Community Insider Winter 2017 - Page 38

WHAT’S NEW IN 2017? STATUTORY UPDATE By: Jonathan D. Massie, ESQ. The California legislature has been busy creating new statutes impacting Common Interest Developments. The following is a summary of four pieces of legislation that are of particular interest. 1. AB 534 (Gallagher) – Common Interest Developments: Mechanics Liens. Currently, in a condominium project, Civil Code Section 4615 prohibits mechanics liens from being filed against any other property in the condominium unless that owner has expressly consented to or requested performance of the labor or furnishing of materials or services, except in the case of emergency repairs to the condominium. This bill expands application of Section 4615 to all Common Interest Developments, not just condominium developments. AB 534 amends Civil Code Section 6658 broadening an owner’s ability to remove his or her separate interest from a lien recorded against two or more separate interests by paying to the lienholder the prorated share attributable to that owner’s unit, or recording a lien release bond in an amount equal to 125% of the sum secured by the lien. AB 534 adds Section 6660 to require any association to notice the membership of any lien filed on the common area within 60 days of service. Section 8119 is added to the Civil Code establishing the association as agent of the owners for work completed in the common areas in regard to service of notices of a claim. AB 534 was signed by the Governor on July 10, 2017 and becomes effective January 1, 2018. 2. AB 1139 (Reyes) Real Property: Transfer Fees: Notices. Federal law prohibits Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, Federal Home Loan Bank, and respective affiliates from purchasing, investing, or otherwise dealing in mortgages on properties encumbered by Private Transfer Fees (PTFs). PTFs are generally fees paid by each homebuyer, imposed by the developer, as part of a sale and usually used to offset costs such as environmental mitigation or other development costs. Existing law requires the receiver of the fee as a condition of payment to record specified information in the chain of title. AB 1139 amends Civil Code Section 1139 to provide that unless a specified exception under federal regulations applies, for PTFs created after February 8, 2011, the advisory document must contain, in at least 14-point boldface type, certain information, including that federal housing agencies are prohibited from dealing in mortgages on properties encumbered by PTFs that do not provide a direct benefit to real property encumbered, and that if a person purchases such a property, that person may have difficulty obtaining financing. This 38 | SAN DIEGO COMMUNITY INSIDER | WINTER 2017 WWW.CAI-SD.ORG WHAT’S NEW IN 2017? STATUTORY UPDATE By: Jonathan D. Massie, ESQ. The California legislature has been busy creating new statutes impacting Common Interest Developments. The following is a summary of four pieces of legislation that are of particular interest. 1. AB 534 (Gallagher) – Common Interest Developments: Mechanics Liens. Currently, in a condominium project, Civil Code Section 4615 prohibits mechanics liens from being filed against any other property in the condominium unless that owner has expressly consented to or requested performance of the labor or furnishing of materials or services, except in the case of emergency repairs to the condominium. This bill expands application of Section 4615 to all Common Interest Developments, not just condominium developments. AB 534 amends Civil Code Section 6658 broadening an owner’s ability to remove his or her separate interest from a lien recorded against two or more separate interests by paying to the lienholder the prorated share attributable to that owner’s unit, or recording a lien release bond in an amount equal to 125% of th H[HX\YBHY[P LYX[ۈ \]Z\H[B\X][ۈXHHY[X\\و[HY[[YۈH[[ۈ\XH][ ^\و\XKX[ۈ LNH\YYH][H\X\[H\X][ۈ\Y[وHۙ\܈ܚ˜\]Y[H[[ۈ\X\[Y\\XBوX\وHZ[KP L\YۙYHBݙ\܈ۈ[H L  M[XY\YX]B[X\H K N P LLH ^Y\HX[\N[ٙ\Y\΂X\˂Y\[]X]Y\[YH[[ܝYHܜܘ][ۋY\[][ۘ[[ܝYB\X][ۋY\[YH[[[\X]HY[X]\H\\[[\[܈\\HX[[[[ܝY\ۈ\Y\ŒSQQSUSUHSQTST MB[[X\YH]]H[ٙ\Y\ K˜\H[\[HY\ZYHXXYX^Y\[\YHH][\\\وH[H[\X[H\Yٙ]X\[\ۛY[[Z]Y][ۂ܈\][Y[ˈ^\[]\]Z\\HXZ]\وHYH\Hۙ][ۈو^[Y[œXܙXYYY[ܛX][ۈ[HZ[و]KP LLH[Y[][HX[ۈ LLHœݚYH][\HXYYY^\[ۈ[\Y\[Y[][ۜ\Y\܈ܙX]YY\XX\H  LKHY\ܞH[]\۝Z[[]X\ M \[XH\K\Z[[ܛX][ۋ[Y[]Y\[\[Y[Y\˜\HX]YHX[[[[ܝY\ۂ\Y\[[X\YH]ݚYBH\X[Y]X[\H[[X\Y []YH\ۈ\\\XH\K]\ۈX^H]HYX[H؝Z[[[[[ˈ\•ːRKT ԑ