8:00 a.m. - 11:20 a.m.
Thursday, October 4, 2012
Anaheim, CA

Mission Statement:
The Housing Committee is a Policy Committee. Its mission is to develop C.A.R.'s housing policy.  It has original jurisdiction to evaluate housing legislation and regulation in the following issue areas: Common Interest Developments; Fair Housing/Equal Opportunity; Housing Policy; Manufactured Housing; Multifamily Housing; and Property Management.

Presiding:
John Torres, Chair
Jay Avirom, Vice Chair

Issue Chairs (ICs):
Dona Crowder, Common Interest Development
Eva Garcia, Fair Housing/Equal Opportunity
Charlene Singley, Housing Policy
Diane Conaway, Manufactured Housing
Frank Oti, Multi-Family Housing
Mike Fracisco, Property Management

Executive Committee Liaison:
Patricia Bouie-Hinds

Legislative Committee Vice Chair:
Oronzo "Otto" Catrina

Staff Coordinator:
Dave Milton

Federal Issues Coordinator:
Matt Roberts

I. Welcome and Opening Remarks - John Torres, Chair

II. Action Items
A. State
1. CID Issue Area - Delinquent Assessments in HOAs of CIDs (IBP Attached.)*
Issue - Should C.A.R. sponsor legislation in 2013 with respect to delinquent assessments in home

owners associations (HOAs) of common interest developments (CIDs)?
2.CID Issue Area - Follow-up to C.A.R.'s AB 771 (Butler) of 2011 re Prohibition of "Bundling" of Charges for CID Escrow Documents (IBP Attached.)*
Issue - Should C.A.R. sponsor legislation in 2013 with respect to clarifying guidelines created by C.A.R.'s AB 771 (Butler) as to provision of documents required by Civil Code Section 1368?

B. Questions or Motions from Committee Members
C. Other

III. Direction Requested
A. "Squatters"
1. Issue: Several REALTORS® have raised the issue of "Squatters" on properties they are attempting to sell for clients as a growing problem. C.A.R. Legal has indicated that the "C.A.R. Hotline" has received a few calls on this issue, but not a significant number. The attached article from "MercuryNews.com" contains the opinion of the article's author that "adverse possession does not establish squatter's rights". (Copy of article attached)****
2. Discussion
B. "Satellite Dishes" left on Rental Housing
1. Issue: Is the abandonment of satellite dishes by renters when they terminate a tenancy a major problem for property managers and owners of rental housing? If so, should this problem be evaluated in depth by an Issues Briefing Paper for the January meetings? This question has been brought to us by one of our past C.A.R. Presidents.
2. Discussion
C. Other

IV. Report Items

A. CID   Dona Crowder, Issues Chair (IC)
1. State
AB 805 (Torres) Recodification of CID Law (Davis-Stirling Act) - Sponsored by the Law Revision Commission, AB 805 becomes effective on January 1, 2014. It will comprehensively reorganize and recodify the Davis-Stirling Act by grouping related provisions together, clarifying certain sections without changing substantive effect, dividing longer sections into shorter, and standardizing terminology throughout.
Status - Signed by Governor on August 17, 2012; Chapter 180, 2012 Statutes Position - Support

AB 806 (Torres) Technical companion bill to AB 805  - Sponsored by the Law Revision Commission, this bill also becomes operative on January 1, 2014, as does AB 805. AB 806 makes all of the cross-reference changes necessary to comport other codes, which were referenced in the Davis-Stirling Act, to the revised version that was re-codified by AB 805.
Status - Signed by Governor on August 17, 2012; Chapter 181, 2012 Statutes Position - Support

AB 1838 (C. Calderon) Modification of C.A.R.'s AB 771(Butler) of 2011 - In 2011, C.A.R. sponsored AB 771 (Butler), which clarified exactly which documents sellers of homes in Homeowners Associations (HOAs) are required to provide to the prospective purchasers and requires that ONLY fees for the actual costs of preparing and procuring the required documents can be charged. This bill expands on AB 771 by prohibiting the charging of cancelation fees when a CID transaction fails to close.
Status - Enrolled to Governor on August 30, 2012 Position - Support

AB 2273 (Wieckowski) Notice to Homeowners Association (HOA) of sale of unit in foreclosure - Requires a foreclosure sale to be recorded within 30 days of the date of sale of a unit in a CID, and also requires the foreclosing lender to provide the HOA with the new owner's contact information within 15 days of the trustee's sale.
Status - Signed by Governor on September 7, 2012; Chapter 255, 2012 Statutes Position - Support

2. Federal
FHA Condo Rules Update
Members of Congress Send Letter to FHA on Condos
Sixty-nine Members of the House of Representatives wrote to the FHA last week, asking them to loosen restrictions on the sale of condominiums The letter urges FHA to reform these requirements which place burdens on seller, buyers, and condominium properties and homeowners associations.

View the letter to see if your Member of Congress signed the letter. FHA is in the process of reviewing the condo rules and revised rules are expected soon. *****

B. Fair Housing/Equal Opportunity   Eva Garcia, IC
No "Priority Bills" still "alive" at end of the 2012 Session of the Legislature

C. Housing Policy   Charlene Singley, IC
1. State
SB 1156 (Steinberg) Sustainable CommunitiesInvestment Authority - Redevelopment agencies were dissolved as of February 1, 2012..SB 1156 allows local governments with remaining redevelopment funds to create a Sustainable Community Redevelopment Authority in order to develop a plan for a sustainable communities investment area utilizing remaining funds.
Status - Enrolled to Governor on August 30, 2012 Position - Support

2. Federal
Renters to Homebuyers Program
On March 8, 2012, Congressmen Joseph Heck (R-NV) introduced H.R. 4172, the "Second Chance at Homeownership Act of 2012". This legislation would create within FHA a Second Chance at Home ownership Program, which would be intended to offer insured and safe loans to individuals who had been foreclosed upon. (IBP Attached.)*

The Transaction and Regulatory Committee will be discussing this issue for policy direction during their meeting in Anaheim

D. Manufactured Housing   Diane Conaway, IC
No "Priority Bills" still "alive" at end of the 2012 Session of the Legislature

E. Multi-Family Housing   Frank Oti, IC
AB 1978 (Galgiani) Collection Box Requirements for Salvageable Personal Property - Sponsored by Goodwill Industries, this bill is a response to the surge of unattended collection boxes placed on rental housing and retail properties without the property owner's consent. It proposes to require the express, written consent of a property owner before a collection box can be placed on his or her property.
Status - Enrolled to Governor on August 29, 2012  Position - Support

F. Property Management   Mike Fracisco, IC
1. State
AB 1679 (Bonilla) Disposition of Security Deposits after Termination of Tenancy - This bill proposes to permit landlords and tenants to mutually agree to electronic delivery of a security deposit refund and the disclosure of distribution or application of security deposit funds.
Status - Enrolled to Governor on August 30, 2012   Position - Support

AB 1925 (Ma) Temporary Relocation Assistance Guidelines for Rental Housing Rehabilitation in San Francisco - Sponsored by the California Apartment Association (CAA),  AB 1925 limits fees the City and County of San Francisco can impose upon rental housing owners to a flat $250 per day to temporarily relocate tenant households when performing tenant improvements, instead of the $5,000 per day the city had been requiring of landlords. 
Status - Signed by Governor on September 7, 2012; Chapter 243, 2012 Statutes Position - Support

AB 2521 (Blumenfield) Personal Property Left in Rental Unit; Guidelines for Disposal - This bill provides that a landlord may retain "abandoned" property for his or her own use or dispose of it in any manner if he or she believes that the total resale value of the property not released is less than $700. The current value established by this statute is $300.
Status - Enrolled to Governor on August 28, 2012 Position - Support

SB 1055 (Lieu) Guidelines for Residential Rental Payments -The bill requires any landlord or landlord's agent that provides a tenant the option of paying rent and/or security deposit on line to also give the tenant the option to pay rent and/or security deposit by check or money order. In certain circumstances, a tenant can be required to pay in cash if rents have been paid with bad checks or other failures to pay have occurred. 
Status - Signed by Governor on September 7, 2012; Chapter 268, 2012 Statutes Position - Support

SB 1191 (Simitian) Landlord Disclosures to Prospective Tenants - Requires landlords for residential real property to notify a potential tenant prior to executing a lease agreement if a notice of default (NOD) has been filed against the property. C.A.R. obtained amendments which eliminate any liability for a property manager under the new law unless the landlord has notified the property manager, in writing, of the NOD and directed him or her to deliver the written disclosure to the tenant. As amended, C.A.R. moved to a support position on the bill.
Status - Enrolled to Governor on August 22, 2012 Position: Support

2. Federal
REO to Rental Securitization
Over the last year investors have begun to slowly buy single-family REOs for the purpose of initially renting them and selling at a later date. They are considering the possibility of financing purchase of REOs by creating a securitization vehicle with rents and possibly the property appreciation providing a steady return on capital to investors who purchase these securities. (IBP Attached.)*

The Transaction and Regulatory Committee will be discussing this issue for policy direction during their meeting in Anaheim.

V. Introduction of 2013 Housing Committees Leadership (Note: Housing Committee has been divided into two policy committees, commencing in January of 2013.):

A. Housing - Home Ownership(Chair - Sandy Darling; Vice Chair - Karl Lee
1. CID (Issues Chair - Nick Lymberis)
2. Housing Policy (Issues Chair - Ronna Brand)
3. Manufactured Housing (Issues Chair - Diane Conaway)

B. Housing - Rental(Chair - Jay Avirom; Vice Chair - Mike Clancy
1. Fair Housing/Equal Opportunity (Issues Chair - Tangie Leverett)
2. Multifamily (Issues Chair - Kelly Richardson)
3. Property Management (Issues Chair - Derek Leistra)

VI. Update on May Meeting Staff Directives

1. Q & A on the "Delinquent HOA Assessments" Issue-.
C.A.R. Legal has prepared the attached "Q & A" entitled "Foreclosure and Short Sale Issues: HOA Liens and Assessments FAQ". **

2. C.A.R. Educational Opportunities for REALTORS® about existing legal and operational solutions to "Delinquent HOA Dues" challenges - According to REBS Staff, this "Staff Directive" requires more specificity before it can be assigned

to the appropriate C.A.R. Staff. We have been requested to narrow the request to whether it is:
- - A specific tangible product/service that C.A.R. can market to REALTORS®; or
- - An Educational Opportunity, in which case we need to connect with REBs Education Services; or
--If there is not a real revenue opportunity for C.A.R., then REBs is not the appropriate resource and C.A.R. Legal should be approached to provide a free webinar on the topic.

3. C.A.R. Survey of Membership as to extent of "Delinquent HOA Assessments" problem around the State-***
C.A.R. surveyed the Membership as requested and the results of Survey are attached.

VII. Other Business or Items for Discussion

VIII. Adjournment

*See attached Issues Briefing Papers (IBPs).
Attachments on Cover Memo:
** See attached "Q & A", which is also available on C.A.R. Website in the LEGAL Section
*** See attached Survey Results
**** See attached Mercury News Article
*****See attached letter to HUD Secretary Donavan from Members of Congress