Amended IN Assembly May 26, 2023 Amended IN Assembly April 05, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 572Introduced by Assembly Member HaneyFebruary 08, 2023An act to amend Section 5605 of the Civil Code, relating to common interest developments. LEGISLATIVE COUNSEL'S DIGESTAB 572, as amended, Haney. Common interest developments: imposition of assessments.Existing law, the Davis-Stirling Common Interest Development Act, defines and regulates common interest developments, including the establishment and imposition of assessments. Existing law limits increases in regular assessments and the aggregate of special assessments that the board may impose in any fiscal year without the approval of a majority of a quorum of members, as specified.This bill would prohibit the increase of an association that records its original declaration on or after January 1, 2024, from imposing an increase of a regular assessment on the owner of a deed-restricted affordable housing unit that is more than 5% greater than the preceding regular assessment for the associations preceding fiscal year, except as provided.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 5605 of the Civil Code is amended to read:5605. (a) Annual increases in regular assessments for any fiscal year shall not be imposed unless the board has complied with paragraphs (1), (2), (4), (5), (6), (7), and (8) of subdivision (b) of Section 5300 with respect to that fiscal year, or has obtained the approval of a majority of a quorum of members, pursuant to Section 4070, at a member meeting or election.(b) Notwithstanding more restrictive limitations placed on the board by the governing documents, the board may not impose a regular assessment that is more than 20 percent greater than the regular assessment for the associations preceding fiscal year or impose special assessments which in the aggregate exceed 5 percent of the budgeted gross expenses of the association for that fiscal year without the approval of a majority of a quorum of members, pursuant to Section 4070, at a member meeting or election.(c) (1) Notwithstanding For an association that records its original declaration on or after January 1, 2024, notwithstanding more restrictive limitations placed on the board by the governing documents, except as provided in paragraph (3), the board shall not impose a regular assessment against an owner of a deed-restricted affordable housing unit that is more than 5 percent greater than the preceding regular assessment.(2) Notwithstanding For an association that records its original declaration on or after January 1, 2024, notwithstanding any other law, except as provided in paragraph (3), the board may impose an assessment against an owner of a deed-restricted affordable housing unit that is lower than the assessment imposed against other owners according to the ratio of the number of subdivision interests owned by the owner assessed to the total number of proportional ownership of total subdivision interests subject to assessments.(3) This subdivision does not apply to a development where 100 percent of the units exclusive of a managers unit or units are occupied by, or available at affordable housing cost to, lower income and moderate-income households, as defined by Sections 50079.5 and 50052.5, respectively, of the Health and Safety Code.(d) For the purposes of this section, quorum means more than 50 percent of the members.
Amended IN Assembly May 26, 2023 Amended IN Assembly April 05, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 572Introduced by Assembly Member HaneyFebruary 08, 2023An act to amend Section 5605 of the Civil Code, relating to common interest developments. LEGISLATIVE COUNSEL'S DIGESTAB 572, as amended, Haney. Common interest developments: imposition of assessments.Existing law, the Davis-Stirling Common Interest Development Act, defines and regulates common interest developments, including the establishment and imposition of assessments. Existing law limits increases in regular assessments and the aggregate of special assessments that the board may impose in any fiscal year without the approval of a majority of a quorum of members, as specified.This bill would prohibit the increase of an association that records its original declaration on or after January 1, 2024, from imposing an increase of a regular assessment on the owner of a deed-restricted affordable housing unit that is more than 5% greater than the preceding regular assessment for the associations preceding fiscal year, except as provided.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
Amended IN Assembly May 26, 2023 Amended IN Assembly April 05, 2023
Amended IN Assembly May 26, 2023
Amended IN Assembly April 05, 2023
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Assembly Bill
No. 572
Introduced by Assembly Member HaneyFebruary 08, 2023
Introduced by Assembly Member Haney
February 08, 2023
An act to amend Section 5605 of the Civil Code, relating to common interest developments.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 572, as amended, Haney. Common interest developments: imposition of assessments.
Existing law, the Davis-Stirling Common Interest Development Act, defines and regulates common interest developments, including the establishment and imposition of assessments. Existing law limits increases in regular assessments and the aggregate of special assessments that the board may impose in any fiscal year without the approval of a majority of a quorum of members, as specified.This bill would prohibit the increase of an association that records its original declaration on or after January 1, 2024, from imposing an increase of a regular assessment on the owner of a deed-restricted affordable housing unit that is more than 5% greater than the preceding regular assessment for the associations preceding fiscal year, except as provided.
Existing law, the Davis-Stirling Common Interest Development Act, defines and regulates common interest developments, including the establishment and imposition of assessments. Existing law limits increases in regular assessments and the aggregate of special assessments that the board may impose in any fiscal year without the approval of a majority of a quorum of members, as specified.
This bill would prohibit the increase of an association that records its original declaration on or after January 1, 2024, from imposing an increase of a regular assessment on the owner of a deed-restricted affordable housing unit that is more than 5% greater than the preceding regular assessment for the associations preceding fiscal year, except as provided.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 5605 of the Civil Code is amended to read:5605. (a) Annual increases in regular assessments for any fiscal year shall not be imposed unless the board has complied with paragraphs (1), (2), (4), (5), (6), (7), and (8) of subdivision (b) of Section 5300 with respect to that fiscal year, or has obtained the approval of a majority of a quorum of members, pursuant to Section 4070, at a member meeting or election.(b) Notwithstanding more restrictive limitations placed on the board by the governing documents, the board may not impose a regular assessment that is more than 20 percent greater than the regular assessment for the associations preceding fiscal year or impose special assessments which in the aggregate exceed 5 percent of the budgeted gross expenses of the association for that fiscal year without the approval of a majority of a quorum of members, pursuant to Section 4070, at a member meeting or election.(c) (1) Notwithstanding For an association that records its original declaration on or after January 1, 2024, notwithstanding more restrictive limitations placed on the board by the governing documents, except as provided in paragraph (3), the board shall not impose a regular assessment against an owner of a deed-restricted affordable housing unit that is more than 5 percent greater than the preceding regular assessment.(2) Notwithstanding For an association that records its original declaration on or after January 1, 2024, notwithstanding any other law, except as provided in paragraph (3), the board may impose an assessment against an owner of a deed-restricted affordable housing unit that is lower than the assessment imposed against other owners according to the ratio of the number of subdivision interests owned by the owner assessed to the total number of proportional ownership of total subdivision interests subject to assessments.(3) This subdivision does not apply to a development where 100 percent of the units exclusive of a managers unit or units are occupied by, or available at affordable housing cost to, lower income and moderate-income households, as defined by Sections 50079.5 and 50052.5, respectively, of the Health and Safety Code.(d) For the purposes of this section, quorum means more than 50 percent of the members.
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 5605 of the Civil Code is amended to read:5605. (a) Annual increases in regular assessments for any fiscal year shall not be imposed unless the board has complied with paragraphs (1), (2), (4), (5), (6), (7), and (8) of subdivision (b) of Section 5300 with respect to that fiscal year, or has obtained the approval of a majority of a quorum of members, pursuant to Section 4070, at a member meeting or election.(b) Notwithstanding more restrictive limitations placed on the board by the governing documents, the board may not impose a regular assessment that is more than 20 percent greater than the regular assessment for the associations preceding fiscal year or impose special assessments which in the aggregate exceed 5 percent of the budgeted gross expenses of the association for that fiscal year without the approval of a majority of a quorum of members, pursuant to Section 4070, at a member meeting or election.(c) (1) Notwithstanding For an association that records its original declaration on or after January 1, 2024, notwithstanding more restrictive limitations placed on the board by the governing documents, except as provided in paragraph (3), the board shall not impose a regular assessment against an owner of a deed-restricted affordable housing unit that is more than 5 percent greater than the preceding regular assessment.(2) Notwithstanding For an association that records its original declaration on or after January 1, 2024, notwithstanding any other law, except as provided in paragraph (3), the board may impose an assessment against an owner of a deed-restricted affordable housing unit that is lower than the assessment imposed against other owners according to the ratio of the number of subdivision interests owned by the owner assessed to the total number of proportional ownership of total subdivision interests subject to assessments.(3) This subdivision does not apply to a development where 100 percent of the units exclusive of a managers unit or units are occupied by, or available at affordable housing cost to, lower income and moderate-income households, as defined by Sections 50079.5 and 50052.5, respectively, of the Health and Safety Code.(d) For the purposes of this section, quorum means more than 50 percent of the members.
SECTION 1. Section 5605 of the Civil Code is amended to read:
### SECTION 1.
5605. (a) Annual increases in regular assessments for any fiscal year shall not be imposed unless the board has complied with paragraphs (1), (2), (4), (5), (6), (7), and (8) of subdivision (b) of Section 5300 with respect to that fiscal year, or has obtained the approval of a majority of a quorum of members, pursuant to Section 4070, at a member meeting or election.(b) Notwithstanding more restrictive limitations placed on the board by the governing documents, the board may not impose a regular assessment that is more than 20 percent greater than the regular assessment for the associations preceding fiscal year or impose special assessments which in the aggregate exceed 5 percent of the budgeted gross expenses of the association for that fiscal year without the approval of a majority of a quorum of members, pursuant to Section 4070, at a member meeting or election.(c) (1) Notwithstanding For an association that records its original declaration on or after January 1, 2024, notwithstanding more restrictive limitations placed on the board by the governing documents, except as provided in paragraph (3), the board shall not impose a regular assessment against an owner of a deed-restricted affordable housing unit that is more than 5 percent greater than the preceding regular assessment.(2) Notwithstanding For an association that records its original declaration on or after January 1, 2024, notwithstanding any other law, except as provided in paragraph (3), the board may impose an assessment against an owner of a deed-restricted affordable housing unit that is lower than the assessment imposed against other owners according to the ratio of the number of subdivision interests owned by the owner assessed to the total number of proportional ownership of total subdivision interests subject to assessments.(3) This subdivision does not apply to a development where 100 percent of the units exclusive of a managers unit or units are occupied by, or available at affordable housing cost to, lower income and moderate-income households, as defined by Sections 50079.5 and 50052.5, respectively, of the Health and Safety Code.(d) For the purposes of this section, quorum means more than 50 percent of the members.
5605. (a) Annual increases in regular assessments for any fiscal year shall not be imposed unless the board has complied with paragraphs (1), (2), (4), (5), (6), (7), and (8) of subdivision (b) of Section 5300 with respect to that fiscal year, or has obtained the approval of a majority of a quorum of members, pursuant to Section 4070, at a member meeting or election.(b) Notwithstanding more restrictive limitations placed on the board by the governing documents, the board may not impose a regular assessment that is more than 20 percent greater than the regular assessment for the associations preceding fiscal year or impose special assessments which in the aggregate exceed 5 percent of the budgeted gross expenses of the association for that fiscal year without the approval of a majority of a quorum of members, pursuant to Section 4070, at a member meeting or election.(c) (1) Notwithstanding For an association that records its original declaration on or after January 1, 2024, notwithstanding more restrictive limitations placed on the board by the governing documents, except as provided in paragraph (3), the board shall not impose a regular assessment against an owner of a deed-restricted affordable housing unit that is more than 5 percent greater than the preceding regular assessment.(2) Notwithstanding For an association that records its original declaration on or after January 1, 2024, notwithstanding any other law, except as provided in paragraph (3), the board may impose an assessment against an owner of a deed-restricted affordable housing unit that is lower than the assessment imposed against other owners according to the ratio of the number of subdivision interests owned by the owner assessed to the total number of proportional ownership of total subdivision interests subject to assessments.(3) This subdivision does not apply to a development where 100 percent of the units exclusive of a managers unit or units are occupied by, or available at affordable housing cost to, lower income and moderate-income households, as defined by Sections 50079.5 and 50052.5, respectively, of the Health and Safety Code.(d) For the purposes of this section, quorum means more than 50 percent of the members.
5605. (a) Annual increases in regular assessments for any fiscal year shall not be imposed unless the board has complied with paragraphs (1), (2), (4), (5), (6), (7), and (8) of subdivision (b) of Section 5300 with respect to that fiscal year, or has obtained the approval of a majority of a quorum of members, pursuant to Section 4070, at a member meeting or election.(b) Notwithstanding more restrictive limitations placed on the board by the governing documents, the board may not impose a regular assessment that is more than 20 percent greater than the regular assessment for the associations preceding fiscal year or impose special assessments which in the aggregate exceed 5 percent of the budgeted gross expenses of the association for that fiscal year without the approval of a majority of a quorum of members, pursuant to Section 4070, at a member meeting or election.(c) (1) Notwithstanding For an association that records its original declaration on or after January 1, 2024, notwithstanding more restrictive limitations placed on the board by the governing documents, except as provided in paragraph (3), the board shall not impose a regular assessment against an owner of a deed-restricted affordable housing unit that is more than 5 percent greater than the preceding regular assessment.(2) Notwithstanding For an association that records its original declaration on or after January 1, 2024, notwithstanding any other law, except as provided in paragraph (3), the board may impose an assessment against an owner of a deed-restricted affordable housing unit that is lower than the assessment imposed against other owners according to the ratio of the number of subdivision interests owned by the owner assessed to the total number of proportional ownership of total subdivision interests subject to assessments.(3) This subdivision does not apply to a development where 100 percent of the units exclusive of a managers unit or units are occupied by, or available at affordable housing cost to, lower income and moderate-income households, as defined by Sections 50079.5 and 50052.5, respectively, of the Health and Safety Code.(d) For the purposes of this section, quorum means more than 50 percent of the members.
5605. (a) Annual increases in regular assessments for any fiscal year shall not be imposed unless the board has complied with paragraphs (1), (2), (4), (5), (6), (7), and (8) of subdivision (b) of Section 5300 with respect to that fiscal year, or has obtained the approval of a majority of a quorum of members, pursuant to Section 4070, at a member meeting or election.
(b) Notwithstanding more restrictive limitations placed on the board by the governing documents, the board may not impose a regular assessment that is more than 20 percent greater than the regular assessment for the associations preceding fiscal year or impose special assessments which in the aggregate exceed 5 percent of the budgeted gross expenses of the association for that fiscal year without the approval of a majority of a quorum of members, pursuant to Section 4070, at a member meeting or election.
(c) (1) Notwithstanding For an association that records its original declaration on or after January 1, 2024, notwithstanding more restrictive limitations placed on the board by the governing documents, except as provided in paragraph (3), the board shall not impose a regular assessment against an owner of a deed-restricted affordable housing unit that is more than 5 percent greater than the preceding regular assessment.
(2) Notwithstanding For an association that records its original declaration on or after January 1, 2024, notwithstanding any other law, except as provided in paragraph (3), the board may impose an assessment against an owner of a deed-restricted affordable housing unit that is lower than the assessment imposed against other owners according to the ratio of the number of subdivision interests owned by the owner assessed to the total number of proportional ownership of total subdivision interests subject to assessments.
(3) This subdivision does not apply to a development where 100 percent of the units exclusive of a managers unit or units are occupied by, or available at affordable housing cost to, lower income and moderate-income households, as defined by Sections 50079.5 and 50052.5, respectively, of the Health and Safety Code.
(d) For the purposes of this section, quorum means more than 50 percent of the members.