It is October, and many association boards of directors and managers are in the process of preparing their associations' 2010 budgets and statutory disclosure mailings. As we have done every year for the last decade, we have posted SwedelsonGottlieb’s Annual Disclosure and Notice Checklist to assist you with that process. Even if you have already sent out your budget and disclosure package, you may want to review the checklist to make sure that you have not forgotten anything. Note that there are a few changes to statutes. For example, the Notice of Assessments, Foreclosures and Payment Plans pursuant to Civil Code Section 1365.1 has been modified. In addition, there are some new changes effective January 1, 2010 regarding the Assessment in Reserve Funding Disclosure Summary, the creation of a Disclosure Document Index, and other procedural changes. Please check our blog later this week for a summary of those new laws and their application to your associations.
You have most likely received emails regarding proposed new legislation that would allow California community associations’ Boards the power to enter into long term contracts for water or energy efficiency programs. After considering the pros and cons as expressed in these emails, we have let the Governor know that we support this bill. We urge you to let him know that you do as well, and you need to do that now, as he will soon be finalizing his decision on this bill.
Here are the facts: The California legislature recently passed Assembly Bill 1328, which is now on the Governor’s desk, awaiting his approval or veto. AB 1328, if enacted, would allow an association to enter into a contract for a water or energy efficiency program for a term of up to five (5) years, if the board reasonably anticipates that the contract will result in savings to the association. The members would not have the right to vote on the contract, but would be given notice of the proposed duration of the contract on the agenda for any meeting at which the contract will be discussed or voted on.