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An Article
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A PALE HUSK OF A BILL
Lobbyists decimate Homeowner protection bill
September 06, 2005
By
Peter Amherst
Copyright AHRC News Services
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I'm sorry to have to tell you this, but the Ducheny bill does NOT prevent outrageous attorney fees NOR does it stop an association from putting a lien on the property if the amount is less than $1800.
The HOA can STILL put a lien on a home if the assessment debt is less than $1800 -- it just can't FORECLOSE on the lien until 12 months have elapsed.
Furthermore: the Ducheny bill does NOT put a lid on collection fees of any kind -- including attorney's fees.
Once the HOA procedes with foreclosure, it can use this collection tool to force payment of all the collection fees it wants.
Finally: the Ducheny bill does NOT stop the HOA from selling a home for pennies on the dollar, i.e. for the amount owed the HOA and its debt collectors.
PLEASE DO READ THE BILL AND THE BILL ANALYSIS AT www.leginfo.ca.gov
Do not depend on news stories -- or hearsay -- for your information.
Marjorie Murray
Lobbyist
California Alliance for Retired Americans
Posted Sep 11 2005 4:07AM CEST
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Username withheld
, California |
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Related link:
Comment 6. Homeowners got nothing of value.
Posted Sep 11 2005 2:30AM CEST
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Username withheld
, California |
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The bill needs to trashed. It was designed to help homeowners not give associations more tools to threaten and harrass.
Posted Sep 9 2005 6:44PM CEST
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Username withheld
San Pedro, California |
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What a fantastic article!!! This is how they work it in Texas as well.
Harvella Jones
President and Co-founder
The Texas Homeowner's Advocate Group
Posted Sep 8 2005 12:59AM CEST
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Harvella Jones
(View Profile)
Richmond, Texas |
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The first time I asked to see financials after this new board took over, with their illegal elections, organized by our management company corrupt as they can be.
I was president for several years, and my door was ALWAYS open to any homeowner who wanted to see or discuss anything.
I got arrested, based on false allegations made by an actor, who gets paid exhorbitant amounts of money to feed lines connivingly about characters that don't exist.
This time, he broke my nose, gave me a beating like no other. I have two black eyes, bruising down to my cheek almost to my lips, and I look like i've been through the windshield of a car.
I am 5'5" and 106 lbs.
I have been living as a virtual prisoner in my own home. I have been trying to tell everyone this was heading this way, that he was off in the head, and the one time I go out, to bring in my kitty, and try to finish some laundry............
I got it....................and everyone sits around clueless.
....and no, i won't shut up. :)
Posted Sep 7 2005 11:47AM CEST
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Username withheld
, California |
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I am so sorry for all those caught in the treadmill of Homeowner Associations.
I just bought a starter house; 2 years old and with RV access and NO HOA. And it's not in a lousy run down area either. It just took some looking to find it, and it was built by a major builder, not a custom or jerry builder.
Homeowner associations are not for the homeowners; they are strictly to enforce uniformity so the original developers can sell the homes in a development, just to prevent the neighborhood from going to pot while they are still selling.
And cities love them, they don't have to enforce local ordinances, or maintain communties.
The obvious answer is to NOT be a lemming and join others willing to jump off the cliff, or sign away their rights of being able to enjoy their own property without harrassment from some would-be dictators bent on 'maintaining property values'.
The majority of HOA owners are middle managers who are so used to being told what to do, they feel security with a HOA. They have no empathy for anyone who falls by the wayside and needs a little help.
Did you folks really think that with a governor like Big Business Arnie that a decent homeowners protection bill would go through?
The saying is "..... or get off the pot. No one gives rights to a few, it takes a REVOLUTION.
Believe me, if enough people would say to their realtor, as we did, NO HOA and it started to affect home sales, realtors would quickly scramble to address this issue.
For those of you who have chosen to endure this misery, go to the meetings and TAKE BACK YOUR POWER.
Lots of luck to you all.
Posted Sep 7 2005 7:40AM CEST
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Username withheld
San Marcos, California |
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A LEGISLATIVE CONSULTANT'S ANALYSIS OF THE FINAL VERSION OF SB 137
SENATE THIRD READING
SB 137 (Ducheny)
As Amended September 1, 2005
Majority vote
SENATE VOTE :36-2
JUDICIARY 6-2 HOUSING 5-0
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|Ayes:|Jones, Evans, Laird, |Ayes:|Mullin, Baca, Hancock, |
| |Levine, Lieber, Montanez | |Salinas, Torrico |
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|-----+--------------------------+-----+--------------------------|
|Nays:|Harman, Haynes | | |
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SUMMARY : Seeks to protect a condominium owner's property and equity when he or she misses payment on relatively small assessments imposed by their common interest development (CID) association. Specifically, this bill :
1)Provides that, after January 1, 2006, foreclosure is not permitted as a remedy when a CID association seeks to collect delinquent assessments that are less than $1,800. Provides that delinquent assessments of any amount that are more than 12 months delinquent may be subject to judicial and non-judicial foreclosure. As an alternative, permits associations to seek sums less than $1,800 in small claims court. Associations would also be permitted to record a lien on the owner's separate interest.
2)Provides that, after January 1, 2006, an association may foreclose upon a lien for delinquent assessments of $1,800 or more, subject to the following new prerequisites (although this bill now provides that, as noted above, delinquent assessments of any amount that are more than 12 months delinquent may be subject to judicial and non-judicial foreclosure): a) that the association recorded the lien only upon a majority vote of the board of directors in an open meeting; b) that the association initiated the foreclosure upon a majority vote of the board in an executive session at least 30 days prior to any public sale and recorded the results of the vote as specified, where the board maintained the confidentiality of the owner; c) that the association has sent all correspondence, billings, and legal notices related to delinquencies to the owner's primary and secondary address, where one has been provided; d) that the association has provided personal notice to the owner of the decision to foreclose; and, e) that any notice of default has also been personally served on the owner's legal representative.
3)Provides that payment plans may incorporate any assessments that accrue during the payment plan period. Payment plans shall not impede an association's ability to record a lien on the owner's interest to secure payment of delinquent assessments. Additional late fees shall not accrue during the payment plan period if the owner is in compliance with the terms of the payment plan. In the event of a default on any payment plan, the association may resume its efforts to collect the delinquent assessments from the time prior to entering into the payment plan.
4)Provides that upon receipt of a written request by an owner identifying a secondary address for purposes of collection notices, the association shall send additional copies of any notices required by this section to the secondary address provided.
5)Grants owners a right to redeem their separate interest from a foreclosure sale within 90 days of that sale.
6)Permits a management company representative or bookkeeper to appear on behalf of a CID association in small claims court.
7)Requires an association to notify an owner, prior to recording a lien for a delinquent assessment, that the owner has a right to engage in the dispute resolution pursuant to the "meet and confer" program required in Civil Code Section 1363.810 et seq .
8)Requires an association to notify an owner, prior to initiating a foreclosure for a delinquent assessment, that the owner has a right to participate in alternative dispute resolution (ADR) with the association and a neutral third party under Civil Code Section 1369.510; the owner would only need to request the procedure in order to use the procedure.
9)Requires that where it is determined in dispute resolution or ADR that the association recorded a lien in error, that an association promptly reverse all additional charges and pay all costs related to the dispute resolution or ADR.
10) Provides that binding arbitration shall not be available if the association intends to initiate a judicial foreclosure.
11) Requires the Department of Consumer Affairs (DCA) and the Department of Real Estate (DRE) to establish an on-line education course for CID board members when funds become available.
EXISTING LAW :
1)Defines and regulates CID and authorizes the association that manages the development to levy assessments to fulfill its obligations.
2)Permits a homeowners' association to place a lien on a separate interest for any delinquent assessments, late charges, reasonable costs of collection and interest and that the lien may be enforced after 30 days' notice by any lawful means including the use of non-judicial foreclosure.
3)Recognizes that homeowner associations, a quasi-governmental entities that owe fiduciary duties to their members, are required to adhere to due process and equal protection obligations and requires that a decision regarding a proposed change to a homeowner's separate interest property be made in good faith, pursuant to a fair and reasonable procedure.
FISCAL EFFECT : According to the Assembly Appropriations analysis, DCA indicates minor absorbable costs to create and maintain the online course. (DCA indicates that similar materials covering the subject are currently available on the
Internet.)
COMMENTS : According to supporters, this bill is necessary because there have been too many instances where CID associations have repeatedly used the extreme hammer of non-judicial foreclosure in order to collect relatively small amounts of overdue assessments. Not only have foreclosures been initiated for relatively small amounts, but the AARP points out that the foreclosure procedure offers few due process protections to CID homeowners. In addition, the home is usually sold for an all-too-often shockingly small fraction of its actual value. The potential result: homeowner loses his or her home, and receives no substantial amount of money in return - sometimes for very small amounts of overdue assessments. This bill seeks to protect CID homeowners by prohibiting foreclosure on delinquent assessments of less than $1,800 though it permits the use of judicial and non-judicial foreclosure for any assessments that are more than 12 months delinquent. This bill institutes other important procedural and notice requirements to protect CID homeowners.
At the recommendation of the state and CSA, the author amended this bill to require DCA and DRE to establish an on-line education course for CID board members when funds are available. In response to opponents' concern that the initial foreclosure threshold amount of $2,500 was too high, the author agreed to lower the foreclosure threshold to $1,800, and clarified that foreclosure remains an option in all cases where a homeowner is more than 12 months delinquent in paying any assessment amount.
Recent amendments to the bill also specify that an itemized statement of charges shall be recorded with the notice of delinquent assessment and that foreclosure cannot be initiated due to any acceleration of overdue assessments.
Analysis Prepared by : Drew Liebert - Senate Judiciary Committee (916) 319-2334
Posted Sep 7 2005 2:38AM CEST
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AHRC Staff
(View Profile)
, California |
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