Bill Text: CA SB290 | 2015-2016 | Regular Session | Amended
Bill Title: Common interest developments: assessment collection: foreclosure: notice.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2016-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB290 Detail]
Download: California-2015-SB290-Amended.html
BILL NUMBER: SB 290 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 13, 2015
INTRODUCED BY Senator Vidak
FEBRUARY 23, 2015
An act to amend Sections 5710 and 6822
Section 5705 of the Civil Code, relating to common interest
developments.
LEGISLATIVE COUNSEL'S DIGEST
SB 290, as amended, Vidak. Common interest developments.
developments: assessment collection: foreclosure:
notice.
The Davis-Stirling Common Interest Development Act defines and
regulates common interest developments and requires that a
development be managed by an association. The act requires specified
procedures for the collection of delinquent assessments, including,
but not limited to, a procedure for giving notice to an owner of a
separate interest of foreclosure of a lien for delinquent
assessments. The existing procedure requires the board of directors
of an association to provide notice by personal service to an owner
of a separate interest who occupies the separate interest, or to the
owner's legal representative, if the board votes to foreclose upon
the separate interest, as specified.
This bill would additionally allow the board to serve an owner or
owner's representative with notice by substituted service, as
provided.
The Davis-Stirling Common Interest Development Act governs the
management and operation of common interest developments, except for
those developments limited to industrial or commercial uses, which
are governed by the Commercial and Industrial Common Interest
Development Act. Each act requires specified procedures for the
collection of delinquent assessments, including, but not limited to,
a trustee sale.
This bill would make technical, nonsubstantive changes to these
procedures.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 5705 of the Civil
Code is amended to read:
5705. (a) Notwithstanding any law or any provisions of the
governing documents to the contrary, this section shall apply to
debts for assessments that arise on and after January 1, 2006.
(b) Prior to initiating a foreclosure on an owner's separate
interest, the association shall offer the owner and, if so requested
by the owner, participate in dispute resolution pursuant to the
association's "meet and confer" program required in Article 2
(commencing with Section 5900) of Chapter 10 or alternative dispute
resolution as set forth in Article 3 (commencing with Section 5925)
of Chapter 10. The decision to pursue dispute resolution or a
particular type of alternative dispute resolution shall be the choice
of the owner, except that binding arbitration shall not be available
if the association intends to initiate a judicial foreclosure.
(c) The decision to initiate foreclosure of a lien for delinquent
assessments that has been validly recorded shall be made only by the
board and may not be delegated to an agent of the association. The
board shall approve the decision by a majority vote of the directors
in an executive session. The board shall record the vote in the
minutes of the next meeting of the board open to all members. The
board shall maintain the confidentiality of the owner or owners of
the separate interest by identifying the matter in the minutes by the
parcel number of the property, rather than the name of the owner or
owners. A board vote to approve foreclosure of a lien shall take
place at least 30 days prior to any public sale.
(d) The board shall provide notice by personal service or
substituted service in accordance with the manner of service of
summons in Article 3 (commencing with Section 415.10) of Chapter 4
of Title 5 of Part 2 of the Code of Civil Procedure to an owner of a
separate interest who occupies the separate interest or to the owner'
s legal representative, if the board votes to foreclose upon the
separate interest. The board shall provide written notice to an owner
of a separate interest who does not occupy the separate interest by
first-class mail, postage prepaid, at the most current address shown
on the books of the association. In the absence of written
notification by the owner to the association, the address of the
owner's separate interest may be treated as the owner's mailing
address.
SECTION 1. Section 5710 of the Civil Code is
amended to read:
5710. (a) A sale by the trustee shall be conducted in accordance
with Sections 2924, 2924b, and 2924c applicable to the exercise of
powers of sale in mortgages and deeds of trust.
(b) In addition to the requirements of Section 2924, the
association shall serve a notice of default on the person named as
the owner of the separate interest in the association's records or,
if that person has designated a legal representative pursuant to this
subdivision, on that legal representative. Service shall be in
accordance with the manner of service of summons in Article 3
(commencing with Section 415.10) of Chapter 4 of Title 5 of Part 2 of
the Code of Civil Procedure. An owner may designate a legal
representative in a writing that is mailed to the association in a
manner that indicates that the association has received it.
(c) The fees of a trustee may not exceed the amounts prescribed in
Sections 2924c and 2924d, plus the cost of service for either of the
following:
(1) The notice of default pursuant to subdivision (b).
(2) The decision of the board to foreclose upon the separate
interest of an owner as described in subdivision (d) of Section 5705.
SEC. 2. Section 6822 of the Civil Code is
amended to read:
6822. (a) A sale by the trustee shall be conducted in accordance
with Sections 2924, 2924b, and 2924c applicable to the exercise of
powers of sale in mortgages and deeds of trust.
(b) In addition to the requirements of Section 2924, the
association shall serve a notice of default on the person named as
the owner of the separate interest in the association's records or,
if that person has designated a legal representative pursuant to this
subdivision, on that legal representative. Service shall be in
accordance with the manner of service of summons in Article 3
(commencing with Section 415.10) of Chapter 4 of Title 5 of Part 2 of
the Code of Civil Procedure. An owner may designate a legal
representative in a writing that is mailed to the association in a
manner that indicates that the association has received it.
(c) The fees of a trustee may not exceed the amounts prescribed in
Sections 2924c and 2924d, plus the cost of service for the notice of
default pursuant to subdivision (b).
