BILL ANALYSIS                                                                                                                                                                                                    






          
                SENATE HOUSING & COMMUNITY DEVELOPMENT COMMITTEE
                      Senator Denise Moreno Ducheny, Chair


          Bill No:                             AB 1034Hearing:June  
          16, 2003
          Author:                              MullinFiscal: Yes
          Version:                              April 10,  
          2003Consultant: Mark Stivers

                         ENFORCEMENT OF BUILDING CODES
                                        
           Background and Existing Law  :

          Under the State Housing Law, all residential dwellings are  
          subject to building standards as adopted by the California  
          Building Standards Commission in the California Building  
          Standards Code (Title 24 of the California Code of  
          Regulations).

          Building codes are generally enforced by local building  
          officials, often as local ordinances.  When violations are  
          discovered or a nuisance conditions exists, a building  
          official sends the owner a letter notifying him or her of  
          the deficiency.  Owners are then generally given at least  
          30 days to correct the violation.  If violations remain  
          uncorrected after 30 days, the code officials may institute  
          any appropriate action or proceeding to correct building  
          code violations or abate nuisances.

          Among the various remedies for non-compliance, if the  
          violations are so extensive and of such a nature that the  
          health and safety of residents or the public is  
          substantially endangered, the enforcement agency, a tenant  
          or tenant association may petition the court to appoint a  
          receiver for the property.  Under an alternative code  
          section a court may also appoint a receiver if an owner has  
          violated orders, including orders to retrofit a building to  
          current codes, to correct conditions that endanger the  
          immediate health and safety of residents or the public in  
          the event of an earthquake.  A receiver effectively takes  
          control of the property, collecting rents, paying debts and  
          expenses, and making the necessary repairs to the property.  
           The receiver is discharged by the court when the  
          violations have been remedied and a complete accounting of  




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          all costs and repairs has been delivered to the court.

           Proposed Law  :

          Assembly Bill 1034 makes a number of changes to statutes  
          governing the enforcement of building standards under the  
          State Housing Law.  Specifically, the bill:

           Clarifies that local governments may collect any fees,  
            costs or charges incurred to enforce local ordinances  
            that implement state building and fire safety codes, in  
            addition to the codes and regulations themselves.
           Clarifies that local governments shall permit use of  
            original materials and the use of original methods of  
            construction are in compliance with building codes in  
            place at the time of initial construction.
           Allows local building officials to maintain a list and  
            make referrals to public [or publicly-funded] private  
            agencies that finance or assist an owner in  
            rehabilitating or repairing residential property.
           Allows local building officials to institute any  
            appropriate action to abate a nuisance after less than 30  
            days notice if necessary to abate or prevent an imminent  
            threat to health and safety.
           Requires building officials to give tenants notice of  
            substandard conditions as described in the Health and  
            Safety Code, as opposed to untenantable conditions as  
            described in the Civil Code.
           Allows local building officials to seek a receiver for  
            uncorrected building code violations under provisions  
            currently limited to seismic safety violations if the  
            code violations are "potentially hazardous to life or  
            health."
           Allows a court to deem a receiver acting under the  
            direction of the enforcement agency to a public officer.
           Allows local governments to hold hearings related to the  
            costs of nuisance abatement actions in accordance with  
            state regulations, in addition to Uniform Housing Code  
            adopted by the International Conference of Building  
            Officials.
           Allows a local government to require an individual or  
            corporate owner to provide a social security number or  
            tax identification number and other identifying  
            information if the agency anticipates that it will seek a  
            court order to deny business deductions on the property  
            for state tax purposes.




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           Clarifies that the sale of a property does not render  
            moot any administrative or judicial actions, including  
            those initiated by a receiver, to enforce the State  
            Housing Law.
           Requires an owner, within 5 days of the sale, recordation  
            or conveyance of a cited property, to record a Notice of  
            Conveyance of Substandard Property that includes the name  
            and address of the new owner and to provide the  
            enforcement agency with the name, address, and driver's  
            license number of all buyers and sellers with an interest  
            in the property greater than 5%.
           Requires an owner of a property with outstanding  
            citations to provide the enforcement agency with the  
            name, address and driver's license number of buyers and  
            sellers within five days of the sale or transfer.
           Provides that a buyer of a cited property is subject to  
            all recorded notices of violation in addition to recorded  
            notices of pending court actions.

           Comments  :

          1.   Purpose of the bill  .  According to the sponsor, the  
          Department of Housing and Community Development, AB 1034 is  
          intended to assist in preserving the stock of housing, in  
          providing adequate protection of renters, and in improving  
          the ability of local governments to obtain reimbursement  
          for their code enforcement efforts.  The bill is a result  
          of HCD's discussions with local code enforcement officials  
          over the last few years on how best to improve the  
          enforcement of building codes.  It identifies and corrects  
          various laws that are either out-of-date or which requires  
          strengthening because they no longer deter code violations.

          2.   Receivers  .  Under current law, a court may appoint a  
          receiver for substandard property in two separate  
          circumstances and under two separate code sections.  Health  
          and Safety Code Section 17980.1 allows for receiverships  
          when a property poses substantial seismic hazards.  Section  
          17980.7 allows for a receiver whenever the property  
          substantially endangers public health and safety.  This  
          bill allows local enforcement agencies to seek a  
          receivership for both types of substandard properties under  
          the procedures for Section 17980.1 which are currently  
          applicable only to seismic hazards.  While the two sections  
          are similar in most regards, building officials are  
          generally more familiar with the seismic safety procedures.  




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           In addition, Section 17980.1 allows the enforcement agency  
          to impose a priority lien on the property.

          In expanding the seismic safety receivership provisions to  
          cover other substandard properties, however, the bill sets  
          a lower legal threshold than currently exists with respect  
          to what conditions must be present for a jurisdiction to  
          seek a receivership.  Under current law, a property must  
          "substantially endanger public health and safety."  Under  
          the bill, the standard is only that the property be  
          "potentially hazardous to life or health."  Given the  
          seriousness of a receivership, maintaining the higher  
          standard may be more appropriate.  The committee may wish  
          to consider an amendment to maintain the requirement that a  
          property eligible for receivership "substantially endanger  
          public health and safety."
          
          3.   Receiver as a public officer  .  One provision of the  
          bill allows a court to deem a receiver working under the  
          direction of an enforcement agency a public officer.  The  
          primary benefit of this provision is to exempt such  
          local-government appointed receivers from bonding  
          requirements.

          4.   Technical corrections  .
           On page 4, line 9 strike the first "2" and insert "1".
           On page 4, line 20 strike ", if" and insert ".  The city,  
            county, or city and county may collect any fee, cost, or  
            charge incurred in any of the foregoing, if that"
           On page 6, line 5 strike "structure," and insert  
            "structure subject to this part"
           On page 6, line 11 strike the comma.
           On page 6, line 21 before "private" insert "publicly  
            funded"
           Renumber the second Section 17980.8 and subsequent  
            sections.

           Previous Actions  :

          Assembly Floor:                         73-0
          Assembly Appropriations:                24-0
          Assembly Housing and Community Development:   9-0
           
          Support and Opposition  :  (6/11/03)

           Support  :                           Department of Housing  




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          and Community Development (sponsor)
                   California Apartment Association
                   Western Center on Law and Poverty

           Opposition  :  None received