The Communicator - Volume 1, Issue 1 - (Page 9)

We and other lobbying groups suggested amendments which parallel that Act but allow for emergency actions, some (undefined) informational discussion, and action provided the item was on the last agenda for a meeting not in excess of 30 days prior. The customary posting of the notice remains at four days and a physical posting is required; e-mails and letter agendas are permissible. CAI-CLAC will issue a Compliance Advisory next month to help you implement the bill … remember the bill takes effect in January so your notice for that meeting should probably comply even if it is written and noticed in December. You can view the bill’s language at our new Web site, www.CAIcalif.org, click on “HOT BILLS.” Sellers’ Disclosures to Buyers – AB 980 AB 980 (Calderon) Private Transfer Fees. Private transfer fees that do not include homeowner association assessments, fees, charges or fines or community service organization fees must be disclosed by the seller to the buyer prior to transfer of title starting next year. Where there is a private transfer fee that has been recorded against the property, the recipient of the fee must record a separate disclosure document with the appropriate county recorders office. The document to be recorded must provide for specific information about the fee, the recipient(s), purpose, and expiration of the fee. See our Web site for exact bill language, especially paragraph (g), www.CAIcalif.org, click on “HOT BILLS.” Manager Certification – AB 691 The voluntary program by which community association managers may achieve a professional “certification” and thereby be allowed to represent themselves as a certified manager was extended another five years, or until 2012. There is no requirement for associations to hire a certified manager. the association is required to notify its members about the requirement to take a class and shall also inform its members as to which board members did so; it is thought to be a “velvet glove” approach toward self-enforcement as candidates for the board will surely wish to disclose to the members whether they have done so. In addition, the bill requires associations to budget a reasonable sum in its annual budget to compensate the board members for associated expenses; this will keep the future boards aware of the need to remain educated about the laws and enable them to do so. Courses may be in-person, online, or by correspondence or at a community college. Expect clarifying amendments. Veto Power Over Assessments – AB 952 This bill threatens the financial underpinning of associations. It allows a mere handful of unit owners who own (not occupy) a “deed restricted” property which is essentially a low income unit to veto the annual assessment increases. Almost all cities now require 15% or more of all units in a common interest development to be purchased ‘first’ by low income persons in an attempt to achieve the local affordable housing goals. While intended to reduce the negative impact on these owners when significant assessment increases are proposed, the bill would require several elections for member approval to be conducted, several budgets to be prepared if the first increase is vetoed, and the costs to implement would have been unbudgeted. Clearly, this bill has unintended consequences. We halted the bill from progressing through the Senate when we launched ou r L eg i slat ive Gr a s sroot s A ler t and 2,400 messages were sent to all legislators, and the Governor in case the bill passed to his desk. Expect amendments! ■ The Communicator • 9 BILLS THAT WILL MOVE IN 2008 CID Bureau – AB 567 Following two prior attempts to establish a CID Bureau for the purpose of hearing homeowner disputes this bill would, during a two-year pilot program, assess HOAs $10 per year per household ($40 million) in order to collect data on the number and type of owner complaints, attempt to resolve the disputes by mediation, and ultimately fine the association if it fails to act in accordance with the Bureau’s ruling, should it come to that. There are numerous substantive reasons as to why a new State bureaucracy is an inappropriate approach to resolving, or for that matter, preventing disputes from arising. It interferes with local decisionmaking and begins the State regulation of associations which are statutorily-authorized, private, non-profit corporations. The author intends to have the first hearing in the Assembly Housing Committee in January; she chairs that committee. Expect amendments! Board Member Education – SB 948 CAI-CLAC’s sponsored measure intends to prevent disputes in the first place by having all association board members take a half-day course every four years on the laws that govern their communities, especially as the laws are frequently changing. The education process is essential to avoiding unintended and inadvertent actions that often result from an innocent lack of awareness among our board volunteers of what laws exist. This is a proactive, not punitive, helping hand approach to assisting them in governing their communities. There is no penalty for non-compliance, however http://www.caicalif.org http://www.caicalif.org

Table of Contents Feed for the Digital Edition of The Communicator - Volume 1, Issue 1

The Communicator - Volume 1, Issue 1 Contents President’s Message Capitol Recap Complying with California’s Reserve Study and Disclosure Laws The Devil Is in the Details Ask the Experts – Deferred Maintenance HOA Banking, Then and Now 2008 Events & Education Calendar Welcome to CAI BayCen Index to Advertisers

The Communicator - Volume 1, Issue 1

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