A Buck-A-Door Helps Protect HOA Home Values

A BUCK-A-DOOR

HELPS PROTECT HOA HOME VALUES WORKING TOGETHER: CAI's California Legislative Action Committee and 50,000 Community Associations

How HOA Boards Can Participate In The Legislative Process ABOUT CLAC

TO PARTICIPATE

Each year, the California Legislature proposes dozens of new laws that directly impact homeowners associations (HOAs). Legislation that is signed into law may immediately change the way boards conduct HOA business and may impose fines for noncompliance. The Community Associations Institute (CAI) helps associations stay informed about HOA legislation.

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STEP ONE

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STEP TWO

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STEP THREE

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STEP FOUR

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THANK YOU

CAI’s California Legislative Action Committee (CLAC) represents HOAs in Sacramento by advocating on their behalf to protect associations from damaging legislation and to promote proactive legislation. CLAC is made up of members from the Community Associations Institute like you. As a member of CAI, you are automatically a member of CLAC. CLAC is directly supported

by HOAs through the Buck-A-Door campaign, where HOAs give a dollar per household to CLAC annually.

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The California Legislative Action Committee (CLAC)

Add CLAC financial support to your board agenda.

This pamphlet will help make the case for your support. CLAC asks each HOA to donate $1 per door annually. CLAC is asking HOAs to make this annual donation part of their annual operating budget.

Customize the board resolution on page 6 for your specific association and add it to your board packet for the board’s consideration. An electronic version of the resolution is available on the CAI-CV website at www.cai-cv.org.

Make a motion to approve the enclosed Board Resolution and begin discussion. If you need additional information, please contact the CAI-CV office at 760-341-0559 or go to the CLAC website at www. caiclac.com. After discussion, call for a vote.

When approved, ask your treasurer or manager to prepare and send a check directly to CLAC. Make the check payable to CAI-CLAC. The mailing address is 1809 S Street, Suite 101-245, Sacramento, CA 95811.

IMPORTANT: Please indicate CAI-CV in the memo line so our local chapter is aware of your donation.

CAI is grateful to all HOAs who participate in funding our advocacy efforts in Sacramento. CAI-CV will publish your association’s name in Quorum Magazine and recognize you at our annual Legislative Update.

12 REASONS Why You Should Donate to CLAC CAI’s California Legislative Action Committee (CLAC) is a nonprofit educational organization dedicated to monitoring and influencing legislation that affects community associations in California. CLAC is proactive in introducing and advocating for legislation that is beneficial to homeowners associations (HOAs) and actively opposes legislation that may have an adverse impact on HOAs. CLAC has influenced legislation affecting many aspects of the Davis-Stirling Act, including covenant enforcement, elections, board meetings, assessment collection, electronic voting and resale disclosure.

1 Your donation gives your community a voice. CLAC’s legislative advocacy efforts are entirely dependent upon the support, opinions and experience of industry professionals and homeowner leaders. CLAC serves the interests of approximately 10,000,000 people who live in and work with HOAs in the state of California. CLAC communicates with legislators and other elected and appointed officials about HOA concerns through letters, phone calls and personal visits.

2 CLAC is dedicated to monitoring and influencing legislation that impacts HOAs in California.

CLAC researches and reviews proposed legislation and takes positions on bills affecting HOAs. 3 CLAC meets regularly with lawmakers in their district and Sacramento offices to help advance HOA issues. CLAC educates lawmakers, legislative and executive staff, and other organizations. CLAC also testifies before legislative bodies. CLAC holds an annual Legislative Day at the Capitol in Sacramento where CAI members are invited to meet with legislators and advocate on important HOA issues being considered.

4 CLAC is not a Political Action Committee (PAC) and does not give money to legislators or their campaigns.

5 CLAC provides immediate action alerts and input on bills that affect HOAs. Legislators rely on CLAC input on HOA issues. HOAs rely on CLAC’s input on breaking issues and its ability to effectively influence the formulation and outcome of public policy. CAI members have access to timely information on bills related to HOAs at www.caiclac.com.

6 CLAC organizes “grassroots” advocacy efforts that include letters, emails and phone communications from HOA residents to elected officials on important HOA-related issues and proposed laws.

7 CLAC exercises members’ constitutional right to participate in the political process. CLAC builds important relationships with government officials and develops a network of peers that helps protect HOA home values.

8 Giving is easy and can be done online at www.caiclac.com or by filling out and returning the BuckA-Door donation form on page 6.

9 It is legal for HOAs to donate money from assessments to CLAC. The board may spend community funds on protecting the association and its owners by supporting constructive state legislation and opposing offensive legislation.

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FOLLOWING ARE 12 IMPORTANT REASONS WHY YOU SHOULD DONATE TO CLAC. 10 Donations received are used for legislative advocacy, and may include printing and mailing expenses, lobbyist fees, and administrative services.

11 Senate and Assembly committees ask CLAC for input as HOA legislation is proposed and debated. CLAC is also contacted by the Governor’s Office for input about HOA legislation before it is vetoed or signed into law.

12 CLAC has become the recognized resource for providing accurate, timely and influential input to California legislators. CLAC employs a fulltime contract lobbyist in Sacramento. The CLAC representatives that determine industry positions on proposed legislation include representatives from the three major CAI membership categories: Homeowner Leaders (homeowners, HOA board members); Business Partners (attorneys, developers, reserve analysts, contractors, accountants, insurance representatives, and others) and Community Managers (managers and management companies).

Each of the eight California chapters provides two delegates and one liaison to CLAC. If you are interested in serving on CLAC, contact the CAI-CV office.

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CAI-CLAC 2021 Accomplishments ADAPTING TO COVID-19 The 2021 Legislative Session was again impacted by COVID-19 limiting in-person participation in legislative hearings. It also required CAI-CLAC to host its first virtual Legislative Days at the Capitol, which was a huge success and included more than 200 participants over multiple days of meetings.

2021 also turns out to be one of the most successful Legislative Sessions in recent memory for CAI-CLAC. We monitored nearly 50 bills and actively engaged on more than ten.

Below is a list of our accomplishments for 2021 which could not have been possible without the participation of our Chapter Legislative Support Committees and members throughout the State.

AB 502 (DAVIES) – ELECTION BY ACCLAMATION AS INTRODUCED: AB 502 sought to delete the 6,000-unit limitation for election by acclamation placed into law by SB 754 (Moorlach, 2019). As amended, AB 502 authorizes any association to elect board members by acclamation when the number of candidates is less than or equal to the number of vacancies. However, the Legislature did extend the time for initial notice of an election and requires an additional individual notice to the membership. An association is also limited to no more than three consecutive elections without a secret ballot election.

POSITION: Support.

RESULT: This bill passed the Legislature with bipartisan support and was signed by the Governor.

AB 1101 (IRWIN) – ASSOCIATION FINANCES AS INTRODUCED: AB 1101 sought to clarify issues members had with AB 2912 (Irwin, 2018). This bill clarifies the type of insurance an association needs to protect against embezzlement. The bill also clarifies when a transfer requires board approval.

POSITION: CAI-CLAC Sponsored Legislation.

RESULT: This bill passed the Legislature with bipartisan support and was signed by the Governor.

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The California Legislative Action Committee (CLAC)

AB 1584 (COMMITTEE ON HOUSING) – SHORT TERM RENTAL CLEAN-UP AS INTRODUCED: AB 3182 (Ting) created new rental restrictions on associations, which requires, among other things, governing documents to be amended in compliance with the new changes by January 1, 2022. AB 1584 includes language allowing the governing documents to be amended in compliance with the changes in AB 3182 by a vote of the Board and extends the deadline to July 1, 2022.

POSITION: Support.

RESULT: This bill passed the Legislature with bipartisan support and was signed by the Governor.

SB 9 (ATKINS) – SINGLE FAMILY RESIDENTIAL ZONING – LOT SPLITTING AS INTRODUCED: SB 9 requires ministerial approval of a housing development of no more than two units in a singlefamily zone (duplex), the subdivision of a parcel zoned for residential use into two parcels (lot split), or both.

POSITION: Opposed unless amended to exclude CIDs. RESULT: The author submitted a Letter to the Journal clarifying the bill was not intended to impact the governing documents of a common interest development. This bill passed the Legislature with bipartisan support and signed by the Governor.

SB 60 (GLAZER) – SHORT TERM RENTALS – LOCAL ORDINANCE ENFORCEMENT

SB 391 (MIN) – VIRTUAL MEETINGS AS INTRODUCED: SB 391 authorizes common interest development (CID) boards to meet by teleconference, without identifying a physical location where CID members may attend, in an area affected by a disaster or emergency which makes it impossible to meet in person.

POSITION: Support.

RESULT: This bill passed the Legislature with bipartisan support and signed by the Governor.

SB 432 (WIECKOWSKI) – ELECTIONS AS INTRODUCED: SB 432 addresses a number of technical issues created by the passage election legislation from 2019, including: requiring (rather than authorizing) a homeowners association (HOA) to disqualify a nominee for a board director slot under specified circumstances; clarifying a candidate for an HOA board must be in compliance with a payment plan for any overdue assessments (rather than simply being required to enter into a payment plan); specifying any requirements placed on nominees must also be placed on existing directors; amending the corporations code for recall elections to be consistent with the election timelines in the Civil Code; and requiring an HOA to retain election materials for one year after the election.

POSITION: Neutral.

RESULT: This bill passed the Legislature with bipartisan support and signed by the Governor.

AS INTRODUCED: SB 60 would raise the maximum fines for violation of an short-term rental ordinance that poses a threat to health or safety, to $1,500 for a first violation, $3,000 for a 2nd violation of the same ordinance within one year, and $5,000 for each additional violation of the same ordinance within one year of the first violation. The bill would make these violations subject to the process for granting a hardship waiver.

POSITION: Support.

RESULT: The bill passed the Legislature with bipartisan support and was signed by the Governor.

CAL·CLAC IS ALWAYS LOOKING FOR IDEAS FOR COMMON SENSE LEGISLATION TO SPONSOR. PLEASE SEND IDEAS/FEEDBACK TO OUR LEGISLATIVE STRATEGY AND RESEARCH COMMITTEE AT LSRC@CAICLAC.COM. CAI-CV.org

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Community Association Board Resolution for CAI-CLAC Contribution Whereas, The Association (hereafter referenced as the “Association”) board serves in the best interests of all owners in the community; and Whereas, The Association directors have the fiduciary responsibility to manage the assets of the Association according to California law, established business practices and principles, and pursuant to competent, ethical and positive community governance; and Whereas, Community Associations Institute (CAI) is the leading advocate for common-interest communities before state and federal legislative and regulatory bodies; and Whereas, CAI's California Legislative Action Committee (CLAC) represents the interests of community associations in California, sponsors legislation which benefits community associations and their members, and disseminates information to California community associations about legislative issues; and Whereas, Current and future Association residents benefit directly from CLAC's advocacy efforts; and Whereas, CLAC's efforts are funded solely through contributions from CAI members and fundraising efforts by CAI chapters in California; and Whereas, contributing to the CAI-CLAC will not affect the association’s nonprofit tax status; and Therefore be it Resolved, That the Association invest in a full or partial board membership package; and That it is the policy of the Association that the Association make an annual contribution to CLAC for , in the amount of $ , that is, ($1 for each (unit/lot) in the Association, coded to general administration; and That the Association strongly encourages its manager and directors to take advantage of the information provided by CLAC regarding pending and enacted state legislation that allows them to keep abreast of the rights and responsibilities of community associations under California law.

SO RESOLVED BY THE BOARD OF DIRECTORS on this, the of in the year .

CLICK HERE FOR A

FILLABLE FORM

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The California Legislative Action Committee (CLAC)

Name Secretary of the Association

Our thanks to the law firm of Richardson Ober | DeNichilo for preparing this sample resolution. An electronic version is available online at www.cai-cv.org.

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CLAC Buck-A-Door Campaign HOA PLEDGE __________________ X $__________________ = $_________________

Number of Doors

Buck A Door

Total Pledge

PLEASE LET US KNOW YOUR CAI CHAPTER Bay Area Central California North

Channel Islands Coachella Valley

Greater Inland Empire Greater Los Angeles

Orange County Regional San Diego

__________________________________________________________________________________________________ NAME

__________________________________________________________________________________________________ TITLE

__________________________________________________________________________________________________ ASSOCIATION NAME

__________________________________________________________________________________________________ ADDRESS

__________________________________________________________________________________________________ CITY

STATE ZIP

__________________________________________________________________________________________________ PHONE E-MAIL

METHOD OF PAYMENT – RETURN THIS COMPLETED FROM TO THE ADDRESS BELOW Check enclosed payable to cai-clac Credit Card – Amex Visa Mastercard Discover (circle one) __________________________________________________________________________________________________ NAME ON CARD

__________________________________________________________________________________________________ BILLING ADDRESS

__________________________________________________________________________________________________ CITY

STATE ZIP

__________________________________________________________________________________________________ CREDIT CARD NUMBER

SECURITY CODE

EXPIRATION DATE

__________________________________________________________________________________________________ SIGNATURE DATE

CAI California Legislative Action Committee (CLAC), is a 501(C)_(6) not-for-profit organization. Contributions or gifts to CAI California Legislative Action Committee are not deductible for federal income tax purposes.

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CLAC | 888.909.7403 | WWW.CAICLAC.COM 1809 S STREET | SUITE 101-245 | SACRAMENTO, CA 95811

The California Legislative Action Committee (CLAC)