POWERPOINT SLIDES NEW LEGISLATION THURSDAY GENERAL SESSION SPEAKERS 9:30 10:30 AM. David F. Feingold, Esq. Michael J. Hughes., Esq.

Transcription

1 POWERPOINT SLIDES NEW LEGISLATION THURSDAY GENERAL SESSION 9:30 10:30 AM SPEAKERS David F. Feingold, Esq. Michael J. Hughes., Esq C A C M, I n c. - L a w S e m i n a r - A l l r i g h t s r e s e r v e d.

2 New Legislation and Trending Issues SPEAKERS David F. Feingold, Esq. Michael J. Hughes, Esq. THE SUN 1

3 THE DROUGHT Ugly Dead Landscaping AB 2100 AB 2100 applies when: - Governor declares state of emergency due to drought - Local government declares drought emergency Amends Civil Code 4735 Emergency legislation (July 2014) Cannot fine owner for complying with water conservation recommendations 2

4 But... associations can take disciplinary action for failing to remove weeds and dead plants! Dirty Water and Pressure Washing SB 992 Also amends Civil Code 4735 Emergency legislation Associations using recycled water for irrigation can fine! Exception to the general rule. But voids any restriction that requires pressure washing No Lawn, No Problem AB 2104 Further amends Civil Code 4735 Emergency legislation (September 2014) Association cannot prohibit or restrict low waterusing plants 3

5 Let Them Use Dirty Water AB 1896 Emergency legislation Applies only to Coachella Valley Association must use recycled water for irrigation (if available) Trending Issues Dead lawns and dirty hardscapes How to enforce community standards DROUGHT RECAP During a declared drought emergency: Associations are unable to impose fines on owners for complying with water conservation measures (unless association uses reclaimed water) Enforce provisions requiring pressure washing In addition to Governing Documents, landscape and architectural guidelines cannot include provisions that prohibit the use of low water using plants as a group or as a replacement of turf 4

6 Solar The Other Side of the Drought Coin Solar Energy AB 2188 Current Civil Code 714 Restrictions on solar energy systems cannot: Significantly increase cost Significantly decrease system s efficiency or specified performance Take too much time to approve Before AB 2188 Section 714 Changes After AB 2188 $2,000 greater cost (pool/water heaters) $2,000 greater cost OR 20% decrease efficiency (photovoltaic systems) 60 day approval $1,000 greater cost (pool/water heaters) $1,000 greater cost OR 20% decrease efficiency (photovoltaic systems) 45 day approval 5

7 Trending Issues New delivery models leasing, power buy back -- How to measure cost and efficiency differences? Any say on aesthetic standards for solar (blue v. black, etc.)? Solar policies amend to reflect trends and new law SOLAR RECAP Association can impose requirements for owner installed solar energy systems Cost of pool/water heater systems must not be more than $1,000 of what owner proposed Efficiency of photovoltaic systems cannot decrease by more than 10% Applications that are not denied in 45 days will be deemed approved FIRE!!! 6

8 Fire Fees AB 2048 State fire fees for rural areas under CAL FIRES established in 2011 Challenged as illegal tax New law limits $150 per structure fee to habitable structure Exempts homes if they burn in a fire Maintenance, Repair, and Replacement Clarification of Maintenance, Repair, and Replacement Responsibility AB 968 Amends Section 4775 effective 1/1/17 Governing Documents may override statute MAINTAIN REPAIR REPLACE Common Area Association Association Association Exclusive Use Common Area Separate Interest Owner Association Association Owner Owner Owner 7

9 Section 4775 Before 1/1/17 Common Area (MR&R) = Association Separate Interest Maintenance = Owner EUCA Maintenance = Owner After 1/1/17 Common Area (MR&R) = Association Separate Interest (MR&R) = Owner EUCA Maintenance = Owner EUCA Repair and Replacement = Association Trending Issues Maintenance, repair and replacement are not defined Section 4145 EUCA = windows, doors, doorframes, screens, shutters, window boxes unless otherwise provided Amend documents to change or clarify allocation of repair and replacement obligation for EUCA MAINTENANCE RECAP As of 1/1/17, unless the governing documents provide otherwise: Owners will maintain EUCA Owners will maintain, repair and replace separate interest Association will repair and replace EUCA Association will maintain, repair and replace common area 8

10 Gardens and Sustainability Grow Your Own Garden! AB 2561 Adds Civil Code 4750 No prohibition or restriction on edible crops In backyards Or EUCA For personal agriculture Dead weeds/plants must be removed (but not mulch, compost, straw, etc.) Landlord/Tenant AB 2561 also amends statute applicable to landlord and tenants. But landlords can limit use of certain chemicals and pesticides (Note: This language is not in Civil Code 4750) 9

11 TRENDING ISSUES Trending Issues Backyard Chickens - A usual and common household pet? Trending Issues Backyard Goats? 10

12 Backyard Bees? GARDENS & SUSTAINABILITY RECAP Governing Document provisions cannot prohibit or unreasonably restrict: Use of backyard or EUCA For personal agriculture Reasonable restrictions: Do not significantly increase cost Can require dead plants/weeds be removed Disclosures 11

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14 Sales Disclosure Document Fees AB 2430 Amends Civil Code 4528 and 4530 Sellers must pay actual costs for disclosure documents Can not charge for documents already in seller s possession Modifies Civil Code 4528 form Itemizes costs for providing documents to seller Trending Issues Become familiar with revised form at Civil Code 4528 Provide form to association members to clarify their obligations Tell them what you know, what you don t know, and when you will know what you don t know 13

15 Internal Dispute Resolution Lions and tigers and lawyers? Oh no! AB 1738 AB 1738 AB 1738 Amends IDR (Civil Code ) Parties may be assisted in IDR by an attorney or another person at their cost Judicially enforceable = settlements must be in writing and signed by all parties 14

16 Trending Issues Revise IDR disclosure Require prior notice if members attorney participating Settlement needs to be signed for judicial enforceability Increase association budget for legal fees IDR RECAP To be judicially enforceable, IDR settlement agreement needs to be: In writing Signed by both parties Parties were allowed to have an attorney or other person participate in the IDR meeting QUALIFYING FOR FHA FINANCING 15

17 FHA HAWK PROGRAM Enacted October 2014, Homeowners Armed with Knowledge program assists first time buyers and underserved communities Trending Issue: Are Your Associations Qualified for FHA Loans? Oak Spring Creek Condominium Association in Ohio -- FHA Certification had lapsed Potential buyer asked the board to pursue recertification (offered to pay the $1,000 fee) -- board refused 16

18 Ohio Civil Rights Commission -- six month investigation Was refusal to pursue certification a veiled attempt to exclude minority buyers from the project? Commission found insufficient evidence, but lawsuit available option for claimant. FHA RECAP Condominium association boards can be subject to claims for not performing due diligence in seeking FHA certification: Discrimination claims Failing to enhance and protect property values Thank you! SPEAKERS David F. Feingold, Esq. Michael J. Hughes, Esq. 17