BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 349


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          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;








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             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. 








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          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.  










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          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."








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          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."    










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           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 








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          Opposition


          Educational Community for Homeowners (ECHO) 




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