Measure to restrict some foreclosures
A state bill restricting the use of home foreclosures to collect late homeowner association assessments passed the Senate without opposition Tuesday, representing a major initial victory for homeowner activists who live in more than 36,000 privately governed California neighborhoods.
Lawmakers introduced the bill after a retired Calaveras County couple lost their home in a nonjudicial foreclosure last year over a $120 late payment.
The measure would require that for amounts less than $2,500, associations take the matter to Small Claims Court or put a lien on the property.
Homeowner associations can now auction off homes for any late-payment amount, a practice forbidden in traditional neighborhoods governed by city halls or county courthouses.
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