California 2019 2019-2020 Regular Session

California Senate Bill SB326 Amended / Bill

Filed 03/27/2019

                    Amended IN  Senate  March 27, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 326Introduced by Senator HillFebruary 15, 2019 An act to amend Section 1622 of the Civil Code, relating to civil law. An act to add Sections 4770, 5551, and 5986 to the Civil Code, relating to civil law.LEGISLATIVE COUNSEL'S DIGESTSB 326, as amended, Hill. Contracts. Common interest developments.The Davis-Stirling Common Interest Development Act governs the management and operation of common interest developments. Existing law also sets forth the duties and responsibilities of the association and the owners of the separate interests with regard to maintenance and repair of common and exclusive use areas, as defined. Unless otherwise provided in the common interest development declaration, the association is generally responsible for maintaining, repairing, and replacing the common area, and the owner of each separate interest is responsible for maintaining that separate interest and any exclusive use common area appurtenant to that interest.This bill would require the association of a condominium project to cause a reasonably competent and diligent visual inspection of the load-bearing components and associated waterproofing systems, as specified, to determine whether the exterior elevated elements are in a generally safe condition and performing in compliance with specified standards. The bill would require the inspector to submit a report to the board of the association providing specified information, including the current physical condition and remaining useful life of the load-bearing components and associated waterproofing systems.The bill would require a declarant or the developer of a condominium project to submit a complete set of architectural and structural plans and specifications to an association for any buildings containing exterior elevated elements, as specified.The act provides that an association has standing to institute, defend, settle, or intervene in litigation, arbitration, mediation, or administrative proceedings in its own name as the real party in interest and without joining with its members in specified matters, including enforcement of the governing documents.The bill would require the board to make the determination of whether and when an association may commence legal proceedings against a declarant, developer, or builder of a common interest development, except as specified. The bill would, with certain exceptions, prohibit an associations governing documents from limiting a boards authority to commence legal proceedings against a declarant, developer, or builder of a common interest development. The bill would make these provisions applicable to governing documents and claims initiated before the effective date of this bill.Existing law specifies that all contracts may be oral, except those that are specially required by statute to be in writing.This bill would make a nonsubstantive change to that provision.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 4770 is added to the Civil Code, to read:4770. (a) Prior to the close of escrow for the first sale of a separate interest in a condominium project to a member of the general public, the declarant or developer shall provide a complete record set of architectural and structural plans and specifications to the association for each building containing exterior elevated elements, as defined in Section 5551.(b) If a declarant owns property in a condominium project on January 1, 2020, and has not provided a complete record set of architectural and structural plans and specifications to the association for a building that contains exterior elevated elements, it shall submit the plans and specifications to the association by March 31, 2020.SEC. 2. Section 5551 is added to the Civil Code, to read:5551. (a) For purposes of this section, the following definitions apply:(1) Associated waterproofing systems include flashings, membranes, coatings, and sealants that protect the load-bearing components of exterior elevated elements from exposure to water.(2) Exterior elevated elements mean the load-bearing components together with their associated waterproofing system.(3) Load-bearing components means those components that extend beyond the exterior walls of the building to deliver structural loads from the exterior elevated element to the building, including, but not limited to, decks, balconies, stairways, walkways, and their railings.(4) Visual inspection means inspection through the least intrusive method necessary to inspect load-bearing components, including visual observation only or visual observation in conjunction with, for example, the use of moisture meters, borescopes, or infrared technology.(b) (1) At least once every nine years, the board of an association of a condominium project shall cause a reasonably competent and diligent visual inspection to be conducted by a licensed structural engineer or architect of a random and statistically significant sample of the load-bearing components and associated waterproofing systems for which the association has maintenance or repair responsibility.(1) The identification of the building components comprising the load-bearing components and associated waterproofing system.(2) The current physical condition of the load-bearing components and associated waterproofing system, including whether the condition presents an immediate threat to the health and safety of the residents.(3) The expected future performance and remaining useful life of the load-bearing components and associated waterproofing system.(4) Recommendations of any necessary repair or replacement of the load-bearing components and associated waterproofing system.(f) The report issued pursuant to subdivision (e) shall be stamped or signed by the inspector, presented to the board, and incorporated into the study required by Section 5550.(g) Each subsequent visual inspection conducted under this section shall commence with the next exterior elevated element identified on the random list and shall proceed in order through the list.(h) The first inspection shall be completed by January 1, 2025, and then every nine years thereafter in coordination with the reserve study inspection pursuant to Section 5550. All written reports shall be permanently maintained as records of the association.(i) (1) The association shall be responsible for complying with the requirements of this section.(2) The continued and ongoing maintenance of the load-bearing components and associated waterproofing systems in a safe, functional, and sanitary condition shall be the responsibility of the association as required by the associations governing documents.(j) The inspection of buildings for which a building permit application has been submitted on or after January 1, 2020, shall occur no later than six years following the issuance of a certificate of occupancy. The inspection shall otherwise comply with the provisions of this section.SEC. 3. Section 5986 is added to the Civil Code, immediately following Section 5985, to read:5986. (a) Subject to compliance with Section 6150 and any other applicable procedural requirements and notwithstanding any provision to the contrary in the governing documents, the board shall make the determination of whether and when an association may commence a claim, civil action, arbitration, prelitigation process pursuant to Section 6000 or Title 7 (commencing with Section 895) of Part 2 of Division 2, or other legal proceeding against a declarant, developer, or builder of a common interest development. If the board includes members appointed by, or affiliated with, the declarant, developer, or builder, the decision and authority to commence and pursue legal proceedings shall be vested solely in the nonaffiliated board members.(b) The governing documents shall not impose any preconditions or limitations on the boards authority to commence and pursue any claim, civil action, arbitration, prelitigation process pursuant to Section 6000 or Title 7 (commencing with Section 895) of Part 2 of Division 2, or other legal proceeding against a declarant, developer, or builder of a common interest development. Any limitation or precondition, including, but not limited to, requiring a membership vote as a prerequisite to, or otherwise providing the declarant, developer, or builder with veto authority over, the boards commencement and pursuit of a claim, civil action, arbitration, prelitigation process, or legal proceeding against the declarant, developer, or builder, or any incidental decision of the board, including, but not limited to, retaining legal counsel or incurring costs or expenses, is unenforceable, null, and void. The failure to comply with those limitations or preconditions, if only, shall not be asserted as a defense to any claim or action described in this section.(c) Notwithstanding subdivision (b), any provision in the governing documents imposing limitations or preconditions on the boards authority to commence and pursue claims shall be valid and enforceable if the provision is adopted by the nondeclarant affiliated members of the association after the declarant has relinquished control of the board and no longer owns a majority of units in the association and the provision is adopted in accordance with the requirements necessary to amend the governing documents of the association.(d) This section applies to all governing documents, whether recorded before or after the effective date of this section, and applies retroactively to any claims initiated before the effective date of this section.SECTION 1.Section 1622 of the Civil Code is amended to read:1622.All contracts may be oral, except those that are specially required by statute to be in writing.

 Amended IN  Senate  March 27, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 326Introduced by Senator HillFebruary 15, 2019 An act to amend Section 1622 of the Civil Code, relating to civil law. An act to add Sections 4770, 5551, and 5986 to the Civil Code, relating to civil law.LEGISLATIVE COUNSEL'S DIGESTSB 326, as amended, Hill. Contracts. Common interest developments.The Davis-Stirling Common Interest Development Act governs the management and operation of common interest developments. Existing law also sets forth the duties and responsibilities of the association and the owners of the separate interests with regard to maintenance and repair of common and exclusive use areas, as defined. Unless otherwise provided in the common interest development declaration, the association is generally responsible for maintaining, repairing, and replacing the common area, and the owner of each separate interest is responsible for maintaining that separate interest and any exclusive use common area appurtenant to that interest.This bill would require the association of a condominium project to cause a reasonably competent and diligent visual inspection of the load-bearing components and associated waterproofing systems, as specified, to determine whether the exterior elevated elements are in a generally safe condition and performing in compliance with specified standards. The bill would require the inspector to submit a report to the board of the association providing specified information, including the current physical condition and remaining useful life of the load-bearing components and associated waterproofing systems.The bill would require a declarant or the developer of a condominium project to submit a complete set of architectural and structural plans and specifications to an association for any buildings containing exterior elevated elements, as specified.The act provides that an association has standing to institute, defend, settle, or intervene in litigation, arbitration, mediation, or administrative proceedings in its own name as the real party in interest and without joining with its members in specified matters, including enforcement of the governing documents.The bill would require the board to make the determination of whether and when an association may commence legal proceedings against a declarant, developer, or builder of a common interest development, except as specified. The bill would, with certain exceptions, prohibit an associations governing documents from limiting a boards authority to commence legal proceedings against a declarant, developer, or builder of a common interest development. The bill would make these provisions applicable to governing documents and claims initiated before the effective date of this bill.Existing law specifies that all contracts may be oral, except those that are specially required by statute to be in writing.This bill would make a nonsubstantive change to that provision.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NO  Local Program: NO 

 Amended IN  Senate  March 27, 2019

Amended IN  Senate  March 27, 2019

 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION

Senate Bill No. 326

Introduced by Senator HillFebruary 15, 2019

Introduced by Senator Hill
February 15, 2019

 An act to amend Section 1622 of the Civil Code, relating to civil law. An act to add Sections 4770, 5551, and 5986 to the Civil Code, relating to civil law.

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

SB 326, as amended, Hill. Contracts. Common interest developments.

The Davis-Stirling Common Interest Development Act governs the management and operation of common interest developments. Existing law also sets forth the duties and responsibilities of the association and the owners of the separate interests with regard to maintenance and repair of common and exclusive use areas, as defined. Unless otherwise provided in the common interest development declaration, the association is generally responsible for maintaining, repairing, and replacing the common area, and the owner of each separate interest is responsible for maintaining that separate interest and any exclusive use common area appurtenant to that interest.This bill would require the association of a condominium project to cause a reasonably competent and diligent visual inspection of the load-bearing components and associated waterproofing systems, as specified, to determine whether the exterior elevated elements are in a generally safe condition and performing in compliance with specified standards. The bill would require the inspector to submit a report to the board of the association providing specified information, including the current physical condition and remaining useful life of the load-bearing components and associated waterproofing systems.The bill would require a declarant or the developer of a condominium project to submit a complete set of architectural and structural plans and specifications to an association for any buildings containing exterior elevated elements, as specified.The act provides that an association has standing to institute, defend, settle, or intervene in litigation, arbitration, mediation, or administrative proceedings in its own name as the real party in interest and without joining with its members in specified matters, including enforcement of the governing documents.The bill would require the board to make the determination of whether and when an association may commence legal proceedings against a declarant, developer, or builder of a common interest development, except as specified. The bill would, with certain exceptions, prohibit an associations governing documents from limiting a boards authority to commence legal proceedings against a declarant, developer, or builder of a common interest development. The bill would make these provisions applicable to governing documents and claims initiated before the effective date of this bill.Existing law specifies that all contracts may be oral, except those that are specially required by statute to be in writing.This bill would make a nonsubstantive change to that provision.

The Davis-Stirling Common Interest Development Act governs the management and operation of common interest developments. Existing law also sets forth the duties and responsibilities of the association and the owners of the separate interests with regard to maintenance and repair of common and exclusive use areas, as defined. Unless otherwise provided in the common interest development declaration, the association is generally responsible for maintaining, repairing, and replacing the common area, and the owner of each separate interest is responsible for maintaining that separate interest and any exclusive use common area appurtenant to that interest.

This bill would require the association of a condominium project to cause a reasonably competent and diligent visual inspection of the load-bearing components and associated waterproofing systems, as specified, to determine whether the exterior elevated elements are in a generally safe condition and performing in compliance with specified standards. The bill would require the inspector to submit a report to the board of the association providing specified information, including the current physical condition and remaining useful life of the load-bearing components and associated waterproofing systems.

The bill would require a declarant or the developer of a condominium project to submit a complete set of architectural and structural plans and specifications to an association for any buildings containing exterior elevated elements, as specified.

The act provides that an association has standing to institute, defend, settle, or intervene in litigation, arbitration, mediation, or administrative proceedings in its own name as the real party in interest and without joining with its members in specified matters, including enforcement of the governing documents.

The bill would require the board to make the determination of whether and when an association may commence legal proceedings against a declarant, developer, or builder of a common interest development, except as specified. The bill would, with certain exceptions, prohibit an associations governing documents from limiting a boards authority to commence legal proceedings against a declarant, developer, or builder of a common interest development. The bill would make these provisions applicable to governing documents and claims initiated before the effective date of this bill.

Existing law specifies that all contracts may be oral, except those that are specially required by statute to be in writing.



This bill would make a nonsubstantive change to that provision.



## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 4770 is added to the Civil Code, to read:4770. (a) Prior to the close of escrow for the first sale of a separate interest in a condominium project to a member of the general public, the declarant or developer shall provide a complete record set of architectural and structural plans and specifications to the association for each building containing exterior elevated elements, as defined in Section 5551.(b) If a declarant owns property in a condominium project on January 1, 2020, and has not provided a complete record set of architectural and structural plans and specifications to the association for a building that contains exterior elevated elements, it shall submit the plans and specifications to the association by March 31, 2020.SEC. 2. Section 5551 is added to the Civil Code, to read:5551. (a) For purposes of this section, the following definitions apply:(1) Associated waterproofing systems include flashings, membranes, coatings, and sealants that protect the load-bearing components of exterior elevated elements from exposure to water.(2) Exterior elevated elements mean the load-bearing components together with their associated waterproofing system.(3) Load-bearing components means those components that extend beyond the exterior walls of the building to deliver structural loads from the exterior elevated element to the building, including, but not limited to, decks, balconies, stairways, walkways, and their railings.(4) Visual inspection means inspection through the least intrusive method necessary to inspect load-bearing components, including visual observation only or visual observation in conjunction with, for example, the use of moisture meters, borescopes, or infrared technology.(b) (1) At least once every nine years, the board of an association of a condominium project shall cause a reasonably competent and diligent visual inspection to be conducted by a licensed structural engineer or architect of a random and statistically significant sample of the load-bearing components and associated waterproofing systems for which the association has maintenance or repair responsibility.(1) The identification of the building components comprising the load-bearing components and associated waterproofing system.(2) The current physical condition of the load-bearing components and associated waterproofing system, including whether the condition presents an immediate threat to the health and safety of the residents.(3) The expected future performance and remaining useful life of the load-bearing components and associated waterproofing system.(4) Recommendations of any necessary repair or replacement of the load-bearing components and associated waterproofing system.(f) The report issued pursuant to subdivision (e) shall be stamped or signed by the inspector, presented to the board, and incorporated into the study required by Section 5550.(g) Each subsequent visual inspection conducted under this section shall commence with the next exterior elevated element identified on the random list and shall proceed in order through the list.(h) The first inspection shall be completed by January 1, 2025, and then every nine years thereafter in coordination with the reserve study inspection pursuant to Section 5550. All written reports shall be permanently maintained as records of the association.(i) (1) The association shall be responsible for complying with the requirements of this section.(2) The continued and ongoing maintenance of the load-bearing components and associated waterproofing systems in a safe, functional, and sanitary condition shall be the responsibility of the association as required by the associations governing documents.(j) The inspection of buildings for which a building permit application has been submitted on or after January 1, 2020, shall occur no later than six years following the issuance of a certificate of occupancy. The inspection shall otherwise comply with the provisions of this section.SEC. 3. Section 5986 is added to the Civil Code, immediately following Section 5985, to read:5986. (a) Subject to compliance with Section 6150 and any other applicable procedural requirements and notwithstanding any provision to the contrary in the governing documents, the board shall make the determination of whether and when an association may commence a claim, civil action, arbitration, prelitigation process pursuant to Section 6000 or Title 7 (commencing with Section 895) of Part 2 of Division 2, or other legal proceeding against a declarant, developer, or builder of a common interest development. If the board includes members appointed by, or affiliated with, the declarant, developer, or builder, the decision and authority to commence and pursue legal proceedings shall be vested solely in the nonaffiliated board members.(b) The governing documents shall not impose any preconditions or limitations on the boards authority to commence and pursue any claim, civil action, arbitration, prelitigation process pursuant to Section 6000 or Title 7 (commencing with Section 895) of Part 2 of Division 2, or other legal proceeding against a declarant, developer, or builder of a common interest development. Any limitation or precondition, including, but not limited to, requiring a membership vote as a prerequisite to, or otherwise providing the declarant, developer, or builder with veto authority over, the boards commencement and pursuit of a claim, civil action, arbitration, prelitigation process, or legal proceeding against the declarant, developer, or builder, or any incidental decision of the board, including, but not limited to, retaining legal counsel or incurring costs or expenses, is unenforceable, null, and void. The failure to comply with those limitations or preconditions, if only, shall not be asserted as a defense to any claim or action described in this section.(c) Notwithstanding subdivision (b), any provision in the governing documents imposing limitations or preconditions on the boards authority to commence and pursue claims shall be valid and enforceable if the provision is adopted by the nondeclarant affiliated members of the association after the declarant has relinquished control of the board and no longer owns a majority of units in the association and the provision is adopted in accordance with the requirements necessary to amend the governing documents of the association.(d) This section applies to all governing documents, whether recorded before or after the effective date of this section, and applies retroactively to any claims initiated before the effective date of this section.SECTION 1.Section 1622 of the Civil Code is amended to read:1622.All contracts may be oral, except those that are specially required by statute to be in writing.

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 4770 is added to the Civil Code, to read:4770. (a) Prior to the close of escrow for the first sale of a separate interest in a condominium project to a member of the general public, the declarant or developer shall provide a complete record set of architectural and structural plans and specifications to the association for each building containing exterior elevated elements, as defined in Section 5551.(b) If a declarant owns property in a condominium project on January 1, 2020, and has not provided a complete record set of architectural and structural plans and specifications to the association for a building that contains exterior elevated elements, it shall submit the plans and specifications to the association by March 31, 2020.

SECTION 1. Section 4770 is added to the Civil Code, to read:

### SECTION 1.

4770. (a) Prior to the close of escrow for the first sale of a separate interest in a condominium project to a member of the general public, the declarant or developer shall provide a complete record set of architectural and structural plans and specifications to the association for each building containing exterior elevated elements, as defined in Section 5551.(b) If a declarant owns property in a condominium project on January 1, 2020, and has not provided a complete record set of architectural and structural plans and specifications to the association for a building that contains exterior elevated elements, it shall submit the plans and specifications to the association by March 31, 2020.

4770. (a) Prior to the close of escrow for the first sale of a separate interest in a condominium project to a member of the general public, the declarant or developer shall provide a complete record set of architectural and structural plans and specifications to the association for each building containing exterior elevated elements, as defined in Section 5551.(b) If a declarant owns property in a condominium project on January 1, 2020, and has not provided a complete record set of architectural and structural plans and specifications to the association for a building that contains exterior elevated elements, it shall submit the plans and specifications to the association by March 31, 2020.

4770. (a) Prior to the close of escrow for the first sale of a separate interest in a condominium project to a member of the general public, the declarant or developer shall provide a complete record set of architectural and structural plans and specifications to the association for each building containing exterior elevated elements, as defined in Section 5551.(b) If a declarant owns property in a condominium project on January 1, 2020, and has not provided a complete record set of architectural and structural plans and specifications to the association for a building that contains exterior elevated elements, it shall submit the plans and specifications to the association by March 31, 2020.



4770. (a) Prior to the close of escrow for the first sale of a separate interest in a condominium project to a member of the general public, the declarant or developer shall provide a complete record set of architectural and structural plans and specifications to the association for each building containing exterior elevated elements, as defined in Section 5551.

(b) If a declarant owns property in a condominium project on January 1, 2020, and has not provided a complete record set of architectural and structural plans and specifications to the association for a building that contains exterior elevated elements, it shall submit the plans and specifications to the association by March 31, 2020.

SEC. 2. Section 5551 is added to the Civil Code, to read:5551. (a) For purposes of this section, the following definitions apply:(1) Associated waterproofing systems include flashings, membranes, coatings, and sealants that protect the load-bearing components of exterior elevated elements from exposure to water.(2) Exterior elevated elements mean the load-bearing components together with their associated waterproofing system.(3) Load-bearing components means those components that extend beyond the exterior walls of the building to deliver structural loads from the exterior elevated element to the building, including, but not limited to, decks, balconies, stairways, walkways, and their railings.(4) Visual inspection means inspection through the least intrusive method necessary to inspect load-bearing components, including visual observation only or visual observation in conjunction with, for example, the use of moisture meters, borescopes, or infrared technology.(b) (1) At least once every nine years, the board of an association of a condominium project shall cause a reasonably competent and diligent visual inspection to be conducted by a licensed structural engineer or architect of a random and statistically significant sample of the load-bearing components and associated waterproofing systems for which the association has maintenance or repair responsibility.(1) The identification of the building components comprising the load-bearing components and associated waterproofing system.(2) The current physical condition of the load-bearing components and associated waterproofing system, including whether the condition presents an immediate threat to the health and safety of the residents.(3) The expected future performance and remaining useful life of the load-bearing components and associated waterproofing system.(4) Recommendations of any necessary repair or replacement of the load-bearing components and associated waterproofing system.(f) The report issued pursuant to subdivision (e) shall be stamped or signed by the inspector, presented to the board, and incorporated into the study required by Section 5550.(g) Each subsequent visual inspection conducted under this section shall commence with the next exterior elevated element identified on the random list and shall proceed in order through the list.(h) The first inspection shall be completed by January 1, 2025, and then every nine years thereafter in coordination with the reserve study inspection pursuant to Section 5550. All written reports shall be permanently maintained as records of the association.(i) (1) The association shall be responsible for complying with the requirements of this section.(2) The continued and ongoing maintenance of the load-bearing components and associated waterproofing systems in a safe, functional, and sanitary condition shall be the responsibility of the association as required by the associations governing documents.(j) The inspection of buildings for which a building permit application has been submitted on or after January 1, 2020, shall occur no later than six years following the issuance of a certificate of occupancy. The inspection shall otherwise comply with the provisions of this section.SEC. 3. Section 5986 is added to the Civil Code, immediately following Section 5985, to read:5986. (a) Subject to compliance with Section 6150 and any other applicable procedural requirements and notwithstanding any provision to the contrary in the governing documents, the board shall make the determination of whether and when an association may commence a claim, civil action, arbitration, prelitigation process pursuant to Section 6000 or Title 7 (commencing with Section 895) of Part 2 of Division 2, or other legal proceeding against a declarant, developer, or builder of a common interest development. If the board includes members appointed by, or affiliated with, the declarant, developer, or builder, the decision and authority to commence and pursue legal proceedings shall be vested solely in the nonaffiliated board members.(b) The governing documents shall not impose any preconditions or limitations on the boards authority to commence and pursue any claim, civil action, arbitration, prelitigation process pursuant to Section 6000 or Title 7 (commencing with Section 895) of Part 2 of Division 2, or other legal proceeding against a declarant, developer, or builder of a common interest development. Any limitation or precondition, including, but not limited to, requiring a membership vote as a prerequisite to, or otherwise providing the declarant, developer, or builder with veto authority over, the boards commencement and pursuit of a claim, civil action, arbitration, prelitigation process, or legal proceeding against the declarant, developer, or builder, or any incidental decision of the board, including, but not limited to, retaining legal counsel or incurring costs or expenses, is unenforceable, null, and void. The failure to comply with those limitations or preconditions, if only, shall not be asserted as a defense to any claim or action described in this section.(c) Notwithstanding subdivision (b), any provision in the governing documents imposing limitations or preconditions on the boards authority to commence and pursue claims shall be valid and enforceable if the provision is adopted by the nondeclarant affiliated members of the association after the declarant has relinquished control of the board and no longer owns a majority of units in the association and the provision is adopted in accordance with the requirements necessary to amend the governing documents of the association.(d) This section applies to all governing documents, whether recorded before or after the effective date of this section, and applies retroactively to any claims initiated before the effective date of this section.SECTION 1.Section 1622 of the Civil Code is amended to read:1622.All contracts may be oral, except those that are specially required by statute to be in writing.

SEC. 2. Section 5551 is added to the Civil Code, to read:

### SEC. 2.

5551. (a) For purposes of this section, the following definitions apply:(1) Associated waterproofing systems include flashings, membranes, coatings, and sealants that protect the load-bearing components of exterior elevated elements from exposure to water.(2) Exterior elevated elements mean the load-bearing components together with their associated waterproofing system.(3) Load-bearing components means those components that extend beyond the exterior walls of the building to deliver structural loads from the exterior elevated element to the building, including, but not limited to, decks, balconies, stairways, walkways, and their railings.(4) Visual inspection means inspection through the least intrusive method necessary to inspect load-bearing components, including visual observation only or visual observation in conjunction with, for example, the use of moisture meters, borescopes, or infrared technology.(b) (1) At least once every nine years, the board of an association of a condominium project shall cause a reasonably competent and diligent visual inspection to be conducted by a licensed structural engineer or architect of a random and statistically significant sample of the load-bearing components and associated waterproofing systems for which the association has maintenance or repair responsibility.(1) The identification of the building components comprising the load-bearing components and associated waterproofing system.(2) The current physical condition of the load-bearing components and associated waterproofing system, including whether the condition presents an immediate threat to the health and safety of the residents.(3) The expected future performance and remaining useful life of the load-bearing components and associated waterproofing system.(4) Recommendations of any necessary repair or replacement of the load-bearing components and associated waterproofing system.(f) The report issued pursuant to subdivision (e) shall be stamped or signed by the inspector, presented to the board, and incorporated into the study required by Section 5550.(g) Each subsequent visual inspection conducted under this section shall commence with the next exterior elevated element identified on the random list and shall proceed in order through the list.(h) The first inspection shall be completed by January 1, 2025, and then every nine years thereafter in coordination with the reserve study inspection pursuant to Section 5550. All written reports shall be permanently maintained as records of the association.(i) (1) The association shall be responsible for complying with the requirements of this section.(2) The continued and ongoing maintenance of the load-bearing components and associated waterproofing systems in a safe, functional, and sanitary condition shall be the responsibility of the association as required by the associations governing documents.(j) The inspection of buildings for which a building permit application has been submitted on or after January 1, 2020, shall occur no later than six years following the issuance of a certificate of occupancy. The inspection shall otherwise comply with the provisions of this section.

5551. (a) For purposes of this section, the following definitions apply:(1) Associated waterproofing systems include flashings, membranes, coatings, and sealants that protect the load-bearing components of exterior elevated elements from exposure to water.(2) Exterior elevated elements mean the load-bearing components together with their associated waterproofing system.(3) Load-bearing components means those components that extend beyond the exterior walls of the building to deliver structural loads from the exterior elevated element to the building, including, but not limited to, decks, balconies, stairways, walkways, and their railings.(4) Visual inspection means inspection through the least intrusive method necessary to inspect load-bearing components, including visual observation only or visual observation in conjunction with, for example, the use of moisture meters, borescopes, or infrared technology.(b) (1) At least once every nine years, the board of an association of a condominium project shall cause a reasonably competent and diligent visual inspection to be conducted by a licensed structural engineer or architect of a random and statistically significant sample of the load-bearing components and associated waterproofing systems for which the association has maintenance or repair responsibility.(1) The identification of the building components comprising the load-bearing components and associated waterproofing system.(2) The current physical condition of the load-bearing components and associated waterproofing system, including whether the condition presents an immediate threat to the health and safety of the residents.(3) The expected future performance and remaining useful life of the load-bearing components and associated waterproofing system.(4) Recommendations of any necessary repair or replacement of the load-bearing components and associated waterproofing system.(f) The report issued pursuant to subdivision (e) shall be stamped or signed by the inspector, presented to the board, and incorporated into the study required by Section 5550.(g) Each subsequent visual inspection conducted under this section shall commence with the next exterior elevated element identified on the random list and shall proceed in order through the list.(h) The first inspection shall be completed by January 1, 2025, and then every nine years thereafter in coordination with the reserve study inspection pursuant to Section 5550. All written reports shall be permanently maintained as records of the association.(i) (1) The association shall be responsible for complying with the requirements of this section.(2) The continued and ongoing maintenance of the load-bearing components and associated waterproofing systems in a safe, functional, and sanitary condition shall be the responsibility of the association as required by the associations governing documents.(j) The inspection of buildings for which a building permit application has been submitted on or after January 1, 2020, shall occur no later than six years following the issuance of a certificate of occupancy. The inspection shall otherwise comply with the provisions of this section.

5551. (a) For purposes of this section, the following definitions apply:(1) Associated waterproofing systems include flashings, membranes, coatings, and sealants that protect the load-bearing components of exterior elevated elements from exposure to water.(2) Exterior elevated elements mean the load-bearing components together with their associated waterproofing system.(3) Load-bearing components means those components that extend beyond the exterior walls of the building to deliver structural loads from the exterior elevated element to the building, including, but not limited to, decks, balconies, stairways, walkways, and their railings.(4) Visual inspection means inspection through the least intrusive method necessary to inspect load-bearing components, including visual observation only or visual observation in conjunction with, for example, the use of moisture meters, borescopes, or infrared technology.(b) (1) At least once every nine years, the board of an association of a condominium project shall cause a reasonably competent and diligent visual inspection to be conducted by a licensed structural engineer or architect of a random and statistically significant sample of the load-bearing components and associated waterproofing systems for which the association has maintenance or repair responsibility.(1) The identification of the building components comprising the load-bearing components and associated waterproofing system.(2) The current physical condition of the load-bearing components and associated waterproofing system, including whether the condition presents an immediate threat to the health and safety of the residents.(3) The expected future performance and remaining useful life of the load-bearing components and associated waterproofing system.(4) Recommendations of any necessary repair or replacement of the load-bearing components and associated waterproofing system.(f) The report issued pursuant to subdivision (e) shall be stamped or signed by the inspector, presented to the board, and incorporated into the study required by Section 5550.(g) Each subsequent visual inspection conducted under this section shall commence with the next exterior elevated element identified on the random list and shall proceed in order through the list.(h) The first inspection shall be completed by January 1, 2025, and then every nine years thereafter in coordination with the reserve study inspection pursuant to Section 5550. All written reports shall be permanently maintained as records of the association.(i) (1) The association shall be responsible for complying with the requirements of this section.(2) The continued and ongoing maintenance of the load-bearing components and associated waterproofing systems in a safe, functional, and sanitary condition shall be the responsibility of the association as required by the associations governing documents.(j) The inspection of buildings for which a building permit application has been submitted on or after January 1, 2020, shall occur no later than six years following the issuance of a certificate of occupancy. The inspection shall otherwise comply with the provisions of this section.



5551. (a) For purposes of this section, the following definitions apply:

(1) Associated waterproofing systems include flashings, membranes, coatings, and sealants that protect the load-bearing components of exterior elevated elements from exposure to water.

(2) Exterior elevated elements mean the load-bearing components together with their associated waterproofing system.

(3) Load-bearing components means those components that extend beyond the exterior walls of the building to deliver structural loads from the exterior elevated element to the building, including, but not limited to, decks, balconies, stairways, walkways, and their railings.

(4) Visual inspection means inspection through the least intrusive method necessary to inspect load-bearing components, including visual observation only or visual observation in conjunction with, for example, the use of moisture meters, borescopes, or infrared technology.

(b) (1) At least once every nine years, the board of an association of a condominium project shall cause a reasonably competent and diligent visual inspection to be conducted by a licensed structural engineer or architect of a random and statistically significant sample of the load-bearing components and associated waterproofing systems for which the association has maintenance or repair responsibility.

(1) The identification of the building components comprising the load-bearing components and associated waterproofing system.(2) The current physical condition of the load-bearing components and associated waterproofing system, including whether the condition presents an immediate threat to the health and safety of the residents.(3) The expected future performance and remaining useful life of the load-bearing components and associated waterproofing system.(4) Recommendations of any necessary repair or replacement of the load-bearing components and associated waterproofing system.(f) The report issued pursuant to subdivision (e) shall be stamped or signed by the inspector, presented to the board, and incorporated into the study required by Section 5550.(g) Each subsequent visual inspection conducted under this section shall commence with the next exterior elevated element identified on the random list and shall proceed in order through the list.(h) The first inspection shall be completed by January 1, 2025, and then every nine years thereafter in coordination with the reserve study inspection pursuant to Section 5550. All written reports shall be permanently maintained as records of the association.(i) (1) The association shall be responsible for complying with the requirements of this section.(2) The continued and ongoing maintenance of the load-bearing components and associated waterproofing systems in a safe, functional, and sanitary condition shall be the responsibility of the association as required by the associations governing documents.(j) The inspection of buildings for which a building permit application has been submitted on or after January 1, 2020, shall occur no later than six years following the issuance of a certificate of occupancy. The inspection shall otherwise comply with the provisions of this section.

(1) The identification of the building components comprising the load-bearing components and associated waterproofing system.

(2) The current physical condition of the load-bearing components and associated waterproofing system, including whether the condition presents an immediate threat to the health and safety of the residents.

(3) The expected future performance and remaining useful life of the load-bearing components and associated waterproofing system.

(4) Recommendations of any necessary repair or replacement of the load-bearing components and associated waterproofing system.

(f) The report issued pursuant to subdivision (e) shall be stamped or signed by the inspector, presented to the board, and incorporated into the study required by Section 5550.

(g) Each subsequent visual inspection conducted under this section shall commence with the next exterior elevated element identified on the random list and shall proceed in order through the list.

(h) The first inspection shall be completed by January 1, 2025, and then every nine years thereafter in coordination with the reserve study inspection pursuant to Section 5550. All written reports shall be permanently maintained as records of the association.

(i) (1) The association shall be responsible for complying with the requirements of this section.

(2) The continued and ongoing maintenance of the load-bearing components and associated waterproofing systems in a safe, functional, and sanitary condition shall be the responsibility of the association as required by the associations governing documents.

(j) The inspection of buildings for which a building permit application has been submitted on or after January 1, 2020, shall occur no later than six years following the issuance of a certificate of occupancy. The inspection shall otherwise comply with the provisions of this section.

SEC. 3. Section 5986 is added to the Civil Code, immediately following Section 5985, to read:5986. (a) Subject to compliance with Section 6150 and any other applicable procedural requirements and notwithstanding any provision to the contrary in the governing documents, the board shall make the determination of whether and when an association may commence a claim, civil action, arbitration, prelitigation process pursuant to Section 6000 or Title 7 (commencing with Section 895) of Part 2 of Division 2, or other legal proceeding against a declarant, developer, or builder of a common interest development. If the board includes members appointed by, or affiliated with, the declarant, developer, or builder, the decision and authority to commence and pursue legal proceedings shall be vested solely in the nonaffiliated board members.(b) The governing documents shall not impose any preconditions or limitations on the boards authority to commence and pursue any claim, civil action, arbitration, prelitigation process pursuant to Section 6000 or Title 7 (commencing with Section 895) of Part 2 of Division 2, or other legal proceeding against a declarant, developer, or builder of a common interest development. Any limitation or precondition, including, but not limited to, requiring a membership vote as a prerequisite to, or otherwise providing the declarant, developer, or builder with veto authority over, the boards commencement and pursuit of a claim, civil action, arbitration, prelitigation process, or legal proceeding against the declarant, developer, or builder, or any incidental decision of the board, including, but not limited to, retaining legal counsel or incurring costs or expenses, is unenforceable, null, and void. The failure to comply with those limitations or preconditions, if only, shall not be asserted as a defense to any claim or action described in this section.(c) Notwithstanding subdivision (b), any provision in the governing documents imposing limitations or preconditions on the boards authority to commence and pursue claims shall be valid and enforceable if the provision is adopted by the nondeclarant affiliated members of the association after the declarant has relinquished control of the board and no longer owns a majority of units in the association and the provision is adopted in accordance with the requirements necessary to amend the governing documents of the association.(d) This section applies to all governing documents, whether recorded before or after the effective date of this section, and applies retroactively to any claims initiated before the effective date of this section.

SEC. 3. Section 5986 is added to the Civil Code, immediately following Section 5985, to read:

### SEC. 3.

5986. (a) Subject to compliance with Section 6150 and any other applicable procedural requirements and notwithstanding any provision to the contrary in the governing documents, the board shall make the determination of whether and when an association may commence a claim, civil action, arbitration, prelitigation process pursuant to Section 6000 or Title 7 (commencing with Section 895) of Part 2 of Division 2, or other legal proceeding against a declarant, developer, or builder of a common interest development. If the board includes members appointed by, or affiliated with, the declarant, developer, or builder, the decision and authority to commence and pursue legal proceedings shall be vested solely in the nonaffiliated board members.(b) The governing documents shall not impose any preconditions or limitations on the boards authority to commence and pursue any claim, civil action, arbitration, prelitigation process pursuant to Section 6000 or Title 7 (commencing with Section 895) of Part 2 of Division 2, or other legal proceeding against a declarant, developer, or builder of a common interest development. Any limitation or precondition, including, but not limited to, requiring a membership vote as a prerequisite to, or otherwise providing the declarant, developer, or builder with veto authority over, the boards commencement and pursuit of a claim, civil action, arbitration, prelitigation process, or legal proceeding against the declarant, developer, or builder, or any incidental decision of the board, including, but not limited to, retaining legal counsel or incurring costs or expenses, is unenforceable, null, and void. The failure to comply with those limitations or preconditions, if only, shall not be asserted as a defense to any claim or action described in this section.(c) Notwithstanding subdivision (b), any provision in the governing documents imposing limitations or preconditions on the boards authority to commence and pursue claims shall be valid and enforceable if the provision is adopted by the nondeclarant affiliated members of the association after the declarant has relinquished control of the board and no longer owns a majority of units in the association and the provision is adopted in accordance with the requirements necessary to amend the governing documents of the association.(d) This section applies to all governing documents, whether recorded before or after the effective date of this section, and applies retroactively to any claims initiated before the effective date of this section.

5986. (a) Subject to compliance with Section 6150 and any other applicable procedural requirements and notwithstanding any provision to the contrary in the governing documents, the board shall make the determination of whether and when an association may commence a claim, civil action, arbitration, prelitigation process pursuant to Section 6000 or Title 7 (commencing with Section 895) of Part 2 of Division 2, or other legal proceeding against a declarant, developer, or builder of a common interest development. If the board includes members appointed by, or affiliated with, the declarant, developer, or builder, the decision and authority to commence and pursue legal proceedings shall be vested solely in the nonaffiliated board members.(b) The governing documents shall not impose any preconditions or limitations on the boards authority to commence and pursue any claim, civil action, arbitration, prelitigation process pursuant to Section 6000 or Title 7 (commencing with Section 895) of Part 2 of Division 2, or other legal proceeding against a declarant, developer, or builder of a common interest development. Any limitation or precondition, including, but not limited to, requiring a membership vote as a prerequisite to, or otherwise providing the declarant, developer, or builder with veto authority over, the boards commencement and pursuit of a claim, civil action, arbitration, prelitigation process, or legal proceeding against the declarant, developer, or builder, or any incidental decision of the board, including, but not limited to, retaining legal counsel or incurring costs or expenses, is unenforceable, null, and void. The failure to comply with those limitations or preconditions, if only, shall not be asserted as a defense to any claim or action described in this section.(c) Notwithstanding subdivision (b), any provision in the governing documents imposing limitations or preconditions on the boards authority to commence and pursue claims shall be valid and enforceable if the provision is adopted by the nondeclarant affiliated members of the association after the declarant has relinquished control of the board and no longer owns a majority of units in the association and the provision is adopted in accordance with the requirements necessary to amend the governing documents of the association.(d) This section applies to all governing documents, whether recorded before or after the effective date of this section, and applies retroactively to any claims initiated before the effective date of this section.

5986. (a) Subject to compliance with Section 6150 and any other applicable procedural requirements and notwithstanding any provision to the contrary in the governing documents, the board shall make the determination of whether and when an association may commence a claim, civil action, arbitration, prelitigation process pursuant to Section 6000 or Title 7 (commencing with Section 895) of Part 2 of Division 2, or other legal proceeding against a declarant, developer, or builder of a common interest development. If the board includes members appointed by, or affiliated with, the declarant, developer, or builder, the decision and authority to commence and pursue legal proceedings shall be vested solely in the nonaffiliated board members.(b) The governing documents shall not impose any preconditions or limitations on the boards authority to commence and pursue any claim, civil action, arbitration, prelitigation process pursuant to Section 6000 or Title 7 (commencing with Section 895) of Part 2 of Division 2, or other legal proceeding against a declarant, developer, or builder of a common interest development. Any limitation or precondition, including, but not limited to, requiring a membership vote as a prerequisite to, or otherwise providing the declarant, developer, or builder with veto authority over, the boards commencement and pursuit of a claim, civil action, arbitration, prelitigation process, or legal proceeding against the declarant, developer, or builder, or any incidental decision of the board, including, but not limited to, retaining legal counsel or incurring costs or expenses, is unenforceable, null, and void. The failure to comply with those limitations or preconditions, if only, shall not be asserted as a defense to any claim or action described in this section.(c) Notwithstanding subdivision (b), any provision in the governing documents imposing limitations or preconditions on the boards authority to commence and pursue claims shall be valid and enforceable if the provision is adopted by the nondeclarant affiliated members of the association after the declarant has relinquished control of the board and no longer owns a majority of units in the association and the provision is adopted in accordance with the requirements necessary to amend the governing documents of the association.(d) This section applies to all governing documents, whether recorded before or after the effective date of this section, and applies retroactively to any claims initiated before the effective date of this section.



5986. (a) Subject to compliance with Section 6150 and any other applicable procedural requirements and notwithstanding any provision to the contrary in the governing documents, the board shall make the determination of whether and when an association may commence a claim, civil action, arbitration, prelitigation process pursuant to Section 6000 or Title 7 (commencing with Section 895) of Part 2 of Division 2, or other legal proceeding against a declarant, developer, or builder of a common interest development. If the board includes members appointed by, or affiliated with, the declarant, developer, or builder, the decision and authority to commence and pursue legal proceedings shall be vested solely in the nonaffiliated board members.

(b) The governing documents shall not impose any preconditions or limitations on the boards authority to commence and pursue any claim, civil action, arbitration, prelitigation process pursuant to Section 6000 or Title 7 (commencing with Section 895) of Part 2 of Division 2, or other legal proceeding against a declarant, developer, or builder of a common interest development. Any limitation or precondition, including, but not limited to, requiring a membership vote as a prerequisite to, or otherwise providing the declarant, developer, or builder with veto authority over, the boards commencement and pursuit of a claim, civil action, arbitration, prelitigation process, or legal proceeding against the declarant, developer, or builder, or any incidental decision of the board, including, but not limited to, retaining legal counsel or incurring costs or expenses, is unenforceable, null, and void. The failure to comply with those limitations or preconditions, if only, shall not be asserted as a defense to any claim or action described in this section.

(c) Notwithstanding subdivision (b), any provision in the governing documents imposing limitations or preconditions on the boards authority to commence and pursue claims shall be valid and enforceable if the provision is adopted by the nondeclarant affiliated members of the association after the declarant has relinquished control of the board and no longer owns a majority of units in the association and the provision is adopted in accordance with the requirements necessary to amend the governing documents of the association.

(d) This section applies to all governing documents, whether recorded before or after the effective date of this section, and applies retroactively to any claims initiated before the effective date of this section.





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