BILL NUMBER: AB 569 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY SEPTEMBER 12, 2013
AMENDED IN ASSEMBLY MARCH 18, 2013
INTRODUCED BY Assembly Member Chau
FEBRUARY 20, 2013
An act to amend Sections 53890, 53891, and 53892 of, and
to repeal Sections 12463.3 and 53895.5 of, the Government Code, and
to repeal Sections 33080, 33080.1, 33080.2, 33080.3, 33080.4,
33080.5, 33080.6, and 33080.7 of the Health and Safety Code, relating
to redevelopment. An act to amend Sections 11003.4
and 11013.1 of, and to add Section 11013.6 to, the Business and
Professions Code, and to amend Section 5100 of the Civil Code,
relating to land use.
LEGISLATIVE COUNSEL'S DIGEST
AB 569, as amended, Chau. Redevelopment: reports.
Real property: divided lands.
(1) Existing law exempts a limited-equity housing cooperative or a
workforce housing cooperative trust from provisions of existing law
governing subdivided land transactions that are applicable to stock
cooperatives if the limited-equity housing cooperative or workforce
housing cooperative trust complies with specified conditions.
This bill would revise the conditions for the exemption to, among
other things, require that each party that executes a regulatory
agreement with the cooperative satisfy itself that the rights of the
cooperative members are provided adequate protection, as specified.
By expanding the applicability of a crime, this bill would impose a
state-mandated local program.
(2) Existing law prohibits the sale or lease of lots or parcels
within a subdivision that is subject to a blanket encumbrance unless
the encumbrance includes a specified release clause or certain
conditions are met.
This bill would authorize the sale or lease of an individual
interest in a defined stock cooperative or limited housing
cooperative that is subject to a blanket encumbrance if specified
conditions are met.
(3) The Davis-Stirling Common Interest Development Act establishes
procedures for elections.
This bill would exempt a stock cooperative with bylaws that
provide that all members and shareholders automatically become
directors of the homeowners' association from the procedures
applicable to the election of directors of the homeowners'
association.
(4) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Existing law requires the Controller to compile and publish
annually reports of the financial transactions of each community
redevelopment agency, as provided.
This bill would eliminate that requirement.
Existing law requires the officer of each local agency, who has
charge of the financial records of the agency, to furnish to the
Controller a report of all the financial transactions of the local
agency during the next preceding fiscal year within 90 days of the
close of each fiscal year, as specified. Existing law defines local
agency, for purposes of these financial reports, to mean any city,
county, district, and specified community redevelopment agencies.
This bill would exclude community redevelopment agencies from the
definition of local agency, thereby eliminating the requirement that
a community redevelopment agency furnish the Controller with the
financial report. This bill would make related, conforming changes.
Existing law requires each redevelopment agency to submit the
final report of any audit undertaken by any other local, state, or
federal government entity to its legislative body and to additionally
present an annual report to the legislative body containing
specified information. Existing law requires the Department of
Housing and Community Development to compile and publish reports of
the activities of redevelopment agencies, as provided.
This bill would repeal those provisions, and would repeal related
provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 11003.4 of the
Business and Professions Code is amended to read:
11003.4. (a) A "limited-equity housing cooperative" or a
"workforce housing cooperative trust" is a corporation that meets the
criteria of Section 11003.2 and that also meets the criteria of
Sections 817 and 817.1 of the Civil Code, as applicable. Except as
provided in subdivision (b), a limited-equity housing or workforce
housing cooperative trust shall be subject to all the requirements of
this chapter pertaining to stock cooperatives.
(b) A limited-equity housing cooperative or a workforce housing
cooperative trust shall be exempt from the requirements of this
chapter if the limited-equity housing cooperative or workforce
housing cooperative trust complies with all the following conditions:
(1) The United States Department of Housing and Urban Development,
the United States Department of Agriculture, the National Consumers
Cooperative Bank, the California Housing Finance Agency, the Public
Employees' Retirement System (PERS), the State Teachers' Retirement
System (STRS), the Department of Housing and Community Development,
or the Federal Home Loan Bank System or any of its
member institutions, alone a state or
in any combination with each other, federall
y chartered credit union, a state or with
federally certified community development financial
institution, or the city, county, school district, or
redevelopment agency in which the cooperative is located, alone
or in any combination with each other, directly finances or
subsidizes at least 50 percent of the total construction or
development cost or one hundred thousand dollars ($100,000),
whichever is less; or the real property to be occupied by the
cooperative was sold or leased by the Department of
Transportation, Transportation Agency, other
state agency, a city, a county, or a school district for the
development of the cooperative and has a regulatory agreement
approved by the Department of Housing and Community Development for
the term of the permanent financing, notwithstanding the source of
the permanent subsidy or financing.
(2) No more than 20 percent of the total development cost of a
limited-equity mobilehome park, and no more than 10 percent of the
total development cost of other limited-equity housing cooperatives,
is provided by purchasers of membership shares.
(3) A regulatory agreement that covers the cooperative for a term
of at least as long as the duration of the permanent financing or
subsidy, notwithstanding the source of the permanent subsidy or
financing financing, has been duly
executed between the recipient of the financing and either (A) one of
the federal or state agencies specified in paragraph (1) or (B) a
local public agency that is providing financing for the project under
a regulatory agreement meeting standards of the Department of
Housing and Community Development. The regulatory agreement shall
make provision for at least all of the following:
(A) Assurances for completion of the common areas and facilities
to be owned or leased by the limited-equity housing cooperative,
unless a construction agreement between the same parties contains
written assurances for completion.
(B) Governing instruments for the organization and operation of
the housing cooperative by the members.
(C) The ongoing fiscal management of the project by the
cooperative, including an adequate budget, reserves, and provisions
for maintenance and management.
(D) Distribution of a membership information report to any
prospective purchaser of a membership share, prior to purchase of
that share. The membership information report shall contain full
disclosure of the financial obligations and responsibilities of
cooperative membership, the resale of shares, the financing of the
cooperative including any arrangements made with any partners,
membership share accounts, occupancy restrictions, management
arrangements, and any other information pertinent to the benefits,
risks, and obligations of cooperative ownership.
(4) The federal, state, or local public agency
Each party that executes the regulatory agreement shall
satisfy itself that the bylaws, articles of incorporation, occupancy
agreement, subscription agreement, any lease of the regulated
premises, any arrangement with partners, and arrangement for
membership share accounts provide adequate protection of the rights
of cooperative members.
(5) The federal Each provider of financing
or state agency subsidies shall
receive from the attorney for the recipient of the financing or
subsidy a legal opinion that the cooperative meets the requirements
of Section 817 of the Civil Code and the exemption provided by this
section.
(c) Any limited-equity cooperative, or workforce housing
cooperative trust that meets the requirements for exemption pursuant
to subdivision (b) may elect to be subject to all provisions of this
chapter.
(d) The developer of the cooperative shall notify the
Department Bureau of Real Estate, on a form
provided by the department, bureau,
that an exemption is claimed under this section. The
Department Bureau of Real Estate shall retain
this form for at least four years for statistical purposes.
SEC. 2. Section 11013.1 of the Business
and Professions Code is amended to read:
11013.1. It shall be unlawful, except as provided in Section
11013.2, 11013.2 or 11013.6, for the
owner, subdivider, or agent to sell or lease lots or parcels within a
subdivision that is subject to a blanket encumbrance unless there
exists in such the blanket encumbrance
or other supplementary agreement a provision, hereinafter referred to
as a release clause, which by its terms shall unconditionally
provide that the purchaser or lessee of a lot or parcel can obtain
legal title or other interest contracted for, free and clear of
such the blanket encumbrance, upon
compliance with the terms and conditions of the purchase or lease.
SEC. 3. Section 1 1013.6 is added to
the Business and Professions Code , to read:
11013.6. Notwithstanding Sections 11013.1 and 11013.2, an
individual interest in a stock cooperative, as defined in Section
4190 of the Civil Code, or a limited equity housing cooperative, as
defined in Section 817 of the Civil Code, may be sold or leased
subject to a blanket encumbrance if all of the following conditions
are met:
(a) The notice required pursuant to Section 1133 of the Civil Code
is provided to each prospective purchaser and lessee of the interest
and is included in every purchase and lease contract.
(b) The property subject to the sale or lease has obtained a
public report from the Bureau of Real Estate that accounts for the
blanket encumbrance.
(c) The governing documents for the association require the
association to create within one year of the sale of at least 50
percent of the individual interests in the stock cooperative or
limited-equity housing cooperative and maintain during the term of
the blanket encumbrance a financing reserve amount equal to at least
three months of the amount of the debt service payments due on the
blanket encumbrance or a lesser amount acceptable to the
commissioner.
SEC. 4. Section 5100 of the Civil Code
is amended to read:
5100. (a) Notwithstanding any other law or provision of the
governing documents, elections regarding assessments legally
requiring a vote, election and removal of directors, amendments to
the governing documents, or the grant of exclusive use of common area
pursuant to Section 4600 shall be held by secret ballot in
accordance with the procedures set forth in this article.
(b) This article also governs an election on any topic that is
expressly identified in the operating rules as being governed by this
article.
(c) The provisions of this article apply to both incorporated and
unincorporated associations, notwithstanding any contrary provision
of the governing documents.
(d) The procedures set forth in this article shall apply to votes
cast directly by the membership, but do not apply to votes cast by
delegates or other elected representatives.
(e) In the event of a conflict between this article and the
provisions of the Nonprofit Mutual Benefit Corporation Law (Part 3
(commencing with Section 7110) of Division 2 of Title 1 of the
Corporations Code) relating to elections, the provisions of this
article shall prevail.
(f) Directors shall not be required to be elected pursuant to this
article if the governing documents provide that one member from each
separate interest is a director.
SEC. 5. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
SECTION 1. Section 12463.3 of the Government
Code is repealed.
SEC. 2. Section 53890 of the Government Code is
amended to read:
53890. As used in this article, "local agency" means any city,
county, and any district required to furnish financial reports
pursuant to Section 12463.1.
SEC. 3. Section 53891 of the Government Code is
amended to read:
53891. The officer of each local agency who has charge of the
financial records shall furnish to the Controller a report of all the
financial transactions of the local agency during the next preceding
fiscal year. The report shall be furnished within 90 days after the
close of each fiscal year and shall be in the form required by the
Controller. If the report is filed in electronic format as prescribed
by the Controller, the report shall be furnished within 110 days
after the close of each fiscal year. However, whenever a local agency
files annual financial materials with the Office of Statewide Health
Planning and Development or any successor thereto pursuant to
Section 128735 of the Health and Safety Code, the audited report
shall be furnished within 120 days after the close of each fiscal
year.
The Controller shall prescribe uniform accounting and reporting
procedures that shall be applicable to all local agencies except
cities, counties, and school districts, and except for local agencies
that substantially follow a system of accounting prescribed by the
Public Utilities Commission of the State of California or the Federal
Energy Regulatory Commission. The procedures shall be adopted under
the provisions of Chapter 3.5 (commencing with Section 11340) of Part
1 of Division 3 of Title 2. The Controller shall prescribe the
procedures only after consultation with and approval of a local
governmental advisory committee established pursuant to Section
12463.1. Approval of the procedures shall be by majority vote of the
members present at a meeting of the committee called by the
chairperson thereof.
SEC. 4. Section 53892 of the Government Code is
amended to read:
53892. The report shall state all of the following:
(a) The aggregate amount of taxes levied and assessed against the
taxable property in the local agency, which became due and payable
during the next preceding fiscal year.
(b) The aggregate amount of taxes levied and assessed against this
property collected by or for the local agency during the fiscal
year.
(c) The aggregate income during the preceding fiscal year, a
general statement of the sources of the income, and the amount
received from each source.
(d) The total expenditures made by administrative departments
during the preceding fiscal year, a general statement of the purposes
of the expenditures, and the amounts expended by each department.
(e) The assessed valuation of all of the taxable property in the
local agency as set forth on the assessment roll of the local agency
equalized for the fiscal year, or, if the officers of the county in
which the city or district is situated have collected for the city or
district the general taxes levied by the city or district for the
fiscal year, the assessed valuation of all taxable property in the
city or district as set forth on the assessment rolls for the county
equalized for the fiscal year.
(f) The information required by Section 53892.2, as of the end of
the fiscal year.
(g) The approximate population at the close of the fiscal year and
the population as shown by the last regular federal census.
(h) Other information that the Controller requires.
(i) Any other matters necessary to complete and keep current the
statistical information on assessments, revenues and taxation,
collected and compiled by any Senate or Assembly committee on revenue
and taxation.
(j) In the case of cities, the information required by Section
53892.3.
SEC. 5. Section 53895.5 of the Government Code
is repealed.
SEC. 6. Section 33080 of the Health and Safety
Code is repealed.
SEC. 7. Section 33080.1 of the Health and
Safety Code is repealed.
SEC. 8. Section 33080.2 of the Health and
Safety Code is repealed.
SEC. 9. Section 33080.3 of the Health and
Safety Code is repealed.
SEC. 10. Section 33080.4 of the Health and
Safety Code is repealed.
SEC. 11. Section 33080.5 of the Health and
Safety Code is repealed.
SEC. 12. Section 33080.6 of the Health and
Safety Code is repealed.
SEC. 13. Section 33080.7 of the Health and
Safety Code is repealed.