COMMITTEE WE ARE GOING TO WE
DON'T REQUIRE ME THAT BUT WE'RE
GOING TO START AS A SUB
COMMITTEE -- IF EVERYONE COULD
PLEASE TURN OFF YOUR CELL PHONES
AND IF YOU HAVE ANY
CONVERSATIONS ON THE SIDE PLEASE
TAKE IT OUT IN THE HALLWAY -- WE
ARE -- FIVE MEASURES ON TODAY'S
AGENDA -- PLEASE KNOW THAT ITEMS
FOUR AND FIVE SB SIX FIFTY TWO
SB -- SEVEN FIFTY ONE ON THE
CONSENT CALENDAR SO WE'LL TAKE
THAT UP WHEN WE HAVE A QUORUM --
SO FOR THE THREE ITEMS THAT WE
HAVE TODAY WE WERE DOING FILE
ORDER I'LL START WITH ITEM
NUMBER ONE SB TWO FIFTY TWO BY
CENTER LEYVA.
GOOD AFTERNOON MISTER CHAIR GOOD
AFTERNOON MEMBERS.
ALL RIGHT SB TWO FIFTY TWO WOULD
CREATE AN INCENTIVE FOR PRIVATE
MOBILE HOME PARK OWNERS TO SELL
THEIR PARK TO THE RESIDENTS A
NONPROFIT AND AFFORDABLE HOUSING
ENTITY OR LOCAL GOVERNMENT.
AS WE ARE ALL WELL AWARE
CALIFORNIA IS EXPERIENCING A
SEVERE HOUSING CRISIS DUE TO THE
LACK OF AFFORDABLE HOUSING.
IT'S MOBILE HOMES AND
MANUFACTURED HOMES ARE AN
IMPORTANT OPTION HOUSING OPTION
IN CALIFORNIA WE MUST STRIVE TO
RESERVE THE AVAILABLE MOBILE
HOME STOCK.
SOME NONPROFIT AFFORDABLE
HOUSING PARTNERS ARE INTERESTED
IN MAINTAINING AFFORDABLE
HOUSING AND PURCHASING PARTS
FROM LONGSTANDING BUSINESS
OWNERS.
THERE MAY BE SITUATIONS WHEN
THEY'RE PARK OWNERS DECIDE TO
RETIRE.
LEAVE THE INDUSTRY AND SELL
THEIR PARKS WHEN THIS OCCURS
RESIDENTS FACE STEEP RENT
INCREASES OR EVEN DISPLACEMENT
WITH FEW OPTIONS OF WHERE TO
MOVE.
THIS BILL WOULD PROVIDE A
DEDICATION OF CAPITAL GAINS TAX
TO THE PARK OWNER WHO MAY WISH
TO LEAVE THE BUSINESS AND NOT
WANT TO DISPLACERESIDENTS.
THIS IS A VOLUNTARY PROGRAM FOR
THE PARK OWNERS AND NOT A FORCED
SALE.
IF THE PARK OWNER CELLS ARE
PROPERTY OF MARKET RATE THEY
WOULD BE ELIGIBLE 450% OF THEIR
CAPITAL GAINS EXCLUSION.
IF THE PARK OWNER SELLS BELOW
MARKET RATE THEY COULD BE
ELIGIBLE FOR UP 21100% OF
CAPITAL GAINS EXCLUSION.
MEMBERS SB TWO FIFTY TO HELP
PROTECT THIS LIMITED STOCK OF
AFFORDABLE HOUSING AND KEEPS LOW
INCOME FAMILIES AND OUR SENIORS
OFF THE STREETS.
I RESPECTFULLY ASK FOR AN AYE
VOTE IN BEFORE I INTRODUCED MY
WITNESSES IN SUPPORT I WOULD
JUST LIKE TO LET EVERYONE KNOW
HOW MANY MOBILE HOME PARKS THEY
HAVE IN THEIR DISTRICT.
SENATOR WIENER YOU ONLY HAVE FOR
PARKS WITH SIX HUNDRED AND
SEVENTY ONE SPACES.
SENATOR MORE LOCK YOU HAVE TWO
HUNDRED AND NINETEEN WITH TWENTY
SEVEN THOUSAND EIGHT HUNDRED AND
TWENTY EIGHT SPACES.
SENATOR ROTH YOU HAVE SIXTY
EIGHT WAS SEVENTY SEVEN HUNDRED
AND ONE SPACES.
SENATOR UMBERG I THINK YOU'RE
THE WINNER OF WHO'S HERE RIGHT
NOW WITH EIGHTY SEVEN AND TWELVE
THOUSAND THREE HUNDRED AND SIXTY
SEVEN SPACES AND I JUST ALWAYS
LIKE TO MAKE PEOPLE AWARE THAT
THEY HAVE SO MANY MOBILE HOME
PARKS IN THEIR DISTRICT.
AND THESE ARE FOLKS THAT WE
CAN'T FORGET ABOUT SO WITH THAT
I WOULD LOVE TO INTRODUCE A MY
WITNESSES IN SUPPORT.
ROB WIENER OF CALIFORNIA
COALITION FOR RURAL HOUSING IS A
SPONSOR AND REPRESENTS MANY
NONPROFIT HOUSING ENTITIES.
SUZANNE TAYLOR OF AUGUSTA'S
PROPERTIES WHICH I HAVE TO WORK
THEY ARE LOVELY MANAGES AND
OPERATES NONPROFIT MOBILE HOME
PARKS.
WITH THAT WHEN YOU'RE READY
MISTER CHAIR MEMBERS IN SUPPORT.
HI MY NAME IS SUZANNE TAYLOR --
THEY HAVE I'M GONNA READ FROM MY
PREPARED REMARKS IF THE CHAIR.
YES IF YOU WOULD BE VITAL
LIMITED TO ABOUT THREE MINUTES
OKAY GREAT THANK YOU I AM THE
FOUNDER AND EXECUTIVE DIRECTOR
OF A GUST COMMUNITIES IT'S A
CALIFORNIA NONPROFIT HOUSING
ORGANIZATION.
THAT WAS FOUNDED TWENTY ONE
YEARS AGO TO PROVIDE AFFORDABLE
OPPORTUNITIES IN MANUFACTURED
HOUSING.
I'VE BEEN DOING THIS FOR OVER
THIRTY YEARS AND BOTH
REDEVELOPMENT SETTING OUTSIDE
THEIR REDEVELOPMENT SETTING I
ALSO DO CONSULTING SERVICES FOR
INVESTOR OWNED.
AND OTHER NON.
PROFIT PARKS.
AUGUSTA IS SERVICE RIGHT NOW
1-200- HOUSEHOLDS WITH FORTY ONE
HUNDRED RESIDENTS IN A
COMMUNITIES ACROSS VENTURA
SANFORD SANFORD INDIANA ORANGE
AND TULARE COUNTIES WE ALSO --
OPERATE ON BEHALF OF THE CITY OF
LA HABRA TWO OF THEIR OF CITY ON
PARKS.
IN MANY OF THESE -- LOCALITIES
MANUFACTURED HOME AS SENATOR
LEYVA MENTIONED I'M REPRESENT
THE LARGEST STOCK OF AFFORDABLE
HOUSING IN THEIR IN THEIR AREA
SO THIS WORK IS MEANINGFUL AND
SIGNIFICANT.
WITHOUT THE TOOLS AVAILABLE TO
NON PROFITS -- THAT THAT WERE
AVAILABLE IN THE REDEVELOPMENT
YEARS IT'S BECOME INCREASINGLY
DIFFICULT TO COMPETE WITH DEEPER.
DEEP POCKET INVESTMENT GROUPS
OUR PRIMARY COMPETITION THESE
DAYS ARE NONTRADITIONAL BUYERS
SUCH AS HAD VARIOUS HEGE FUNDS
YOU'VE PROBABLY BEEN READING
ABOUT.
AND WHO HAVE AGGRESSIVE BUSINESS
PLANS CAN FUND INFRASTRUCTURE
AND HOME REPLACEMENTS AND HAVE
ACCESS TO BETTER ACQUISITION
FINANCING.
ANY TO THE LEGISLATURE CAN
PROVIDE IS VALUABLE TO US
KEEPING THESE FORMS OF THESE
HOMES AFFORDABLE.
DESPITE ACTIVELY LOOKING FOR
PROJECTS ON A DAILY BASIS THE
LAST PURCHASE A CUSTOM MADE WAS
THREE YEARS AGO IN A GOOD YEAR
THEIR BABY MAYBE ONE TWO OR
THREE PARKS PURCHASED BY ANY OF
THE NON PROFITS MOST EXPERIENCED
IN THESE MOBILE HOME PARKS AND
THAT'S A COLLECTIVE NUMBER.
JUST A COUPLE AT A TIME HERE AND
THERE THESE DAYS -- WITH THIS
INCENTIVE PROGRAM I THINK WE
COULD GET TO A COUPLE MORE EACH
YEAR AND THAT SOUNDS MAYBE JUST
LIKE A FEW BUT IT REALLY ADDS UP
SO IF YOU.
GO FROMONE PARK TO PARK A YEAR
TO FIVE PARKS YEAR.
THAT'S AN INCREASE OF AND LET'S
JUST SAY THEY'RE SMALL THEY'RE
HUNDRED SPACE PARKS THAT'S AN
INCREASE OF FIVE HUNDRED
AFFORDABLE SPACES WITH WITH
AFFORDABILITY COVENANTS OVERLAID.
AND A POPULATION OF MAYBE A
THOUSAND FIFTEEN HUNDRED OR MORE.
AGAINST THIS IS MEANINGFUL.
IN THE PAST YEAR ALONE WE'VE
IDENTIFIED THREE PARTS OF
INTEREST TO US THAT WE FELT WE
COULD FINANCE AND OPERATE
ACCORDING TO OUR MISSION.
IN EACH CASE THE SELLER'S
ACCEPTED OFFERS OVER THE
VALUATION PRICE -- ONE THAT WE
BELIEVED WE COULD SUPPORT
OFFERED QUICK CLOSING AND
OFFERED EXCHANGE PROPERTIES SO
IF THERE'S ANY OTHER IDEAS YOU
HAVE TO COMBAT THAT TYPE OF
COMPETITION AND TO PRESERVE
THESE HOUSING OPPORTUNITIES WE
APPRECIATE IT.
THIS INCENTIVE IS NOT COSTLY TO
THE STATE.
THAT IS BECAUSE IN OUR
ESTIMATION SELLO SELLERS
TYPICALLY DON'T SELL UNLESS THEY
FIND.
DON'T SELL UNLESS THEY CANNOT
FIND AN EXCHANGE PROPERTY.
OR SELL TO READ IN EXCHANGE FOR
SHARES OR OTHER LITERATURE
LEGITIMATE TAX AVOIDANCE PROP
PURPOSES THIS HELPS US AT LEAST
GET AN EDGE.
I THINK THIS INCENTIVE WILL
KNOWLEDGE SOME SELLERS WHO WON
OUT OF THE BUSINESS.
AND MAY HAVE.
THE COMPASSION FOR THEIR THEIR
RESIDENTS AND WANT TO HELP THE
MOVE FORWARD TO KEEP THEIR HOMES.
IT WILL NOT SELLERS WHO MIGHT
OTHERWISE CLOSER PARK OR ATTEMPT
TO SELL TO ANOTHER USE OR TO
CONVERT TO ANOTHER USE AND THEY
WOULD PRESERVE THOSE HOMES IN
THE PROCESS AS WELL.
AND IT WOULD PROVIDE AN IMPETUS
FOR THOSE SELLERS WHO ARE NOT
INTERESTED OR DO NOT HAVE THE
CAPITAL TO FUND INFRASTRUCTURE
IMPROVEMENTS. TO SELL THE PARK
AND AS YOU HAVE TOURED PROBABLY
YOUR MOBILE HOME PARKS IN YOUR
DISTRICT YOU'LL SEE THAT WHEN WE
STARTED THIS TWENTY YEARS AGO.
PARKS WERE IN GOOD CONDITION AND
THEIR THEIR EIGHTEEN RAPIDLY
TWENTY YEARS ON A MOBILE HOME
PARK IS MEANINGFUL -- AND IT
REQUIRES A LOT OF CAPITAL
INVESTMENT.
THAT'S REALLY ALL THE FOR
PREPARING YOU HAVE ANY OTHER
QUESTIONS THANK YOU VERY MUCH
AND MR ACOSTA BEFORE WE START
WITH YOU -- BUT WE DO HAVE
BIPARTISAN SUPPORT IN THIS BILL --
WELL I'D LIKE TO ESTABLISH A
QUORUM.
SENATOR WINNER PRESENT WIENER
PRESENT MORRELL BATES HERE BATES
PRESENT CAMERA.
CAMERA PRESENT DORADO.
REQUIRE MORE LOOK.
MORE LIKE PRESENT ROUGH.
ROUGH PRESENT SKINNER UMBERG.
UNDER PRESENT CASKEY CASKEY
PRESENT.
OKAY WE DO HAVE A QUORUM.
OKAY SIR CHRISTOPHER.
THANK YOU MISTER CHAIRMAN AND
MEMBERS I PICKED UP ON YOUR Q.
THERE SO I WOULD JUST SAY --
BRIAN AUGUSTA ON BEHALF OF THE
CALIFORNIA COALITION FOR RURAL
HOUSING PLEASE TO CO SPONSOR THE
BILL THE GOING TO BE IMPORTANT
TOOL FOR PRESERVING.
AFFORDABLE HOMEOWNERSHIP
OPPORTUNITIES IN MOBILE HOME
PARKS AND WE WOULD URGE AN AYE
VOTE.
THANK YOU VERY MUCH IS THERE ANY
ADDITIONAL SUPPORT FOR THE BILL.
PLEASE COME FORWARD.
LOUIS MARIN DAY WITH CALIFORNIA
BE WE DIDN'T GET OUR LETTER IN
ON TIME BUT DO SUPPORT THE BILL
THANK YOU.
YOUR ANY ADDITIONAL SUPPORT.
CASEY NOT IS THERE ANY
OPPOSITION TO THE BILL.
OKAY WORRY ABOUT THE COMMITTEE --
CENTER ROTH HAS MOVED THE BILL
ANY QUESTIONS OR COMMENTS CENTER
CABALLERO.
THANK YOU MISTER CHAIR AND AND
NOW CENTER LIVE AYE I REALLY.
LIKE THIS BILL -- MIGHT THE
CONCERN THAT I HAVE IT'S IT'S
TWO FOLD ONE IS -- AND I I DID
BROACH THIS WITH STAFF AND IT'S
IN REGARDS TO RENT INCREASES --
AND THERE'S A AT LEAST THE AND
IDEA THAT IT'S GOING TO TAKE
FUNDING FROM A PUBLIC SOURCES IN
THOSE PUBLIC SOURCES USUALLY
HAVE AFFORDABILITY -- WRITERS ON
THEM I JUST WANNA MAKE SURE THAT
HATEVER WE'RE DOING DOESN'T END
UP DISPLACING PEOPLE THAT LIVE
IN THAT IN THE PARKS AND SO.
YOU KNOW AS YOU MOVE ALONG IF
YOU CAN LOOK AT THE KIND OF
PROTECTIONS THAT MIGHT BE --
MIGHT BE APPROPRIATE I I WOULD
ENCOURAGE YOU TO TO THINK ABOUT
THEM I KNOW THAT'S NOT YOUR
INTENTION SO -- THAT'S NUMBER
ONE NUMBER TWO IS THAT -- IT MAY
IN THE MANY TIMES -- YOU KNOW WE
COME UP WITH WITH A GOOD IDEA TO
TO FORM COOPERATIVES AND AND
ALLOW PEOPLE -- TO THE IT LIKE
IN EACH A WAYS -- TO GO TO
MANAGING CONTROL IT THEMSELVES
AND WHEN MY EXPERIENCE IN MY
COMMUNITY IS THAT WHEN IT IT
INVOLVES A LOW INCOME COMMUNITY.
THERE'S A REAL NEED TO HAVE SOME
PROFESSIONAL ADVICE AVAILABLE
BECAUSE INVARIABLY THEY GET
THEMSELVES IN TROUBLE BECAUSE
THEY DON'T KNOW WHAT THE LAWS
ARE AND THE SOME PEOPLE WILL NOT
END UP PAYING THEIR DUES -- IF
YOU DON'T COLLECT THEM IN A
TIMELY WAY THEN YOU FALL WAY
BEHIND YOU DON'T HAVE THE
CAPITALIZATION TO MAKE THE THE
IMPROVEMENTS TO THE TO THE PARK
OR TO THE JOINTLY OWNED PROPERTY
AND SO.
IT'S REALLY IMPORTANT TO HAVE
SOME KIND OF PROFESSIONAL
OVERSIGHT AND SO I JUST I PUT
THAT OUT THERE BECAUSE WE'VE.
IN MANY INSTANCES HAVE HAD -- TO
GO IN AND HELP OUT THE H. ALWAYS
OR THAT THE TENANTS IN A WAY
THAT -- AS A CITY IN A WAY THAT
WE NEVER EXPECTED TO HAVE TO
SPEND PUBLIC DOLLARS IN A
PRIVATE -- ENDEAVOR AND THERE'S
THERE'S YOU HAVE TO IF YOU WANT
THOSE.
UP FACILITIES TO CONTINUE TO BE
AFFORDABLE SO I I JUST PUT THAT
OUT THERE I'M NOT LOOKING FOR
ANY -- COMMITMENTS RIGHT NOW BUT
I I'M I'M VERY COGNIZANT OF THE
NEED TO MAKE SURE WE'RE
PROTECTING THE THE VERY PEOPLE
THAT WERE TRYING TO CREATE
CREATE AND CONTINUED.
AS AFFORDABLE HOUSING.
THANK YOU US SENATE CARRERA
APPRECIATE THOSE COMMENTS --
THIS IS MY FIFTH YEAR IS THE
CHAIR OF THE SENATE SELECT
COMMITTEE ON MOBILE MANUFACTURED
HOMES AND ALL OF THE THINGS THAT
YOU'VE TALKED ABOUT ARE ISSUES
THAT WE HEAR WHEN WE HAVE TOWN
HALLS UP AND DOWN THE STATE.
H. ALWAYS -- I'VE LEARNED MORE
ABOUT H. ALWAYS AND I PROBABLY
CARE TO KNOW -- BUT WE THAT IT'S
ALWAYS A CONCERN AND TO YOUR
FIRST POINT -- WITH THE RISING
RENTS THIS BILL WOULD NOT CHANGE
ANYTHING THAT'S ALREADY IN PLACE
SO IF IT IS -- THAT IT CHANGES
OWNERSHIP AND GOES TO A
NONPROFIT THIS WOULD NOT CHANGE
THAT BUT THANK YOU I APPRECIATE
THOSE ARE AL THINGS ARE AT THE
TOP OF OUR MIND AS WELL
[inaudible]
FEDERAL WORK.
THANK YOU MISTER CHAIR -- I ALSO
LIKE THE IDEA I JUST.
IT WAS A LITTLE FRUSTRATED SO
WHEN I READ TO THE BILL LAST
YEAR ELEVEN SIXTEEN WHICH WOULD
DIE.
GIVE A FIRST TIME HOME BUYERS
THE ABILITY. TO BUY A HOME IF
THE SELLER WAS WILLING.
TO SELL TO A FIRST TIME HOME
BUYER TO INCREASE THEIR CAPITAL
GAINS.
EXEMPTION AMOUNT A LITTLE BIT.
SO THAT THE STATEBENEFITS A TAX
EXPENDITURE.
SO I'M I'M CURIOUS TO SEE HOW
THIS WILL MOVE FORWARD BECAUSE
MY BILL WENT THROUGH COMMITTEE
BUT DIED IN APPROACH.
SO.
I'M JUST TRYING TO SEE WHO WHO'S
TAKING CARE OF THE BIG PICTURE
OF ALL THE TAX EXPENDITURES I
KNOW WE'RE TALKING ABOUT LOOKING
AT TAX CREDITS TOMORROW IN
GOVERNANCE AND FINANCE BUT WHO'S
LOOKING AT THE OVERALL STRATEGY
OF HOW WE FIT THIS ALL IN.
IN TO HAVE A QUANTIFIED IT TO
AND HOW IT FIT IN THE WHOLE
PICTURE.
I AM NOT LOOKING AT THE OVERALL
STRATEGY.
THE THAT'S I DON'T SEE THAT IS
MY PURPOSE HERE AND THIS IS A
POLICY COMMITTEE I THINK THAT
APPROPRIATIONS WILL PROBABLY
LOOK AT IT -- AS YOU STATED WITH
YOUR BILL -- BUT I BUT I DON'T
KNOW WHO IS LOOKING OVER AT
LOOKING AT THE OVERALL STRATEGY
MAYBE THE GOVERNOR.
AND THEN HOW DO WE DEAL WITH --
DEALING WITH JUST ONE AREA OF
THE REAL ESTATE MARKET AND WHAT
ABOUT.
OTHER AREAS -- JUST CURIOUS IF
YOU HAVE SO WHAT I WOULD SAY
CENTER MORE LUCK IS MOBILE HOMES
ARE THE LAST BASTION OF
AFFORDABLE HOUSING THAT WE HAVE
IN THE STATE OF CALIFORNIA OVER
TWO MILLION PEOPLE LIVE IN
MOBILE HOMES.
SO WHAT THIS BILL AND THE
PREVIOUS FIVE BILLS THAT I'VE
AUTHORED THE BEEN SIGNED INTO
LAW REGARDING MOBILE HOMES HAVE
TRIED TO DO IS TRY TO MAKE SURE
THAT THEY ARE AFFORDABLE FOR
FOLKS.
THAT THEY STAY AFFORDABLE AND
THIS IS JUST ONE MORE WAY NOT
NECESSARILY ON THE AFFORDABLE
PEACE BUT TO MAKE SURE THE
MOBILE HOME PARK ISN'T SOLD TO A
STRIP MALL INSTANCES TO A
DEVELOPER WHO WANTS TO MAKE IT A
STRIP MALL.
WE NEED THESE MOBILE HOME PARKS
THIS BILL GOES ONE STEP FURTHER
AND MAKING SURE ORG ARE GIVING
US AN OPTION. TO KEEP THEM AS A
MOBILE HOME PARK AND NOT SELL
THEM TO A DEVELOPER WHO DO
SOMETHING ELSE WITH PRIME THAT
THEN WE WOULD LOSE MORE LOW
INCOME HOUSING.
THANK YOU YOU'RE WELCOME.
AND I THINK ANY ADDITIONAL
QUESTIONS OR COMMENTS.
OKAY WE DO HAVE A MOTION TO THE
MOTION PASSED TO US TO
GOVERNANCE AND FINANCE -- BY
SENATOR ROTH -- AND CENTER LEYVA
IF YOU WOULD LIKE TO CLOSE I
WOULD RESPECTFULLY ASK FOR AN
AYE VOTE THANK YOU VERY MUCH.
BOB WILL CALL THE ROLL.
THIS IS SENATE BILL TWO FIFTY
TWO BY SENATOR LEYVA THE MOTION
IS TO PASS AND REFER TO THE
COMMITTEE ON GOVERNANCE AND
FINANCE SENATOR WINNER AYE.
WIENER AYE MORRELL BATES RIGHT
BATES I CAN HANDLE.
CARILLO I DRAWS -- BROWSER HI
MCGUIRE.
BARLACH. FOR LIKE AYE ROTH ROTH
AYE SKINNER.
NUMBER.
NUMBER FIVE CASKEY.
CASSIE I OKAY THAT ENJOYS AN
EIGHT EIGHT VOTES AND WE WILL
KEEP THE ROLE OPEN FOR ABSENT
MEMBERS THANK YOU VERY MUCH.
MISTER CHAIR THINKING MEMBERS
THANK YOU AND WILL NOW TAKE THE
CONSENT CALENDAR ITEMS FOUR AND
FIVE TWO OF THEM -- MOVED BY A
CENTER WHY CAL SKI AND WE WILL
CALL THE ROLL.
ON THE CONSENT CALENDAR WHICH
CONSISTS OF FILE ITEMS FOUR AND
FIVE SENATOR WIENER AYE WIENER
AYE AMARO.
BATES RIGHT BATES AYE CABALLERO.
TOMORROW I DRAWS -- BROWSER HI
MCGUIRE.
MORE LOOK.
MORE LIKE AYE ROTH.
ROTH AYE SKINNER NUMBER.
NUMBER FIVE CASKEY BECAUSE HE
AYE.
OKAY IF NOTHING OKAY EIGHT
NOTHING WILL KEEP THE ROLL OPEN
ON THE CONSENT CALENDAR.
WE WILL NOW GO TO ITEM NUMBER --
THREE SB THREE TWENTY SIX BY
SENATOR HELD.
THANK YOU MISTER CHAIR AND GOOD
AFTERNOON MEMBERS SB.
THREE TWENTY SIX BUILDS UPON
LAST YEAR'S SB SEVEN TWENTY ONE
WHICH ADDRESS BALCONY
INSPECTIONS AND REPAIRS FOR
APARTMENT BUILDINGS FOLLOWING
THE DEADLY. TWO THOUSAND FIFTEEN
BERKELEY BALCONY COLLAPSE THAT
KILLED SIX AND INJURED SEVEN SB
THREE TWENTY SIX REQUIRES AN
EXISTING CONDOMINIUM BUILDINGS.
GOVERNED BY HOMEOWNERS
ASSOCIATIONS RACHEL WAYS AGAIN
HAVE INSPECTIONS AT LEAST ONCE
EVERY NINE YEARS ON A SMALL
PERCENTAGE OF THEIR BALCONIES
STAIR WELLS.
AND OTHER EXTERIOR ELEVATED
ELEMENTS TO ENSURE THEY ARE SAFE.
SB THREE TWENTY SIX ALSO
PREVENTS BUILDERS FROM PLACING
THE LANGUAGE IN AN H. ALWAYS
COVENANTS CONDITIONS AND
RESTRICTIONS OR CC IN OURS.
THAT WOULD LIMIT THE ABILITY OF
THE H. AWAY BOARD OF DIRECTORS
TO SUE THE DEVELOPER IF THERE
ARE CONSTRUCTION DEFECTS.
THIS IS NOT A HYPOTHETICAL
SITUATION ONE OF MY WITNESSES
WILL DESCRIBE AN H. AWAY
DEVELOPMENT IN SAN FRANCISCO
WHERE A ROUTINE WATER LEAK
REVEALED THAT A MAIN WALKWAY ON
THE THIRD FLOOR WAS ABOUT TO
COLLAPSE.
DUE TO WOULD RIDE THE ROAD
BLOCKS THAT IMPEDED THE H.
ALWAYS CLAIM AGAINST THE
DEVELOPER DAM DEMONSTRATE
EXACTLY WHY THIS BILL IS
NECESSARY.
WHEN THIS BILL PASSAGE JUDICIARY
COMMITTEE LAST WEEK I COMMITTED
TO SEVERAL AMENDMENTS THAT'LL BE
TAKING TODAY TO ADDRESS THE
OPPOSITION'S CONCERNS DEVELOPERS
ARE NO LONGER REQUIRED TO
PROVIDE A SET OFSTRUCTURAL
PLANS TO THE H. AWAY?
STEEL STRUCTURES ARE ALSO EXEMPT
DESPITE THAT THE OPPONENTS ARE
STILL TRYING TO AMEND THE BILL.
TO FORCE H. AWAY MEMBERS TO VOTE.
BEFORE THE ASSOCIATION CAN BRING
A LAWSUIT FOR CONSTRUCTION
DEFECT CLAIM.
THE EXISTING LAW ALREADY
REQUIRES EACH -- A BOARD TO GIVE
WRITTEN NOTICE TO EACH MEMBER.
AND TO HOLD A MEETING TO DISCUSS
THE PROBLEMS WITH CONSTRUCTION
AND AVAILABLE OPTIONS PRIOR TO
FILING ANY CIVIL ACTION.
I'LL CONTINUE TO WORK WITH THE
OPPOSITION IS A BILL MOVES
FORWARD BUT I CANNOT ACCEPT
THEIR CURRENT AMENDMENT REQUEST
I DO HAVE WITNESSES MISTER CHAIR
THANK YOU.
THANK YOU VERY MUCH AND WE WOULD
ASK YOU CHAU NGUYEN IS TO LIMIT.
YOUR REMARKS TO THREE MINUTES.
MISTER CHAIR MEMBERS OF THE
COMMITTEE LOUIS BROWN ON BEHALF
OF THE COMMUNITY ASSOCIATIONS
INSTITUTE CALIFORNIA LEGISLATIVE
ACTION COMMITTEE.
THANK YOU FOR THE OPPORTUNITY TO
TESTIFY IN SUPPORT OF TODAY'S
BILL HI SENATOR HILL MENTIONED
HI THIS BILL ESSENTIALLY HAS HAS
TWO ELEMENTS TO IT.
WE WERE OPPOSED TO THE ORIGINAL
ELEMENT LAST YEAR IN SB SEVEN
TWENTY ONE AS IT DEALT WITH.
THE INSPECTIONS A BALCONIES AN
ELEVATED WALKWAYS AT COMMON
INTEREST DEVELOPMENTS A
PRINCIPALLY BECAUSE THE FORMULA
USED IN THAT BILL DID NOT REALLY
FIT THE GOVERNANCE STRUCTURE IN
THE OVERSIGHT.
THE CURRENTLY EXISTED COMMON
INTEREST DEVELOPMENTS WE AGREED
AT THAT TIME WHEN THE SENATOR --
PULLED THE LANGUAGE DEALING WITH
CONDOMINIUMS THAT WE WOULD COME
BACK -- AND TRY TO FIND A
FORMULA THAT THAT SUITS THE
EXISTING STRUCTURE OF FOR COME
INTEREST DEVELOPMENTS AND WE
BELIEVE WE FOUND THAT IN SB
THREE TO SIX IT RECOGNIZES THE
FACT THAT EVERY THREE YEARS
THERE ARE VISUAL INSPECTIONS
THAT TAKE PLACE.
OF THE FACILITY FOR PURPOSES OF
THE RESERVE FUNDING REQUIREMENTS
IN LAW.
THIS WITHIN ADD AN ADDITIONAL
INSPECTION.
EVERY THIRD CYCLE SPECIFICALLY
FOCUSED ON THOSE EXTERIOR
ELEVATED ELEMENTS TO ENSURE THAT
THEY ARE IN WORKING ORDER AND
THAT THERE ARE NO HEALTH OR
SAFETY SITUATIONS THAT OCCUR.
HI IF IN FACT THERE IS A MATTER
OF HEALTH OR SAFETY THAN LOCAL
ENFORCEMENT AGENCIES WOULD BE
NOTIFIED -- AND THEN THE
ASSOCIATION AND THE BOARD WOULD
MOVE FORWARD WITH THE REPAIRS
THAT ARE NECESSARY IN ORDER.
TO COMPLY WITH THOSE EALTH AND
SAFETY ORDERS WE BELIEVE THAT
THIS MINIMIZES THE COSTS FOR
ASSOCIATIONS.
BUT AT THE SAME TIME AND WORKING
WITH AN EXISTING STRUCTURE
ALLOWS THEM TO ADEQUATELY PLAN.
AND FINANCE OF THOSE REPAIRS AS
NEEDED.
AFTER THE SECOND PART OF THE
BILL IT'S EXISTING LAW -- THAT
ASSOCIATION TO HAVE THE RIGHT TO
SEEK LITIGATION IN CONSTRUCTION
DEFECT.
IT JUST SO HAPPENS THAT TWIN CC
AND OURS ARE DEVELOPED AND
WRITTEN BY THE DEVELOPERS THAT
MOST OF THOSE DOCUMENTS WRITTEN
THESE DAYS REQUIRE CERTAIN
ELEMENTS INCLUDING A VOTE OF ALL
THE MEMBERS.
PRIOR TO ALLOWING ASSOCIATION TO
SEEK ITS STATUTORY RIGHT FOR
CONSTRUCTION DEFECT ACTION HOW
WE BELIEVE THIS IS EXTREMELY
UNFAIR AND THAT THE MEMBERS OF
THE ASSOCIATION HAD NO SAY IN
THE WRITING OF THOSE DOCUMENTS.
AND IT CREATES AN OF STOCK
OBSTRUCTION TO A STATUTORY RIGHT
THAT THEY CURRENTLY HAVE.
SO WE'VE WORKED WITH SENATOR
HILL A TO DRAFT THAT SECOND
PORTION OF SB -- THREE TWENTY
SIX WHICH WOULD MAKE THOSE
PROVISIONS NOLAN VOID -- BUT
THEN COMPLY WITH ALL THE OTHER
ELEMENTS -- THAT EXIST WHEN IT
COMES TO CONSTRUCTION DEFECT LAW
FOR THOSE REASONS A WE ASK FOR
AN AYE VOTE TODAY.
MR CHAIRMAN MEMBERS OF THE
COMMITTE THANK YOU FOR THE
OPPORTUNITY TO SPEAK TODAY IN
SUPPORT OF SB.
THREE TWENTY SIX SPENCER RIGID
ATTORNEY WHICH CHAPMAN AN ENTRY
IN ALAMEDA CALIFORNIA.
I REPRESENTED H. WAYS IN
CALIFORNIA FOR THE PAST FIFTEEN
YEARS.
IN THE LAST FIVE TO TEN YEARS
WE'VE SEEN A CONCERTED EFFORT BY
ATTORNEYS REPRESENTING
DEVELOPERS TO SHIELD THEIR
CLIENTS FROM LIABILITY. FOR
CONSTRUCTION DEFECTS BY DRAFTING
OWNERS PROCEDURAL IMPEDIMENTS
INTO THE H. WAYS ORIGINAL
GOVERNING DOCUMENTS WHICH ACT AS
A COMPLETE DEFENSE TO OTHERWISE
LEGITIMATE.
CLAIMS.
ALMOST A METICULOUSLY SATISFIED.
THIS IS TYPICALLY DONE BY
REQUIRING A MEMBERSHIP VOTE TO
PURSUE A CLAIM OR EVEN HIRE AN
EXPERT TO INVESTIGATE OR AN
ATTORNEY TO ADVISE THEM.
DEVELOPER PROVISIONS IN CCAR'S
FOR QUITE MEMBER APPROVAL TO
PURSUE CLAIMS AGAINST THEM.
OUR PURPOSE WE DESIGNED TO AVOID
LIABILITY FOR FAULTY WORKMANSHIP
AND SHIFT THE BURDEN AND EXPENSE
OF REPAIRS TO THE HOMEOWNERS.
THIS CAN BE DEVASTATING.
WE ARE CURRENTLY HANDLING A
CLAIM IN SAN FRANCISCO FOR
DEVELOPMENT SOLD AS AFFORDABLE
HOUSING TO LOW INCOME
INDIVIDUALS.
THE EXTERIOR ELEVATED WALKWAYS
OF THE PROJECT SUFFER SERIOUS
ROT AND DECAY.
DUE TO FAULTY CONSTRUCTION
PRESENTING A LIFE SAFETY RISK.
IF THE OWNERS ARE FORCED TO PAY
FOR REPAIRS.
THERE IS A REAL POSSIBILITY THAT
MANY OF THEM COULD LOSE THEIR
ARMS.
NO ONE SHOULD EVER LOSE THEIR
HOME ON A TECHNICALITY DUE TO
THE FAILURE TO METICULOUSLY
COMPLY.
WITH DEVELOPER DRAFTED
PRECONDITIONS IN THE H. WAYS
GOVERNING DOCUMENTS.
BOARD MEMBERS ARE ELECTED BY THE
HOMEOWNERS AND HAVE A FIDUCIARY
DUTY TO ACT IN THE BEST INTEREST
OF THE H. AWAY.
THE BOARD IS IN THE BEST
POSITION TO MAKE WELL INFORMED
pDECISIONS AFTER CONSULTATION
WITH EXPERTS AND COUNSEL ON
WHETHER TO PURSUE A CLAIM.
IN MAKING THESE DECISIONS BOARD
MEMBERS CONSULT WITH ATTORNEYS
IN EXECUTIVE SESSION.
AND POSSESS ATTORNEY CLIENT
PRIVILEGED INFORMATION AND WORK
PRODUCT WHICH CANNOT BE
DISSEMINATED TO THE MEMBERSHIP
WITHOUT RISKING WAIVER OF THE
ATTORNEY CLIENT PRIVILEGE. EIGHT
TO A MEMBERSHIP VOTE CAN TAKE
FOUR TO SIX MONTHS TO ACCOMPLISH.
MEMBERSHIP VOTER APATHY IS AN
UNFORTUNATE REALITY WITH A TWO
WAYS WHICH CAN MAKE OBTAINING A
QUORUM FOR A VALID THE DIFFICULT
IF NOT IMPOSSIBLE.
DEVELOPERS OFTEN ACTIVELY AND
AGGRESSIVELY CAMPAIGN TO DEFEAT
THESE VOTES.
AS A RESULT THE STATUTE OF
LIMITATIONS CAN EXPIRE BEFORE
THE VOTERS ACCOMPLISHED.
THE OPPOSITION CONTENDS THESE
MEMBERSHIP VOTE REQUIREMENTS ARE
FOR THE FOR THE PROTECTION AND
BENEFIT OF THE HOMEOWNERS.
HOWEVER I ASSURE YOU.
NOTHING IS FURTHER FROM THE
TRUTH.
THE FACT IS THESE PROVISIONS ARE
AGGRESSIVELY USED IN LITIGATION
AS PROCEDURAL DEFENSES TO DEFEAT
THE HOMEOWNERS CLAIMS.
THIS TACTIC WAS HIGHLIGHTED IN
THE RECENT BRANCHES NEIGHBORHOOD
CASE.
THE MEMBERSHIP DID VOTE ENDED
OVERWHELMINGLY APPROVE OF THE
LITIGATION.
BUT NOT BEFORE IT HAD ALREADY
BEEN INITIATED.
SO THEY LOST THE CLAIM ON A
TECHNICALITY.
CIVIL CODE SIXTY ONE FIFTY
ALREADY REQUIRES THE BOARD TO
HOLD A MEETING TO EXPLAIN THE
PROCESS AND CLAIMS TO THE
MEMBERSHIP BEFORE SUIT IS FILED.
THUS GIVING THE MEMBERS A VOICE
IN THE DECISION.
WE'VE CONDUCTED THESE MEETINGS
AND THEY ARE NOT A MERE
FORMALITY.
RATHER THEY ARE OFTEN THREE TO
FOUR HOURS LONG INCLUDING
PRESENTATIONS BY CONSTRUCTION
CONSULTANTS IN QUESTION AND
ANSWER SESSIONS WITH THE
MEMBERSHIP.
I RESPECTFULLY REQUEST YOUR AYE
VOTE THANK YOU [inaudible]
THE BILL.
PACING NONE -- WILL MAKE THE
OPPOSITION UP.
SEE THE SAME [inaudible]
X. BUT WITH.
GOOD AFTERNOON MISTER CHAIR
MEMBERS NAY CAMERA.
WE HAVE THE CALIFORNIA BUILDING
INDUSTRY ASSOCIATION.
I WANT TO SAY FIRST OF ALL THAT --
DUE TO THE AMENDMENTS THAT WERE
ACCEPTED IN THE JUDICIARY
COMMITTEE -- WE WILL BE --
TAKING THE STATUS ARE INTERNAL
STATUS OF THIS BILL FROM HOUSING
KILLER TO JUST OPPOSE.
HAVING SAID THAT THOUGH WE STILL
HAVE SIGNIFICANT CONCERNS WITH
THE BILL.
AND I WANT TO MAKE THOSE A
LITTLE BIT CLEARER FOR YOU TODAY --
I RECOGNIZE YOUR A YOUR REACTION
TO THAT -- ALL RIGHT SECTION
THREE OF HE BILL -- WHICH I
THINK WAS PREVIOUSLY REFERRED TO
A SECTION TO THE BILL.
IS DEALING WITH THE GOVERNING
DOCUMENTS FOR HOMEOWNERS-ASSOCIATION.
I MENTION THIS BECAUSE IT'S
CLEAR THAT.
WE CAN'T BUILD MULTI FAMILY
ATTACHED HOUSING IN THE STATE
WITHOUT HOMEOWNERS ASSOCIATIONS.
THAT IS AN ADD THOSE ARE THE
TYPES OF PRODUCTS THAT CAN
OPERATE WITHOUT HOMEOWNERS
ASSOCIATIONS BECAUSE THOSE
COMMON WALLS BETWEEN UNITS.
ARE COMMON AREAS THAT ARE THE
RESPONSIBILITY OF HOMEOWNERS
ASSOCIATIONS -- I WILL ADD
FURTHER THAT THERE ARE THINGS
THAT WE LIKE ABOUT THE BILL --
WE DON'T.
WE LIKE THE PART THAT EXCLUDES
US FROM PARTICIPATING.
IN THE ABILITY TO VOTE ON
LITIGATION NOT ONLY BECAUSE
THAT'S A CONFLICT OF INTEREST.
BUT ALSO BECAUSE IT EXTENDS THE
STATUTE OF LIMITATIONS FOR THOSE
CLAIMS SO WE DON'T WE WANT TO BE
CLEAR.
THIS ISN'T ABOUT.
THAT PART OF THE BILL.
THE PART OF THE BILL THAT WE ARE
CONCERNED WITH IS THAT THE BILL
ALSO PROHIBITS.
THE HOMEOWNERS FROM VOTING ON ON
THOSE.
ACTIONS TAKEN BY THE BOARD TO
FILE LAWSUITS.
AND FOR BEING INFORMED OF THE
CONSEQUENCES OF THAT.
YOU NEED TO UNDERSTAND FIRST OF
ALL WHY THOSE PROVISIONS ARE PUT
INTO THE GOVERNING DOCUMENTS IN
THE FIRST PLACE.
WE RECEIVED AT THE DEPARTMENT OF
REAL ESTATE ALSO RECEIVE
COMPLAINTS FROM EXISTING
HOMEOWNERS WHO AFTER THE
LITIGATION WAS FILED WERE
SURPRISED TO FIND.
THAT THEIR DUES ARE ASSESSMENTS
WERE INCREASED THAT THEY HAD TO
MAKE THEIR UNITS AVAILABLE FOR
INSPECTION SOMETIMES DESTRUCTIVE
TESTING OF THOSE UNITS.
THAT THE OR CALL THE THERE IS
WITNESSES ARE TO PARTICIPATE IN
DEPOSITIONS.
WITH THEIR ABILITY TO SELL OR
REFINANCE THEIR HOMES AFTER THE
LITIGATION WAS FILED -- IS
IMPAIRED AND THAT THEY HAD
DISCLOSURE OBLIGATIONS TO FUTURE
BUYERS.
AND THAT'S WHY THE D. R. E.
WHICH IS THE CONSUMER PROTECTOR
AND ALL OF THIS WITH THAT
APPROVES OUR GOVERNING DOCUMENTS.
HAS APPROVED THOSE DOCUMENTS
WITH THOSE PROVISIONS IN THEM.
THE WAY THE BILL AS CURRENTLY
WRITTEN IT WOULD EXCLUDE NOT
JUST THE RIGHT TO VOTE.
BUT ALSO THE RIGHT TO BE
INFORMED OF THOSE CONSEQUENCES.
THE REFERENCES THAT ARE MADE TO
CIVIL CODE SECTION SIXTY ONE
FIFTY DON'T ADDRESS THAT.
THE MEETING THAT'S HELD AND AND
THE DISCUSSION THAT HAPPENS
SOLELY BETWEEN THE BOARD AND ITS
COUNCIL.
IS DESIGNED TO EXPRESS THE NEED
FOR THE LITIGATION THE PROBLEMS.
AND IT'S ALL.
DESIGNED IN A WAY THAT STEERS
THE BOARD.
AND IF THERE ARE MEMBERS THAT
ARE ABLE TO BE THERE -- IS TEARS
THEM TOWARDS FILING LITIGATION.
THERE'S THIS IS A PROCESS THAT
DOES NOT NEED TO HAPPEN BEFORE A
LITIGATION IS FILED IT CAN
HAPPEN AFTER THAT.
AND IN IN THOSE REGARDS IT'S
REALLY NOT AN EFFECTIVE
SUBSTITUTE FOR SOMEBODY TO BE
ABLE TO INFLUENCE.
THE DECISION OF WHETHER OR NOT
TO FILE.
A LAWSUIT.
I'M IT'S CLEAR TO US AT LEAST
THAT THERE'S A REASON FOR THAT.
THE ATTORNEY REPRESENTING THE
BOARD CAN'T MAKE MONEY OFF OF
REPAIRS.
THEY CAN ONLY MAKE MONEY IF
LITIGATION IS FILED.
EXISTING LAW SB EIGHT HUNDRED
HAS A PRE LITIGATION PROCESS IN
IT.
IT BEGINS WITH THE BOARD SENDING
A NOTICE TO THE BUILDER.
AND IT HAS INSPECTIONS IT HAS A
REPAIR PROCESS AND HAS MEDIATION
AND EVEN AT THAT POINT.
IF THE BOARD ISN'T SATISFIED
WITH THE REPAIRS.
THEY CAN GO TO COURT FILE A
LAWSUIT AGAINST THE BUILDER.
THAT'S A PROCESS THAT TAKES SIX
MONTHS TO A YEAR.
IN THE BRANCHES CASE THE ONE
THAT WAS CITED.
THAT PROCESS ACTUALLY TOOK
THIRTEEN MONTHS.
SO THERE'S PLENTY OF TIME DURING
THAT TIME PERIOD. FOR MEMBERS
HOMEOWNERS WITHIN THE
ASSOCIATION TO BE INFORMED OF
THE CONSEQUENCES OF LITIGATION
AND EVEN TO VOTE.
I WOULD SAY THAT.
IF YOU EVEN IF YOU DIDN'T WANT
THEM TO VOTE.
THEY SHOULD STILL BE IN FORT.
THE COURTS HAVE REALLY ADDRESS
THIS IN A NUMBER OF CASES AND
ALWAYS UP HELD THE PUBLIC POLICY.
OF ALLOWING HOMEOWNERS TO BE
INFORMED AND TO VOTE BEFORE
LITIGATION.
I'M GONNA ASK YOU TO MAKE A
DISTINCTION HERE.
WITH IT IT'S FAIR TO SAY.
THAT PUTTING UP.
SOME PROCESS SOME PRECONDITION
BEFORE FILING A CLAIM INITIATING
THE SB EIGHT HUNDRED PROCESS.
IS UNFAIR.
BUT THERE'S ENOUGH TIME BETWEEN
THE TIME OF FILING A CLAIM AS I
MENTIONED.
AND A YEAR LATER WHEN YOU FILE A
LAWSUIT.
THERE'S PLENTY OF TIME DURING
THAT PERIOD TO HAVE THIS
CONVERSATION.
THAT DOESN'T BECOME AN
IMPAIRMENT. TO FILING.
A LAWSUIT THE COURTS HAVE SAID
THAT THIS IS CONSISTENT WITH THE
DAVIS STIRLING EXACT AIM TO
BALANCE THE NEED TO OPERATE
EFFICIENCY EFFICIENTLY WITH THE
RIGHTS OF THE MEMBERS TO BE
INFORMED AND PARTICIPATE IN
DECISIONS THAT WOULD IMPACT THE
ASSOCIATION FOR YEARS.
IF NOT DECADES TO COME.
WE CANNOT IGNORE SUCH A
PROVISION IN THE GOVERNING
DOCUMENTS.
BECAUSE IT IS INCONVENIENT FOR
THE ASSOCIATION IN A PARTICULAR
CASE.
THE ASSOCIATION HAD THE
GOVERNING DOCUMENTS IT WAS ON
NOTICE OF THEIR CONTENTS PUBLIC
POLICY REQUIRES US TO FOLLOW THE
PLAIN LANGUAGE.
THE VOTE REQUIREMENT IMPLEMENTS
THE PROTECTIONS OF THE
INDIVIDUAL HOMEOWNERS ECONOMIC
INTERESTS IN THE VALUE OF NOT
ONLY.
THEIR INDIVIDUAL UNITS.
BUT ALSO THE DEVELOPMENT AS A
WHOLE.
IN ANTICIPATES THAT
INVESTIGATION OF COMMON AREA
DEFECTS COULD REQUIRE.
INDIVIDUAL HOMEOWNERS TO PERMIT
ACCESS AND TESTING THAT AFFECT
THEIR UNITS.
SO WE WOULD ENCOURAGE YOU AT
LEAST. TO PRESERVE A DISCLOSURE
REQUIREMENTS. TO THE HOMEOWNERS
NOT TO THE BUILDER.
NOT INVOLVING THE BUILDER.
BUT TO THE HOMEOWNER SO THAT
THEY KNOW THE CONSEQUENCES OF
THE ACTION THE BOARDS TAKING
THANK YOU VERY MUCH.
THANK YOU VERY MUCH NEXT WITNESS
AND IF YOU'D BE ABLE TO LIVE IN
A TO THREE MINUTES OF THE GREAT
THANK YOU.
ALL RIGHT THANK YOU MISTER
CHAIRMAN AND MEMBERS OF THE
COMMITTEE MY NAME IS TOM SIR I'M
HERE ON BEHALF OF THE CENTER FOR
CALIFORNIA HOMEOWNERS
ASSOCIATION LAW.
WE DID SOME WORK LAST YEAR IN
PREPARATION -- FOR ADDRESSING
SENATE BILL SEVEN TWENTY ONE AND
THEN OF COURSE WHEN THE C. ID'S
WERE PULLED OUT OF THE BUILDING
WE STOPPED WORKING.
AND NOW WE'RE BACK HERE WITH
WHAT WE HAD UNDERSTOOD WAS GOING
TO BE RULES FOR C. ID'S.
I WANT TO MAKE SOME. THREE
SEVERAL POINTS HERE ABOUT ARE
CONCERNED NUMBER ONE IS THAT
THIS BILL DOES NOT INCLUDE ALL
SEE ID'S IT INCLUDES ONLY
CONDOMINIUMS.
AND THAT LEAVES OUT SOME
SIGNIFICANT CATEGORIES OF C.
ID'S TOTALLY UNPROTECTED THESE
WOULD INCLUDE.
A PLANNED UNIT DEVELOPMENTS IN
COOPS.
AND WE THINK THOSE SHOULD BE
INCLUDED ALL SEE ID SHOULD BE
INCLUDED IN THIS COVERAGE.
SECONDLY IT EXTENDS THE SIX YEAR
INSPECTION FRAMEWORK IN SEVEN
TWENTY ONE IT EXTENDED OUT TEN
NINE YEARS.
AND THAT SEEMS TO US TO BE AN
UNWARRANTED.
ADDITIONAL RISK TO OF RESIDENTS
OF C. ID'S.
A WINNER STAND THE JUSTIFICATION
FOR THAT I'D LIKE TO NOTE THAT.
THE BERKELEY BALCONY COLLAPSE
OCCURRED LESS THAN NINE YEARS.
FROM THE TIME THAT THE BUILDING
WAS COMPLETED IN FIRST OCCUPY.
SO THE NINE YEAR INSPECTION
REGIME WOULD NOT OF CAUGHT THAT
PARTICULAR SITUATION IT'S JUST
NINE YEARS IS TOO LONG
[inaudible]
EXCUSE ME.
ANOTHER CONCERN IS THAT THE
INSPECTIONS THAT ARE MANDATED IN
THIS BILL.
ARE CAN BE VISUAL INSPECTIONS
ONLY.
NOW LAST YEAR WE DID CONSULT
WITH EXPERTS IN THE BROUGHT TO
OUR ATTENTION THE DIFFICULTY OF
IDENTIFYING CALLED RISKS.
OF COLLAPSE RATHER CATASTROPHE.
FROM INSPECTIONS A LOW.
SO THAT THESE INSPECTION SHOULD
BE MUCH MORE RIGOROUS AND
PREFERABLY.
AN ADDITIONAL REQUIREMENTS SUCH
AS LOW TESTING MIGHT BE
CONSIDERED -- SO FOR THOSE
REASONS BUT WE'RE AT THIS POINT
WE'RE OPPOSED THANK YOU.
GREAT THANK YOU IS THERE ANY
ADDITIONAL OPPOSITION.
OKAY SIGNAL BRING IT BACK TO THE
COMMITTEE CALLERS ARE THERE ANY
QUESTIONS OR COMMENTS SENATOR
ROTH.
I GUESS MY FIRST QUESTION IS IF
IF THERE'S A LIMITATION IN THE
C. C. IN OURS CAN'T THE
HOMEOWNERS VOTE TO PULL IT OUT
OF THE SEA SOONERS.
AND I THINK THIS GENERAL -- I
DON'T CARE -- IN THIS CAN ANSWER
THAT QUESTION THE PROBLEM THAT
WE FIND IS IT IN THE SHE SHE IN
OURS THAT ORIGINALLY DRAFTED IT
DOESN'T.
IT PRECLUDES ANY CHANGES TO THE
CC IN OUR THAT WOULD AFFECT THE
DEVELOPER AND THEY PLAY INCLUDE
THAT IN THE SEATS YOU KNOW
IMPRESSION CLARIFICATION IF WE
DO SEE THAT -- IN THE C. C. NOT
AS A DEVELOPER ALREADY SORT OF
IN BEDS -- PROVISION IN THERE
THAT PREVENTS HOMEOWNERS
ASSOCIATIONS FROM AMENDING THOSE
TYPES PROVISIONS THE BENEFIT TO
DEVELOPERS WITHOUT CONSENT FROM
THE DEVELOPER WHICH OF COURSE
THEY WOULD NEVER GIVE AS I'VE
BEEN CHALLENGED.
THE COURTS APPEL THE I DON'T I
DON'T BELIEVE IT'S GONE THROUGH
THE COURTS I WOULD FIND THAT.
AMAZING THAT THE COURT WOULD OF
UP.
A POLL THAT SORT OF PROVISION.
WHAT ARE THE KEY WELL WHAT'S THE
VOTE REQUIREMENT WHEN YOU HAVE A
VOTED VERY SAID SOMETIMES IT'S A
MAJORITY OF SOMETIMES AS I'VE
HEARD IS 80% TO THEY CAN INCLUDE
WHATEVER THEY WANT AND IN THE
SHE SEEN OUR SINCE THEY WRITE
THIS ISSUE IN OURS?
AND THEN -- BOOK.
THE OPPOSITION SPOKE ABOUT THE
CONSEQUENCES OF LITIGATION I'M
NOT.
TOTALLY FAMILIAR WITH
CONSTRUCTION DEFECT LITIGATION
IS IT TYPICALLY.
CONDUCTED ON A CONTINGENT FEE
BASIS.
TYPICALLY IT IS -- MOSTLY CLAIMS
THEY'RE VERY EXPENSIVE TO PURSUE
IN ALMOST ASSOCIATIONS ARE NOT
SET UP TO HAVE THE FUNDS
AVAILABLE TO HIRE LEGAL COUNSEL
TO INVESTIGATE THE CLAIMS IN
ORDER THEY EVEN HAVE THE ABILITY --
TO OFTENTIMES HIGHER THE FOR ITS
A CONSULTANTS THAT ARE NECESSARY
TO INVESTIGATE THE CLAIMS IN
SUPPORT OF LITIGATION.
AND SO -- THE TERM THE LAW FIRMS
THAT ARE FROM OFTEN WILL TAKEN
ON A CONTINGENCY FEE BASIS AND
ALSO ADVANCE THE COSTS OF THE
LITIGATION AND THEREFORE YOU
KNOW THE RISK IS REALLY BORN
MORE BY THE ATTORNEYS IN TERMS
OF PURSUING THE CLAIM VERSUS THE
HOMEOWNERS ASSOCIATIONS.
THE ONE THAT GOES THROUGH HER TO
MY QUESTION I UNDERSTAND
INSPECTIONS AND DURING
CONSTRUCTION DEFECT LITIGATION
BUT OTHER THAN.
OTHER THAN -- OPENING UP.
THE DWELLING FOR AN INSPECTION
FOR EXAMPLE WHAT OTHER
CONSEQUENCES OF AND I GUESS THIS
IS MORE DRESS THE OPPOSITION
WHETHER CONSEQUENCES WOULD THERE
BE -- TO THIS CONSTRUCTION
DEFECT LITIGATION.
IN A HOUSING DEVELOPMENT.
THERE QUITE A FEW ONE IS THAT --
WE DID HAVE AN EXAMPLE OF A CASE
WHERE -- NINETEEN HOMEOWNERS GOT
ASSESSED AND LEAN FOR FIFTY
THOUSAND DOLLARS EACH.
THAT THEIR DUES -- ASSESSMENTS
CAN GO UP -- BUT WHY.
BECAUSE IN THAT CASE THE BOARD
LOST THE CASE AND THEY GOT THE
FENCED IN THERE ARE COSTS
ASSOCIATED WITH THAT -- THAT GOT
IMPOSED ON THE HOW THE
HOMEOWNERS AND EXPERT FEES YEAH
AND I I DON'T KNOW I DON'T KNOW
I DON'T KNOW THE DETAILS OF THAT
BUT THAT WORKED OUT.
BUT A BOLD STATEMENT WHEN YOU
SEE THE CONSEQUENCES AND I'M
JUST TRYING TO DRILL DOWN.
THE ROAD EXACTLY WHAT THEY ARE
WHEN IT'S CONTINGENT LITIGATION
YEAH I UNDERSTAND EXPERT COSTS
BEING ASSESSED TO THE LOSER IN
SOME CASES I DON'T KNOW
CONSTRUCTION DEFECT IS THAT
REQUIRED TO DESERVE HAVE TO BE A
THE SETTLEMENT -- FOR THAT STERN
DOWN IN ORDER TO RECOVER -- WILL
THERE ARE NONE THE NINE NINE
EIGHT OFFERS BUT THAT'S NOT WHAT
I WAS THINKING OF I'M TRYING TO
PROBE WHAT YEAH IT DOESN'T.
IT DOESN'T NEED TO BE BY
SETTLEMENT IT CAN BE ALLEN
USUALLY IS NOT BY SETTLEMENT AT
WHERE YOU HAVE A DEFENSE VERDICT
SO YOU'VE GONE THROUGH THE TRIAL.
AND AT AT AND THERE'S A VERDICT
AND THE BOARD IN THAT CASE LOST.
THE CASE -- I AND I AND I CAN'T
SPEAK TO THE DETAILS OF THAT
PARTICULAR CASES.
TO WHAT THOSE COSTS WERE --
WHETHER THEY'RE EXPERT COSTS BUT
THERE ARE OTHER THINGS THAT
AFFECT IN THAT WE CAME AS A
SURPRISE TO HOMEOWNERS.
WHEN THEY WANT TO SELL OR
REFINANCE THEIR HOMES BECAUSE
THEY FOUND THAT?
REFINANCING WAS MADE DIFFICULT
THEY COULDN'T DO A CONFORMING
LOAN BECAUSE THE GOVERNMENT
SPONSORED ENTITIES WOULD NOT.
ENSURE THE LOAN BECAUSE THERE
WAS LITIGATION PENDING AND THAT
WHEN THEY WANT TO SELL THEIR
HOMES.
THEY FOUND THAT PEOPLE
SURPRISINGLY DON'T WHAT WE WERE
TRYING TO BUY A HOME DON'T WANT
TO BITE INTO LIIGATION.
SO THE THE PRICES THAT THEY
COULD SELL THEIR HOME FOR IS
DEPRESSED.
AND THEN FINALLY THEY ARE
REQUIRED BY LAW TO DISCLOSE THE
CLAIM -- IT TO FUTURE POTENTIAL
BUYERS.
AND THAT TRIGGERS SOME OTHER
ADDITIONAL ISSUES AS TO HOW WAS
IT RESOLVED WAS THE PROBLEM
FIXED WAS IT SOMEBODY RECEIVE A
CASH PAYMENT.
AND TODAY FIX THE PROBLEM WITH
THAT -- THOSE SORTS OF THINGS
THAT YOU'RE REQUIRED TO DISCLOSE --
THE COULD THE CONSTRUCTION
DEFECT IN THE PROBLEM ANYWAY IN
THE SALES DOCUMENTS ORANGE YOU
ARE BUT YOU'D BE SURPRISED HOW
FEW PEOPLE KNOW ABOUT THAT AND
THEN THEY WISHED THEY WISH FACT
THAT THEY HAVE TO DISCLOSE IT
RIGHT AND THEY'D LIKE TO KNOW
THAT AT THE TIME THAT THE CLAIM.
ARISES BECAUSE THEY'RE GOING TO
BE THROUGH WHETHER THIS PLANNED
OR WHETHER IT'S STILL BEING
TRANSFERRED FOR JOB.
THE THEY NEED TO SELL THEIR HOME
AND THEY NEED TO KNOW THAT THEY
SHOULD DISCLOSE THAT -- AND THAT
HAS -- IT HAS AN IMPACT ON THEM.
I DON'T UNDERSTAND THAT LAST
COMMENT THE BROKER WOULD HAVE AN
OBLIGATION.
TO DO WITH THAT BUT I I WON'T
BELABOR THIS MISTER THANK YOU
SIR.
COULD I HAVE A MY WITNESS
RESPOND YES.
BUT ONE OF THE ARGUMENTS THE
OPPOSITION MAKES IS THAT THE
HOMEOWNERS MAY HAVE A NEGATIVE
IMPACT -- AS A RESULT OF THE
LITIGATION AND WHAT THEY'RE
TALKING ABOUT IS -- IN TERMS OF
UNIT SALES AND A REFINANCING
DURING THE PENDENCY OF THE CLAN --
THAT IS TRUE THAT THERE IS --
SOME IMPACT WHILE THE CLAIM IS
PENDING IN DEPENDING ON HOW LONG
THAT PROCESS IS DROWNED OUT BY
THE DEFENSE IN THE DEVELOPER --
IT COULD BE FROM YOU KNOW TWELVE
MONTHS TO THIRTY SIX MONTHS
WHILE THE CLAIM IS PENDING
HOWEVER.
IN MY EXPERIENCE THE VAST
MAJORITIES CLAIMS RESOLVE BY A
SETTLEMENT.
AND ALMOST ASSOCIATIONS ARE IN A
FAR BETTER POSITION AFTER THE
CLAIM IS RESOLVED BECAUSE THEY
HAVE THE FUNDS AVAILABLE TO
REPAIR CONSTRUCTION DEFECTS IN
DANGEROUS CONDITIONS OF THE
PROPERTY -- IN ORDER TO KEEP THE
DUES DOWN AND PREVENT SPECIAL
ASSESSMENTS.
UP THE THE ARGUMENT THAT IT
IMPACTS.
SALES DURING THE THE PERIOD IS
OF LITIGATION IS IN FACT -- AN
ARGUMENT IN SUPPORT OF LIFE
HOMEOWNERS -- SHOULD NOT BE
MAKING THE DECISION TO PURSUE A
CLAIM AND BOARD SHOULD BECAUSE
THE HOMEOWNERS DON'T HAVE A
FIDUCIARY OBLIGATION TO THE REST
OF THE MEMBERSHIP -- AS A WHOLE
AS DO THE BOARD MEMBERS THE
BOARD HAVE TO HAS TO LOOK OUT
FOR THE BEST INTEREST OF THE
ASSOCIATION -- IF A HOMEOWNER
HAS A CONCERNED THAT OF
LITIGATION COULD AFFECT THE OUR
MEDIA NEED TO SELL THEIR
PROPERTY IF YOU HAVE A HOMEOWNER.
HE WANTS TO SELL THE NEXT SIX
MONTHS OR TWELVE MONTHS AND THEY
DON'T WANT TO HAVE THIS CLOUD OF
LITIGATION OVER IT THAT MIGHT
IMPACT THEIR OWN PERSONAL --
DESIRE TO SELL THEIR UNIT THAT'S
A CONFLICT OF INTEREST THAT THEY
HAVE IT'S NOT IN THE BENEFIT OF
THE HOMEOWNERS THAT ARE GOING TO
BE THERE FOR THE LONG TERM.
AND WOULD BE SADDLED WITH THE
EXPENSE OF HAVING TO PAY FOR A
DEFECT REPAIRS IF THE CLAIM WAS
PURSUED IN SELF FOR THAT REASON --
HOMEOWNERS WHO DO NOT HAVE TO
SHARE OBLIGATION TO ONE ANOTHER
SHOULD NOT BE MAKING THE
DECISION TO PURSUE A CLAIM
RATHER IT SHOULD BE THE BOARD
WHO HAS A FIDUCIARY OBLIGATION --
TO ACT IN THE BEST INTEREST OF
ALL MEMBERS.
ANY ADDITIONAL QUESTIONS OR
COMMENTS SENATOR MORE LOOK.
THANK YOU MISTER CHAIR THAT THE
CALIFORNIA BUILDING INDUSTRY
ASSOCIATION STATES THAT.
THIS BILL -- THE PROBLEM IS THAT
IT IT HAS ADDED COSTS AND I'M
JUST CURIOUS COULD YOU QUANTIFY
THOSE COSTS WHAT WE TALKING
ABOUT.
I THINK THAT WAS OUR POSITION
BASED ON THE BASED ON THE
PREVIOUS VERSION OF THE BILL I'M
ASSUMING THAT THAT'S WAS SECTION.
ONE THAT HAD THE PLANS AND THE
SPECS.
THAT.
HAS BEEN DELETED FROM THE BILL.
I MEAN I'M HAPPY GOING TO THAT
BUT IF IT'S NOT IN THE CURRENT
VERSION OF THE BILL.
AGAIN I'M HAPPY TO GO INTO IT.
I WOULD MEAN.
IF IT'S NOT IN THE CURRENT
VERSION UNLESS ARE MORE LIKE
WOULD LIKE TO GO INTO IT.
YOU KNOW I'LL DO A LITTLE MORE
DIGGING HERE.
JUST.
PERHAPS MAY I DON'T HAVE
EVERYTHING SO THANK YOU SELECT.
THANK YOU ANY OTHER QUESTIONS OR
COMMENTS A THINNER CABALLERO.
I JUST HAVE A QUESTION -- WHEN I
WALKED IN AND I SAT DOWN AND YOU
WERE SPEAKING SENATOR I MISSED?
I I HEARD YOU SAYING YOU ARE NOT
TAKING THE AMENDMENTS AND I ARE
TAKING THEM OKAY GREAT I I'M
MISUNDERSTOOD IS I THINK
JUDICIARY WHERE YOU YES WHERE I
SAT THANK YOU VERY MUCH CHECK
THAT CLEARS IT UP FOR ME THANK
YOU MISTER CHAIR.
THE BILL SENATOR WINNER.
YES CENTER BATES.
YES I I AM CONCERNED.
WITH THE LACK OF TRANSPARENCY
AND FOCUS.
THAT COULD BE BROUGHT TO THE
ISSUE OUT WHEN THE ENTIRE
MEMBERSHIP.
DOESN'T HAVE THE OPPORTUNITY TO
BE INVOLVED IN THAT FINAL
DECISION THE REASON BEING I'VE
BEEN.
A MEMBER OF AN H. AWAY WHERE
WE'VE HAD A NUMBER OF FILE.
LITIGIOUS SITUATIONS IN WHICH
ONE WENT ARE NOT IN OUR FAVOR
AND WE DID HAVE AN EXTRA SAUCE
MEANT.
NOT AS LARGE AS SOME THAT ARE
DISCUSSED HERE.
SO I'M CONCERNED AS TO WHY WE
WOULD BE SO WORRIED ABOUT.
THEM VOTING OR NOT BUILDING WHEN
YOU HAVE PEOPLE ON THE BOARD
POTENTIALLY IMPACTED BY THIS
SAME THING.
IN THERE ARE NOT PREVENTED FROM
WHAT I KNOW OF THE WAY IT'S
OPERATED IN MY COMMUNITY.
THEY ARE NOT NECESSARILY
REQUIRED TO OPT OUT.
OF A DECISION WHEN IT AFFECTS
THEM ALSO.
BECAUSE YOU HAVE NOT ENGAGE THE
ENTIRE MEMBERSHIP WHEN IT
AFFECTS THE ENTIRE ENTIRE TEAM
INCLUDING ME ON THE CORD.
I HAVE SOME SORT OF PROTECTION
THAT I AM NOT IN CONFLICT BUT
WHEN IT HAPPENS TO BE MY HOME
AND I WON'T GO INTO A COUPLE IN
OUR CITIES.
IN OUR FUTURE WAY THAT THIS DID
A FACTOR -- BEYOND THE ODD THOSE
OTHERS ARE DRAWN INTO MAYBE THE
ARGUMENT THAT TWO OR THREE
PEOPLE OUT BECAUSE THEY HAVE A
DIFFERENT LET'S SAY THEY HAVE A
DIFFERENT STYLE HOME IN A YOU
KNOW MASTER PLANNED COMMUNITY.
THEIR PLAN THREE AND FOUR WHICH
HAS THE DEFECTS IN THE OTHER
GUYS DON'T BUT THEY WANT THE THE
HOLD ASSOCIATION TO BE IN THEIR
CAMP.
SO THEY'LL VOTE FOR AND I THINK
THOSE ARE CONCERNS THAT BY NOT
INVOLVING THE WHOLE MEMBERSHIP --
IF NOT A VOTE SOME THING THAT'S
VERY OPEN AND DIRECT ABOUT
WHAT'S GOING ON SO THEY HAVE AN
OPPORTUNITY TO APPEAL.
FLORA IS REALLY -- TO ME LACK OF
ACCOUNTABILITY AND TRANSPARENCY
ON THE PART OF THE BOARD OF
DIRECTORS AND THOSE WHO WERE
INVOLVED AT THIS YOU GUYS KNOW
THERE'S ALWAYS.
PROBLEMS WITH THE BOARD OF
DIRECTORS AND SOMEBODY GOT ON
BECAUSE THEY WANTED A BASKETBALL
YOU KNOW.
WHO FUND THEIR FRIEND ON THEIR
GARAGE FOR THEIR KID NOBODY ELSE
WANTED IT SO THEY HAVE SOMETHING
THAT ALLOW THAT?
THIS HAPPENS QUITE A BIT AND I
HAPPEN TO REPRESENT COMMUNITIES
THAT.
I THINK MOST OF THE COMMUNITIES
OF SOUTH ORANGE COUNTY.
THAT WERE DEVELOPED IN THE LATE
EIGHTIES NINETIES OUR H. AWAY --
THERE'S VERY FEW THAT ARE
VOLUNTARY SO YOU ARE REALLY AT
THE MERCY OF THE PEOPLE THEY GET
ELECTED TO THOSE BOARDS AND
SOMETIMES.
THEY'RE TIRED THEY DON'T THAT
HAPPEN IN MY ASSOCIATION THEY
WILL TOTAL TURNOVER BECAUSE TO
THE PEOPLE HAVE HAD IT.
SO I DO BELIEVE THE THE ENTIRE
MEMBERSHIP NEEDS HELP SOME
SIGNIFICANT -- PARTY IN THE
DECISION MAKING HERE AND HOW YOU
MIGHT.
SENATOR HILL YES THINKS IT NEEDS
MORE WORK IF YOU'RE NOT
COMFORTABLE WITH.
AN ACTUAL VOTE AND ONLY YOU KNOW
10% SHOW UP AND VOTE.
ON THAT THAT STUFF IN ISSUE TOO
BUT THERE'S GOT TO BE A BETTER
BALANCE FOR YOUR JUST BASICALLY
PUTTING A BOARD OF DIRECTORS AND
AN INCREDIBLY -- FINANCIALLY --
RELEVANT POSITION WITH REGARDS
TO THE PEOPLE THAT LIVE THOUGH
THE FIFTY HOMES A TWO HUNDRED
HOMES -- AND MAYBE ONLY A THIRD
OF THEM HAVE THIS PARTICULAR
CONSTRUCTION DEFECT -- I'M OF AN
ARCHITECT FAMILY AND KIND OF
KNOW WHAT THAT MEANS TO THE
DEVELOPER AND THE ARCHITECT IN
TERMS OF SOME OF THE THINGS THAT
ARE KIND OF YOU KNOW THERE THERE
ONE WEEK FROM THE STATUTE OF
LIMITATIONS AND BEING GO THE
WHOLE ASSOCIATION GETS.
OF A LETTER FROM YOU KNOW AND AN
ATTORNEY OF SOME SORT SO I JUST
LIKE TO ASK YOU TO TAKE A LOOK
AT THAT -- BECAUSE I THINK THE
YOU'VE DIALED THE BALLOT THEY
NEED TO BE DIALED IN A STRONGER
POSITION MEMBERS OF AN
ASSOCIATION.
AND FOR THAT REASON I WOULD BE
ABLE TO SUPPORT IT TODAY IN OUR
SUPPORT IS YOUR OTHER ONES
SUBSEQUENT TO THE THE BERKELEY
INCIDENT.
BUT THIS ONE I THINK IS REALLY A
REALLY -- REACHING TOO FAR IN
TERMS OF WHERE YOU GIVE
AUTHORITY TO MAKE SIGNIFICANT
DECISIONS I IN TERMS OF WHAT IT
WILL AFFECT AN INDIVIDUAL AND
BASICALLY THEIR LARGEST I
INVESTMENT -- FINANCIALLY THAT
THEY HAVE THEIR HOME.
AND THAT FLOW SIGNIFICANT WHEN
YOU HAVE A CLOUD PUT OVER THAT
BECAUSE OF LAWSUITS THAT COULD
GO ON DRAG ON AND ON ALL OF THEM
SO.
THOSE ARE MY CONCERNS AND THE
REAL HAVING BEEN A MIDDLE OF A
FEW OF THEM I PERSONALLY.
AND IF I COULD RESPOND JUST A
LITTLE BIT I DO FEEL AND MY
WITNESS WANTED TO TO MAKE A
COMMENT TO WEEK WE DO LIVE IN
THESE H..
ARE REPRESENTATIVE DEMOCRACIES --
AND THEY MAKE DECISIONS THAT CAN --
LEAN PROPERTY ALL THE TIME --IN
DIFFERENT CASES THEY HAVE A
FIDUCIARY RESPONSIBILITY TO MAKE
SURE THAT THEY ARE RESPONSIBLE
FOR THOSE DECISIONS.
THE DECISIONS THAT ARE MADE
RELATED TO LITIGATION ARE BASED
ON OF A MEETING WHERE THE
INFORMATION IS BROUGHT TO THE
HOMEOWNERS SO THERE IS A PUBLIC
COMPENSATION AROUND THIS.
AND AND AGAIN THE THE FACT THAT
THEY THEY THEY MAKE DECISIONS
AND TAKE ACTION ON PROPERTY
DECISIONS ON LAWSUIT LOGICAL
LITIGATION -- ALL THE TIME AND
DO NOT INVOLVE THE FULL
MEMBERSHIP IN IN THAT IT'S DONE
IS IN A WAY -- TO REPRESENT THE
AT THE GROUP AS A WHOLE AND I
THINK -- MISTER BROWN HAD A
COMMENT.
CHAIR RIVER.
THANK YOU I DO I THINK IT'S
IMPORTANT JUST TO CLARIFY THAT.
THE BILL DOES NOT PROHIBIT VOTES
FROM BEING IN AMENDED INTO THE
GOVERNING DOCUMENTS WHAT A
PROHIBITS IS THE DECLARANT OR
THE DEVELOPER FROM WRITING THOSE
INTO THE DOCUMENTS.
PRIOR TO THE ASSOCIATION EVER BE
INFORMED THE ASSOCIATION STILL
HAS THE AUTHORITY UNDER THE
LANGUAGE WITH IN SB THREE TWENTY
SIX TO ADD THOSE REQUIREMENTS.
WITH A VOTE OF THE MEMBERS -- IF
THAT ASSOCIATION SO CHOOSES SO
THE IDEA IS TO IS REALLY TO
LEAVE THESE DECISIONS ON WHETHER
NOT A VOTE IS REQUIRED FOR THESE
TYPES OF ACTIONS. TO THE
MEMBERSHIP RATHER THAN THE WAY
IT IS IN PRACTICE NOW WHICH IS
WRITTEN BY THE DEVELOPER.
IN A DOCUMENT IT GENERALLY HAS
OTHER OBSTRUCTIONS WITHIN IT
PREVENTING THOSE CHANGES TO TO
HAPPEN.
OKAY -- CENTER OFF ANOTHER
QUESTION.
THE COUPLE FOLLOW UP MISTER
CHAIR THANK YOU.
THE CONSTRUCTION DEFECT TYPE
SITUATIONS THAT WE'RE TALKING
ABOUT.
IS IT POSSIBLE THAT THOSE
DEFECTS WOULD MPOSE LIABILITY
ON THE HOMEOWNERS ASSOCIATION AS
AN ASSOCIATION -- WITH RESPECT
TO THE TYPES OF INSIDE OUTSIDE
ISSUES THAT THE ASSOCIATION
WOULD NORMALLY HAVE TO DEAL WITH.
DID THAT QUESTION MAKE SENSE I'M
SORRY COULD YOU CLARIFY THAT
TIME A CONSTRUCTION DEFECTS
ASSUME THAT THE DEFECTS
THEMSELVES WITH THOSE BE THE
TYPE OF DEFECTS AND ISSUES THAT
MIGHT IMPOSE LIABILITY ON THE
HOMEOWNERS ASSOCIATION IF.
IF ON CORRECTED.
ABSOLUTELY AND THAT THE CASE
THAT I TALKED ABOUT EARLIER IN
SAN FRANCISCO WITH ELEVATED
WALKWAYS THAT ARE THE ONLY MEANS
OF INGRESS AND EGRESS TO THE
UNITS ON THE ON THE FIFTH LEVEL --
IF IF LEFT ON REMEDIATED THOSE
ARE IN DANGER OF COLLAPSE IN
THEIR LIFE SAFETY RISK IN SELF
SOMEONE WERE.
TO YOU KNOW UNFORTUNATELY BE
THERE AT THE WRONG TIME AND BE
SERIOUSLY INJURED -- OR WORSE --
THAN ABSOLUTELY THE ASSOCIATION
COULD FACE LIABILITY -- FOR
FAILURE TO TAKE ACTION.
AND THEN FINALLY I DON'T
REMEMBER MY HOMEOWNERS
ASSOCIATION.
LOWER DAVIS STERLING BUT IS
THERE A REQUIREMENT BEFORE A
HOMEOWNERS ASSOCIATION --
RETAINS AN ATTORNEY AND INITIATE
LITIGATION THAT THE MATTER BE.
AGENDA AT A SCHEDULED TO
HOMEOWNERS ASSOCIATION BOARD
MEETING AND A VOTE OF THE BOARD
TAKEN.
BUT TYPICALLY THAT'S DONE ANY IN
EXECUTIVE SESSION THAT THAT
DECISION TO RETAIN COUNSEL --
THE BOARD MEMBERS -- MAKE THAT
DECISION.
IT WOULD NOT BE AGENDA TO
ADDRESS MY COLLEAGUES QUESTION
ABOUT.
TRANSPARENCY [inaudible]
CORRECT.
THANK YOU MISTER.
THANK YOU VERY MUCH -- CENTERS
ANY ADDITIONAL QUESTIONS OR
COMMENTS OKAY I SING NINE I WAS
OUR MOTIONS.
A MOTION BY SENATOR ROTH -- TO
PASSED THE BILL AS AMENDED -- TO
OKAY SIR TO THE FLOOR. TWO THREE
A MOTION TO PASS AS AMENDED TO
THE FLOOR -- AND AMENDMENTS ARE
THE MEMBERS FROM THE JUDICIARY
COMMITTEE WHICH TO THE TIMING
WERE TAKEN THIS COMMITTEE -- SO --
THAT IT'S THE MOTION BY SENATOR
ROTH WORLD BOOK TECH CALL THE
ROLL I'M WILL ACTUALLY I'M SORRY.
REVENUE HELL NIGHT MOVING HERE
THINK HE SAID IT TO US AT ALL
THANK YOU THANK YOU [inaudible]
OKAY.
THE SENATE BILL FOR TWENTY SIX
BY SENATOR HILL MOTIONS TO PASS
AS AMENDED SENATOR WIENER AYE
WIENER AYE MORALE.
BATES NO.
MORRELL NO BATES NOW COVER.
HI DRAWS -- DRAWS -- AYE MCGUIRE.
MCGUIRE AYE MOORLACH.
ROUGH.
ROTH AYE SKINNER.
SKINNER HI AMBER.
NUMBER FIVE BECAUSE HE BECAUSE
HE AYE [inaudible]
YES.
OKAY THE VOTE IS THE KEY TO THAT
BILL IS OUT THANK YOU VERY MUCH
RICHARD THANK YOU COLLEAGUES.
OKAY NEXT WE WILL GO TO OUR
FINAL ITEM ITEM NUMBER TWO BY
SENATOR WHY CAL SKI SB.
THREE TWENTY THREE CONTINUING
WITH H. AWAY WEEK -- FIRST OFF
MISTER CHAIR MEMBERS OF THE
COMMITTEE I AM ACCEPTING THE
PROPOSED AMENDMENTS CONTAINED IN
THE COMMITTEES MOCK UP OF THESE
AMENDMENTS REFLECT MY GOOD FAITH
EFFORT. TO STREAMLINE THE BILL
AND COMPROMISE WITH THE
OPPOSITION -- THE BILL BEFORE U.
S. P. -- THREE TWO THREE WILL
STRENGTHEN THE DEMOCRATIC
GOVERNANCE OF CALIFORNIA'S.
FIFTY FIVE THOUSAND HOMEOWNERS
ASSOCIATION UNFORTUNATELY SOME.
H. AWAY BOARDS HAVE MANIPULATED
ELECTIONS BY FAILING TO NOTICE
THE ELECTION.
SOME BOARDS BY FAILING TO
DELIVER BALLOTS TO ALL THE
RESIDENTS IN SOME BOARDS HAVE
FAILED -- BY THROWING OUT VALID
BALLOT SOMETIMES THEY DON'T EVEN
HOLD ELECTIONS AT ALL -- THESE
CORRUPT BOARDS WILL EXCLUDING
DISENFRANCHISES OTHER HOMEOWNER
ASSOCIATION MEMBERS IN THE
COMMUNITY WHO SEEK TO CHALLENGE
THEIR EXISTING REGIME.
HOMEOWNERS ASSOCIATION BOARDS
CAN FIND HOMEOWNERS CAN TAKE
THEM TO COURT EVEN FOR CLOSE ON
THEIR HOMES SAID SO THESE --
BOARD MEMBERS SELECTIONS ARE NO
SMALL MATTER.
HERE TODAY WITH ME IS SHELLY --
DISTEFANO.
WHO'S AN H. AWAY RESIDENT AND
FORMER BOARD MEMBER IN JUDGE TOM
SIR IN SUPPORT OF THE MEASURE
NITROGEN AYE VOTE.
I THANK YOU AND I FIVE SEVEN SQ
TWIN IS TO LIMIT THE TESTIMONY
TO THREE MINUTES PLEASE.
THANK YOU MISTER CHAIRMAN AND
MEMBERS OF THE COMMITTEE MY NAME
IS TOM SIR AND I WILL MORE FULLY
INTRODUCE MYSELF.
I'M A MEMBER OF THE LEGISLATIVE
COMMITTEE FOR THE CENTER FOR
CALIFORNIA HOMEOWNERS
ASSOCIATION LAW.
I AM A RETIRED SUPERIOR COURT
COMMISSIONER OUT OF THAT'LL
ALAMEDA COUNTY AND AMONG OTHER
THINGS SET FOR MANY YEARS AND
SMALL CLAIMS CASES AND I
CONTINUE TO DO THAT AFTER
RETIREMENT -- AND FOR FIVE YEARS
I WAS THE CHAIR OF THE JUDICIAL
COUNCIL SUBCOMMITTEE ON SMALL
CLAIMS AND LIMITED JURISDICTION
CASES.
SO I DO BRING A SOMEWHAT OF A
JUDICIAL PERSPECTIVE TO THIS
DISCUSSION -- I'D LIKE TO FIRST
BEGIN BY NOTING -- A FACT WHICH
MANY YOU ARE AWARE OF ALREADY
WHICH IS.
THAT ABOUT 25% OF CALIFORNIANS
DO LIVE IN H. AWAY GOVERN
COMMUNITIES AND THIS NUMBER IS
GROWING DAILY.
AZIZ FISCAL ADVANTAGES OF HAVING
A TWO WAYS -- ARE TAKEN
ADVANTAGE OF BY MANY CITIES.
AND OF COURSE.
IN AN H. AWAY THE HE CHOI ITSELF
EXERTS A VERY HIGH LEVEL OF
CONTROL OVER THE CONDITIONS
UNDER WHICH LIVING.
THE PERSONS WHO LISTEN WHAT ARE
THESE -- TYPES OF DEVELOPMENTS
HAS ONLY.
ELECTIONS THAT -- I'D LIKE TO
ALSO NOTES AND BACKGROUND WHICH
IS THAT THE CURRENT LAW
GOVERNING ELECTIONS.
IS THE PRODUCT OF A THREE YEAR
BI PARTISAN EFFORT.
LED BY SENATORS DAVE JONES AND
JIM BATON.
THAT RESULTED IN A CONSENSUS
SERIES OF CONSENSUS BILLS.
THAT THE PRESIDENT OF OUR CENTER
MARJORIE MURRAY WHO'S IN ANOTHER
HEARING AT THIS POINT.
A CAN OF PARTICIPATED IN THAT
THREE YEAR VERY GRUELING.
EFFORT THAT RESULTED IN THE
CURRENT ELECTION STRUCTURED IN
DAVIS STERLING.
OUR CENTER HAS CONTINUE TO
MONITOR THE IMPLEMENTATION OF
THESE RULES.
AND A AND THIS IS.
PRIMARILY THROUGH FEEDBACK FROM.
RESIDENTS OF A CHOICE THROUGHOUT
THE STATE.
WE GET INFORMATION WE GET
COMPLAINTS -- WE YET THE
CONCERNS OF ALL TYPES.
I EXPRESSED AND FRUSTRATIONS AND
THE BILL BEFORE YOU IS LARGELY
BASED ON THAT KIND OF FEEDBACK
THAT WE'VE HEARD PROBLEMS WITH
THE EXISTING.
ELECTORAL STRUCTURE -- SO THAT --
AS THE CENTERED POINTED OUT.
THERE'S STILL A LOT OF BAD
THINGS GOING ON IN IN ELECTIONS.
AND IN THE ABILITY OF AN
INCUMBENT BOARD TO MAINTAIN
CONTROL AND POWER YEAR AFTER
YEAR AFTER YEAR. TO MANIPULATION
OF EITHER THE THE CONDUCT OF THE
ELECTION OR THE RULES GOVERNING
THE ELECTION.
SO THE HIGHLIGHTS OF THE BILL
ARE.
THAT WE ADDRESS QUALIFICATIONS
THAT ARE SOMETIMES IMPOSED ON
RUNNING FOR THE BOARD.
I'D LIKE TO NOTE THAT A PUBLIC
COLLECTIONS THROUGHOUT
CALIFORNIA.
THERE'S ONLY ONE RESTRICTION
THAT I'M AWARE OF IN.
OF RUNNING FOR ANY PUBLIC OFFICE
IN CALIFORNIA AND THAT IS IF YOU
HAVE BEEN CONVICTED OF A FELONY
INVOLVING BASICALLY BREACH OF
PUBLIC TRUST SERIES OF CLOSELY
DEFINED -- TYPES OF FELONIES.
THAT'S THE ONLY RESTRICTION.
YOU CAN BE OWING BACK TAXES YOU
COULD BE DOING ALL SORTS OF
THINGS AND YOU'RE STILL
QUALIFIED TO RUN.
SO QUALIFICATIONS FOR THE BOARD
ARE NOW UNDER THIS BILL
RESTRICTED.
SO THAT YOU CAN'T BE MANIPULATED
AND OF DISSENTERS.
RENDERED UNABLE TO RUN FOR THE
BOARD [inaudible]
ANOTHER.
POINT IN THE BILL IS TO
GUARANTEE THE INDEPENDENCE OF
THE INSPECTOR OF ELECTION.
IN PUBLIC ELECTIONS WE HAVE THE
SECRETARY OF STATE THE REGISTER
VOTERS CITY CLERKS AND SO FORTH
THROUGHOUT THE STATE.
A VERY INDEPENDENT STRUCTURE
THAT IS NOT GOVERNED AND
CONTROLLED BY THE BOARD THAT IS
BEING COLLECTED.
SO THAT IT'S VERY IMPORTANT FOR
THE INSPECTOR OF ELECTIONS TO BE
AN INDEPENDENT TRULY INDEPENDENT
AND NOT AN EMPLOYEE OF THE
ASSOCIATION.
UP THERE ALSO PROCEDURES FOR
VERIFYING THE ACCURACY OF THE
BALLOT.
AND A REMEDY IF SOMEONE'S LEFT
OFF EITHER INADVERTENTLY OR ON
PURPOSE.
AND WE ALSO HAVE ADDRESS THE
JUDICATA AND ELECTION DISPUTES.
PROVIDING SOME VERY NEEDED
GUIDANCE TO THE COURTS HERE'S
PARTICULARLY SMALL CLAIMS COURTS.
AND WITH THAT I'D MOVED.
YIELD TO MY COLLEAGUE.
GOOD AFTERNOON CHAIRMAN AND AN
HONORABLE MEMBERS.
MY NAME IS SHELLY DISTEFANO AND
I PURCHASED MY CONDO IN AN H.
AWAY WITH OVER SIX YEARS AGO.
IT BECAME OBVIOUS EARLY ON THAT
THE BOARD AND MANAGEMENT COMPANY
WERE ROUTINELY VIOLATING STATUTE
AND GOVERNING DOCUMENTS WERE
ENGAGED IN IMPROPER
RELATIONSHIPS WITH VENDORS AND
CONTRACTORS WHO OVER CHARGED
INDEED FAULTY WORK.
THEY USED THEIR POWER TO HER
RASZYN TO FAME HOMEOWNERS WHO
PUSHED BACK.
AND WE LEARNED THAT A SMALL
CLIQUE OF HOMEOWNERS HAVE BEEN
ROTATING ON THE BOARD INCLUDING
WITH THE SAME MANAGEMENT COMPANY
FOR OVER TEN YEARS.
SO -- WE DID THE OBVIOUS A
NEIGHBOR AND I RAN FOR AND WON
SEATS ON OR BOARD WE DISCOVERED
ALL KINDS OF BEATING
IRREGULARITIES WITH VENDORS
INCLUDING ONE WITH A HALF
MILLION DOLLAR PROJECT WHICH IS
MORE THAN HALF OF OUR ANNUAL
BUDGET -- IN WHICH THERE WAS A
PRIMA PARTY CASE OF COLLUSION
BETWEEN THE ANAGEMENT COMPANY.
THE CONSTRUCTION MANAGER AND THE
BIDDERS.
I'VE DURING THE LAST FOUR
ELECTION CYCLES WE TRY TO CHANGE
THE BOARD MAKE UP BUT MULTIPLE
STRATEGIES HAVE BEEN USED TO
UNDERMINE THIS EFFORT.
DISCOURAGING INTERESTED
HOMEOWNERS FROM RUNNING.
AND REMOVING NON COMPLIANT BOARD
MEMBERS AND THEN BY BOARD VOTE
FILLING THE SEATS WITH MORE
COMPLIANT HOMEOWNERS WHO DON'T
QUESTION THE ACTIONS THE
MANAGEMENT COMPANY OR THE
PRESIDENT OR VICE PRESIDENT WERE
ALWAYS THE WOMAN.
THEY SEEM TO BE IN CHARGE OF THE
MEETINGS -- SO WHAT WERE THE
STRATEGIES OR ONE OF US WAS
SUBJECT TO A DOOR TO DOOR
SLANDERS CAMPAIGN IT WITH WITH
WHAT THEY DID TO HIM IN THE
COMMUNITY AND AND HIS REPUTATION
COMMUNITY WHICH IS REALLY.
HEARTBREAKING ANOTHER WAS TOLD
THAT THEY WEREN'T ELIGIBLE TO
RUN FOR THE BOARD BECAUSE A
LIGHT OVER THE GARAGE AT THE THE
ASSOCIATION ITSELF IT REPLACED
WAS OUT.
AND BOTH MY NEIGHBORS AND I RUN
LAWFULLY REMOVE FROM THE BOARD
BY A SECRET VOTE WE HAD NO IDEA
THAT THIS VOTE WAS TAKING PLACE
AND I LEARNED THAT I WAS OFF THE
BOARD TWO MONTHS LATER WHEN I
WASN'T RECEIVING ANY INFORMATION.
AND COURSE THE THEY GAVE ME
THEIR APOLOGIES BUT THAT WAS IT
THEY GAVE ME NO.
INFORMATION SO MY PUSH BACK WAS
MET WITH ESCALATED HARASSMENT.
AND ABUSE OF POWER THEY
THREATENED LEGAL ACTION AND
THREATEN TO ASSIST ME WITH ANY
LEGAL FEES IF THEY AND KURT.
I RECEIVED THREATENING LETTERS
FROM THEIR ATTORNEY -- BEING
PAID THROUGH MY MY MY CHOICE ADD
TO THAT I I PAY EVERY MONTH.
AND MY INITIAL REQUEST FOR
MEETING WAS DENIED.
ULTIMATELY I WAS OBSESSED TWENTY
FIVE HUNDRED DOLLARS WITH A
FIFTY DOLLAR DAY PENALTY FOR SIX
DIFFERENT UNFOUNDED VIOLATIONS
WITHOUT BEING ABLE. TO FACE MY
ACCUSERS DESPITE REPEATED
REQUEST -- AND THAT INCLUDED A
LETTER FROM THE ATTORNEY SAYING
THAT THEY HAD NO RESPONSIBILITY
FOR IT AND THEY WERE NOT
REQUIRED TO LET ME SEE.
THE WITNESS STATEMENTS OR TO
QUESTION MY MY THE WITNESSES
AGAINST ME.
THE BOARD CONTINUED -- AND THEN
THIS WAS REALLY A THIS WAS AN
EIGHT MONTH EXTREMELY STRESSFUL
VERY DEMORALIZING PROCESSES IT
WAS ATTENDED TO PUNISH ME AND TO
MAKE AN EXAMPLE.
OF ME THE WAY THEY DID WAS AT
THAT -- MY NEIGHBORHOOD THEY
DEFAMED -- THE BOARD CONTINUOUS
SEVERAL OTHER VIOLATIONS THIS
YEAR.
PAYING HUNDREDS OF THOUSANDS OF
OVER CHARGES ON A CONSTRUCTION
PROJECT DESPITE WHAT THE
CONTRACT PERMITTED.
IMPROPERLY USING ATTORNEY CLIENT
PRIVILEGE -- TO DENY RECORD
REQUESTS FROM HOMEOWNER
SUGGESTED WITH THAT WAS THEIR
RESPONSE TO EVERY REQUEST.
TURNING CLAIM PRIVILEGE IN --
AND IT DOESN'T WORK THAT WAY HI --
IN AND THIRTY DAYS BEFORE AN
ELECTION DESPITE REQUESTS FROM
FOR AN INDEPENDENT THIRD PARTY
ALLEGING SPECTER BY BY ABOUT
TWENTY DIFFERENT HOMEOWNERS.
THE BOARD ADOPTED A WRITTEN RULE
TEMPERAMENT TO CONSPIRING
PROPERTY MANAGER TO SERVE AS THE
ELECTION INSPECTOR.
THIS WAS A DIRECT VIOLATION OF
THE RULE MAKING STATUTE AS WELL
AS OUR BY LAWS.
OUR BY LAWS REQUIRE AN
INDEPENDENT THIRD PARTY ELECTION
SPECTER IT HAS FOR YEARS BUT
THEY'VE ALWAYS USED THE PROPERTY
MANAGER -- THEY KNEW THAT I
SHOULD THE STATE UNIVERSITY
WRONG ON THAT SEEM TO MATTER SO
THAT'S WHY LEGISLATION LIKE.
THREE TWENTY THREE IS CRITICAL
BECAUSE IT'S AN IMPORTANT
MESSAGE ABOUT THE SANCTITY
IMPORTANCE OF A FAIR AND OPEN
ELECTION PROCESS THAT CAN'T BE
MANIPULATED.
THE WAY IT'S BEING DONE IN OUR
COMMUNITY BY COORDINATED EFFORTS
OF THE PROPERTY MANAGER
UNETHICAL AND ILL TRAINED.
BOARD AND OTHER THIRD PARTIES
WHO OBVIOUSLY HAVE A VESTED
INTEREST IN THE ELECTION OUTCOME.
THANK YOU.
THANK YOU VERY MUCH IS THERE ANY
ADDITIONAL SUPPORT FOR THE BILL
PLEASE COME FORWARD.
HELLO MY NAME IS GUS PETRA BORG.
I AM A FORMER ELECTED DIRECTOR.
I AM IN PLASTER COUNTY I OWN
PROPERTY IN ROCKLAND AND IN
ROSEVILLE IN ROSEVILLE.
IT'S A OWNERS ASSOCIATION OF
SINGLE FAMILY HOMES I'M SINGLE
LOCKS.
WE EXPERIENCED SOME OF THE SAME
PROBLEMS THE ONE I'LL JUST
BRIEFLY COMMENT THANK YOU SIR.
SPECIALLY SINCE THAT'S THE STATE
YOUR AFFILIATION AND YOUR
SUPPORT.
OKAY I WAS JUST GOING.
TO MENTION ONE THING BUT MON
COST LARA CALIFORNIA ALLIANCE OF
RETIRED AMERICANS REPRESENTING
OVER ONE MILLION.
SENIORS ACROSS THE STATE OF
CALIFORNIA IN STRONG SUPPORT.
JANET THROUGH PLAIN OLD
HOMEOWNER PLASTER COUNTY AND I
VERY MUCH SUPPORT THIS BILL
THANK YOU.
MY NAME'S REVENUE CYCLE IN A
LIVE IN PLANTS ARE CONNIE AT
PLEASE SUPPORT THIS BILL.
MY NAME IS MICHAEL WILLIAMS I
LIVE IN CHOWCHILLA WE HAVE AN
EXACT SAME SITUATIONS THE LATEST
CRIME IN OUR HOMEOWNERS
ASSOCIATION I WOULD LIKE TO SEE
SOMETHING DONE ABOUT IT.
PLEASE.
I WAS PATRICK AURORA CAME UP
FROM LOS ANGELES TO SUPPORT THIS
BILL.
MY NAME IS JACOB MARCUS I CAME
FROM LOS ANGELES TO SUPPORT THIS
BILL.
THANK YOU.
HI MY NAME IS MARIA ELENA.
AND I'M CONCUR WITH THE STORY I
WANT TO CRY BECAUSE I'M
SUFFERING TO SAVE PEOPLE THREE
YEARS.
PUT THREE HE'S.
SENATOR WE KASKI THANK YOU FOR
BRINGING OF SANITY AND SOME
CONTROL OVER THESE PEOPLE.
THE THE NEAREST YOU KNOW THEY
TAKING ADVANTAGE OF US LAWYERS
AND MANAGED BIG COMPANIES.
AND MY SIX HUNDRED YOU AND IT
DIDN'T MONEY NO THE RATE.
THANK YOU.
THANK YOU SO MUCH.
HI MY NAME IS ELLEN D'AGOSTINO
I'M A RETIRED LEGISLATIVE
EMPLOYEE AND HOMEOWNER IN AN
ASSOCIATION.
WHO HASN'T HAD AN ELECTION AND
OVER EIGHT YEARS?
I SUPPORT THIS BILL FULLY.
I TRY TO GUESS.
HI MY NAME IS THERESA LUCAS I'M
FROM YOLO COUNTY -- A WITH
SELECTED AS A RIGHT INTO THE
BOARD [inaudible]
BECAUSE I FEEL FOR THE
HOMEOWNERS YOU WERE RIGHT ON
WITH EVERYTHING YOU SAID YOU'RE
GOOD I WANT TO TALK TO SOMEBODY
ELSE YEAR WONDERFUL.
AND THE FACT IS I SUPPORT THIS
BOARD.
I SUPPORT THIS THIS BILL TOTALLY.
I'D LIKE TO TALK TO THE PEOPLE
OF YOUR OTHERS REGARDING THE
DEFECT THINGS BECAUSE YOU DON'T
KNOW SOMETHING.
OTHER THAN THAT WHEN THERE'S
DYSFUNCTIONAL BOARD THAT TAKES
OVER AND HASN'T BEEN.
ANSWERING COMPANY THANK YOU
MA'AM.
I SUPPORT THIS THANK YOU.
GOOD AFTERNOON MY NAME IS ROLENE
WILLIAMSON I'M FROM SHOP TO LOOK
CALIFORNIA AND I TOTALLY SUPPORT
THE BILL THANK YOU.
THANK YOU VERY MUCH ANY
ADDITIONAL SUPPORT.
IS THERE ANY OPPOSITION TO THE
BILL SO PLEASE COME FORWARD
[inaudible]
SINCE [inaudible]
WONDERFUL.
YES IT'S TIME TO THEIR IF THERE
ARE THREE OF YOU SPEAKING THEN
WE'LL ASK YOU TO LIMIT YOUR
REMARKS TO TWO MINUTES.
GOOD AFTERNOON CHAIRMAN AND
MEMBERS OF THE SENATE HOUSING
COMMITTEE.
MY NAME IS CRAIG MORE OCCURRED
AND I AM THE CHAIRPERSON.
OF BAR ASSOCIATIONS GOVERNMENTAL
AFFAIRS COMMITTEE SUN CITY
ROOSEVELT. TO MY LEFT.
WE HAVE JACK ALISON HE'S A
MEMBER OF THE SAME COMMITTING.
AND PAST PRESIDENT OF OUR BOARD
OF DIRECTORS [inaudible]
OUR ASSOCIATION.
AND IN FACT I'M HERE TODAY NOT
ONLY TO REPRESENT SUN CITY
ROSEVILLE BUT ALSO SUN CITY
LINCOLN.
AND WHEN YOU COMBINE.
THE NUMBER OF HOMES BETWEEN
THOSE TWO ASSOCIATIONS.
WE HAVE APPROXIMATELY TEN
THOUSAND HOMES WITH SIXTEEN
THOUSAND TWO HUNDRED RESIDENTS.
TWO OF THE LARGER HOMEOWNER
ASSOCIATIONS IN NORTHERN
CALIFORNIA.
EACH OF YOU OF BASICALLY
RECEIVED ARE WRITTEN POSITION
STATEMENTS.
ON THIS PARTICULAR BILL SO OUR
INTENT HERE TODAY IS NOT TO
REITERATE OR DISCUSS THAT
PARTICULAR LETTER YOU'VE
PROBABLY READ IT YOU UNDERSTAND
WHAT THE BASIS IN LOGIC FOR
POSING.
OF THIS LEGISLATION.
WE DON'T INTEND TO TAKE A LOT OF
TIME TO DO THAT OUR PURPOSE. FOR
TAKING THE TIME TO BE HERE.
IS TO TESTIFY IN PERSON TODAY TO
INFORM YOU THAT.
OR NOT LOBBYIST.
WE'RE NOT ATTORNEYS.
AND WE DON'T REPRESENT TRADE
ASSOCIATIONS.
WE DIRECTLY REPRESENT AND SPEAK.
FOR THE RESIDENTS OF OUR
ASSOCIATIONS THAT THIS
LEGISLATION WILL IMPACT.
WE ALSO ARE THE IMPLEMENTERS WE
TAKE A LOOK AT THIS LEGISLATION
RETURN IN DETAIL AS PART OF THIS
COMMITTEE.
AND WE UNDERSTAND YOU KNOW WHAT
IS THE IMPACT NOT ONLY.
FROM THE STANDPOINT OF PRIVACY
BUT ADMINISTRATIVE -- THE
DIVISIONAL ADMINISTRATIVE LOAD
OF THE TASK TO ACHIEVE THE
ACCOMPLICE YOU KNOW THE
OBJECTIVES OF THIS LEGISLATION.
WE'RE THE ONES THAT ARE SUBJECT
TO AND WE IMPLEMENTED.
AND WE'VE SUCCESSFULLY HELD
ELECTIONS IN OUR ASSOCIATIONS
FOR OVER TWENTY THREE YEARS.
NOW WE THANK.
THEY'RE OUT OF FIFTY FIVE
THOUSAND HOMEOWNERS ASSOCIATIONS
IN THE STATE.
THERE A NUMBER THAT HAVE
DILIGENTLY FOLLOWED.
THE LAW AND I'VE HAD FOR
ELECTIONS.
WITHOUT MISHAP.
AND THAT'S CERTAINLY NOT TO DENY
WHAT WE RECENTLY HEARD.
HERE FROM THE PROPONENTS.
WE KNOW THAT THERE ARE SOME
BOARDS AND ASSOCIATIONS ARE
TAKING ADVANTAGE OF THEIR
MEMBERS.
THAT'S NEVER HAPPENED WITH US.
AND WE HAVE PEOPLE THAT ARE
DILIGENT THEIR VOLUNTEERS.
AND THE MAJORITY OF OUR
HOMEOWNERS ARE SENIOR CITIZENS.
SO I JUST WANTED TO POINT THAT
OUT.
ANOTHER ISSUE THAT WE HAVE QUITE
A CONCERN WITH ON THIS BILL --
AS IT'S CURRENTLY RICK WRITTEN.
IS THAT IT WILL COMPROMISE WE
FEEL OUR RESIDENTS PRIVACY OF
IDENTIFYING PERSONALLY
IDENTIFIABLE INFORMATION.
THROUGH ITS PROPOSED ELECTION
DOCUMENTATION PROCEDURES.
OUR BOARD OF DIRECTORS IN
ASSOCIATION RESIDENTS ASKED THE
COMMITTEE TO A VOTE AGAINST THIS
LEGISLATION.
IT'S BASICALLY REDUNDANT IN OUR
OPINION TO WHAT IS ALREADY
REQUIRED BY DAVID STERLING.
INFRINGES ON SIXTEEN THOUSAND
TWO HUNDRED RESIDENTS TO MANAGE
THEMSELVES SELF GOVERNANCE.
AND RAISES SERIOUS PRIVACY
ISSUES. FOR ALL OF US THANK YOU
SIR.
I DIDN'T -- IT ORIGINALLY INTEND
TO SPEAK BUT AFTER HEARING THE
TESTIMONY AND THE THE THE
EXPERIENCES OF OTHERS.
I'VE BEEN IN A HOMEOWNER
ASSOCIATION FOR FIFTY ONE YEARS.
I LIVED IN SUNNYVALE CALIFORNIA
IN THE SEVENTY SIX UNIT.
COM FOLLOW COMPLEX AND I
CURRENTLY LIVE IN ROSEVILLE AND
THIRTY ONE HUNDRED UNIT COMPLEX
I WAS THE PRESIDENT OF THE BOARD
OF DIRECTORS AT SUNNYVALE.
I WAS THE PRESIDENT OF THE BOARD
OF DIRECTORS IN ON THE BORG
TWICE.
AND I DON'T.
EXPERIENCE IN ANY OF THE FIFTY
THREE YEARS WHAT I'VE HEARD
TODAY HERE.
AND THAT'S ALL TO SAVE THAT.
MOST HOMEOWNERS ASSOCIATIONS ARE
RUN UNDER THE AUSPICES AND
FOLLOWING THE RULES OF THE DAVIS
STIRLING ACT.
AND FOR MY POSITION.
THIS BILL IS REDUNDANT.
AND IS NOT NEEDED WHAT IS NEEDED
IS MANAGEMENT OF THE INDIVIDUAL
HOMES.
HOMEOWNER ASSOCIATIONS AND FIND
IT DIFFICULT TO COMPLY WITH
CURRENT LAW [inaudible]
TORONTO.
MR CHAIRMAN MEMBERS OF THE
COMMITTEE LOUIS BROWN ON BEHALF
THE COMMUNITY ASSOCIATION'S
INSTITUTE FOR LEGISLATIVE ACTION
COMMITTEE -- I THINK THESE TWO
INDIVIDUALS ARE VERY WELL THERE
ARE FIFTY FIVE THOUSAND SO SHE
XIN SO IN THE STATE OF
CALIFORNIA THE BILL WAS VETOED
LAST YEAR.
GOVERNOR BROWN SAYS WITH A ONE
SIZE FITS ALL APPROACH.
THERE ARE BAD ACTORS WE KNOW
THAT IN EVERY INDUSTRY WE'VE
TALKED ABOUT IT PREVIOUSLY TODAY --
AND YET THIS IS A AN APPROACH
THAT TRIES TO PUT EVERYONE IN
ONE BOX AND I THINK MANY OF THE
SITUATIONS IN INSTANCES THAT WE
HEARD OF BY THE PROPONENTS.
MAY NOT GET CURED AS A RESULT OF
THIS BILL BUT WHAT WE WILL DO IS
PENALIZE THE GOOD ACTORS OUT
THERE WITH SOME ADDITIONAL
ACTIVITIES AND POTENTIAL COSTS.
WITH THAT BEING SAID I DO WANT
TO ACKNOWLEDGE.
THE AUTHOR IN A STAFF.
HAVING WORKED WITH THIS REALLY
TO CLARIFY IN TECHNICALLY
CORRECT MANY OF THE ISSUES --
THAT WE'VE IDENTIFIED IN THIS
BILL OVER THE PAST TWO YEARS --
WE DO HAVE A PHILOSOPHICAL
OBJECTION TO THE IDEA OF NOT
ALLOWING AN ASSOCIATION TO SET
ITS OWN REQUIREMENTS.
BUT MANY OF THE OTHER ELEMENTS
OF THE BILL THAT WE'VE BEEN
CONCERNED WITH OVER THE LAST TWO
YEARS I THINK OF REALLY SOMEWHAT
BEEN RESOLVED IN AND IN SOME
AREAS.
MAKE THIS BILL A LITTLE BIT MORE
WORKABLE SO I NEED TO
ACKNOWLEDGE THE AUTHOR AND A
STAFF FOR DOING THAT EVEN THOUGH
WE DO OPPOSE THE BILL.
THANKS VERY MUCH.
IS THERE ANY ADDITIONAL
OPPOSITION THE BILL SO PLEASE
COME FORWARD.
SEEING NONE WILL BRING IT BACK
TO THE COMMITTEE.
ANY QUESTIONS OR COMMENTS
COLLEAGUES.
THERE'S A MOTION BY SENATOR ROTH --
AND THAT IS -- WITH AMENDMENTS.
YES OKAY THE MOTION IS -- TO
PASS TO PASS AS AMENDED TO THE
SENATE FLOOR -- SEE NO QUESTIONS
OR COMMENTS -- WOULD YOU LIKE TO
CLOSE CENTER HERE'S AN AYE VOTE.
OKAY WE WILL NOW AND THIS DOES
ENJOY AND I RECOMMENDATION --
PLEASE CALL THE ROLL.
THIS ISN'T A BILL FOR TWENTY
THREE BY SENATOR MAKOWSKI MOTION
IS TO PASS AS AMENDED SENATOR
WIENER.
WIENER I AM AROUND.
MORRELL NO BATES [inaudible]
CAMARO.
EVER HI DRAWS OF ALTHOUGH I AM
ACQUIRE.
MORE LOCK.
ROUGH.
ROTH AYE SKINNER.
SKINNER AYE NUMBER.
NUMBER I'M COKIE BY BECAUSE HE I
OKAY THAT -- THAT BOTH THAT MUCH
THE CODE IS -- EIGHT TWO ONE YOU
WILL -- LET'S RE OPEN.
THE ROLE FOR THE WINNER OF THE
FIRST INAUGURAL -- MCGUIRE
REWARD. FOR BEING THE LAST
PERSON HERE [inaudible] THREE
TIMES.
YES I'D LIKE WITH CONTACTS.
THE GOVERNANCE AND FINANCE
COMMITTEE AWARDS A SENATOR
RICARDO LARA MEMORIAL AWARD FOR
THE LAST PERSON TO ARRIVE AT
THESE MEETINGS OR WELL ABOUT
THAT YOU'RE A CALL CENTER
MCGUIRE WORD -- YOU CAN I NOBLE
TO STAR WAS JUST OPEN IT IN
ORDER TO STOP NOW.
OKAY -- SO WE'RE NOW GOING TO GO
BACK AND OPEN THE ROLES -- ON
WAS WITH THE CONSENTS IT WAS
EVERYONE HERE NOW OR MISSING
ANYONE CENTER MORALE HAS STEPPED
OUT I THINK.
NUMBER YOU I'M SORRY MRS HERE --
OKAY GREAT -- WILL OPEN THE ROLE
ON ITEM NUMBER ONE SB TWO FIFTY
TWO BY CENTER LEYVA.
WOULD YOU PLEASE CALL THE ABSENT
MEMBERS.
THIS IS AN ABLE TO FIFTY TWO BY
SENATOR NOW GOOD ITEM NUMBER --
TWO SB THREE TWENTY THREE BY
SENATOR WHITE HOUSE HE THIS IS
AN ABOVE FOR TWENTY THREE BY
SENATOR MAKOWSKI THE MOTIONS TO
PASS AS AMENDED.
SENATOR BATES MCGUIRE.
MCGUIRE BY MORE LOCK.
OKAY THE VOTE IS NINETY ONE AND
THAT -- ITEM IS OUT -- WE
ALREADY CLOSE THE ROLE ON ITEM
[inaudible]
THREE AND YEAH.
OKAY ONE L. -- FINISHED WITH THE
CONSENT CALENDAR ITEMS FOUR AND
FIVE SB SIX FIFTY TWO BY SENATOR
ALLEN SB SEVEN FIFTY ONE BY
SENATOR RUBIO.
WE'LL CALL THE ABSENT MEMBERS ON
THE CONSENT CALENDAR WHICH
CONSISTS OF FILE ITEMS FOUR AND
FIVE SENATOR MORROW.
MORRELL AYE MCGUIRE MCGUIRE AYE
SKINNER SKINNER I ELEVEN ZERO
THE CONSENT CALENDAR IS APPROVED --
A REAL NUMBER ON OKAY -- THAT
CONCLUDES -- THE OUR HEARING
TODAY AND WE ARE ADJOURNED