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Legislative Updates

SUMMARY OF LEGISLATIVE UPDATES FOR 2021

 
AB 502 (Davies) - Election Requirement   
  • The Davis-Stirling Common Interest Development Act governs the formation and operation of common interest developments and generally provides for the election and removal of directors of the board by secret ballot. Existing law provides for director nominees to be considered elected by acclamation if the number of director nominees is not more than the number of vacancies to be elected, the association includes 6,000 or more units, the association provides individual notice of the election at least 30 days before the close of the nominations, and the association permits all candidates to run if nominated, except as specified.
  • This bill would delete the requirement that the association includes 6,000 or more units and allow election by acclamation for all associations when the number of candidates is equal or less than the number of vacant seats. 
  • This bill was signed by the Governor on 10/5/2021 and will take effect 1/1/2022.
  • To view bill click HERE
 
AB 611 (Silva) - Safe at Home Program Homeowners' Associations   
  • The act authorizes the association of a common interest development to withhold or redact information from association records in specified instances, including, but not limited to, when the release of the information is reasonably likely to compromise the privacy of an individual member of the association.
  • Existing law establishes an address confidentiality program for victims of domestic violence, sexual assault, stalking, human trafficking, or elder or dependent adult abuse, commonly known as the Safe at Home program, under which an adult person, or a guardian on behalf of a minor or an incapacitated person, states that they are a victim of domestic violence, sexual assault, stalking, human trafficking, or elder or dependent adult abuse, and designates the Secretary of State as the agent for service of process and receipt of mail. Under existing law, when the Secretary of State certifies the person as a program participant, the person's actual address is confidential.
  • This bill would, upon request of a participant in the Safe at Home program, require the association of a common interest development to accept and use the address designated by the Secretary of State as the Safe at Home participant's substitute address for association communications and to withhold or redact information that would reveal the name, community property address, or email address of the Safe at Home participant in specified communications of the association.
  • This bill was signed by the Governor on 8/31/2021 and will take effect 1/1/2022.
  • To view bill click HERE
 
AB 1101 (Irwin) - Funds: Insurance  
  • Existing law, the Davis-Stirling Common Interest Development Act, regulates common interest developments and requires a managing agent, at the written request of the board of directors of the association, to deposit funds the managing agent receives on behalf of the association into a bank, savings association, or credit union in the state if specified requirements are met.
  • This bill would require the bank, savings association, or credit union to be insured by the Federal Deposit Insurance Corporation, National Credit Union Administration Insurance Fund, or the Securities Investor Protection Corporation.
  • Existing law prohibits transfers of greater than $10,000 or 5% of an association's total combined reserve and operating account deposits, whichever is lower, without written approval from the board.
  • This bill would instead prohibit transfers of $10,000 or greater without prior written approval from the board.
  • Existing law requires the association to maintain fidelity bond coverage for its directors, officers, and employees, and requires the fidelity bond coverage to also include computer fraud and funds transfer fraud and, if the association uses a managing agent or management company, coverage for dishonest acts by that person or entity and its employees.
  • This bill would specifically require the association to maintain crime insurance, employee dishonesty coverage, and fidelity bond coverage, or their equivalent, for the association and the association's managing agent or management company and would require the protection against computer and funds transfer fraud to be in an equal amount.
  • This bill was signed by the Governor on 9/23/2021 and will take effect 1/1/2022.
  • To view bill click HERE
 
AB 1466 (McCarty) - Real Property: Discriminatory Restrictions   
  • Existing law requires a county recorder, title insurance company, escrow company, real estate broker, real estate agent, or association that delivers a copy of a declaration, governing document, or deed, to place a cover page or stamp on the first page of the previously recorded document stating that if the document contains any restriction that unlawfully discriminates based on any of the characteristics specified above, that document is void.
  • This bill would require a title company, escrow company, real estate broker, real estate agent, or association that delivers a copy of a declaration, governing document, or deed to a person who holds an ownership interest of record in property to also provide a Restrictive Covenant Modification form with specified procedural information.
  • This bill would additionally authorize a title company, escrow company, county recorder, real estate broker, real estate agent, or other person to record a Restrictive Covenant Modification. The bill, beginning July 1, 2022, would require a title company, escrow company, real estate broker, or real estate agent that has actual knowledge of a declaration, governing document, or deed that is being directly delivered to a person who holds or is acquiring an ownership interest in property and includes a possible unlawfully restrictive covenant to notify the person of the existence of that covenant and their ability to have it removed through the restrictive covenant modification process. The bill would, beginning July 1, 2022, and upon request before the close of escrow, require the title company or escrow company that is directly involved in the pending transaction to assist in the preparation of a Restrictive Covenant Modification, as specified.
  • This bill was signed by the Governor on 8/28/2021 and will take effect 1/1/2022.
  • To view bill click HERE
 
AB 1584 (Assembly Housing Committee) - Housing Omnibus  
  • The Davis-Stirling Common Interest Development Act prohibits a common interest development from adopting or enforcing a provision in a governing document, or amendment to a governing document, that restricts the rental or lease of separate interests within a common interest to less than 25 percent of the separate interests. The act requires a common interest development to comply with the prohibition on rental restrictions regardless of whether the common interest development has revised its governing documents to comply with the act and requires a common interest development to amend its governing documents no later than December 31, 2021.
  • This bill would allow common interest development board, without approval of the members, to amend any declaration or other governing document no later than July 1, 2022, that includes a prohibited restrictive covenant, as provided. The bill would require a board to provide general notice of the amendment at least 28 days before approving the amendment and would require any decision on the amendment to be made at a board meeting, after consideration of any comments made by association members.
  • This bill was signed by the Governor on 9/28/2021 and will take effect 1/1/2022.
  • To view bill click HERE
 
SB 9 (Atkins) - Housing Omnibus  
  • The Davis-Stirling Common Interest Development Act prohibits a common interest development from adopting or enforcing a provision in a governing document, or amendment to a governing document, that restricts the rental or lease of separate interests within a common interest to less than 25 percent of the separate interests. The act requires a common interest development to comply with the prohibition on rental restrictions regardless of whether the common interest development has revised its governing documents to comply with the act and requires a common interest development to amend its governing documents no later than December 31, 2021.
  • This bill would allow the common interest development board to amend any declaration or other governing document to be in compliance with AB 3182 without the approval of the members.  This bill would also extend the deadline to amend the documents to July 1, 2022.
  • This bill was signed by the Governor on 9/16/2021 and will take effect 1/1/2022.
  • To view bill click HERE
 
SB 10 (Wiener) - Planning and Zoning: Housing Development: Density  
  • Existing law requires an attached housing development to be a permitted use, not subject to a conditional use permit, on any parcel zoned for multifamily housing if at least certain percentages of the units are available at affordable housing costs to very low income, lower income, and moderate-income households for at least 30 years and if the project meets specified conditions relating to location and being subject to a discretionary decision other than a conditional use permit.
  • Existing law provides for various incentives intended to facilitate and expedite the construction of affordable housing.
  • This bill would, notwithstanding any local restrictions on adopting zoning ordinances, authorize a local government to adopt an ordinance to zone any parcel for up to 10 units of residential density per parcel, at a height specified in the ordinance, if the parcel is located in a transit-rich area or an urban infill site, as those terms are defined. The bill would prohibit a local government from adopting an ordinance pursuant to these provisions on or after January 1, 2029.
  • The bill would specify that an ordinance adopted under these provisions, and any resolution to amend the jurisdiction's General Plan, ordinance, or other local regulation adopted to be consistent with that ordinance, is not a project for purposes of the California Environmental Quality Act. 
  • The bill would prohibit an ordinance adopted under these provisions from superceding a local restriction enacted or approved by a local initiative that designates publicly owned land as open-space land or for park or recreational purposes.
  • The bill would impose specified requirements on a zoning ordinance adopted under these provisions, including a requirement that the zoning ordinance clearly demarcate the areas that are subject to the ordinance and that the legislative body make a finding that the ordinance is consistent with the city or county's obligation to affirmatively further fair housing. 
  • This bill was signed by the Governor on 9/16/2021 and will take effect 1/1/2022.
  • To view bill click HERE
 
SB 60 (Glazer) - Residential Short-term Rental Ordinances: Health or Safety Infractions: Maximum Fines
  • Existing law authorizes the legislative body of a city or a county to make, by ordinance, any violation of an ordinance subject to an administrative fine or penalty and limits the maximum fine or penalty amounts for infractions, to $100 for the first violation, $200 for a 2nd violation of the same ordinance within one year of the first violation, and $500 for each additional violation of the same ordinance within one year of the first violation. Existing law also sets specific monetary limits on the fines that may be imposed by city or county authorities for any violation of local building and safety codes that is an infraction, as prescribed. Existing law requires a city or county levying fines pursuant to these provisions to establish a process for granting a hardship waiver in certain cases.
  • This bill would, notwithstanding those provisions and with certain exceptions, raise the maximum fines for violation of an ordinance relating to a residential short-term rental, as defined, that is an infraction and poses a threat to health or safety, to $1,500 for a first violation, $3,000 for a 2nd violation of the same ordinance within one year, and $5,000 for each additional violation of the same ordinance within one year of the first violation. The bill would make these violations subject to the process for granting a hardship waiver.
  • This bill authorized local governments to increase penalties for individuals who violate short-term rental ordinances and create health or safety issues.
  • This bill was signed by the Governor on 9/24/2021 and take effect immediately as an urgency statute.
  • To view bill click HERE
 
SB 391 (Min) - Common Interest Developments: Emergency powers and procedures
  • Existing law governs the management and operation of common interest developments. Existing law defines a board meeting as a congregation, as provided, or a teleconference, as provided. Existing law requires, among other things, a board meeting held by teleconference to identify at least one physical location so that members of the association may attend, except as provided.
  • This bill would establish alternative teleconferencing procedures for a board meeting or a meeting of the members if gathering in person is unsafe or impossible because the common interest development is in an area affected by a federal, state, or local emergency. The bill would also make a conforming change.
  • This bill was signed by the Governor on 9/23/2021 and take effect immediately as an urgency statute.
  • To view bill click HERE
 
SB 392 (Archuleta) - Common Interest Developments: Emergency powers and procedures
  • Existing law requires an association to deliver documents to members of a common interest development, if those documents are required to be delivered by individual delivery or notice, by either first-class mail, postage prepaid, registered or certified mail, express mail, or overnight delivery by an express service carrier or by email, facsimile, or other electronic means, if the recipient has consented, in writing or by email, to receive documents by that electronic means.
  • This bill would instead require, on and after January 1, 2023, an association to deliver those documents in accordance with the preferred delivery method specified by the member or, if the member has not provided a preferred delivery method, by traditional mail, as described above.
  • The act requires an owner of a separate interest to annually provide certain written notice to the association, including the address or addresses to which notices from the association are to be delivered, an alternate or secondary address, and the address of the owner's legal representative, if any. The act requires the association to solicit that notice, as provided.
  • This bill would instead require a member to provide the member's preferred delivery method for receiving notices and an alternate or secondary delivery method for receiving notices, and would require the association to include the options of receiving notice by mail, by a valid email address, or both. The bill would require a member to provide a valid email address, if available, of the owner's legal representative, if any, and would define the term “valid email address.” The bill would require an association to include certain items in the required solicitation of notice described above, including that the member does not have to provide an email address to the association.
  • This bill would include posting the notice on the association's internet website among the authorized delivery methods if this method is so designated by the association in its annual policy statement.
  • The act prohibits association records, and any information from them, from being sold, used for a commercial purpose, or used for any other purpose not reasonably related to a member's interest as a member.
  • This bill would prohibit an association or its managing agent from transmitting a member's personal information to a third party without the consent of the member unless required to do so by law, as specified.
  • This bill would also make conforming and nonsubstantive changes.
  • This bill was signed by the Governor on 10/7/2021 and will take effect 1/1/2022.
  • To view bill click HERE
 
SB 432 (Wieckowski) - Common Interest Developments
  • Existing law provides for nomination by acclamation in an election of members of the board of directors of the association if certain conditions are satisfied, including that the association permits all candidates to run if nominated. However, an association is authorized to disqualify a person from nomination under certain circumstances, including if the person has been a member of the association for less than one year.
  • This bill would revise and recast common interest development election procedures, including, among other things, limiting certain noticing provisions to the elections of directors and to recall elections, requiring an association to maintain association election materials, as defined, for one year after the date of the election, and specifying that the candidate list is required to include the name and address of individuals nominated as a candidate for election to the board of directors.
  • The bill would include among the permissible reasons for disqualifying a person from nomination if the person has served the maximum number of terms or sequential terms allowed by the association.
  • This bill would require the additional persons to be appointed and overseen by the inspectors of election to also satisfy the criteria of who may be an independent third party.
  • This bill would provide that the changes proposed in Section 1 of this bill, amending Section 5100 of the Civil Code, would take effect only if AB 502 is not enacted, or if AB 502 is enacted but does not add Section 5103 to the Civil Code, as specified.
  • This bill was signed by the Governor on 10/7/2021 and will take effect 1/1/2022.
  • To view bill click HERE
 
SB 908 (Wiekowski) - Debt Collectors: Licensing and Regulation: Debt Collection Licensing Act
  • Existing law, the Rosenthal Fair Debt Collection Practices Act, prohibits debt collectors from engaging in unfair or deceptive acts or practices in the collection of consumer debts and defines “consumer debt” and “consumer credit” for purposes of that act.
  • This bill would include placing a telephone call without disclosing the caller's identity, as specified, and sending digital or written communications that do not display the license number of the debt collector in at least 12-point type as prohibited debt collection practices.
  • Existing law establishes the Department of Business Oversight headed by the Commissioner of Business Oversight, who, among other things, generally provides for licensure and regulation of persons who are engaged in various consumer financial businesses.
  • This bill would enact the Debt Collection Licensing Act which would, beginning on January 1, 2022, provide for licensure, regulation, and oversight of debt collectors by the commissioner, define terms for its purposes, and make other conforming changes. The bill would prohibit a person from engaging in the business of debt collecting in this state without a license and would also require the person to comply with reporting, examination, and other oversight by the commissioner. 
  • The bill would require a person applying for a license to, among other things, pay an application fee, sign the application under penalty of perjury, and submit to a criminal background check by the Department of Justice. By expanding the scope of the crime of perjury this bill would impose a state-mandated local program.
  • This bill would require each licensee to, among other things, file reports with the commissioner under oath, maintain a surety bond, and pay to the commissioner its pro rata share of all costs and expenses reasonably incurred in the administration of these provisions, as estimated by the commissioner. The bill would authorize the commissioner to enforce these provisions by, among other things, adopting regulations, performing investigations, suspending a license, issuing orders and claims for relief, and enforcing the provisions, as specified.
  • This bill was signed by the Governor on 9/25/2020 and will take effect 1/1/2022.
  • To view bill click HERE
 
Legislative Updates from the California Legislative Information Website

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