remains, it will survive bankruptcy and can be enforced by foreclosure after discharge. Further, the association should ensure that the debtor continues to pay assessments post-petition and then seek relief from the automatic stay if they are not paid. By staying diligent, an association can survive bankruptcy and increase the likelihood of assessment recovery.

ABOUT THE AUTHOR Paul W. Windust, Esq. is an attorney with the law firm Berding | Weil, LLP located in Walnut Creek. He specializes in real estate, commercial and community association litigation, and bankruptcy law. He has been serving the community association industry for 17 years.

What Happens When A Member Files For Bankruptcy Relief And What Can An Association Do About It? BY ERIN A. MALONEY, ESQ. – FIORE, RACOBS & POWERS, A PLC

It is a pervasive misconception that a bankruptcy filing by a delinquent member means that the amounts that the member owes to their homeowners’ association will no longer be collectible. There are things that an association can do to attempt to recover debt through a bankruptcy. In a chapter 7 bankruptcy, the trustee will determine whether the assets have equity, and if so, will liquidate the property and distribute the proceeds to creditors who have filed a claim. If the trustee determines that the assets do not have sufficient value to pay unsecured creditors, no property will be liquidated, and no creditors will be paid through the bankruptcy. Whether or not the assets are liquidated the debtor can receive a discharge of his or her pre-petition debts. Individuals with regular income can file a chapter 13 bankruptcy to repay their creditors over a period of up to five years. Creditors must file a proof of claim in order to receive payments from the trustee. If the debtor complies with the terms of a plan confirmed by the court, the debtor will be entitled to a discharge upon completion of the plan. Regardless of the type of bankruptcy, an automatic stay takes effect the moment the petition is filed. The automatic stay prohibits creditors from taking any act to collect a debt, or to create or enforce a lien upon the debtor's property. The stay remains in effect until a discharge is entered or the case is Continued on page 8 www.cacm.org | The Law Journal 7

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dismissed. Upon receiving notice of a bankruptcy an association should cease sending any late notices or statements which reflect an outstanding amount. The stay prohibits an association from imposing any new suspension of privileges against the debtor, but any existing suspension may remain in effect. A bankruptcy discharge relieves the debtor of his or her personal obligation to pay prepetition debts, but it does not affect a lien that was recorded prior to commencement of the bankruptcy. Generally, postpetition debts are not discharged, but some courts have held that post-petition assessments are subject to discharge in some chapter 13 cases. In Goudelouk v. Sixty-01 Association 895 F.3d 633 (9th Cir. 2018), the court held that the personal obligation to pay post-petition assessments arises when a debtor purchases the property, so it is dischargeable. The court held that 11 U.S.C. § 523(a)(16), which excepts post-petition assessments from discharge, only applies to cases where a discharge is entered pursuant to 11 U.S.C. § 1328(b), when a debtor is granted a discharge without completing payments required by his or her plan. A regular discharge after completing a plan (under 11 U.S.C. § 1328(a)) entitles a debtor to a “fresh start” without a personal obligation to pay post-petition assessments. The court confirmed that a prepetition lien is not discharged. The best way for an association to avoid the possibility that amounts owed to it are rendered uncollectible

is to record a lien prior to the bankruptcy filing. If no lien is recorded before the petition date, then the association takes the position of an unsecured creditor, and may not be paid through the bankruptcy. No lien can be recorded after a bankruptcy has been filed for as long as the automatic stay is in effect. Associations should adopt a policy that provides that liens will be recorded shortly after assessments have become delinquent, after prelien requirements are met. The only way to be paid through a bankruptcy is to file a claim. Claims should be filed in all chapter 13 cases, and in any chapter 7 case in which the trustee has determined that there are assets to be liquidated. Bankruptcies have quick deadlines, so act fast. If an association is proactive by recording a lien early, filing a claim before the deadline, taking steps to ensure that the claim is fully paid in the bankruptcy, then it can actually benefit from a bankruptcy filing by recovering a debt which might not have otherwise been paid.

HERE'S WHAT TO DO IF AN ASSOCIATION RECEIVES NOTICE OF A BANKRUPTCY FILING • Immediately stop all collection efforts. • File a claim if the debtor owes any pre-petition debt. (No claim is necessary in a chapter 7 case without assets.) • In a chapter 7, have the association's attorney review the debtor's petition to determine whether there are grounds to object to discharge because the debtor has transferred or concealed assets, or made a false oath or account. • In a chapter 13, creditors may object to confirmation if they disagree with the treatment of their claim proposed in the bankruptcy plan. The association's attorney should review the debtor’s schedules and proposed plan to determine whether an objection is appropriate. If an objection is filed, the court will not confirm the debtor’s plan unless it is amended to address the objection, or the objection is overruled.

ABOUT THE AUTHOR Erin A. Maloney, Esq. is an attorney with the law firm Fiore, Racobs & Powers, A PLC in Riverside. She specializes in assessment collection and bankruptcy law and has been serving the industry for 27 years.

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• Consider whether the association should file a motion for relief from stay to proceed with foreclosure, particularly if post-petition assessments are not paid. Usually chapter 7 cases are concluded within six months, so it is rarely beneficial to seek relief from the automatic stay. However, in a chapter 7 case which lingers, or in a chapter 13 case, a motion for relief from stay might be appropriate.

2019

LEGAL