Politicians continue to protect the State's booming litigation and foreclosure industry

February 22, 2005

By Sandy Meyer

Today was the deadline for California lawmakers to file their bills for 2005.

Following is the list of California's 2005 homeowner association bills :

SB 137 (Denise Ducheny) Common interest developments: assessments.

This bill would require the association to either file a civil action in small claims court or record a lien to collect delinquent assessments. The association would be prohibited from foreclosing until the amount equals or exceeds $2,500. not including specified late charges and fees,

SB 551 Lowenthal - Common interest developments: bureau.

This bill would add provisions regarding a Common Interest Development Bureau, that consist of a definition of that bureau.

SB 304 (Jim Battin)- Common interest developments: ombudsman.

This bill would establish the position of Common Interest Development Ombudsman in the Department of Consumer Affairs, to be appointed by the Governor, to take and resolve complaints.

SB 186 (Jim Battin) - Common interest developments - changed to a highway authority change bill.

This bill would prohibit the use of any funds of the association for the personal campaign mailings of any association official. The bill also would prohibit any mass mailing, as defined, by an association official or candidate for campaign purposes within 60 days of any election of association officials.

Update: On August 18, 2005 , Jim Battin rewroted this Common Interest Bill to: An act
to amend Sections 374 and 411 of the Streets and Highways Code, relating to highways. This bill would authorize the commission to relinquish portions of State Highway Routes 74 and 111 in Riverside County to specified local agencies under certain conditions.

SB 61 (Jim Battin) Election - Common interest developments: elections.

This bill would require that elections within a common interest development for specified matters be held by secret ballot, as specified. The bill would prohibit a person from counting votes in an election in which he or she is a candidate. The bill would establish additional procedures for notification of elections and storage and review of election results, and would require that elections held by mailed, written ballot be conducted according to specified provisions. The bill would permit a member of an association to bring a civil action, as specified, for violations of these provisions by his or her association.

AB 619 (Tim Leslie) - Common interest developments: assessments.

Sources report that AB 619 (Tim Leslie) is a foreclosure industry bill and meant of kill SB 137 by Senator Ducheny.

AB 619 would eliminate the right of an owner to request a meeting, and the obligation of the board of directors of the association to meet with the owner, to discuss a payment plan.

Instead, the bill would require the notice of delinquent assessment to include a checkbox and signature line for the owner to request a payment plan, and would require the association to provide the owner with the standards for payment plans, as specified. The bill would require any notice of default to be served according to specified methods, and would require the board to approve the commencement of any sale conducted by a trustee, as specified.

The bill would require the association to send copies of all notices described in these provisions to a secondary address, in care of the owner, upon the written request of the owner. The bill also would revise the contents of the annual notice provided by the association to its members to conform with these changes and to include a schedule of reasonable fees and costs that the owner could be charged throughout any portion of the nonjudicial collection process.

AB 1098 -( Jones) - Establishes election and financial records rules for common interest developments

AB 1098 would Rrequires associations to comply with specified procedures relating to election rules, voting, proxy ballots, and election audits and authorizes a member of the association to enforce his or her rights under these provisions and require a court to void the results of the election upon a finding that the election procedures were not followed. It also requires associations, including an association still under the control of a developer, to make specified association records, such as the accounting books and records and the minutes of proceedings of the association available for inspection and copying by a member of the association, or the member's designated representative, within 3 days of receipt of the request, and applies these provisions to any community service organization or similar entity that is related to the association.

CALIFORNIA LAWMAKERS CONTINUE TO SHY AWAY FROM CURBING RAIDS ON HOME EQUITY BY LAWYERS

Although California lawmakers each introduce 20 to 30 bills a year, homeowners say they are not able to find lawmakers who will introduce a bill to

• protect their home equity from being raided by lawyers.
• cap lawyers fees for dues collections and rules disputes lawyers create or
• take away the non-judicial foreclosures powers of homeowner association lawyers and boards to collect minor amounts of dues

It has been twenty five years since lawyers and lawmakers plotted and subjected association homeowners to the home equity raiding Davis Stirling laws It looks as if these homeowners will continue to fuel California's booming litigation and foreclosure industry.