All posts by Steve Tinnelly

AB 1569 (Caballero). Disability rights: reasonable accommodations: animals.

If a prospective or current tenant requests a disability-related reasonable accommodation to keep an animal on the property and the disability or disability-related need is not readily apparent, this bill would authorize a person renting, leasing, or otherwise providing real property for compensation to request that a third party provide verification of the disability and disability-related need for the animal.

Current Status: Dead

FindHOALaw Quick Summary:

The Unruh Civil Rights Act generally prohibits discrimination on the basis of various personal characteristics, including disability.  Individuals with disabilities are entitled to full and equal access to all housing accommodations offered for rent, lease, or compensation, and prohibits a person renting, leasing, or otherwise providing real property for compensation from refusing to make reasonable accommodations for an individual with a disability.  This bill would amend Civil Code Section 54.1 to authorize a person renting, leasing, or otherwise providing real property for compensation to request that a third party provide verification of the disability and disability-related need need for an animal, if a prospective or current tenant requests a disability-related reasonable accommodation to keep an animal on the property and the disability is not readily apparent or the disability-related need for an animal is not apparent.

The bill would require that the third party be located in the United States and have specific knowledge of the requester’s medical condition based on an individualized examination, which shall include an in-person meeting.  The third party may not operate primarily as a business to provide certifications for persons requesting verification of animals requested as reasonable accommodations.

The bill would specify that certain types of documentation would not be in and of themselves sufficient third-party verification, including an identification card or certificate for a registered service animal, an emotional support animal prescription letter, any certificate, letter of prescription, or doctor’s note obtained from an online source, or documentation that does not indicate that the provider of the documentation ever met with the requester or performed an individualized examination. The person providing real property for compensation would be authorized to request additional third-party verification from a reliable source if the requester only presents any of those types of documentation.

The bill would exclude guide dogs, signal dogs, service dogs, and service animals, as defined in Health and Safety Code Section 113903.

**UPDATE: On March 23, 2017, the proposed text of AB 1569 was amended to allow a person providing real property for compensation to request that a prospective or current tenant provide both reliable verification of the disability and reliable third-party verification of the disability-related need for the animal:

(C) (i) A person renting, leasing, or otherwise providing real property for compensation may, if a prospective or current tenant requests a disability-related reasonable accommodation to keep an animal on the real property and the disability is not readily apparent or the disability-related need for an animal is not apparent, request that a third party provide verification of the disability and disability-related need for the animal from the prospective or current tenant. prospective or current tenant provide both (I) reliable third-party verification or other reliable verification of the disability and (II) reliable third-party verification of the disability-related need for the animal. The third party verifying the disability and the disability-related need for the animal shall be located in the United States and have specific knowledge of the prospective or current tenant’s medical condition based on an individualized examination. That examination shall include an in-person meeting with the prospective or current tenant. The third party shall not be operating primarily as a business to provide certifications for persons requesting verification of animals requested as reasonable accommodations. The third-party verification shall include the third party’s name, address, and telephone number or email address.
(ii) The following types of documentation shall not be in and of themselves sufficient or reliable third-party verification that a prospective or current tenant requires an animal as a reasonable accommodation, and the person renting, leasing, or otherwise providing real property for compensation may request additional third-party verification from a reliable source if the prospective or current tenant only presents any of those types of documentation:
(I) An identification card or certificate for a registered service animal. card, registration, or certificate for an animal presented without additional third-party verification from a reliable source.

(II)An emotional support animal prescription letter.

(II) Any certificate, registration, emotional support animal letter, letter of prescription, doctor’s or any other kind of note or letter obtained from an online source.

To read the current text of AB 1569, click here to the view the bill’s page on the California Legislature’s website. FindHOALaw will continue to track AB 1569 as it progresses through the Legislature. 

View more info on AB 1569
from the California Legislature's website

Related Links

Responding to Requests for Accommodation - Published on HOA Lawyer Blog (February 7, 2013) HOA Accommodations for Disabled Residents - Published on HOA Lawyer Blog (May 1, 2012)

AB 1139 (Reyes). Real property: transfer fees: notices.

Would require a notice describing potential prohibitions on federal financing (e.g. FHA loans) for properties encumbered by deed-based transfer fees.

Current Status: Chaptered

FindHOALaw Quick Summary:

Existing law requires the receiver of a deed-based transfer fee (e.g. association recreation fees), on and after January 1, 2009, to record specified information in the chain of title.  Existing law also specifies that when a transfer fee is imposed upon real property on or after January 1, 2008, the person or entity imposing the transfer fee, as a condition of payment of the fee, must record a separate document meeting specified requirements. Among other things, that document must contain the title “Payment of Transfer Fee Required” in at least 14-point boldface type and include names of all current owners of the real property subject to the fee, and the legal description and assessor’s parcel number for the affected property, and the fee amount.

This bill would require that document, for private transfer fees created on or after February 8, 2011, to contain a notice in at least 14-point boldface type disclosing certain information, including that federal housing agencies (e.g. FHA) are prohibited from dealing in mortgages on properties encumbered by deed-based transfer fees that do not provide a direct benefit to the real property encumbered, and that if a person purchases such a property, that person may have difficulty obtaining financing.

**UPDATE: AB 1139 was signed by the Governor on July 31, 2017. Its changes to the law will become operative on January 1, 2018. 

View more info on AB 1139
from the California Legislature's website

AB 1079 (Cunningham). Common interest developments: association: annual policy statement.

Would change the time requirements for distribution of the annual policy statement to be within 31 to 91 days before the fiscal year end.

Current Status: Dead

FindHOALaw Quick Summary:

Existing law requires the association to distribute an annual policy statement, containing specified information, to the members within 30 to 90 days before the fiscal year end.  This bill would amend Civil Code Section 5310 to change the time requirements for distribution to be within 31 to 91 days before the fiscal year end.

To read the current text of AB 1079, click here to the view the bill’s page on the California Legislature’s website. FindHOALaw will continue to track AB 10179 as it progresses through the Legislature. 

View more info on AB 1079
from the California Legislature's website

Related Links

Are You Prepared for the New Annual Disclosures? - Published on HOA Lawyer Blog (September 19, 2014)  

AB 786 (Kiley). Statements of information: common interest development associations: limited liability companies.

Would authorize that the bi-annual statement of information to be submitted online.

Current Status: Dead

FindHOALaw Quick Summary:

To assist with the identification of common interest developments, each association, whether incorporated or unincorporated, shall submit to the Secretary of State certain information concerning the association.  This bill would amend Civil Code Section 5405 to allow the statement of information to be submitted online.

To read the current text of AB 786, click here to the view the bill’s page on the California Legislature’s website. FindHOALaw will continue to track AB 786 as it progresses through the Legislature. 

View more info on AB 786
from the California Legislature's website

Related Links

   

AB 690 (Quirk-Silva). Common interest developments: managers: conflicts of interest.

Would require specified disclosures regarding any conflicts of interest, referral fees or financial benefits received by a manager or management firm.

Current Status: Chaptered

FindHOALaw Quick Summary:

Existing law requires that a common interest development manager or management firm annually provide specified disclosures to the board of directors, including the manager’s name and address, whether the manager is certified, and whether the manager holds an active real estate license.  This bill would amend Business and Professions Code Section 11504 to require a prospective manager or management firm to disclose to the board of directors whether the manager receives a referral fee or other monetary benefit from a third-party provider for distributing documents pursuant to Civil Code Section 5300.

This bill would also amend Civil Code Section 5300 to require that the Annual Budget Report contain the completed Document Disclosure Form (Civ. Code § 4528), including the costs associated with providing each document listed on the form.  The bill would amend Civil Code Section 4530 to modify the Document Disclosure Form to inform the seller that he or she is not required to purchase all of the documents listed on the form and may purchase some or all of the documents, as desired.

Existing law requires a prospective managing agent to provide a written statement disclosing certain information to the board of directors no more than 90 days before entering into a management agreement. This bill would amend Civil Code Section 5375 to require that the managing agent disclose whether or not the manager or management firm receives a referral fee or monetary benefit from a third-party document provider.

This bill would add Civil Code Section 5375.5 to provide that a manager shall disclose, in writing, any potential conflict of interest when presenting a bid for service.  “Conflict of interest” is defined as a referral fee or other financial benefit that could be derived from a business or company providing products or services to the association or any ownership interests or profit-sharing arrangements with service providers recommended to, or used by, the association.

Finally, this bill would add Civil Code Section 5376 to require the manager, management company, or its third-party agent to facilitate the delivery of escrow documents and disclosures in accordance with Civil Code Section 4530, if the managing agent is contractually responsible for delivering those documents.

**UPDATE: AB 690 was signed by the Governor on July 25, 2017. Its changes to the law will become operative on January 1, 2018. 

View more info on AB 690
from the California Legislature's website

Related Links

SB 407 (Wieckowski). Common interest developments: noncommercial solicitation.

Would prohibit an association from enacting a rule prohibiting a member from contacting another owner or resident for campaign purposes in a public or association election.

Current Status: Chaptered

FindHOALaw Quick Summary:

Existing law prohibits an association from denying a resident physical access to the common area.  This bill would add Civil Code Section 4515 to prohibit an association from enacting a rule prohibiting members from exercising their rights to peacefully assemble and freely communicate with one another for campaign purposes relating to a candidate for public or association office, or on any issue that is the subject of a public or association election, or pending legislation or association rulemaking.  This bill would not apply to commercial solicitation, or to any member who wants to prevent any solicitation on his or her separate interest.

**UPDATE: SB 407 was signed by the Governor on September 11, 2017. Its changes to the law will become operative on January 1, 2018. 

View more info on SB 407
from the California Legislature's website

Related Links

Equal Access to HOA Media Outlets During Election Campaigns - Published on HOA Lawyer Blog (July 29, 2013) SB 407 Signed!  Legislation Broadens Assembly and Speech Rights within HOAs-Published on HOA Lawyer Blog (September 13, 2017)  

SB 451 (Stone). Common interest developments.

Would prohibit an association from being liable to any person because the governing documents of the association do not contain a provision that would authorize the association to stop harassment of a member by another member.

Current Status: Dead

FindHOALaw Quick Summary:

 

In 2016, the U.S. Department of Housing and Urban Development (“HUD”) added new regulations to the Fair Housing Act, including the term “Hostile Environment Harassment.”  It occurs when “unwelcome conduct due to race, color, national origin, religion, sex, disability or familial status, is sufficiently severe or pervasive as to create an environment that unreasonably interferes with the availability, sale, rental, use, or enjoyment of a dwelling, the provision or enjoyment of facilities or services in connection therewith, or the availability or terms of residential real estate-related transactions.”  The new regulations impose direct liability on HOA directors and officers for their own actions as well as for “failing to take prompt action to correct and end a discriminatory housing practice by a third-party, where the person knew or should have known of the discriminatory conduct and had the power to correct it.  The power to take prompt action to correct a discriminatory housing practice by a third-party depends upon the extent of control or any other legal responsibility the person may have with respect to the conduct of such a third-party.”  In some situations, third-parties may include residents of the association.  This bill would add Civil Code Section 5815 to prohibit an association from being liable to any person because the governing documents do not contain a provision authorizing the association to stop harassment of one member by another member.

To read the current text of SB 451, click here to the view the bill’s page on the California Legislature’s website. FindHOALaw will continue to track SB 451 as it progresses through the Legislature. 

View more info on SB 451
from the California Legislature's website

AB 534 (Gallagher). Common interest developments: mechanics liens.

Would prohibit a mechanics lien from being filed against an other owner in the common interest development unless consent was provided or a request was made, except in the case of emergency repairs. Would deem the association to be an agent of the owners of separate interests in the common interest development with respect to work on a common area.

Current Status: Chaptered

FindHOALaw Quick Summary:

The California Constitution establishes a lien upon a property for the value of labor and materials for work completed on that property.  In a condominium project, the Davis-Stirling Act and the Commercial and Industrial Common Interest Development Act prohibit a mechanics lien for work completed at the request of an owner, from being filed against any other property of any other owner unless that owner expressly consented to or requested the work to be completed, except in the case of emergency repairs.  An owner may remove his or her condominium from a lien against two or more units by paying to the lienholder the prorated share that is attributable to that owner’s  unit, or recording a lien release bond in an amount equal to 125% of the sum secured by the lien that is attributable to that owner’s unit. This bill would amend Civil Code Sections 4615 and 6658 to apply to all common interest developments and their separate interests.

Work performed on the common area, if authorized by the association, would be deemed to have been performed with the express consent of the owners of the separate interests.  This bill would add Civil Code Sections 4620 and 6660 to require the association give individual notice to the membership of a claim of lien within 60 days of service.

Finally, this bill would add Civil Code Section 8119 to provide that the association is deemed to be an agent of the owners of the separate interests for work performed on the common area for purposes of delivery or service of a notice of claim.

**UPDATE: AB 534 was signed by the Governor on July 10, 2017. Its changes to the law will become operative on January 1, 2018. 

View more info on AB 534
from the California Legislature's website

Related Links

AB 534 Signed: Associations to Provide Notice to Members of Lien Claims - Published on HOA Lawyer Blog (July 10, 2017)  

AB 731 (Chen). Personal income taxes: deductions: homeowners’ association assessments.

Would allow a personal income tax deduction of up to $5,000 per year for regular assessments.

Current Status: Dead

FindHOALaw Quick Summary:

The Personal Income Tax Law allows various deductions in computing taxable income. This bill would amend Sections 17072 and 17208 of the Tax Code to allow a deduction, not to exceed $5,000, for qualified homeowners’ association assessments for taxable years beginning on or after January 1, 2017.  Qualified assessments must be regularly occurring, mandatory, and directly benefit the taxpayer’s principal residence.  Qualified assessments do not include special assessments.

This bill would take effect immediately as a tax levy.

**UPDATE: On March 27, 2017, the proposed text of AB 731 was amended to reduce the tax deduction from $5,000 to $3,000, add a qualification for taxpayers whose gross income does not exceed $150,000, and add a sunset clause of December 1, 2023:

17208.

(a) For taxable years beginning on or after January 1, 2017, and before January 1, 2023, a deduction shall be allowed for an amount paid or incurred by the qualified taxpayer during the taxable year, not to exceed five thousand dollars ($5,000), three thousand dollars ($3,000), for qualified homeowners’ association assessments.

(c) For purposes of this section, “qualified taxpayer” means a taxpayer whose gross income for the taxable year does not exceed one hundred fifty thousand dollars ($150,000).

(d) This section shall remain in effect only until December 1, 2023, and as of that date is repealed.
**UPDATE: On May 1, 2017, the proposed text of AB 731 was amended to reduce the tax deduction from $3,000 to $1,500 and further defines a “qualified taxpayer”:

(a) For taxable years beginning on or after January 1, 2017, and before January 1, 2023, 2022, a deduction shall be allowed for an amount paid or incurred by the qualified taxpayer during the taxable year, not to exceed three thousand dollars ($3,000), one thousand five hundred dollars ($1,500), for qualified homeowners’ association assessments.

(c) For purposes of this section, “qualified taxpayer” means a taxpayer whose gross income for the taxable year does not exceed one the following amounts:
(1) One hundred fifty thousand dollars ($150,000). ($150,000) for qualified taxpayers filing a joint, head of household, or surviving spouse as defined in Section 17046, return.
(2) One hundred thousand dollars ($100,000) for a qualified taxpayer filing a return other than as described in paragraph (1).

 

To read the current text of AB 731, click here to the view the bill’s page on the California Legislature’s website. FindHOALaw will continue to track AB 731 as it progresses through the Legislature. 

View more info on AB 731
from the California Legislature's website

Related Links

Could Assessments Become Tax Deductible? - Published on HOA Lawyer Blog (May 5, 2016)  

AB 1412 (Choi). Common interest developments: volunteer officers: liability.

Would extend the limitation on the personal liability of a volunteer officer or director in a mixed use development in which that director does not own more than two residential separate interests.

Current Status: Chaptered

FindHOALaw Quick Summary:

Existing law limits the personal liability of a volunteer officer or director of an association that is exclusively residential for tortious acts or omissions, provided that the act or omission be made in good faith and within the scope of the authority of the board.

This bill would amend Civil Code Section 5800 to extend liability protection to volunteer officers and directors of mixed use developments, provided that the volunteer officer or director is a tenant of a residential separate interest or does not own more than two residential units, and whose ownership consists exclusively of residential separate interests.

It would also amend Civil Code Section 4041 to authorize the association to use the last address provided in writing by the owner, when an owner fails to annually provide his or her address to the association to which notices from the association are to be delivered.

**UPDATE: AB 1412 was signed by the Governor on September 25, 2017. Its changes to the law will become operative on January 1, 2018. 

View more info on AB 1412
from the California Legislature's website

Related Links

Tendering Lawsuits Brought Against the HOA - Published on HOA Lawyer Blog (November 14, 2013) Business Judgment Rule Does Not Protect the Willfully Ignorant - Published on HOA Lawyer Blog (August 17, 2016) AB 1412 Signed: Clarification of Two (2) Existing Code Sections (Member Notification and Director/Officer Liability) - Published on HOA Lawyer Blog (September 27, 2017)