Blog post by David Swedelson
The California Legislative Action Committee reports that the Assembly Housing & Community Development Committee passed AB 2273 on a unanimous bipartisan vote of 7-0. This proposed legislation will require recordation of foreclosure sales within 30 days after sale.
CLAC reports that the author of the bill, Assembly Member Bob Wieckowski, a bankruptcy attorney, “has a complete grasp of the multiple issues that this bill triggers, which greatly assists [California Community Associations] in dealing with the escalating opposition from the lending community, trustees, land-title companies, and others.”
CLAC also stated that in a press release that “[i]f passed, the bill would enable HOAs to know who the new owner of a home is that has been foreclosed, in most cases the lender. This information will enable HOAs to immediately begin invoicing for assessments instead of requiring the shortfall in revenue to be borne by the remaining owners, or defer maintenance, etc.”
In the Legislative Counsel’s Digest, it states that this bill would “provide that an acquiring owner of a separate interest shall, within 30 days of receiving title, provide to the association’s board secretary, agent, manager, or designated representative, a copy of the owner’s deed or other document transferring title to the purchaser acquiring owner of the separate interest and a written notice of the acquiring owner’s mailing address, except as specified.”
No indication as to how an association would enforce this new proposed legislation, as the new “acquiring owner” may not know about this requirement and there is no real sanction for failure to comply.
David Swedelson is a condo lawyer and HOA attorney. David was for many years a delegate to the California Legislative Action Committee. He can be contacted at email@example.com.