BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 992
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          SENATE THIRD READING
          SB 992 (Nielsen)
          As Amended  May 28, 2014
          2/3 vote.  Urgency

           SENATE VOTE  :36-0  
          
           HOUSING             6-0                                         
           
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          |Ayes:|Beth Gaines, Ammiano,     |     |                          |
          |     |Brown, Maienschein,       |     |                          |
          |     |Quirk-Silva, Yamada       |     |                          |
          |     |                          |     |                          |
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           SUMMARY  :  Prohibits a homeowners association (HOA) in a common  
          interest development (CID) from imposing a fine or assessment  
          against a member who reduces or eliminates watering of  
          vegetation or lawns during any period during which the Governor  
          has declared an emergency due to drought.  Includes an urgency  
          clause. 

           FISCAL EFFECT  :  None
           
          COMMENTS  :  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 HOA.  CIDs are  
          governed by the Davis-Stirling Act as well as the governing  
          documents of the HOA including bylaws, declaration, and  
          operating rules. 
           
           CIDs and droughts:  Under existing law the governing documents  
          of a CID cannot prohibit a homeowner from installing low  
          water-using plants as a group.  In addition, HOAs 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  








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          county adopts in response to severe water shortages.  There is  
          nothing that prohibits an HOA from requiring a homeowner to  
          water their lawn in a case where the Governor has declared a  
          drought but there is no local ordinance restricting water use.   
          This bill would make it clear that if the Governor declared a  
          state of emergency due to a drought that homeowners could stop  
          watering their lawns without being fined by the HOA.   The bill  
          does not prevent a HOA from fining a homeowner if they do not  
          maintain their yard or comply with requirements in state law to  
          keep weeds and vegetation at a minimum in high fire areas.   
          Existing law requires the Governor to declare an end to a state  
          of emergency, in this case a drought, as soon as conditions  
          warrant it.

          In the beginning of this year, due to record low rainfall, the  
          Governor declared a drought emergency. The Governor's  
          declaration called on residents to voluntarily reduce water  
          consumption by 20%.  Local governments have authority to declare  
          a state of emergency through an ordinance.  Many cities have  
          enacted ordinances to restrict watering lawns to a specified  
          number of days per week during the drought.  


          The Governor issued the following directive in a subsequent  
          declaration:

               Homeowners Associations (commonly known as HOAs) have  
               reportedly fined or threatened to fine homeowners who  
               comply with water conservation measures adopted by a  
               public agency or private water company.  To prevent  
               this practice, pursuant to Government Code Section  
               8567, I order that any provision of the governing  
               document, architectural or landscaping guidelines, or  
               policies of a common interest development will be void  
               and unenforceable to the extent it has the effect of  
               prohibiting compliance with the water-saving measures  
               contained in this directive, or any conservation  
               measure adopted by a public agency or private water  
               company, any provision of Division 4, Part 5  
               (commencing with Section 4000) of the Civil Code  
               notwithstanding.


          Related legislation:  This bill is almost identical to AB 2100  








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          (Campos) of the current legislative session, which passed out of  
          the Assembly Housing and Community Development committee with a  
          7-0 vote.


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


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