BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1838|
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THIRD READING
Bill No: AB 1838
Author: Charles Calderon (D)
Amended: 8/7/12 in Senate
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 9-0, 6/26/12
AYES: DeSaulnier, Gaines, Harman, Kehoe, Lowenthal,
Pavley, Rubio, Simitian, Wyland
SENATE JUDICIARY COMMITTEE : 4-0, 7/3/12
AYES: Evans, Blakeslee, Corbett, Leno
NO VOTE RECORDED: Harman
ASSEMBLY FLOOR : 74-1, 5/17/12 - See last page for vote
SUBJECT : Common interest developments: association
records
SOURCE : Author
DIGEST : This bill prohibits a common interest
development (CID) from charging a cancellation fee related
to the provision of sale-related documents in specified
situations, and requires a CID refund any fee related to
the sale-related documents, as specified.
ANALYSIS : A CID is a form of real estate in which each
homeowner has an exclusive interest in a unit or lot and a
shared or undivided interest in common area property.
Condominiums, planned unit developments, stock
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cooperatives, community apartments, and many resident-owned
mobilehome parks all fall under the umbrella of common
interest developments. A homeowners' association with an
elected board of directors governs each CID. The
Davis-Stirling Common Interest Development Act provides the
legal framework under which common interest developments
are established and operate.
Existing law requires the seller of a unit in a CID to
provide a prospective purchaser with various documents
related to the CID, including:
The CID's governing documents.
A statement regarding any age restrictions in the CID.
The CID's most recent budget, financial audit, reserve
funding plan, and insurance summary.
The amount of the CID's current regular and special
assessments and fees, as well as any unpaid assessments,
fees, or fines related to the unit.
Notice of any change in the CID's current regular and
special assessments and fees that the board has approved
but which have not yet become due.
A summary of any pending rule violations related to the
unit.
The preliminary list of any construction defects that is
the subject of potential or actual litigation against the
developer and, if applicable, a summary of any
settlement.
A statement, if applicable, describing any provision in
the governing documents that prohibits the rental or
leasing of a unit.
If requested by the purchaser, a copy of the minutes of
the association's meetings conducted over the previous 12
months.
Because the CID, rather than the unit owner, maintains
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these documents, existing law requires the CID to provide
the selling owner with a copy of these documents within ten
days of a request. The CID may collect a reasonable fee
based upon its actual cost to procure, prepare, reproduce,
and deliver the documents. In addition, upon request, the
CID must provide on a specified form a written estimate of
fees for the provision of these documents.
This bill:
1. Prohibits a CID from charging of a cancellation fee
related to the provision of sale-related documents if
either of the following applies:
A. The request was cancelled in writing by the same
party that placed the order and work had not yet
been performed on the order; and
B. The request was cancelled in writing and any
work that had been performed on the order was
compensated.
2. Requires a CID refund all fees collected related to the
provision of sale-related documents if the request was
canceled in writing and the work has not yet been
performed on the order. If work has been performed on
the order, a refund of the share of the fee that
represents the portion of the work not performed.
3. Requires the statutory billing disclosure to be in at
least 10-point font.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 8/7/12)
Associa
California Association of Realtors
Community Associations Institute
Executive Council of Homeowners
ASSEMBLY FLOOR : 74-1, 5/17/12
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AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fong, Fuentes, Furutani, Beth
Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell, Grove,
Hagman, Halderman, Hall, Hayashi, Roger Hernández, Hill,
Huber, Hueso, Huffman, Jeffries, Jones, Knight, Lara,
Logue, Ma, Mansoor, Mendoza, Miller, Mitchell, Monning,
Morrell, Nestande, Nielsen, Norby, Olsen, Pan, V. Manuel
Pérez, Portantino, Silva, Smyth, Solorio, Swanson,
Torres, Valadao, Wagner, Wieckowski, Williams, John A.
Pérez
NOES: Harkey
NO VOTE RECORDED: Fletcher, Bonnie Lowenthal, Perea,
Skinner, Yamada
JJA:d 8/8/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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