Agenda Summary - Common Interest DevelopmentMarriott Hotel Anaheim, California January 26, 2006 10:00 AM – 12:00 PMPresiding: Dona Crowder, Chair Steve Delmartini, Vice Chair Janet Halliburton, Vice Chair Jeanette Way, Committee LiaisonC.A.R. Staff: Ron Kingston Natalie Cardenas I. Opening CommentsII. Approval of the September 22, 2005 meeting notes. III. AB ____ (Laird) Reserve Account Funding Disclosures and Decision Making Progress, A CAR Sponsored Bill. For decades CAR has been concerned about the adequacy of homeowner association reserve accounts. Associations that are not funded face tremendous difficulties maintaining the value and desirability of the property. REALTORS have consistently expressed interest in resolving this matter. After several years of discussion, the CAR directors decided that we should sponsor a bill this year to resolve this issue. The billwill require: all associations to identify components that have a useful life of 30 years or less (today CIDs may exclude certain components and not disclose that to members); components that have a useful life of more than 30 years to simply be identified; loans the association will obtain to pay for replacement of repair of the major components to be disclosed to members; members to annually approved by a majority vote if special assessments will be used in the future to pay for the repair and replacement of the major components; and it will make a number of technical and conforming changes in law to implement the intent of the CAR board of directors motion of September 2005.IV. Homeowner Association Renter Restrictions* An Issues Briefing Paper Was Written on this matter. Members of the Pacific West Association of REALTORS will present their concerns.V. Work Group Progress Report by Kelly Richardson: A Consumers Guide: Owning a Home in a Common Interest Development. Mr.Richardson will present the latest written version of the guide and seek additional input from committee members concerning direction and content of the draft booklet.VI. Condominium Conversions and Tenancy in Common. Significant activity has occurred in this area recently and the committee will be briefed accordingly. VII. Clean-Up Legislation: Homeowner Association Foreclosure and Late Payment Laws. Last year the Governor signed into law, SB 137 (Ducheny), a bill that substantially changes the manner in which a homeowner association is to follow if it is to collect on a late assessment payment. This year, many expect a member of the Legislature to carry a bill that will address some problematic features to last year’s bill. The changes should address: when a homeowner association may lien a property and the arduous process which must be followed to mediate a dispute over a late paymentVIII. Clean-Up Legislation: SB 61 (Battin) Statutes of 2005 Relating to Elections. Many interested parties are desirous of resolving the many problems of SB 61, a bill that is very detailed in nature concerning a homeowner association election process. The issues to be resolved include: the possibility of multiple ballots being cast or filed bythe same homeowner; the conflict in laws the measure created concerning proxies and ballots; the confusion that has resulted of how long ballots and not proxies, must be retained; the requirement that the ballots must not be opened until the scheduled meeting (larger homeowner associations find this to be particularly problematic); and the new law does not allow for nominations to occur; the law does not address cumulative voting.IX. AB 770 (Mullin) and SB 551 (Lowenthal) Creation of astate level CID Ombudsman. The bills are to clear the respective houses of origin by the end of January or they will “die” pursuant to the rules of the Legislature. The measures are identical. They propose to create a CID Ombudsman. A levy of$5 per dwelling would be imposed. The Ombudsman would provide significant education to board of directors and members of associations. He or she would provide mediation services. The authors have promised CAR that the bills will be amended to preclude theperson from providing any advice or education concerning real estate licensed activities. The measures are opposed by the Administration and face an uphill battle.