California 2017-2018 Regular Session

California Assembly Bill AB690 Compare Versions

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1-Assembly Bill No. 690 CHAPTER 127 An act to amend Section 11504 of the Business and Professions Code, and to amend Sections 4528, 4530, 5300, and 5375 of, and to add Sections 5375.5 and 5376 to, the Civil Code, relating to common interest developments. [ Approved by Governor July 24, 2017. Filed with Secretary of State July 24, 2017. ] LEGISLATIVE COUNSEL'S DIGESTAB 690, Quirk-Silva. Common interest developments: managers: conflicts of interest. (1) Existing law requires that a person or firm who will act as a common interest development manager provide specified disclosures to the board of directors of the homeowners association, including whether the prospective manager is certified, holds an active real estate license, and the managers name and address.This bill would require a manager or a common interest development management firm to disclose specified information before entering into a management agreement. The bill would require a disclosure on whether the manager receives a referral fee from 3rd parties for distributing required documents and an affirmative written acknowledgment that specified documents provided to the manager are the property of the association and not the manager.(2) The Davis-Stirling Common Interest Development Act defines and regulates common interest developments. The act requires a common interest development to be managed by an association. The act requires the association to distribute an annual budget report 30 to 90 days before the end of its fiscal year. Existing law requires the annual budget report to include specified information. This bill would additionally require the annual budget report to contain specified information relating to charges for requesting copies of certain documents from the association.The act requires a prospective managing agent of a common interest development to provide a written statement to the board of the association containing specified information concerning the managing agent. The act also requires the association to provide to the owner of a separate interest, upon request, specified documents.This bill would require that the manager, common interest development management firm, or its contracted agent facilitate the delivery of the documents requested, if this responsibility is required by the management contract. The bill would modify the specified form used to identify the charges for requesting copies of documents held by the association by requiring the form to inform a seller that he or she is not required to purchase all of the documents listed on the form and may purchase some or all of the documents as desired. The bill would also require a prospective manager or prospective management firm of a common interest development when presenting a bid for services to the board to include a disclosure of any conflict of interest, as defined.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 11504 of the Business and Professions Code is amended to read:11504. On or before September 1, 2003, and annually thereafter, a person who either provides or contemplates providing the services of a common interest development manager to an association shall disclose to the board of directors of the association the following information:(a) Whether or not the common interest development manager has met the requirements of Section 11502 so he or she may be called a certified common interest development manager.(b) The name, address, and telephone number of the professional association that certified the common interest development manager, the date the manager was certified, and the status of the certification.(c) The location of his or her primary office.(d) Prior to entering into or renewing a contract with an association, the common interest development manager shall disclose to the board of directors of the association or common interest development whether the fidelity insurance of the common interest development manager or his or her employer covers the current years operating and reserve funds of the association. This requirement shall not be construed to compel an association to require a common interest development manager to obtain or maintain fidelity insurance.(e) Whether the common interest development manager possesses an active real estate license.(f) A common interest development manager or common interest development management firm shall disclose information required in Section 5375 of the Civil Code.(g) Whether or not the common interest development manager receives a referral fee or other monetary benefit from a third-party provider distributing documents pursuant to Section 5300 of the Civil Code.(h) An affirmative written acknowledgment that the disclosure provided to a member or potential member pursuant to Sections 4528 and 5300 of the Civil Code, and all documents provided thereunder, are the property of the association and not its managing agent or the agents managing firm.SEC. 2. Section 4528 of the Civil Code is amended to read:4528. The form for billing disclosures required by Section 4530 shall be in at least 10-point type and substantially the following form:CHARGES FOR DOCUMENTS PROVIDED AS REQUIRED BY SECTION 4525*The seller may, in accordance with Section 4530 of the Civil Code, provide to the prospective purchaser, at no cost, current copies of any documents specified by Section 4525 that are in the possession of the seller.A seller may request to purchase some or all of these documents, but shall not be required to purchase ALL of the documents listed on this form.Property AddressOwner of PropertyOwners Mailing Address (If known or different from property address.)Provider of the Section 4525 Items:Print Name _________ Position or Title _________ Association or AgentDate Form CompletedCheck or Complete Applicable Column or Columns BelowNot Available (N/A), Not Applicable (N/App), or Directly Provided by Seller and confirmed in writing by Seller as a current document (DP)DocumentCivil Code Section IncludedFee for DocumentArticles of Incorporation or statement that not incorporatedSection 4525(a)(1)CC&RsSection 4525(a)(1)BylawsSection 4525(a)(1)Operating RulesSection 4525(a)(1)Age restrictions, if anySection 4525(a)(2)Rental restrictions, if anySection 4525(a)(9)Annual budget report or summary, including reserve studySections 5300 and 4525(a)(3)Assessment and reserve funding disclosure summarySections 5300 and 4525(a)(4)Financial statement reviewSections 5305 and 4525(a)(3)Assessment enforcement policySections 5310 and 4525(a)(4)Insurance summarySections 5300 and 4525(a)(3)Regular assessmentSection 4525(a)(4)Special assessmentSection 4525(a)(4)Emergency assessmentSection 4525(a)(4)Other unpaid obligations of sellerSections 5675 and 4525(a)(4)Approved changes to assessmentsSections 5300 and 4525(a)(4), (8)Settlement notice regarding common area defectsSections 4525(a)(6), (7), and 6100Preliminary list of defectsSections 4525(a)(6), 6000, and 6100Notice(s) of violationSections 5855 and 4525(a)(5)Required statement of feesSection 4525Minutes of regular board meetings conducted over the previous 12 months, if requestedSection 4525(a)(10)Total fees for these documents:* The information provided by this form may not include all fees that may be imposed before the close of escrow. Additional fees that are not related to the requirements of Section 4525 shall be charged separately.SEC. 3. Section 4530 of the Civil Code is amended to read:4530. (a) (1) Upon written request, the association shall, within 10 days of the mailing or delivery of the request, provide the owner of a separate interest, or any other recipient authorized by the owner, with a copy of all of the requested documents specified in Section 4525.(2) The documents required to be made available pursuant to this section may be maintained in electronic form, and may be posted on the associations Internet Web site. Requesting parties shall have the option of receiving the documents by electronic transmission if the association maintains the documents in electronic form.(3) Delivery of the documents required by this section shall not be withheld for any reason nor subject to any condition except the payment of the fee authorized pursuant to subdivision (b).(b) (1) The association may collect a reasonable fee from the seller based upon the associations actual cost for the procurement, preparation, reproduction, and delivery of the documents requested pursuant to this section. An additional fee shall not be charged for the electronic delivery in lieu of a hard copy delivery of the documents requested.(2) Upon receipt of a written request, the association shall provide, on the form described in Section 4528, a written or electronic estimate of the fees that will be assessed for providing the requested documents prior to processing the request in paragraph (1) of subdivision (a).(3) (A) A cancellation fee for documents specified in subdivision (a) shall not be collected if either of the following applies:(i) The request was canceled in writing by the same party that placed the order and work had not yet been performed on the order.(ii) The request was canceled in writing and any work that had been performed on the order was compensated.(B) The association shall refund all fees collected pursuant to paragraph (1) if the request was canceled in writing and work had not yet been performed on the order.(C) If the request was canceled in writing, the association shall refund the share of fees collected pursuant to paragraph (1) that represents the portion of the work not performed on the order.(4) Fees for any documents required by this section shall be distinguished from, separately stated, and separately billed from, all other fees, fines, or assessments billed as part of the transfer or sales transaction.(5) Any documents not expressly required by Section 4525 to be provided to a prospective purchaser by the seller shall not be included in the document disclosure required by this section. Bundling of documents required to be provided pursuant to this section with other documents relating to the transaction is prohibited.(6) A seller shall provide to the prospective purchaser, at no cost, current copies of any documents specified by Section 4525 that are in the possession of the seller.(7) The fee for each document provided to the seller for the purpose of transmission to the prospective purchaser shall be individually itemized in the statement required to be provided by the seller to the prospective purchaser.(8) It is the responsibility of the seller to compensate the association, person, or entity that provides the documents required to be provided by Section 4525 to the prospective purchaser.(c) An association may contract with any person or entity to facilitate compliance with this section on behalf of the association.(d) The association shall also provide a recipient authorized by the owner of a separate interest with a copy of the completed form specified in Section 4528 at the time the required documents are delivered. A seller may request to purchase some or all of these documents, but shall not be required to purchase all of the documents listed on the form specified in Section 4528.SEC. 4. Section 5300 of the Civil Code is amended to read:5300. (a) Notwithstanding a contrary provision in the governing documents, an association shall distribute an annual budget report 30 to 90 days before the end of its fiscal year.(b) Unless the governing documents impose more stringent standards, the annual budget report shall include all of the following information:(1) A pro forma operating budget, showing the estimated revenue and expenses on an accrual basis.(2) A summary of the associations reserves, prepared pursuant to Section 5565.(3) A summary of the reserve funding plan adopted by the board, as specified in paragraph (5) of subdivision (b) of Section 5550. The summary shall include notice to members that the full reserve study plan is available upon request, and the association shall provide the full reserve plan to any member upon request.(4) A statement as to whether the board has determined to defer or not undertake repairs or replacement of any major component with a remaining life of 30 years or less, including a justification for the deferral or decision not to undertake the repairs or replacement.(5) A statement as to whether the board, consistent with the reserve funding plan adopted pursuant to Section 5560, has determined or anticipates that the levy of one or more special assessments will be required to repair, replace, or restore any major component or to provide adequate reserves therefor. If so, the statement shall also set out the estimated amount, commencement date, and duration of the assessment.(6) A statement as to the mechanism or mechanisms by which the board will fund reserves to repair or replace major components, including assessments, borrowing, use of other assets, deferral of selected replacements or repairs, or alternative mechanisms.(7) A general statement addressing the procedures used for the calculation and establishment of those reserves to defray the future repair, replacement, or additions to those major components that the association is obligated to maintain. The statement shall include, but need not be limited to, reserve calculations made using the formula described in paragraph (4) of subdivision (b) of Section 5570, and may not assume a rate of return on cash reserves in excess of 2 percent above the discount rate published by the Federal Reserve Bank of San Francisco at the time the calculation was made.(8) A statement as to whether the association has any outstanding loans with an original term of more than one year, including the payee, interest rate, amount outstanding, annual payment, and when the loan is scheduled to be retired.(9) A summary of the associations property, general liability, earthquake, flood, and fidelity insurance policies. For each policy, the summary shall include the name of the insurer, the type of insurance, the policy limit, and the amount of the deductible, if any. To the extent that any of the required information is specified in the insurance policy declaration page, the association may meet its obligation to disclose that information by making copies of that page and distributing it with the annual budget report. The summary distributed pursuant to this paragraph shall contain, in at least 10-point boldface type, the following statement:This summary of the associations policies of insurance provides only certain information, as required by Section 5300 of the Civil Code, and should not be considered a substitute for the complete policy terms and conditions contained in the actual policies of insurance. Any association member may, upon request and provision of reasonable notice, review the associations insurance policies and, upon request and payment of reasonable duplication charges, obtain copies of those policies. Although the association maintains the policies of insurance specified in this summary, the associations policies of insurance may not cover your property, including personal property or real property improvements to or around your dwelling, or personal injuries or other losses that occur within or around your dwelling. Even if a loss is covered, you may nevertheless be responsible for paying all or a portion of any deductible that applies. Association members should consult with their individual insurance broker or agent for appropriate additional coverage.(10) When the common interest development is a condominium project, a statement describing the status of the common interest development as a Federal Housing Administration (FHA)-approved condominium project pursuant to FHA guidelines, including whether the common interest development is an FHA-approved condominium project. The statement shall be in at least 10-point font on a separate piece of paper and in the following form:Certification by the Federal Housing Administration may provide benefits to members of an association, including an improvement in an owners ability to refinance a mortgage or obtain secondary financing and an increase in the pool of potential buyers of the separate interest.This common interest development [is/is not (circle one)] a condominium project. The association of this common interest development [is/is not (circle one)] certified by the Federal Housing Administration.(11) When the common interest development is a condominium project, a statement describing the status of the common interest development as a federal Department of Veterans Affairs (VA)-approved condominium project pursuant to VA guidelines, including whether the common interest development is a VA-approved condominium project. The statement shall be in at least 10-point font on a separate piece of paper and in the following form:Certification by the federal Department of Veterans Affairs may provide benefits to members of an association, including an improvement in an owners ability to refinance a mortgage or obtain secondary financing and an increase in the pool of potential buyers of the separate interest.This common interest development [is/is not (circle one)] a condominium project. The association of this common interest development [is/is not (circle one)] certified by the federal Department of Veterans Affairs.(12) A copy of the completed Charges For Documents Provided disclosure identified in Section 4528. For purposes of this section, completed means that the Fee for Document section of the form individually identifies the costs associated with providing each document listed on the form.(c) The annual budget report shall be made available to the members pursuant to Section 5320.(d) The summary of the associations reserves disclosed pursuant to paragraph (2) of subdivision (b) shall not be admissible in evidence to show improper financial management of an association, provided that other relevant and competent evidence of the financial condition of the association is not made inadmissible by this provision.(e) The Assessment and Reserve Funding Disclosure Summary form, prepared pursuant to Section 5570, shall accompany each annual budget report or summary of the annual budget report that is delivered pursuant to this article.SEC. 5. Section 5375 of the Civil Code is amended to read:5375. A prospective managing agent of a common interest development shall provide a written statement to the board as soon as practicable, but in no event more than 90 days, before entering into a management agreement which shall contain all of the following information concerning the managing agent:(a) The names and business addresses of the owners or general partners of the managing agent. If the managing agent is a corporation, the written statement shall include the names and business addresses of the directors and officers and shareholders holding greater than 10 percent of the shares of the corporation.(b) Whether or not any relevant licenses such as architectural design, construction, engineering, real estate, or accounting have been issued by this state and are currently held by the persons specified in subdivision (a). If a license is currently held by any of those persons, the statement shall contain the following information:(1) What license is held.(2) The dates the license is valid.(3) The name of the licensee appearing on that license.(c) Whether or not any relevant professional certifications or designations such as architectural design, construction, engineering, real property management, or accounting are currently held by any of the persons specified in subdivision (a), including, but not limited to, a professional common interest development manager. If any certification or designation is held, the statement shall include the following information:(1) What the certification or designation is and what entity issued it.(2) The dates the certification or designation is valid.(3) The names in which the certification or designation is held.(d) Disclose any business or company in which the common interest development manager or common interest development management firm has any ownership interests, profit-sharing arrangements, or other monetary incentives provided to the management firm or managing agent.(e) Whether or not the common interest development manager or common interest development management firm receives a referral fee or other monetary benefit from a third-party provider distributing documents pursuant to Sections 4528 and 4530.SEC. 6. Section 5375.5 is added to the Civil Code, to read:5375.5. A common interest development manager or common interest development management firm shall disclose, in writing, any potential conflict of interest when presenting a bid for service to an associations board of directors. Conflict of interest, for purposes of this section, means: (a) Any referral fee or other monetary benefit that could be derived from a business or company providing products or services to the association.(b) Any ownership interests or profit-sharing arrangements with service providers recommended to, or used by, the association.SEC. 7. Section 5376 is added to the Civil Code, to read:5376. The common interest development manager, common interest development management firm, or its contracted third-party agent shall facilitate the delivery of disclosures required pursuant to paragraph (1) of subdivision (a), paragraph (2) of subdivision (b), and subdivision (d), of Section 4530 if the common interest development manager, or common interest development management firm, is contractually responsible for delivering those documents.
1+Enrolled July 12, 2017 Passed IN Senate July 10, 2017 Passed IN Assembly May 15, 2017 Amended IN Assembly March 28, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 690Introduced by Assembly Member Quirk-SilvaFebruary 15, 2017 An act to amend Section 11504 of the Business and Professions Code, and to amend Sections 4528, 4530, 5300, and 5375 of, and to add Sections 5375.5 and 5376 to, the Civil Code, relating to common interest developments. LEGISLATIVE COUNSEL'S DIGESTAB 690, Quirk-Silva. Common interest developments: managers: conflicts of interest. (1) Existing law requires that a person or firm who will act as a common interest development manager provide specified disclosures to the board of directors of the homeowners association, including whether the prospective manager is certified, holds an active real estate license, and the managers name and address.This bill would require a manager or a common interest development management firm to disclose specified information before entering into a management agreement. The bill would require a disclosure on whether the manager receives a referral fee from 3rd parties for distributing required documents and an affirmative written acknowledgment that specified documents provided to the manager are the property of the association and not the manager.(2) The Davis-Stirling Common Interest Development Act defines and regulates common interest developments. The act requires a common interest development to be managed by an association. The act requires the association to distribute an annual budget report 30 to 90 days before the end of its fiscal year. Existing law requires the annual budget report to include specified information. This bill would additionally require the annual budget report to contain specified information relating to charges for requesting copies of certain documents from the association.The act requires a prospective managing agent of a common interest development to provide a written statement to the board of the association containing specified information concerning the managing agent. The act also requires the association to provide to the owner of a separate interest, upon request, specified documents.This bill would require that the manager, common interest development management firm, or its contracted agent facilitate the delivery of the documents requested, if this responsibility is required by the management contract. The bill would modify the specified form used to identify the charges for requesting copies of documents held by the association by requiring the form to inform a seller that he or she is not required to purchase all of the documents listed on the form and may purchase some or all of the documents as desired. The bill would also require a prospective manager or prospective management firm of a common interest development when presenting a bid for services to the board to include a disclosure of any conflict of interest, as defined.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 11504 of the Business and Professions Code is amended to read:11504. On or before September 1, 2003, and annually thereafter, a person who either provides or contemplates providing the services of a common interest development manager to an association shall disclose to the board of directors of the association the following information:(a) Whether or not the common interest development manager has met the requirements of Section 11502 so he or she may be called a certified common interest development manager.(b) The name, address, and telephone number of the professional association that certified the common interest development manager, the date the manager was certified, and the status of the certification.(c) The location of his or her primary office.(d) Prior to entering into or renewing a contract with an association, the common interest development manager shall disclose to the board of directors of the association or common interest development whether the fidelity insurance of the common interest development manager or his or her employer covers the current years operating and reserve funds of the association. This requirement shall not be construed to compel an association to require a common interest development manager to obtain or maintain fidelity insurance.(e) Whether the common interest development manager possesses an active real estate license.(f) A common interest development manager or common interest development management firm shall disclose information required in Section 5375 of the Civil Code.(g) Whether or not the common interest development manager receives a referral fee or other monetary benefit from a third-party provider distributing documents pursuant to Section 5300 of the Civil Code.(h) An affirmative written acknowledgment that the disclosure provided to a member or potential member pursuant to Sections 4528 and 5300 of the Civil Code, and all documents provided thereunder, are the property of the association and not its managing agent or the agents managing firm.SEC. 2. Section 4528 of the Civil Code is amended to read:4528. The form for billing disclosures required by Section 4530 shall be in at least 10-point type and substantially the following form:CHARGES FOR DOCUMENTS PROVIDED AS REQUIRED BY SECTION 4525*The seller may, in accordance with Section 4530 of the Civil Code, provide to the prospective purchaser, at no cost, current copies of any documents specified by Section 4525 that are in the possession of the seller.A seller may request to purchase some or all of these documents, but shall not be required to purchase ALL of the documents listed on this form.Property AddressOwner of PropertyOwners Mailing Address (If known or different from property address.)Provider of the Section 4525 Items:Print Name _________ Position or Title _________ Association or AgentDate Form CompletedCheck or Complete Applicable Column or Columns BelowNot Available (N/A), Not Applicable (N/App), or Directly Provided by Seller and confirmed in writing by Seller as a current document (DP)DocumentCivil Code Section IncludedFee for DocumentArticles of Incorporation or statement that not incorporatedSection 4525(a)(1)CC&RsSection 4525(a)(1)BylawsSection 4525(a)(1)Operating RulesSection 4525(a)(1)Age restrictions, if anySection 4525(a)(2)Rental restrictions, if anySection 4525(a)(9)Annual budget report or summary, including reserve studySections 5300 and 4525(a)(3)Assessment and reserve funding disclosure summarySections 5300 and 4525(a)(4)Financial statement reviewSections 5305 and 4525(a)(3)Assessment enforcement policySections 5310 and 4525(a)(4)Insurance summarySections 5300 and 4525(a)(3)Regular assessmentSection 4525(a)(4)Special assessmentSection 4525(a)(4)Emergency assessmentSection 4525(a)(4)Other unpaid obligations of sellerSections 5675 and 4525(a)(4)Approved changes to assessmentsSections 5300 and 4525(a)(4), (8)Settlement notice regarding common area defectsSections 4525(a)(6), (7), and 6100Preliminary list of defectsSections 4525(a)(6), 6000, and 6100Notice(s) of violationSections 5855 and 4525(a)(5)Required statement of feesSection 4525Minutes of regular board meetings conducted over the previous 12 months, if requestedSection 4525(a)(10)Total fees for these documents:* The information provided by this form may not include all fees that may be imposed before the close of escrow. Additional fees that are not related to the requirements of Section 4525 shall be charged separately.SEC. 3. Section 4530 of the Civil Code is amended to read:4530. (a) (1) Upon written request, the association shall, within 10 days of the mailing or delivery of the request, provide the owner of a separate interest, or any other recipient authorized by the owner, with a copy of all of the requested documents specified in Section 4525.(2) The documents required to be made available pursuant to this section may be maintained in electronic form, and may be posted on the associations Internet Web site. Requesting parties shall have the option of receiving the documents by electronic transmission if the association maintains the documents in electronic form.(3) Delivery of the documents required by this section shall not be withheld for any reason nor subject to any condition except the payment of the fee authorized pursuant to subdivision (b).(b) (1) The association may collect a reasonable fee from the seller based upon the associations actual cost for the procurement, preparation, reproduction, and delivery of the documents requested pursuant to this section. An additional fee shall not be charged for the electronic delivery in lieu of a hard copy delivery of the documents requested.(2) Upon receipt of a written request, the association shall provide, on the form described in Section 4528, a written or electronic estimate of the fees that will be assessed for providing the requested documents prior to processing the request in paragraph (1) of subdivision (a).(3) (A) A cancellation fee for documents specified in subdivision (a) shall not be collected if either of the following applies:(i) The request was canceled in writing by the same party that placed the order and work had not yet been performed on the order.(ii) The request was canceled in writing and any work that had been performed on the order was compensated.(B) The association shall refund all fees collected pursuant to paragraph (1) if the request was canceled in writing and work had not yet been performed on the order.(C) If the request was canceled in writing, the association shall refund the share of fees collected pursuant to paragraph (1) that represents the portion of the work not performed on the order.(4) Fees for any documents required by this section shall be distinguished from, separately stated, and separately billed from, all other fees, fines, or assessments billed as part of the transfer or sales transaction.(5) Any documents not expressly required by Section 4525 to be provided to a prospective purchaser by the seller shall not be included in the document disclosure required by this section. Bundling of documents required to be provided pursuant to this section with other documents relating to the transaction is prohibited.(6) A seller shall provide to the prospective purchaser, at no cost, current copies of any documents specified by Section 4525 that are in the possession of the seller.(7) The fee for each document provided to the seller for the purpose of transmission to the prospective purchaser shall be individually itemized in the statement required to be provided by the seller to the prospective purchaser.(8) It is the responsibility of the seller to compensate the association, person, or entity that provides the documents required to be provided by Section 4525 to the prospective purchaser.(c) An association may contract with any person or entity to facilitate compliance with this section on behalf of the association.(d) The association shall also provide a recipient authorized by the owner of a separate interest with a copy of the completed form specified in Section 4528 at the time the required documents are delivered. A seller may request to purchase some or all of these documents, but shall not be required to purchase all of the documents listed on the form specified in Section 4528.SEC. 4. Section 5300 of the Civil Code is amended to read:5300. (a) Notwithstanding a contrary provision in the governing documents, an association shall distribute an annual budget report 30 to 90 days before the end of its fiscal year.(b) Unless the governing documents impose more stringent standards, the annual budget report shall include all of the following information:(1) A pro forma operating budget, showing the estimated revenue and expenses on an accrual basis.(2) A summary of the associations reserves, prepared pursuant to Section 5565.(3) A summary of the reserve funding plan adopted by the board, as specified in paragraph (5) of subdivision (b) of Section 5550. The summary shall include notice to members that the full reserve study plan is available upon request, and the association shall provide the full reserve plan to any member upon request.(4) A statement as to whether the board has determined to defer or not undertake repairs or replacement of any major component with a remaining life of 30 years or less, including a justification for the deferral or decision not to undertake the repairs or replacement.(5) A statement as to whether the board, consistent with the reserve funding plan adopted pursuant to Section 5560, has determined or anticipates that the levy of one or more special assessments will be required to repair, replace, or restore any major component or to provide adequate reserves therefor. If so, the statement shall also set out the estimated amount, commencement date, and duration of the assessment.(6) A statement as to the mechanism or mechanisms by which the board will fund reserves to repair or replace major components, including assessments, borrowing, use of other assets, deferral of selected replacements or repairs, or alternative mechanisms.(7) A general statement addressing the procedures used for the calculation and establishment of those reserves to defray the future repair, replacement, or additions to those major components that the association is obligated to maintain. The statement shall include, but need not be limited to, reserve calculations made using the formula described in paragraph (4) of subdivision (b) of Section 5570, and may not assume a rate of return on cash reserves in excess of 2 percent above the discount rate published by the Federal Reserve Bank of San Francisco at the time the calculation was made.(8) A statement as to whether the association has any outstanding loans with an original term of more than one year, including the payee, interest rate, amount outstanding, annual payment, and when the loan is scheduled to be retired.(9) A summary of the associations property, general liability, earthquake, flood, and fidelity insurance policies. For each policy, the summary shall include the name of the insurer, the type of insurance, the policy limit, and the amount of the deductible, if any. To the extent that any of the required information is specified in the insurance policy declaration page, the association may meet its obligation to disclose that information by making copies of that page and distributing it with the annual budget report. The summary distributed pursuant to this paragraph shall contain, in at least 10-point boldface type, the following statement:This summary of the associations policies of insurance provides only certain information, as required by Section 5300 of the Civil Code, and should not be considered a substitute for the complete policy terms and conditions contained in the actual policies of insurance. Any association member may, upon request and provision of reasonable notice, review the associations insurance policies and, upon request and payment of reasonable duplication charges, obtain copies of those policies. Although the association maintains the policies of insurance specified in this summary, the associations policies of insurance may not cover your property, including personal property or real property improvements to or around your dwelling, or personal injuries or other losses that occur within or around your dwelling. Even if a loss is covered, you may nevertheless be responsible for paying all or a portion of any deductible that applies. Association members should consult with their individual insurance broker or agent for appropriate additional coverage.(10) When the common interest development is a condominium project, a statement describing the status of the common interest development as a Federal Housing Administration (FHA)-approved condominium project pursuant to FHA guidelines, including whether the common interest development is an FHA-approved condominium project. The statement shall be in at least 10-point font on a separate piece of paper and in the following form:Certification by the Federal Housing Administration may provide benefits to members of an association, including an improvement in an owners ability to refinance a mortgage or obtain secondary financing and an increase in the pool of potential buyers of the separate interest.This common interest development [is/is not (circle one)] a condominium project. The association of this common interest development [is/is not (circle one)] certified by the Federal Housing Administration.(11) When the common interest development is a condominium project, a statement describing the status of the common interest development as a federal Department of Veterans Affairs (VA)-approved condominium project pursuant to VA guidelines, including whether the common interest development is a VA-approved condominium project. The statement shall be in at least 10-point font on a separate piece of paper and in the following form:Certification by the federal Department of Veterans Affairs may provide benefits to members of an association, including an improvement in an owners ability to refinance a mortgage or obtain secondary financing and an increase in the pool of potential buyers of the separate interest.This common interest development [is/is not (circle one)] a condominium project. The association of this common interest development [is/is not (circle one)] certified by the federal Department of Veterans Affairs.(12) A copy of the completed Charges For Documents Provided disclosure identified in Section 4528. For purposes of this section, completed means that the Fee for Document section of the form individually identifies the costs associated with providing each document listed on the form.(c) The annual budget report shall be made available to the members pursuant to Section 5320.(d) The summary of the associations reserves disclosed pursuant to paragraph (2) of subdivision (b) shall not be admissible in evidence to show improper financial management of an association, provided that other relevant and competent evidence of the financial condition of the association is not made inadmissible by this provision.(e) The Assessment and Reserve Funding Disclosure Summary form, prepared pursuant to Section 5570, shall accompany each annual budget report or summary of the annual budget report that is delivered pursuant to this article.SEC. 5. Section 5375 of the Civil Code is amended to read:5375. A prospective managing agent of a common interest development shall provide a written statement to the board as soon as practicable, but in no event more than 90 days, before entering into a management agreement which shall contain all of the following information concerning the managing agent:(a) The names and business addresses of the owners or general partners of the managing agent. If the managing agent is a corporation, the written statement shall include the names and business addresses of the directors and officers and shareholders holding greater than 10 percent of the shares of the corporation.(b) Whether or not any relevant licenses such as architectural design, construction, engineering, real estate, or accounting have been issued by this state and are currently held by the persons specified in subdivision (a). If a license is currently held by any of those persons, the statement shall contain the following information:(1) What license is held.(2) The dates the license is valid.(3) The name of the licensee appearing on that license.(c) Whether or not any relevant professional certifications or designations such as architectural design, construction, engineering, real property management, or accounting are currently held by any of the persons specified in subdivision (a), including, but not limited to, a professional common interest development manager. If any certification or designation is held, the statement shall include the following information:(1) What the certification or designation is and what entity issued it.(2) The dates the certification or designation is valid.(3) The names in which the certification or designation is held.(d) Disclose any business or company in which the common interest development manager or common interest development management firm has any ownership interests, profit-sharing arrangements, or other monetary incentives provided to the management firm or managing agent.(e) Whether or not the common interest development manager or common interest development management firm receives a referral fee or other monetary benefit from a third-party provider distributing documents pursuant to Sections 4528 and 4530.SEC. 6. Section 5375.5 is added to the Civil Code, to read:5375.5. A common interest development manager or common interest development management firm shall disclose, in writing, any potential conflict of interest when presenting a bid for service to an associations board of directors. Conflict of interest, for purposes of this section, means: (a) Any referral fee or other monetary benefit that could be derived from a business or company providing products or services to the association.(b) Any ownership interests or profit-sharing arrangements with service providers recommended to, or used by, the association.SEC. 7. Section 5376 is added to the Civil Code, to read:5376. The common interest development manager, common interest development management firm, or its contracted third-party agent shall facilitate the delivery of disclosures required pursuant to paragraph (1) of subdivision (a), paragraph (2) of subdivision (b), and subdivision (d), of Section 4530 if the common interest development manager, or common interest development management firm, is contractually responsible for delivering those documents.
22
3- Assembly Bill No. 690 CHAPTER 127 An act to amend Section 11504 of the Business and Professions Code, and to amend Sections 4528, 4530, 5300, and 5375 of, and to add Sections 5375.5 and 5376 to, the Civil Code, relating to common interest developments. [ Approved by Governor July 24, 2017. Filed with Secretary of State July 24, 2017. ] LEGISLATIVE COUNSEL'S DIGESTAB 690, Quirk-Silva. Common interest developments: managers: conflicts of interest. (1) Existing law requires that a person or firm who will act as a common interest development manager provide specified disclosures to the board of directors of the homeowners association, including whether the prospective manager is certified, holds an active real estate license, and the managers name and address.This bill would require a manager or a common interest development management firm to disclose specified information before entering into a management agreement. The bill would require a disclosure on whether the manager receives a referral fee from 3rd parties for distributing required documents and an affirmative written acknowledgment that specified documents provided to the manager are the property of the association and not the manager.(2) The Davis-Stirling Common Interest Development Act defines and regulates common interest developments. The act requires a common interest development to be managed by an association. The act requires the association to distribute an annual budget report 30 to 90 days before the end of its fiscal year. Existing law requires the annual budget report to include specified information. This bill would additionally require the annual budget report to contain specified information relating to charges for requesting copies of certain documents from the association.The act requires a prospective managing agent of a common interest development to provide a written statement to the board of the association containing specified information concerning the managing agent. The act also requires the association to provide to the owner of a separate interest, upon request, specified documents.This bill would require that the manager, common interest development management firm, or its contracted agent facilitate the delivery of the documents requested, if this responsibility is required by the management contract. The bill would modify the specified form used to identify the charges for requesting copies of documents held by the association by requiring the form to inform a seller that he or she is not required to purchase all of the documents listed on the form and may purchase some or all of the documents as desired. The bill would also require a prospective manager or prospective management firm of a common interest development when presenting a bid for services to the board to include a disclosure of any conflict of interest, as defined.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
3+ Enrolled July 12, 2017 Passed IN Senate July 10, 2017 Passed IN Assembly May 15, 2017 Amended IN Assembly March 28, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 690Introduced by Assembly Member Quirk-SilvaFebruary 15, 2017 An act to amend Section 11504 of the Business and Professions Code, and to amend Sections 4528, 4530, 5300, and 5375 of, and to add Sections 5375.5 and 5376 to, the Civil Code, relating to common interest developments. LEGISLATIVE COUNSEL'S DIGESTAB 690, Quirk-Silva. Common interest developments: managers: conflicts of interest. (1) Existing law requires that a person or firm who will act as a common interest development manager provide specified disclosures to the board of directors of the homeowners association, including whether the prospective manager is certified, holds an active real estate license, and the managers name and address.This bill would require a manager or a common interest development management firm to disclose specified information before entering into a management agreement. The bill would require a disclosure on whether the manager receives a referral fee from 3rd parties for distributing required documents and an affirmative written acknowledgment that specified documents provided to the manager are the property of the association and not the manager.(2) The Davis-Stirling Common Interest Development Act defines and regulates common interest developments. The act requires a common interest development to be managed by an association. The act requires the association to distribute an annual budget report 30 to 90 days before the end of its fiscal year. Existing law requires the annual budget report to include specified information. This bill would additionally require the annual budget report to contain specified information relating to charges for requesting copies of certain documents from the association.The act requires a prospective managing agent of a common interest development to provide a written statement to the board of the association containing specified information concerning the managing agent. The act also requires the association to provide to the owner of a separate interest, upon request, specified documents.This bill would require that the manager, common interest development management firm, or its contracted agent facilitate the delivery of the documents requested, if this responsibility is required by the management contract. The bill would modify the specified form used to identify the charges for requesting copies of documents held by the association by requiring the form to inform a seller that he or she is not required to purchase all of the documents listed on the form and may purchase some or all of the documents as desired. The bill would also require a prospective manager or prospective management firm of a common interest development when presenting a bid for services to the board to include a disclosure of any conflict of interest, as defined.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
4+
5+ Enrolled July 12, 2017 Passed IN Senate July 10, 2017 Passed IN Assembly May 15, 2017 Amended IN Assembly March 28, 2017
6+
7+Enrolled July 12, 2017
8+Passed IN Senate July 10, 2017
9+Passed IN Assembly May 15, 2017
10+Amended IN Assembly March 28, 2017
11+
12+ CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
413
514 Assembly Bill No. 690
6-CHAPTER 127
15+
16+Introduced by Assembly Member Quirk-SilvaFebruary 15, 2017
17+
18+Introduced by Assembly Member Quirk-Silva
19+February 15, 2017
720
821 An act to amend Section 11504 of the Business and Professions Code, and to amend Sections 4528, 4530, 5300, and 5375 of, and to add Sections 5375.5 and 5376 to, the Civil Code, relating to common interest developments.
9-
10- [ Approved by Governor July 24, 2017. Filed with Secretary of State July 24, 2017. ]
1122
1223 LEGISLATIVE COUNSEL'S DIGEST
1324
1425 ## LEGISLATIVE COUNSEL'S DIGEST
1526
1627 AB 690, Quirk-Silva. Common interest developments: managers: conflicts of interest.
1728
1829 (1) Existing law requires that a person or firm who will act as a common interest development manager provide specified disclosures to the board of directors of the homeowners association, including whether the prospective manager is certified, holds an active real estate license, and the managers name and address.This bill would require a manager or a common interest development management firm to disclose specified information before entering into a management agreement. The bill would require a disclosure on whether the manager receives a referral fee from 3rd parties for distributing required documents and an affirmative written acknowledgment that specified documents provided to the manager are the property of the association and not the manager.(2) The Davis-Stirling Common Interest Development Act defines and regulates common interest developments. The act requires a common interest development to be managed by an association. The act requires the association to distribute an annual budget report 30 to 90 days before the end of its fiscal year. Existing law requires the annual budget report to include specified information. This bill would additionally require the annual budget report to contain specified information relating to charges for requesting copies of certain documents from the association.The act requires a prospective managing agent of a common interest development to provide a written statement to the board of the association containing specified information concerning the managing agent. The act also requires the association to provide to the owner of a separate interest, upon request, specified documents.This bill would require that the manager, common interest development management firm, or its contracted agent facilitate the delivery of the documents requested, if this responsibility is required by the management contract. The bill would modify the specified form used to identify the charges for requesting copies of documents held by the association by requiring the form to inform a seller that he or she is not required to purchase all of the documents listed on the form and may purchase some or all of the documents as desired. The bill would also require a prospective manager or prospective management firm of a common interest development when presenting a bid for services to the board to include a disclosure of any conflict of interest, as defined.
1930
2031 (1) Existing law requires that a person or firm who will act as a common interest development manager provide specified disclosures to the board of directors of the homeowners association, including whether the prospective manager is certified, holds an active real estate license, and the managers name and address.
2132
2233 This bill would require a manager or a common interest development management firm to disclose specified information before entering into a management agreement. The bill would require a disclosure on whether the manager receives a referral fee from 3rd parties for distributing required documents and an affirmative written acknowledgment that specified documents provided to the manager are the property of the association and not the manager.
2334
2435 (2) The Davis-Stirling Common Interest Development Act defines and regulates common interest developments. The act requires a common interest development to be managed by an association. The act requires the association to distribute an annual budget report 30 to 90 days before the end of its fiscal year. Existing law requires the annual budget report to include specified information.
2536
2637 This bill would additionally require the annual budget report to contain specified information relating to charges for requesting copies of certain documents from the association.
2738
2839 The act requires a prospective managing agent of a common interest development to provide a written statement to the board of the association containing specified information concerning the managing agent. The act also requires the association to provide to the owner of a separate interest, upon request, specified documents.
2940
3041 This bill would require that the manager, common interest development management firm, or its contracted agent facilitate the delivery of the documents requested, if this responsibility is required by the management contract. The bill would modify the specified form used to identify the charges for requesting copies of documents held by the association by requiring the form to inform a seller that he or she is not required to purchase all of the documents listed on the form and may purchase some or all of the documents as desired. The bill would also require a prospective manager or prospective management firm of a common interest development when presenting a bid for services to the board to include a disclosure of any conflict of interest, as defined.
3142
3243 ## Digest Key
3344
3445 ## Bill Text
3546
3647 The people of the State of California do enact as follows:SECTION 1. Section 11504 of the Business and Professions Code is amended to read:11504. On or before September 1, 2003, and annually thereafter, a person who either provides or contemplates providing the services of a common interest development manager to an association shall disclose to the board of directors of the association the following information:(a) Whether or not the common interest development manager has met the requirements of Section 11502 so he or she may be called a certified common interest development manager.(b) The name, address, and telephone number of the professional association that certified the common interest development manager, the date the manager was certified, and the status of the certification.(c) The location of his or her primary office.(d) Prior to entering into or renewing a contract with an association, the common interest development manager shall disclose to the board of directors of the association or common interest development whether the fidelity insurance of the common interest development manager or his or her employer covers the current years operating and reserve funds of the association. This requirement shall not be construed to compel an association to require a common interest development manager to obtain or maintain fidelity insurance.(e) Whether the common interest development manager possesses an active real estate license.(f) A common interest development manager or common interest development management firm shall disclose information required in Section 5375 of the Civil Code.(g) Whether or not the common interest development manager receives a referral fee or other monetary benefit from a third-party provider distributing documents pursuant to Section 5300 of the Civil Code.(h) An affirmative written acknowledgment that the disclosure provided to a member or potential member pursuant to Sections 4528 and 5300 of the Civil Code, and all documents provided thereunder, are the property of the association and not its managing agent or the agents managing firm.SEC. 2. Section 4528 of the Civil Code is amended to read:4528. The form for billing disclosures required by Section 4530 shall be in at least 10-point type and substantially the following form:CHARGES FOR DOCUMENTS PROVIDED AS REQUIRED BY SECTION 4525*The seller may, in accordance with Section 4530 of the Civil Code, provide to the prospective purchaser, at no cost, current copies of any documents specified by Section 4525 that are in the possession of the seller.A seller may request to purchase some or all of these documents, but shall not be required to purchase ALL of the documents listed on this form.Property AddressOwner of PropertyOwners Mailing Address (If known or different from property address.)Provider of the Section 4525 Items:Print Name _________ Position or Title _________ Association or AgentDate Form CompletedCheck or Complete Applicable Column or Columns BelowNot Available (N/A), Not Applicable (N/App), or Directly Provided by Seller and confirmed in writing by Seller as a current document (DP)DocumentCivil Code Section IncludedFee for DocumentArticles of Incorporation or statement that not incorporatedSection 4525(a)(1)CC&RsSection 4525(a)(1)BylawsSection 4525(a)(1)Operating RulesSection 4525(a)(1)Age restrictions, if anySection 4525(a)(2)Rental restrictions, if anySection 4525(a)(9)Annual budget report or summary, including reserve studySections 5300 and 4525(a)(3)Assessment and reserve funding disclosure summarySections 5300 and 4525(a)(4)Financial statement reviewSections 5305 and 4525(a)(3)Assessment enforcement policySections 5310 and 4525(a)(4)Insurance summarySections 5300 and 4525(a)(3)Regular assessmentSection 4525(a)(4)Special assessmentSection 4525(a)(4)Emergency assessmentSection 4525(a)(4)Other unpaid obligations of sellerSections 5675 and 4525(a)(4)Approved changes to assessmentsSections 5300 and 4525(a)(4), (8)Settlement notice regarding common area defectsSections 4525(a)(6), (7), and 6100Preliminary list of defectsSections 4525(a)(6), 6000, and 6100Notice(s) of violationSections 5855 and 4525(a)(5)Required statement of feesSection 4525Minutes of regular board meetings conducted over the previous 12 months, if requestedSection 4525(a)(10)Total fees for these documents:* The information provided by this form may not include all fees that may be imposed before the close of escrow. Additional fees that are not related to the requirements of Section 4525 shall be charged separately.SEC. 3. Section 4530 of the Civil Code is amended to read:4530. (a) (1) Upon written request, the association shall, within 10 days of the mailing or delivery of the request, provide the owner of a separate interest, or any other recipient authorized by the owner, with a copy of all of the requested documents specified in Section 4525.(2) The documents required to be made available pursuant to this section may be maintained in electronic form, and may be posted on the associations Internet Web site. Requesting parties shall have the option of receiving the documents by electronic transmission if the association maintains the documents in electronic form.(3) Delivery of the documents required by this section shall not be withheld for any reason nor subject to any condition except the payment of the fee authorized pursuant to subdivision (b).(b) (1) The association may collect a reasonable fee from the seller based upon the associations actual cost for the procurement, preparation, reproduction, and delivery of the documents requested pursuant to this section. An additional fee shall not be charged for the electronic delivery in lieu of a hard copy delivery of the documents requested.(2) Upon receipt of a written request, the association shall provide, on the form described in Section 4528, a written or electronic estimate of the fees that will be assessed for providing the requested documents prior to processing the request in paragraph (1) of subdivision (a).(3) (A) A cancellation fee for documents specified in subdivision (a) shall not be collected if either of the following applies:(i) The request was canceled in writing by the same party that placed the order and work had not yet been performed on the order.(ii) The request was canceled in writing and any work that had been performed on the order was compensated.(B) The association shall refund all fees collected pursuant to paragraph (1) if the request was canceled in writing and work had not yet been performed on the order.(C) If the request was canceled in writing, the association shall refund the share of fees collected pursuant to paragraph (1) that represents the portion of the work not performed on the order.(4) Fees for any documents required by this section shall be distinguished from, separately stated, and separately billed from, all other fees, fines, or assessments billed as part of the transfer or sales transaction.(5) Any documents not expressly required by Section 4525 to be provided to a prospective purchaser by the seller shall not be included in the document disclosure required by this section. Bundling of documents required to be provided pursuant to this section with other documents relating to the transaction is prohibited.(6) A seller shall provide to the prospective purchaser, at no cost, current copies of any documents specified by Section 4525 that are in the possession of the seller.(7) The fee for each document provided to the seller for the purpose of transmission to the prospective purchaser shall be individually itemized in the statement required to be provided by the seller to the prospective purchaser.(8) It is the responsibility of the seller to compensate the association, person, or entity that provides the documents required to be provided by Section 4525 to the prospective purchaser.(c) An association may contract with any person or entity to facilitate compliance with this section on behalf of the association.(d) The association shall also provide a recipient authorized by the owner of a separate interest with a copy of the completed form specified in Section 4528 at the time the required documents are delivered. A seller may request to purchase some or all of these documents, but shall not be required to purchase all of the documents listed on the form specified in Section 4528.SEC. 4. Section 5300 of the Civil Code is amended to read:5300. (a) Notwithstanding a contrary provision in the governing documents, an association shall distribute an annual budget report 30 to 90 days before the end of its fiscal year.(b) Unless the governing documents impose more stringent standards, the annual budget report shall include all of the following information:(1) A pro forma operating budget, showing the estimated revenue and expenses on an accrual basis.(2) A summary of the associations reserves, prepared pursuant to Section 5565.(3) A summary of the reserve funding plan adopted by the board, as specified in paragraph (5) of subdivision (b) of Section 5550. The summary shall include notice to members that the full reserve study plan is available upon request, and the association shall provide the full reserve plan to any member upon request.(4) A statement as to whether the board has determined to defer or not undertake repairs or replacement of any major component with a remaining life of 30 years or less, including a justification for the deferral or decision not to undertake the repairs or replacement.(5) A statement as to whether the board, consistent with the reserve funding plan adopted pursuant to Section 5560, has determined or anticipates that the levy of one or more special assessments will be required to repair, replace, or restore any major component or to provide adequate reserves therefor. If so, the statement shall also set out the estimated amount, commencement date, and duration of the assessment.(6) A statement as to the mechanism or mechanisms by which the board will fund reserves to repair or replace major components, including assessments, borrowing, use of other assets, deferral of selected replacements or repairs, or alternative mechanisms.(7) A general statement addressing the procedures used for the calculation and establishment of those reserves to defray the future repair, replacement, or additions to those major components that the association is obligated to maintain. The statement shall include, but need not be limited to, reserve calculations made using the formula described in paragraph (4) of subdivision (b) of Section 5570, and may not assume a rate of return on cash reserves in excess of 2 percent above the discount rate published by the Federal Reserve Bank of San Francisco at the time the calculation was made.(8) A statement as to whether the association has any outstanding loans with an original term of more than one year, including the payee, interest rate, amount outstanding, annual payment, and when the loan is scheduled to be retired.(9) A summary of the associations property, general liability, earthquake, flood, and fidelity insurance policies. For each policy, the summary shall include the name of the insurer, the type of insurance, the policy limit, and the amount of the deductible, if any. To the extent that any of the required information is specified in the insurance policy declaration page, the association may meet its obligation to disclose that information by making copies of that page and distributing it with the annual budget report. The summary distributed pursuant to this paragraph shall contain, in at least 10-point boldface type, the following statement:This summary of the associations policies of insurance provides only certain information, as required by Section 5300 of the Civil Code, and should not be considered a substitute for the complete policy terms and conditions contained in the actual policies of insurance. Any association member may, upon request and provision of reasonable notice, review the associations insurance policies and, upon request and payment of reasonable duplication charges, obtain copies of those policies. Although the association maintains the policies of insurance specified in this summary, the associations policies of insurance may not cover your property, including personal property or real property improvements to or around your dwelling, or personal injuries or other losses that occur within or around your dwelling. Even if a loss is covered, you may nevertheless be responsible for paying all or a portion of any deductible that applies. Association members should consult with their individual insurance broker or agent for appropriate additional coverage.(10) When the common interest development is a condominium project, a statement describing the status of the common interest development as a Federal Housing Administration (FHA)-approved condominium project pursuant to FHA guidelines, including whether the common interest development is an FHA-approved condominium project. The statement shall be in at least 10-point font on a separate piece of paper and in the following form:Certification by the Federal Housing Administration may provide benefits to members of an association, including an improvement in an owners ability to refinance a mortgage or obtain secondary financing and an increase in the pool of potential buyers of the separate interest.This common interest development [is/is not (circle one)] a condominium project. The association of this common interest development [is/is not (circle one)] certified by the Federal Housing Administration.(11) When the common interest development is a condominium project, a statement describing the status of the common interest development as a federal Department of Veterans Affairs (VA)-approved condominium project pursuant to VA guidelines, including whether the common interest development is a VA-approved condominium project. The statement shall be in at least 10-point font on a separate piece of paper and in the following form:Certification by the federal Department of Veterans Affairs may provide benefits to members of an association, including an improvement in an owners ability to refinance a mortgage or obtain secondary financing and an increase in the pool of potential buyers of the separate interest.This common interest development [is/is not (circle one)] a condominium project. The association of this common interest development [is/is not (circle one)] certified by the federal Department of Veterans Affairs.(12) A copy of the completed Charges For Documents Provided disclosure identified in Section 4528. For purposes of this section, completed means that the Fee for Document section of the form individually identifies the costs associated with providing each document listed on the form.(c) The annual budget report shall be made available to the members pursuant to Section 5320.(d) The summary of the associations reserves disclosed pursuant to paragraph (2) of subdivision (b) shall not be admissible in evidence to show improper financial management of an association, provided that other relevant and competent evidence of the financial condition of the association is not made inadmissible by this provision.(e) The Assessment and Reserve Funding Disclosure Summary form, prepared pursuant to Section 5570, shall accompany each annual budget report or summary of the annual budget report that is delivered pursuant to this article.SEC. 5. Section 5375 of the Civil Code is amended to read:5375. A prospective managing agent of a common interest development shall provide a written statement to the board as soon as practicable, but in no event more than 90 days, before entering into a management agreement which shall contain all of the following information concerning the managing agent:(a) The names and business addresses of the owners or general partners of the managing agent. If the managing agent is a corporation, the written statement shall include the names and business addresses of the directors and officers and shareholders holding greater than 10 percent of the shares of the corporation.(b) Whether or not any relevant licenses such as architectural design, construction, engineering, real estate, or accounting have been issued by this state and are currently held by the persons specified in subdivision (a). If a license is currently held by any of those persons, the statement shall contain the following information:(1) What license is held.(2) The dates the license is valid.(3) The name of the licensee appearing on that license.(c) Whether or not any relevant professional certifications or designations such as architectural design, construction, engineering, real property management, or accounting are currently held by any of the persons specified in subdivision (a), including, but not limited to, a professional common interest development manager. If any certification or designation is held, the statement shall include the following information:(1) What the certification or designation is and what entity issued it.(2) The dates the certification or designation is valid.(3) The names in which the certification or designation is held.(d) Disclose any business or company in which the common interest development manager or common interest development management firm has any ownership interests, profit-sharing arrangements, or other monetary incentives provided to the management firm or managing agent.(e) Whether or not the common interest development manager or common interest development management firm receives a referral fee or other monetary benefit from a third-party provider distributing documents pursuant to Sections 4528 and 4530.SEC. 6. Section 5375.5 is added to the Civil Code, to read:5375.5. A common interest development manager or common interest development management firm shall disclose, in writing, any potential conflict of interest when presenting a bid for service to an associations board of directors. Conflict of interest, for purposes of this section, means: (a) Any referral fee or other monetary benefit that could be derived from a business or company providing products or services to the association.(b) Any ownership interests or profit-sharing arrangements with service providers recommended to, or used by, the association.SEC. 7. Section 5376 is added to the Civil Code, to read:5376. The common interest development manager, common interest development management firm, or its contracted third-party agent shall facilitate the delivery of disclosures required pursuant to paragraph (1) of subdivision (a), paragraph (2) of subdivision (b), and subdivision (d), of Section 4530 if the common interest development manager, or common interest development management firm, is contractually responsible for delivering those documents.
3748
3849 The people of the State of California do enact as follows:
3950
4051 ## The people of the State of California do enact as follows:
4152
4253 SECTION 1. Section 11504 of the Business and Professions Code is amended to read:11504. On or before September 1, 2003, and annually thereafter, a person who either provides or contemplates providing the services of a common interest development manager to an association shall disclose to the board of directors of the association the following information:(a) Whether or not the common interest development manager has met the requirements of Section 11502 so he or she may be called a certified common interest development manager.(b) The name, address, and telephone number of the professional association that certified the common interest development manager, the date the manager was certified, and the status of the certification.(c) The location of his or her primary office.(d) Prior to entering into or renewing a contract with an association, the common interest development manager shall disclose to the board of directors of the association or common interest development whether the fidelity insurance of the common interest development manager or his or her employer covers the current years operating and reserve funds of the association. This requirement shall not be construed to compel an association to require a common interest development manager to obtain or maintain fidelity insurance.(e) Whether the common interest development manager possesses an active real estate license.(f) A common interest development manager or common interest development management firm shall disclose information required in Section 5375 of the Civil Code.(g) Whether or not the common interest development manager receives a referral fee or other monetary benefit from a third-party provider distributing documents pursuant to Section 5300 of the Civil Code.(h) An affirmative written acknowledgment that the disclosure provided to a member or potential member pursuant to Sections 4528 and 5300 of the Civil Code, and all documents provided thereunder, are the property of the association and not its managing agent or the agents managing firm.
4354
4455 SECTION 1. Section 11504 of the Business and Professions Code is amended to read:
4556
4657 ### SECTION 1.
4758
4859 11504. On or before September 1, 2003, and annually thereafter, a person who either provides or contemplates providing the services of a common interest development manager to an association shall disclose to the board of directors of the association the following information:(a) Whether or not the common interest development manager has met the requirements of Section 11502 so he or she may be called a certified common interest development manager.(b) The name, address, and telephone number of the professional association that certified the common interest development manager, the date the manager was certified, and the status of the certification.(c) The location of his or her primary office.(d) Prior to entering into or renewing a contract with an association, the common interest development manager shall disclose to the board of directors of the association or common interest development whether the fidelity insurance of the common interest development manager or his or her employer covers the current years operating and reserve funds of the association. This requirement shall not be construed to compel an association to require a common interest development manager to obtain or maintain fidelity insurance.(e) Whether the common interest development manager possesses an active real estate license.(f) A common interest development manager or common interest development management firm shall disclose information required in Section 5375 of the Civil Code.(g) Whether or not the common interest development manager receives a referral fee or other monetary benefit from a third-party provider distributing documents pursuant to Section 5300 of the Civil Code.(h) An affirmative written acknowledgment that the disclosure provided to a member or potential member pursuant to Sections 4528 and 5300 of the Civil Code, and all documents provided thereunder, are the property of the association and not its managing agent or the agents managing firm.
4960
5061 11504. On or before September 1, 2003, and annually thereafter, a person who either provides or contemplates providing the services of a common interest development manager to an association shall disclose to the board of directors of the association the following information:(a) Whether or not the common interest development manager has met the requirements of Section 11502 so he or she may be called a certified common interest development manager.(b) The name, address, and telephone number of the professional association that certified the common interest development manager, the date the manager was certified, and the status of the certification.(c) The location of his or her primary office.(d) Prior to entering into or renewing a contract with an association, the common interest development manager shall disclose to the board of directors of the association or common interest development whether the fidelity insurance of the common interest development manager or his or her employer covers the current years operating and reserve funds of the association. This requirement shall not be construed to compel an association to require a common interest development manager to obtain or maintain fidelity insurance.(e) Whether the common interest development manager possesses an active real estate license.(f) A common interest development manager or common interest development management firm shall disclose information required in Section 5375 of the Civil Code.(g) Whether or not the common interest development manager receives a referral fee or other monetary benefit from a third-party provider distributing documents pursuant to Section 5300 of the Civil Code.(h) An affirmative written acknowledgment that the disclosure provided to a member or potential member pursuant to Sections 4528 and 5300 of the Civil Code, and all documents provided thereunder, are the property of the association and not its managing agent or the agents managing firm.
5162
5263 11504. On or before September 1, 2003, and annually thereafter, a person who either provides or contemplates providing the services of a common interest development manager to an association shall disclose to the board of directors of the association the following information:(a) Whether or not the common interest development manager has met the requirements of Section 11502 so he or she may be called a certified common interest development manager.(b) The name, address, and telephone number of the professional association that certified the common interest development manager, the date the manager was certified, and the status of the certification.(c) The location of his or her primary office.(d) Prior to entering into or renewing a contract with an association, the common interest development manager shall disclose to the board of directors of the association or common interest development whether the fidelity insurance of the common interest development manager or his or her employer covers the current years operating and reserve funds of the association. This requirement shall not be construed to compel an association to require a common interest development manager to obtain or maintain fidelity insurance.(e) Whether the common interest development manager possesses an active real estate license.(f) A common interest development manager or common interest development management firm shall disclose information required in Section 5375 of the Civil Code.(g) Whether or not the common interest development manager receives a referral fee or other monetary benefit from a third-party provider distributing documents pursuant to Section 5300 of the Civil Code.(h) An affirmative written acknowledgment that the disclosure provided to a member or potential member pursuant to Sections 4528 and 5300 of the Civil Code, and all documents provided thereunder, are the property of the association and not its managing agent or the agents managing firm.
5364
5465
5566
5667 11504. On or before September 1, 2003, and annually thereafter, a person who either provides or contemplates providing the services of a common interest development manager to an association shall disclose to the board of directors of the association the following information:
5768
5869 (a) Whether or not the common interest development manager has met the requirements of Section 11502 so he or she may be called a certified common interest development manager.
5970
6071 (b) The name, address, and telephone number of the professional association that certified the common interest development manager, the date the manager was certified, and the status of the certification.
6172
6273 (c) The location of his or her primary office.
6374
6475 (d) Prior to entering into or renewing a contract with an association, the common interest development manager shall disclose to the board of directors of the association or common interest development whether the fidelity insurance of the common interest development manager or his or her employer covers the current years operating and reserve funds of the association. This requirement shall not be construed to compel an association to require a common interest development manager to obtain or maintain fidelity insurance.
6576
6677 (e) Whether the common interest development manager possesses an active real estate license.
6778
6879 (f) A common interest development manager or common interest development management firm shall disclose information required in Section 5375 of the Civil Code.
6980
7081 (g) Whether or not the common interest development manager receives a referral fee or other monetary benefit from a third-party provider distributing documents pursuant to Section 5300 of the Civil Code.
7182
7283 (h) An affirmative written acknowledgment that the disclosure provided to a member or potential member pursuant to Sections 4528 and 5300 of the Civil Code, and all documents provided thereunder, are the property of the association and not its managing agent or the agents managing firm.
7384
7485 SEC. 2. Section 4528 of the Civil Code is amended to read:4528. The form for billing disclosures required by Section 4530 shall be in at least 10-point type and substantially the following form:CHARGES FOR DOCUMENTS PROVIDED AS REQUIRED BY SECTION 4525*The seller may, in accordance with Section 4530 of the Civil Code, provide to the prospective purchaser, at no cost, current copies of any documents specified by Section 4525 that are in the possession of the seller.A seller may request to purchase some or all of these documents, but shall not be required to purchase ALL of the documents listed on this form.Property AddressOwner of PropertyOwners Mailing Address (If known or different from property address.)Provider of the Section 4525 Items:Print Name _________ Position or Title _________ Association or AgentDate Form CompletedCheck or Complete Applicable Column or Columns BelowNot Available (N/A), Not Applicable (N/App), or Directly Provided by Seller and confirmed in writing by Seller as a current document (DP)DocumentCivil Code Section IncludedFee for DocumentArticles of Incorporation or statement that not incorporatedSection 4525(a)(1)CC&RsSection 4525(a)(1)BylawsSection 4525(a)(1)Operating RulesSection 4525(a)(1)Age restrictions, if anySection 4525(a)(2)Rental restrictions, if anySection 4525(a)(9)Annual budget report or summary, including reserve studySections 5300 and 4525(a)(3)Assessment and reserve funding disclosure summarySections 5300 and 4525(a)(4)Financial statement reviewSections 5305 and 4525(a)(3)Assessment enforcement policySections 5310 and 4525(a)(4)Insurance summarySections 5300 and 4525(a)(3)Regular assessmentSection 4525(a)(4)Special assessmentSection 4525(a)(4)Emergency assessmentSection 4525(a)(4)Other unpaid obligations of sellerSections 5675 and 4525(a)(4)Approved changes to assessmentsSections 5300 and 4525(a)(4), (8)Settlement notice regarding common area defectsSections 4525(a)(6), (7), and 6100Preliminary list of defectsSections 4525(a)(6), 6000, and 6100Notice(s) of violationSections 5855 and 4525(a)(5)Required statement of feesSection 4525Minutes of regular board meetings conducted over the previous 12 months, if requestedSection 4525(a)(10)Total fees for these documents:* The information provided by this form may not include all fees that may be imposed before the close of escrow. Additional fees that are not related to the requirements of Section 4525 shall be charged separately.
7586
7687 SEC. 2. Section 4528 of the Civil Code is amended to read:
7788
7889 ### SEC. 2.
7990
8091 4528. The form for billing disclosures required by Section 4530 shall be in at least 10-point type and substantially the following form:CHARGES FOR DOCUMENTS PROVIDED AS REQUIRED BY SECTION 4525*The seller may, in accordance with Section 4530 of the Civil Code, provide to the prospective purchaser, at no cost, current copies of any documents specified by Section 4525 that are in the possession of the seller.A seller may request to purchase some or all of these documents, but shall not be required to purchase ALL of the documents listed on this form.Property AddressOwner of PropertyOwners Mailing Address (If known or different from property address.)Provider of the Section 4525 Items:Print Name _________ Position or Title _________ Association or AgentDate Form CompletedCheck or Complete Applicable Column or Columns BelowNot Available (N/A), Not Applicable (N/App), or Directly Provided by Seller and confirmed in writing by Seller as a current document (DP)DocumentCivil Code Section IncludedFee for DocumentArticles of Incorporation or statement that not incorporatedSection 4525(a)(1)CC&RsSection 4525(a)(1)BylawsSection 4525(a)(1)Operating RulesSection 4525(a)(1)Age restrictions, if anySection 4525(a)(2)Rental restrictions, if anySection 4525(a)(9)Annual budget report or summary, including reserve studySections 5300 and 4525(a)(3)Assessment and reserve funding disclosure summarySections 5300 and 4525(a)(4)Financial statement reviewSections 5305 and 4525(a)(3)Assessment enforcement policySections 5310 and 4525(a)(4)Insurance summarySections 5300 and 4525(a)(3)Regular assessmentSection 4525(a)(4)Special assessmentSection 4525(a)(4)Emergency assessmentSection 4525(a)(4)Other unpaid obligations of sellerSections 5675 and 4525(a)(4)Approved changes to assessmentsSections 5300 and 4525(a)(4), (8)Settlement notice regarding common area defectsSections 4525(a)(6), (7), and 6100Preliminary list of defectsSections 4525(a)(6), 6000, and 6100Notice(s) of violationSections 5855 and 4525(a)(5)Required statement of feesSection 4525Minutes of regular board meetings conducted over the previous 12 months, if requestedSection 4525(a)(10)Total fees for these documents:* The information provided by this form may not include all fees that may be imposed before the close of escrow. Additional fees that are not related to the requirements of Section 4525 shall be charged separately.
8192
8293 4528. The form for billing disclosures required by Section 4530 shall be in at least 10-point type and substantially the following form:CHARGES FOR DOCUMENTS PROVIDED AS REQUIRED BY SECTION 4525*The seller may, in accordance with Section 4530 of the Civil Code, provide to the prospective purchaser, at no cost, current copies of any documents specified by Section 4525 that are in the possession of the seller.A seller may request to purchase some or all of these documents, but shall not be required to purchase ALL of the documents listed on this form.Property AddressOwner of PropertyOwners Mailing Address (If known or different from property address.)Provider of the Section 4525 Items:Print Name _________ Position or Title _________ Association or AgentDate Form CompletedCheck or Complete Applicable Column or Columns BelowNot Available (N/A), Not Applicable (N/App), or Directly Provided by Seller and confirmed in writing by Seller as a current document (DP)DocumentCivil Code Section IncludedFee for DocumentArticles of Incorporation or statement that not incorporatedSection 4525(a)(1)CC&RsSection 4525(a)(1)BylawsSection 4525(a)(1)Operating RulesSection 4525(a)(1)Age restrictions, if anySection 4525(a)(2)Rental restrictions, if anySection 4525(a)(9)Annual budget report or summary, including reserve studySections 5300 and 4525(a)(3)Assessment and reserve funding disclosure summarySections 5300 and 4525(a)(4)Financial statement reviewSections 5305 and 4525(a)(3)Assessment enforcement policySections 5310 and 4525(a)(4)Insurance summarySections 5300 and 4525(a)(3)Regular assessmentSection 4525(a)(4)Special assessmentSection 4525(a)(4)Emergency assessmentSection 4525(a)(4)Other unpaid obligations of sellerSections 5675 and 4525(a)(4)Approved changes to assessmentsSections 5300 and 4525(a)(4), (8)Settlement notice regarding common area defectsSections 4525(a)(6), (7), and 6100Preliminary list of defectsSections 4525(a)(6), 6000, and 6100Notice(s) of violationSections 5855 and 4525(a)(5)Required statement of feesSection 4525Minutes of regular board meetings conducted over the previous 12 months, if requestedSection 4525(a)(10)Total fees for these documents:* The information provided by this form may not include all fees that may be imposed before the close of escrow. Additional fees that are not related to the requirements of Section 4525 shall be charged separately.
8394
8495 4528. The form for billing disclosures required by Section 4530 shall be in at least 10-point type and substantially the following form:CHARGES FOR DOCUMENTS PROVIDED AS REQUIRED BY SECTION 4525*The seller may, in accordance with Section 4530 of the Civil Code, provide to the prospective purchaser, at no cost, current copies of any documents specified by Section 4525 that are in the possession of the seller.A seller may request to purchase some or all of these documents, but shall not be required to purchase ALL of the documents listed on this form.Property AddressOwner of PropertyOwners Mailing Address (If known or different from property address.)Provider of the Section 4525 Items:Print Name _________ Position or Title _________ Association or AgentDate Form CompletedCheck or Complete Applicable Column or Columns BelowNot Available (N/A), Not Applicable (N/App), or Directly Provided by Seller and confirmed in writing by Seller as a current document (DP)DocumentCivil Code Section IncludedFee for DocumentArticles of Incorporation or statement that not incorporatedSection 4525(a)(1)CC&RsSection 4525(a)(1)BylawsSection 4525(a)(1)Operating RulesSection 4525(a)(1)Age restrictions, if anySection 4525(a)(2)Rental restrictions, if anySection 4525(a)(9)Annual budget report or summary, including reserve studySections 5300 and 4525(a)(3)Assessment and reserve funding disclosure summarySections 5300 and 4525(a)(4)Financial statement reviewSections 5305 and 4525(a)(3)Assessment enforcement policySections 5310 and 4525(a)(4)Insurance summarySections 5300 and 4525(a)(3)Regular assessmentSection 4525(a)(4)Special assessmentSection 4525(a)(4)Emergency assessmentSection 4525(a)(4)Other unpaid obligations of sellerSections 5675 and 4525(a)(4)Approved changes to assessmentsSections 5300 and 4525(a)(4), (8)Settlement notice regarding common area defectsSections 4525(a)(6), (7), and 6100Preliminary list of defectsSections 4525(a)(6), 6000, and 6100Notice(s) of violationSections 5855 and 4525(a)(5)Required statement of feesSection 4525Minutes of regular board meetings conducted over the previous 12 months, if requestedSection 4525(a)(10)Total fees for these documents:* The information provided by this form may not include all fees that may be imposed before the close of escrow. Additional fees that are not related to the requirements of Section 4525 shall be charged separately.
8596
8697
8798
8899 4528. The form for billing disclosures required by Section 4530 shall be in at least 10-point type and substantially the following form:
89100
90101 CHARGES FOR DOCUMENTS PROVIDED AS REQUIRED BY SECTION 4525*The seller may, in accordance with Section 4530 of the Civil Code, provide to the prospective purchaser, at no cost, current copies of any documents specified by Section 4525 that are in the possession of the seller.A seller may request to purchase some or all of these documents, but shall not be required to purchase ALL of the documents listed on this form.Property AddressOwner of PropertyOwners Mailing Address (If known or different from property address.)Provider of the Section 4525 Items:Print Name _________ Position or Title _________ Association or AgentDate Form CompletedCheck or Complete Applicable Column or Columns BelowNot Available (N/A), Not Applicable (N/App), or Directly Provided by Seller and confirmed in writing by Seller as a current document (DP)DocumentCivil Code Section IncludedFee for DocumentArticles of Incorporation or statement that not incorporatedSection 4525(a)(1)CC&RsSection 4525(a)(1)BylawsSection 4525(a)(1)Operating RulesSection 4525(a)(1)Age restrictions, if anySection 4525(a)(2)Rental restrictions, if anySection 4525(a)(9)Annual budget report or summary, including reserve studySections 5300 and 4525(a)(3)Assessment and reserve funding disclosure summarySections 5300 and 4525(a)(4)Financial statement reviewSections 5305 and 4525(a)(3)Assessment enforcement policySections 5310 and 4525(a)(4)Insurance summarySections 5300 and 4525(a)(3)Regular assessmentSection 4525(a)(4)Special assessmentSection 4525(a)(4)Emergency assessmentSection 4525(a)(4)Other unpaid obligations of sellerSections 5675 and 4525(a)(4)Approved changes to assessmentsSections 5300 and 4525(a)(4), (8)Settlement notice regarding common area defectsSections 4525(a)(6), (7), and 6100Preliminary list of defectsSections 4525(a)(6), 6000, and 6100Notice(s) of violationSections 5855 and 4525(a)(5)Required statement of feesSection 4525Minutes of regular board meetings conducted over the previous 12 months, if requestedSection 4525(a)(10)Total fees for these documents:* The information provided by this form may not include all fees that may be imposed before the close of escrow. Additional fees that are not related to the requirements of Section 4525 shall be charged separately.
91102
92103 CHARGES FOR DOCUMENTS PROVIDED AS REQUIRED BY SECTION 4525*
93104 The seller may, in accordance with Section 4530 of the Civil Code, provide to the prospective purchaser, at no cost, current copies of any documents specified by Section 4525 that are in the possession of the seller.
94105 A seller may request to purchase some or all of these documents, but shall not be required to purchase ALL of the documents listed on this form.
95106 Property Address
96107 Owner of Property
97108 Owners Mailing Address (If known or different from property address.)
98109 Provider of the Section 4525 Items:
99110 Print Name _________ Position or Title _________ Association or Agent
100111 Date Form Completed
101112
102113 CHARGES FOR DOCUMENTS PROVIDED AS REQUIRED BY SECTION 4525*
103114
104115 The seller may, in accordance with Section 4530 of the Civil Code, provide to the prospective purchaser, at no cost, current copies of any documents specified by Section 4525 that are in the possession of the seller.
105116
106117 Property Address
107118
108119 Owner of Property
109120
110121 Owners Mailing Address (If known or different from property address.)
111122
112123 Provider of the Section 4525 Items:
113124
114125 Print Name _________ Position or Title _________ Association or Agent
115126
116127 Check or Complete Applicable Column or Columns Below
117128 Not Available (N/A), Not Applicable (N/App), or Directly Provided by Seller and confirmed in writing by Seller as a current document (DP)
118129 Document Civil Code Section Included Fee for Document
119130 Articles of Incorporation or statement that not incorporated Section 4525(a)(1)
120131 CC&Rs Section 4525(a)(1)
121132 Bylaws Section 4525(a)(1)
122133 Operating Rules Section 4525(a)(1)
123134 Age restrictions, if any Section 4525(a)(2)
124135 Rental restrictions, if any Section 4525(a)(9)
125136 Annual budget report or summary, including reserve study Sections 5300 and 4525(a)(3)
126137 Assessment and reserve funding disclosure summary Sections 5300 and 4525(a)(4)
127138 Financial statement review Sections 5305 and 4525(a)(3)
128139 Assessment enforcement policy Sections 5310 and 4525(a)(4)
129140 Insurance summary Sections 5300 and 4525(a)(3)
130141 Regular assessment Section 4525(a)(4)
131142 Special assessment Section 4525(a)(4)
132143 Emergency assessment Section 4525(a)(4)
133144 Other unpaid obligations of seller Sections 5675 and 4525(a)(4)
134145 Approved changes to assessments Sections 5300 and 4525(a)(4), (8)
135146 Settlement notice regarding common area defects Sections 4525(a)(6), (7), and 6100
136147 Preliminary list of defects Sections 4525(a)(6), 6000, and 6100
137148 Notice(s) of violation Sections 5855 and 4525(a)(5)
138149 Required statement of fees Section 4525
139150 Minutes of regular board meetings conducted over the previous 12 months, if requested Section 4525(a)(10)
140151 Total fees for these documents:
141152 * The information provided by this form may not include all fees that may be imposed before the close of escrow. Additional fees that are not related to the requirements of Section 4525 shall be charged separately.
142153
143154 Check or Complete Applicable Column or Columns Below
144155
145156 Not Available (N/A), Not Applicable (N/App), or Directly Provided by Seller and confirmed in writing by Seller as a current document (DP)
146157
147158 Document
148159
149160 Civil Code Section Included
150161
151162 Fee for Document
152163
153164 Articles of Incorporation or statement that not incorporated
154165
155166 Section 4525(a)(1)
156167
157168 CC&Rs
158169
159170 Section 4525(a)(1)
160171
161172 Bylaws
162173
163174 Section 4525(a)(1)
164175
165176 Operating Rules
166177
167178 Section 4525(a)(1)
168179
169180 Age restrictions, if any
170181
171182 Section 4525(a)(2)
172183
173184 Rental restrictions, if any
174185
175186 Section 4525(a)(9)
176187
177188 Annual budget report or summary, including reserve study
178189
179190 Sections 5300 and 4525(a)(3)
180191
181192 Assessment and reserve funding disclosure summary
182193
183194 Sections 5300 and 4525(a)(4)
184195
185196 Financial statement review
186197
187198 Sections 5305 and 4525(a)(3)
188199
189200 Assessment enforcement policy
190201
191202 Sections 5310 and 4525(a)(4)
192203
193204 Insurance summary
194205
195206 Sections 5300 and 4525(a)(3)
196207
197208 Regular assessment
198209
199210 Section 4525(a)(4)
200211
201212 Special assessment
202213
203214 Section 4525(a)(4)
204215
205216 Emergency assessment
206217
207218 Section 4525(a)(4)
208219
209220 Other unpaid obligations of seller
210221
211222 Sections 5675 and 4525(a)(4)
212223
213224 Approved changes to assessments
214225
215226 Sections 5300 and 4525(a)(4), (8)
216227
217228 Settlement notice regarding common area defects
218229
219230 Sections 4525(a)(6), (7), and 6100
220231
221232 Preliminary list of defects
222233
223234 Sections 4525(a)(6), 6000, and 6100
224235
225236 Notice(s) of violation
226237
227238 Sections 5855 and 4525(a)(5)
228239
229240 Required statement of fees
230241
231242 Section 4525
232243
233244 Minutes of regular board meetings conducted over the previous 12 months, if requested
234245
235246 Section 4525(a)(10)
236247
237248 Total fees for these documents:
238249
239250 * The information provided by this form may not include all fees that may be imposed before the close of escrow. Additional fees that are not related to the requirements of Section 4525 shall be charged separately.
240251
241252 SEC. 3. Section 4530 of the Civil Code is amended to read:4530. (a) (1) Upon written request, the association shall, within 10 days of the mailing or delivery of the request, provide the owner of a separate interest, or any other recipient authorized by the owner, with a copy of all of the requested documents specified in Section 4525.(2) The documents required to be made available pursuant to this section may be maintained in electronic form, and may be posted on the associations Internet Web site. Requesting parties shall have the option of receiving the documents by electronic transmission if the association maintains the documents in electronic form.(3) Delivery of the documents required by this section shall not be withheld for any reason nor subject to any condition except the payment of the fee authorized pursuant to subdivision (b).(b) (1) The association may collect a reasonable fee from the seller based upon the associations actual cost for the procurement, preparation, reproduction, and delivery of the documents requested pursuant to this section. An additional fee shall not be charged for the electronic delivery in lieu of a hard copy delivery of the documents requested.(2) Upon receipt of a written request, the association shall provide, on the form described in Section 4528, a written or electronic estimate of the fees that will be assessed for providing the requested documents prior to processing the request in paragraph (1) of subdivision (a).(3) (A) A cancellation fee for documents specified in subdivision (a) shall not be collected if either of the following applies:(i) The request was canceled in writing by the same party that placed the order and work had not yet been performed on the order.(ii) The request was canceled in writing and any work that had been performed on the order was compensated.(B) The association shall refund all fees collected pursuant to paragraph (1) if the request was canceled in writing and work had not yet been performed on the order.(C) If the request was canceled in writing, the association shall refund the share of fees collected pursuant to paragraph (1) that represents the portion of the work not performed on the order.(4) Fees for any documents required by this section shall be distinguished from, separately stated, and separately billed from, all other fees, fines, or assessments billed as part of the transfer or sales transaction.(5) Any documents not expressly required by Section 4525 to be provided to a prospective purchaser by the seller shall not be included in the document disclosure required by this section. Bundling of documents required to be provided pursuant to this section with other documents relating to the transaction is prohibited.(6) A seller shall provide to the prospective purchaser, at no cost, current copies of any documents specified by Section 4525 that are in the possession of the seller.(7) The fee for each document provided to the seller for the purpose of transmission to the prospective purchaser shall be individually itemized in the statement required to be provided by the seller to the prospective purchaser.(8) It is the responsibility of the seller to compensate the association, person, or entity that provides the documents required to be provided by Section 4525 to the prospective purchaser.(c) An association may contract with any person or entity to facilitate compliance with this section on behalf of the association.(d) The association shall also provide a recipient authorized by the owner of a separate interest with a copy of the completed form specified in Section 4528 at the time the required documents are delivered. A seller may request to purchase some or all of these documents, but shall not be required to purchase all of the documents listed on the form specified in Section 4528.
242253
243254 SEC. 3. Section 4530 of the Civil Code is amended to read:
244255
245256 ### SEC. 3.
246257
247258 4530. (a) (1) Upon written request, the association shall, within 10 days of the mailing or delivery of the request, provide the owner of a separate interest, or any other recipient authorized by the owner, with a copy of all of the requested documents specified in Section 4525.(2) The documents required to be made available pursuant to this section may be maintained in electronic form, and may be posted on the associations Internet Web site. Requesting parties shall have the option of receiving the documents by electronic transmission if the association maintains the documents in electronic form.(3) Delivery of the documents required by this section shall not be withheld for any reason nor subject to any condition except the payment of the fee authorized pursuant to subdivision (b).(b) (1) The association may collect a reasonable fee from the seller based upon the associations actual cost for the procurement, preparation, reproduction, and delivery of the documents requested pursuant to this section. An additional fee shall not be charged for the electronic delivery in lieu of a hard copy delivery of the documents requested.(2) Upon receipt of a written request, the association shall provide, on the form described in Section 4528, a written or electronic estimate of the fees that will be assessed for providing the requested documents prior to processing the request in paragraph (1) of subdivision (a).(3) (A) A cancellation fee for documents specified in subdivision (a) shall not be collected if either of the following applies:(i) The request was canceled in writing by the same party that placed the order and work had not yet been performed on the order.(ii) The request was canceled in writing and any work that had been performed on the order was compensated.(B) The association shall refund all fees collected pursuant to paragraph (1) if the request was canceled in writing and work had not yet been performed on the order.(C) If the request was canceled in writing, the association shall refund the share of fees collected pursuant to paragraph (1) that represents the portion of the work not performed on the order.(4) Fees for any documents required by this section shall be distinguished from, separately stated, and separately billed from, all other fees, fines, or assessments billed as part of the transfer or sales transaction.(5) Any documents not expressly required by Section 4525 to be provided to a prospective purchaser by the seller shall not be included in the document disclosure required by this section. Bundling of documents required to be provided pursuant to this section with other documents relating to the transaction is prohibited.(6) A seller shall provide to the prospective purchaser, at no cost, current copies of any documents specified by Section 4525 that are in the possession of the seller.(7) The fee for each document provided to the seller for the purpose of transmission to the prospective purchaser shall be individually itemized in the statement required to be provided by the seller to the prospective purchaser.(8) It is the responsibility of the seller to compensate the association, person, or entity that provides the documents required to be provided by Section 4525 to the prospective purchaser.(c) An association may contract with any person or entity to facilitate compliance with this section on behalf of the association.(d) The association shall also provide a recipient authorized by the owner of a separate interest with a copy of the completed form specified in Section 4528 at the time the required documents are delivered. A seller may request to purchase some or all of these documents, but shall not be required to purchase all of the documents listed on the form specified in Section 4528.
248259
249260 4530. (a) (1) Upon written request, the association shall, within 10 days of the mailing or delivery of the request, provide the owner of a separate interest, or any other recipient authorized by the owner, with a copy of all of the requested documents specified in Section 4525.(2) The documents required to be made available pursuant to this section may be maintained in electronic form, and may be posted on the associations Internet Web site. Requesting parties shall have the option of receiving the documents by electronic transmission if the association maintains the documents in electronic form.(3) Delivery of the documents required by this section shall not be withheld for any reason nor subject to any condition except the payment of the fee authorized pursuant to subdivision (b).(b) (1) The association may collect a reasonable fee from the seller based upon the associations actual cost for the procurement, preparation, reproduction, and delivery of the documents requested pursuant to this section. An additional fee shall not be charged for the electronic delivery in lieu of a hard copy delivery of the documents requested.(2) Upon receipt of a written request, the association shall provide, on the form described in Section 4528, a written or electronic estimate of the fees that will be assessed for providing the requested documents prior to processing the request in paragraph (1) of subdivision (a).(3) (A) A cancellation fee for documents specified in subdivision (a) shall not be collected if either of the following applies:(i) The request was canceled in writing by the same party that placed the order and work had not yet been performed on the order.(ii) The request was canceled in writing and any work that had been performed on the order was compensated.(B) The association shall refund all fees collected pursuant to paragraph (1) if the request was canceled in writing and work had not yet been performed on the order.(C) If the request was canceled in writing, the association shall refund the share of fees collected pursuant to paragraph (1) that represents the portion of the work not performed on the order.(4) Fees for any documents required by this section shall be distinguished from, separately stated, and separately billed from, all other fees, fines, or assessments billed as part of the transfer or sales transaction.(5) Any documents not expressly required by Section 4525 to be provided to a prospective purchaser by the seller shall not be included in the document disclosure required by this section. Bundling of documents required to be provided pursuant to this section with other documents relating to the transaction is prohibited.(6) A seller shall provide to the prospective purchaser, at no cost, current copies of any documents specified by Section 4525 that are in the possession of the seller.(7) The fee for each document provided to the seller for the purpose of transmission to the prospective purchaser shall be individually itemized in the statement required to be provided by the seller to the prospective purchaser.(8) It is the responsibility of the seller to compensate the association, person, or entity that provides the documents required to be provided by Section 4525 to the prospective purchaser.(c) An association may contract with any person or entity to facilitate compliance with this section on behalf of the association.(d) The association shall also provide a recipient authorized by the owner of a separate interest with a copy of the completed form specified in Section 4528 at the time the required documents are delivered. A seller may request to purchase some or all of these documents, but shall not be required to purchase all of the documents listed on the form specified in Section 4528.
250261
251262 4530. (a) (1) Upon written request, the association shall, within 10 days of the mailing or delivery of the request, provide the owner of a separate interest, or any other recipient authorized by the owner, with a copy of all of the requested documents specified in Section 4525.(2) The documents required to be made available pursuant to this section may be maintained in electronic form, and may be posted on the associations Internet Web site. Requesting parties shall have the option of receiving the documents by electronic transmission if the association maintains the documents in electronic form.(3) Delivery of the documents required by this section shall not be withheld for any reason nor subject to any condition except the payment of the fee authorized pursuant to subdivision (b).(b) (1) The association may collect a reasonable fee from the seller based upon the associations actual cost for the procurement, preparation, reproduction, and delivery of the documents requested pursuant to this section. An additional fee shall not be charged for the electronic delivery in lieu of a hard copy delivery of the documents requested.(2) Upon receipt of a written request, the association shall provide, on the form described in Section 4528, a written or electronic estimate of the fees that will be assessed for providing the requested documents prior to processing the request in paragraph (1) of subdivision (a).(3) (A) A cancellation fee for documents specified in subdivision (a) shall not be collected if either of the following applies:(i) The request was canceled in writing by the same party that placed the order and work had not yet been performed on the order.(ii) The request was canceled in writing and any work that had been performed on the order was compensated.(B) The association shall refund all fees collected pursuant to paragraph (1) if the request was canceled in writing and work had not yet been performed on the order.(C) If the request was canceled in writing, the association shall refund the share of fees collected pursuant to paragraph (1) that represents the portion of the work not performed on the order.(4) Fees for any documents required by this section shall be distinguished from, separately stated, and separately billed from, all other fees, fines, or assessments billed as part of the transfer or sales transaction.(5) Any documents not expressly required by Section 4525 to be provided to a prospective purchaser by the seller shall not be included in the document disclosure required by this section. Bundling of documents required to be provided pursuant to this section with other documents relating to the transaction is prohibited.(6) A seller shall provide to the prospective purchaser, at no cost, current copies of any documents specified by Section 4525 that are in the possession of the seller.(7) The fee for each document provided to the seller for the purpose of transmission to the prospective purchaser shall be individually itemized in the statement required to be provided by the seller to the prospective purchaser.(8) It is the responsibility of the seller to compensate the association, person, or entity that provides the documents required to be provided by Section 4525 to the prospective purchaser.(c) An association may contract with any person or entity to facilitate compliance with this section on behalf of the association.(d) The association shall also provide a recipient authorized by the owner of a separate interest with a copy of the completed form specified in Section 4528 at the time the required documents are delivered. A seller may request to purchase some or all of these documents, but shall not be required to purchase all of the documents listed on the form specified in Section 4528.
252263
253264
254265
255266 4530. (a) (1) Upon written request, the association shall, within 10 days of the mailing or delivery of the request, provide the owner of a separate interest, or any other recipient authorized by the owner, with a copy of all of the requested documents specified in Section 4525.
256267
257268 (2) The documents required to be made available pursuant to this section may be maintained in electronic form, and may be posted on the associations Internet Web site. Requesting parties shall have the option of receiving the documents by electronic transmission if the association maintains the documents in electronic form.
258269
259270 (3) Delivery of the documents required by this section shall not be withheld for any reason nor subject to any condition except the payment of the fee authorized pursuant to subdivision (b).
260271
261272 (b) (1) The association may collect a reasonable fee from the seller based upon the associations actual cost for the procurement, preparation, reproduction, and delivery of the documents requested pursuant to this section. An additional fee shall not be charged for the electronic delivery in lieu of a hard copy delivery of the documents requested.
262273
263274 (2) Upon receipt of a written request, the association shall provide, on the form described in Section 4528, a written or electronic estimate of the fees that will be assessed for providing the requested documents prior to processing the request in paragraph (1) of subdivision (a).
264275
265276 (3) (A) A cancellation fee for documents specified in subdivision (a) shall not be collected if either of the following applies:
266277
267278 (i) The request was canceled in writing by the same party that placed the order and work had not yet been performed on the order.
268279
269280 (ii) The request was canceled in writing and any work that had been performed on the order was compensated.
270281
271282 (B) The association shall refund all fees collected pursuant to paragraph (1) if the request was canceled in writing and work had not yet been performed on the order.
272283
273284 (C) If the request was canceled in writing, the association shall refund the share of fees collected pursuant to paragraph (1) that represents the portion of the work not performed on the order.
274285
275286 (4) Fees for any documents required by this section shall be distinguished from, separately stated, and separately billed from, all other fees, fines, or assessments billed as part of the transfer or sales transaction.
276287
277288 (5) Any documents not expressly required by Section 4525 to be provided to a prospective purchaser by the seller shall not be included in the document disclosure required by this section. Bundling of documents required to be provided pursuant to this section with other documents relating to the transaction is prohibited.
278289
279290 (6) A seller shall provide to the prospective purchaser, at no cost, current copies of any documents specified by Section 4525 that are in the possession of the seller.
280291
281292 (7) The fee for each document provided to the seller for the purpose of transmission to the prospective purchaser shall be individually itemized in the statement required to be provided by the seller to the prospective purchaser.
282293
283294 (8) It is the responsibility of the seller to compensate the association, person, or entity that provides the documents required to be provided by Section 4525 to the prospective purchaser.
284295
285296 (c) An association may contract with any person or entity to facilitate compliance with this section on behalf of the association.
286297
287298 (d) The association shall also provide a recipient authorized by the owner of a separate interest with a copy of the completed form specified in Section 4528 at the time the required documents are delivered. A seller may request to purchase some or all of these documents, but shall not be required to purchase all of the documents listed on the form specified in Section 4528.
288299
289300 SEC. 4. Section 5300 of the Civil Code is amended to read:5300. (a) Notwithstanding a contrary provision in the governing documents, an association shall distribute an annual budget report 30 to 90 days before the end of its fiscal year.(b) Unless the governing documents impose more stringent standards, the annual budget report shall include all of the following information:(1) A pro forma operating budget, showing the estimated revenue and expenses on an accrual basis.(2) A summary of the associations reserves, prepared pursuant to Section 5565.(3) A summary of the reserve funding plan adopted by the board, as specified in paragraph (5) of subdivision (b) of Section 5550. The summary shall include notice to members that the full reserve study plan is available upon request, and the association shall provide the full reserve plan to any member upon request.(4) A statement as to whether the board has determined to defer or not undertake repairs or replacement of any major component with a remaining life of 30 years or less, including a justification for the deferral or decision not to undertake the repairs or replacement.(5) A statement as to whether the board, consistent with the reserve funding plan adopted pursuant to Section 5560, has determined or anticipates that the levy of one or more special assessments will be required to repair, replace, or restore any major component or to provide adequate reserves therefor. If so, the statement shall also set out the estimated amount, commencement date, and duration of the assessment.(6) A statement as to the mechanism or mechanisms by which the board will fund reserves to repair or replace major components, including assessments, borrowing, use of other assets, deferral of selected replacements or repairs, or alternative mechanisms.(7) A general statement addressing the procedures used for the calculation and establishment of those reserves to defray the future repair, replacement, or additions to those major components that the association is obligated to maintain. The statement shall include, but need not be limited to, reserve calculations made using the formula described in paragraph (4) of subdivision (b) of Section 5570, and may not assume a rate of return on cash reserves in excess of 2 percent above the discount rate published by the Federal Reserve Bank of San Francisco at the time the calculation was made.(8) A statement as to whether the association has any outstanding loans with an original term of more than one year, including the payee, interest rate, amount outstanding, annual payment, and when the loan is scheduled to be retired.(9) A summary of the associations property, general liability, earthquake, flood, and fidelity insurance policies. For each policy, the summary shall include the name of the insurer, the type of insurance, the policy limit, and the amount of the deductible, if any. To the extent that any of the required information is specified in the insurance policy declaration page, the association may meet its obligation to disclose that information by making copies of that page and distributing it with the annual budget report. The summary distributed pursuant to this paragraph shall contain, in at least 10-point boldface type, the following statement:This summary of the associations policies of insurance provides only certain information, as required by Section 5300 of the Civil Code, and should not be considered a substitute for the complete policy terms and conditions contained in the actual policies of insurance. Any association member may, upon request and provision of reasonable notice, review the associations insurance policies and, upon request and payment of reasonable duplication charges, obtain copies of those policies. Although the association maintains the policies of insurance specified in this summary, the associations policies of insurance may not cover your property, including personal property or real property improvements to or around your dwelling, or personal injuries or other losses that occur within or around your dwelling. Even if a loss is covered, you may nevertheless be responsible for paying all or a portion of any deductible that applies. Association members should consult with their individual insurance broker or agent for appropriate additional coverage.(10) When the common interest development is a condominium project, a statement describing the status of the common interest development as a Federal Housing Administration (FHA)-approved condominium project pursuant to FHA guidelines, including whether the common interest development is an FHA-approved condominium project. The statement shall be in at least 10-point font on a separate piece of paper and in the following form:Certification by the Federal Housing Administration may provide benefits to members of an association, including an improvement in an owners ability to refinance a mortgage or obtain secondary financing and an increase in the pool of potential buyers of the separate interest.This common interest development [is/is not (circle one)] a condominium project. The association of this common interest development [is/is not (circle one)] certified by the Federal Housing Administration.(11) When the common interest development is a condominium project, a statement describing the status of the common interest development as a federal Department of Veterans Affairs (VA)-approved condominium project pursuant to VA guidelines, including whether the common interest development is a VA-approved condominium project. The statement shall be in at least 10-point font on a separate piece of paper and in the following form:Certification by the federal Department of Veterans Affairs may provide benefits to members of an association, including an improvement in an owners ability to refinance a mortgage or obtain secondary financing and an increase in the pool of potential buyers of the separate interest.This common interest development [is/is not (circle one)] a condominium project. The association of this common interest development [is/is not (circle one)] certified by the federal Department of Veterans Affairs.(12) A copy of the completed Charges For Documents Provided disclosure identified in Section 4528. For purposes of this section, completed means that the Fee for Document section of the form individually identifies the costs associated with providing each document listed on the form.(c) The annual budget report shall be made available to the members pursuant to Section 5320.(d) The summary of the associations reserves disclosed pursuant to paragraph (2) of subdivision (b) shall not be admissible in evidence to show improper financial management of an association, provided that other relevant and competent evidence of the financial condition of the association is not made inadmissible by this provision.(e) The Assessment and Reserve Funding Disclosure Summary form, prepared pursuant to Section 5570, shall accompany each annual budget report or summary of the annual budget report that is delivered pursuant to this article.
290301
291302 SEC. 4. Section 5300 of the Civil Code is amended to read:
292303
293304 ### SEC. 4.
294305
295306 5300. (a) Notwithstanding a contrary provision in the governing documents, an association shall distribute an annual budget report 30 to 90 days before the end of its fiscal year.(b) Unless the governing documents impose more stringent standards, the annual budget report shall include all of the following information:(1) A pro forma operating budget, showing the estimated revenue and expenses on an accrual basis.(2) A summary of the associations reserves, prepared pursuant to Section 5565.(3) A summary of the reserve funding plan adopted by the board, as specified in paragraph (5) of subdivision (b) of Section 5550. The summary shall include notice to members that the full reserve study plan is available upon request, and the association shall provide the full reserve plan to any member upon request.(4) A statement as to whether the board has determined to defer or not undertake repairs or replacement of any major component with a remaining life of 30 years or less, including a justification for the deferral or decision not to undertake the repairs or replacement.(5) A statement as to whether the board, consistent with the reserve funding plan adopted pursuant to Section 5560, has determined or anticipates that the levy of one or more special assessments will be required to repair, replace, or restore any major component or to provide adequate reserves therefor. If so, the statement shall also set out the estimated amount, commencement date, and duration of the assessment.(6) A statement as to the mechanism or mechanisms by which the board will fund reserves to repair or replace major components, including assessments, borrowing, use of other assets, deferral of selected replacements or repairs, or alternative mechanisms.(7) A general statement addressing the procedures used for the calculation and establishment of those reserves to defray the future repair, replacement, or additions to those major components that the association is obligated to maintain. The statement shall include, but need not be limited to, reserve calculations made using the formula described in paragraph (4) of subdivision (b) of Section 5570, and may not assume a rate of return on cash reserves in excess of 2 percent above the discount rate published by the Federal Reserve Bank of San Francisco at the time the calculation was made.(8) A statement as to whether the association has any outstanding loans with an original term of more than one year, including the payee, interest rate, amount outstanding, annual payment, and when the loan is scheduled to be retired.(9) A summary of the associations property, general liability, earthquake, flood, and fidelity insurance policies. For each policy, the summary shall include the name of the insurer, the type of insurance, the policy limit, and the amount of the deductible, if any. To the extent that any of the required information is specified in the insurance policy declaration page, the association may meet its obligation to disclose that information by making copies of that page and distributing it with the annual budget report. The summary distributed pursuant to this paragraph shall contain, in at least 10-point boldface type, the following statement:This summary of the associations policies of insurance provides only certain information, as required by Section 5300 of the Civil Code, and should not be considered a substitute for the complete policy terms and conditions contained in the actual policies of insurance. Any association member may, upon request and provision of reasonable notice, review the associations insurance policies and, upon request and payment of reasonable duplication charges, obtain copies of those policies. Although the association maintains the policies of insurance specified in this summary, the associations policies of insurance may not cover your property, including personal property or real property improvements to or around your dwelling, or personal injuries or other losses that occur within or around your dwelling. Even if a loss is covered, you may nevertheless be responsible for paying all or a portion of any deductible that applies. Association members should consult with their individual insurance broker or agent for appropriate additional coverage.(10) When the common interest development is a condominium project, a statement describing the status of the common interest development as a Federal Housing Administration (FHA)-approved condominium project pursuant to FHA guidelines, including whether the common interest development is an FHA-approved condominium project. The statement shall be in at least 10-point font on a separate piece of paper and in the following form:Certification by the Federal Housing Administration may provide benefits to members of an association, including an improvement in an owners ability to refinance a mortgage or obtain secondary financing and an increase in the pool of potential buyers of the separate interest.This common interest development [is/is not (circle one)] a condominium project. The association of this common interest development [is/is not (circle one)] certified by the Federal Housing Administration.(11) When the common interest development is a condominium project, a statement describing the status of the common interest development as a federal Department of Veterans Affairs (VA)-approved condominium project pursuant to VA guidelines, including whether the common interest development is a VA-approved condominium project. The statement shall be in at least 10-point font on a separate piece of paper and in the following form:Certification by the federal Department of Veterans Affairs may provide benefits to members of an association, including an improvement in an owners ability to refinance a mortgage or obtain secondary financing and an increase in the pool of potential buyers of the separate interest.This common interest development [is/is not (circle one)] a condominium project. The association of this common interest development [is/is not (circle one)] certified by the federal Department of Veterans Affairs.(12) A copy of the completed Charges For Documents Provided disclosure identified in Section 4528. For purposes of this section, completed means that the Fee for Document section of the form individually identifies the costs associated with providing each document listed on the form.(c) The annual budget report shall be made available to the members pursuant to Section 5320.(d) The summary of the associations reserves disclosed pursuant to paragraph (2) of subdivision (b) shall not be admissible in evidence to show improper financial management of an association, provided that other relevant and competent evidence of the financial condition of the association is not made inadmissible by this provision.(e) The Assessment and Reserve Funding Disclosure Summary form, prepared pursuant to Section 5570, shall accompany each annual budget report or summary of the annual budget report that is delivered pursuant to this article.
296307
297308 5300. (a) Notwithstanding a contrary provision in the governing documents, an association shall distribute an annual budget report 30 to 90 days before the end of its fiscal year.(b) Unless the governing documents impose more stringent standards, the annual budget report shall include all of the following information:(1) A pro forma operating budget, showing the estimated revenue and expenses on an accrual basis.(2) A summary of the associations reserves, prepared pursuant to Section 5565.(3) A summary of the reserve funding plan adopted by the board, as specified in paragraph (5) of subdivision (b) of Section 5550. The summary shall include notice to members that the full reserve study plan is available upon request, and the association shall provide the full reserve plan to any member upon request.(4) A statement as to whether the board has determined to defer or not undertake repairs or replacement of any major component with a remaining life of 30 years or less, including a justification for the deferral or decision not to undertake the repairs or replacement.(5) A statement as to whether the board, consistent with the reserve funding plan adopted pursuant to Section 5560, has determined or anticipates that the levy of one or more special assessments will be required to repair, replace, or restore any major component or to provide adequate reserves therefor. If so, the statement shall also set out the estimated amount, commencement date, and duration of the assessment.(6) A statement as to the mechanism or mechanisms by which the board will fund reserves to repair or replace major components, including assessments, borrowing, use of other assets, deferral of selected replacements or repairs, or alternative mechanisms.(7) A general statement addressing the procedures used for the calculation and establishment of those reserves to defray the future repair, replacement, or additions to those major components that the association is obligated to maintain. The statement shall include, but need not be limited to, reserve calculations made using the formula described in paragraph (4) of subdivision (b) of Section 5570, and may not assume a rate of return on cash reserves in excess of 2 percent above the discount rate published by the Federal Reserve Bank of San Francisco at the time the calculation was made.(8) A statement as to whether the association has any outstanding loans with an original term of more than one year, including the payee, interest rate, amount outstanding, annual payment, and when the loan is scheduled to be retired.(9) A summary of the associations property, general liability, earthquake, flood, and fidelity insurance policies. For each policy, the summary shall include the name of the insurer, the type of insurance, the policy limit, and the amount of the deductible, if any. To the extent that any of the required information is specified in the insurance policy declaration page, the association may meet its obligation to disclose that information by making copies of that page and distributing it with the annual budget report. The summary distributed pursuant to this paragraph shall contain, in at least 10-point boldface type, the following statement:This summary of the associations policies of insurance provides only certain information, as required by Section 5300 of the Civil Code, and should not be considered a substitute for the complete policy terms and conditions contained in the actual policies of insurance. Any association member may, upon request and provision of reasonable notice, review the associations insurance policies and, upon request and payment of reasonable duplication charges, obtain copies of those policies. Although the association maintains the policies of insurance specified in this summary, the associations policies of insurance may not cover your property, including personal property or real property improvements to or around your dwelling, or personal injuries or other losses that occur within or around your dwelling. Even if a loss is covered, you may nevertheless be responsible for paying all or a portion of any deductible that applies. Association members should consult with their individual insurance broker or agent for appropriate additional coverage.(10) When the common interest development is a condominium project, a statement describing the status of the common interest development as a Federal Housing Administration (FHA)-approved condominium project pursuant to FHA guidelines, including whether the common interest development is an FHA-approved condominium project. The statement shall be in at least 10-point font on a separate piece of paper and in the following form:Certification by the Federal Housing Administration may provide benefits to members of an association, including an improvement in an owners ability to refinance a mortgage or obtain secondary financing and an increase in the pool of potential buyers of the separate interest.This common interest development [is/is not (circle one)] a condominium project. The association of this common interest development [is/is not (circle one)] certified by the Federal Housing Administration.(11) When the common interest development is a condominium project, a statement describing the status of the common interest development as a federal Department of Veterans Affairs (VA)-approved condominium project pursuant to VA guidelines, including whether the common interest development is a VA-approved condominium project. The statement shall be in at least 10-point font on a separate piece of paper and in the following form:Certification by the federal Department of Veterans Affairs may provide benefits to members of an association, including an improvement in an owners ability to refinance a mortgage or obtain secondary financing and an increase in the pool of potential buyers of the separate interest.This common interest development [is/is not (circle one)] a condominium project. The association of this common interest development [is/is not (circle one)] certified by the federal Department of Veterans Affairs.(12) A copy of the completed Charges For Documents Provided disclosure identified in Section 4528. For purposes of this section, completed means that the Fee for Document section of the form individually identifies the costs associated with providing each document listed on the form.(c) The annual budget report shall be made available to the members pursuant to Section 5320.(d) The summary of the associations reserves disclosed pursuant to paragraph (2) of subdivision (b) shall not be admissible in evidence to show improper financial management of an association, provided that other relevant and competent evidence of the financial condition of the association is not made inadmissible by this provision.(e) The Assessment and Reserve Funding Disclosure Summary form, prepared pursuant to Section 5570, shall accompany each annual budget report or summary of the annual budget report that is delivered pursuant to this article.
298309
299310 5300. (a) Notwithstanding a contrary provision in the governing documents, an association shall distribute an annual budget report 30 to 90 days before the end of its fiscal year.(b) Unless the governing documents impose more stringent standards, the annual budget report shall include all of the following information:(1) A pro forma operating budget, showing the estimated revenue and expenses on an accrual basis.(2) A summary of the associations reserves, prepared pursuant to Section 5565.(3) A summary of the reserve funding plan adopted by the board, as specified in paragraph (5) of subdivision (b) of Section 5550. The summary shall include notice to members that the full reserve study plan is available upon request, and the association shall provide the full reserve plan to any member upon request.(4) A statement as to whether the board has determined to defer or not undertake repairs or replacement of any major component with a remaining life of 30 years or less, including a justification for the deferral or decision not to undertake the repairs or replacement.(5) A statement as to whether the board, consistent with the reserve funding plan adopted pursuant to Section 5560, has determined or anticipates that the levy of one or more special assessments will be required to repair, replace, or restore any major component or to provide adequate reserves therefor. If so, the statement shall also set out the estimated amount, commencement date, and duration of the assessment.(6) A statement as to the mechanism or mechanisms by which the board will fund reserves to repair or replace major components, including assessments, borrowing, use of other assets, deferral of selected replacements or repairs, or alternative mechanisms.(7) A general statement addressing the procedures used for the calculation and establishment of those reserves to defray the future repair, replacement, or additions to those major components that the association is obligated to maintain. The statement shall include, but need not be limited to, reserve calculations made using the formula described in paragraph (4) of subdivision (b) of Section 5570, and may not assume a rate of return on cash reserves in excess of 2 percent above the discount rate published by the Federal Reserve Bank of San Francisco at the time the calculation was made.(8) A statement as to whether the association has any outstanding loans with an original term of more than one year, including the payee, interest rate, amount outstanding, annual payment, and when the loan is scheduled to be retired.(9) A summary of the associations property, general liability, earthquake, flood, and fidelity insurance policies. For each policy, the summary shall include the name of the insurer, the type of insurance, the policy limit, and the amount of the deductible, if any. To the extent that any of the required information is specified in the insurance policy declaration page, the association may meet its obligation to disclose that information by making copies of that page and distributing it with the annual budget report. The summary distributed pursuant to this paragraph shall contain, in at least 10-point boldface type, the following statement:This summary of the associations policies of insurance provides only certain information, as required by Section 5300 of the Civil Code, and should not be considered a substitute for the complete policy terms and conditions contained in the actual policies of insurance. Any association member may, upon request and provision of reasonable notice, review the associations insurance policies and, upon request and payment of reasonable duplication charges, obtain copies of those policies. Although the association maintains the policies of insurance specified in this summary, the associations policies of insurance may not cover your property, including personal property or real property improvements to or around your dwelling, or personal injuries or other losses that occur within or around your dwelling. Even if a loss is covered, you may nevertheless be responsible for paying all or a portion of any deductible that applies. Association members should consult with their individual insurance broker or agent for appropriate additional coverage.(10) When the common interest development is a condominium project, a statement describing the status of the common interest development as a Federal Housing Administration (FHA)-approved condominium project pursuant to FHA guidelines, including whether the common interest development is an FHA-approved condominium project. The statement shall be in at least 10-point font on a separate piece of paper and in the following form:Certification by the Federal Housing Administration may provide benefits to members of an association, including an improvement in an owners ability to refinance a mortgage or obtain secondary financing and an increase in the pool of potential buyers of the separate interest.This common interest development [is/is not (circle one)] a condominium project. The association of this common interest development [is/is not (circle one)] certified by the Federal Housing Administration.(11) When the common interest development is a condominium project, a statement describing the status of the common interest development as a federal Department of Veterans Affairs (VA)-approved condominium project pursuant to VA guidelines, including whether the common interest development is a VA-approved condominium project. The statement shall be in at least 10-point font on a separate piece of paper and in the following form:Certification by the federal Department of Veterans Affairs may provide benefits to members of an association, including an improvement in an owners ability to refinance a mortgage or obtain secondary financing and an increase in the pool of potential buyers of the separate interest.This common interest development [is/is not (circle one)] a condominium project. The association of this common interest development [is/is not (circle one)] certified by the federal Department of Veterans Affairs.(12) A copy of the completed Charges For Documents Provided disclosure identified in Section 4528. For purposes of this section, completed means that the Fee for Document section of the form individually identifies the costs associated with providing each document listed on the form.(c) The annual budget report shall be made available to the members pursuant to Section 5320.(d) The summary of the associations reserves disclosed pursuant to paragraph (2) of subdivision (b) shall not be admissible in evidence to show improper financial management of an association, provided that other relevant and competent evidence of the financial condition of the association is not made inadmissible by this provision.(e) The Assessment and Reserve Funding Disclosure Summary form, prepared pursuant to Section 5570, shall accompany each annual budget report or summary of the annual budget report that is delivered pursuant to this article.
300311
301312
302313
303314 5300. (a) Notwithstanding a contrary provision in the governing documents, an association shall distribute an annual budget report 30 to 90 days before the end of its fiscal year.
304315
305316 (b) Unless the governing documents impose more stringent standards, the annual budget report shall include all of the following information:
306317
307318 (1) A pro forma operating budget, showing the estimated revenue and expenses on an accrual basis.
308319
309320 (2) A summary of the associations reserves, prepared pursuant to Section 5565.
310321
311322 (3) A summary of the reserve funding plan adopted by the board, as specified in paragraph (5) of subdivision (b) of Section 5550. The summary shall include notice to members that the full reserve study plan is available upon request, and the association shall provide the full reserve plan to any member upon request.
312323
313324 (4) A statement as to whether the board has determined to defer or not undertake repairs or replacement of any major component with a remaining life of 30 years or less, including a justification for the deferral or decision not to undertake the repairs or replacement.
314325
315326 (5) A statement as to whether the board, consistent with the reserve funding plan adopted pursuant to Section 5560, has determined or anticipates that the levy of one or more special assessments will be required to repair, replace, or restore any major component or to provide adequate reserves therefor. If so, the statement shall also set out the estimated amount, commencement date, and duration of the assessment.
316327
317328 (6) A statement as to the mechanism or mechanisms by which the board will fund reserves to repair or replace major components, including assessments, borrowing, use of other assets, deferral of selected replacements or repairs, or alternative mechanisms.
318329
319330 (7) A general statement addressing the procedures used for the calculation and establishment of those reserves to defray the future repair, replacement, or additions to those major components that the association is obligated to maintain. The statement shall include, but need not be limited to, reserve calculations made using the formula described in paragraph (4) of subdivision (b) of Section 5570, and may not assume a rate of return on cash reserves in excess of 2 percent above the discount rate published by the Federal Reserve Bank of San Francisco at the time the calculation was made.
320331
321332 (8) A statement as to whether the association has any outstanding loans with an original term of more than one year, including the payee, interest rate, amount outstanding, annual payment, and when the loan is scheduled to be retired.
322333
323334 (9) A summary of the associations property, general liability, earthquake, flood, and fidelity insurance policies. For each policy, the summary shall include the name of the insurer, the type of insurance, the policy limit, and the amount of the deductible, if any. To the extent that any of the required information is specified in the insurance policy declaration page, the association may meet its obligation to disclose that information by making copies of that page and distributing it with the annual budget report. The summary distributed pursuant to this paragraph shall contain, in at least 10-point boldface type, the following statement:
324335
325336 This summary of the associations policies of insurance provides only certain information, as required by Section 5300 of the Civil Code, and should not be considered a substitute for the complete policy terms and conditions contained in the actual policies of insurance. Any association member may, upon request and provision of reasonable notice, review the associations insurance policies and, upon request and payment of reasonable duplication charges, obtain copies of those policies. Although the association maintains the policies of insurance specified in this summary, the associations policies of insurance may not cover your property, including personal property or real property improvements to or around your dwelling, or personal injuries or other losses that occur within or around your dwelling. Even if a loss is covered, you may nevertheless be responsible for paying all or a portion of any deductible that applies. Association members should consult with their individual insurance broker or agent for appropriate additional coverage.
326337
327338 (10) When the common interest development is a condominium project, a statement describing the status of the common interest development as a Federal Housing Administration (FHA)-approved condominium project pursuant to FHA guidelines, including whether the common interest development is an FHA-approved condominium project. The statement shall be in at least 10-point font on a separate piece of paper and in the following form:
328339
329340 Certification by the Federal Housing Administration may provide benefits to members of an association, including an improvement in an owners ability to refinance a mortgage or obtain secondary financing and an increase in the pool of potential buyers of the separate interest.
330341
331342 This common interest development [is/is not (circle one)] a condominium project. The association of this common interest development [is/is not (circle one)] certified by the Federal Housing Administration.
332343
333344 (11) When the common interest development is a condominium project, a statement describing the status of the common interest development as a federal Department of Veterans Affairs (VA)-approved condominium project pursuant to VA guidelines, including whether the common interest development is a VA-approved condominium project. The statement shall be in at least 10-point font on a separate piece of paper and in the following form:
334345
335346 Certification by the federal Department of Veterans Affairs may provide benefits to members of an association, including an improvement in an owners ability to refinance a mortgage or obtain secondary financing and an increase in the pool of potential buyers of the separate interest.
336347
337348 This common interest development [is/is not (circle one)] a condominium project. The association of this common interest development [is/is not (circle one)] certified by the federal Department of Veterans Affairs.
338349
339350 (12) A copy of the completed Charges For Documents Provided disclosure identified in Section 4528. For purposes of this section, completed means that the Fee for Document section of the form individually identifies the costs associated with providing each document listed on the form.
340351
341352 (c) The annual budget report shall be made available to the members pursuant to Section 5320.
342353
343354 (d) The summary of the associations reserves disclosed pursuant to paragraph (2) of subdivision (b) shall not be admissible in evidence to show improper financial management of an association, provided that other relevant and competent evidence of the financial condition of the association is not made inadmissible by this provision.
344355
345356 (e) The Assessment and Reserve Funding Disclosure Summary form, prepared pursuant to Section 5570, shall accompany each annual budget report or summary of the annual budget report that is delivered pursuant to this article.
346357
347358 SEC. 5. Section 5375 of the Civil Code is amended to read:5375. A prospective managing agent of a common interest development shall provide a written statement to the board as soon as practicable, but in no event more than 90 days, before entering into a management agreement which shall contain all of the following information concerning the managing agent:(a) The names and business addresses of the owners or general partners of the managing agent. If the managing agent is a corporation, the written statement shall include the names and business addresses of the directors and officers and shareholders holding greater than 10 percent of the shares of the corporation.(b) Whether or not any relevant licenses such as architectural design, construction, engineering, real estate, or accounting have been issued by this state and are currently held by the persons specified in subdivision (a). If a license is currently held by any of those persons, the statement shall contain the following information:(1) What license is held.(2) The dates the license is valid.(3) The name of the licensee appearing on that license.(c) Whether or not any relevant professional certifications or designations such as architectural design, construction, engineering, real property management, or accounting are currently held by any of the persons specified in subdivision (a), including, but not limited to, a professional common interest development manager. If any certification or designation is held, the statement shall include the following information:(1) What the certification or designation is and what entity issued it.(2) The dates the certification or designation is valid.(3) The names in which the certification or designation is held.(d) Disclose any business or company in which the common interest development manager or common interest development management firm has any ownership interests, profit-sharing arrangements, or other monetary incentives provided to the management firm or managing agent.(e) Whether or not the common interest development manager or common interest development management firm receives a referral fee or other monetary benefit from a third-party provider distributing documents pursuant to Sections 4528 and 4530.
348359
349360 SEC. 5. Section 5375 of the Civil Code is amended to read:
350361
351362 ### SEC. 5.
352363
353364 5375. A prospective managing agent of a common interest development shall provide a written statement to the board as soon as practicable, but in no event more than 90 days, before entering into a management agreement which shall contain all of the following information concerning the managing agent:(a) The names and business addresses of the owners or general partners of the managing agent. If the managing agent is a corporation, the written statement shall include the names and business addresses of the directors and officers and shareholders holding greater than 10 percent of the shares of the corporation.(b) Whether or not any relevant licenses such as architectural design, construction, engineering, real estate, or accounting have been issued by this state and are currently held by the persons specified in subdivision (a). If a license is currently held by any of those persons, the statement shall contain the following information:(1) What license is held.(2) The dates the license is valid.(3) The name of the licensee appearing on that license.(c) Whether or not any relevant professional certifications or designations such as architectural design, construction, engineering, real property management, or accounting are currently held by any of the persons specified in subdivision (a), including, but not limited to, a professional common interest development manager. If any certification or designation is held, the statement shall include the following information:(1) What the certification or designation is and what entity issued it.(2) The dates the certification or designation is valid.(3) The names in which the certification or designation is held.(d) Disclose any business or company in which the common interest development manager or common interest development management firm has any ownership interests, profit-sharing arrangements, or other monetary incentives provided to the management firm or managing agent.(e) Whether or not the common interest development manager or common interest development management firm receives a referral fee or other monetary benefit from a third-party provider distributing documents pursuant to Sections 4528 and 4530.
354365
355366 5375. A prospective managing agent of a common interest development shall provide a written statement to the board as soon as practicable, but in no event more than 90 days, before entering into a management agreement which shall contain all of the following information concerning the managing agent:(a) The names and business addresses of the owners or general partners of the managing agent. If the managing agent is a corporation, the written statement shall include the names and business addresses of the directors and officers and shareholders holding greater than 10 percent of the shares of the corporation.(b) Whether or not any relevant licenses such as architectural design, construction, engineering, real estate, or accounting have been issued by this state and are currently held by the persons specified in subdivision (a). If a license is currently held by any of those persons, the statement shall contain the following information:(1) What license is held.(2) The dates the license is valid.(3) The name of the licensee appearing on that license.(c) Whether or not any relevant professional certifications or designations such as architectural design, construction, engineering, real property management, or accounting are currently held by any of the persons specified in subdivision (a), including, but not limited to, a professional common interest development manager. If any certification or designation is held, the statement shall include the following information:(1) What the certification or designation is and what entity issued it.(2) The dates the certification or designation is valid.(3) The names in which the certification or designation is held.(d) Disclose any business or company in which the common interest development manager or common interest development management firm has any ownership interests, profit-sharing arrangements, or other monetary incentives provided to the management firm or managing agent.(e) Whether or not the common interest development manager or common interest development management firm receives a referral fee or other monetary benefit from a third-party provider distributing documents pursuant to Sections 4528 and 4530.
356367
357368 5375. A prospective managing agent of a common interest development shall provide a written statement to the board as soon as practicable, but in no event more than 90 days, before entering into a management agreement which shall contain all of the following information concerning the managing agent:(a) The names and business addresses of the owners or general partners of the managing agent. If the managing agent is a corporation, the written statement shall include the names and business addresses of the directors and officers and shareholders holding greater than 10 percent of the shares of the corporation.(b) Whether or not any relevant licenses such as architectural design, construction, engineering, real estate, or accounting have been issued by this state and are currently held by the persons specified in subdivision (a). If a license is currently held by any of those persons, the statement shall contain the following information:(1) What license is held.(2) The dates the license is valid.(3) The name of the licensee appearing on that license.(c) Whether or not any relevant professional certifications or designations such as architectural design, construction, engineering, real property management, or accounting are currently held by any of the persons specified in subdivision (a), including, but not limited to, a professional common interest development manager. If any certification or designation is held, the statement shall include the following information:(1) What the certification or designation is and what entity issued it.(2) The dates the certification or designation is valid.(3) The names in which the certification or designation is held.(d) Disclose any business or company in which the common interest development manager or common interest development management firm has any ownership interests, profit-sharing arrangements, or other monetary incentives provided to the management firm or managing agent.(e) Whether or not the common interest development manager or common interest development management firm receives a referral fee or other monetary benefit from a third-party provider distributing documents pursuant to Sections 4528 and 4530.
358369
359370
360371
361372 5375. A prospective managing agent of a common interest development shall provide a written statement to the board as soon as practicable, but in no event more than 90 days, before entering into a management agreement which shall contain all of the following information concerning the managing agent:
362373
363374 (a) The names and business addresses of the owners or general partners of the managing agent. If the managing agent is a corporation, the written statement shall include the names and business addresses of the directors and officers and shareholders holding greater than 10 percent of the shares of the corporation.
364375
365376 (b) Whether or not any relevant licenses such as architectural design, construction, engineering, real estate, or accounting have been issued by this state and are currently held by the persons specified in subdivision (a). If a license is currently held by any of those persons, the statement shall contain the following information:
366377
367378 (1) What license is held.
368379
369380 (2) The dates the license is valid.
370381
371382 (3) The name of the licensee appearing on that license.
372383
373384 (c) Whether or not any relevant professional certifications or designations such as architectural design, construction, engineering, real property management, or accounting are currently held by any of the persons specified in subdivision (a), including, but not limited to, a professional common interest development manager. If any certification or designation is held, the statement shall include the following information:
374385
375386 (1) What the certification or designation is and what entity issued it.
376387
377388 (2) The dates the certification or designation is valid.
378389
379390 (3) The names in which the certification or designation is held.
380391
381392 (d) Disclose any business or company in which the common interest development manager or common interest development management firm has any ownership interests, profit-sharing arrangements, or other monetary incentives provided to the management firm or managing agent.
382393
383394 (e) Whether or not the common interest development manager or common interest development management firm receives a referral fee or other monetary benefit from a third-party provider distributing documents pursuant to Sections 4528 and 4530.
384395
385396 SEC. 6. Section 5375.5 is added to the Civil Code, to read:5375.5. A common interest development manager or common interest development management firm shall disclose, in writing, any potential conflict of interest when presenting a bid for service to an associations board of directors. Conflict of interest, for purposes of this section, means: (a) Any referral fee or other monetary benefit that could be derived from a business or company providing products or services to the association.(b) Any ownership interests or profit-sharing arrangements with service providers recommended to, or used by, the association.
386397
387398 SEC. 6. Section 5375.5 is added to the Civil Code, to read:
388399
389400 ### SEC. 6.
390401
391402 5375.5. A common interest development manager or common interest development management firm shall disclose, in writing, any potential conflict of interest when presenting a bid for service to an associations board of directors. Conflict of interest, for purposes of this section, means: (a) Any referral fee or other monetary benefit that could be derived from a business or company providing products or services to the association.(b) Any ownership interests or profit-sharing arrangements with service providers recommended to, or used by, the association.
392403
393404 5375.5. A common interest development manager or common interest development management firm shall disclose, in writing, any potential conflict of interest when presenting a bid for service to an associations board of directors. Conflict of interest, for purposes of this section, means: (a) Any referral fee or other monetary benefit that could be derived from a business or company providing products or services to the association.(b) Any ownership interests or profit-sharing arrangements with service providers recommended to, or used by, the association.
394405
395406 5375.5. A common interest development manager or common interest development management firm shall disclose, in writing, any potential conflict of interest when presenting a bid for service to an associations board of directors. Conflict of interest, for purposes of this section, means: (a) Any referral fee or other monetary benefit that could be derived from a business or company providing products or services to the association.(b) Any ownership interests or profit-sharing arrangements with service providers recommended to, or used by, the association.
396407
397408
398409
399410 5375.5. A common interest development manager or common interest development management firm shall disclose, in writing, any potential conflict of interest when presenting a bid for service to an associations board of directors. Conflict of interest, for purposes of this section, means:
400411
401412 (a) Any referral fee or other monetary benefit that could be derived from a business or company providing products or services to the association.
402413
403414 (b) Any ownership interests or profit-sharing arrangements with service providers recommended to, or used by, the association.
404415
405416 SEC. 7. Section 5376 is added to the Civil Code, to read:5376. The common interest development manager, common interest development management firm, or its contracted third-party agent shall facilitate the delivery of disclosures required pursuant to paragraph (1) of subdivision (a), paragraph (2) of subdivision (b), and subdivision (d), of Section 4530 if the common interest development manager, or common interest development management firm, is contractually responsible for delivering those documents.
406417
407418 SEC. 7. Section 5376 is added to the Civil Code, to read:
408419
409420 ### SEC. 7.
410421
411422 5376. The common interest development manager, common interest development management firm, or its contracted third-party agent shall facilitate the delivery of disclosures required pursuant to paragraph (1) of subdivision (a), paragraph (2) of subdivision (b), and subdivision (d), of Section 4530 if the common interest development manager, or common interest development management firm, is contractually responsible for delivering those documents.
412423
413424 5376. The common interest development manager, common interest development management firm, or its contracted third-party agent shall facilitate the delivery of disclosures required pursuant to paragraph (1) of subdivision (a), paragraph (2) of subdivision (b), and subdivision (d), of Section 4530 if the common interest development manager, or common interest development management firm, is contractually responsible for delivering those documents.
414425
415426 5376. The common interest development manager, common interest development management firm, or its contracted third-party agent shall facilitate the delivery of disclosures required pursuant to paragraph (1) of subdivision (a), paragraph (2) of subdivision (b), and subdivision (d), of Section 4530 if the common interest development manager, or common interest development management firm, is contractually responsible for delivering those documents.
416427
417428
418429
419430 5376. The common interest development manager, common interest development management firm, or its contracted third-party agent shall facilitate the delivery of disclosures required pursuant to paragraph (1) of subdivision (a), paragraph (2) of subdivision (b), and subdivision (d), of Section 4530 if the common interest development manager, or common interest development management firm, is contractually responsible for delivering those documents.