SB 900: 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 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, unless the utility service that failed is required to be 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 associations board to commence the process to make those repairs within 14 days, as provided. If there are insufficient funds in reserve to cover the cost of repairs, the bill would authorize an association to obtain competitive financing to commence repairs or replacements without a vote and to levy an emergency assessment to repay the loan if certain conditions are met. If the board is unable to reach a quorum during the 14-day period, the bill would require a limited reduced quorum at the next duly noticed board meeting, only for the vote to commence the process to make repairs. The bill would also authorize directors of an association to vote by electronic means for purposes of initiating repairs or replacements pursuant to the bills 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 (A) 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, and (B) the disaster or emergency materially impacts the associations ability to comply with the above-described requirements or duties.

(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 associations 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, 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 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.