All posts by Steve Tinnelly

AB 2873 (Low). Common interest developments.

Most likely a spot bill, this bill would make nonsubstantive changes related to regular and special assessments. On March 28th, this bill was gutted and amended to no longer apply to common interest developments.

Current Status: Dead

FindHOALaw Quick Summary:

Existing law requires a common interest development to levy regular and special assessments to perform its obligations under the governing documents and the act. However, the association is prohibited from imposing or collecting an assessment or fee that exceeds the costs for which it is levied.

Most likely a spot bill, this bill would make nonsubstantive changes Civil Code Section 5600.

**UPDATE: On March 22, 2018, the proposed text of AB 2873 was gutted and amended to no longer apply to common interest developments.

AB 2873, as amended, Low. Common interest developments. Personal Vehicle Sharing Act.

Existing law generally governs the transactions between a rental car company, also referred to as a rental company, and its customers. Existing law defines the term “rental company” for those purposes to mean a person or entity in the business of renting passenger vehicles to the public.

Existing law prohibits a private passenger motor vehicle, as defined, from being classified for insurance purposes as a commercial, for-hire, or permissive use vehicle, or livery solely on the basis of it being used for personal vehicle sharing, as defined, if certain conditions are fulfilled.

This bill would provide that the term “rental company” as used in the provisions governing transactions between a rental car company and its customers does not include a personal vehicle sharing program or a private passenger motor vehicle that is engaged in personal vehicle sharing, as those terms are defined in the provision governing insurance described above.

This bill would enact the Personal Vehicle Sharing Act, and would state that it is the intent of the Legislature in enacting that act to establish baseline consumer protection and transparency with regard to personal vehicle sharing transactions.

The bill would include findings that the changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

Existing law, the Davis-Stirling Common Interest Development Act, defines and regulates common interest developments. Existing law requires, with specified exceptions, the association of a common interest development to levy regular and special assessments to perform its obligations under the governing documents and the act. However, the association is prohibited from imposing or collecting an assessment or fee that exceeds the costs for which it is levied.

This bill would make nonsubstantive changes to these provisions.

To read the current text of AB 2873, click here to the view the bill’s page on the California Legislature’s website. FindHOALaw will continue to track AB 2873 as it progresses through the Legislature.

View more info on AB 2873
from the California Legislature's website

AB 2618 (Bonta) Hiring of real property: Department of Real Estate: landlords and property managers: training.

Would require the DRE to administer a certification program for property managers on fair practices and tenant rights. A person who acts as a property manager without first having obtained certification would be subject to a civil penalty of up to $1,000.

Current Status: Dead

FindHOALaw Quick Summary:

Existing law prohibits the owner of any housing accommodation, or any person subject to the Unruh Civil Rights Act as the act applies to housing accommodations, from discriminating against any person because of the race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, or genetic information of that person or engaging in harassment of tenants, among others, in connection with those housing accommodations. Existing law authorizes a person claiming to be aggrieved by an alleged unlawful practice to file a complaint with the Department of Fair Employment and Housing.

This bill would add Civil Code Section 1940.25 to require the Department of Real Estate to administer a certification program for landlords and property managers, as defined, to provide education on fair practices and tenant rights. The bill would make this certification effective for a period of 2 years and would make a person who acts as a landlord or property manager without first having obtained certification from the department subject to a specified civil penalty of up to $1,000.00.

**UPDATE: On April 19, 2018, the proposed text of AB 2618 was amended to change oversight from the Department of Real Estate to the Department of Consumer Affairs, to clarify the definition of a property manager as it relates to the landlord – tenant relationship, and reduce the civil penalty from $1,000 to $500.

(1) “Department” means the Department of Real Estate Consumer Affairs in the Business, Consumer Services, and Housing Agency.

(3) “Property manager” means any person, regardless of title or job description, who, for compensation or in expectation of compensation, regardless of the form or time of payment, is engaged in residential property management of one or more dwelling units, excluding units used for transient occupancy limited to 30 days or less in duration.

(h) Except as provided in subdivision (i), a person who acts as a landlord or property manager, as defined in subdivision (a), without first having obtained certification from the department pursuant to this section may be subject to a civil penalty of up to one thousand dollars ($1,000). five hundred dollars ($500).The department shall be responsible for enforcing this section and the penalties shall be deposited into the general fund. General Fund.

To read the current text of AB 2618, click here to the view the bill’s page on the California Legislature’s website. FindHOALaw will continue to track AB 2618 as it progresses through the Legislature.

View more info on AB 2618
from the California Legislature's website

SB 1265 (Wieckowski) Common interest developments: elections.

Would require changes to the election rules regarding director qualifications, candidate nominations, and meeting room accessibility. It would also prohibit the suspension of voting privileges and would require the election rules be distributed with the ballots.

Current Status: Dead

FindHOALaw Quick Summary:

Existing law requires a homeowners association to adopt rules that specify the qualifications for candidates for the board of directors, qualifications for voting, the voting power of each membership, the authenticity, validity, and effect of proxies, and the voting period for elections, including the times at which polls will open and close, consistent with the governing documents. The act requires the sealed ballots to be held at all times in the custody of the inspector or inspectors of elections or at a designated location until after the tabulation of the vote.

This bill would amend Civil Code Sections 5105 and 5125 to delete the requirement that the elections rules specify the qualifications for candidates for the board and the qualifications for voting. The bill would prohibit a rule that would disallow a member from being nominated for any reason other than not being a member at the time of the nomination. The bill would require the rules to ensure that the meeting at which ballots are counted is accessible to seniors and persons with disabilities. The bill would also require the rules to mandate the elections notice include provisions regarding the return and counting of ballots, nominations, and list of candidates’ names that will appear on the ballot. The bill would require the rules to mandate that the elections rules be mailed with the ballots at least 30 days prior to the election. The bill would require the rules to prohibit the denial of a ballot to a member for any reason other than not being a member, and to a person with power of attorney for an owner. This bill would require the voter envelopes and nominee registration list, in addition to the ballots, to be in the custody of the inspector of elections or at a designated location until after vote tabulation.

**UPDATE: On April 2, 2018, the proposed text of AB 1265 was amended to clarify that CIDs function as quasi-governments, require the association adopt election rules at least 90 days prior to any election; require the election notice to provide the list of all voters and voting power; require any errors or omissions to the lists of candidates or voters to be corrected within two business days; require that the signed voter envelopes, voter list, and candidate registration list be considered association records subject to inspection and copying; delete the exception for a third party inspector of election that is employed or under contract to the association if allowed for in the election rules; allow a prevailing owner in a civil action in small claims court to be awarded court costs and reasonable attorney’s fees; prohibit an association from filing a civil action regarding a dispute in which a member has requested dispute resolution unless the association has complied with Civil Code Section 5910, and remove the exemption for assessment disputes in the dispute resolution process.

4801. The Legislature hereby finds and declares both of the following:
(a) Common interest developments function as quasi-governmental entities, paralleling almost every way many ways the powers, duties, and responsibilities of a local government.
(b) As a result, it is the intent of the Legislature for this chapter to ensure that democratic principles and practices are in place with respect to the governance of common interest developments.

5105. (a) An association shall adopt rules, at least 90 days before any election, in accordance with the procedures prescribed by Article 5 (commencing with Section 4340) of Chapter 3, that do all of the following:…

(8) Require notice to be provided of all of the following:…

(E) The list of all voters by either name or parcel number, and voting power.

(9) Require any errors or omissions to the list of candidates’ names or list of voters to be immediately reported to the inspector or inspectors and require necessary corrections to be made within two business days.

5110. (a) The association shall select an independent third party or parties as an inspector of elections. The number of inspectors of elections shall be one or three.

(b) For the purposes of this section, an independent third party includes, but is not limited to, a volunteer poll worker with the county registrar of voters, a licensee of the California Board of Accountancy, or a notary public. An independent third party may be a member, but may not be a director or a candidate for director or be related to a director or to a candidate for director. An independent third party may not be a person, business entity, or subdivision of a business entity who is currently employed or under contract to the association for any compensable services unless expressly authorized by rules of the association adopted pursuant to paragraph (5) of subdivision (a) of Section 5105. services. services other than serving as an inspector of elections.

5125. (a) The sealed ballots, signed voter envelopes, voter list, and nominee candidate registration list shall at all times be in the custody of the inspector or inspectors of elections or at a location designated by the inspector or inspectors until after the tabulation of the vote, and until the time allowed by Section 5145 for challenging the election has expired, at which time custody shall be transferred to the association. If there is a recount or other challenge to the election process, the inspector or inspectors of elections shall, upon written request, make the ballots available for inspection and review by an association member or the member’s authorized representative. Any recount shall be conducted in a manner that preserves the confidentiality of the vote.

(b) Notwithstanding Section 5200, ballots, signed voter envelopes, voter list, and candidate registration list shall be association records subject to inspection and copying by a member.

5145. (a) A member of an association may bring a civil action for declaratory or equitable relief for a violation of this article by the association, including, but not limited to, injunctive relief, restitution, or a combination thereof, within one year of the date the cause of action accrues. that the inspector or inspectors of elections notifies the board and membership of the election results or the cause of action accrues, whichever is later. Upon a finding that the election procedures of this article, or the adoption of and the adherence to rules provided by Article 5 (commencing with Section 4340) of Chapter 3, were not followed, a court mayshall void any the results of the election. election, unless the association establishes, clear and convincing a preponderance of the evidence, that the failure of the association to follow this article or the election operating rules was unintentional and did not affect the results of the election. The findings of the court shall be stated in writing as part of the record.

(b) A member who prevails in a civil action to enforce the member’s rights pursuant to this article shall be entitled to reasonable attorney’s fees and court costs, and the court may impose a civil penalty of up to five hundred dollars ($500) for each violation, except that each identical violation shall be subject to only one penalty if the violation affects each member of the association equally. A prevailing association shall not recover any costs, unless the court finds the action to be frivolous, unreasonable, or without foundation. If a member prevails in a civil action brought in small claims court, the member shall be awarded court costs and reasonable attorney’s fees incurred for consulting an attorney in connection with this civil action.

(c) A cause of action under Sections 5100 to 5130, inclusive, with respect to access to association resources by a candidate or member advocating a point of view, the receipt of a ballot by a member, or the counting, tabulation, or reporting of, or access to, ballots for inspection and review after tabulation may be brought in small claims court if the amount of the demand does not exceed the jurisdiction of that court. subdivision (a) may be brought in either the Superior Court or, if the amount of the demand does not exceed the jurisdictional amount of the small claims court, in small claims court.

5910.1 An association may not file a civil action regarding a dispute in which the member has requested dispute resolution unless the association has complied with Section 5910. 5910 by engaging in good faith in the internal dispute resolution procedures as set forth therein after a member invokes those procedures.

5930. (a) An association or a member may not file an enforcement action in the superior court unless the parties have endeavored to submit their dispute to alternative dispute resolution pursuant to this article.

(b) This section applies only to an enforcement action that is solely for declaratory, injunctive, or writ relief, or for that relief in conjunction with a claim for monetary damages not in excess of the jurisdictional limits stated in Sections 116.220 and 116.221 of the Code of Civil Procedure.

(d)Except as otherwise provided by law, this section does not apply to an assessment dispute.

**UPDATE: On May 15, 2018, the proposed text of AB 1265 was amended to authorize an association’s bylaws to disqualify members who have been convicted of certain felonies and to allow distribution of the election rules via an Internet Web site.

(B) A copy of the election operating rules. Delivery of the election operating rules may be accomplished by either of the following methods:

(i) Posting the election operating rules to an Internet Web site and including the corresponding Internet Web site address on the ballot together with the phrase, in at least 12-point font: “The rules governing this election may be found here:”

(ii) Individual delivery.

(B) Notwithstanding paragraph (A), an association’s bylaws may disqualify a member from running for an elective office if, within the past 20 years, the member has been convicted of a felony involving accepting or giving, or offering to give, a bribe, the embezzlement of money, the extortion or theft of money, perjury, or conspiracy to commit any of those crimes. For purposes of this paragraph, “conviction of a felony” includes a conviction of a felony in this state and a conviction under the laws of any other state, the United States, or any foreign government or country of a crime that, if committed in this state, would be a felony, and for which the person has not received a pardon from a person or entity authorized to grant the pardon.

**UPDATE: On June 26, 2018, the proposed text of AB 1265 was amended to delete Section 4801.

SECTION 1.Section 4801 is added to the Civil Code, to read:

4801.The Legislature hereby finds and declares both of the following:

(a)Common interest developments function as quasi-governmental entities, paralleling in many ways the powers, duties, and responsibilities of a local government.

(b)As a result, it is the intent of the Legislature for this chapter to ensure that democratic principles and practices are in place with respect to the governance of common interest developments.

**UPDATE: The Governor vetoed SB 1265 on September 30, 2018. A copy of the veto message can be found here.

View more info on SB 1265
from the California Legislature's website

AB 2429 (Caballero). Common interest developments.

Most likely a spot bill, this bill would make nonsubstantive changes related to director liability. On March 15, 2018, the proposed text of AB 2429 was gutted and amended to no longer apply to common interest developments.

Current Status: Dead

FindHOALaw Quick Summary:

Existing law limits the personal liability of a volunteer officer or director of an association that is residential or mixed-use 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.

Most likely a spot bill, this bill would make nonsubstantive changes Civil Code Section 5800.

To read the current text of AB 2429, click here to the view the bill’s page on the California Legislature’s website. FindHOALaw will continue to track AB 2429 as it progresses through the Legislature.

**UPDATE: On March 15, 2018, the proposed text of AB 2429 was gutted and amended to no longer apply to common interest developments.

Common interest developments. Insurance: time-limited demands.

Existing law regulates insurance and the business of insurance in this state. Existing law specifies various acts that are defined as unfair methods of competition and deceptive acts or practices in the business of insurance, including knowingly committing or performing certain acts with such frequency as to indicate a general business practice of unfair claims settlement practices.

This bill would declare that it is the policy of the state that prompt settlements of civil actions and insurance claims are encouraged as beneficial to claimants, policyholders, and insurers. The bill would require a time-limited demand, as defined, to be in writing and to include specified information, including the time period within which the offer remains open, the entire amount of monetary payment requested for a full and final settlement of the claim, and an offer of a full and final unconditional release from all present and future liability arising out of the occurrence giving rise to the claim. The bill would also require the time-limited demand to include specified documentation to support the claim for damages. The bill would authorize an insurer to accept the time-limited demand by providing written acceptance of the material terms within the time period set forth in the demand.

Existing law, the Davis-Stirling Common Interest Development Act, defines and regulates common interest developments. Existing law requires a common interest development to be managed by an association that may be incorporated or unincorporated. Existing law limits the personal liability for tortious acts or omissions of a volunteer officer or director of an association that manages a common development that is residential or mixed use, if certain criteria are met.

This bill would make a nonsubstantive change to that provision.

View more info on AB 2429
from the California Legislature's website

SB 1173 (Vidak). Common interest developments: annual notices.

Would exempt homeowners of vacation ownerships and timeshares from the requirement to annually provide the association with a mailing address.

Current Status: Chaptered

FindHOALaw Quick Summary:

Existing law requires the owner of a separate interest in a common interest development to annually provide the association an address for the purposes of receiving notices. When an owners fails to provide the required notice, the association is to use the last address provided.

This bill would amend Civil Code Section 4041 to deem an association, which includes time-share plan interests that are part of a mixed-use development, to have complied with the notice requirements if, at least once annually, it obtains from the time-share plan association a copy of the list of owners in the time-share plan and enters that data into its books and records. The bill would require the time-share plan association to provide this list to the common interest association at least annually for this purpose.

**UPDATE: SB 1173 was signed by the Governor on July 9, 2018. Its changes to the law will become operative on January 1, 2019.

View more info on SB 1173
from the California Legislature's website

AB 2141 (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 2141, click here to the view the bill’s page on the California Legislature’s website. FindHOALaw will continue to track AB 2141 as it progresses through the Legislature.

View more info on AB 2141
from the California Legislature's website

SB 1016 (Allen). Common interest developments: EV-dedicated TOU meters.

Would provide that any provision of the governing documents that effectively prohibits or restricts the installation or use of an electric vehicle charging station within an owner’s unit, or an EV-dedicated TOU meter, is void and unenforceable.

Current Status: Chaptered

FindHOALaw Quick Summary:

Existing law provides that any provision of the governing documents that effectively prohibits or restricts the installation or use of an electric vehicle (“EV”) charging station in an owner’s designated parking space is void and unenforceable. The association may impose reasonable restrictions on those stations, including approval requirements. If the station is to be placed in the common area or exclusive use common area, the homeowner is responsible for the costs associated with maintaining and repairing the station, as well as costs for damage to the common area and adjacent units as a result of the installation and maintenance of the station. This bill would amend Civil Code Section 4745 to allow a homeowner to install an EV charging station within the owner’s unit or in a designated parking space.

This bill would also add Civil Code Section 4745.1, which would provide that any provision of the governing documents that effectively prohibits or unreasonably restricts the installation or use of an EV-dedicated time of use (“TOU”) meter is void and unenforceable. An association may impose reasonable restrictions, “[h]owever, it is the policy of the state to promote, encourage, and remove obstacles to the effective installation of EV-dedicated TOU meters.” An association that violates this section is liable for actual damages, and is subject to a civil penalty of up to one thousand dollars ($1,000.00). The prevailing plaintiff in an action by a homeowner shall be awarded reasonable attorney’s fees.

**UPDATE: SB 1016 was signed by the Governor on September 14, 2018. Its changes to the law take effect January 1, 2019.

View more info on SB 1016
from the California Legislature's website

AB 1943 (Waldron). Manufactured housing: foundation systems: installation: common interest developments.

Would provide that a modular or mobile homeowner, who owns a separate interest within a common interest development, is deemed to have complied with building permit requirements, to install the home on a foundation system.

Current Status: Chaptered

FindHOALaw Quick Summary:

Existing law requires an owner or licensed contractor to obtain a building permit to install a manufactured home, mobile home, or commercial modular on a foundation system by submitting, among other things, written evidence that the owner owns, holds title to, or is purchasing real property where the mobile home is to be installed. A willful violation of those provisions is a crime. This bill would amend Health and Safety Code Section 18551 to provide that written evidence of an owner’s resident ownership in a mobilehome park that is converted or proposed to be converted to a resident-owned subdivision, stock cooperative, or condominium project would comply with this requirement.

This bill would take effect immediately as an urgency statute.

“Due to a gap in existing law, 75 homeowners who lost their homes in the recent Lilac Fire and other natural disasters are unable to secure affordable financing to rebuild their homes. In order to ensure prompt recovery as a result of the widespread damage caused by the Lilac Fire, as well as other recent disasters, it is necessary for this act to take effect immediately.”

**UPDATE: AB 1943 was signed by the Governor on September 5, 2018. Its changes to the law take effect immediately.

View more info on AB 1943
from the California Legislature's website

AB 1917 (Steinorth). Common interest developments.

Would lengthen the time in which an association may extend the termination date of the CC&Rs from 20 years to 25 years.

Current Status: Dead

FindHOALaw Quick Summary:

Existing law provides that CC&Rs which specify a termination date, but do not contain a provision to extend the termination date, may be extended by a vote of the members, except that no single extension may exceed the initial term of the CC&Rs or 20 years, whichever is less. This bill would amend Civil Code Section 4265 to prohibit a single extension of the terms of the CC&Rs from exceeding the initial term or 25 years, whichever is less.

To read the current text of AB 1917, click here to the view the bill’s page on the California Legislature’s website. FindHOALaw will continue to track AB 1917 as it progresses through the Legislature.

View more info on AB 1917
from the California Legislature's website

AB 1760 (Frazier). Parking: emergency vehicles.

Would prohibit an association from developing rules that would prohibit or restrict a member from parking an emergency vehicle on association property.

Current Status: Dead

FindHOALaw Quick Summary:

This bill would add Civil Code Section 4721 to make a prohibition or restriction in the governing documents void and unenforceable as it relates to the parking of an emergency vehicle owned or under the control of a member.

To read the current text of AB 1760, click here to the view the bill’s page on the California Legislature’s website. FindHOALaw will continue to track AB 1760 as it progresses through the Legislature.

View more info on AB 1760
from the California Legislature's website

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