BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 2104
                                                                  Page  1

          AB 2104 (Gonzalez)
          As Amended  August 12, 2014
          Majority vote
          |ASSEMBLY:  |75-2 |(April 3, 2014) |SENATE: |34-0 |(August 14,    |
          |           |     |                |        |     |2014)          |
           Original Committee Reference:    H. & C.D.  

           SUMMARY  :  Specifies that architectural or landscaping guidelines  
          or policies of a common interest development (CID) are void if  
          they prohibit the use of low water-using plants and other water  
          conservation measures.

           The Senate amendments  :

          1)Add a coauthor. 

          2)Incorporate changes to law made by AB 2100 (Campos), Chapter  
            164, Statutes of 2014.  

           FISCAL EFFECT  :  None 
          COMMENTS  :  

          Background:  There are over 49,000 CIDs in the state that range  
          in size from three to 27,000 units.  CIDs make up over 4.9  
          million housing units which represents approximately one quarter  
          of the state's housing stock.  CIDs include condominiums,  
          community apartment projects, housing cooperatives, and planned  
          unit developments.  They are characterized by a separate  
          ownership of dwelling space coupled with an undivided interest  
          in a common property, covenants and conditions that limit the  
          use of common area, separate ownership interests, the management  
          of common property, and enforcement of restrictions by a  
          homeowners association (HOA).  CIDs are governed by the  
          Davis-Stirling Act as well as the governing documents of the HOA  
          including bylaws, declaration, and operating rules.  Existing  
          law provides protections to homeowners who wish to install  
          landscaping that includes low water-using plants. 

          Under existing law the governing documents of a CID cannot  


                                                                  AB 2104
                                                                  Page  2

          prohibit a homeowner from installing low water-using plants as a  
          group.  In addition, CIDs cannot prevent a homeowner from  
          installing landscaping that complies with a city's or county's  
          water-efficient landscape ordinance or from complying with any  
          restrictions on watering that a city or county adopts in  
          response to severe water shortages. 

          The board of directors and homeowners of an HOA rely upon the  
          governing documents which provide the rules and regulations for  
          governing the HOA.  State statute defines the governing  
          documents to include the articles of incorporation and  
          declaration as well as the operating rules.  The operating rules  
          should include guidance to homeowners on which low water-using  
          plants they can use to replace existing turf and, by state law,  
          cannot prohibit a homeowner from installing low water-using  
          plants.  State statute specifies that an HOA can apply  
          landscaping rules established in the governing documents to the  
          extent that the rules do not prohibit a homeowner from  
          installing low water-using plants or complying with local  
          water-saving ordinances.  
          To the extent this is unclear or that the operating rules have  
          not been updated to reflect state law, this bill would clarify  
          that any architectural guidelines or policies cannot prohibit a  
          homeowner from installing low water-using plants or replacing  
          existing turf, installing a water-efficient landscape that meets  
          a local ordinance, or complying with water conservation policies  
          adopted by a local government agency.  

          Analysis Prepared by  :    Lisa Engel / H. & C.D. / (916) 319-2085  

                                                               FN: 0004827