Updates 2010!

These bills were enacted into law in 2009 and are highlighted in the 2010 edition of the condo book.

• SB 786     Ch. 65        CCP 425.16             Allows for recovery of attorneys fees by defendant on special motion to strike
• AB 899     Ch. 484      Civ. Code 1350.7; 1365.2.5; and new Section 1363.005      Clarifies delivery of records by electronic transmission; addresses long term interest and inflation rate in projections; lists disclosures required to be annually distributed to membership
• AB 1246    Ch. 520      Civ. Code 1351     Revises definition of “limited- equity Housing cooperative”
• AB 1061    Ch. 503      Civ. Code 1353.8    Any governing document provision prohibiting water efficient landscapes is void
• AB 313      Ch. 431      Civ. Code 1366.4    Prohibits assessments based on taxable value of separate interests within the association
• AB 927      Ch. 7          Civ. Code 1375       Extends expiration date of specific requirements before HOA can file construction defect litigation
• AB 285      Ch. 96        Corp. Code 20        Removes of requirements of Federal Law relating to authorized electronic transmissions
• AB 515      Ch. 322      Veh. Code 22658    New section re: docs provided to towing co. to release an impounded vehicle

We are monitoring these bills currently under consideration in the California Legislature.

AB 1726

This bill would add a provision to the Davis-Stirling Common Development Act regarding voting and quorum requirements. In the event that there is a lack of a quorum at a member meeting or for the election of directors, this bill would provide for an automatic reduction in the quorum requirement at a subsequent members’ meeting to 33% of the association membership entitled to vote.

AB 1793 Civil Code § 1353.8

was added to the Davis Stirling Act in 2009 to encourage the use of water tolerant plants. This new law can be found in bold italicized type on page 107 of the 2010 Edition of The Condominium Bluebook. AB 1793 would expand on this law by voiding any provision in association governing documents that would prohibit the use of artificial turf or any other synthetic surface that resembles grass. Associations would still be allowed to make landscape rules and regulations that establish design and quality standards for the installation of artificial grass.

AB 1927

After January 1, 2011, the approval of 2/3 of the members would be required to amend, adopt or record governing documents to impose a rental restriction. This bill would also require owners to disclose rental restrictions prior to transfer of title.

AB 2502

Under Civil Code § 1367.1 any payment made by an owner of a separate interest toward a past due assessment is first applied to the assessment owed, and only after the assessment is paid is full, are the payments applied to the fees and costs of collection, attorney’s fees, late charges, or interest. Associations have the right to assign the collection of delinquent assessments to third parties. Under this bill those third parties will be required to apply collection payments on delinquent assessments according to the provisions of the Davis-Stirling Common Development Act.