1994-1999 Laws
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1994-1999 CHANGES IN THE LAW

1994

Definitions of terms common to the industry were added. Civ. Code §1351

CC&Rs are binding on all members and any member by enforce. Civ. Code §1354

Parties must attempt alternative dispute resolution. Civ. Code §1354

Alternative measures for amending CC&Rs added. Civ. Code §§1355-1356

Provisions for extending the term of CC&Rs. Civ. Code §1357

Handicap modifications of units. Civ. Code §1360

Filing requirements with Secretary of State. Civ. Code. §1363.5

Disclosures re: borrowing from reserves. Amends Civ. Code §1365.5(c) and (d)

Insurance requirements to avoid tort claims against members. Civ. Code §1365.9

New language regarding applicability of Davis-Stirling Act. Civ. Code 1374

Requires disclosure of litigation in escrow. Civ. Code §1102.6

Process servers authorized entry into associations. Code Civ. Proc. §415.21

Bankruptcy Act changed to allow post-petition dues. 11 USC §523(a)(16)

Broadmoor San Clemente HOA v. Nelson. cannot prohibit operation of a residential care facility for the elderly.

City of Ladue v. Gilleo. Association cannot prohibit political signs.

Nahrstedt v. Lakeside Village Condominium Assn. Pet restrictions enforceable.

Park Place Estates HOA v. Naber. Members cannot offset their dues, must pay first and dispute afterwards.


1995

Open Meeting Act. Civ. Code §1363.05

Electronic notice of board meetings. Corp. Code §7211

Insurance disclosures. Civ. Code §1365

Repaying reserve funds. Civ. Code §1368.4

Construction defect litigation. Civ. Code §1375

Chantiles v. Lake Forest II Master HOA. Director’s right to inspect records is limited.

Liebler v. Point Loma Tennis Club. rules, fines, and suspension of privileges.


1996

Satellite Dishes. Civ. Code §1376

Telecommunications Act of 1996 re satellite dishes which invalidated much of CC §1376

“Open Meeting Act” Board must give notice of meetings. Civ. Code §1363.05

Disclosure of association insurance required. Civ. Code §1365

More restrictions on construction defect litigation. Civ. Code §1368.4 and §1375

Most disclose reserve transfers for litigation: Civ. Code §1365.5(d)

Associations must submit “statement of domestic nonprofit corporation” or face suspension of corporate status. Corp. Code §8210

Citizens for Covenant Compliance v. Anderson. rules enforcement.

Cutujian v. Benedict Hills Estates Assn. rules enforcement SOL’s and nuisance issues.

Kovich v. Paseo del Mar HOA. disclosure to prospective buyers.

Orange Grove Terrace Owners Assn. v. Bryant Properties. developer fiduciary duties.

Hillman v. Excel Management. disclosure issues.


1997

Member right to address board meetings. Civ. Code §1363.05

Assessment dispute resolution. Civ. Code §1366.3 and §1354

Liens for reimbursement assessments authorized. Civ. Code §1367(b)

Liens for fines for rules violations prohibited. Civ. Code §1367(c)

Priority for crediting payments on delinquent accounts established. Civ. Code §1367(a)

Disclosure of fees, penalties and collection procedures to delinquent owners added. Civ. Code §1367(a)

Reserve inspection requirements added. Civ. Code §1365.5

Insurance disclosures changed. Civ. Code §1365(e)

D &O immunities expanded. Civ. Code §1365.7

Day Care centers allowed to operate in associations despite any restrictions to the contrary. Health & Safety Code

Staggered terms allowed for Directors. Corp. Code §7221(b)

Blue Lagoon Community Assn. v. Gwendolyn Mitchell. amending CC&Rs

Ward v. Superior Court. Notice of noncompliance invalidated

Thies v. Law Offices of William A. Wyman. Federal Fair Debt Collection Practices may apply to associations


1998

Assns authorized to record a “Statement of Information.” Civ. Code §1363.6

Seller disclosure expanded to include construction defects. Civ. Code §1368

Association disclosures re defects expanded. Civ. Code §1375 and §1375.1

Mgmt Company disclosure requirements expanded. Civ. Code §1363.1

FCC - owners may install dishes one meter or less in exclusive-use common areas.

Restrictions against the use of residential property for daycare facilities are unenforceable under Heath & S C §1597.40(c) (formerly Heath & S C §1597.501), even if the restrictions were recorded before passage of the legislation in 1981.

Replenishment of reserve fund is a valid basis for a special assessment.

Shapiro v. Sutherland: Nuisance noise disclosures.

14859 Moorpark HOA v. VRT Corporaton: judicial partition of common interests


1999

DRE adopted 10 Cal. Code Regs § 2791.8 specifying rules and procedures governing arbitration of disputes between associations and subdividers.

FCC published more regulations governing the installation of satellite dishes.

New Civ. Code §784 defines the term “restriction” to mean a limitation on the use of real property in a deed, declaration, or other instrument.

New Code Civ. Proc §336(b) provides that in an action for violation of a restriction, a five-year statute of limitations begins at the time the person seeking to enforce the restriction discovered or, through the exercise of reasonable diligence, should have discovered, the violation.

Civ. Code §1365 amended to require annual disclosure of disposition of settlement money from construction defects.

Civ. Code §1352.5 requires board to amend CC&Rs to removed restrictive covenants based on race, color, religion, sex, familial status, marital status, disability, national origin, or ancestry.
Annual filing of corporate statements changed to every two years.
Requirement to amend documents to remove discriminatory language.
Senior housing communities required to allow adult dependent children.

Lamden v. La Jolla Shores (1999) 21 Cal.4th 249, if the Board operates in good faith, a Board's decisions cannot be questioned in court.

Palm Springs Tennis Club v. Rangel (1999) 73 Cal.App.4th 1, defamation of association not actionable unless statements relate to business.

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