AB 2579: Common interest developments: discipline.

Existing law, the Davis-Stirling Common Interest Development Act, governs the formation and operation of common interest developments. Existing law requires that a common interest development be managed by an association.

Existing law requires the board of an association, if the association adopts or has adopted a policy imposing any monetary penalty on any association member for a violation of the governing documents, to adopt and distribute to each member a schedule of the monetary penalties that may be assessed for those violations, as provided. Existing law prohibits a monetary penalty for a violation of the governing documents from exceeding the lesser of the amount stated in the schedule that is in effect at the time of the violation or $100 per violation, except if the violation might result in an adverse health or safety impact on the common area or another association members property, as specified.

This bill would remove the exception if the violation might result in an adverse health or safety impact on the common area or another association members property, and would, instead, also except if the violation might result in, among other things, certain fire or environmental hazards, including the storage of any flammable or combustible material in a common area. is contained in a specified list developed and published by the Department of Real Estate. In this regard, the bill would require the department, on or before January 1, 2028, to develop and publish a list of specified violations for which an association may impose a monetary penalty that is greater than $100, as specified. The bill would require the list to be limited to violations that are clearly defined and address significant risks to health, safety, or the integrity of the common interest development.

Existing law requires the board to notify a member in writing at least 10 days before a meeting to consider or impose discipline or a monetary charge on a member, as specified. Existing law requires the board to give a member the opportunity to cure a violation prior to the meeting, and prohibits the board from imposing discipline if the member cures the violation prior to the meeting or, if curing the violation would take longer than the time between the notice provided and the meeting, the member provides financial commitment to cure the violation.

This bill would specify that a member engaged in habitual, repeated, or continuing violations is not deemed to have cured a violation simply because the violation is not occurring at the time of the hearing.