BILL ANALYSIS �
AB 968
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 968 (Gordon)
As Amended August 22, 2014
Majority vote
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|ASSEMBLY: | |(May 9, 2013) |SENATE: |30-5 |(August 27, |
| | | | | |2014) |
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(vote not relevant)
Original Committee Reference: H. & C.D.
SUMMARY : Clarifies the homeowners association (HOA) and the
owner's responsibility for repairing, maintaining, and replacing
the common area, a separate interest, and the exclusive use
common area appurtenant to a separate interest.
The Senate amendments delete the Assembly version of this bill,
and instead:
1)Clarify that except where otherwise provided in the governing
documents of a common interest development (CID), the
following are true:
a) An HOA is responsible for repairing, replacing, and
maintaining the common area of the CID.
b) The owner of a separate interest in a CID is responsible
for repairing, replacing, and maintaining that separate
interest.
c) The each owner of a separate interest is responsible for
maintain the exclusive use common area appurtenant to the
separate interest.
d) The HOA is responsible for repairing and replacing the
exclusive use common area.
1)Take effect on January 1, 2017.
FISCAL EFFECT : None
COMMENTS : There are over 49,000 CIDs in the state that range in
size from three to 27,000 units. CIDs make up over 4.9 million
AB 968
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housing units which represents approximately one quarter of the
state's housing stock. CIDs include condominiums, community
apartment projects, 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, covenants and conditions that limit the use of common
area, separate ownership interests, the management of common
property, and enforcement of restrictions by a HOA. CIDs are
governed by the Davis-Stirling Act as well as the governing
documents of the HOA including bylaws, declaration, and
operating rules.
Under existing law an HOA is responsible for repairing,
replacing, and maintaining the common area of a CID. An owner
is responsible for maintaining their separate interest and any
exclusive use common area attached to the separate interest. To
some extent, it is unclear whether the HOA or the owner is
responsible for replacing and repairing the exclusive use common
area. This bill would make it the HOA's responsibility to
repair and replace the exclusive use common area. This bill
goes into effect on January 1, 2017.
This bill was substantially amended in the Senate and the
Assembly-approved version of this bill was deleted. This bill,
as amended in the Senate, is inconsistent with Assembly actions
and the provisions of this bill, as amended in the Senate, have
not been heard in an Assembly policy committee.
Analysis Prepared by : Lisa Engel / H. & C.D. / (916) 319-2085
FN: 0005213