🎙️ Sandra L. Gottlieb, Esq., CCAL Featured on The HOA Show Podcast – Episode 34
We’re thrilled to share that Sandra L. Gottlieb, Esq., CCAL, Co-Founder of SwedelsonGottlieb and a recognized leader in community association law, recently joined The HOA Show Podcast for an insightful discussion on a critical piece of legislation impacting HOAs across California.
🎧 Episode 34: “Assembly Bill 130”
AB 130 $100 Fine Caps, Hearing Procedures, and Prohibited ADU Fees
Synopsis: AB 130 was a housing bill passed with urgency by the State legislature that is now in effect. This bill makes significant changes to governance by implementing new fine limits, hearing procedures, and ADU/JADU fee restrictions. These changes, made without any input from industry experts, will dramatically and negatively impact homeowners’ associations.
Changes to Fines and Hearing Procedures
Condominium Balcony, Stair and Walkway Inspections and Repairs: January 1, 2025 State-Mandated Deadline.
Background
On January 1, 2020, the State legislature added California Civil Code § 5551 to require condominium associations with certain elevated exterior elements (“EEEs”) such as decks, balconies, walkways, stairs, and related railings to be inspected by January 1, 2025. This new law is often referred to as the “Balcony Bill” or SB326 as that was the bill number before being passed into law in year 2019. The cause for this legislation was due to the collapse of a balcony that caused several deaths and so the purpose of these inspections is to make sure EEEs are safe to use and if unsafe, limit access until such EEEs are repaired.
Did You Know?
New Lender Requirements by Fannie Mae and Freddie Mac Require Current Reserve Studies To Provide For Sufficient Funding.
By Adrian Chiang, Esq.
Did you Know?
By Leena Danpour, Esq.
The 28-day membership comment period is not required for all proposed rule changes. Yes, you heard it here.
By: The Attorneys at SwedelsonGottlieb
As it does just about every year, the California Legislature has made changes to the law impacting community association’s statewide. This article covers those changes effective January 1, 2023 and other recent changes in the law that are worthy of being mentioned, as they may apply to your California community association. We have included examples of the application of the new law.
Outline of what is covered in this article:
It is fall, and for most California community associations, it is budget season and boards and managers are in the process of preparing budgets for the 2022 fiscal year. Along with the next fiscal year’s budget, boards and managers need to be thinking of all of the disclosures that California law requires be made. That is why SwedelsonGottlieb annually publish this Checklist. The good news is that there are no major changes in the law relating to disclosures. But that does not mean that there are no other issues or disclosure requirements to consider.
There are issues that we discussed last year that need to be considered, if the association has not already taken action, including the now required balcony inspections, election rules, rental restriction changes, and accounting for bad debt associated with COVID-19.
In addition, economists are projecting inflation to hit associations in the coming year. We have already seen increased cost for materials, utilities, and insurance. Employees all over the state are demanding higher wages to return to work, which will have a trickle-down effect in every service the association receives, be it janitorial, landscape, management, or pool. Associations really need to contact their service providers, contractors and insurance broker to discuss potential increases in next years fees and costs. To respond to homeowner outcry that usually follows an increase in assessments, boards should be prepared to educate homeowners on the rising costs and the plan to keep the association financially stable.
Sometimes you do not even know there is an issue until someone raises a question. Special thanks to Ryan Gesell from Cline Agency and to the managers that asked Ryan if Civil Code §§ 1102.6f and 1102.19, as added by AB-38 (2019), apply to homeowners’ associations; teaser alert: they do!
We reviewed Civil Code §§ 1102.6f and 1102.19, Government Code § 51182 which relates to the aforementioned Civil Code sections, and all related material from the Office of the State Fire Marshal who is responsible for this fire prevention program. Civil Code §§ 1102.6f and 1102.19 and Government Code § 51182 do not contain limitations or exclusions as they relate to condominiums or lots; therefore, it appears that these laws apply to both condominiums and lots/planned developments. Uggg!
Seller Disclosure Requirements
Does your community association have a Membership List Use Policy and Agreement for when it grants a request for the association’s member contact list? In order to limit unrestricted use of the list, it should.
When a homeowner makes a demand for the association’s membership and contact list, aka its mailing list, it does not mean they get a free pass to use the association’s mailing list on an ongoing basis even if the owner was previously given the membership/mailing list for another purpose. That’s not the way the statute is written, and giving carte blanche would really invite abuse. If every owner could just request the membership list once for a specific purpose, which then enabled them to use it whenever they wanted indefinitely into the future, this would create nuisances and potential privacy concerns for those owners who later opted out of providing their information.
According to Civil Code Section 5225, “A member requesting the membership list shall state the purpose for which the list is requested which purpose shall be reasonably related to the requester’s interest as a member. If the association reasonably believes that the information in the list will be used for another purpose, it may deny the member access to the list. If the request is denied, in any subsequent action brought by the member under Section 5235, the association shall have the burden to prove that the member would have allowed use of the information for purposes unrelated to the member’s interest as a member.” This language, on its face, implies that a member must request to use the membership list each time they wish to make use of it, as the provision of the list requires board approval of such use and the board to make a determination that the use of the list will be association related.
SwedelsonGottlieb annually updates and publishes its Disclosure and Notice Checklist as a resource for Managers and Board Members of California Community Associations. The updated Checklist is 14 pages (there are a lot of things that California community associations are required to give notice of or disclose) and sets out what disclosures and notices California community associations are to provide to homeowners, when and how they are to be provided, as well as other considerations. Included is information regarding the Code requirements for the Annual Budget Report, the Annual Policy Statement, Fiscal Year End Disclosures, and other Additional Disclosures/Notices. We have included information regarding the recent changes to Civil Code Section 4041 relating to the solicitation of owner mailing addresses, etc. and the required New Management Disclosures. Follow this link to download your copy of this important resource.
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