Community Insider Winter 2017 - Page 39

bill was signed on July 31, 2017 by the Governor and goes into effect on January 1, 2018. 3. AB 690 (Quirk-Silva) Common Interest Developments: Managers: Conflicts of Interest. Currently, the law requires a Common Interest Development’s manager/management firm to provide disclosures of whether the prospective manager is certified, holds an active real estate license, and provide the manager/ management firm’s name and address. AB 690 amends Business and Professions Code Section 11504 to require managers/ management firms to disclose other information before entering into a management agreement. AB 690 amends Civil Code Section 5300 to require the annual budget report to include a completed Document Disclosure Form listing the costs associated with providing each document identified on the form. AB 690 modifies the form set forth in Civil Code Section 4528 used to identify charges for requesting copies of documents held by the association by modifying the form to inform a seller that he or she is not obligated to purchase each document listed on the form and may purchase some or all at the purchaser’s discretion. AB 690 adds Civil Code Section 5375.5 mandating manager/ management firms disclosure of potential conflicts of interests which are defined as referral fees or other monetary benefit obtained from a business or company providing products or services to the association, or, ownership interests or profit- sharing arrangements with service providers recommended to or used by the association. AB 690 was signed by the Governor on July 25, 2017 and will become effective on January 1, 2018. 4. AB 634 Real Property: Solar Energy Systems AB 634 is troubling legislation that expands application of the requirement to allow solar panels on roofs to not only planned unit developments but also condominium developments. The new law prohibits a CID from imposing a ban on rooftop solar energy systems on both condominiums and/or planned development residences and eliminates the requirement that 67% of the membership approve the installation as currently set forth in Civil Code Section 4600. A concerted effort was made by industry professionals and CAI to encourage Governor Brown to veto this legislation. However, on October 15, 2017, the Governor signed AB 634 into law and AB 634 becomes effective on January 1, 2018. The bill offers some protections by permitting the CID to impose requirements that each owner maintain a homeowner liability coverage policy and permits an association to impose additional reasonable requirements, including a 1 If the emergency assessment is for an expense requirement to submit a solar site ordered by a court, that may qualify as an executive session matter, under “litigation.” survey showing the placement of the solar energy system, in accordance with specific criteria Jonathan D Massie is a principal of Massie in the Code. Bottom-line, you will Berman, APC, a full- service law firm, need to contact your legal counsel specializing exclusively to review this law to ensure that as in representation of homeowners associations. of January 1, 2018, the Association is prepared to consider applications for installation of solar panels on common area roofs. MEMBERS BUILDING MEMBERSHIP PLEDGE I, _________________________________, for the benefit of CAI San Diego, PLEDGE to RECRUIT # ___________ new members in an organization-wide movement to build a bigger and better association. Email: ________________________________________________ (will be added to a Special Drawing at the 2018 Awards & Gala) Signature ______________________________ Please cut out and mail to: 3914 Murphy Canyon Road, Suite A114, San Diego, California 92123