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. 

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. 

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. 

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. 

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. 

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).

(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.

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. 

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. 

Current Status: Dead

FindHOALaw Quick Summary:

The Davis-Stirling Act currently requires HOA board elections to be conducted by secret ballot in accordance with the procedures set forth in Civil Code Section 5100 et. seq. (See “Elections Requiring Secret Ballots.”) AB 1426 (Irwin) would amend Section 5100 in order to exempt HOAs from having to comply with those procedures where an election of directors is “uncontested.” An “uncontested” election would be defined as an election where the number of candidates, including write-in candidates, does not exceed the number of directors to be elected at that election and the HOA has declared the election to be uncontested.

As currently proposed, AB 1426 would allow for an election to be declared uncontested if all of the following requirements are met:  the election rules have been adopted and complied with, all declared candidates were nominated before the deadline for nominations, the inspector of elections has informed the board that the number of candidates does not exceed the number of directors to be elected, the board votes in open session to declare the election is uncontested after a hearing during an open board meeting where members are able to make objections, and the board provides general notice to the membership at least twenty (20) days before that board meeting.  The notice must include the date, time, and place of the meeting, the board’s intention to vote to declare the election of directors is uncontested, the names of all candidates who will be declared elected if the board declares the election is uncontested, and the right of any member to attend the meeting to object to the board declaring the election uncontested before the board votes on the matter.  The names of the candidates, the general notice, any objections, and the board vote shall be recorded in the meeting minutes.  If the association’s governing documents provide for write-in votes, the association shall allow fifteen (15) days for a write-in candidate to submit his or her name to the inspector of elections.  In the event one or more write-in candidates are timely submitted, which results in the total number of candidates exceeding the total number of directors to be elected, an election shall be held.  If, after the 15 day period, the total number of candidates still does not exceed the total number of directors to be elected, the uncontested election results shall be sealed and become effective immediately.  If an association’s governing documents do not provide for write-in votes, then the association must provide at least 15 days general notice of the self-nomination process.

This bill would also amend Civil Code § 5105 to provide general notice to the membership of the election and the nomination procedures (the “Call for Candidates”), at least sixty (60) days prior to any election of directors.  Any member who is qualified, in accordance with the governing documents, shall not be denied the right to vote or to be a candidate for the board.  This bill would amend Civil Code § 5145 to allow for a cause of action against the association for violation of rules required by Section 5105.

To read the current text of AB 1426, click here to the view the bill’s page on the California Legislature’s website. FindHOALaw will continue to track AB 1426 as it progresses through the Legislature.