BILL NUMBER: AB 2376 CHAPTERED
BILL TEXT
CHAPTER 346
FILED WITH SECRETARY OF STATE AUGUST 30, 2004
APPROVED BY GOVERNOR AUGUST 27, 2004
PASSED THE ASSEMBLY AUGUST 12, 2004
PASSED THE SENATE JULY 29, 2004
AMENDED IN SENATE JULY 6, 2004
AMENDED IN SENATE JUNE 15, 2004
AMENDED IN ASSEMBLY MAY 12, 2004
INTRODUCED BY Assembly Member Bates
(Coauthors: Assembly Members Harman, Maze, and Pacheco)
(Coauthor: Senator Oller)
FEBRUARY 19, 2004
An act to amend Sections 1357.120 and 1373 of, and to add Section
1378 to, the Civil Code, relating to common interest developments.
LEGISLATIVE COUNSEL'S DIGEST
AB 2376, Bates. Common interest developments: architectural
review.
The Davis-Stirling Common Interest Development Act defines and
regulates common interest developments. The act requires that a
common interest development have a recorded declaration, and the act
defines governing documents as the declaration, and any other
documents, such as the bylaws, operating rules, and articles of
incorporation, which govern the operation of the development. The
governing documents may regulate the physical features of the
development. Existing law requires that common interest development
operating rule changes satisfy certain criteria and applies these
requirements only to operating rules relating to specified subjects.
Existing law exempts common interest developments that are limited
to industrial or commercial uses, as specified, from the application
of certain provisions of the act.
This bill would require the procedures of common interest
development associations for reviewing and approving proposed
physical changes to a member's separate interest to satisfy the
requirements regarding operating rules described above.
This bill would revise the definition of a common interest
development that is limited to industrial or commercial use for
purposes of exempting that development from certain provisions of the
act. The bill would include in these exemptions provisions
regarding physical changes in a separate interest or the common area,
as specified.
The bill would provide that, if a common interest development
association's governing documents require association approval before
an owner may make a physical change to the owner's separate interest
or to the common area, the association must satisfy specified
requirements in reviewing a proposed change, including providing a
fair, reasonable, and expeditious procedure for making its decision,
as specified, and making a decision on a proposed change in writing.
The bill would provide that an applicant whose proposal is denied is
entitled to reconsideration at an open meeting of the board of
directors of the association, except as specified. The bill would
provide that its provisions do not authorize a change to the common
area that is inconsistent with the association's governing documents
or governing law. The provisions of the bill would not apply to
common interest developments that are limited to industrial or
commercial uses, as specified. The bill would require an association
to provide notice annually of any requirements for association
approval of physical changes to property, as specified.
The bill would also incorporate additional changes to Section
1357.120 proposed by AB 1836 and this bill to take effect only if
both bills are enacted and become effective on or before January 1,
2005, and this bill is enacted last.
This bill , in addition, would make one of its provisions
operative only if AB 1836 is enacted and becomes effective on or
before January 1, 2005, and adds a specified section to the Civil
Code.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1357.120 of the Civil Code is amended to read:
1357.120. (a) Sections 1357.130 and 1357.140 only apply to an
operating rule that relates to one or more of the following subjects:
(1) Use of the common area or of an exclusive use common area.
(2) Use of a separate interest, including any aesthetic or
architectural standards that govern alteration of a separate
interest.
(3) Member discipline, including any schedule of monetary
penalties for violation of the governing documents and any procedure
for the imposition of penalties.
(4) Any standards for delinquent assessment payment plans.
(5) Any procedures adopted by the association for resolution of
assessment disputes.
(6) Any procedures for reviewing and approving or disapproving a
proposed physical change to a member's separate interest or to the
common area.
(b) Sections 1357.130 and 1357.140 do not apply to the following
actions by the board of directors of an association:
(1) A decision regarding maintenance of the common area.
(2) A decision on a specific matter that is not intended to apply
generally.
(3) A decision setting the amount of a regular or special
assessment.
(4) A rule change that is required by law, if the board of
directors has no discretion as to the substantive effect of the rule
change.
(5) Issuance of a document that merely repeats existing law or the
governing documents.
SEC. 1.5. Section 1357.120 of the Civil Code is amended to read:
1357.120. (a) Sections 1357.130 and 1357.140 only apply to an
operating rule that relates to one or more of the following subjects:
(1) Use of the common area or of an exclusive use common area.
(2) Use of a separate interest, including any aesthetic or
architectural standards that govern alteration of a separate
interest.
(3) Member discipline, including any schedule of monetary
penalties for violation of the governing documents and any procedure
for the imposition of penalties.
(4) Any standards for delinquent assessment payment plans.
(5) Any procedures adopted by the association for resolution of
disputes.
(6) Any procedures for reviewing and approving or disapproving a
proposed physical change to a member's separate interest or to the
common area.
(b) Sections 1357.130 and 1357.140 do not apply to the following
actions by the board of directors of an association:
(1) A decision regarding maintenance of the common area.
(2) A decision on a specific matter that is not intended to apply
generally.
(3) A decision setting the amount of a regular or special
assessment.
(4) A rule change that is required by law, if the board of
directors has no discretion as to the substantive effect of the rule
change.
(5) Issuance of a document that merely repeats existing law or the
governing documents.
SEC. 2. Section 1373 of the Civil Code is amended to read:
1373. (a) The following provisions do not apply to a common
interest development that is limited to industrial or commercial uses
by zoning or by a declaration of covenants, conditions, and
restrictions that has been recorded in the official records of each
county in which the common interest development is located:
(1) Section 1356.
(2) Article 4 (commencing with Section 1357.100) of Chapter 2 of
Title 6 of Part 4 of Division 2.
(3) Subdivision (b) of Section 1363.
(4) Section 1365.
(5) Section 1365.5.
(6) Subdivision (b) of Section 1366.
(7) Section 1366.1.
(8) Section 1368.
(9) Section 1378.
(b) The Legislature finds that the provisions listed in
subdivision (a) are appropriate to protect purchasers in residential
common interest developments, however, the provisions may not be
necessary to protect purchasers in commercial or industrial
developments since the application of those provisions could result
in unnecessary burdens and costs for these types of developments.
SEC. 3. Section 1378 is added to the Civil Code, to read:
1378. (a) This section applies if an association's governing
documents require association approval before an owner of a separate
interest may make a physical change to the owner's separate interest
or to the common area. In reviewing and approving or disapproving a
proposed change, the association shall satisfy the following
requirements:
(1) The association shall provide a fair, reasonable, and
expeditious procedure for making its decision. The procedure shall
be included in the association's governing documents. The procedure
shall provide for prompt deadlines. The procedure shall state the
maximum time for response to an application or a request for
reconsideration by the board of directors.
(2) A decision on a proposed change shall be made in good faith
and may not be unreasonable, arbitrary, or capricious.
(3) A decision on a proposed change shall be consistent with any
governing provision of law, including, but not limited to, the Fair
Employment and Housing Act (Part 2.8 (commencing with Section 12900)
of Division 3 of Title 2 of the Government Code.
(4) A decision on a proposed change shall be in writing. If a
proposed change is disapproved, the written decision shall include
both an explanation of why the proposed change is disapproved and a
description of the procedure for reconsideration of the decision by
the board of directors.
(5) If a proposed change is disapproved, the applicant is entitled
to reconsideration by the board of directors of the association that
made the decision, at an open meeting of the board. This paragraph
does not require reconsideration of a decision that is made by the
board of directors or a body that has the same membership as the
board of directors, at a meeting that satisfies the requirements of
Section 1363.05.
(b) Nothing in this section authorizes a physical change to the
common area in a manner that is inconsistent with an association's
governing documents or governing law.
(c) An association shall annually provide its members with notice
of any requirements for association approval of physical changes to
property. The notice shall describe the types of changes that
require association approval and shall include a copy of the
procedure used to review and approve or disapprove a proposed change.
SEC. 3.5. Section 1378 is added to the Civil Code, to read:
1378. (a) This section applies if an association's governing
documents require association approval before an owner of a separate
interest may make a physical change to the owner's separate interest
or to the common area. In reviewing and approving or disapproving a
proposed change, the association shall satisfy the following
requirements:
(1) The association shall provide a fair, reasonable, and
expeditious procedure for making its decision. The procedure shall
be included in the association's governing documents. The procedure
shall provide for prompt deadlines. The procedure shall state the
maximum time for response to an application or a request for
reconsideration by the board of directors.
(2) A decision on a proposed change shall be made in good faith
and may not be unreasonable, arbitrary, or capricious.
(3) A decision on a proposed change shall be consistent with any
governing provision of law, including, but not limited to, the Fair
Employment and Housing Act (Part 2.8 (commencing with Section 12900)
of Division 3 of Title 2 of the Government Code.
(4) A decision on a proposed change shall be in writing. If a
proposed change is disapproved, the written decision shall include
both an explanation of why the proposed change is disapproved and a
description of the procedure for reconsideration of the decision by
the board of directors.
(5) If a proposed change is disapproved, the applicant is entitled
to reconsideration by the board of directors of the association that
made the decision, at an open meeting of the board. This paragraph
does not require reconsideration of a decision that is made by the
board of directors or a body that has the same membership as the
board of directors, at a meeting that satisfies the requirements of
Section 1363.05. Reconsideration by the board does not constitute
dispute resolution within the meaning of Section 1363.820.
(b) Nothing in this section authorizes a physical change to the
common area in a manner that is inconsistent with an association's
governing documents or governing law.
(c) An association shall annually provide its members with notice
of any requirements for association approval of physical changes to
property. The notice shall describe the types of changes that
require association approval and shall include a copy of the
procedure used to review and approve or disapprove a proposed change.
SEC. 4. Section 1.5 of this bill incorporates amendments to
Section 1357.120 of the Civil Code proposed by both this bill and AB
1836. It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2005, (2) each bill
amends Section 1357.120 of the Civil Code, and (3) this bill is
enacted after AB 1836, in which case Section 1 of this bill shall not
become operative.
SEC. 5. Section 3.5 of this bill shall only become operative if
Assembly Bill 1836 is enacted and becomes effective on or before
January 1, 2005, and adds Section 1363.820 to the Civil Code, in
which case Section 3 of this bill shall not become operative.