2002 Laws
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2002 CHANGES IN THE LAW

2002 STATUTES

Airport Noise
(Civ. Code §1353). Amended to require that CC&Rs include a disclaimer if the project is in the vicinity of an airport.

Signs (Civ. Code §1353.6). Allows owners to display noncommercial signs.

U.S. Flag (Civ. Code §1353.5) Allows owners to display the U.S. flag.

Ingress/Egress (Civ. Code §1361.5) Associations cannot deny access to a unit without a court order.

Delinquent Owner Payment Plans (Civ. Code §1363.05) Boards may adjourn to executive session to meet with a delinquent owner to discuss payment plan for delinquencies. Matters discussed in executive session must be noted in the minutes of the immediately following meeting.

Secretary of State Info (Civ. Code §1363.6) Adds to the information an association is required to submit to the Secretary of State.

Collection Policies (Civ. Code §1365) Associations must distribute, within sixty days preceding the start of the association's fiscal year, a statement describing the association's polices and practices in enforcing lien rights or other legal remedies for default in payment of assessments and a summary of the association's fidelity insurance.

Collection Disclosures (Civ. Code §1365.1) Associations are required to distribute annually a notice generally disclosing owners' rights regarding collection of assessments.

Delinquencies (Civ. Code §1366) Limits associations to the language of their CC&Rs regarding when an assessment is deemed late and what annual percentage interest rate may be charged on delinquent amounts.

Lien Recordation Notice (Civ. Code §1367.1)  Requires that all community associations provide at least thirty (30) days written notice to a delinquent owner prior to recording an assessment lien. Gives owners the right to request a meeting with the board to discuss curing their delinquency through a payment plan.

Seller Document Requirements (Civ. Code §1368) Sellers are required to include the association's Articles of Incorporation in the list of documents they provide to prospective purchasers.

Marketing Restrictions (Civ. Code §1368.1) Voids rules that unreasonably restricts an owner's ability to market his/her property. Also prohibits adopting, enforcing or imposing fees in connection with the marketing of an owner's property in excess of the association's actual or direct costs.

2002 CASE LAW

Kaplan v. Fairway Oaks Homeowners Association (2002) 98 Cal.App.4th 715. Association is entitled to attorney's fees as prevailing party in election challenge.

Villa de Las Palmas Homeowners Association v. Terifaj (2002) 99 Cal.App.4th 1202. CC&R amendments recorded after a homeowner has purchased an individual unit are binding on that homeowner.

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