BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2100
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          Date of Hearing:   April 9, 2014

               ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
                                   Ed Chau, Chair
                    AB 2100 (Campos) - As Amended:  March 28, 2014
           
          SUBJECT  :   Common interest developments: local governments: yard  
          maintenance: fines: drought

           SUMMARY  :  Prohibits a homeowners association (HOA) in a common  
          interest development (CID) and a local government from fining a  
          homeowner who reduces or eliminates watering during a declared  
          state of emergency due to drought.    Specifically,  this bill  :  

          1)Prohibits an HOA from imposing a fine or assessment against a  
            member who reduces or eliminates watering of vegetation or  
            lawns during any period during which the Governor or local  
            government has declared an emergency due to drought.

          2)Prohibits a city, county, or city and county from imposing a  
            fine or assessment against a homeowner for reducing or  
            eliminating watering of vegetation or lawns during a period  
            during which the Governor has declared an emergency due to  
            drought.   

           EXISTING LAW  

          1)Authorizes the Governor to declare a state of emergency in an  
            area affected or likely to be affected by drought conditions.  
            (Government Code Section 8625 and 8558)  

          2)Directs the Governor to declare the termination of a state of  
            emergency at the earliest possible date that conditions  
            warrant, and all powers, granted by the Governor terminate  
            with the declaration. (Government Code Section 8629) 

          3)Authorizes a local government to proclaim, by ordinance, a  
            state of emergency due to drought conditions. (Government Code  
            Section  8558 and 8630)

          4)Defines the governing documents of a CID to mean the  
            declaration, and any other documents such as the bylaws,  
            operating rules of the association, articles of incorporation,  
            or articles of association, which govern the operation of the  
            CID or HOA. (Civil Code Section 4150) 








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          5)Makes the governing documents of a CID void and unenforceable  
            if they do any of the following:

             a)   Prohibit or include conditions that have the effect of  
               prohibiting low water-using plants as a group;

             b)   Restrict compliance with a water-efficient landscape  
               ordinance adopted by a local government; or

             c)   Prohibit compliance with any regulation or restriction  
               on the use of water due to severe water shortage.    (Civil  
               Code Section 4735) 


           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 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. 

          In the beginning of this year, due to record low rainfall, the  
          Governor declared a drought emergency. The governor's  
          declaration called on residents to voluntarily reduce water  
          consumption by 20 percent. Local governments have authority to  
          declare a state of emergency through an ordinance.  Many cities  
          have enacted ordinances to restrict watering lawns to a  
          specified number of days per week during the drought.     

           The purpose of this bill  :  According to the author, "California  
          is suffering through a historic drought and everyone is being  
          asked to conserve and reduce water usage.  Despite these efforts  
          at least one HOA has levied fines against homeowners who are  
          saving water.  AB 2100 would prohibit HOAs (and local  








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          governments) from fining a homeowner who chooses to conserve  
          water by reducing his or her watering of their lanws or plants  
          during a state or locally declared emergency due to drought" 

           CIDs and droughts  :  Under existing law the governing documents  
          of a CID cannot prohibit a homeowner from installing low  
          water-using plants as a group.  In addition, HOAs cannot prevent  
          a homeowner from installing landscaping that complies with a  
          city's or county's water-efficient landscape ordinance or from  
          complying with any restrictions on watering that a city or  
          county adopts in response to severe water shortages.  There is  
          nothing that prohibits an HOA from requiring a homeowner to  
          water their lawn in a case where the Governor has declared a  
          drought but there is no local ordinance restricting water use.   
          AB 2100 would make it clear that if the Governor declared a  
          state of emergency due to a drought that homeowners could stop  
          watering their lawns without being fined by the HOA.   The bill  
          does not prevent a HOA from fining a homeowner if they do not  
          maintain their yard or comply with requirements in state law to  
          keep weeds and vegetation at a minimum in high fire areas.   
          Existing law requires the Governor to declare an end to a state  
          of emergency, in this case a drought, as soon as conditions  
          warrant it.    

           Local governments and droughts  :  Local governments have  
          authority to adopt ordinances restricting watering during times  
          of drought. According to the author, more than 34 cities and 100  
          other entities that supply water have already imposed mandatory  
          water restrictions.  Although existing law already requires that  
          a CID's governing documents cannot prohibit a homeowner from  
          complying with any regulation or restriction on the use of water  
          due to severe water shortage, AB 2100 would further clarify the  
          point by referencing the local government's authority to declare  
          an emergency due to drought.  Although there is evidence that  
          cities have adopted ordinances restricting water use during the  
          drought, it is unclear if those who have not would fine a  
          homeowner for not watering.   

           Committee amendments  :

          1)On page 3, line 4 change "owner" to "member" 

          2)Add Assemblymember Brown as a co-author. 

           Related legislation: 








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          SB 992 (Nielsen) would prohibit an HOA from fining a homeowner  
          for yard maintenance issues related to under-watered plants  
          during a period of time that the Governor has declared a state  
          of emergency due to a drought. This bill is pending hearing in  
          Senate Transportation and Housing Committee. 

           Double referred  :  If AB 2100 passes out of this committee, the  
          bill will be referred to the Committee on Local Government.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Association of California Water Agencies
          California Association of Realtors
          East Bay Municipal Utility District
          Educational Community for Homeowners (ECHO) 
          San Diego County Water Authority 
          Sierra Club California

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Lisa Engel / H. & C.D. / (916) 319-2085