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NEW LAWS AFFECTING HOMEOWNER ASSOCIATIONS
IN 2009
Following are some brief summaries of new
laws relating to homeowner associations of which
associations and their managers should be aware. Some
of these laws went into effect in 2008, and others will
become effective in 2009.
SB 1511 (Ducheny): Notice of Foreclosure
Sale
Amends Civil Code § 2924b to
permit a homeowners association to file a request with
the county recorder for a copy of any trustee’s deed
issued upon a foreclosure sale of a unit or lot
described in the notice. A copy of the trustee’s deed
must be mailed to the association within 15 days after
it is recorded. Filing such a request will allow an
association to immediately be informed in the event a
lot or unit is sold in foreclosure and also to learn the
identity of the purchaser at the foreclosure sale, so
that correspondence and notices relating to maintenance
issues, delinquent assessments, etc. can be communicated
to the new owner.
AB 2846 (Feuer): Assessment Disputes
Adds Civil Code §1367.6 to
provide that if a dispute exists between the owner of a
separate interest (unit or lot) and the association
regarding any disputed sum or charge levied by the
association, including an assessment, fine, penalty,
late fee, collection cost, or monetary penalty imposed
as a disciplinary measure, and the amount in dispute
does not exceed the jurisdictional limits of the small
claims court, the owner may pay the amount under protest
and bring an action in small claims court to recover
it. Changes are also made to the annual disclosure
regarding assessments and foreclosure required by Civil
Code §1365.1. (See our web page, Angius-Terry.com,
for the revised disclosure form.)
AB 1892 (Smyth): Restrictions on Solar
Energy Systems
Amends Civil Code §714. Prohibits any
restriction in a governing document (CC&Rs, Bylaws,
Articles or Rules) which prohibits or restricts the
installation or use of a solar energy system.
"Reasonable restrictions" are permitted. Reasonable
restrictions are those "that do not significantly
increase the cost of the system or significantly
decrease its efficiency or specified performance, or
that allow for an alternative system of comparable cost,
efficiency, and energy conservation benefits." A "solar
energy system" is a system or device whose primary
purpose is to provide for the collection, storage, and
distribution of solar energy for space heating, space
cooling, electric generation, or water heating. Solar
energy systems are required to meet certain minimum
requirements.
AB 2180 (Lieu): Association Approval of
Solar Energy Systems
Also amends Civil Code §714. Requires
that any application for approval of a solar energy
system must be processed by the board or architectural
committee in the same manner as an application for an
architectural modification to the property. The
approval or denial of the application must be in
writing. If the application is not denied in writing
within 60 days, it is deemed approved.
Civil Code Section 1365(b): Annual
Distribution of Reserve Funding Plan
Civil Code 1365.5 was amended in 2007 to
require each association board to prepare a reserve
funding plan detailing how funds will be obtained for
repair or replacement of major components within the
development. Commencing January 1, 2009, a summary of
the reserve funding plan must be distributed to the
members annually.
Virginia Graeme Baker Pool and Spa Safety
Act, 15 USC 8001 et seq.
This federal law requires all public
pools and spas to be equipped with anti-entrapment
devices or systems which comply with industry standards
to reduce the possibility of children being held
underwater by drain suction or otherwise entrapped by
the drain cover or drain system of a swimming pool or
spa. Under the act, "public pools and spas" include
those pools and spas open exclusively to "residents of a
multi-unit apartment building, apartment complex,
residential real estate development, or other
multi-family residential area". The requirement for
such equipment became effective on December 18, 2008.
If they have not already done so, associations with
pools or spas should immediately consult with their
licensed pool or spa contractor to determine if
modifications to their system are necessary to comply
with the law.
Local Fire Code Requirements Regarding
Use of Barbecues
In 2007, California adopted portions of
the 2006 International Fire Code as part of the
California Fire Code. As a result, the California Fire
Code now includes prohibitions on the use of charcoal
burners or other open-flame cooking devices and the use
of Liquefied Petroleum Gas (LPG) burners having an LPG
container with a water capacity greater than two and
one-half pounds on combustible balconies or within ten
feet of combustible construction. Combustible materials
include wood or vinyl siding, wood decking and fabric
awnings. These prohibitions do not apply to single and
two-family dwellings. Also, charcoal burners and other
open-flame cooking devices (but not LPG burners) may be
used where buildings, balconies and decks are protected
by an automatic sprinkler system. The state law permits
local jurisdictions (cities, counties and fire
protection districts) to "opt out" of these requirements
by adopting an amended version of the fire code without
such prohibitions. However, it appears that most
jurisdictions within the Bay Area have not opted out.
Associations should check with their local fire
department to determine if they are subject to these
restrictions. This particular law will probably have
no effect on association operations, but boards may wish
to review their operating rules to assure they are
consistent with the new law and also notify their
residents of the restrictions.
2008 also saw the adoption of new
regulations relating to playground safety and
environmental standards which may have some impact on
homeowner associations. These matters will be the
subject of another article.
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