BILL NUMBER: AB 864 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 10, 2007
AMENDED IN ASSEMBLY JUNE 5, 2007
AMENDED IN ASSEMBLY JUNE 1, 2007
AMENDED IN ASSEMBLY MAY 1, 2007
AMENDED IN ASSEMBLY APRIL 16, 2007
AMENDED IN ASSEMBLY MARCH 27, 2007
INTRODUCED BY Assembly Member Davis
FEBRUARY 22, 2007
An act to amend Section 17980 Sections
17980 and 17991 of, and to add Section 17994 to, the Health and
Safety Code, relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
AB 864, as amended, Davis. Substandard buildings: new ownership
interest: registration.
(1) The State Housing Law regulates buildings used for human
habitation and requires specified local agencies to enforce building
standards.
Under existing law, if any sale or other transfer of property to a
3rd party occurs during the period between the issuance of a notice
of violation relating to substandard buildings and the abatement of
the violation, or any administrative or judicial actions related
thereto, the transferor is required to record a Notice of Conveyance
of Substandard Property with the county recorder where the property
is located, within 5 days after the sale or transfer occurs,
identifying the name and address of the buyer or transferee. The
notice is required to be executed with a signature that the
information is true and correct, under penalty of perjury.
Under existing law, any person who obtains an ownership interest
in any property after a notice of pendency of an action or proceeding
relating to substandard buildings was recorded with respect to the
property is subject to any order to correct the violation, including
time limitations, specified in the citation or other notice of
violation.
This bill would require a person or entity that acquires an
ownership interest in a property for which an enforcement agency has
recorded with the county recorder any of specified documents relating
to substandard building violations, to provide that enforcement
agency with specified information and documents , signed
under penalty of perjury , concurrently with the completion
of an agreement of sale, an exchange of property,
or closure of escrow. The bill would impose a state-mandated local
program by imposing additional duties upon enforcement agencies.
The bill would make impose specified civil
penalties for failure to comply with the
these reporting requirements a misdemeanor,
punishable by specified fines and terms of imprisonment in the county
jail . By creating a new crime, and by expanding
the scope of the existing crime of perjury, the bill would impose a
state-mandated local program. This bill would
authorize a public prosecutor to bring a civil action seeking a civil
penalty, and provide that the civil penalty shall be a lien on the
property and enforceable as a civil judgment.
The bill would exempt from these provisions real property owned by
a governmental entity and real property owned by a financial
institution, as specified, that has a recorded deed of trust on the
real property and acquires possession of the real property pursuant
to the terms and conditions of the loan. This bill would further
provide a 60-day exemption for a lender, as defined, to comply with
these provisions.
The bill would also delete a notice requirement specific to Los
Angeles County.
(2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that with regard to certain mandates no
reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall
be made pursuant to the statutory provisions noted above.
(2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17980 of the Health and Safety Code is amended
to read:
17980. (a) If any building is constructed, altered, converted, or
maintained in violation of any provision of, or in violation of, any
order or notice that gives a reasonable time to correct that
violation issued by an enforcement agency pursuant to this part, the
building standards published in the California Building Standards
Code, or other rules and regulations adopted pursuant to this part,
or if a nuisance exists in any building or upon the lot on which it
is situated, the enforcement agency shall, after 30 days' notice to
abate the nuisance or violation, or a notice to abate with a shorter
period of time if deemed necessary by the enforcement agency to
prevent or remedy an immediate threat to the health and safety of the
public or occupants of the structure, institute any appropriate
action or proceeding to prevent, restrain, correct, or abate the
violation or nuisance.
(b) (1) Whenever the enforcement agency has inspected or caused to
be inspected any building and has determined that the building is a
substandard building or a building described in Section 17920.10, the
enforcement agency shall commence proceedings to abate the violation
by repair, rehabilitation, vacation, or demolition of the building.
The enforcement agency shall not require the vacating of a
residential building unless it concurrently requires expeditious
demolition or repair to comply with this part, the building standards
published in the California Building Standards Code, or other rules
and regulations adopted pursuant to this part. The owner shall have
the choice of repairing or demolishing. However, if the owner chooses
to repair, the enforcement agency shall require that the building be
brought into compliance according to a reasonable and feasible
schedule for expeditious repair. The enforcement agency may require
vacation and demolition or may itself vacate the building, repair,
demolish, or institute any other appropriate action or proceeding, if
any of the following occurs:
(A) The repair work is not done within the period required by the
notice.
(B) The owner does not make a timely choice of repair or
demolition.
(C) The owner selects an option which cannot be completed within a
reasonable period of time, as determined by the enforcement agency,
for any reason, including, but not limited to, an outstanding
judicial or administrative order.
(2) In deciding whether to require vacation of the building or to
repair as necessary, the enforcement agency shall give preference to
the repair of the building whenever it is economically feasible to do
so without having to repair more than 75 percent of the dwelling, as
determined by the enforcement agency, and shall give full
consideration to the needs for housing as expressed in the local
jurisdiction's housing element.
(c) (1) Notwithstanding subdivision (b) and notwithstanding local
ordinances, tenants in a residential building shall be provided
copies of any of the following:
(A) The notice of any violation described in subdivision (a) that
affects the health and safety of the occupants and that causes the
building to be substandard pursuant to Section 17920.3 or in
violation of Section 17920.10.
(B) An order of the code enforcement agency issued after
inspection of the premises declaring the dwelling to be in violation
of any provision described in subdivision (a).
(C) The enforcement agency's decision to repair or demolish.
(D) The issuance of a building or demolition permit following the
abatement order of an enforcement agency.
(2) Each document provided pursuant to paragraph (1) shall be
provided to each affected residential unit by the enforcement agency
that issued the order or notice, in the manner prescribed by
subdivision (a) of Section 17980.6.
(d) All notices issued by the enforcement agency to correct
violations or to abate nuisances shall contain a provision notifying
the owner that, in accordance with Sections 17274 and 24436.5 of the
Revenue and Taxation Code, a tax deduction may not be allowed for
interest, taxes, depreciation, or amortization paid or incurred in
the taxable year.
(e) The enforcement agency may charge the owner of the building
for its postage or mileage cost for sending or posting the notices
required to be given by this section.
SEC. 2. Section 17991 of the Health and
Safety Code is amended to read:
17991. (a) The sale or other transfer of property to a third
party shall not render moot an administrative or judicial action or
proceeding pursuant to this article, including an action under
Section 17982, instituted by an enforcement agency, or a receiver on
behalf of an enforcement agency, against the owner of record on the
date a citation for, or other notice of, a violation of this part was
issued.
(b) In the event of any sale or other transfer of property to a
third party during the period between the issuance of the notice of
violation and the abatement of the violation, or any administrative
or judicial actions related thereto, within five days after the sale
or transfer occurs, the transferor shall record a Notice of
Conveyance of Substandard Property with the county recorder where the
property is located, identifying the name and address of the buyer
or transferee and executed with a signature that the information is
true and correct, under penalty of perjury.
(c) In the event of any sale of other transfer of property to a
third party during the period between the issuance of the notice of
violation and the abatement of the violation, or any administrative
or judicial actions related thereto, the transferor shall provide all
of the following information to the enforcement agency within five
days after the sale or transfer occurs:
(1) If the seller or transferor is not an individual person, the
name, address, and driver's license number or identification card
number of each individual who has an interest in excess of 5 percent
in the entity which is selling or transferring the property.
(2) If the buyer or transferee is an individual person, the name,
address, and driver's license number or identification number of that
individual.
(3) If the buyer or transferee is not an individual person, the
name, address, and driver's license number or identification card
number of each individual who has an interest in excess of 5 percent
in the entity that is the buyer or transferee of the property.
SEC. 2. SEC. 3. Section 17994 is
added to the Health and Safety Code, to read:
17994. (a) This section applies to a property for which an
enforcement agency has recorded with the county recorder any of the
following documents:
(1) A notice of pending action pursuant to Section 17985.
(2) A notice of substandard conditions or a notice of substandard
building pursuant to a local ordinance.
(3) A document stating that a building is uninhabitable.
(b) Concurrent with the completion of an agreement of
sale, exchange of property, or closure of escrow, a person
who acquires an ownership interest in a property that is subject to
this section shall provide the enforcement agency with all of the
following:
(1) A notarized document containing the following information:
(A) The person's name.
(B) The names of any coowners.
(C) The address of any person identified under subparagraph (A) or
(B). The address shall not be a post office box or other mailbox
number. If the property is vacant, the address provided under this
paragraph shall not be the address of the property.
(D) The telephone number, fax number, and e-mail address of any
person identified under subparagraph (A) or (B).
(E) The address of the subject property.
(F) The date of the transfer.
(G) A plan of correction for the substandard conditions that
includes estimates of a timeline, costs of repair, and available
financial resources, or a demolition plan that is in compliance with
local law, and includes estimates of a timeline and, if applicable,
relocation of tenants. Proof of liability insurance, if any, shall
also be provided.
(2) An identification document, and the expiration date of that
document. The identification document shall contain the name, date of
birth, description, and picture of the person, and shall be issued
by the federal government, the State of California, another state, a
county, a municipal government, or another country as provided in
this paragraph. The identification document may be, but is not
limited to, a driver's license, an identification card, or an
identification card issued to a member of the United States Armed
Forces. The identification document may also be a consulate
identification card issued by another country to its citizens and
nationals, if that identification card has been approved as valid
identification by the city or county where the property is located,
or a passport issued by a foreign government.
(3) Verification under penalty of perjury that the information
provided in the documents submitted under this subdivision is true
and correct.
(c) Within 30 days of the completion of sale, exchange of
property, or closure of escrow, a plan of correction shall be
submitted to the enforcement agency for the substandard conditions
that includes estimates of a timeline, costs of repair, and available
financial resources, or a demolition plan that is in compliance with
local law, and includes estimates of a timeline and, if applicable,
relocation of tenants. Proof of liability insurance, if any, shall
also be provided.
(c)
(d) If the entity that acquires an ownership interest
in the property is a corporation, limited liability company,
partnership, limited partnership, trust, or real estate investment
trust, the information required under subdivision (b) shall be
supplied for the following persons:
(1) For a corporation, a corporate officer.
(2) For a limited liability company, the managing or
administrative member.
(3) For a partnership or a limited partnership, limited and
general partners.
(4) For a trust, a trustee.
(5) For a real estate investment trust, a general partner or an
officer.
(d)
(e) If the person or entity that acquires an ownership
interest in the property resides or is domiciled outside this state,
the person or entity shall designate for the purposes of this section
a natural person who resides in this state and who manages the
property. This designation shall be accompanied by a notarized
statement by the designated person that he or she accepts the
designation.
(e)
(f) (1) The enforcement agency, upon request, may
disclose to the subject property's tenants, or any tenant's
association or organization, the name and address of the person or
entity that acquires an ownership interest in the property.
(2) The enforcement agency shall not disclose to a member of the
public the information furnished under subparagraph (D) of paragraph
(1) of, or paragraph (2) of, subdivision (b), or subdivision (c),
unless so ordered by a court of competent jurisdiction.
(f)
(g) If the property has 16 units or more, and any
portion of the property is occupied, the person who acquires an
ownership interest shall post the information required under
subparagraphs (A) to (F), inclusive, of paragraph (1) of subdivision
(b), within 15 days after the date of sale or other transfer of the
property, on a notice that is typed in not less than a 20-point font,
and is placed in a locked bulletin board that is located on the
property, affixed in a visible and conspicuous location, and is not
more than five feet above the ground.
(g)
(h) Nothing in this section shall prevent local
government from adopting and enforcing laws consistent with
this section. When local laws that duplicate or
supplement this section, this section. This
section shall be construed as providing alternative remedies
and not as preempting the field of the subject matter.
(h)
(i) Notwithstanding Chapter 6 (commencing with Section
17995), a person or entity that fails to comply with this section or
knowingly provides false information to an enforcement
agency is guilty of a misdemeanor and shall be punished by a
term of imprisonment in the county jail for a period of not more
than one year, or by a fine of not more than ten thousand dollars
($10,000), or by both the term of imprisonment and the fine.
shall be subject to a civil penalty for each violation
in the minimum amount of two thousand five hundred dollars ($2,500)
and the maximum amount of twenty-five thousand dollars ($25,000). An
action for a civil penalty under this provision may be brought by any
public prosecutor in the name of the people of the State of
California and the penalty imposed shall be a lien on the property
and enforceable as a civil judgment.
(i)
(j) A person or entity that is not in compliance with
this section shall not demand rent, collect rent, issue a notice of
rent increase, or issue a three-day notice to pay rent or quit
pursuant to subdivision (2) of Section 1161 of the Code of Civil
Procedure.
(j)
(k) This section does not apply to real property owned
by either of the following:
(1) A governmental entity.
(2) A financial institution that has a recorded deed of trust on
the real property that secures a loan and acquires possession of the
real property pursuant to the terms and conditions of the loan. For
the purposes of this section, "financial institution" is a bank,
trust company, savings association, savings and loan association,
industrial bank, finance lender in this state, residential mortgage
lender, or credit union that is authorized to transact business under
federal law or the laws of this state.
(l) A lender other than a financial institution that has a
recorded deed of trust on the real property securing a loan and that
acquires possession of the real property through judicial or
nonjudicial foreclosure pursuant to the terms and conditions of the
loan shall be exempt from this section for 60 days after acquiring
possession of the real property. For purposes of this subdivision,
"lender" is a beneficiary under a deed of trust made or arranged by a
financial institution or real estate broker.
SEC. 3. No reimbursement is required by this
act pursuant to Section 6 of Article XIII B of the California
Constitution for certain costs that may be incurred by a local agency
or school district because, in that regard, this act creates a new
crime or infraction, eliminates a crime or infraction, or changes the
penalty for a crime or infraction, within the meaning of Section
17556 of the Government Code, or changes the definition of a crime
within the meaning of Section 6 of Article XIII B of the California
Constitution.
However, if the Commission on State Mandates determines that this
act contains other costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division 4 of
Title 2 of the Government Code.
SEC. 4. If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.