By Kate
Poss
Correspondent
Published Sunday
November 21, 1999
Attempting to
lend a hand to beleaguered homeowners at Le Parc Condominiums in Simi
Valley, Assemblyman Tom McClintock, D-Granada Hills, discussed Saturday
authoring a law that could protect residents from their prior homeowners
association's liabilities.
"These homeowners have been dragged through a ruinous process by
surrogates," McClintock said. "This is one of many nightmares unfolding in
the state. I acknowledge the need for a homeowners association to maintain
property, but it should not encroach on (homeowners') personal property
rights."
Speaking in a town hall meeting format at the Royal High School
auditorium, McClintock met with about 100 Le Parc homeowners who are
trying to protect their assets in the wake of a $7.2 million judgment
against their former homeowners association.
The judgment, spread across 30 years, could amount to an estimated $21
million in assessments. The judgment against Le Parc's previous homeowners
association resulted from a breach of contract and libel suit filed by
ZMCorp of Arcadia for work the contractor did in 1994.
While the association is appealing the September ruling by a Superior
Court judge, the 264 condo owners are forced to pay an additional $166 a
month in assessments. Those who don't may have a lien imposed on their
property.
Because a court-appointed receiver, The Becker Group of Ventura, was
paying the judgment and not the homeowners' basic utilities --
electricity, water, gas and trash -- the homeowners were in danger of
having them shut off. But earlier this month, the Becker Group started
paying the bills. Meanwhile, grounds upkeep and general building
maintenance have declined in the wake of the judgment.
Ference Gutai, president of the Le Parc homeowners association, said
Saturday the fact that a homeowners association is being sued does not
mean that individual homeowners should be liable as well.
"The common areas (owned by the association) should be subject to
liability and not the homes," Gutai said. "Our basic necessities should
not be at risk. Our homes are our asset. My asset is not the homeowners
association's."
Jim Lingl, an attorney representing the Le Parc homeowners association,
drafted sample legislation for McClintock and his staff to consider. The
proposal would require a receiver to pay utilities and take care of the
basic needs first before paying off a liability judgment.
In addition, Lingl's proposal seeks to protect individuals who belong
to a condominium association by preventing the board from raising
assessments due to instances such as suits against the association without
advance notification and majority approval by the homeowners.
McClintock and his staff said they will review the proposal's pros and
cons in Sacramento and if it passes muster, the assemblyman will consider
submitting it as a bill for the Assembly and Senate to approve.