2018 Legislative Session Hot Bills

CAI-CLAC has announced its position on several bills being considered by the state legislature this year, all of which could significantly impact those living in common interest developments. These include:

  • SB 1265 (Wieckowski): Threatens Association Residents’ Privacy Rights, Local Control (OPPOSE)

If passed, Senate Bill 1265 would allow any neighbor to access the personal information and copy the signatures of residents who vote in their associations’ board elections. It also strips local community associations of their local control as to whom can serve on their boards. Want to prevent felons or those who skip out on paying their dues from serving on the board? This bill also prevents associations from establishing common sense requirements for serving on the board along with imposing higher election-related costs on associations.

  • SB 1128 (Roth): Financial Relief for Association Residents (SUPPORT)

Each year, community associations unnecessarily spend thousands more dollars than necessary to hold board elections when the number of candidates running for board positions is less than or equal to the number of board spots up for election. Senate Bill 1128, if passed, will allow associations to elect members to the board by acclamation in this scenario, saving association residents thousands of dollars that would otherwise be spent on printing multiple ballots, postage and independent inspections.

  • SB 721 (Hill): Duplicates Existing Safety Processes, Imposes New Costs on Homeowners (OPPOSE UNLESS AMENDED)

If passed, Senate Bill 721 would significantly impact those living in managed associations by imposing duplicative and expensive new maintenance standards on balconies, decks and elevated walkways in their communities. The Davis-Stirling Act already requires that association boards develop and budget for deferred maintenance in their communities. SB 721 slaps on new requirements that duplicate these processes and, as such, unnecessarily imposes new costs that will be incurred by the homeowners living in those associations.

  • AB 2353 (Frazier): Limits Homeowners’ Ability to Sue for Shoddy Construction (OPPOSE)

Assembly Bill 2353 could significantly impact the structural integrity of buildings in California’s managed associations by reducing the statute of limitations for construction defects from 10 to five years. What’s particularly dangerous about this bill is that many defects are not noticed within the first five years. If associations have no financial recourse against these damages, it may delay repair; unless, of course, boards turn to special assessments or dig into reserves, then this becomes an undue expense on homeowners.

  • AB 2912 (Irwin): Fortifying Finances of California Community Associations (SUPPORT)

Assembly Bill 2912 is designed to protect the finances of over 52,000 managed community associations in the state by requiring them to purchase fidelity bond insurance in an amount equal to or exceeding current reserves, plus three months of assessments. The bill also requires board members to review financial statements monthly rather than quarterly and prohibits electronic transfers of association funds without board approval.