(a) The association shall
distribute the written notice described in subdivision (b) to each member of the
association during the 60-day period immediately preceding the beginning of the
association's fiscal year. The notice shall be printed in at least 12-point
type. An association distributing the notice to an owner of an interest that is
described in Section 11212 of the Business and Professions Code that is not
otherwise exempt from this section pursuant to subdivision (a) of Section
11211.7, may delete from the notice described in subdivision (b) the portion
regarding meetings and payment plans.
"NOTICE
ASSESSMENTS AND FORECLOSURE
This notice outlines
some of the rights and responsibilities of owners of property in common
interest developments and the associations that manage them. Please refer to
the sections of the Civil Code indicated for further information. A portion
of the information in this notice applies only to liens recorded on or after
January 1, 2003. You may wish to consult a lawyer if you dispute an
assessment.
ASSESSMENTS AND FORECLOSURE
Assessments become
delinquent 15 days after they are due, unless the governing documents
provide for a longer time. The failure to pay association assessments may
result in the loss of an owner's property through foreclosure. Foreclosure
may occur either as a result of a court action, known as judicial
foreclosure or without court action, often referred to as nonjudicial
foreclosure. For liens recorded on and after January 1, 2006, an association
may not use judicial or nonjudicial foreclosure to enforce that lien if the
amount of the delinquent assessments or dues, exclusive of any accelerated
assessments, late charges, fees, attorney's fees, interest, and costs of
collection, is less than one thousand eight hundred dollars ($1,800). For
delinquent assessments or dues in excess of one thousand eight hundred
dollars ($1,800) or more than 12 months delinquent, an association may use
judicial or nonjudicial foreclosure subject to the conditions set forth in
Section 1367.4 of the Civil Code. When using judicial or nonjudicial
foreclosure, the association records a lien on the owner's property. The
owner's property may be sold to satisfy the lien if the amounts secured by
the lien are not paid. (Sections 1366,
1367.1, and 1367.4 of the Civil Code)
In a judicial or
nonjudicial foreclosure, the association may recover assessments, reasonable
costs of collection, reasonable attorney's fees, late charges, and interest.
The association may not use nonjudicial foreclosure to collect fines or
penalties, except for costs to repair common areas damaged by a member or a
member's guests, if the governing documents provide for this. (Sections
1366
and
1367.1
of the Civil Code)
The association must
comply with the requirements of Section
1367.1 of the Civil Code when
collecting delinquent assessments. If the association fails to follow these
requirements, it may not record a lien on the owner's property until it has
satisfied those requirements. Any additional costs that result from
satisfying the requirements are the responsibility of the association.
(Section 1367.1
of the Civil Code)
At least 30 days prior
to recording a lien on an owner's separate interest, the association must
provide the owner of record with certain documents by certified mail,
including a description of its collection and lien enforcement procedures
and the method of calculating the amount. It must also provide an itemized
statement of the charges owed by the owner. An owner has a right to review
the association's records to verify the debt. (Section 1367.1
of the Civil Code)
If a lien is recorded
against an owner's property in error, the person who recorded the lien is
required to record a lien release within 21 days, and to provide an owner
certain documents in this regard. (Section 1367.1
of the Civil Code)
The collection
practices of the association may be governed by state and federal laws
regarding fair debt collection. Penalties can be imposed for debt collection
practices that violate these laws.
PAYMENTS
When an owner makes a
payment, he or she may request a receipt, and the association is required to
provide it. On the receipt, the association must indicate the date of
payment and the person who received it. The association must inform owners
of a mailing address for overnight payments. (Section 1367.1
of the Civil Code)
An owner may dispute
an assessment debt by submitting a written request for dispute resolution to
the association as set forth in Article 5 (commencing with
Section 1363.810)
of Chapter 4 of Title 6 of Division 2 of the Civil Code. In addition, an
association may not initiate a foreclosure without participating in
alternative dispute resolution with a neutral third party as set forth in
Article 2 (commencing with Section 1369.510) of Chapter 7 of Title 6 of
Division 2 of the Civil Code, if so requested by the owner. Binding
arbitration shall not be available if the association intends to initiate a
judicial foreclosure.
An owner is not liable
for charges, interest, and costs of collection, if it is established that
the assessment was paid properly on time. (Section
1367.1
of the Civil Code)
MEETINGS AND PAYMENT PLANS
An owner of a separate
interest that is not a timeshare may request the association to consider a
payment plan to satisfy a delinquent assessment. The association must inform
owners of the standards for payment plans, if any exist. (Section 1367.1
of the Civil Code)
The board of directors
must meet with an owner who makes a proper written request for a meeting to
discuss a payment plan when the owner has received a notice of a delinquent
assessment. These payment plans must conform with the payment plan standards
of the association, if they exist. (Section 1367.1
of the Civil Code)"
(c) A member of an
association may provide written notice by facsimile transmission or United
States mail to the association of a secondary address. If a secondary address is
provided, the association shall send any and all correspondence and legal
notices required pursuant to this article to both the primary and the secondary
address.
