BILL ANALYSIS Ó AB 349 Page 1 Date of Hearing: May 13, 2015 ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT Ed Chau, Chair AB 349 (Gonzalez) - As Amended May 5, 2015 SUBJECT: Common interest developments: property use and maintenance. SUMMARY: Makes the governing documents, architectural or landscaping guidelines, or policies of a common interest development (CID) void and unenforceable if they prohibit the use of artificial turf or any other synthetic surface that resembles grass. EXISTING LAW: 1)Defines the governing documents to mean the declaration, any other documents such as the bylaws, operating rules of the homeowners association (HOA), articles of incorporation, or articles of association, which govern the operation of the CID or HOA. (Civil Code Section 4150) 2)Makes the governing documents of a CID void and unenforceable if they do any of the following: a) Prohibit or include conditions that have the effect of prohibiting low water-using plants as a group; AB 349 Page 2 b) Restrict compliance with a water-efficient landscape ordinance adopted by a local government; or c) Prohibit compliance with any regulation or restriction on the use of water due to severe water shortage. (Civil Code Section 4735) FISCAL EFFECT: None. COMMENTS: Background : There are over 50,220 CIDs in the state that comprise over 4.8 million housing units, or 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, restricted by covenants and conditions that limit the use of common area and the separate ownership interests, and the management of common property and enforcement of restrictions by a HOA. CIDs are governed by the Davis Stirling Act (the Act) as well as the governing documents of the association, including bylaws, declaration, and operating rules. CIDs are run by volunteer boards of directors (boards) the members of which may have little or no experience managing real property or governing a nonprofit association and who must interpret the complex laws regulating CIDs. Boards must not only interpret the law, but enforce the restrictions and rules imposed by the governing documents and state law. AB 349 Page 3 Under existing law the governing documents of a CID cannot 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. AB 349 would prohibit an HOA from preventing a homeowner from installing artificial turf or synthetic grass. Existing law allows an HOA to apply landscaping rules that are included in the governing documents, as long as those rules do not have the effect of prohibiting the of use of low-water using plants or prevent a homeowner from complying with a local water-efficient landscaping ordinance. Under this bill, this provision would also apply to artificial turf or synthetic grass. As a result, an HOA could establish reasonable design and quality restrictions about the type of artificial turf a homeowner can use, including for example, the color and replacement requirements, as long as those restrictions did not effectively make it impossible for a homeowner to install artificial turf. Purpose of the bill : According to the author, "this year was the lowest snowpack ever recorded, and California is in the fourth year of a historic, prolonged and potentially devastating drought. Governor Brown issued an Executive Order on April 1, 2015, which, for the first time ever in California history, directs the State Water Resources Control Board to implement mandatory water reductions across the state to reduce water usage by 25 percent. One component of the Governor's Executive Order compels the replacement of 50 million square feet of lawns throughout the state with drought-tolerant landscaping. AB 349 Page 4 Given the extent and breadth of this drought situation, all reasonable opportunities to improve water savings and efficiency should be available to all communities. Among a wide variety of drought-tolerant landscaping are a variety of native plants and landscaping alternatives, including the installation of synthetic grass or artificial turf. According to the Department of Water Resources, landscape irrigation represents 43% of urban water use, and the installation of artificial turf or synthetic grass, in lieu of conventional lawns and landscapes, can directly reduce outdoor water use to help meet the Governor's mandated 25 percent statewide water use reduction. Today, the vast majority of Californians may elect to install artificial turf or synthetic grass in their single-family residential landscapes, and homeowners within common interest developments should also be afforded a similar opportunity within appropriate design, aesthetic, and drainage standards defined by the homeowners' association." Related legislation : SB 759 (Lieu) (2011): Would have made the governing documents of a CID void if they prohibited or included provisions that effectively prohibited the installation of artificial turf or any synthetic surface that resembles grass. This bill was vetoed by the Governor. The veto message stated: "I am returning Senate Bill 759 without my signature. Under this bill, homeowners associations that govern Common Interest Developments would be forced to approve the installation of Astro Turf. The decision about choosing synthetic turf instead of natural vegetation should be left to individual homeowners associations, not mandated by state law. For this reason, I am returning this bill." AB 349 Page 5 AB 1793 (Saldana) (2010): Would have made the governing documents of a CID void if they prohibited or included provisions that effectively prohibited the installation of artificial turf or any synthetic surface that resembles grass. This bill was vetoed by the Governor. The veto message stated: I am returning Assembly Bill 1793 without my signature. This bill would void a provision in the governing documents of a common interest development (CID) if it prohibits the use of artificial turf or any other synthetic surface that resembles grass in its landscaping rules and regulations. CIDs provide a system of self-governance through a community association, responsible for managing, maintaining, and repairing the common areas, and have the authority to enforce special rules. Decisions such as these regarding the use of artificial turf can be made by the homeowners and amended into their governing documents. For this reason I cannot sign this bill. Arguments in support: According to the sponsor, the San Diego Water Authority, "as we continue well into the fourth consecutive year of a prolonged drought situation in 2015 and possibly beyond, we believe that all reasonable opportunities to improve water savings efficiency should be available to communities. The use of synthetic turf is one method of reducing water consumption while still allowing property owners to incorporate expanses of green in their landscaping. We believe that AB 349 represents a responsible approach to balancing the advancement of water use efficiency in communities through the state while retaining important design and aesthetic oversight of the homeowners association." AB 349 Page 6 Arguments in Opposition : The Educational Community for Homeowners (ECHO) opposes AB 349 because of the "unknown health impacts that could be caused by synthetic turf" and supports additional study of the use of artificial turf. REGISTERED SUPPORT / OPPOSITION: Support San Diego County Water Authority (sponsor) Association of Water Agencies California Association of Realtors California Municipal Utilities Association Desert Water Agency Lakeside Water District Valley Water Municipal Water District AB 349 Page 7 Opposition Educational Community for Homeowners (ECHO) Analysis Prepared by:Lisa Engel / H. & C.D. / (916) 319-2085