November 17, 2005 Teleconference
As of January 1, 2006, Senate Bill 137 takes effect and the civil code sections regarding assessment collection drastically alter the collection process. In addition, the new law will prohibit associations from foreclosing on an assessment lien unless the amount of assessments owed (not including costs or interest) is $1,800 or one year of delinquency has passed on any unpaid assessments.
Our attorneys have been diligently researching and deciphering every aspect of this new law. As a courtesy, SwedelsonGottlieb/Association Lien Services will be hosting a teleconference on Thursday, November 17, 2005, at 10:00 a.m., to explain new civil code changes. There will be time at the end of the conference for questions to be answered. Just prior to the audio conference call seminar we will send you, via email, an outline and timetable or you can download a copy at https://www.hoalawblog.com. If you cannot call in at the scheduled time, you will have the option of calling in later (within 24 hours from the scheduled call time) and listen to a recording of the conference call, questions asked and answers to questions.
To participate in our teleconference, please contact Jennie Swanson, (310) 207-2207 ext. 210 or jennie@sghoalaw.com, to receive the call-in number and password. An article on the new law is currently accessible on our blog site, https://www.hoalawblog.com, we recommend reviewing it prior to the teleconference to help formulate any questions you may want to ask.
2004 Annual Disclosure Checklist
That’s right, it’s budget time again.
Community managers and Board members are hard at work preparing their associations’ budgets and other required disclosure documents. As we do each year, Swedelson & Gottlieb is providing you with our 2004 Annual Disclosure Checklist.
The Checklist is in Adobe Acrobat PDF document format and can be downloaded by clicking on the following link. Download 2004ADC.pdf
What Is The Davis-Stirling Common Interest Development Act
The California State Legislature has passed many code sections or statutory laws that govern the formation and operation of condominium and homeowner associations. The Davis-Stirling Common Interest Development Act (Civil Code §§ 1350-1378) was first made law in 1986 and was intended to bring together in one area of the Civil Code the most important statutory laws regulating California community associations. The Act has been amended more than 45 times since enacted. These important code sections are set out below with explanations and articles.
Civil Code § 1367.6 – Payment of Assessments Under Protest; Small Claims Option.
(a) If a dispute exists between the owner of a separate interest and the association, including, but not limited to, 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 stated in Sections 116.220 and 116.221 of the Code of Civil Procedure, the owner of a separate interest may, in addition to pursuing dispute resolution pursuant to Article 5 (commencing with Section 1363.810) of Chapter 4, pay under protest the disputed amount and all other amounts levied, including any fees and reasonable costs of collection, reasonable attorney’s fees, late charges, and interest, if any, pursuant to subdivision (e) of Section 1366, and commence an action in small claims court pursuant to Chapter 5.5 (commencing with Section 116.110) of Title 1 of the Code of Civil Procedure.
(b) Nothing in this section shall impede an association’s ability to collect delinquent assessments as provided in Sections 1367.1 and 1367.4.
Civil Code §1363.840 – Statutory Dispute Resolution Procedure.
(a) This section applies in an association that does not otherwise provide a fair, reasonable, and expeditious dispute resolution procedure. The procedure provided in this section is fair, reasonable, and expeditious, within the meaning of this article.
(b) Either party to a dispute within the scope of this article may invoke the following procedure:
(1) The party may request the other party to meet and confer in an effort to resolve the dispute. The request shall be in writing.
Civil Code § 1363.1 – Prospective Managing Agent Disclosure.
(a) A prospective managing agent of a common interest development shall provide a written statement to the board of directors of the association of a common interest development as soon as practicable, but in no event more than 90 days, before entering into a management agreement which shall contain all of the following information concerning the managing agent:
(1) The names and business addresses of the owners or general partners of the managing agent. If the managing agent is a corporation, the written statement shall include the names and business addresses of the directors and officers and shareholders holding greater than 10 percent of the shares of the corporation.
(2) Whether or not any relevant licenses such as architectural design, construction, engineering, real estate, or accounting have been issued by this state and are currently held by the persons specified in paragraph (1). If a license is currently held by any of those persons, the statement shall contain the following information:
Governor Arnold Schwarzenegger Vetoes AB 2598
We are very pleased to advise you that all of our efforts were successful and the Governor vetoed AB 2598, the assessment collection bill. We agree with the Governor’s reasons for the veto. His letter to the legislators is presented below. His reasons for his veto show he listened to what we had to say. We are willing to work on compromise legislation that may help eliminate some of the problems the proponents of this legislation expressed as their motivations for this legislation while at the same time preserving the non-judicial foreclosure process. We thank all of those who worked to defeat this bill and took the time to express their opposition to the legislature and the Governor.
Letter Sent By Schwarzenegger To California State Assembly
To the Members of the California State Assembly: