The European Union slapped Meta with a record $1.3 billion privacy fine Monday and ordered it to stop transferring users personal information across the Atlantic by October, the latest salvo in a decadelong case sparked by U.S. cybersnooping fears.

The penalty of 1.2 billion euros is the biggest since the EU’s strict data privacy regime took effect five years ago, surpassing Amazon’s 746 million euro fine in 2021 for data protection violations.

Meta, which had previously warned that services for its users in Europe could be cut off, vowed to appeal and ask courts to immediately put the decision on hold.

The company said “there is no immediate disruption to Facebook in Europe.” The decision applies to user data like names, email and IP addresses, messages, viewing history, geolocation data and other information that Meta — and other tech giants like Google — use for targeted online ads.

“This decision is flawed, unjustified and sets a dangerous precedent for the countless other companies transferring data between the EU and U.S.,” Nick Clegg, Meta’s president of global affairs, and chief legal officer Jennifer Newstead said in a statement.

It’s yet another twist in a legal battle that began in 2013 when Austrian lawyer and privacy activist Max Schrems filed a complaint about Facebook’s handling of his data following former National Security Agency contractor Edward Snowden’s revelations of electronic surveillance by U.S. security agencies. That included the disclosure that Facebook gave the agencies access to the personal data of Europeans.

The saga has highlighted the clash between Washington and Brussels over the differences between Europe’s strict view on data privacy and the comparatively lax regime in the U.S., which lacks a federal privacy law. The EU has been a global leader in reining in the power of Big Tech with a series of regulations forcing them police their platforms more strictly and protect users’ personal information.

An agreement covering EU-U.S. data transfers known as the Privacy Shield was struck down in 2020 by the EU’s top court, which said it didn’t do enough to protect residents from the U.S. government’s electronic prying. Monday’s decision confirmed that another tool to govern data transfers — stock legal contracts — was also invalid.

Brussels and Washington signed a deal last year on a reworked Privacy Shield that Meta could use, but the pact is awaiting a decision from European officials on whether it adequately protects data privacy.

EU institutions have been reviewing the agreement, and the bloc’s lawmakers this month called for improvements, saying the safeguards aren’t strong enough.

The Ireland’s Data Protection Commission handed down the fine as Meta’s lead privacy regulator in the 27-nation bloc because the Silicon Valley tech giant’s European headquarters is based in Dublin.

The Irish watchdog said it gave Meta five months to stop sending European user data to the U.S. and six months to bring its data operations into compliance “by ceasing the unlawful processing, including storage, in the U.S.” of European users’ personal data transferred in violation of the bloc’s privacy rules.

If the new transatlantic privacy agreement takes effect before these deadlines, “our services can continue as they do today without any disruption or impact on users,” Meta said.

“Meta plans to rely on the new deal for transfers going forward, but this is likely not a permanent fix,” Schrems said in a statement. “Unless U.S. surveillance laws gets fixed, Meta will likely have to keep EU data in the EU.”

Meta warned in its latest earnings report that without a legal basis for data transfers, it will be forced to stop offering its products and services in Europe, “which would materially and adversely affect our business, financial condition, and results of operations.”

The social media company might have to carry out a costly and complex revamp of its operations if it’s forced to stop shipping user data across the Atlantic. Meta has a fleet of 21 data centers, according to its website, but 17 of them are in the United States. Three others are in the European nations of Denmark, Ireland and Sweden. Another is in Singapore.

Other social media giants are facing pressure over their data practices. TikTok has tried to soothe Western fears about the Chinese-owned short video sharing app’s potential cybersecurity risks with a $1.5 billion project to store U.S. user data on Oracle servers.

Many of you immediately can fill that blank quickly, as this is often a fun topic of conversation. And each time I overhear the discussion, it starts with, “Well, I think I could manage differently than those horror stories of lottery winners you hear about!”

The confidence is optimistic. In fact, the dark underbelly of sudden winnings can be disastrous.

Three of the biggest tragedies people report after receiving significant windfalls are the demise of previously good relationships, the sudden occurrence of frivolous lawsuits on the part of others and the rise of scams presented to them disguised as great investments. Add to this the dilemma of not being familiar with handling larger sums of money, and the dream of winning the lottery pales.

So, if you do win the lottery or come into an unexpected windfall, how should you approach things so that you don’t become another casualty?

In three previous columns, you’ve read about ways to safeguard the income and integrate this into your estate, accounting pitfalls to avoid and wealth advice. What else should you be thinking about?

Have a vision for your life

As well-known sales coach Ursula Mentjes is fond of reminding us, “Money needs a place to go!” Her messages include the charge to plan ahead and make sure that the income supports your larger plan or vision.

The funds will otherwise disappear quickly without much, if anything, to show for it. Money is a tool, and if you have received a bigger tool, this means you will be able to build more. How does having more income help you to meet your personal vision?

Use your values

Making sure that you are grounded in your personal values will ensure that you stay on track in your decision-making around your newfound wealth and will also help you avoid many pitfalls.

What are your key values? If you have a vision for your life, how will you make decisions that support this vision?

For example, if family is one of your top values, making sure that you edify this with your spending strategies and patterns will be important.

Stewardship

Make sure that your money decisions are yielding a good investment and be sure to work with your wealth adviser, accountant and estate planning attorney.

It’s hard to imagine, but many lottery winners and other people receiving unexpected windfalls go broke quickly.

Having a vision and living by your values are a good start, but you will need to get the advice of the experts to make sure your decisions around spending and allocating monetary resources are sound.

Invest in your personal growth

By this, I mean know who you are and continue to sharpen your growth opportunities as a human being.

When we fall into stressful circumstances (and yes, coming into sudden money is stressful, even if considered positive), our weaknesses tend to flare up.

If managing your anger is an Achilles heel for you, work on it now. If conducting critical conversations with confidence is tough for you at present, dive in and learn how to do this.

Why? Because “stress mode” will push those hot buttons for each of us. And if we aren’t solid in who we are and how we want to show up in life at present, it will show up in spades when a windfall arises. Who are you – and what are your growth edges? How do you want to show up in life?

If you are intentional with these steps above, and you have a great financial team, you stand a much better chance of being one of those who can truly celebrate having come into the money to support your vision and goals.

Patti Cotton serves as a thought partner to CEOs and their teams to help manage complexity and change. Reach her via email at Patti@PattiCotton.com.

My office, Lee & Associates, celebrated 40 years this month. That’s right! All of my days have been spent at the same shop, which is a rarity for many in my trade.

Logging weekly my thoughts and experiences started in 2010 with my Location Advice Blog. And the Southern California News Group started publishing my columns in February 2015. Yep, that’s eight years and 400-plus columns.

What follows are the five most frequently asked questions asked of me as a commercial real estate practitioner. Plus, I will throw in a bonus one! Stay tuned.

Question 5: Can I make changes to the space and if so, who pays for it?

Generally and it depends.

Changes to a location – additional office, power upgrade, sprinkler retrofit, paint and carpet, moving walls, installing racks, distributing power, etc. can generally be accomplished subject to ownership approval and governmental approval with the proper permitting and code construction.

Changes to the square footage (IE: adding a structural mezzanine), changes to the common area, fencing required parking spaces, creating windows in bearing walls – not so easy.

Changes are typically paid for in one of three ways: the owner pays for all of the cost and concedes the cost (rare), the occupant pays for all of the cost (even rarer), or some combination of the two. This compromise could be an owner paying for the refurbishment of the space such as paint, carpet, and cleanup and conceding the cost and paying for the cost of a sprinkler retrofit and amortizing the cost over the term of the lease.

The “acid test” of who pays depends upon the owner’s ability to pay, the owner’s motivation, the general or specific nature of the improvements (think future marketability) and the market (is the competition delivering space to the market completely refurbished). Sometimes an owner will be willing to compensate a tenant in the form of free or half rent to offset the cost of changes.

Question 4: How do you get paid?

The owner of the property pays us.

A common misconception is the fee adds to the purchase price or lease rate. The reality is an engaged agent can achieve a much higher purchase price than the typical owner because of market knowledge and experience. On the occupant side, an experienced agent can negotiate a better lease rate and concession package because of our knowledge of comparables, availabilities, and motivation. The net result is a better deal for both parties.

Question 3: How long have you done this?

Since 1984

Real estate content (comps, avails, absorption, current pricing) is the same but the method of delivery is different. Who would have foreseen in 1984 that I would be doing this when I turned 66- prior to fax machines and the world wide web! Or, that we could survey inventory of available buildings – in our car – or at the beach – and send a list with images to our clients with the click of a button. Or, that we could send a video – in real time – of the property – unbelievable!

Question number 2: How much is my building worth?

That depends on a number of factors.

We consider the market – up trending or down trending, comparables and availabilities. If the market is up trending, chances are your building is worth more than the comps suggest. If the market is down trending, you might be best served to price lower than the recent comps and preempt a long marketing cycle. Marketing time plays a role. How long can you afford to market the building? A fire sale motivation will cause the building to be worth less. Does the building have special amenities – excess or surplus land, upgraded power, fenced yard, freezer/cooler space, special AQMD permits, etc. For the right buyer or tenant, these amenities can add to the price.

Question number 1: How is the market?

In a word, weird.

I’ve written ad nauseam lately about our markets. Suffice it to say a lot has changed since our normal up-trending 2019 commercial real estate market. Global strife, a pandemic, decades of high inflation, recessionary fears, interest rate hikes, and bank failures have all added an air of uncertainty to the ways owners and occupants of commercial real estate view the world.

Bonus question: How do you come up with your content week after week?

So many different ways.

Typically, I gain inspiration from the economy, deals I’m transacting and client interactions. Oh. And my neighbor’s occasional insight. Thanks, Rudy.

Did I leave any out? Please send me an email with your question and I will promptly respond.

Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104.

Levi Strauss was born in Germany in 1829 and moved to the United States with his family in 1847. His brothers ran a dry goods company in New York and Levi and his other family members set up an outpost in San Francisco during the gold rush.

You can read about how Strauss lost a fortune in 1857 due to a shipwreck here.

Jākobs Jufess, born in 1831, was a tailor of Latvian-Jewish origin. In 1854, at the age of 23, he immigrated to New York City, where he changed his name to Jacob Davis. Davis worked as a tailor in Maine, San Francisco and western Canada, where he also panned for gold.

More railroad than rush

In 1868, Davis moved his family to Reno, where he helped build a brewery and set up a tailor shop making items such as tents, horse blankets and wagon covers for the railway workers on the Central Pacific Railroad. Davis worked with heavy-duty cotton duck cloth and cotton denim, which he bought from Levi Strauss & Co. in San Francisco.

Should they be Jacob’s jeans?

In 1870, Davis was asked by a customer to make a pair of strong working pants for her husband, who was a woodcutter. He used duck cloth (similar to canvas) and reinforced the weak points in the seams and pockets with copper rivets. He began stitching one back pocket with an arcuate stitching design (still on Levi’s today) to separate his product from his competitors. He also gave each pair a watch pocket, which is now considered a coin pocket. In 1872, after demand increased beyond his production capabilities, he approached Levi Strauss for financial backing to file a patent. Strauss agreed, and on May 20, 1873, U.S. Patent No. 139,121 for “Improvements in fastening pocket openings” was issued in the name of Jacob W. Davis and Levi Strauss and Co.

Lasting partnership

As business continued to boom, Davis moved his family to San Francisco and managed the manufacturing plant for Levi Strauss and Co. Davis oversaw production of the work pants as well as other lines, including work shirts and overalls, until his death in 1908.

“My invention relates to a fastening for pocket openings, whereby the sewed seams are prevented from ripping or starting from frequent pressure or strain thereon; and it consists in the employment of a metal rivet, or eyelet at each edge of the pocket-opening, to prevent the ripping of the seam at those points.” — From Jacob Davis’ 1872 patent request

Levi’s today

The last factories to make Levi’s in the U.S. closed their doors in 2003. The company sourced out production of a limited edition American-made line to a local denim factory for a brief time in the 2010s and the prices were about $200.

Levi Strauss & Co.‘s reported 2022 net revenues were $6.2 billion.

In the last business quarter, the company reported that 30% of its sales were direct to consumers through its stores, and 7% via e commerce. The Americas remain Levi Strauss’ largest market, followed by Europe and Asia.

Levi’s also owns the brands Dockers, Denizen and Beyond Yoga.

Sources: Levi Strauss & Co.; The Smithsonian Institution; Blue Owl Workshop; levisguide.com, Society for Human Resource Management

Photos: The Associated Press; The Register, Levi Strauss; Wikimedia Commons

WASHINGTON — Debt limit talks came to an abrupt standstill Friday after Republican House Speaker Kevin McCarthy said it’s time to “pause” negotiations, and a White House official acknowledged there are “real differences” that are making talks difficult.

McCarthy said resolution to the standoff is “easy,” if only President Joe Biden would agree to some spending cuts Republicans are demanding. It is unclear when negotiations would resume.

“We’ve got to get movement by the White House and we don’t have any movement yet,” McCarthy, R-Calif., told reporters at the Capitol. “So, yeah, we’ve got to pause.”

A White House official who was granted anonymity Friday to discuss the private conversations said there are “real differences” between the parties on the budget issues and further “talks will be difficult.”

The official added that the president’s team is working hard towards a “reasonable bipartisan solution” that can pass both the House and the Senate.

Biden’s administration is racing to strike a deal with Republicans led by McCarthy as the nation careens toward a potentially catastrophic debt default if the government fails to increase the borrowing limit, now at $31 trillion, to keep paying the nation’s bills.

Wall Street turned lower as the negotiations on raising the nation’s debt limit came to a sudden halt, raising worries that the country could edge closer to risking a highly damaging default on U.S. government debt.

The president who has been in Japan attending the Group of Seven summit had no immediate comment. Biden had already planned to cut short the rest of his trip and he is expected to return to Washington later Sunday.

Negotiators met for a third day behind closed doors at the Capitol with hopes of settling on an agreement this weekend before possible House votes next week. They face a looming deadline as soon as June 1 when the Treasury Department has said it will run out of cash to pay the government’s incurred debt.

Republicans want to extract steep spending cuts that Biden has so far refused to accept. Any deal would need the support of both Republicans and Democrats to find approval in a divided Congress and be passed into law.

“Look, we can’t be spending more money next year,” McCarthy said at the Capitol. “We have to spend less than we spent the year before. It’s pretty easy.”

But McCarthy is facing a hard-right flank of Freedom Caucus and other Republican lawmakers that almost certain to oppose any deal with the White House.

The internal political dynamics confronting the embattled McCarthy leaves the Democrats skeptical of giving away too much to the Republicans that drives away the Democratic support they will need to pass any compromise through the Congress.

Experts have warned that even the threat of a debt default would send shockwaves through the economy.

Markets had been rising this week on hopes of a deal. But that shifted abruptly Friday after negotiators ended late morning an hour after they had begun.

Rep. Garret Graves, R-La., tapped by McCarthy to lead the talks, emerged from an hourlong session at the Capitol and said gaps remained between House Republicans and the Democratic administration.

“It’s time to press pause because it’s just not productive,” Graves told reporters.

He added that the negotiations have become “just unreasonable” and that it was unclear when talks would resume.

The S&P 500 went from a gain of 0.3% to a loss of 0.1% and the Dow Jones Industrial Average went from a gain of 117 points to a loss of about 90 points.

Biden departed early from a dinner with G7 leaders in Hiroshima on Friday night. White House press secretary Karine Jean-Pierre said Biden planned to be briefed on the negotiations by his team Friday evening.

As Republicans demand spending cuts and policy changes, Biden is facing increased pushback from Democrats, particularly progressives, not to give in to demands they argue will be harmful to Americans.

Another Republican negotiator, Rep. Patrick McHenry of North Carolina, said, “There is a “serious gap” between the sides.

“We’re in a tough spot,” said McHenry, the chairman of the House Financial Services Committee, as he left the meeting.

McCarthy faces pressures from his hard-right flank to cut the strongest deal possible for Republicans, and he risks a threat to his leadership as speaker if he fails to deliver.

A day earlier, the conservative House Freedom Caucus said there should be no further discussions until the Senate takes action on the House Republican bill that was approved last month to raise the debt limit into 2024 in exchange for spending caps and policy changes. Biden has said he would veto that Republican measure.

In the Senate, which is controlled by majority Democrats, the Republican leader Mitch McConnell has taken a backseat publicly, and is pushing Biden to strike a deal directly with McCarthy.McConnell blamed Biden for having “waited months before agreeing to negotiate” with the speaker.

“They are the only two who can reach an agreement,” McConnell said in a tweet. “It is past time for the White House to get serious. Time is of the essence.”

Democrats are wary of any deal with Republicans, and particularly refuse the Republican proposal to protect defense and veterans accounts from spending caps, arguing that the cuts will fall too heavily on other domestic programs.

Republicans also want to impose stricter work requirements on government aid recipients. Biden has suggested he might be open to considering it, but Democrats in Congress have said is a nonstarter.

Miller reported from Hiroshima, Japan. Associated Press Business Writer Stan Choe and writers Seung Min Kim, Stephen Groves and Mary Clare Jalonick contributed to this report.

My trusty spreadsheet, filled with state job figures released Friday, May 19, found 8.02 million at work in Los Angeles, Orange, Riverside and San Bernardino counties in April. The job count, not adjusted for seasonal variations, was up 52,100 in a month and up 160,100 in 12 months.

Local hiring averaged 22,620 in April between 2015-19. In March, 14,400 employees were added in the region.

The hiring rebound cut Southern California joblessness. Southern California’s unemployment rate was 4.1% for April compared with 4.6% in the previous month and 4.2% a year earlier. Joblessness averaged 4.2% in pre-pandemic 2018-19.

Industry swings

Look at job changes in 10 key Southern California business sectors, ranked by one-month change …

Leisure/hospitality: 1.06 million – up 11,000 in a month and up 39,700 in a year.

Education/health: 1.46 million – up 10,100 in a month and up 68,200 in a year.

Construction: 409,400 workers – up 8,200 in a month but down 900 in a year.

Professional-business services: 1.02 million – up 6,000 in a month and up 12,100 in a year.

Transport-warehouse-utility: 698,100 workers – up 4,100 in a month and up 13,500 in a year.

Information: 265,100 workers – up 2,200 in a month but down 900 in a year.

Financial: 410,300 workers – up 2,100 in a month and up 3,700 in a year.

Government: 1 million workers – up 1,800 in a month and up 18,700 in a year.

Retailing: 634,400 workers – up 1,600 in a month and up 9,400 in a year.

Manufacturing: 442,300 workers – up 300 in a month but down 2,000 in a year.

Regional differences

Here’s how the job market performed in the region’s key metropolitan areas …

Los Angeles County: 4.64 million workers, after adding 29,800 in a month and growing by 106,200 in a year. Hiring averaged 8,880 for the month between 2015-19. Unemployment? 4.5% vs. 5% a month earlier; 4.5% a year ago; and 4.6% average in 2018-19.

Orange County: 1.71 million workers, after adding 15,200 in a month and growing by 41,800 in a year. Hiring averaged 6,860 for the month in 2015-19. Unemployment? 3% vs. 3.4% a month earlier; 2.7% a year ago; and 2.9% average in 2018-19.

Inland Empire: 1.67 million workers, after adding 7,100 in a month and growing by 12,100 in a year. Hiring averaged 6,880 for the month in 2015-19. Unemployment? 4.1% vs. 4.6% a month earlier; 3.4% a year ago; and 4.2% average in 2018-19.

By the way, similar stats show the rest of California with 10 million workers in April – up 65,900 in a month and up 231,600 in a year.

Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com

Yet costlier travel is not deterring younger Americans who are eager to hit the road (and the skies) this year.

A whopping 87% of 18-to-29-year-olds and 90% of 30-to-44-year-olds intend to travel this summer, according to a March survey by The Vacationer. If the economy is slowing, younger travelers aren’t heeding the memo.

“When I meet with folks, they’re not budgeting,” says Dylan Snowden, a financial coach. “Most will just think about hotels and flight, but not the fact that they need to feed themselves three times a day.”

Ignoring the broader economic trends (like the rising cost of eating out) could mean stormy financial waters ahead for these vacationers.

On top of inflation, savings are down, debt is up and the economy could be headed for a recession. Add the potential for student loan payments restarting this year, and a dire picture begins to emerge for those under 40.

Could this be the year that pandemic-related “revenge travel” turns into “regret travel”?

Ballooning debt

As savings that built up during the pandemic begin to dwindle, vacationers facing high travel costs have two choices: cut costs or turn to debt. And it seems that younger Americans are opting for the latter.

Generation Z accrued 6% more credit card debt between the first and second halves of 2022, according to a January 2023 report from Credit Karma, while millennials racked up 5% more. Baby boomers added only 2% more credit card debt over the same period.

“Since people don’t budget, they underestimate how big their debt will be,” says Snowden. “They don’t leave on those trips expecting to go $7,000 in debt, but then they do.”

And younger Americans are struggling to pay these debts off. The rate of credit card delinquencies has risen significantly for Americans in their 20s and 30s, surpassing pre-pandemic rates, according to a 2023 report from The Federal Reserve Bank of New York. Not so for older Americans, whose delinquency rates have remained relatively flat.

The rise of buy now, pay later services

Another potential factor in costlier travel: the rise in popularity of “buy now, pay later” for travel expenses. These services split payments over installments, easing sticker shock for airfare and hotel stays while creating more debt by another name.

“Somebody doesn’t sign up for Klarna just one time,” says Snowden, citing a popular buy now, pay later service. “They’ll do it for multiple purchases, so that debt will grow.”

Buy now, pay later has proven especially attractive among younger consumers. An August 2022 NerdWallet survey conducted by The Harris Poll found that 50% of millennials and 44% of Gen Z had used one of these services in the last 12 months, compared with 25% of Generation X and merely 14% of baby boomers.

Mounting debt and deferred payments could hit travelers hard, especially as layoffs increase and some economic forecasters predict a recession later in the year. And another $1 trillion shoe could still drop: student loans.

Student loans loom

The average student loan debt for borrowers ages 35-49 is $43,280 and $32,750 for the 25-34 age range, according to 2023 data from the U.S. Department of Education’s Federal Student Aid Office. Yet these loans have not had a major impact on finances because the pandemic-era pause on payments remains in effect.

“It’s been so long since people have had to think about it,” says Snowden. “It’s really hard for folks to realize that it might actually start up again.”

Yet those payments could resume soon — possibly by late summer. This could create a perfect storm of financial pressure, as mounting debt mixes with a weak economy and increased student loan payments.

Save now, vacation later

Is it all doom and gloom for young travelers? Not necessarily. Some may still be working through savings surpluses. And the labor market remains strong, buoying incomes.

Experts suggest young travelers take a hard look at their finances before booking another vacation this year and potentially accruing more debt.

“Save now, vacation later,” implores Snowden. “You’ll enjoy every minute of that vacation and not stress when you come home to a big bill. You deserve to feel good about it before you go, when you’re there and when you come back.”

More From NerdWallet

A: While an unpleasant task, collecting past-due assessments from members is a very important board responsibility. If the association does not require all members to timely pay their fair share, the good neighbors paying each month are going to have to pay more to make up for the neighbors who do not. Without collecting all due assessments, the association cannot pay its bills, which harms all HOA members.

Because of the importance of regular and timely assessment payment, the law gives HOAs some very powerful tools to help communities ensure they can meet the common expenses of homeowners.

First, Civil Code Section 5650(1) provides that if the association pursues assessment delinquencies it can also recover attorney fees, interest and late charges.

Second, Civil Code Section 5675(a) authorizes the HOA to record a lien (essentially an involuntary mortgage) on the property to secure the HOA’s assessment claim. The lien will make it harder to sell or refinance the property without first paying off the assessment claim.

Third, if the lien is still unpaid 30 or more days after it is recorded, the HOA can under Civil Code Section 5700 begin foreclosure proceedings to involuntarily take the property away from the owner.

There are two types of foreclosure. One is nonjudicial foreclosure, in which the HOA (usually through a collection vendor) provides a series of notices and after prescribed waiting periods can have the property sold at a foreclosure sale. The other type of foreclosure is judicial foreclosure, in which the HOA files a lawsuit against the homeowner asking for a judge to award money to the HOA and/or to have the property sold to pay the debt.

Homeowners should not ignore foreclosure notices and should act quickly to protect their homes. Completing a foreclosure is a very serious action, and HOAs should consult legal counsel before sending property to a foreclosure sale.

The obligation to keep members current on assessment collection is a serious matter and should be taken seriously by both the HOA board and HOA homeowners.

Q: I’m a newly elected board member. As I’m looking over homeowner’s delinquency information, I’m concerned that several incumbent board members are delinquent. Is there any Civil Code that a board member should be current in their HOA dues? — D.S., Irvine.

A: The only automatic eligibility requirement to serve on HOA boards in California is that one must be an owner in the HOA.

Civil Code Sections 5103(d)(2) and 5105(c) provide five optional eligibility standards that associations may adopt, and one such standard is that candidates or directors not current in their payment of regular or special assessments may be disqualified from candidacy or serving on the board.

“Delinquent” is defined by Civil Code Section 5650(b) as not paid 15 days after an assessment becomes due. Civil Code Section 5103(d)(3) states that board eligibility requirements must also be applied to the seated directors, which means that if the election rules bar delinquent candidates then directors must also not be delinquent.

Kelly G. Richardson, Esq. is a Fellow of the College of Community Association Lawyers and Partner of Richardson Ober LLP, a California law firm known for community association expertise. Submit column questions to Kelly@roattorneys.com.

Last week’s column ended with a question about whether the California FAIR plan insurance fund has enough money to cover catastrophic events, and how long it would take to replenish the fund and make good on homeowner claims.

In the column, I suggested condo buyers and refinance applicants at associations blacklisted by Fannie Mae could get up to $20 million of gap insurance from the FAIR Plan for common area insurance shortages. In some situations, it just might be enough to cover any insurance gap, especially after Fannie Mae upped the ante, requiring 100% replacement coverage following the Champlain Towers collapse in Florida.

First, a correction to last week’s column. FAIR Plan actually has $1.4 billion in “aggregate loss retention,” a measure of coverage for excess losses, for instance, from a bad wildfire. I was previously told the plan had $400 million, according to Michael Soller, the DOI’s deputy commissioner of press relations.

Now, a billion dollars more is certainly far better than $400 million, but how far can that be stretched when (and not if) we have more wildfires like the Camp, Dixie, Glass, or Cedar calamities? For example, the total damage and estimated losses from the Camp fire were more than $400 billion.

In the meantime, insurance companies are bailing on tens of thousands of homeowners who have property in high fire-risk areas.

So, what is the FAIR Plan’s budget? The plan, considered a last resort by many because of its high cost and limited coverage, is seeking a 48.8% increase in its dwelling-fire rate, according to an email from Victoria Roach, president of the California FAIR Plan Association. The plan doesn’t have a budget for insurance coverage since wildfire exposure is different each year and in each fire, she told me.

Buyer beware: FAIR Plan, which insures condos, commercial properties and single-family homes, comes with some big caveats.

“FAIR Plan’s stripped-down homeowners’ policy is triple to quadruple the cost of a regular policy,” said Wendy Holt of Rancho Cucamonga-based Holt Insurance.

She said because of those high costs, only 10% to 15% of her clients carry the FAIR Plan. And owners/homebuyers must purchase supplemental companion policies because the FAIR Plan offers limited coverage, said Holt, who has been my insurance broker for more than 30 years. For example, it doesn’t cover theft, flood, earthquake, hail, vandalism or personal liability.

Now, think about this in terms of condominium associations that might benefit from adding the FAIR Plan. What is worse, paying for the FAIR Plan and the companion plan to get cheaper Fannie financing? Or finding a higher cost, non-warrantable condo mortgage without having 100% replacement coverage in the event of a catastrophic event like Champlain Towers experienced? Neither are affordable solutions.

For some context, let’s circle back on what a lack of insurance and Fannie financing looks like. In Laguna Woods, there were 75 active home listings on April 28, 2022, according to Steven Thomas, chief economist of Reports on Housing. There were 88 active listings as of April 27, 2023. The village recorded 18 financed condo sales in April 2022 compared with just four such sales this April, according to Lawyers Title. So that means listings went up 17% year over year but financed sales dropped 82% in the same period. Remember: Fannie pulled the plug on the Laguna Woods 6,102 condos on Jan. 31.

The FAIR Plan is a nonprofit and does not publicly disclose its financial information, but California law requires any rate changes to first be approved by the DOI.

The Department of Insurance and Commissioner Ricardo Lara have not responded to multiple interview requests by this columnist regarding the FAIR Plan’s insurance coverage.

Well beyond the Fannie condo blacklist, an insurance crisis is brewing for those who can’t find fire or gap insurance.

Freddie Mac rate news

The 30-year fixed rate averaged 6.39%, 4 basis points higher than last week. The 15-year fixed rate averaged 5.75%, unchanged from last week.

The Mortgage Bankers Association reported a 5.7% mortgage application decrease from last week.

Bottom line: Assuming a borrower gets the average 30-year fixed rate on a conforming $726,200 loan, last year’s payment was $527 less than this week’s payment of $4,538.

What I see: Locally, well-qualified borrowers can get the following fixed-rate mortgages with 1 point: A 30-year FHA at 5.75%, a 15-year conventional at 5.625%, a 30-year conventional at 6.125%, a 15-year conventional high balance at 6.125% ($726,201 to $1,089,300), a 30-year high balance conventional at 6.625% and a jumbo 30-year fixed at 6.375%.

Note: The 30-year FHA conforming loan is limited to loans of $644,000 in the Inland Empire and $726,200 in LA and Orange counties.

Eye catcher loan program of the week: A 30-year VA fixed rate at 5% with 2 points cost.

Jeff Lazerson is a mortgage broker. He can be reached at 949-334-2424 or jlazerson@mortgagegrader.com.

Car thefts last summer followed a TikTok challenge that outlined a way to bypass security features to make it easier to steal the vehicles.

The agreement could be valued around $200 million, but it depends on how many car owners participate in the settlement, which will offer cash for some customers who have theft-related claims. U.S. District Judge James Selna will consider preliminary approval of the settlement in July.

Part of the settlement will include software upgrades on vehicles as well as offers of wheel locks for vehicles incompatible with the computer update.

The settlement covers about 9 million Hyundai and Kia vehicles.

“We appreciate the opportunity to provide additional support for our owners who have been impacted by increasing and persistent criminal activity targeting our vehicles,” Jason Erb, chief legal officer of Hyundai Motor North America, said in a statement.

“Customer security remains a top priority, and we’re committed to continuing software upgrade installations and steering wheel lock distribution to help prevent thefts and offering insurance options through AAA for those who have had difficulty securing and sustaining coverage,” he said.

John Yoon, chief legal officer for Kia, said the company is “very pleased” by the settlement.

“This agreement is the latest step in a series of important actions, in addition to providing a free security software upgrade and distributing over 65,000 steering wheel locks, that Kia has taken to help customers whose vehicles have been targeted by criminals using methods of theft popularized on social media,” Yoon said. “Kia remains committed to assisting our customers and upholding vehicle security.”

When a car owner brings in a vehicle for servicing the software upgrade will be automatically installed. For those with vehicles unable to take the upgrade, owners will receive up to $300 to buy an anti-theft device like a steering-wheel lock.

The cars covered are:

— 2011-2022 Accent;

— 2011-2022 Elantra;

— 2013-2017 Elantra GT;

— 2013-2014 Elantra Coupe;

— 2011-2012 Elantra Touring;

— 2011-2014 Genesis Coupe;

— 2018-2022 Kona;

— 2020-2021 Palisade;

— 2011-2012, 2019-2022 Santa Fe;

— 2013-2018, 2019 Santa Fe; Santa Fe XL;

— 2013-2018 Santa Fe Sport;

— 2011-2019 Sonata;

— 2011-2022 Tucson;

— 2012-2017, 2019-2021 Veloster;

— 2020-2021 Venue;

— 2011-2012 Veracruz;

— 2011-2021 Forte;

— 2021-2022 K5;

— 2011-2020 Optima;

— 2011-2021 Rio;

— 2011-2021 Sedona;

— 2021-2022 Seltos;

— 2010-2022 Soul;

— 2011-2022 Sorento; and

— 2011-2022 Sportage.