Amended IN Senate July 27, 2020 Amended IN Senate July 15, 2020 Amended IN Assembly May 07, 2020 Amended IN Assembly May 04, 2020 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 3182Introduced by Assembly Member TingFebruary 21, 2020 An act to amend Section 4740 of the Civil Code, relating to common interest developments.LEGISLATIVE COUNSEL'S DIGESTAB 3182, as amended, Ting. Common interest developments: governing documents: rental or leasing of separate interests.Existing law, the Davis-Stirling Common Interest Development Act, defines and regulates common interest developments. Existing law provides that an owner of a separate interest in a common interest development shall not be subject to a provision in a governing document or an amendment to a governing document that prohibits the rental or leasing of any separate interest in that common interest development to a renter, lessee, or tenant unless that governing document, or amendment thereto, was effective before the date the owner acquired title to the owners separate interest. Existing law permits an owner of a separate interest of a common interest development, despite the above provision, to expressly consent to be subject to a governing document or an amendment to a governing document that prohibits the rental or leasing of any of the separate interests in the common interest development to a renter, lessee, or tenant. Existing law makes these provisions applicable only to a provision in a governing document or a provision in an amendment to a governing document that became effective on or after January 1, 2012.This bill would recast those provisions to instead provide that an owner of a separate interest in a common interest development is not subject to a provision in a governing document or an amendment to a governing document that prohibits, has the effect of prohibiting, or unreasonably restricts the rental or leasing of any of the separate interests, accessory dwelling units, or junior accessory dwelling units in that common interest development to a renter, lessee, or tenant, except as otherwise provided. The bill would specify that the bills these provisions do not prohibit a common interest development from adopting a provision in a governing document that prohibits transient or short-term rentals of 30 days or less or adopting reasonable rental restrictions that have the effect of limiting the total number of rentals to 25% of the separate interests in the common interest development, subject to certain exceptions. or a higher percentage, subject to certain conditions.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 4740 of the Civil Code is amended to read:4740. (a) Except as otherwise provided in this section, an owner of a separate interest in a common interest development shall not be subject to a provision in a governing document or an amendment to a governing document that prohibits, has the effect of prohibiting, or unreasonably restricts the rental or leasing of any of the separate interests, accessory dwelling units, or junior accessory dwelling units in that common interest development to a renter, lessee, or tenant.(b) Notwithstanding any other provision of this section, a common interest development is not prohibited from doing either of the following:(1) Adopting a provision in a government governing document that prohibits transient or short-term rental of a separate property interest for a period of 30 days or less.(2) Adopting reasonable rental restrictions that have the effect of limiting the total number of rentals to 25 percent of the separate interests in the common interest development. An association A common interest development may adopt a higher percentage to do any of the following:(A) Facilitate buyers to qualify for loans insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs, the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation.(B) Facilitate association loan financing. loan financing for the common interest development.(C) Facilitate obtaining or maintenance of insurance at industry-recognized community association rates.(c) For the purposes of this section, an accessory dwelling unit or a junior accessory dwelling unit shall not be construed as a separate interest and shall not be subject to any rental percentage cap in a governing document or an amendment to a governing document. (d) For purposes of this section, the right to rent or lease the separate interest of an owner shall not be deemed to have terminated if the transfer by the owner of all or part of the separate interest meets at least one of the following conditions:(1) Pursuant to Section 62 or Section 480.3 of the Revenue and Taxation Code, the transfer is exempt, for purposes of reassessment by the county tax assessor.(2) Pursuant to subdivision (b) of, solely with respect to probate transfers, or subdivision (e), (f), or (g) of, Section 1102.2, the transfer is exempt from the requirements to prepare and deliver a Real Estate Transfer Disclosure Statement, as set forth in Section 1102.6.(e) Before an owner rents or leases their separate interest as provided in this section, the owner shall provide the association common interest development with verification of the date the owner acquired title to the separate interest and the name and contact information of the prospective tenant or lessee or the prospective tenants or lessees representative.(f) Nothing in this section shall be deemed to revise, alter, or otherwise affect the voting process by which a common interest development adopts or amends its governing documents.
Amended IN Senate July 27, 2020 Amended IN Senate July 15, 2020 Amended IN Assembly May 07, 2020 Amended IN Assembly May 04, 2020 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 3182Introduced by Assembly Member TingFebruary 21, 2020 An act to amend Section 4740 of the Civil Code, relating to common interest developments.LEGISLATIVE COUNSEL'S DIGESTAB 3182, as amended, Ting. Common interest developments: governing documents: rental or leasing of separate interests.Existing law, the Davis-Stirling Common Interest Development Act, defines and regulates common interest developments. Existing law provides that an owner of a separate interest in a common interest development shall not be subject to a provision in a governing document or an amendment to a governing document that prohibits the rental or leasing of any separate interest in that common interest development to a renter, lessee, or tenant unless that governing document, or amendment thereto, was effective before the date the owner acquired title to the owners separate interest. Existing law permits an owner of a separate interest of a common interest development, despite the above provision, to expressly consent to be subject to a governing document or an amendment to a governing document that prohibits the rental or leasing of any of the separate interests in the common interest development to a renter, lessee, or tenant. Existing law makes these provisions applicable only to a provision in a governing document or a provision in an amendment to a governing document that became effective on or after January 1, 2012.This bill would recast those provisions to instead provide that an owner of a separate interest in a common interest development is not subject to a provision in a governing document or an amendment to a governing document that prohibits, has the effect of prohibiting, or unreasonably restricts the rental or leasing of any of the separate interests, accessory dwelling units, or junior accessory dwelling units in that common interest development to a renter, lessee, or tenant, except as otherwise provided. The bill would specify that the bills these provisions do not prohibit a common interest development from adopting a provision in a governing document that prohibits transient or short-term rentals of 30 days or less or adopting reasonable rental restrictions that have the effect of limiting the total number of rentals to 25% of the separate interests in the common interest development, subject to certain exceptions. or a higher percentage, subject to certain conditions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
Amended IN Senate July 27, 2020 Amended IN Senate July 15, 2020 Amended IN Assembly May 07, 2020 Amended IN Assembly May 04, 2020
Amended IN Senate July 27, 2020
Amended IN Senate July 15, 2020
Amended IN Assembly May 07, 2020
Amended IN Assembly May 04, 2020
CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION
Assembly Bill
No. 3182
Introduced by Assembly Member TingFebruary 21, 2020
Introduced by Assembly Member Ting
February 21, 2020
An act to amend Section 4740 of the Civil Code, relating to common interest developments.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 3182, as amended, Ting. Common interest developments: governing documents: rental or leasing of separate interests.
Existing law, the Davis-Stirling Common Interest Development Act, defines and regulates common interest developments. Existing law provides that an owner of a separate interest in a common interest development shall not be subject to a provision in a governing document or an amendment to a governing document that prohibits the rental or leasing of any separate interest in that common interest development to a renter, lessee, or tenant unless that governing document, or amendment thereto, was effective before the date the owner acquired title to the owners separate interest. Existing law permits an owner of a separate interest of a common interest development, despite the above provision, to expressly consent to be subject to a governing document or an amendment to a governing document that prohibits the rental or leasing of any of the separate interests in the common interest development to a renter, lessee, or tenant. Existing law makes these provisions applicable only to a provision in a governing document or a provision in an amendment to a governing document that became effective on or after January 1, 2012.This bill would recast those provisions to instead provide that an owner of a separate interest in a common interest development is not subject to a provision in a governing document or an amendment to a governing document that prohibits, has the effect of prohibiting, or unreasonably restricts the rental or leasing of any of the separate interests, accessory dwelling units, or junior accessory dwelling units in that common interest development to a renter, lessee, or tenant, except as otherwise provided. The bill would specify that the bills these provisions do not prohibit a common interest development from adopting a provision in a governing document that prohibits transient or short-term rentals of 30 days or less or adopting reasonable rental restrictions that have the effect of limiting the total number of rentals to 25% of the separate interests in the common interest development, subject to certain exceptions. or a higher percentage, subject to certain conditions.
Existing law, the Davis-Stirling Common Interest Development Act, defines and regulates common interest developments. Existing law provides that an owner of a separate interest in a common interest development shall not be subject to a provision in a governing document or an amendment to a governing document that prohibits the rental or leasing of any separate interest in that common interest development to a renter, lessee, or tenant unless that governing document, or amendment thereto, was effective before the date the owner acquired title to the owners separate interest. Existing law permits an owner of a separate interest of a common interest development, despite the above provision, to expressly consent to be subject to a governing document or an amendment to a governing document that prohibits the rental or leasing of any of the separate interests in the common interest development to a renter, lessee, or tenant. Existing law makes these provisions applicable only to a provision in a governing document or a provision in an amendment to a governing document that became effective on or after January 1, 2012.
This bill would recast those provisions to instead provide that an owner of a separate interest in a common interest development is not subject to a provision in a governing document or an amendment to a governing document that prohibits, has the effect of prohibiting, or unreasonably restricts the rental or leasing of any of the separate interests, accessory dwelling units, or junior accessory dwelling units in that common interest development to a renter, lessee, or tenant, except as otherwise provided. The bill would specify that the bills these provisions do not prohibit a common interest development from adopting a provision in a governing document that prohibits transient or short-term rentals of 30 days or less or adopting reasonable rental restrictions that have the effect of limiting the total number of rentals to 25% of the separate interests in the common interest development, subject to certain exceptions. or a higher percentage, subject to certain conditions.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 4740 of the Civil Code is amended to read:4740. (a) Except as otherwise provided in this section, an owner of a separate interest in a common interest development shall not be subject to a provision in a governing document or an amendment to a governing document that prohibits, has the effect of prohibiting, or unreasonably restricts the rental or leasing of any of the separate interests, accessory dwelling units, or junior accessory dwelling units in that common interest development to a renter, lessee, or tenant.(b) Notwithstanding any other provision of this section, a common interest development is not prohibited from doing either of the following:(1) Adopting a provision in a government governing document that prohibits transient or short-term rental of a separate property interest for a period of 30 days or less.(2) Adopting reasonable rental restrictions that have the effect of limiting the total number of rentals to 25 percent of the separate interests in the common interest development. An association A common interest development may adopt a higher percentage to do any of the following:(A) Facilitate buyers to qualify for loans insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs, the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation.(B) Facilitate association loan financing. loan financing for the common interest development.(C) Facilitate obtaining or maintenance of insurance at industry-recognized community association rates.(c) For the purposes of this section, an accessory dwelling unit or a junior accessory dwelling unit shall not be construed as a separate interest and shall not be subject to any rental percentage cap in a governing document or an amendment to a governing document. (d) For purposes of this section, the right to rent or lease the separate interest of an owner shall not be deemed to have terminated if the transfer by the owner of all or part of the separate interest meets at least one of the following conditions:(1) Pursuant to Section 62 or Section 480.3 of the Revenue and Taxation Code, the transfer is exempt, for purposes of reassessment by the county tax assessor.(2) Pursuant to subdivision (b) of, solely with respect to probate transfers, or subdivision (e), (f), or (g) of, Section 1102.2, the transfer is exempt from the requirements to prepare and deliver a Real Estate Transfer Disclosure Statement, as set forth in Section 1102.6.(e) Before an owner rents or leases their separate interest as provided in this section, the owner shall provide the association common interest development with verification of the date the owner acquired title to the separate interest and the name and contact information of the prospective tenant or lessee or the prospective tenants or lessees representative.(f) Nothing in this section shall be deemed to revise, alter, or otherwise affect the voting process by which a common interest development adopts or amends its governing documents.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 4740 of the Civil Code is amended to read:4740. (a) Except as otherwise provided in this section, an owner of a separate interest in a common interest development shall not be subject to a provision in a governing document or an amendment to a governing document that prohibits, has the effect of prohibiting, or unreasonably restricts the rental or leasing of any of the separate interests, accessory dwelling units, or junior accessory dwelling units in that common interest development to a renter, lessee, or tenant.(b) Notwithstanding any other provision of this section, a common interest development is not prohibited from doing either of the following:(1) Adopting a provision in a government governing document that prohibits transient or short-term rental of a separate property interest for a period of 30 days or less.(2) Adopting reasonable rental restrictions that have the effect of limiting the total number of rentals to 25 percent of the separate interests in the common interest development. An association A common interest development may adopt a higher percentage to do any of the following:(A) Facilitate buyers to qualify for loans insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs, the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation.(B) Facilitate association loan financing. loan financing for the common interest development.(C) Facilitate obtaining or maintenance of insurance at industry-recognized community association rates.(c) For the purposes of this section, an accessory dwelling unit or a junior accessory dwelling unit shall not be construed as a separate interest and shall not be subject to any rental percentage cap in a governing document or an amendment to a governing document. (d) For purposes of this section, the right to rent or lease the separate interest of an owner shall not be deemed to have terminated if the transfer by the owner of all or part of the separate interest meets at least one of the following conditions:(1) Pursuant to Section 62 or Section 480.3 of the Revenue and Taxation Code, the transfer is exempt, for purposes of reassessment by the county tax assessor.(2) Pursuant to subdivision (b) of, solely with respect to probate transfers, or subdivision (e), (f), or (g) of, Section 1102.2, the transfer is exempt from the requirements to prepare and deliver a Real Estate Transfer Disclosure Statement, as set forth in Section 1102.6.(e) Before an owner rents or leases their separate interest as provided in this section, the owner shall provide the association common interest development with verification of the date the owner acquired title to the separate interest and the name and contact information of the prospective tenant or lessee or the prospective tenants or lessees representative.(f) Nothing in this section shall be deemed to revise, alter, or otherwise affect the voting process by which a common interest development adopts or amends its governing documents.
SECTION 1. Section 4740 of the Civil Code is amended to read:
### SECTION 1.
4740. (a) Except as otherwise provided in this section, an owner of a separate interest in a common interest development shall not be subject to a provision in a governing document or an amendment to a governing document that prohibits, has the effect of prohibiting, or unreasonably restricts the rental or leasing of any of the separate interests, accessory dwelling units, or junior accessory dwelling units in that common interest development to a renter, lessee, or tenant.(b) Notwithstanding any other provision of this section, a common interest development is not prohibited from doing either of the following:(1) Adopting a provision in a government governing document that prohibits transient or short-term rental of a separate property interest for a period of 30 days or less.(2) Adopting reasonable rental restrictions that have the effect of limiting the total number of rentals to 25 percent of the separate interests in the common interest development. An association A common interest development may adopt a higher percentage to do any of the following:(A) Facilitate buyers to qualify for loans insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs, the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation.(B) Facilitate association loan financing. loan financing for the common interest development.(C) Facilitate obtaining or maintenance of insurance at industry-recognized community association rates.(c) For the purposes of this section, an accessory dwelling unit or a junior accessory dwelling unit shall not be construed as a separate interest and shall not be subject to any rental percentage cap in a governing document or an amendment to a governing document. (d) For purposes of this section, the right to rent or lease the separate interest of an owner shall not be deemed to have terminated if the transfer by the owner of all or part of the separate interest meets at least one of the following conditions:(1) Pursuant to Section 62 or Section 480.3 of the Revenue and Taxation Code, the transfer is exempt, for purposes of reassessment by the county tax assessor.(2) Pursuant to subdivision (b) of, solely with respect to probate transfers, or subdivision (e), (f), or (g) of, Section 1102.2, the transfer is exempt from the requirements to prepare and deliver a Real Estate Transfer Disclosure Statement, as set forth in Section 1102.6.(e) Before an owner rents or leases their separate interest as provided in this section, the owner shall provide the association common interest development with verification of the date the owner acquired title to the separate interest and the name and contact information of the prospective tenant or lessee or the prospective tenants or lessees representative.(f) Nothing in this section shall be deemed to revise, alter, or otherwise affect the voting process by which a common interest development adopts or amends its governing documents.
4740. (a) Except as otherwise provided in this section, an owner of a separate interest in a common interest development shall not be subject to a provision in a governing document or an amendment to a governing document that prohibits, has the effect of prohibiting, or unreasonably restricts the rental or leasing of any of the separate interests, accessory dwelling units, or junior accessory dwelling units in that common interest development to a renter, lessee, or tenant.(b) Notwithstanding any other provision of this section, a common interest development is not prohibited from doing either of the following:(1) Adopting a provision in a government governing document that prohibits transient or short-term rental of a separate property interest for a period of 30 days or less.(2) Adopting reasonable rental restrictions that have the effect of limiting the total number of rentals to 25 percent of the separate interests in the common interest development. An association A common interest development may adopt a higher percentage to do any of the following:(A) Facilitate buyers to qualify for loans insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs, the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation.(B) Facilitate association loan financing. loan financing for the common interest development.(C) Facilitate obtaining or maintenance of insurance at industry-recognized community association rates.(c) For the purposes of this section, an accessory dwelling unit or a junior accessory dwelling unit shall not be construed as a separate interest and shall not be subject to any rental percentage cap in a governing document or an amendment to a governing document. (d) For purposes of this section, the right to rent or lease the separate interest of an owner shall not be deemed to have terminated if the transfer by the owner of all or part of the separate interest meets at least one of the following conditions:(1) Pursuant to Section 62 or Section 480.3 of the Revenue and Taxation Code, the transfer is exempt, for purposes of reassessment by the county tax assessor.(2) Pursuant to subdivision (b) of, solely with respect to probate transfers, or subdivision (e), (f), or (g) of, Section 1102.2, the transfer is exempt from the requirements to prepare and deliver a Real Estate Transfer Disclosure Statement, as set forth in Section 1102.6.(e) Before an owner rents or leases their separate interest as provided in this section, the owner shall provide the association common interest development with verification of the date the owner acquired title to the separate interest and the name and contact information of the prospective tenant or lessee or the prospective tenants or lessees representative.(f) Nothing in this section shall be deemed to revise, alter, or otherwise affect the voting process by which a common interest development adopts or amends its governing documents.
4740. (a) Except as otherwise provided in this section, an owner of a separate interest in a common interest development shall not be subject to a provision in a governing document or an amendment to a governing document that prohibits, has the effect of prohibiting, or unreasonably restricts the rental or leasing of any of the separate interests, accessory dwelling units, or junior accessory dwelling units in that common interest development to a renter, lessee, or tenant.(b) Notwithstanding any other provision of this section, a common interest development is not prohibited from doing either of the following:(1) Adopting a provision in a government governing document that prohibits transient or short-term rental of a separate property interest for a period of 30 days or less.(2) Adopting reasonable rental restrictions that have the effect of limiting the total number of rentals to 25 percent of the separate interests in the common interest development. An association A common interest development may adopt a higher percentage to do any of the following:(A) Facilitate buyers to qualify for loans insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs, the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation.(B) Facilitate association loan financing. loan financing for the common interest development.(C) Facilitate obtaining or maintenance of insurance at industry-recognized community association rates.(c) For the purposes of this section, an accessory dwelling unit or a junior accessory dwelling unit shall not be construed as a separate interest and shall not be subject to any rental percentage cap in a governing document or an amendment to a governing document. (d) For purposes of this section, the right to rent or lease the separate interest of an owner shall not be deemed to have terminated if the transfer by the owner of all or part of the separate interest meets at least one of the following conditions:(1) Pursuant to Section 62 or Section 480.3 of the Revenue and Taxation Code, the transfer is exempt, for purposes of reassessment by the county tax assessor.(2) Pursuant to subdivision (b) of, solely with respect to probate transfers, or subdivision (e), (f), or (g) of, Section 1102.2, the transfer is exempt from the requirements to prepare and deliver a Real Estate Transfer Disclosure Statement, as set forth in Section 1102.6.(e) Before an owner rents or leases their separate interest as provided in this section, the owner shall provide the association common interest development with verification of the date the owner acquired title to the separate interest and the name and contact information of the prospective tenant or lessee or the prospective tenants or lessees representative.(f) Nothing in this section shall be deemed to revise, alter, or otherwise affect the voting process by which a common interest development adopts or amends its governing documents.
4740. (a) Except as otherwise provided in this section, an owner of a separate interest in a common interest development shall not be subject to a provision in a governing document or an amendment to a governing document that prohibits, has the effect of prohibiting, or unreasonably restricts the rental or leasing of any of the separate interests, accessory dwelling units, or junior accessory dwelling units in that common interest development to a renter, lessee, or tenant.
(b) Notwithstanding any other provision of this section, a common interest development is not prohibited from doing either of the following:
(1) Adopting a provision in a government governing document that prohibits transient or short-term rental of a separate property interest for a period of 30 days or less.
(2) Adopting reasonable rental restrictions that have the effect of limiting the total number of rentals to 25 percent of the separate interests in the common interest development. An association A common interest development may adopt a higher percentage to do any of the following:
(A) Facilitate buyers to qualify for loans insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs, the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation.
(B) Facilitate association loan financing. loan financing for the common interest development.
(C) Facilitate obtaining or maintenance of insurance at industry-recognized community association rates.
(c) For the purposes of this section, an accessory dwelling unit or a junior accessory dwelling unit shall not be construed as a separate interest and shall not be subject to any rental percentage cap in a governing document or an amendment to a governing document.
(d) For purposes of this section, the right to rent or lease the separate interest of an owner shall not be deemed to have terminated if the transfer by the owner of all or part of the separate interest meets at least one of the following conditions:
(1) Pursuant to Section 62 or Section 480.3 of the Revenue and Taxation Code, the transfer is exempt, for purposes of reassessment by the county tax assessor.
(2) Pursuant to subdivision (b) of, solely with respect to probate transfers, or subdivision (e), (f), or (g) of, Section 1102.2, the transfer is exempt from the requirements to prepare and deliver a Real Estate Transfer Disclosure Statement, as set forth in Section 1102.6.
(e) Before an owner rents or leases their separate interest as provided in this section, the owner shall provide the association common interest development with verification of the date the owner acquired title to the separate interest and the name and contact information of the prospective tenant or lessee or the prospective tenants or lessees representative.
(f) Nothing in this section shall be deemed to revise, alter, or otherwise affect the voting process by which a common interest development adopts or amends its governing documents.