Legislation

Chaptered September 29, 2017

This bill enacts the Building Homes and Jobs Act. The bill imposes a fee, of $75 to be paid at the time of the recording of every real estate instrument, paper, or notice required or permitted by law to be recorded, i.e., Assessment Lien, Release of Lien, Record Request for Notice of Trustees's Deed, Notice of Lis Pendens & Withdrawal, etc. not to exceed $225. By imposing new fees and duties, the bill is intended to create the Building Homes and Jobs Fund which is to be used towards affordable housing, home ownership opportunities, and other housing assistance programs.

This bill takes effect immediately as an urgency statute. However, as of November 9th, the following counties indicated the new law will go into effect as follows:

Los Angeles County - January 2018 (no specific date at this time)
Orange County - January 1, 2018
Riverside County - January 1, 2018
San Bernardino County - January 1, 2018
San Diego County - January 1, 2018
Santa Barbara County - January 1, 2018
Ventura County - January 1, 2018
Kern County - January (no specific date at this time)

As a reminder, the $75 recording fee is a cost that can be added to the delinquent owners account.

The following is a summary of legislation enacted and court decisions from this past year, and news and current events, which impact common interest developments.

ENACTED STATE LEGISLATION

AB 968 (Gordon) Exclusive Use Common Area
Civil Code §4775

Section 4775 of the Civil Code currently holds associations responsible for maintaining, repairing, and replacing common areas while owners are responsible for maintaining their separate interest (e.g., condominium unit or lot) and any attached exclusive use common areas, unless the community's governing documents state otherwise. However, the current law fails to delineate whether associations or owners are responsible for the repairs and replacements of exclusive use common areas if the community's governing documents do not clearly establish same. In trying to clarify the current code's language, the legislature passed Assembly Bill No. 968 to amend Section 4775.

Effective January 1, 2017, associations will be responsible for maintaining, repairing, and replacing the common areas and repairing and replacing the exclusive use common areas while the owners of each unit are responsible for maintaining, repairing, and replacing their units and merely maintaining the exclusive use common areas, unless the community's CC&Rs provide otherwise.

This new bill may affect your community's obligations pertaining to exclusive use common areas. Reviewing your community's governing documents with legal counsel is strongly recommended to ensure that the new Civil Code language does not change how your association assigns maintenance duties. As many community's governing documents do not clearly establish responsibilities for the repair and replacement of exclusive use common areas, associations may now be responsible for them, which could significantly impact your community’s budget.

By Brittany A. Ketchum, Esq.
Published in the CAI-Greater Inland Empire Chapter's Connect 2016 Third Quarter Magazine

 Section 4775 of the Civil Code currently holds associations responsible for maintaining, repairing, and replacing common areas while owners are responsible for maintaining their separate interests (e.g., condominium unit or lot) and any attached exclusive use common areas, unless the community’s governing documents state otherwise.  However, the current law fails to delineate whether associations or owners are responsible for the repairs and replacements of exclusive use common areas if the community’s governing documents do not clearly establish same.  In trying to clarify the current code’s language, the legislature passed Assembly Bill No. 968 to amend Section 4775.

Effective January 1, 2017, associations will be responsible for maintaining, repairing, and replacing the common areas and repairing and replacing the exclusive use common areas while the owners of each unit are responsible for maintaining, repairing, and replacing their units and merely maintaining the exclusive use common areas, unless the community’s CC&Rs provide otherwise.

This new bill may affect your community’s obligations pertaining to exclusive use common areas.  Reviewing your community’s governing documents with legal counsel is strongly recommended to ensure that the new Civil Code language does not change how your association assigns maintenance duties.  As many community’s governing documents do not clearly establish responsibilities for the repair and replacement of exclusive use common areas, associations may now be responsible for them, which significantly impact your community’s budget.

Section 4775 of the Civil Code currently holds associations responsible for maintaining, repairing, and replacing common areas while owners are responsible for maintaining their units and any attached exclusive use common areas, unless the community's governing documents state otherwise. However, the current law fails to delineate whether associations or owners are responsible for the repairs and replacements of exclusive use common areas if the community's governing documents do not clearly establish same. In trying to clarify the current code's language, the legislature recently passed Assembly Bill No. 968 to amend Section 4775.

Effective January 1, 2017, associations will be responsible for maintaining, repairing, and replacing the common areas and repairing and replacing the exclusive use common areas while the owners of each unit are responsible for maintaining, repairing, and replacing their units and merely maintaining the exclusive use common areas, unless the community's CC&Rs provide otherwise.

The following is a summary of legislation enacted and court decisions from this past year, and news and current events, which impact common interest developments. 

ENACTED STATE LEGISLATION

AB 349 (Gonzalez) Property Use and Maintenance – Artificial Turf

Effective immediately as an urgency statute, AB 349 amends Civil Code Section 4735 to make any provision of a governing document or policy, including architectural or landscaping guidelines, void and unenforceable if it prohibits, or includes conditions that have the effect of prohibiting, the use of artificial turf or other synthetic surface resembling grass. AB 349 was enacted to reduce outdoor water use to help meet the Governor’s mandated 25-percent statewide water use reduction in a time of drought.

This bill also amends Civil Code Section 4735 to prohibit associations from requiring a member to remove or reverse water-efficient landscaping measures, installed in response to a declaration of a state of emergency, once the state of emergency due to drought is lifted.

AB 596 (Daly) Annual Budget Report – FHA/VA Certification

Beginning July 1, 2016, the annual budget report of a condominium project must include a separate statement describing the status of certification by the Federal Housing Administration (FHA) and the federal Department of Veterans Affairs (VA).
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