Bill Text: CA SB900 | 2023-2024 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Common interest developments: repair and maintenance.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2024-09-19 - Chaptered by Secretary of State. Chapter 288, Statutes of 2024. [SB900 Detail]
Download: California-2023-SB900-Amended.html
Bill Title: Common interest developments: repair and maintenance.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2024-09-19 - Chaptered by Secretary of State. Chapter 288, Statutes of 2024. [SB900 Detail]
Download: California-2023-SB900-Amended.html
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Amended
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Assembly
June 05, 2024 |
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Amended
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Senate
May 06, 2024 |
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Amended
IN
Senate
April 18, 2024 |
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Amended
IN
Senate
February 27, 2024 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Senate Bill
No. 900
| Introduced by Senator Umberg |
January 03, 2024 |
An act to amend Sections 4775, 5550, and 5610 of the Civil Code, relating to common interest developments.
LEGISLATIVE COUNSEL'S DIGEST
SB 900, as amended, Umberg.
Common interest developments: repair and maintenance.
(1) Existing law, the Davis-Stirling Common Interest Development Act, governs the management and operation of common interest developments, and requires an association to manage a common interest development. Existing law, unless otherwise provided in the declaration of a common interest development, generally makes an association responsible for repairing, replacing, and maintaining the common area, except as specified.
This bill would make an association responsible for repairs and replacements for matters pertaining to the interruption of necessary to restore interrupted
gas, heat, water, or electrical services that begin in the common area even if the matter extends into another area, as specified. specified, unless the utility service that failed is maintained, repaired, or replaced by a public, private, or other utility service provider or otherwise provided in the declaration of a common interest development. The bill would require an association association’s board to commence the process to make those repairs or replacements within 10
14 days, as provided. If a vote does not occur within that 10-day period 14-day period to commence repairs, the bill would authorize an association to obtain competitive financing to commence repairs without a vote if certain conditions are met. The bill would also authorize board members directors of an association to vote by electronic means for purposes of initiating repairs pursuant to the bill’s provisions. The bill would additionally exempt an association from the above-described requirements and the general
duty to repair, replace, and maintain the common area, if the association is in an area affected by a state of disaster or emergency declared by the federal government, a state of emergency proclaimed by the Governor, or a local emergency proclaimed by a local governing body or official.
(2) Existing law requires an association to distribute an annual budget report 30 to 90 days before the end of its fiscal year. Under existing law, that budget report includes, among other things, a summary of the association’s reserve accounts. Existing law requires an association to perform a study of the reserve account requirements, and, as part of that study, to cause to be conducted a visual inspection of the accessible areas of major components that the association is obligated to repair, replace, restore, or maintain.
This bill would provide that, for purposes of
the above-referenced visual inspection, the term “major components” includes gas lines gas, water, and electrical service to the extent the association is required to repair or replace those parts.
(3) Existing law imposes specified duties on an association with respect to managing a common interest development, including levying regular and special assessments sufficient to perform its obligations. Existing law imposes limits on increases in those assessments, except those increases necessary for specified emergency situations, including an extraordinary expense necessary to repair or maintain the common interest development for which the association is responsible where a threat to personal safety on the property is discovered.
This bill would expand that emergency situation to include an extraordinary expense necessary to repair operate, repair, or maintain the common interest development for which the association is responsible where a threat to personal health or safety or another hazardous condition or circumstance on the property is discovered.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 4775 of the Civil Code is amended to read:4775.
(a) (1) Except as provided in paragraph (4), unless otherwise provided in the declaration of a common interest development, the association is responsible for repairing, replacing, and maintaining the common area.(2) (A) Unless otherwise provided in the declaration of a common interest development, development, or unless the utility service that failed is maintained, repaired, or replaced by a public, private, or other utility service provider, the association is responsible for repairs and
replacements for matters pertaining to the interruption of necessary to restore interrupted gas, heat, water, or electrical services that begin in the common area even if the matter extends into a separate interest or the exclusive use common area appurtenant to a separate interest.
(B) This paragraph does not change any legal duty or obligation of a utility company or local government to repair or replace items pertaining to gas, heat, water, or electrical services.
(3) Unless otherwise provided in the declaration of a common interest development, the owner of each separate interest is responsible for repairing,
replacing, and maintaining that separate interest.
(4) Unless otherwise provided in the declaration of a common interest development, the owner of each separate interest is responsible for maintaining the exclusive use common area appurtenant to that separate interest and the association is responsible for repairing and replacing the exclusive use common area.
(b) (1) An association association’s board shall commence the process to make repairs or replacements, as required by this section, within 10
14 days for matters pertaining to the interruption of gas, heat, water, or electrical services.
(2) If a vote does not take place to commence the process to make repairs before the end of the 10-day period 14-day period referenced in paragraph (1), and only if there are insufficient reserve funds available to cover the costs of repairs or replacements, as required by this section, an association may obtain competitive financing, in compliance with Section 5735, to pay for the costs of the repairs described in paragraph (1) without requiring a vote of the members.
However, before obtaining that financing, the board shall pass a resolution containing written findings regarding the nature of the association’s expenses and how the association’s reserves do not cover the necessary costs. The resolution shall be distributed to the members with the notice of assessment.
(3) If board members directors of an association are required to vote to initiate any repairs pursuant to this subdivision, voting may be performed by electronic means, including, but not limited to, email.
(4)If substantial repairs are needed to a common interest development’s gas, heat, water, or electrical services, a representative from the impacted utility shall address the association in person to provide a description of the problem, suggested solutions, and expected timelines.
(c) The costs of temporary relocation during the repair and maintenance of the areas within the responsibility of the association shall be borne by the owner of the separate interest affected.
(d) Nothing in this section shall be construed to result in the personal liability of a board member director of an association.
(e) This section shall not apply if the association is in an area affected by one or more of the following conditions:
(1) A state of disaster or emergency declared by the federal government.
(2) A state of emergency proclaimed by the Governor pursuant to Section 8625 of the Government Code.
(3) A local emergency proclaimed by a local governing body or official under Section 8630 of the Government Code.
SEC. 2.
Section 5550 of the Civil Code is amended to read:5550.
(a) At least once every three years, the board shall cause to be conducted a reasonably competent and diligent visual inspection of the accessible areas of the major components that the association is obligated to repair, replace, restore, or maintain as part of a study of the reserve account requirements of the common interest development, if the current replacement value of the major components is equal to or greater than one-half of the gross budget of the association, excluding the association’s reserve account for that period. The board shall review this study, or cause it to be reviewed, annually and shall consider and implement necessary adjustments to the board’s analysis of the reserve account requirements as a result of that review.(b) The study required by this section shall at a minimum include:
(1) Identification of the major components that the association is obligated to repair, replace, restore, or maintain that, as of the date of the study, have a remaining useful life of less than 30 years.
(2) Identification of the probable remaining useful life of the components identified in paragraph (1) as of the date of the study.
(3) An estimate of the cost of repair, replacement, restoration, or maintenance of the components identified in paragraph (1).
(4) An estimate of the total annual contribution necessary to defray the cost to
repair, replace, restore, or maintain the components identified in paragraph (1) during and at the end of their useful life, after subtracting total reserve funds as of the date of the study.
(5) A reserve funding plan that indicates how the association plans to fund the contribution identified in paragraph (4) to meet the association’s obligation for the repair and replacement of all major components with an expected remaining life of 30 years or less, not including those components that the board has determined will not be replaced or repaired.
(c) For purposes of this section, “major components” includes gas lines
gas, water, and electrical service to the extent that the association is responsible for repair or replacement of those lines pursuant to Section 4775.
SEC. 3.
Section 5610 of the Civil Code is amended to read:5610.
Section 5605 does not limit assessment increases necessary for emergency situations. For purposes of this section, an emergency situation is any one of the following:(a) An extraordinary expense required by an order of a court.
(b) An extraordinary expense necessary to repair operate, repair, or maintain the common interest development or any part of it for which the association is responsible where a threat to personal health or safety
or another hazardous condition or circumstance on the property is discovered.
(c) An extraordinary expense necessary to repair or maintain the common interest development or any part of it for which the association is responsible that could not have been reasonably foreseen by the board in preparing and distributing the annual budget report under Section 5300. However, before the imposition or collection of an assessment under this subdivision, the board shall pass a resolution containing written findings as to the necessity of the extraordinary expense involved and why the expense was not or could not have been reasonably foreseen in the budgeting process, and the resolution shall be distributed to the members with the notice of assessment.
