The Glen Gazette

One Glen Lake Drive, Pacific Grove, CA 93950

President: Candy Pollock

Vice-President: Jack Rutherford

Secretary: Glen Grossman

Treasurer: Jim Ray

At-Large Director: Jack Rugar

Newsletter: Glen Grossman

Ron Johnson

Sandy Claus

Jessa Lee Lapatra

Gardening: Pat Claus

Carol Rutherford

Welcoming: Edith Davis

Stephanie Lee

Craig Woolley

Joseph Chaffers (MCC)

AB 2417, La Suer. Common interest developments: meetings.

Existing law, the Davis-Stirling Common Interest Development Act, defines and regulates common interest developments and provides that any member of the association may attend meetings of the board of directors of the association, except when the board adjourns to executive session to consider specified matters. Existing law requires matters discussed in executive session to be generally noted in the minutes of the board of directors. This bill would require that matters discussed in executive session be noted in the minutes of the immediately following meeting open to the entire membership.

AB 2546, Nation. Common interest developments: marketing and sales.

Existing law, the Davis-Stirling Common Interest Development Act, requires that a common interest development be managed by an association, as defined. This bill would provide that any rule or regulation of an association that arbitrarily or unreasonably restricts an owner's ability to market, as defined, his or her interest in a common interest development is void. The bill would also prohibit an association from adopting, enforcing, or otherwise imposing any rule or regulation that: (1) imposes an assessment or fee in connection with the marketing of an owner's interest in the common interest development in an amount that exceeds the association's actual or direct costs; or (2) establishes an exclusive relationship with a real estate broker through which the sale or marketing of interests in the development is required to occur, except for sales and marketing by the association, as specified. The bill would include a specified exception from these provisions.

AB 2776, Simitian. Aviation: noise.

(1) Existing law requires any person who intends to offer subdivided lands within California for sale or lease to file with the Department of Real Estate an application for a public report consisting of a notice of intention and a completed questionnaire that includes, among other things, the location of all existing airports, and of all proposed airports shown on the general plan of any city or county, located within 2 statute miles of the subdivision. Existing law requires that a copy of the public report of the Real Estate Commissioner, when issued, be given to the prospective purchaser by the owner, subdivider, or agent prior to the execution of a binding contract or agreement for the sale or lease of any lot or parcel in a subdivision or upon request by any member of the public.    This bill would require the notice of intention filed with the application for a public report, to include a statement regarding whether the property is encompassed within an airport influence area, as defined.

(2) The Davis-Stirling Common Interest Development Act regulates common interest developments and defines the declarations and other governing documents that govern the operation of common interest developments and the associations that manage common interest developments. A declaration is required to contain specified information. Existing law provides that an owner of a separate interest in a common interest development must provide certain items to a prospective purchaser prior to transfer of title, including, among other things, a copy of the governing documents of the common interest development. This bill would require that any declaration, recorded after January 1, 2004, contain a statement regarding whether the property is encompassed within an airport influence area.

(3) Existing law requires a seller of residential property, to make disclosures upon the transfer of that property, and sets forth the content and form of these disclosures in a Real Estate Transfer Disclosure Statement and a Natural Hazard Disclosure Statement. Existing law requires certain sellers of residential real property who have actual knowledge that the property is affected by or zoned to permit certain manufacturing, commercial, or airport uses to give written notice of that knowledge, as soon as practicable before transfer of title. Existing law requires the disclosure statement to advise a purchaser that other reports and disclosures, such as an inspection report, have or will be made in connection with the transfer. This bill would revise the Real Estate Transfer Disclosure Statement to require that statement to advise the prospective purchaser of other disclosures required by law, including the Natural Hazard Disclosure Report/Statement that may include airport annoyances, earthquake, fire, flood, or special assessment information, that have or will be made in connection with the transfer.

(4) Existing law limits the liability of a transferor for failing to disclose natural hazards if the transferor obtains a report or opinion prepared by a licensed engineer, land surveyor, geologist, or expert in natural hazard discovery dealing with matters within the scope of the professional's license or expertise. The bill would condition this limitation upon the expert in natural hazard discovery determining whether the property is within an airport influence area and if so, providing notice with the report or opinion. This bill would provide that its provisions will become operative on January 1, 2004.

AB 555, Dutra. Common interest development managers.

(1) Existing law, the Davis-Stirling Common Interest Development Act, establishes a scheme for the regulation of common interest developments. This bill would require a person, in order to be called a "certified common interest development manager" to have either passed an examination or achieved certification designated by a professional association for community association managers within the previous 5 years and to have satisfied other specified educational requirements. The bill would also require a person who provides or contemplates providing management services to a community association to disclose to that association whether that person is a certified common interest development manager. The bill would also make it an unfair business practice for a common interest development manager and certain other persons, to use the title of "certified common interest development manager" without meeting specified requirements, or to state or advertise that he or she is certified or licensed by a governmental agency to act as certified common interest development manager. The bill would provide that the above provisions would remain in effect only until January 1, 2008, unless extended.

(2) Existing law requires applicants for the real estate broker license examination and applicants for a real estate license renewal to meet certain education requirements. This bill would include on July 1, 2004, in those requirements education in the subject of California law relating to common interest developments. The bill would also provide on July 1, 2003, that successful completion of coursework for renewal of a real estate license requires an applicant to demonstrate that he or she has passed a final examination.

(3) Existing law requires the articles of incorporation of common interest development associations to include specified information, including a statement that identifies the name and address of the association's managing agent, if any. This bill would additionally require the articles of incorporation of a common interest development to state whether the association's managing agent is certified. The bill would further require a common interest development association to distribute to its members a summary of its fidelity insurance policies within 60 days preceding the start of the association's fiscal year.

AB 643, Lowenthal. Common interest developments: community association assessments.

(1) Existing law requires a common interest development association's articles of incorporation filed with the Secretary of State on or after January 1, 1995, to include a statement of information identifying the corporation as a common interest development, specified information about the corporate office, and specified information about the association's managing agent. Existing law further requires that the statement of principal business activity in the annual statement filed by an incorporated association with the Secretary of State also include this information. This bill would require a common interest development association, whether incorporated or unincorporated, to submit to the Secretary of State, on a form and for a fee not to exceed $30 to be prescribed by that office, information regarding the common interest development. The fee would be deposited in the Secretary of State's Business Fees Fund, as specified. Among other things, and in addition to the information described above, this information would include the address and either the daytime telephone number or the e-mail address of the president of the association, specified information about the location of the common interest development, and the number of separate interests in the development. The bill would require this information to be submitted according to specified criteria and within certain timeframes. The bill would limit access to specified information concerning the directors of the association, making it available only for governmental purposes and to members of the Legislature and the Business, Transportation and Housing Agency. The bill would provide for the suspension of the unincorporated association's rights, privileges, and powers as a corporation and would subject it to monetary penalties for failure to comply with those provisions. The bill would also make related changes.

(2) Existing law requires an owner of a separate interest, as specified, to provide the prospective purchaser with a copy of the governing documents of the common interest development. This bill would additionally require an owner to provide the purchaser with a statement from an authorized representative of the common interest development's association indicating if the association is not incorporated, as specified.

(3) This bill would incorporate additional changes in Section 1368 of the Civil Code proposed by AB 2289, to be operative if AB 2289 and this bill become effective on or before January 1, 2003, and this bill is enacted last.