Agenda Summary – Common Interest Development CommitteeSheraton Grand Hotel Sacramento, California Grand Nave Ballroom, Magnolia June 7, 2007 9:45 am – 11:20 amPresiding: Steve Delmartini, Chair Rana Linka, Vice Chair Michael Tessaro, Vice Chair Susan Tilling, Committee LiaisonC.A.R. Staff: Dave Milton Natalie CardenasI. Opening CommentsII. LegislationA. California Law Revision Commission Study (For Information purposes only)The California Law Revision Commission recently announced that it is undertaking a multi-year study of common interest development (CID) law. The purpose of the study is to clarify and simplify the CID law. The Commission’s efforts may lead to a comprehensive overhaul of this body of law. One area of the study that the Commission has accelerated is the portion of CID lawrelating to non-judicial dispute resolution between an association and its members and among residents of a CID.B. 2007 Bills of Interest1. AB 567 (Saldana) Common Interest Development Bureau –As amended on April 10, this bill proposes to create a CID Bureau within the State Department of Consumer Affairs. To be funded by a $5 annual fee on every CID unit in the state, the Bureau would provide three primary services:- Education of homeowners and association officers, through an Internet Website, toll-free telephone call center, and training classes.- Empirical data collection, intended to provide policy makers with reliable information about the nature and incidence of problemsoccurring within California’s 41,000 common interest developments.- Provide a neutral, non-judicial forum for the resolution of common interest development disputes. The goal would be to informally resolve as many disputes within CIDsas possible, through the Bureau auspices. As a last resort, the Bureau would be authorized to issue a citation for violation of the law. The bill is being held in the Assembly Housing & Community Development Committee.C.A.R. Position:Not Rated File. Status: Assembly Housing Committee – Two-year Bill.2. AB 691 (Silva) Certified Common Interest Development Managers-Sponsored by the California Association of Community Managers (CACM), this bill proposes to extend the sunset date on the heretofore successful voluntary certification program for professional managers. The sunset date is being pushed out to January 1, 2012 from the present January 1, 2008. The bill also hasprovisions that will improve the current certification program by allowing conflict avoidance and resolution instruction to be included in the certification training. CACM believes sit is critical that professional managers have the opportunity to seek training and education that will better prepare them to assist their boards in complying with statutory disclosure requirements, review applications for property improvements, assist their board in preparing budgets and financial statements, negotiate withcontractors and vendors, collect monthly assessments, pay bills for such basic items as insurance, utilities, and third party contracts, as well as ensure compliance with community rules and maintenance of resident relations.C.A.R. Position:Support. Status: Assembly Business & Professions Committee.
3. AB 952 (Mullin) Common Interest Development Assessments -AB 952 would prohibit the board of directors of a common interest development from imposing a special assessment, including an emergency assessment, or any increase in the regular assessment, of more than 3% on units that are required by law to be provided to low- or moderate-income purchasers, unless those unit owners vote to approve the increase in fees. C.A.R. opposes this bill because owners of units that do not fall into the “special treatment” category for assessments created by AB 952 will be required to bear the increased assessment burden thatthe low- and moderate- income owners have voted not to pay, which was not an obligation that would have been disclosed to the non- “special treatment” owners when they purchased their unit.C.A.R. Position:Oppose. Status: Assembly Floor.4. SB 528 (Aanestad) Common Interest Development Meeting Agenda Requirements-This is the Senator’s own bill, which would prohibit the board of a common interest development fromdiscussing or taking action on any subject matter at a non-emergency meeting that are not on the agenda. Amendments made on April 24 require the agenda to be provided at the same time the notice of the meeting is required to be given to members (at least4 days prior to the meeting. These amendments also provide that the new agenda provisions contained in SB 528 do not preclude a resident of the CID who is not a member of the board from speaking on issues not on the agenda.C.A.R. Position:Favor. Status: Senate Floor5. SB 948 (Harman) Education Requirements for Common Interest Development Association Board Members-This legislation is sponsored by the Community Associations Institute (CAI). As amended on May 1, SB 948 would require every common interest development homeowner association board member to complete at least one 3-hour Department of Real Estate-approved course, relating to common interest developments (CID) decisional and statutory law, during his or her first full term of office, and at least one course every three calendar years after becoming a member of the board. This bill would take effect January 1, 2009. C.A.R. supports education encouragement for CID board members, but believes that this bill is too restrictive and is seeking amendments to expand the eligibility criteria for approved education providers, as well as to exempt licensed real estate brokers and salespersons from the education mandate.C.A.R. Position:Amend Oppose Status: Senate Appropriations Committee.III. Report from the Working Group on Occupancy Restrictions in Common Interest Developments(See attachment)IV. Common Interest Development Consumers GuideA. Review Final DraftB. Discuss Distribution OptionsV. OtherVI. Adjournment