Condo Law Bill ‘Enfranchises 4 Million Californians’--Davis

Comprehensive changes to the common-interest subdivision law, which affects more than 4 million Californians, have been signed into law by Gov. George Deukmejian. They were contained in a bill, AB 314, introduced by Assemblyman Gray Davis (D-Los Angeles).

The changes go into effect on Jan. 1. One provision reduces from 20% to 10% the amount of increases in annual assessments that may be made by the board of directors without the approval of the unit owners.

Other provisions make assessments delinquent when they are 15 days overdue, require that every common-interest subdivision have a homeowners association and give clear authority to the homeowners associations to enforce their governing documents in court.

Davis, chairman of the Assembly Housing and Community Development Committee, commented, “(This bill) will enfranchise more than 4 million Californians who have never been recognized as first-class citizens under the law. Homeowner associations will finally be able to operate as the businesses they were intended to be.”

The bill, passed with no dissenting vote, makes changes in the establishment, operation and maintenance of common-interest subdivisions, which include condominiums, stock cooperatives, limited-equity cooperatives, planned developments and community apartment projects.