AB 2439: Common Interest Developments: 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 members separate interest.

This bill would prohibit the governing documents from imposing restrictions on a members 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, attorneys 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 through individual notice by either electronic delivery or first-class mail, evidenced by a certificate of mailing, as specified, if the person or entity authorized to receive payment of assessments on behalf of the association changes, within 60 days of the change. The bill would require the association to maintain records confirming that individual notices were distributed and to make reasonable effort to post a physical copy of the notice in the associations common areas.

Existing law provides that assessments, including the costs of collection, late charges, and interest, are a lien on the members 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.