BILL ANALYSIS Ó AB 1995 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1995 (Levine) As Amended June 30, 2014 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |74-0 |(April 10, |SENATE: |35-0 |(August 7, | | | |2014) | | |2014) | ----------------------------------------------------------------- Original Committee Reference: L. GOV. SUMMARY : Authorizes the Bel Marin Keys Community Services District (District) to enforce covenants, conditions, and restrictions (CC&Rs). The Senate amendments : 1)Authorize the District to enforce all or part of CC&Rs for a tract, and to assume the duties of the architectural control committee (ACC), to the extent that a tract's CC&Rs authorize an ACC. 2)Require, before the District can enforce CC&Rs and assume the duties of an ACC for a tract, the board of directors to: a) Receive a written request from the board of directors of the tract's property owners' association or homeowners' association requesting the District to enforce CC&Rs for that tract and assume the duties of the ACC for that tract, if an ACC is called for in CC&Rs; b) Receive a written request that includes a petition signed by not less than a majority of the property owners of the parcels within the tracts covered by those associations; c) Conduct a public hearing on the question, after giving mailed notice to each affected property owner of the date, time, and location of the meeting; d) Submit an application to the local agency formation commission (LAFCO), pursuant to existing law, specifying the exact nature and scope of the intended services to be provided by the District; AB 1995 Page 2 e) Receive the approval of the LAFCO, pursuant to existing law, which may include completion terms deemed appropriate by the LAFCO to enforce CC&Rs for a tract, and to assume the duties of the ACC for that tract; and, f) Adopt an ordinance assuming the power to enforce CC&Rs for a tract, and to assume the duties of the ACC for that tract, provided that the ordinance requires: i) The property owners within the tract to finance the enforcement of CC&Rs, and the duties of the ACC; and, ii) The tract's property owners' association or homeowners' association to indemnify the District for the costs of any litigation, settlements, injuries, damages, or judgments arising from enforcement of CC&Rs, and the District's duties as the ACC. 3)Allows the District, by ordinance, to divest itself of the power undertaken under this bill. EXISTING LAW establishes the Community Services District Law that authorizes Cameron Park, El Dorado Hills, Mountain House, Rancho Murieta, Salton, Stallion Spring, and the Tenaja Meadows Community Services Districts which enforced CC&Rs prior to January 1, 2006, to continue to enforce CC&Rs. AS PASSED BY THE ASSEMBLY , this bill: 1)Added the District to the list of existing Community Services Districts (CSDs) which enforced CC&Rs prior to January 1, 2006, and are authorized to continue to enforce CC&Rs. 2)Found and declared that a special statute is necessary because of the unique circumstances applicable only to the District. FISCAL EFFECT : None COMMENTS : 1)CC&Rs. CC&Rs are private deed restrictions which impose mutual contractual duties on private owners. Although CC&Rs have the same purpose and often the same effect as zoning ordinances, they are private contracts not government AB 1995 Page 3 regulations. The District states, "The District's CC&Rs allow for the creation of the ACC which serves as a first level of review for development projects in the District. It is tasked with reviewing plans and considering compliance with the more refined district standards found in the CC&Rs. Without the ACC, the [Marin] County will only consider its own development standards, which conflict with the more localized standards in certain circumstances (e.g., setback distances, which are uniquely applied in the community in order to protect the view corridor along the waterways)." 2)Previous legislation. SB 135 (Kehoe), Chapter 249, Statutes of 2005, authorized eight CSDs to continue enforcing private CC&Rs and repealed the practice for all other CSDs as part of the rewrite of the Community Services District Law. The Senate Local Government Committee produced a detailed report (Community, Needs, Community Services: A Legislative History of SB 135 (Kehoe) and the "Community Services District Law," March 2006) following the passage of SB 135 detailing the 19-member working group that reviewed the statute and recommended revisions. The report details that the working group recommended allowing the eight CSDs that enforced CC&Rs at that time to continue enforcing them. The report explained that conversely, a CSD that was authorized to enforce CC&Rs under the 1955 Law, but did not use that power, could not enforce CC&Rs under the new CSD Law put in place by SB 135, including the District and a number of other CSDs. According to the District, from 2005 until 2013, they continued to operate with the same understanding that the first step in the project review process at the ACC was still required. The District is not aware of any instance when an action was brought against an applicant for the enforcement of CC&Rs. However, it wasn't until around June 2013, when a new planner joined the District, that the ACC's pre-approval plan was called into question. That is what caused the District to discover the amendment in SB 135, and to seek assistance from the Legislature in order to regain their authority to enforce CC&Rs. 3)Purpose of the bill. This bill authorizes the District to enforce all or part of CC&Rs for a tract and to assume the duties of the ACC. Prior to establishing enforcement AB 1995 Page 4 authority, the District's board of directors must: a) Receive a written request to enforce CC&Rs with a petition signed by not less than a majority of property owners, b) Conduct a noticed public hearing on the matter, c) Apply and receive approval from the LAFCO, and d) Adopt an ordinance which includes specified information assuming the power to enforce CC&R. This bill is author-sponsored. 4)Bel Marin Keys Community Services District. The District was established in 1961 and covers 633 square miles in the unincorporated community of Bel Marin Keys (Marin County). The District provides a number of services including south levee repairs, flushing of lagoons, shoreline reinforcements, repairing and maintaining boat ramps, Tital Moat improvement, maintaining Dredge material disposal site, maintaining and repairing the community center building, streetlighting, navigational lock maintenance, waterways maintenance, roadway and median and park landscape maintenance, architectural control and open space. According to the District's Web site, "All residences in the District are subject to CC&Rs. Planned for improvements or additions to homes must first be submitted to the District for its review. The Board determines conformance of the plans with the CC&Rs prior to their submission by the homeowner to the County for a permit." 5)Arguments in support. Supporters argue that this bill provides the District with the local control to allow enforcement and avoid the erosion of the community's character through CC&R violations. 6)Arguments in opposition. None on file. Analysis Prepared by : Misa Yokoi-Shelton / L. GOV. / (916) 319-3958 AB 1995 Page 5 FN: 0004177