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California Legislative Update
BY JENNIFER WADA, ESQ.
State Homes In On Housing
CACM Lobbies to Minimize Impact of New Bills on CIDs
The Legislature is now in full swing. Legislators are running between committee hearings to vote and present bills. Lobbyists are abuzz advocating for their positions. Legislative staff is trying to keep up with it all. The political machine is cranking. And this year, like every year, CID bills abound. But, unlike in the past, today there’s a particular focus on housing issues.
Governor Gavin Newsom set the tone when he took office in January, “The California Dream is in peril if we don’t act to address this housing crisis. The cost of housing – both for homeowners and renters – is the defining qualityof-life concern for people across this state. That’s why I’m proposing a series of unprecedented actions to tackle this crisis head-on.”
From this, numerous bills are making their way through the Legislature that focus on affordable housing, including transit-oriented and workforce housing. In the spirit of increasing housing supply, there are also various bills on Accessory Dwelling Units (ADUs). CIDs don’t come out of this unscathed. AB 670 (Friedman) would prohibit associations of single-family residential developments from prohibiting the construction of an ADU or junior ADU.
CACM has been in discussions with the author, sponsor and policy committee to ensure that associations are given great deference with respect to the ability to impose reasonable restrictions.
In our discussions with the Legislature, we have cited concerns about lot sizes and the invasion of neighbor privacy, parking impacts, strains on common area and amenities, short-term rental impacts, among other things. We have been told that the intent is to increase permanent housing supply without negatively impacting associations or their governing documents. We are seeking amendments that would allow wide latitude with respect to reasonable restrictions.
Ironically, while Governor Newsom and the Legislature are focused on affordability, SB 323 (Wieckowski) is making a repeat appearance and would impose unnecessary limitations on HOA elections that would increase costs for all homeowners.
This bill is a redo of last year’s SB 1265, which would eliminate an association’s authority to impose candidate qualifications except under limited circumstances, such as a member being convicted of a financial crime within the last 20 years. The bill would allow an association to disqualify a candidate for delinquency in regular assessments but this could only be done through bylaws – at the increased expense of the homeowner.
SB 1265 also has other problems including shifting the burden of proof to the association to prove it did not violate election rules when sued by a homeowner. CACM is fighting this bill yet again. Tom
Freeley, CACM’s president and CEO, testified in opposition before the Senate Judiciary Committee and intends to do the same at future committee hearings.
In addition to arguing that this bill is nonsensical, CACM is reiterating that existing law already micromanages the election process and a one-size-fits-all approach is unworkable. Unfortunately, we aren’t confident that Governor Newsom will veto the bill like his predecessor. What we don’t want is for the bill to be enacted in its current form, so CACM is deep in negotiations on this bill.
Other Bills to Keep an Eye On
SB 434 (Archuleta). CACM is a co-sponsor with CAI-CLAC of this bill. It would require a managing agent whose management agreement has been terminated to produce client property and records within a specified period of time pursuant to a written request by an association. This bill would ensure that management companies that are onboarding with an association will receive association property and records in a timely fashion.
SB 754 (Moorlach). The election by acclamation bill is back. It is uncertain whether this bill will meet the same fate as it did last year when the Senate Judiciary Committee held it hostage until it was amended with the same candidate qualification language in then-SB 1265 (the election bill, which is now SB 323). SB 754 had the luck of avoiding Senate Judiciary this year so we will hope for a better outcome. CACM supports this measure.
SB 326 (Hill). This is the balcony bill for CIDs and is being sponsored by CAI. This bill would require a visual inspection of load-bearing components and associated waterproofing systems to determine whether exterior elevated elements in condo associations are in safe condition. It would also prohibit developers from having veto authority over whether to commence construction defect litigation. For obvious reasons, this bill is being negotiated with the California Building Industry Association.
AB 1020 (Irwin). Given all of the focus on the importance of housing in California, the California Association of Realtors is sponsoring this bill. It would create a stand-alone Housing Agency in state government, which would consist of the Department of Real Estate, the Department of Housing and Community Development, and the California Housing Finance Agency. The agency would be under the supervision of the Secretary of Housing, who would be appointed by the governor.
Jennifer Wada, Esq. is an attorney, CACM’s legislative advocate and principal of Wada Government Relations in Sacramento.
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We recently honored those who put in countless hours to provide value to the people they serve: association clients, homeowners and even other CACM members. Through the Vision Awards Program, CACM identifies those who exemplify the very best in the profession of community management; honors their contributions to the profession; and recognizes the positive difference that they have made in the lives of their colleagues, association homeowners and the communities that they serve.
Eligible Vision Award nominees are CACM members who continually exceed accepted standards of professionalism and skill, display a commitment to excellence, and exhibit high ethical standards.
NORTHERN CALIFORNIA
INNOVATOR AWARD
Laura Ravazza, CCAM-PM
EDUCATIONAL EXCELLENCE AWARD
Donald Haney, CPA CiD Consortium, LLC, ACMC
PATH TO PROFESSIONALISM AWARD
Melissa Hajostek, CCAM-PM Bay Area Property Services
INSPIRATIONAL CULTURE AWARD
Homeowners Management Company, LLC (HMC)
2019 Vision Award Winners!
SOUTHERN CALIFORNIA
EDUCATIONAL EXCELLENCE
James Judge, Esq. The Judge Law Firm, ALC
Black and white and reversed.
RISING STAR AWARD
Victoria York, CCAM Powerstone Property Management, ACMC
PATH TO PROFESSIONALISM AWARD
Randy Howard, CCAM The Management Trust – Southern California, ACMC
INNOVATOR AWARD
Jeff Leinen, CCAM East Lake Village Community Association (ELVCA) Solid black and white and reversed for specialty printing.
INSPIRATIONAL CULTURE AWARD
The Management Trust – Southern California, ACMC
CLIENT EDUCATION AWARD
Powerstone Property Management, ACMC
CORPORATE SOCIAL RESPONSIBILITY AWARD
The Management Trust – Southern California, ACMC
Pantone 5773 Pantone 2767
CMYK 29 10 52 32 CMYK 100 90 10 77 RGB 137 144 100 Hex 899064 RGB 19 41 75 Hex 13294B Vision Awards 2020
