AB 2439 (Rubio). Common interest developments: Assessments.

Would make the association board liable for specified costs and a civil penalty of $1,000 if the association fails to comply with collection procedures prior to recording a lien.

Current Status: Pending

FindHOALaw Quick Summary:

Existing law limits the authority of the governing documents to regulate the use of a member’s separate interest.

This bill would add Civil Code Section 4755 to prohibit the governing documents from imposing restrictions on a member’s use of public roads.

Existing law requires that an association provide a member making an assessment payment a receipt, upon request, that indicates the date of payment and the person who received it and to provide a mailing address for overnight payment of assessments in the annual policy statement.

This bill would amend Civil Code Section 5655 to require the association to notify the members by certified mail, return receipt requested, of a change of a person authorized to receive payment of assessments within 60 days of the change.

Existing law provides that assessments, including the costs of collection, late charges, and interest, are a lien on the member’s separate interest when the association records a notice of delinquent assessment and follows a specified process, including providing the owner of record a specified notice, at least 30 days prior to recording a lien upon the separate interest. Existing law requires that an association that fails to comply with these procedures recommence the required notice process, prior to recording a lien, and bear the cost of recommencing the notice process.

This bill would amend Civil Code Section 5690 to make the association board liable to the member for the reconveyance fee and any costs of the member associated with the association’s failure to comply with the collection procedures prior to recording a lien, along with a civil penalty of $1,000.

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View more info on AB 2439
from the California Legislature's website

Related Topics

Related Statutes

Related Case Law

  • Diamond v. Superior Court
    (2013) 217 Cal.App.4th 1172

    [Assessment Collection; Notice Requirements] A HOA must strictly adhere to the statutory lien and foreclosure notice requirements in order to perfect an assessment lien and foreclose on a homeowner’s property.

  • Huntington Continental Townhouse Association, Inc. v. Miner
    (2014) 230 Cal.App.4th 590

    [Assessments & Collection; Partial Payments] An association is required to accept partial payments made by a delinquent homeowner and allocate them in accordance with Civil Code Section 5655, even after the association has recorded an assessment lien.