Amended in Assembly June 25, 2013

Amended in Assembly June 11, 2013

Amended in Senate April 15, 2013

Senate BillNo. 745


Introduced by Committee on Transportation and Housing (Senators DeSaulnier (Chair), Beall, Cannella, Gaines, Galgiani, Hueso, Lara, Liu, Pavley, Roth, and Wyland)

February 22, 2013


An act to amend Sections 1101.5, 1941.4, 2924b, 4005, 4035, 4070, 4090, 4205, 4290, 4350,4525, 4528, 4530, and 4920 of, and to repeal Sections 1363.05, 1368, and 1368.2 of, the Civil Code, to amend Sections 12191 and 65582 of, and to repeal Section 65585.2 of, the Government Code, and to amend Sections 13114 and 50675.14 of the Health and Safety Code, relating to housing.

LEGISLATIVE COUNSEL’S DIGEST

SB 745, as amended, Committee on Transportation and Housing. Housing.

(1) Existing law requires on and after January 1, 2014, replacement of noncompliant plumbing fixtures in multifamily residential real property and commercial real property, as specified.

This bill would make a technical nonsubstantive change.

(2) Existing law, the Davis-Sterling Common Interest Development Act defines and regulates common interest developments. Operative January 1, 2014, the act will be reorganized and recodified.

This bill would repeal provisions of the act that are superseded by the reorganization and recodification of the act. The bill would make other conforming changes, would authorize an action that is required to be approved by a majority of a quorum of the members at a duly held meeting at which a quorum is present to, instead, be approved by a majority in a duly held election in which a quorum is represented, would revise provisions governing inconsistencies between the governing documents and the law and other inconsistencies to instead apply to conflicts, would authorize delivery of documents to the homeowner’s association by specified types of mail delivery, would revise requirements for a board teleconference and the form for billing disclosures, and would prohibit cancellation fees for requests for documents, as specified.

(3) Existing law requires the lessor of a building intended for residential occupation to ensure that the inside telephone wiring meets the applicable standards of the most recent National Electrical Code.

This bill would replace the reference to the National Electrical Code with the California Electrical Code.

(4) Existing law requires the State Fire Marshal to adopt regulations to control the quality and installation of fire alarm systems and devices, and prohibits the marketing, distribution, or sale of any fire alarm system or device that has not been approved by the State Fire Marshal.

Existing law, commencing January 1, 2014, requires a smoke alarm to meet prescribed requirements, including, but not limited to, the requirement that it incorporate an end-of-life feature that provides notice that the device needs to be replaced and that it, if battery operated, contain a nonreplaceable, nonremovable battery capable of powering the smoke alarm at least 10 years in order for the smoke alarm to be approved by the State Fire Marshal. Existing law authorizes the State Fire Marshal to suspend enforcement of this requirement for a period not to exceed 6 months.

This billbegin delete would, commencing July 1, 2014, recast those provisions to, instead, requireend deletebegin insert would recast those provisions to, instead, require commencing July 1, 2014,end insert a smoke alarm that is only battery operated to contain a nonreplaceable, nonremovable battery capable of powering the smoke alarm for at least 10 years in order to be approved by the State Fire Marshal. The bill would also require, commencing January 1, 2015, a smoke alarm to display the manufacture date, provide a place to write the date of installation on the device, and incorporate a hush feature in order for the State Fire Marshal to approve it. The bill would delete the authority for the State Fire Marshal to suspend enforcement of these requirementsbegin insert, and would authorize the State Fire Marshal to adopt exceptions through its regulatory processend insert.

(5) This bill would delete an obsolete provision related to eligibility for funding under the Housing and Emergency Shelter Trust Fund Act of 2002.

begin insert

(6) This bill would incorporate additional changes to Section 2924b of the Civil Code proposed by Senate Bill 752 that would become operative if this bill and Senate Bill 752 are enacted and this bill is enacted last.

end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P3    1

SECTION 1.  

Section 1101.5 of the Civil Code is amended to
2read:

3

1101.5.  

(a) On or before January 1, 2019, all noncompliant
4plumbing fixtures in any multifamily residential real property and
5in any commercial real property shall be replaced with
6water-conserving plumbing fixtures.

7(b) An owner or the owner’s agent may enter the owner’s
8property for the purpose of installing, repairing, testing, and
9maintaining water-conserving plumbing fixtures required by this
10section, consistent with notice requirements of Section 1954.

11(c) On and after January 1, 2019, the water-conserving plumbing
12fixtures required by this section shall be operating at the
13manufacturer’s rated water consumption at the time that the tenant
14takes possession. A tenant shall be responsible for notifying the
15owner or owner’s agent if the tenant becomes aware that a
16water-conserving plumbing fixture within his or her unit is not
17operating at the manufacturer’s rated water consumption. The
18owner or owner’s agent shall correct an inoperability in a
19water-conserving plumbing fixture upon notice by the tenant or if
20detected by the owner or the owner’s agent.

21(d) (1) On and after January 1, 2014, all noncompliant plumbing
22fixtures in any multifamily residential real property and any
23commercial real property shall be replaced with water-conserving
24plumbing fixtures in the following circumstances:

25(A) For building additions in which the sum of concurrent
26building permits by the same permit applicant would increase the
27floor area of the space in a building by more than 10 percent, the
P4    1building permit applicant shall replace all noncompliant plumbing
2fixtures in the building.

3(B) For building alterations or improvements in which the total
4construction cost estimated in the building permit is greater than
5one hundred fifty thousand dollars ($150,000), the building permit
6applicant shall replace all noncompliant plumbing fixtures that
7service the specific area of the improvement.

8(C) Notwithstanding subparagraph (A) or (B), for any alterations
9or improvements to a room in a building that require a building
10permit and that room contains any noncompliant plumbing fixtures,
11the building permit applicant shall replace all noncompliant
12plumbing fixtures in that room.

13(2) Replacement of all noncompliant plumbing fixtures with
14water-conserving plumbing fixtures, as described in paragraph (1),
15 shall be a condition for issuance of a certificate of final completion
16and occupancy or final permit approval by the local building
17department.

18(e) On and after January 1, 2019, a seller or transferor of
19multifamily residential real property or of commercial real property
20shall disclose to the prospective purchaser or transferee, in writing,
21the requirements of subdivision (a) and whether the property
22includes any noncompliant plumbing fixtures. This disclosure may
23be included in other transactional documents.

24

SEC. 2.  

Section 1363.05 of the Civil Code is repealed.

25

SEC. 3.  

Section 1368 of the Civil Code is repealed.

26

SEC. 4.  

Section 1368.2 of the Civil Code is repealed.

27

SEC. 5.  

Section 1941.4 of the Civil Code is amended to read:

28

1941.4.  

The lessor of a building intended for the residential
29occupation of human beings shall be responsible for installing at
30least one usable telephone jack and for placing and maintaining
31the inside telephone wiring in good working order, shall ensure
32that the inside telephone wiring meets the applicable standards of
33the most recent California Electrical Code, and shall make any
34required repairs. The lessor shall not restrict or interfere with access
35by the telephone utility to its telephone network facilities up to the
36demarcation point separating the inside wiring.

37“Inside telephone wiring” for purposes of this section, means
38that portion of the telephone wire that connects the telephone
39equipment at the customer’s premises to the telephone network at
P5    1a demarcation point determined by the telephone corporation in
2accordance with orders of the Public Utilities Commission.

3

SEC. 6.  

Section 2924b of the Civil Code is amended to read:

4

2924b.  

(a)Any person desiring a copy of any notice of default
5
and of any notice of sale under any deed of trust or mortgage with
6
power of sale upon real property or an estate for years therein, as
7
to which deed of trust or mortgage the power of sale cannot be
8
exercised until these notices are given for the time and in the
9
manner provided in Section 2924 may, at any time subsequent to
10
recordation of the deed of trust or mortgage and prior to recordation
11
of notice of default thereunder, cause to be filed for record in the
12
office of the recorder of any county in which any part or parcel of
13
the real property is situated, a duly acknowledged request for a
14
copy of the notice of default and of sale. This request shall be
15
signed and acknowledged by the person making the request,
16
specifying the name and address of the person to whom the notice
17
is to be mailed, shall identify the deed of trust or mortgage by
18
stating the names of the parties thereto, the date of recordation
19
thereof, and the book and page where the deed of trust or mortgage
20
is recorded or the recorder’s number, and shall be in substantially
21
the following form:
22

 

 “In accordance with Section 2924b, Civil Code, request is hereby
made that a copy of any notice of default and a copy of any notice of sale
under the deed of trust (or mortgage) recorded ______, ____, in Book
_____ page ____ records of ____ County, (or filed for record with
recorder’s serial number ____, _______  County) California, executed
by ____ as trustor (or mortgagor) in which ________ is named as
beneficiary (or mortgagee) and ______________ as trustee be mailed to

    at  

   .

Name

Address

NOTICE:  A copy of any notice of default and of any notice of sale will be
sent only to the address contained in this recorded request. If your address changes, a new request must be recorded.

   

Signature    

P5   36

 

37Upon the filing for record of the request, the recorder shall index
38in the general index of grantors the names of the trustors (or
39begin delete mortgagor)end deletebegin insert mortgagors)end insert recited therein and the names of persons
40requesting copies.

P6    1(b) The mortgagee, trustee, or other person authorized to record
2the notice of default or the notice of sale shall do each of the
3following:

4(1) Within 10 business days following recordation of the notice
5of default, deposit or cause to be deposited in the United States
6mail an envelope, sent by registered or certified mail with postage
7prepaid, containing a copy of the notice with the recording date
8shown thereon, addressed to each person whose name and address
9are set forth in a duly recorded request therefor, directed to the
10address designated in the request and to each trustor or mortgagor
11at his or her last known address if different than the address
12specified in the deed of trust or mortgage with power of sale.

13(2) At least 20 days before the date of sale, deposit or cause to
14be deposited in the United States mail an envelope, sent by
15registered or certified mail with postage prepaid, containing a copy
16of the notice of the time and place of sale, addressed to each person
17whose name and address are set forth in a duly recorded request
18therefor, directed to the address designated in the request and to
19each trustor or mortgagor at his or her last known address if
20different than the address specified in the deed of trust or mortgage
21with power of sale.

22(3) As used in paragraphs (1) and (2), the “last known address”
23of each trustor or mortgagor means the last business or residence
24physical address actually known by the mortgagee, beneficiary,
25trustee, or other person authorized to record the notice of default.
26For the purposes of this subdivision, an address is “actually known”
27if it is contained in the original deed of trust or mortgage, or in
28any subsequent written notification of a change of physical address
29from the trustor or mortgagor pursuant to the deed of trust or
30mortgage. For the purposes of this subdivision, “physical address”
31does not include an email or any form of electronic address for a
32trustor or mortgagor. The beneficiary shall inform the trustee of
33the trustor’s last address actually known by the beneficiary.
34However, the trustee shall incur no liability for failing to send any
35notice to the last address unless the trustee has actual knowledge
36of it.

37(4) A “person authorized to record the notice of default or the
38notice of sale” shall include an agent for the mortgagee or
39beneficiary, an agent of the named trustee, any person designated
P7    1in an executed substitution of trustee, or an agent of that substituted
2trustee.

3(c) The mortgagee, trustee, or other person authorized to record
4the notice of default or the notice of sale shall do the following:

5(1) Within one month following recordation of the notice of
6default, deposit or cause to be deposited in the United States mail
7an envelope, sent by registered or certified mail with postage
8prepaid, containing a copy of the notice with the recording date
9shown thereon, addressed to each person set forth in paragraph
10(2), provided that the estate or interest of any person entitled to
11receive notice under this subdivision is acquired by an instrument
12sufficient to impart constructive notice of the estate or interest in
13the land or portion thereof that is subject to the deed of trust or
14mortgage being foreclosed, and provided the instrument is recorded
15in the office of the county recorder so as to impart that constructive
16notice prior to the recording date of the notice of default and
17provided the instrument as so recorded sets forth a mailing address
18that the county recorder shall use, as instructed within the
19instrument, for the return of the instrument after recording, and
20which address shall be the address used for the purposes of mailing
21notices herein.

22(2) The persons to whom notice shall be mailed under this
23subdivision are:

24(A) The successor in interest, as of the recording date of the
25notice of default, of the estate or interest or any portion thereof of
26the trustor or mortgagor of the deed of trust or mortgage being
27foreclosed.

28(B) The beneficiary or mortgagee of any deed of trust or
29mortgage recorded subsequent to the deed of trust or mortgage
30being foreclosed, or recorded prior to or concurrently with the
31deed of trust or mortgage being foreclosed but subject to a recorded
32agreement or a recorded statement of subordination to the deed of
33trust or mortgage being foreclosed.

34(C) The assignee of any interest of the beneficiary or mortgagee
35described in subparagraph (B), as of the recording date of the notice
36of default.

37(D) The vendee of any contract of sale, or the lessee of any
38lease, of the estate or interest being foreclosed that is recorded
39subsequent to the deed of trust or mortgage being foreclosed, or
40recorded prior to or concurrently with the deed of trust or mortgage
P8    1being foreclosed but subject to a recorded agreement or statement
2of subordination to the deed of trust or mortgage being foreclosed.

3(E) The successor in interest to the vendee or lessee described
4in subparagraph (D), as of the recording date of the notice of
5default.

6(F) The office of the Controller, Sacramento, California, where,
7as of the recording date of the notice of default, a “Notice of Lien
8for Postponed Property Taxes” has been recorded against the real
9property to which the notice of default applies.

10(3) At least 20 days before the date of sale, deposit or cause to
11be deposited in the United States mail an envelope, sent by
12registered or certified mail with postage prepaid, containing a copy
13of the notice of the time and place of sale addressed to each person
14to whom a copy of the notice of default is to be mailed as provided
15in paragraphs (1) and (2), and addressed to the office of any state
16taxing agency, Sacramento, California, that has recorded,
17subsequent to the deed of trust or mortgage being foreclosed, a
18notice of tax lien prior to the recording date of the notice of default
19against the real property to which the notice of default applies.

20(4) Provide a copy of the notice of sale to the Internal Revenue
21Service, in accordance with Section 7425 of the Internal Revenue
22Code and any applicable federal regulation, if a “Notice of Federal
23Tax Lien under Internal Revenue Laws” has been recorded,
24subsequent to the deed of trust or mortgage being foreclosed,
25against the real property to which the notice of sale applies. The
26failure to provide the Internal Revenue Service with a copy of the
27notice of sale pursuant to this paragraph shall be sufficient cause
28to rescind the trustee’s sale and invalidate the trustee’s deed, at
29the option of either the successful bidder at the trustee’s sale or
30the trustee, and in either case with the consent of the beneficiary.
31Any option to rescind the trustee’s sale pursuant to this paragraph
32shall be exercised prior to any transfer of the property by the
33successful bidder to a bona fide purchaser for value. A rescission
34of the trustee’s sale pursuant to this paragraph may be recorded in
35a notice of rescission pursuant to Section 1058.5.

36(5) The mailing of notices in the manner set forth in paragraph
37(1) shall not impose upon any licensed attorney, agent, or employee
38of any person entitled to receive notices as herein set forth any
39duty to communicate the notice to the entitled person from the fact
P9    1that the mailing address used by the county recorder is the address
2of the attorney, agent, or employee.

3(d) Any deed of trust or mortgage with power of sale hereafter
4executed upon real property or an estate for years therein may
5contain a request that a copy of any notice of default and a copy
6of any notice of sale thereunder shall be mailed to any person or
7party thereto at the address of the person given therein, and a copy
8of any notice of default and of any notice of sale shall be mailed
9to each of these at the same time and in the same manner required
10as though a separate request therefor had been filed by each of
11these persons as herein authorized. If any deed of trust or mortgage
12with power of sale executed after September 19, 1939, except a
13deed of trust or mortgage of any of the classes excepted from the
14provisions of Section 2924, does not contain a mailing address of
15the trustor or mortgagor therein named, and if no request for special
16notice by the trustor or mortgagor in substantially the form set
17forth in this section has subsequently been recorded, a copy of the
18notice of default shall be published once a week for at least four
19weeks in a newspaper of general circulation in the county in which
20the property is situated, the publication to commence within 10
21business days after the filing of the notice of default. In lieu of
22publication, a copy of the notice of default may be delivered
23personally to the trustor or mortgagor within the 10 business days
24or at any time before publication is completed, or by posting the
25notice of default in a conspicuous place on the property and mailing
26the notice to the last known address of the trustor or mortgagor.

27(e) Any person required to mail a copy of a notice of default or
28notice of sale to each trustor or mortgagor pursuant to subdivision
29(b) or (c) by registered or certified mail shall simultaneously cause
30to be deposited in the United States mail, with postage prepaid and
31mailed by first-class mail, an envelope containing an additional
32copy of the required notice addressed to each trustor or mortgagor
33at the same address to which the notice is sent by registered or
34certified mail pursuant to subdivision (b) or (c). The person shall
35execute and retain an affidavit identifying the notice mailed,
36showing the name and residence or business address of that person,
37that he or she is overbegin delete the age of 18 years,end deletebegin insert 18 years of age,end insert the date
38of deposit in the mail, the name and address of the trustor or
39mortgagor to whom sent, and that the envelope was sealed and
40deposited in the mail with postage fully prepaid. In the absence of
P10   1fraud, the affidavit required by this subdivision shall establish a
2conclusive presumption of mailing.

3(f) (1) Notwithstanding subdivision (a), with respect to separate
4interests governed by an association, as defined in Section 4080,
5the association may cause to be filed in the office of the recorder
6in the county in which the separate interests are situated a request
7that a mortgagee, trustee, or other person authorized to record a
8notice of default regarding any of those separate interests mail to
9the association a copy of any trustee’s deed upon sale concerning
10a separate interest. The request shall include a legal description or
11the assessor’s parcel number of all the separate interests. A request
12recorded pursuant to this subdivision shall include the name and
13address of the association and a statement that it is a homeowners’
14association. Subsequent requests of an association shall supersede
15prior requests. A request pursuant to this subdivision shall be
16recorded before the filing of a notice of default. The mortgagee,
17trustee, or other authorized person shall mail the requested
18information to the association within 15 business days following
19the date of the trustee’s sale. Failure to mail the request, pursuant
20to this subdivision, shall not affect the title to real property.

21(2) A request filed pursuant to paragraph (1) does not, for
22purposes of Section 27288.1 of the Government Code, constitute
23a document that either effects or evidences a transfer or
24encumbrance of an interest in real property or that releases or
25terminates any interest, right, or encumbrance of an interest in real
26property.

27(g) No request for a copy of any notice filed for record pursuant
28to this section, no statement or allegation in the request, and no
29record thereof shall affect the title to real property or be deemed
30notice to any person that any person requesting copies of notice
31has or claims any right, title, or interest in, or lien or charge upon
32the property described in the deed of trust or mortgage referred to
33therein.

34(h) “Business day,” as used in this section, has the meaning
35specified in Section 9.

36begin insert

begin insertSEC. 6.5end insertbegin insert.end insert  

end insert

begin insertSection 2924b of the end insertbegin insertCivil Codeend insertbegin insert is amended to read:end insert

37

2924b.  

(a)Any person desiring a copy of any notice of default
38
and of any notice of sale under any deed of trust or mortgage with
39
power of sale upon real property or an estate for years therein, as
40
to which deed of trust or mortgage the power of sale cannot be
P11   1
exercised until these notices are given for the time and in the
2
manner provided in Section 2924 may, at any time subsequent to
3
recordation of the deed of trust or mortgage and prior to recordation
4
of notice of default thereunder, cause to be filed for record in the
5
office of the recorder of any county in which any part or parcel of
6
the real property is situated, a duly acknowledged request for a
7
copy of the notice of default and of sale. This request shall be
8
signed and acknowledged by the person making the request,
9
specifying the name and address of the person to whom the notice
10
is to be mailed, shall identify the deed of trust or mortgage by
11
stating the names of the parties thereto, the date of recordation
12
thereof, and the book and page where the deed of trust or mortgage
13
is recorded or the recorder’s number, and shall be in substantially
14
the following form:
15

 

 “In accordance with Section 2924b, Civil Code, request is hereby
made that a copy of any notice of default and a copy of any notice of sale
under the deed of trust (or mortgage) recorded ______, ____, in Book
_____ page ____ records of ____ County, (or filed for record with
recorder’s serial number ____, _______  County) California, executed
by ____ as trustor (or mortgagor) in which ________ is named as
beneficiary (or mortgagee) and ______________ as trustee be mailed to

    at  

   .

Name

Address

NOTICE:  A copy of any notice of default and of any notice of sale will be
sent only to the address contained in this recorded request. If your address changes, a new request must be recorded.

   

Signature    

P11  29

 

30Upon the filing for record of the request, the recorder shall index
31in the general index of grantors the names of the trustors (or
32begin delete mortgagor)end deletebegin insert mortgagors)end insert recited therein and the names of persons
33requesting copies.

34(b) The mortgagee, trustee, or other person authorized to record
35the notice of default or the notice of sale shall do each of the
36following:

37(1) Within 10 business days following recordation of the notice
38of default, deposit or cause to be deposited in the United States
39mail an envelope, sent by registered or certified mail with postage
40prepaid, containing a copy of the notice with the recording date
P12   1shown thereon, addressed to each person whose name and address
2are set forth in a duly recorded request therefor, directed to the
3address designated in the request and to each trustor or mortgagor
4at his or her last known address if different than the address
5specified in the deed of trust or mortgage with power of sale.

6(2) At least 20 days before the date of sale, deposit or cause to
7be deposited in the United States mail an envelope, sent by
8registered or certified mail with postage prepaid, containing a copy
9of the notice of the time and place of sale, addressed to each person
10whose name and address are set forth in a duly recorded request
11therefor, directed to the address designated in the request and to
12each trustor or mortgagor at his or her last known address if
13different than the address specified in the deed of trust or mortgage
14with power of sale.

15(3) As used in paragraphs (1) and (2), the “last known address”
16of each trustor or mortgagor means the last business or residence
17physical address actually known by the mortgagee, beneficiary,
18trustee, or other person authorized to record the notice of default.
19For the purposes of this subdivision, an address is “actually known”
20if it is contained in the original deed of trust or mortgage, or in
21any subsequent written notification of a change of physical address
22from the trustor or mortgagor pursuant to the deed of trust or
23mortgage. For the purposes of this subdivision, “physical address”
24does not include an e-mail or any form of electronic address for a
25trustor or mortgagor. The beneficiary shall inform the trustee of
26the trustor’s last address actually known by the beneficiary.
27However, the trustee shall incur no liability for failing to send any
28notice to the last address unless the trustee has actual knowledge
29of it.

30(4) A “person authorized to record the notice of default or the
31notice of sale” shall include an agent for the mortgagee or
32beneficiary, an agent of the named trustee, any person designated
33in an executed substitution of trustee, or an agent of that substituted
34trustee.

35(c) The mortgagee, trustee, or other person authorized to record
36the notice of default or the notice of sale shall do the following:

37(1) Within one month following recordation of the notice of
38default, deposit or cause to be deposited in the United States mail
39an envelope, sent by registered or certified mail with postage
40prepaid, containing a copy of the notice with the recording date
P13   1shown thereon, addressed to each person set forth in paragraph
2(2), provided that the estate or interest of any person entitled to
3receive notice under this subdivision is acquired by an instrument
4sufficient to impart constructive notice of the estate or interest in
5the land or portion thereof that is subject to the deed of trust or
6mortgage being foreclosed, and provided the instrument is recorded
7in the office of the county recorder so as to impart that constructive
8notice prior to the recording date of the notice of default and
9provided the instrument as so recorded sets forth a mailing address
10that the county recorder shall use, as instructed within the
11instrument, for the return of the instrument after recording, and
12which address shall be the address used for the purposes of mailing
13notices herein.

14(2) The persons to whom notice shall be mailed under this
15subdivision are:

16(A) The successor in interest, as of the recording date of the
17notice of default, of the estate or interest or any portion thereof of
18the trustor or mortgagor of the deed of trust or mortgage being
19foreclosed.

20(B) The beneficiary or mortgagee of any deed of trust or
21mortgage recorded subsequent to the deed of trust or mortgage
22being foreclosed, or recorded prior to or concurrently with the
23deed of trust or mortgage being foreclosed but subject to a recorded
24agreement or a recorded statement of subordination to the deed of
25trust or mortgage being foreclosed.

26(C) The assignee of any interest of the beneficiary or mortgagee
27described in subparagraph (B), as of the recording date of the notice
28of default.

29(D) The vendee of any contract of sale, or the lessee of any
30lease, of the estate or interest being foreclosed that is recorded
31subsequent to the deed of trust or mortgage being foreclosed, or
32recorded prior to or concurrently with the deed of trust or mortgage
33being foreclosed but subject to a recorded agreement or statement
34of subordination to the deed of trust or mortgage being foreclosed.

35(E) The successor in interest to the vendee or lessee described
36in subparagraph (D), as of the recording date of the notice of
37default.

38(F) The office of the Controller, Sacramento, California, where,
39as of the recording date of the notice of default, a “Notice of Lien
P14   1for Postponed Property Taxes” has been recorded against the real
2property to which the notice of default applies.

3(3) At least 20 days before the date of sale, deposit or cause to
4be deposited in the United States mail an envelope, sent by
5registered or certified mail with postage prepaid, containing a copy
6of the notice of the time and place of sale addressed to each person
7to whom a copy of the notice of default is to be mailed as provided
8in paragraphs (1) and (2), and addressed to the office of any state
9taxing agency, Sacramento, California, that has recorded,
10subsequent to the deed of trust or mortgage being foreclosed, a
11notice of tax lien prior to the recording date of the notice of default
12against the real property to which the notice of default applies.

13(4) Provide a copy of the notice of sale to the Internal Revenue
14Service, in accordance with Section 7425 of the Internal Revenue
15Code and any applicable federal regulation, if a “Notice of Federal
16Tax Lien under Internal Revenue Laws” has been recorded,
17subsequent to the deed of trust or mortgage being foreclosed,
18against the real property to which the notice of sale applies. The
19failure to provide the Internal Revenue Service with a copy of the
20notice of sale pursuant to this paragraph shall be sufficient cause
21to rescind the trustee’s sale and invalidate the trustee’s deed, at
22the option of either the successful bidder at the trustee’s sale or
23the trustee, and in either case with the consent of the beneficiary.
24Any option to rescind the trustee’s sale pursuant to this paragraph
25shall be exercised prior to any transfer of the property by the
26successful bidder to a bona fide purchaser for value. Abegin delete recisionend delete
27begin insert rescissionend insert of the trustee’s sale pursuant to this paragraph may be
28recorded in a notice ofbegin delete recisionend deletebegin insert rescissionend insert pursuant to Section
291058.5.

30(5) The mailing of notices in the manner set forth in paragraph
31(1) shall not impose upon any licensed attorney, agent, or employee
32of any person entitled to receive notices as herein set forth any
33duty to communicate the notice to the entitled person from the fact
34that the mailing address used by the county recorder is the address
35of the attorney, agent, or employee.

36(d) Any deed of trust or mortgage with power of sale hereafter
37executed upon real property or an estate for years therein may
38contain a request that a copy of any notice of default and a copy
39of any notice of sale thereunder shall be mailed to any person or
40party thereto at the address of the person given therein, and a copy
P15   1of any notice of default and of any notice of sale shall be mailed
2to each of these at the same time and in the same manner required
3as though a separate request therefor had been filed by each of
4these persons as herein authorized. If any deed of trust or mortgage
5with power of sale executed after September 19, 1939, except a
6deed of trust or mortgage of any of the classes excepted from the
7provisions of Section 2924, does not contain a mailing address of
8the trustor or mortgagor therein named, and if no request for special
9notice by the trustor or mortgagor in substantially the form set
10forth in this section has subsequently been recorded, a copy of the
11notice of default shall be published once a week for at least four
12weeks in a newspaper of general circulation in the county in which
13the property is situated, the publication to commence within 10
14business days after the filing of the notice of default. In lieu of
15publication, a copy of the notice of default may be delivered
16personally to the trustor or mortgagor within the 10 business days
17or at any time before publication is completed, or by posting the
18notice of default in a conspicuous place on the property and mailing
19the notice to the last known address of the trustor or mortgagor.

20(e) Any person required to mail a copy of a notice of default or
21notice of sale to each trustor or mortgagor pursuant to subdivision
22(b) or (c) by registered or certified mail shall simultaneously cause
23to be deposited in the United States mail, with postage prepaid and
24mailed by first-class mail, an envelope containing an additional
25copy of the required notice addressed to each trustor or mortgagor
26at the same address to which the notice is sent by registered or
27certified mail pursuant to subdivision (b) or (c). The person shall
28execute and retain an affidavit identifying the notice mailed,
29showing the name and residence or business address of that person,
30that he or she is overbegin delete the age of 18 years,end deletebegin insert 18 years of age,end insert the date
31of deposit in the mail, the name and address of the trustor or
32mortgagor to whom sent, and that the envelope was sealed and
33deposited in the mail with postage fully prepaid. In the absence of
34fraud, the affidavit required by this subdivision shall establish a
35conclusive presumption of mailing.

36(f) (1) Notwithstanding subdivision (a), with respect to separate
37interests governed by an association, as defined inbegin delete subdivision (a)
38of Section 1351,end delete
begin insert Section 4080 or 6528,end insert the association may cause
39to be filed in the office of the recorder in the county in which the
40separate interests are situated a request that a mortgagee, trustee,
P16   1or other person authorized to record a notice of default regarding
2any of those separate interests mail to the association a copy of
3any trustee’s deed upon sale concerning a separate interest. The
4request shall include a legal description or the assessor’s parcel
5number of all the separate interests. A request recorded pursuant
6to this subdivision shall include the name and address of the
7association and a statement that it isbegin delete a homeowners’ association.end delete
8begin insert an association as defined in Section 4080 or 4628.end insert Subsequent
9requests of an association shall supersede prior requests. A request
10pursuant to this subdivision shall be recorded before the filing of
11a notice of default. The mortgagee, trustee, or other authorized
12person shall mail the requested information to the association
13within 15 business days following the date of the trustee’s sale.
14Failure to mail the request, pursuant to this subdivision, shall not
15affect the title to real property.

16(2) A request filed pursuant to paragraph (1) does not, for
17purposes of Section 27288.1 of the Government Code, constitute
18a document that either effects or evidences a transfer or
19encumbrance of an interest in real property or that releases or
20terminates any interest, right, or encumbrance of an interest in real
21property.

22(g) No request for a copy of any notice filed for record pursuant
23to this section, no statement or allegation in the request, and no
24record thereof shall affect the title to real property or be deemed
25notice to any person that any person requesting copies of notice
26has or claims any right, title, or interest in, or lien or charge upon
27the property described in the deed of trust or mortgage referred to
28therein.

29(h) “Business day,” as used in this section, has the meaning
30specified in Section 9.

31

SEC. 7.  

Section 4005 of the Civil Code is amended to read:

32

4005.  

Division, part, title, chapter, article, and section headings
33do not in any manner affect the scope, meaning, or intent of this
34act.

35

SEC. 8.  

Section 4035 of the Civil Code is amended to read:

36

4035.  

(a) If a provision of this act requires that a document be
37delivered to an association, the document shall be delivered to the
38person designated in the annual policy statement, prepared pursuant
39to Section 5310, to receive documents on behalf of the association.
40If no person has been designated to receive documents, the
P17   1document shall be delivered to the president or secretary of the
2association.

3(b) A document delivered pursuant to this section may be
4delivered by any of the following methods:

5(1) By email, facsimile, or other electronic means, if the
6association has assented to that method of delivery.

7(2) By personal delivery, if the association has assented to that
8method of delivery. If the association accepts a document by
9personal delivery it shall provide a written receipt acknowledging
10delivery of the document.

11(3) By first-class mail, postage prepaid, registered or certified
12mail, express mail, or overnight delivery by an express service
13center.

14

SEC. 9.  

Section 4070 of the Civil Code is amended to read:

15

4070.  

If a provision of this act requires that an action be
16approved by a majority of a quorum of the members, the action
17shall be approved or ratified by an affirmative vote of a majority
18of the votes represented and voting in a duly held election in which
19a quorum is represented, which affirmative votes also constitute
20a majority of the required quorum.

21

SEC. 10.  

Section 4090 of the Civil Code is amended to read:

22

4090.  

“Board meeting” means either of the following:

23(a) A congregation, at the same time and place, of a sufficient
24number of directors to establish a quorum of the board, to hear,
25discuss, or deliberate upon any item of business that is within the
26authority of the board.

27(b) A teleconference, where a sufficient number of directors to
28establish a quorum of the board, in different locations, are
29connected by electronic means, through audio or video, or both.
30A teleconference meeting shall be conducted in a manner that
31protects the rights of members of the association and otherwise
32complies with the requirements of this act. Except for a meeting
33that will be held solely in executive session, the notice of the
34teleconference meeting shall identify at least one physical location
35so that members of the association may attend, and at least one
36director or a person designated by the board shall be present at
37that location. Participation by directors in a teleconference meeting
38constitutes presence at that meeting as long as all directors
39participating are able to hear one another, as well as members of
40the association speaking on matters before the board.

P18   1

SEC. 11.  

Section 4205 of the Civil Code is amended to read:

2

4205.  

(a) To the extent of any conflict between the governing
3documents and the law, the law shall prevail.

4(b) To the extent of any conflict between the articles of
5incorporation and the declaration, the declaration shall prevail.

6(c) To the extent of any conflict between the bylaws and the
7articles of incorporation or declaration, the articles of incorporation
8or declaration shall prevail.

9(d) To the extent of any conflict between the operating rules
10and the bylaws, articles of incorporation, or declaration, the bylaws,
11articles of incorporation, or declaration shall prevail.

12

SEC. 12.  

Section 4290 of the Civil Code is amended to read:

13

4290.  

(a) The certificate consenting to the recordation of a
14condominium plan that is required by subdivision (c) of Section
154285 shall be signed and acknowledged by all of the following
16persons:

17(1) The record owner of fee title to that property included in the
18condominium project.

19(2) In the case of a condominium project that will terminate
20upon the termination of an estate for years, by all lessors and
21lessees of the estate for years.

22(3) In the case of a condominium project subject to a life estate,
23by all life tenants and remainder interests.

24(4) The trustee or the beneficiary of each recorded deed of trust,
25and the mortgagee of each recorded mortgage encumbering the
26property.

27(b) Owners of mineral rights, easements, rights-of-way, and
28other nonpossessory interests do not need to sign the certificate.

29(c) In the event a conversion to condominiums of a community
30apartment project or stock cooperative has been approved by the
31required number of owners, trustees, beneficiaries, and mortgagees
32pursuant to Section 66452.10 of the Government Code, the
33certificate need only be signed by those owners, trustees,
34beneficiaries, and mortgagees approving the conversion.

35

SEC. 13.  

Section 4350 of the Civil Code is amended to read:

36

4350.  

An operating rule is valid and enforceable only if all of
37the following requirements are satisfied:

38(a) The rule is in writing.

P19   1(b) The rule is within the authority of the board conferred by
2law or by the declaration, articles of incorporation or association,
3or bylaws of the association.

4(c) The rule is not in conflict with governing law and the
5declaration, articles of incorporation or association, or bylaws of
6the association.

7(d) The rule is adopted, amended, or repealed in good faith and
8in substantial compliance with the requirements of this article.

9(e) The rule is reasonable.

10

SEC. 14.  

Section 4525 of the Civil Code is amended to read:

11

4525.  

(a) The owner of a separate interest shall provide the
12following documents to a prospective purchaser of the separate
13interest, as soon as practicable before the transfer of title or the
14execution of a real property sales contract, as defined in Section
152985:

16(1) A copy of all governing documents. If the association is not
17incorporated, this shall include a statement in writing from an
18authorized representative of the association that the association is
19not incorporated.

20(2) If there is a restriction in the governing documents limiting
21the occupancy, residency, or use of a separate interest on the basis
22of age in a manner different from that provided in Section 51.3, a
23statement that the restriction is only enforceable to the extent
24permitted by Section 51.3 and a statement specifying the applicable
25provisions of Section 51.3.

26(3) A copy of the most recent documents distributed pursuant
27to Article 7 (commencing with Section 5300) of Chapter 6.

28(4) A true statement in writing obtained from an authorized
29representative of the association as to the amount of the
30association’s current regular and special assessments and fees, any
31assessments levied upon the owner’s interest in the common
32interest development that are unpaid on the date of the statement,
33and any monetary fines or penalties levied upon the owner’s
34interest and unpaid on the date of the statement. The statement
35obtained from an authorized representative shall also include true
36information on late charges, interest, and costs of collection which,
37as of the date of the statement, are or may be made a lien upon the
38 owner’s interest in a common interest development pursuant to
39Article 2 (commencing with Section 5650) of Chapter 8.

P20   1(5) A copy or a summary of any notice previously sent to the
2owner pursuant to Section 5855 that sets forth any alleged violation
3of the governing documents that remains unresolved at the time
4of the request. The notice shall not be deemed a waiver of the
5association’s right to enforce the governing documents against the
6owner or the prospective purchaser of the separate interest with
7respect to any violation. This paragraph shall not be construed to
8require an association to inspect an owner’s separate interest.

9(6) A copy of the initial list of defects provided to each member
10pursuant to Section 6000, unless the association and the builder
11subsequently enter into a settlement agreement or otherwise resolve
12the matter and the association complies with Section 6100.
13 Disclosure of the initial list of defects pursuant to this paragraph
14does not waive any privilege attached to the document. The initial
15list of defects shall also include a statement that a final
16determination as to whether the list of defects is accurate and
17complete has not been made.

18(7) A copy of the latest information provided for in Section
196100.

20(8) Any change in the association’s current regular and special
21assessments and fees which have been approved by the board, but
22have not become due and payable as of the date disclosure is
23provided pursuant to this subdivision.

24(9) If there is a provision in the governing documents that
25prohibits the rental or leasing of any of the separate interests in
26the common interest development to a renter, lessee, or tenant, a
27statement describing the prohibition.

28(10) If requested by the prospective purchaser, a copy of the
29minutes of board meetings, excluding meetings held in executive
30session, conducted over the previous 12 months, that were
31approved by the board.

32(b) This section does not apply to an owner that is subject to
33Section 11018.6 of the Business and Professions Code.

34

SEC. 15.  

Section 4528 of the Civil Code is amended to read:

35

4528.  

The form for billing disclosures required by Section
364530 shall be in at least 10-point type and substantially the
37following form:

38

 

CHARGES FOR DOCUMENTS PROVIDED AS REQUIRED BY SECTION 4525*

 
 

Property Address

 

Owner of Property

 

Owner’s Mailing Address (If known or different from property address.)

 
 

Provider of the Section 4525 Items:

 
 
 

Print Name _________ Position or Title _________ Association or Agent

 
Date Form Completed
P21  17P21   4

 

 

Check or Complete Applicable Column or Columns Below

 
   

Not Available
(N/A) or Not
Applicable
(N/App)

Document

Civil Code Section Included

 
    

Articles of Incorporation or statement that not incorporated

Section 4525(a)(1)

  
    

CC&Rs

Section 4525(a)(1)

  
    

Bylaws

Section 4525(a)(1)

  
    

Operating Rules

Section 4525(a)(1)

  
    

Age restrictions, if any

Section 4525(a)(2)

  

Rental restrictions, if any

Section 4525(a)(9)

  

Annual budget report or summary, including reserve study

Sections 5300 and 4525(a)(3)

  
    

Assessment and reserve funding disclosure summary

Sections 5300 and 4525(a)(4)

  
    

Financial statement review

Sections 5305 and 4525(a)(3)

  
    

Assessment enforcement policy

Sections 5310 and 4525(a)(4)

  
    

Insurance summary

Sections 5300 and 4525(a)(3)

  
    

Regular assessment

Section 4525(a)(4)

  
    

Special assessment

Section 4525(a)(4)

  
    

Emergency assessment

Section 4525(a)(4)

  
    

Other unpaid obligations of seller

Sections 5675 and 4525(a)(4)

  
    

Approved changes to assessments

Sections 5300 and 4525(a)(4), (8)

  
    

Settlement notice regarding common area defects

Sections 4525(a)(6), (7), and 6100

  
    

Preliminary list of defects

Sections 4525(a)(6), 6000, and 6100

  
    

Notice(s) of violation

Sections 5855 and 4525(a)(5)

  
    

Required statement of fees

Section 4525

  
    

Minutes of regular board meetings conducted over the previous 12 months, if requested

Section 4525(a)(10)

  
    

Total fees for these documents:

    

* The information provided by this form may not include all fees that may be imposed before the close of escrow. Additional fees that are not related to the requirements of Section 4525 may be charged separately.

 

5

SEC. 16.  

Section 4530 of the Civil Code is amended to read:

6

4530.  

(a) (1) Upon written request, the association shall,
7within 10 days of the mailing or delivery of the request, provide
8the owner of a separate interest, or any other recipient authorized
9by the owner, with a copy of the requested documents specified
10in Section 4525.

11(2) The documents required to be made available pursuant to
12this section may be maintained in electronic form, and may be
13posted on the association’s Internet Web site. Requesting parties
14shall have the option of receiving the documents by electronic
15transmission if the association maintains the documents in
16electronic form.

17(3) Delivery of the documents required by this section shall not
18be withheld for any reason nor subject to any condition except the
19payment of the fee authorized pursuant to subdivision (b).

20(b) (1) The association may collect a reasonable fee based upon
21the association’s actual cost for the procurement, preparation,
22reproduction, and delivery of the documents requested pursuant
23to this section. Additional fees shall not be charged by the
24association for the electronic delivery of the documents requested.

25(2) Upon receipt of a written request, the association shall
26provide, on the form described in Section 4528, a written or
27electronic estimate of the fees that will be assessed for providing
28the requested documents.

29(3) (A) A cancellation fee for documents specified in
30subdivision (a) shall not be collected if either of the following
31applies:

32(i) The request was canceled in writing by the same party that
33placed the order and work had not yet been performed on the order.

34(ii) The request was canceled in writing and any work that had
35been performed on the order was compensated.

36(B) The association shall refund all fees collected pursuant to
37paragraph (1) if the request was canceled in writing and work had
38not yet been performed on the order.

P24   1(C) If the request was canceled in writing, the association shall
2refund the share of fees collected pursuant to paragraph (1) that
3represents the portion of the work not performed on the order.

4(4) Fees for any documents required by this section shall be
5distinguished from other fees, fines, or assessments billed as part
6of the transfer or sales transaction.

7(c) An association may contract with any person or entity to
8facilitate compliance with this section on behalf of the association.

9(d) The association shall also provide a recipient authorized by
10the owner of a separate interest with a copy of the completed form
11specified in Section 4528 at the time the required documents are
12delivered.

13

SEC. 17.  

Section 4920 of the Civil Code is amended to read:

14

4920.  

(a) Except as provided in subdivision (b), the association
15shall give notice of the time and place of a board meeting at least
16four days before the meeting.

17(b) (1) If a board meeting is an emergency meeting held
18pursuant to Section 4923, the association is not required to give
19notice of the time and place of the meeting.

20(2) If a nonemergency board meeting is held solely in executive
21session, the association shall give notice of the time and place of
22the meeting at least two days prior to the meeting.

23(3) If the association’s governing documents require a longer
24period of notice than is required by this section, the association
25shall comply with the period stated in its governing documents,
26except for a notice of an emergency meeting or a meeting held
27solely in executive session when the governing documents do not
28specifically provide a period of notice for these meetings.

29(c) Notice of a board meeting shall be given by general delivery
30pursuant to Section 4045.

31(d) Notice of a board meeting shall contain the agenda for the
32meeting.

33

SEC. 18.  

Section 12191 of the Government Code is amended
34to read:

35

12191.  

The miscellaneous business entity filing fees are the
36following:

37(a) Foreign Associations, as defined in Sections 170 and 171
38of the Corporations Code:

P25   1(1) Filing the statement and designation upon the qualification
2of a foreign association pursuant to Section 2105 of the
3Corporations Code: One hundred dollars ($100).

4(2) Filing an amended statement and designation by a foreign
5association pursuant to Section 2107 of the Corporations Code:
6Thirty dollars ($30).

7(3) Filing a certificate showing the surrender of the right of a
8foreign association to transact intrastate business pursuant to
9Section 2112 of the Corporations Code: No fee.

10(b) Unincorporated Associations:

11(1) Filing a statement in accordance with Section 18200 of the
12Corporations Code as to principal place of office or place for
13sending notices or designating agent for service: Twenty-five
14dollars ($25).

15(2) Insignia Registrations: Ten dollars ($10).

16(c) Community Associations and Common Interest
17Developments:

18(1) Filing a statement by a community association in accordance
19with Section 5405 of the Civil Code to register the common interest
20development that it manages: An amount not to exceed thirty
21dollars ($30).

22(2) Filing an amended statement by a community association
23in accordance with Section 5405 of the Civil Code: No fee.

24

SEC. 19.  

Section 65582 of the Government Code is amended
25to read:

26

65582.  

As used in this article, the following definitions apply:

27(a) “Community,” “locality,” “local government,” or
28“jurisdiction” means a city, city and county, or county.

29(b) “Council of governments” means a single or multicounty
30council created by a joint powers agreement pursuant to Chapter
315 (commencing with Section 6500) of Division 1 of Title 1.

32(c) “Department” means the Department of Housing and
33Community Development.

34(d) “Emergency shelter” has the same meaning as defined in
35subdivision (e) of Section 50801 of the Health and Safety Code.

36(e) “Housing element” or “element” means the housing element
37of the community’s general plan, as required pursuant to this article
38and subdivision (c) of Section 65302.

39(f) “Supportive housing” means housing with no limit on length
40of stay, that is occupied by the target population, and that is linked
P26   1to an onsite or offsite service that assists the supportive housing
2resident in retaining the housing, improving his or her health status,
3and maximizing his or her ability to live and, when possible, work
4in the community.

5(g) “Target population” means persons with low incomes who
6have one or more disabilities, including mental illness, HIV or
7AIDS, substance abuse, or other chronic health condition, or
8individuals eligible for services provided pursuant to the Lanterman
9Developmental Disabilities Services Act (Division 4.5
10(commencing with Section 4500) of the Welfare and Institutions
11Code) and may include, among other populations, adults,
12emancipated minors, families with children, elderly persons, young
13adults aging out of the foster care system, individuals exiting from
14institutional settings, veterans, and homeless people.

15(h) “Transitional housing” means buildings configured as rental
16housing developments, but operated under program requirements
17that require the termination of assistance and recirculating of the
18assisted unit to another eligible program recipient at a
19predetermined future point in time that shall be no less than six
20months from the beginning of the assistance.

21

SEC. 20.  

Section 65585.2 of the Government Code is repealed.

22

SEC. 21.  

Section 13114 of the Health and Safety Code is
23amended to read:

24

13114.  

(a) The State Fire Marshal, with the advice of the State
25Board of Fire Services, shall adopt regulations and standards as
26he or she may determine to be necessary to control the quality and
27installation of fire alarm systems and fire alarm devices marketed,
28distributed, offered for sale, or sold in this state.

29(b) (1) No person shall market, distribute, offer for sale, or sell
30any fire alarm system or fire alarm device in this state unless the
31system or device has been approved and listed by the State Fire
32Marshal.

33(2) (A) Except as provided in subparagraph (B), commencing
34July 1, 2014, in order to be approved and listed by the State Fire
35Marshal, a smoke alarm that is only operated by a battery shall
36contain a nonreplaceable, nonremovable battery that is capable of
37powering the smoke alarm for at least 10 years.

38(B) This paragraph shall not apply to smoke alarms that have
39been ordered by, or are in the inventory of, an owner, managing
P27   1agent, contractor, wholesaler, or retailer on or beforebegin insert July 1, 2014,
2untilend insert
July 1, 2015.

3(3) begin delete(A)end deletebegin deleteend deleteCommencing January 1, 2015, in order to be approved
4and listed by the State Fire Marshal, a smoke alarm shall display
5the date of manufacture on the device, provide a place on the device
6where the date of installation can be written, and incorporate a
7hush feature.

begin delete

29 8(B)

end delete

9begin insert(4)end insert The State Fire Marshal shall have the authority to create
10exceptions tobegin delete this paragraphend deletebegin insert paragraphs (2) and (3)end insert through its
11regulatory process. The exceptions that may be considered as part
12of the regulatory process shall include, but are not limited to, fire
13alarm systems with smoke detectors, fire alarm devices that connect
14to a panel, or other devices that use a low-power radio frequency
15wireless communication signal.

begin delete

37 16(4)

end delete

17begin insert(5)end insert The State Fire Marshal shall approve the manufacturer’s
18instructions for each smoke alarm and shall ensure that the
19instructions are consistent with current building standard
20requirements for the location and placement of smoke alarms.

21

SEC. 22.  

Section 50675.14 of the Health and Safety Code is
22amended to read:

23

50675.14.  

(a) This section shall apply only to projects funded
24with funds appropriated for supportive housing projects.

25(b) For purposes of this section the following terms have the
26following meanings:

27(1) “May restrict occupancy to persons with veteran status”
28means that the sponsor may limit occupancy to persons meeting
29the criteria of paragraphs (1) and (2) of subdivision (j) with respect
30to either of the following:

31(A) Any unit in the development that has not been previously
32occupied.

33(B) Any unit in the development that subsequently becomes
34vacant, for a period of not more than 120 days following the
35vacancy.

36(2) “Supportive housing” means housing with no limit on length
37of stay, that is occupied by the target population, and that is linked
38to onsite or offsite services that assist the supportive housing
39resident in retaining the housing, improving his or her health status,
P28   1and maximizing his or her ability to live and, when possible, work
2in the community.

3(3) (A) “Target population” means persons, including persons
4with disabilities, and families who are “homeless,” as that term is
5defined by Section 11302 of Title 42 of the United States Code,
6or who are “homeless youth,” as that term is defined by paragraph
7(2) of subdivision (e) of Section 11139.3 of the Government Code.

8(B) Individuals and families currently residing in supportive
9housing meet the definition of “target population” if the individual
10or family was “homeless,” as that term is defined by Section 11302
11of Title 42 of the United States Code, when approved for tenancy
12in the supportive housing project in which they currently reside.

13(c) (1) The department shall ensure that at least 40 percent of
14the units in each development funded under the supportive housing
15program are targeted to one or more of the following populations:

16(A) Individuals or families experiencing “chronic
17homelessness,” as defined by the United States Department of
18Housing and Urban Development’s Super Notice of Funding
19Availability for Continuum of Care or Collaborative Applicant
20Program.

21(B) “Homeless youth,” as that term is defined by paragraph (2)
22of subdivision (e) of Section 11139.3 of the Government Code.

23(C) Individuals exiting institutional settings, including, but not
24limited to, jails, hospitals, prisons, and institutes of mental disease,
25who were homeless when entering the institutional setting, who
26have a disability, and who resided in that setting for a period of
27not less than 15 days.

28(2) The department may decrease the number of units required
29to meet the criteria identified in paragraph (1) if the department
30determines that the program is undersubscribed after issuing at
31least one Notice of Funding Availability.

32(3) Individuals and families currently residing in supportive
33housing meet the qualifications under this subdivision if the
34individual or family met any of the criteria specified in
35subparagraph (A), (B), or (C) of paragraph (1) when approved for
36tenancy in the supportive housing project in which they currently
37reside.

38(d) Supportive housing projects shall provide or demonstrate
39collaboration with programs that provide services that meet the
40needs of the supportive housing residents.

P29   1(e) The criteria, established by the department, for selecting
2supportive housing projects shall give priority to supportive
3housing projects that include a focus on measurable outcomes and
4a plan for evaluation, which evaluation shall be submitted by the
5borrowers, annually, to the department.

6(f) The department may provide higher per-unit loan limits as
7reasonably necessary to provide and maintain rents that are
8affordable to the target population.

9(g) In an evaluation or ranking of a borrower’s development
10and ownership experience, the department shall consider experience
11acquired in the prior 10 years.

12(h) (1) A borrower shall, beginning the second year after
13supportive housing project occupancy, include the following data
14in his or her annual report to the department. However, a borrower
15who submits an annual evaluation pursuant to subdivision (c) may,
16instead, include this information in the evaluation:

17(A) The length of occupancy by each supportive housing
18resident for the period covered by the report and, if the resident
19has moved, the reason for the move and the type of housing to
20which the resident moved, if known.

21(B) Changes in each supportive housing resident’s employment
22status during the previous year.

23(C) Changes in each supportive housing resident’s source and
24amount of income during the previous year.

25(D) The tenant’s housing status prior to occupancy, including
26the term of the tenant’s homelessness.

27(2) The department shall include aggregate data with respect to
28the supportive housing projects described in this section in the
29report that it submits to the Legislature pursuant to Section
3050675.12.

31(i) The department shall consider, commencing in the second
32year of the funding, the feasibility and appropriateness of
33modifying its regulations to increase the use of funds by small
34projects. In doing this, the department shall consider its operational
35needs and prior history of funding supportive housing facilities.

36(j) Notwithstanding any other provision of law, the sponsor of
37a supportive housing development may restrict occupancy to
38persons with veteran status if all the following conditions apply:

39(1) The veterans possess significant barriers to social
40reintegration and employment that require specialized treatment
P30   1and services that are due to a physical or mental disability,
2substance abuse, or the effects of long-term homelessness.

3(2) The veterans are otherwise eligible to reside in an assisted
4unit.

5(3) The sponsor also provides, or assists in providing, the
6specialized treatment and services.

7begin insert

begin insertSEC. end insertbegin insert23end insertbegin insert.end insert  

end insert
begin insert

Section 6.5 of this bill incorporates amendments to
8Section 2924b of the Civil Code proposed by both this bill and
9Senate Bill 752. It shall only become operative if (1) both bills are
10enacted and become effective on or before January 1, 2014, (2)
11each bill amends Section 2924b of the Civil Code, and (3) this bill
12is enacted after Senate Bill 752, in which case Section 6 of this
13bill shall not become operative.

end insert


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