BILL ANALYSIS Ó SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: SB 992 SENATOR MARK DESAULNIER, CHAIRMAN AUTHOR: Nielsen VERSION: 3/25/14 Analysis by: Mark Stivers FISCAL: no Hearing date: April 1, 2014 URGENCY: YES SUBJECT: Common interest developments: under-watered plants and lawns DESCRIPTION: This bill prohibits a common interest development (CID) from imposing a fine or assessment against an owner for yard maintenance issues related to under-watered plants and lawns during a drought. ANALYSIS: A common interest development is a real property development that includes all of the following: (1) separate ownership of a lot or unit coupled with an undivided interest in common property, (2) covenants, conditions, and restrictions that limit use of both the common area and separate ownership interests, and (3) management of common property and enforcement of restrictions by a community association, which is generally governed by an elected board of directors. Condominiums, planned unit developments, stock cooperatives, community apartments, and many resident-owned mobilehome parks all fall under the CID umbrella. The Davis-Stirling Common Interest Development Act is the principal law that governs CIDs in California. Among other things, the Davis-Stirling Act provides that any provision of the governing documents is void and unenforceable if it prohibits or has the effect of prohibiting the use of low water-using plants as a group, or if it prohibits compliance with a public water-efficient landscape ordinance or water use regulation. This bill prohibits the community association of a CID from imposing a fine or assessment against an owner for yard maintenance issues related to under-watered plants and lawns during any period for which the governor has declared a state of SB 992 (NIELSEN) Page 2 emergency due to drought. This bill contains an urgency clause. COMMENTS: 1.Purpose of the bill . According to the author, Californians should be participating in every effort to conserve water during the current drought, and 53 percent of average household water use - more than 190 gallons per household per day - is used for landscaping and other outdoor uses. Reducing water use on landscaping is critical to getting us through the drought. This bill addresses already reported anecdotes and anticipates future incidents of homeowner associations threatening residents with fines for not watering lawns due to drought conditions. 2.Statewide needs vs. local control . While the benefits of protecting property owners from fines for not watering during a drought may be clear, this bill also raises the eternal question of whether the Legislature should interfere in the affairs of a CID. Should CIDs have sole authority to regulate lawn watering matters, even if that results in using scarce water for landscape? Or is the statewide need for water savings in a drought compelling enough to override local control? 3.Concerns raised . The Community Associations Institute has raised a concern about the aesthetic impact to CIDs and asked for an amendment to only protect owners who are subject to state or local water restrictions. This would allow a CID to fine a homeowner for voluntarily reducing water use, which may significantly reduce possible water savings from the bill. 4.Urgency clause . Given the severity of the current drought, this bill contains an urgency clause to help ensure the fastest possible water savings. RELATED LEGISLATION: AB 2100 (Campos) prohibits a city, county, or CID from imposing a fine or assessment against an owner for yard maintenance issues related to under-watered plants and lawns during any period for which the governor has declared a state of emergency due to drought. This bill is in the Assembly Housing and Community Development Committee. SB 992 (NIELSEN) Page 3 AB 2104 (Gonzalez) provides that CID governing documents may not prohibit or have the effect of prohibiting the replacement of existing turf with low water-using plants. This bill is in the Assembly Housing and Community Development Committee. POSITIONS: (Communicated to the committee before noon on Wednesday, March 26, 2014.) SUPPORT: California Association of Realtors OPPOSED: None received.