BILL NUMBER: AB 1493 CHAPTERED 09/05/00 CHAPTER 291 FILED WITH SECRETARY OF STATE SEPTEMBER 5, 2000 APPROVED BY GOVERNOR SEPTEMBER 1, 2000 PASSED THE ASSEMBLY AUGUST 21, 2000 PASSED THE SENATE AUGUST 18, 2000 AMENDED IN SENATE JUNE 14, 2000 AMENDED IN SENATE MAY 30, 2000 AMENDED IN SENATE FEBRUARY 17, 2000 AMENDED IN ASSEMBLY JANUARY 19, 2000 AMENDED IN ASSEMBLY JANUARY 3, 2000 AMENDED IN ASSEMBLY APRIL 7, 1999 INTRODUCED BY Assembly Member Nakano (Principal coauthor: Senator Burton) (Coauthors: Senators Morrow and Peace) FEBRUARY 26, 1999 An act to amend Section 12956.1 of the Government Code, relating to public records, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST AB 1493, Nakano. Recording documents: restrictive covenants. (1) Existing law authorizes any person holding an interest in property to request that the county recorder remove specified unlawful restrictive covenant language contained in a declaration, governing document, or deed associated with that property pursuant to specified provisions and requires the county recorder, title insurance company, escrow company, real estate broker, real estate agent, or association that provides the specified document to any person to place a cover page or stamp in at least 20-point boldface type that contains a specified statement if the document includes such a restrictive covenant. This bill would require that the specified statement be in 14-point boldface type and would revise the statement to include a provision stating that lawful restrictions under state and federal law on the age of occupants in senior housing or housing for older persons shall not be construed as restrictions based on familial status. The bill would also delete that part of the statement that authorizes the county recorder to remove the restrictive covenant language upon the request of any person who holds any interest in the property. (2) Existing law also authorizes any person holding an interest in property that is the subject of any recorded document to require the county recorder to remove any blatant racial restrictive covenant contained in the document upon application pursuant to specified procedures. This bill instead would provide a new procedure whereby any person who holds an ownership interest of record in the property may apply in writing to the Department of Fair Employment and Housing for a determination of whether a restrictive covenant violates the fair housing laws and is void. The bill would also require the department to process the application within 90 days and provide the applicant with a specified written statement, and would authorize the applicant to strike out the void restrictive covenant and have the modified document recorded. (3) This bill would declare that it is to take effect immediately as an urgency statute. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 12956.1 of the Government Code is amended to read: 12956.1. (a) As used in this section, "association," "governing documents," and "declaration" have the same meanings as set forth in Section 1351 of the Civil Code. (b) (1) A county recorder, title insurance company, escrow company, real estate broker, real estate agent, or association that provides a copy of a declaration, governing document, or deed to any person shall place a cover page or stamp on the first page of the previously recorded document or documents stating, in at least 14-point boldface type, the following: "If this document contains any restriction based on race, color, religion, sex, familial status, marital status, disability, national origin, or ancestry, that restriction violates state and federal fair housing laws and is void, and may be removed pursuant to Section 12956.1 of the Government Code. Lawful restrictions under state and federal law on the age of occupants in senior housing or housing for older persons shall not be construed as restrictions based on familial status." (2) The requirements set forth in paragraph (1) shall not apply to documents being submitted for recordation to a county recorder. (c) (1) Any person who holds an ownership interest of record in property that he or she believes is the subject of a restrictive covenant referred to in subdivision (b), may file an application with the Department of Fair Employment and Housing requesting a determination of whether the restrictive covenant violates the fair housing laws and is void. Any application pursuant to this subdivision shall be in writing, contain a copy of the document, and identify the location within the document where the restrictive covenant is located. (2) If the department determines that the document contains a restrictive covenant that violates the law, it shall provide the applicant with a written statement entitled "RESTRICTIVE COVENANT MODIFICATION" that sets forth this determination, including the page and line numbers of any void restrictive covenant, which statement may be recorded with the document pursuant to paragraph (3). The department shall process all applications within 90 days. The department shall include the following language at the end of the written statement which the applicant may complete and sign for purposes of recording pursuant to paragraph (3): I (We) __________ have an ownership interest of record in the property located at __________ (Address) that is the subject of this document. The Department of Fair Employment and Housing has determined that this document contains a restrictive covenant that violates the law and is void. Pursuant to Section 12956.1 of the Government Code, this document is being recorded solely for the purpose of eliminating that restrictive covenant as shown on page(s) __ of the document recorded on __ (Date) in book __ and page __, or instrument number __ of the official records of the County of _____. No other changes have been made. If executed at any place, within or without this state: I certify (or declare) under penalty of perjury under the laws of the State of California that the foregoing is true and correct. ___________________ _______________________ (Date and Place) (Owner(s) Signature(s)) (3) The applicant may strike out a void restrictive covenant identified by the department, complete and attach a copy of the written statement from the department to the front of the document, and cause the modified document to be recorded, if provided that all other requirements of recordation are met, including the payment of any recordation fee. (d) Subdivision (c) of this section shall not apply to persons holding an ownership interest in property that is part of a common interest development as defined in subdivision (c) of Section 1351 of the Civil Code, and where the board of directors of that common interest development is subject to the requirements of subdivision (b) of Section 1352.5 of the Civil Code. (e) The provisions of this section shall have no bearing or effect upon Section 12955.9. (f) Any person who records a document for the express purpose of adding a racially restrictive covenant is guilty of a misdemeanor. The county recorder shall not incur any liability for recording the document. Notwithstanding any other provision of law, a prosecution for a violation of this subdivision shall commence within three years after the discovery of the recording of the document. SEC. 2. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to ensure a uniform recording procedure so that all counties will respond in the same manner to requests to modify restrictive covenants and housing deeds, it is necessary that this act take effect immediately.