Common Interest Developments: governing documents: assessments.

Plain English Breakdown

The official source material does not provide specific details on penalties or costs if an association fails to send out required notices.

Common Interest Developments: Rules for Assessments

AB-2439 changes rules about how associations manage assessments and payments in common interest developments, including restrictions on governing documents regarding public road use and requirements for notifying members of assessment payment changes.

What This Bill Does

• It stops governing documents from putting limits on how members can use public roads, except under certain conditions.
• It requires associations to send certified mail notices within 60 days if there is a change in who can receive assessment payments.
• If an association does not follow the correct process before placing a lien on a member's property for unpaid assessments, they must start over and pay extra costs.
• The bill makes sure that interest rates on late fees and other charges do not exceed 12% per year unless stated otherwise in the declaration.

Who It Names or Affects

• Members of common interest developments who have to pay assessments.
• Associations managing common interest developments.

Terms To Know

Common Interest Development

A type of property where multiple people own individual units but share common areas, like a condominium complex or planned community.

Governing Documents

The rules and regulations that guide how a common interest development is run, including the association's bylaws and covenants.

Limits and Unknowns

• It does not specify what happens if an association fails to send out required notices.
• There is no effective date provided for when the new rules will start.

Official Summary Text

AB 2439, as amended, Blanca Rubio.
Common Interest Developments:
Assessments.
governing documents: assessments.
Existing law, the Davis-Stirling Common Interest Development Act, governs the management and operation of common interest developments. Existing law limits the authority of the governing documents, as defined, to regulate the use of a member’s separate interest.
This bill would prohibit the governing documents from imposing restrictions on a member’s use of public roads, except as specified.
Existing law requires that a common interest development be managed by an association and requires that the association levy assessments to fulfill its obligations. Existing law provides that assessments of the association, late charges, reasonable costs of collection, attorney’s fees, and interest, as specified, are a debt of a member
at the time the assessment or other sums are levied. Existing law requires that an association provide a member making a payment a receipt, upon request, that indicates the date of payment and the person who received it and to provide a mailing address for overnight payment of assessments in the annual statement.
This bill would require the association to notify the members by certified mail, return receipt requested, of a change of a person authorized to receive payment of assessments within 60 days of the change.
Existing law provides that assessments, including the costs of collection, late charges, and interest, are a lien on the member’s separate interest when the association records a notice of delinquent assessment and follows a specified process, including providing the owner of record a specified notice, at least 30 days prior to recording a lien upon the separate interest. Existing law requires that an association
that fails to comply with these procedures recommence the required notice process, prior to recording a lien, and bear the cost of recommencing the notice process.
The bill would make the association board liable to the member for specified costs and penalties, if the association fails to comply with these procedures.
Existing law, the Davis-Stirling Common Interest Development Act, governs the management and operation of common interest developments by an association. Existing law authorizes interest to accrue on all sums imposed, including delinquent assessments, reasonable fees and costs of collection, and reasonable attorney’s fees, at an annual interest rate not to exceed 12%, commencing 30 days after the assessment becomes due, unless a lesser rate is specified in the declaration.
This bill would make a nonsubstantive change to those provisions.

Current Bill Text

Download Bill PDF