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The 2008 Legislative Session is well underway, and it appears that it will be another busy year for common interest development legislation. ECHO is monitoring a large number of bills that may be amended to impact CIDs, but the bills below will certainly affect homeowner associations throughout California if they are passed into law.
AB 567 has been referred to the Senate Transportation and Housing Committee, but a hearing date has not been scheduled. The bill would, until January 1, 2014, establish the Common Interest Development Bureau. The Bureau would, among other things, provide board member education and training resources, investigate and impose fines for Davis-Stirling Act violations, and compel associations to disclose those violations. The introduction of enforcement provisions into this bill changed the fundamental nature of this legislation. While ECHO believes that a state level bureau would be a significant aid to California CID homeowners, we do not believe that volunteer board members should be subject to immediate sanctions without proper training. ECHO opposes AB 567 unless it is amended.
 See AB 567
AB 1892 would render void and unenforceable any restriction in the governing documents of an association that effectively prohibits or restricts the installation or use of a solar energy system. This bill strips associations of the power to appropriately regulate additions to the common area, and would be an intrusive step by the Legislature into an area that is effectively regulated by laws that are already in place.
See AB 1892
AB 1921 is the result of a two-year effort by the California Law Revision Commission. The bill would renumber, consolidate, make minor changes to, and remove discrepancies in those sections of California law that govern common interest developments. If passed, the bill would replace the existing Davis-Stirling Act. A number of organizations have objected to the bill, suggesting that the changes to the current law are significant, and could create confusion in the legal community. However, the bill is progressing through the legislature with bipartisan support and is likely to become law. Both the California Law Revision Commission and the bill author have indicated their willingness to amend the bill if necessary. ECHO has not yet taken a position on AB 1921.
See AB 1921
AB 2180 would compel associations to provide written approval or denial of an application to install a solar energy system. The approval or denial must be given within 60 days of the receipt of the application, or the application is deemed approved, unless the delay is the result of a reasonable request for additional information. Associations that violate this provision may face a civil penalty of up to $1000. While a 60 day time limit is not ideal, it is an improvement on the 45 day limit imposed in a previous version of the bill. AB 2180 will almost certainly become law, and ECHO has withdrawn its opposition after the recent amendment.
See AB 2180
AB 2259 would prevent common interest developments from impairing an owner's rental or lease rights, unless that owner consents to the restriction in writing. This bill would directly impair a community's right to make necessary amendments to its own governing documents. ECHO believes that this action is intrusive and sets a dangerous precedent. The problem would be better handled by more stringent disclosure requirements. ECHO opposes AB 2259 unless it is amended.
See AB 2259
AB 2806 would require every member of a board of directors serving at least 12 consecutive months to disclose whether or not they have completed a course dealing with the laws that govern common interest developments. Only courses costing $25 or less would be approved by the Department of Real Estate. Associations may not reimburse directors more than $25 for the course, or more than $100 for travel expenses. ECHO strongly objects to the Legislature's proposal to control certain line items in an association's budget, and to circumvent a board's authority to make expenditures that it deems necessary. ECHO opposes AB 2806.
See AB 2806
AB 2846 would permit homeowners who are involved in a dispute over assessments with their association to request alternative dispute resolution, or to pay under protest and commence an action in small claims court, provided the amount of the dispute does not exceed the court's jurisdiction. While ECHO does not object to payments made under protest, we believe that, under current law, numerous opportunities exist for homeowners to mediate and communicate with the association regarding assessment disputes. This bill places an unnecessary burden on associations that are attempting to collect needed revenues. ECHO opposes AB 2846 unless it is amended.
See AB 2846
SB 127 would change disclosure deadlines for buyers and unit owners. Owners of common interest development units would need to provide disclosure information to their buyers no later than 20 calendar days after the execution of the purchase agreement or the start of escrow, whichever is later. ECHO succeeded in negotiating an amendment to an earlier form of this bill that would have lessened the 10 day period for associations to provide documents. This bill was not passed by the Legislature before the close of the 2007 session, and is currently in its third reading before the Assembly. Because the current form of the bill does not change the document provision deadline for associations, ECHO supports SB 127.
See SB 127
SB 1511 would permit an association to request that the mortgagee or trustee of a piece of property provide the name and address of anyone who purchases that property at a foreclosure sale. The mortgagee or trustee must provide the information within 15 business days of the sale. A recent amendment to this bill greatly reduced its scope, as the original version would have required the entity causing a judicial or non-judicial sale of the property to pay up to 6 months of delinquent assessments. Unfortunately, this language was amended out of the bill in committee. The current version will still aid associations that are attempting to collect delinquent assessments. ECHO supports SB 1511.
See SB 1511
For a brief synopsis of the bills that ECHO is currently monitoring, please look at our Legislation at a Glimpse page. Make sure to check back regularly to stay informed on developments in 2008 CID legislation, and how they may affect your common interest development.
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