BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 759
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          Date of Hearing:   June 15, 2011

               ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
                                 Norma Torres, Chair
                     SB 759 (Lieu) - As Amended:  March 22, 2011

          SENATE VOTE  :   32-8
           
          SUBJECT  :   Common interest developments:  artificial turf 

           SUMMARY  :   Makes the governing documents of a common interest 
          development (CID) void and unenforceable if they prohibit the 
          use or include conditions that effectively prohibit the use of 
          artificial turf or any other synthetic surface that resembles 
          grass, but allows a CID to apply design and quality standards 
          for artificial turf.    

           EXISTING LAW  

          1)Provides a provision of the governing documents of a CID are 
            void and unenforceable if they do any of the following:

             a)   include conditions that effectively prohibit the use of 
               low water-using plants as a group; or

             b)   restrict compliance with local water ordinances required 
               to reduce water consumption, water-efficient landscape 
               ordinance in effect pursuant to Government Code Section 
               65596, or restriction on use of water adopted pursuant to 
               Water Code Sections 353 & 375. 

          2)Provides if the governing documents of a CID require the 
            homeowners association (HOA) to approve physical changes to an 
            owner's separate interest, the process must be:

             a)   fair, reasonable and expeditions;

             b)   included in the governing documents; and 

             c)   made in good faith and may not be unreasonable arbitrary 
               or capricious.

          3)Provides a decision on a proposed change on a special interest 
            cannot violate the Fair Employment and Housing Law, building 
            code, or other applicable law governing land use or public 








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            safety. 

           FISCAL EFFECT  :   None. 

           COMMENTS  :   

          There are over 47,000 CIDs in the state that range in size from 
          three to 27,000 units. CIDs make up over six million total 
          housing units which represents approximately one quarter of the 
          state's housing stock. In the 1990s, over 60% of all residential 
          construction starts in the state were CIDs.  CIDs include 
          condominiums, community apartment projects, and housing 
          cooperatives and planned unit developments.  They are 
          characterized by a separate ownership of dwelling space coupled 
          with an undivided interest in a common property, restricted by 
          covenants and conditions that limit the use of common area, and 
          the separate ownership interests and the management of common 
          property and enforcement of restrictions by an association.  
          CIDs are governed by the Davis Stirling Act (Civil Code Section 
          1350 et al.), as well as the governing documents of the 
          association including the bylaws, declaration, and operating 
          rules. Except when CIDs are first developed, no state agency 
          provides ongoing oversight to these communities.  
           
          Purpose of the bill  :

          According to the sponsor of this bill, San Diego County Water 
          Authority, grass lawns use up to 46 gallons of water per square 
          foot per year in the San Diego region.  Landscape irrigation 
          makes up 70% of the average household water use.  The use of 
          artificial turf in landscaping is one method of reducing water 
          consumption, while still allowing property owners to incorporate 
          expanses of green into their landscaping. 

          In November 2009, SBX7 7 (Steinberg) was enacted requiring water 
          consumption be reduced by 20% per capita by the year 2020. 
          According to the sponsor of the bill, water suppliers are 
          committed to meet this goal.  The purpose of this bill is to 
          expand the available means of conserving water by removing 
          impediments to the use of artificial turf and landscaping in 
          CIDs.  According to the sponsor, one impediment is the use of 
          covenants, conditions and restrictions in CIDs that prohibit the 
          use of artificial turf.    
           
          AB 1061 (Lieu), Chapter 503, Statutes of 2009, made the 








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          governing documents of a HOA void and unenforceable if they 
          prohibited or had the effect of prohibiting the use of low-water 
          using plants or violated locally adopted water-efficient 
          landscape ordinances.  CIDs may apply rules that conform to 
          legal requirements as to water-efficient landscapes.  According 
          to the sponsor, because the bill did not specifically include 
          artificial turf as a possible water-efficient landscaping option 
          some HOAs have prohibited homeowners from installing it.    

          At the time homeowners purchase in CIDs they receive a copy of 
          the CCRs and other governing documents of the HOA which detail 
          the rules and regulations of the HOA.  If the HOA has a process 
          for approving homeowners architectural change to their home, it 
          will be outlined in the governing documents.   It is unlikely 
          that the governing documents would specifically prohibit 
          artificial turf.  However, in some CIDs homeowners could be 
          required to get the approval of the architectural review 
          committee before making changes to their home including 
          landscaping changes.  The procedure must be fair, reasonable and 
          provide for prompt deadlines.  If a homeowner is denied approval 
          of a proposed change, the decision can be appealed at a meeting 
          of the board of directors. 

          SB 759 makes the governing documents of a CID void and 
          unenforceable if they prohibit the use or include conditions 
          that effectively prohibit the use of artificial turf or any 
          other synthetic surface that resembles grass.  The bill does 
          allow a CID to apply design and quality standards for the 
          installation of artificial turf, as long as the standards 
          conform to the legal requirements as to water-efficient 
          landscapes. This gives HOAs the ability to set standards 
          regarding the color of the turf, the timeline for replacing it, 
          and other design standards while not prohibiting its use.

           Arguments in opposition  :  According to the Executive Council of 
          Homeowners (ECHO), simply saying that restrictions on the use of 
          artificial turf or any synthetic surface are unenforceable or by 
          providing for design and quality standards does not take into 
          consideration the desires and esthetics of the community.  ECHO 
          is concerned about the questions that artificial turf could 
          raise in a community including what to do with artificial turf 
          when a subsequent owner does not want it or with run-off 
          problems. 

          Arguments in support:  According to the sponsor, in response to 








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          concerns raised regarding the lead content in artificial turf, 
          "the US Consumer Protection Agency did an analysis of lead 
          content in artificial turf and deemed it safe and that young 
          children are not at risk from using playing fields with 
          artificial turf. Additionally, with the California Attorney 
          General's office with manufactures of artificial turf will lead 
          to products with negligible levels of lead in the products." 


           Related legislation  :  Last year, Governor Schwarzenegger vetoed 
          AB 1793 (Saldana), which was identical to this bill. Below is 
          the veto message:

               This bill would void a provision in the governing documents 
               of a
               common interest development (CID) if it prohibits the use 
               of
               artificial turf or any other synthetic surface that 
               resembles grass
               in its landscaping rules and regulations.

               CIDs provide a system of self-governance through a 
               community
               association, responsible for managing, maintaining, and 
               repairing the
               common areas, and have the authority to enforce special 
               rules.
               Decisions such as these regarding the use of artificial 
               turf can be
               made by the homeowners and amended into their governing 
               documents.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          San Diego County Water Authority (sponsor)
          Association of California Water Agencies
          City of San Diego

           Opposition 
           
          Community Association Institute (CAI) 
          Executive Council of Homeowners









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