BILL ANALYSIS �
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THIRD READING
Bill No: AB 2314
Author: Carter (D), et al.
Amended: 7/2/12 in Senate
Vote: 21
SENATE TRANSPORTATION & HOUSING COMM. : 8-0, 6/12/12
AYES: DeSaulnier, Gaines, Harman, Kehoe, Lowenthal,
Pavley, Rubio, Simitian
NO VOTE RECORDED: Wyland
SENATE JUDICIARY COMMITTEE : 4-0, 6/26/12
AYES: Evans, Harman, Corbett, Leno
NO VOTE RECORDED: Blakeslee
ASSEMBLY FLOOR : 71-0, 5/3/12 - See last page for vote
SUBJECT : Maintenance of foreclosed properties
SOURCE : Attorney General Kamala Harris
DIGEST : This bill provides certain purchasers of
foreclosed residential properties 60 days to remedy code
violations before being subject to enforcement actions and
eliminates the sunset on existing provisions requiring an
owner of a foreclosed, vacant, residential property to
maintain the property.
Senate Floor Amendments of 7/2/12 make a technical
correction and add a coauthor.
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ANALYSIS : Under Health and Safety Code Section 17980, a
local government enforcement agency may issue a notice of
violation to the owner of a residential property for the
failure to comply with building codes or for the existence
of a nuisance on the property. After giving the owner 30
days' notice to abate the violation or nuisance, or a
shorter period of time if deemed necessary to prevent or
remedy an immediate threat to the health and safety of the
public or occupants of the structure, the enforcement
agency may institute any appropriate action or proceeding
to prevent, restrain, correct, or abate the violation or
nuisance.
These actions or proceedings may include civil fines,
prosecution of the owner for a misdemeanor, and in the case
of a property that meets the definition of a substandard
building, court appointment of a receiver. If a court
appoints a receiver, the receiver takes full and complete
control of the property, collects rents, and pays all
operating expenses. The receiver also hires contractors to
remedy the code violations. For his/her services, the
receiver is entitled to the same fees, commissions, and
necessary expenses as receivers in actions to foreclose
mortgages. If the rents and other income from the property
are insufficient to cover the costs of repair, the receiver
may borrow funds and, with court approval, secure that debt
and any unrecovered costs and fees of the receiver with a
lien against the property.
A different section of law in the Civil Code, until January
1, 2013, requires the owner of a foreclosed, vacant,
residential property to maintain the property. In this
context, maintaining the property means caring for the
exterior of the property, including, but not limited to,
preventing excessive foliage growth that diminishes the
value of surrounding properties, preventing trespassers or
squatters from remaining on the property, preventing
mosquito larvae from growing in standing water, and
preventing other conditions that create a public nuisance.
After giving the owner at least 30 days to remedy the
violations, or less if conditions on the property threaten
public health or safety, a governmental entity may impose a
fine of up to $1,000 per day for a violation of these
requirements. The governmental agency must allow for a
hearing and the opportunity to contest any fine imposed.
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Existing law directs these fine revenues to local nuisance
abatement programs.
This bill:
1. Provides that if a person has purchased and is in the
process of diligently abating any violation at a
residential property that has been foreclosed on or
after January 1, 2008, an enforcement agency shall not
commence any action or proceeding until at least 60 days
after the person takes title to the property, unless a
shorter period of time is deemed necessary by the
enforcement agency in its sole discretion to prevent or
remedy an immediate threat to the health and safety of
the neighboring community, the public or occupants of
the structure.
2. Provides that if an entity releases a lien securing a
deed of trust or mortgage on a property for which a
notice of pendency of action has been recorded, as
specified, it shall notify in writing the enforcement
agency that issued the order or notice within 30 days of
releasing the lien.
3. Allows a receiver for substandard residential property
to seek a court order ordering the property owner to pay
all unrecovered costs associated with a receivership.
4. Deletes the sunset on the Civil Code provisions
requiring an owner of a foreclosed, vacant, residential
property to maintain the property, and provides that
fines and penalties collected under those provisions may
be directed to legal abatement proceedings.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 6/28/12)
Attorney General Kamala Harris (source)
American Federation of State, County and Municipal
Employees
California Bankers Association
California Credit Union League
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California Financial Services Association
California Independent Bankers
California Mortgage Association
California Mortgage Bankers Association
California Nurses Association
California State Association of Counties
Community Associations Institute
Los Angeles County Democratic Party
National Asian American Coalition
Public Counsel
United Trustees Association
ASSEMBLY FLOOR : 71-0, 5/3/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bradford, Brownley,
Buchanan, Butler, Campos, Carter, Cedillo, Chesbro,
Conway, Cook, Davis, Dickinson, Donnelly, Eng, Feuer,
Fong, Fuentes, Beth Gaines, Galgiani, Garrick, Gatto,
Gordon, Gorell, Grove, Hagman, Halderman, Harkey,
Hayashi, Hill, Huber, Hueso, Huffman, Jeffries, Knight,
Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza,
Miller, Mitchell, Monning, Morrell, Nestande, Nielsen,
Norby, Olsen, Pan, Perea, V. Manuel P�rez, Portantino,
Silva, Skinner, Solorio, Swanson, Torres, Valadao,
Wagner, Wieckowski, Yamada, John A. P�rez
NO VOTE RECORDED: Bonilla, Charles Calderon, Fletcher,
Furutani, Hall, Roger Hern�ndez, Jones, Smyth, Williams
JJA:m 7/2/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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