BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 853|
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                                 THIRD READING


          Bill No:  SB 853
          Author:   Kehoe (D)
          Amended:  4/7/05
          Vote:     21

           
           SENATE TRANSPORTATION & HOUSINGCOMMITTEE  :  11-2, 4/5/05
          AYES:  Torlakson, McClintock, Cedillo, Ducheny, Kehoe,  
          Lowenthal, 
               Machado, Maldonado, Murray, Simitian, Soto
          NOES:  Ashburn, Runner
          NO VOTE RECORDED:  Margett


           SUBJECT  :    Common interest developments:  architectural  
          review

           SOURCE  :     California Law Revision Commission


           DIGEST  :    This bill (1) clarifies that any decision of an  
          architectural review entity within a common interest  
          development may not violate any state laws, including  
          building codes or other applicable laws governing land use  
          or public safety, and (2) updates references to obsolete  
          code sections.

           ANALYSIS  :    The Davis-Stirling Common Interest Development  
          Act defines and regulates common interest developments  
          (CID).  Existing law requires that when 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  
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          area, the association must satisfy specified provisions.   
          Among these provisions is a requirement that a decision on  
          a proposed change be consistent with any governing  
          provision of law, including the Fair Employment and Housing  
          Act.

          Existing law provides that a common interest development  
          association has standing to institute, defend, settle, or  
          intervene in specified civil proceedings in its own name,  
          and addresses the reduction of damages for comparative  
          fault in this context.

          In general, homeowner associations have wide discretion to  
          regulate the appearance of individual interests and the  
          conduct of its member.  Under current law, the declarations  
          of an association are enforceable as equitable servitudes  
          "unless unreasonable."  In  Nahrstedt v. Lakeside Village  
          Condominium Association, Incorporated  , 8 Cal. 4th 361  
          (1994), the California Supreme Court opined that the  
          "unless unreasonable" standard means that "restrictions  
          should be enforced unless they are wholly arbitrary,  
          violate a public policy, or impose a burden on the use of  
          affected land that far outweighs any benefit."

          When reviewing architectural review matters, a homeowners  
          association must provide a fair, reasonable and expeditious  
          procedure and make decisions, in good faith.  In addition,  
          decisions must be consistent with "any governing provision  
          of law," including the accessibility requirements of fair  
          housing laws.

          This bill clarifies that the architectural review decisions  
          of a CID must not violate any governing provision of law,  
          notwithstanding contrary provisions of the CID's own  
          governing documents.  The bill will further clarify that  
          such decisions must be consistent with laws governing  
          building codes, land use, or public safety.  

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No

           SUPPORT  :   (Verified  4/19/05)

          The California Law Revision Commission (source)

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           ARGUMENTS IN SUPPORT  :    

          According to the Senate Transportation and Housing  
          Committee, "the California Law Revision Commission has  
          sponsored SB 853 in order to avoid disputes and uncertainty  
          that can result when an association's architectural  
          restrictions conflict with land use or public safety law.   
          For example, fire safety law may require that vegetation be  
          cleared within a certain distance of structures in  
          fire-prone areas.  This requirement might conflict with an  
          association landscaping restriction.  In such a case, the  
          association may be unsure whether its restriction is  
          preempted and may feel duty-bound to enforce its  
          restriction until a court rules on the enforceability of  
          the restriction.  This uncertainty can lead to unnecessary  
          litigation and expense and may result in perpetuation of an  
          unlawful and unsafe condition.  According to the  
          commission, an association architectural restriction should  
          be preempted by governing land use and public safety law as  
          a matter of policy."


          JJA:do  4/20/05   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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