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SUMMARY OF NEW LAWS
PASSED IN 2006
Following is a summary of the new
laws that were passed in 2006. Some of them took effect in 2006 and others
started on January 1, 2007. For more information about these laws, go
to "Newsletters" at
www.davis-stirling.com/newsletter.html.
Granting Exclusive Use.
Giving individual owners the exclusive right to use any portion of the common
areas now requires approval of 67% of the membership. Civil Code §1363.07
Membership List. Starting July 1, 2006,
boards can no longer withhold the membership list even if it provides an
alternate means for communicating with members. However, individual owners may
opt out of the sharing of their name and address by notifying the association in
writing that they prefer to be contacted by the alternative process. Civil Code
§1365.2(a)(1)(I)
Inspection of Records. Associations must
now produce records for inspection by the membership within specific time frames: Civil
Code §1363.05(d) and Civil Code §1365.2
Electronic Records. Associations may now
deliver records in electronic form, provided the records are in a format that
prevents the records from being altered. Civil Code §1365.2
Elections. Elections must be conducted
by an Inspector of Election and must be done by secret ballot with ballots
mailed 30 days in advance of the meeting. Boards must adopt election rules and
the rules must be consistent with the association’s governing documents. Ballots
count toward quorum. Ballots must be opened and counted by the Inspector in
front of the membership.
Proxies. Previously, anyone could act as
a proxyholder. Members can only designate other members to attend in their
place. Proxies must now be on 2 pages, the first with the authorizing language,
the second page with the vote. Civil Code 1363.03(d)
Reserves. Boards must now include in the
Association’s budget (i) the current deficiency in reserve funding expressed on
a per unit basis, (ii) a statement indicating whether the board decided to defer
repairs or replacement of a major component, and (iii) a statement indicating
whether the association has any outstanding loans. Starting January 1, 2009, a
summary of the reserve funding plan must be distributed to all members. Civil
Code 1363.5
Assessment Collection. Boards are now
required to be actively involved in the collection process. Boards must include
with pre-lien letters (by certified mail) a notice of an owner's right to “meet
and confer” with the board. Boards must authorize the recording of a lien by a
majority vote at an open meeting. The vote must be recorded in the minutes of
the meeting. The minutes may not disclose the name of the delinquent owner and
can only refer to the address by its lot/tract number or the assessor’s parcel
number.
Boards are allowed to record a lien but may not
start foreclosure until the amount is at least $1,800 or the delinquency is at
least 12 months old. Foreclosure cannot commence until the board authorizes it
in an open meeting and records the decision in the minutes. Notice of the
board’s decision must be personally served on the owner if the owner resides in
the unit or by first class mail at the most current address in the association’s
records provided by the owner. Civil Code §1367.1(a)
Architectural Committee. Architectural
committees must make written decisions and explain why the proposed change was
not approved, and provide a description of the procedure for reconsideration of
the decision. Associations are now required to annually mail a notice to all
homeowners describing the association’s architectural application process,
including the procedure used to review and approve or deny changes. CivilCode
§1378
American Flag. Associations may not
restrict members from displaying the U.S. flag on their own property or
exclusive use common area.
Towing Vehicles. The previous statute
regulating the towing of vehicles was replaced with a new one regulating when
and how vehicles may be towed and establishing new signage requirements.
Increase in Minimum Wage. Minimum wage
goes to $7.50 per hour, effective January 1, 2007 and increases again on January
1, 2008 to $8.00 per hour.
Employee Grooming Standards. The U.S.
Court of Appeals clarified what may be considered proper workplace grooming
standards. Jerspersen v. Harrah's, 444 F.3d 1104 (9th Cir. 2006)
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Sincerely
yours,
Adrian
J. Adams, Esq.
ADAMS & KESSLER LLP |
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