Plain English Breakdown
The source text cuts off mid-sentence regarding the requirement for homeowners associations to give members an opportunity to cure violations before fines are imposed.
AB-130: Housing Rules for Small Units, Foreclosures, and HOA Fines
This law bans fees in deed restrictions that limit small extra homes, changes how local agencies approve certain building permits, sets new rules to stop lenders from going silent before foreclosing on specific loans, and caps fines homeowners associations can charge members.
What This Bill Does
- Prohibits fees or financial requirements in deed restrictions that allow reasonable limits on accessory dwelling units (ADUs) or junior ADUs.
- Removes the state requirement for local agencies to automatically approve certain types of ADU permit applications without review.
- Allows local agencies to apply design and development standards to specific ADUs instead of being forced to use automatic approval processes.
- Makes it an unlawful practice for mortgage servicers to have no communication with a borrower about a subordinate loan for at least three years before starting foreclosure actions.
- Requires mortgage servicers to certify under penalty of perjury that they did not break these rules, or list all violations, when recording a notice of default.
- Limits monetary fines imposed by homeowners associations to the lower amount listed in their schedule or $100 per violation.
Who It Names or Affects
- Local agencies and city governments handling building permits for accessory dwelling units.
- Homeowners who want to build small extra housing units on single-family lots.
- Mortgage servicers managing subordinate mortgages or loans with long periods of no contact.
- Members of common interest developments, such as condominiums or planned communities.
Terms To Know
- Accessory Dwelling Unit (ADU)
- A small secondary housing unit built on the same lot as a main house.
- Junior Accessory Dwelling Unit (JADU)
- An ADU created inside an existing single-family home, often using part of the current living space.
- Ministerial Approval
- A process where officials must approve a permit if it meets written rules without holding hearings or making subjective judgments.
- Common Interest Development
- Housing communities like condominiums that are managed by an association with shared rules and fees.
Limits and Unknowns
- The official text provided is truncated, so the full details about how homeowners associations must allow members to fix violations before being fined are not available.
- The effective date for when these new laws begin is listed as blank in the official metadata.