Mid-2010 Legislative Update

Published in the ECHO Journal, July 2010

The 2010 legislative session so far has been an interesting one. Although there are fewer bills dealing with common interest developments than normal, there was one of great concern, AB 2502 by Assemblymember Brownley, dealing with modifications to the delinquency and financial thresholds established in the 2005 Ducheny bill, SB 137 dealing with foreclosures. Fortunately, there was strong opposition to the bill and the author decided not to move it.

Other bills of significant interest in this legislative session are discussed below:

AB 1726 (Swanson)

This bill is sponsored by CAI and sets 33 percent as the threshold for a quorum for an election if a quorum, as defined in the governing documents, is not met at the election meeting. The bill has an exception for associations whose governing documents specify lower quorums. ECHO asked for an amendment to clarify that the reduced quorum was for the meeting for that election only. That amendment was taken, which moved our position from “support if amended” to “support.” The bill passed committee and the floor of the Assembly with broad bipartisan support.

Position: Support

Location: Senate Transportation and Housing

AB 1793 (Saldana)

This bill would prohibit governing documents from prohibiting the use of artificial turf or any other synthetic surface that resembles grass. It takes the Lieu bill dealing with low water use plants of last year a step further. The bill was amended the day after it passed out of Assembly Housing and Community Development and passed the floor of the Assembly with broad bipartisan support. The amendment provides that the prohibition would not prohibit an association from applying landscape rules and regulations in the governing documents that would establish design standards and quality standards for the installation of the artificial turf. ECHO believes the bill in unnecessary and that decisions regarding artificial turf are best left to the association.

Position: Oppose

Location: Senate Transportation and Housing

AB 1927 (Knight)

This bill is sponsored by the California Association of Realtors and deals with rental rights. The bill provides that governing documents amended, adopted or recorded on or after January 1, 2011 shall not prohibit the rental or lease of a separate interest unless the provision imposing the prohibition is approved by a 2/3 vote of all owners of separate interests. The bill also provides that if there is a provision in the governing documents that prohibits the rental or leasing of separate interests that a statement describing the prohibition be included in the required disclosures. The bill passed Assembly Housing and Community Development, Assembly Judiciary and the Assembly floor with broad bi-partisan support. CACM and CAI are neutral on the bill. ECHO remains opposed and believes that decisions regarding rental and lease rights are best made by the association, particularly given the downturn in the housing market and limits by lenders and insurers regarding the number of rental or leased units allowed relative to whether or not loans will be made and insured.

Position: Oppose

Location: Senate Transportation and Housing

AB 1975 (Fong)

This bill is intended to address rental properties and requires that every water purveyor that provides water service to a multiunit residential structure for which a construction permit has been issued on or after January 1, 2012 provide individual meters or sub-meters for each unit with exceptions for structures greater than four stories above grade or for structures in which the owner or agent demonstrates that the structure’s plumbing configuration incorporates multiple points of entry in each dwelling unit, thus rendering the installation of submeters infeasible. ECHO has asked for an amendment exempting common interest developments. The bill did not move out of the Assembly Appropriations Committee by the fiscal deadline and is not moving.

Position: Support if Amended

Location: Assembly Appropriations

AB 2016 (Torres)

This bill by the Chair of the Assembly Housing and Community Development Committee clarifies previously chaptered legislation relating to notices of default. The bill provides that a request by an association for notification of a trustee’s deed of sale does not constitute a request for a document that either effects or evidences a transfer or encumbrance of an interest in real property or that releases or terminates any interest, right or encumbrance of an interest in real property. The bill passed the Assembly on the consent calendar.

Position: Support

Location: Senate Judiciary

AB 2120 (Silva)

This bill originally deleted the requirement that a copy of the California Mobilehome Residency Law be provided to all homeowners by February 1 of each year by the management if a significant change was made in that law during the prior year. The bill was amended to change the notification requirement to provide all homeowners with a copy of the law or notify them that they can obtain a copy free of charge and that a change has been made. The bill passed the Assembly Floor with broad bipartisan support.

Position: Neutral

Location: Senate Rules

AB 2762

This is the housing omnibus bill that contain only non-controversial provisions.

Position: Watch

Location: Senate Rules

SB 1221 (Calderon)

This bill makes conforming and clarifying changes regarding a notice of sale. The bill passed out of the Senate on the consent calendar.

Position: Watch

Location: Assembly Banking and Financeousing Ho

SB 1427 (Price)

This bill has been amended to provide that the costs of nuisance abatement measures taken by a governmental entity are the obligation of the legal owner and that fines would be treated as a tax lien against the property in a foreclosure sale. The bill also provides that the cost of nuisance abatement shall not exceed the actual costs of the abatement and that any fines or penalties imposed by a local ordinance, subject to a notice of default, on a property that has not been purchased at a foreclosure sale or acquired through foreclosure under a mortgage or deed of trust are the obligation of the owner of record at the time of the violation and that any lien imposed against that property shall attach to the parcel upon recordation of the lien.

Position: Support

Location: Assembly

SB 1047 (Correa)

This spot bill has been amended to exclude a subdivision, cooperative or condominium for mobile homes and a nonprofit resident-owned mobile home park from the definition of a “resident-owned mobile home park.”

Position: Watch

Location: Assembly


Kerry Mazzoni is the Legislative Advocate for ECHO. She previously served in the State Assembly and as California Superintendent of Education.