BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2376
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 2376 (Bates)
          As Amended July 6, 2004
          Majority vote
           
           ----------------------------------------------------------------- 
          |ASSEMBLY:  |76-0 |(May 20, 2004)  |SENATE: |39-0 |(July 29,      |
          |           |     |                |        |     |2004)          |
           ----------------------------------------------------------------- 
            
           Original Committee Reference:    H. & C.D.  

           SUMMARY  :  Requires a homeowner association to provide a fair and  
          reasonable process for reviewing a request by a homeowner for a  
          physical alteration to their unit or common area. 

           The Senate amendments  :

          1)Require a homeowner association to comply with provisions of  
            the Fair Employment and Housing Act when reviewing a request  
            by a homeowner for a physical alteration to their unit or the  
            common area.

          2)Add double joining language to avoid a conflict with AB 1836  
            (Harman), pending in the Senate.

          3)Make technical non-substantive amendments.

           AS PASSED BY THE ASSEMBLY  , this bill required a homeowner  
          association to provide a fair and reasonable process for  
          reviewing a request by a homeowner for a physical alteration to  
          their unit or the common area.  Specifically,  this bill  :  

          1)Required that a homeowner association provide within their  
            governing documents a fair, reasonable and expeditious process  
            for reviewing proposed physical design alterations by a  
            member.

          2)Required that a homeowner association provide within their  
            governing documents a prompt deadline for responding to a  
            request by a homeowner to make a physical alteration to their  
            unit or common area. 

          3)Required that a homeowner association provide within their  
            governing documents a maximum time for responding to an  








                                                                  AB 2376
                                                                  Page  2

            application or request for reconsideration from a homeowner  
            applying to make a physical alteration to their unit or common  
            area. 

          4)Required that a decision on the proposed change be made in a  
            good faith manner.

          5)Required a decision to be made in writing and if denying a  
            request to include a description of why the proposal was  
            disapproved and the process for seeking reconsideration by the  
            board of directors.

          6)Required that a homeowner association provide members an  
            annual notice of the requirements for approval of a physical  
            change to a unit.  Required the notice to include the types of  
            changes that require approval and the procedure used to review  
            proposed changes.   

          7)Provided for the right of appeal at an open meeting of the  
            board of directors unless the denial was by the board or a  
            body that has the same membership as the board of directors,  
            during an open meeting.

          8)Provided contingent enactment language.  

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  The governing documents of many homeowner  
          associations (association) require approval of the association  
          before a homeowner can make a physical change to his or her  
          home.   For example, a homeowner might be required to obtain  
          association approval before adding a room, choosing a color of  
          exterior paint, or planting flowers in a front yard.  This bill  
          addresses the impression by many homeowners that the process for  
          approval may be capricious or arbitrary.

          This bill is contingent upon passage of AB 1836, which would  
          implement the California Law Review Commissions' recommendations  
          with regard to alternative dispute resolution in common interest  
          developments.  

          AB 2376 was amended in the Senate to make clear that a homeowner  
          association must comply with fair housing law when making a  
          decision in regard to proposed physical alterations of a  
          homeowners' unit or common area.  








                                                                 AB 2376
                                                                  Page  3

           

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


                                                                FN: 0006872