Marriott Hotel
Monterey, California
January 22, 2009
10:00 am – 12:00 pm

Presiding:
Michael Riley, Chair
Vicki Carpenter, Vice Chair
Gary Macrides, Vice Chair
William Jansen, Committee Liaison

C.A.R. Staff: Dave Milton

I. Opening Comments

II. Revisit AB 2259 Veto- Discuss possible introduction of a 2009 Bill meeting Governor's stated concerns*

Issue:
Should C.A.R. sponsor legislation, in response to the Governor's veto in 2008 of the C.A.R.-sponsored AB 2259 (Mullin)**, that would provide that an owner’s right to rent a separate interest in a CID can only be changed pursuant to a written ballot approved by a super-majority vote of the CID's home owners' association (HOA) membership?

** This bill proposed to provide that an individual owner's right to rent an individual interest in a Common Interest Development (CID), that existed at the time the separate interest in the CID was purchased, could not be restricted during the term of his or her ownership absent written permission of the owner.

History:
This CID Committee recommendation was adopted by the C.A.R. Board of Directors in October of 2007, modified to a more succinct goal of protecting the basic property right of an owner of a separate interest in a CID to preserve the ability to rent such an interest, if that right existed at the time the CID unit was purchased. This Board of Directors' Action Item became AB 2259 (Mullin) in the 2008 session of the Legislature. It was passed unanimously by the Assembly Committees and on the Floor of the Assembly. It also was passed unanimously by the Senate Committees and received only one (1) "No" vote on the Floor of the Senate. Although AB 2259 was sent to the Governor with this overwhelming affirmative mandate by the Legislature, he vetoed it for the following reasons:

This bill alters the basic tenets under which CIDs and HOAs are formed and operated. While my support for property rights is unwavering, the CID creates a unique community model that is unlike the standard single family home in the traditional neighborhood. Property owners and residents that purchase and live in a CID governed by an HOA have agreed to live under a common set of rules and guidelines governed by a democratic process. It is best, as current law allows, for the owner-members of the HOA to determine what is best for their communities. (Emphasis added.)

It should be noted during discussion of options under this item that this Governor has demonstrated a strong propensity for vetoing subsequent bills sent to him on the same, or similar, topic to one he has previously vetoed, notwithstanding the efforts of a bill sponsor to make the new bill different from the earlier vetoed measure.

III. State Legislation- Discussion of any key 2009 Legislation introduced prior to meeting

IV. Status of C.A.R. CID Course - An Update

On October 17, 2008, the 2008 Leadership of the CID Committee (Susan Tilling, Chair; Gwynne Hodge, Vice Chair; Mike Riley, Vice Chair) made a presentation to C.A.R.'s Educational Services Advisory Committee (ESAC), chaired by Lois Kadosh. Ms Tilling summarized the CID Committee's foray into the education field and its efforts to provide CID REALTOR® specialists with a REALTOR®-specific course to assist their professional efforts. She also summarized the presentation made to the CID Committee in October by Eileen Stern, Chair of the Solano Association of REALTORS® (SAOR) CID Committee. Eileen made a presentation regarding the SAOR DRE-approved course on Common Interest Developments.

The purpose of this CID Leadership presentation to the ESAC was to request the Committee to consider offering a C.A.R.-sponsored continuing education course focused on the needs of REALTORS® handling transactions in common interest developments. ESAC promised to evaluate this request and make a decision on the CID Committees' request early in 2009.

V. AB 2846 (Feuer) (Chapter 502, 2008 Statutes) - Disputing HOA Fees- An Update

This bill provides that if a dispute exists between the homeowner and the association regarding any charge or sum, and the amount does not exceed the jurisdictional limit for small claims court, the homeowner may, in addition to pursuing dispute resolution, pay the disputed amount under protest and commence an action in small claims court. This bill became effective on January 1, 2009. C.A.R. will be tracking the impact of this measure on resolving disputes between homeowners and HOA management regarding fees assessed for various HOA services.

VI. "HOA Registry"- A Discussion
A. Is there a need for one?
B. If "Yes", what is the most effective process by which one can be created?

VII. Other Business

VIII. Adjournment

* An Issues Briefing Paper is attached to assist this discussion.