AB 138 . CPA Peer Review . The bill was signed into law in 2009 but took effect July 1 , 2011 . California CPAs are now subject to mandatory review of their auditing and accounting practices . It affects HOAs because CIDs with a gross income over $ 75,000 are required to annually prepare a financial statement on an accrual basis and distribute it to the membership . That statement must be independently reviewed by a California licensed certified public accountant ( unless the governing documents call for an audit instead of a review ). The peer review allows boards to better evaluate any CPAs hired by the board to prepare the association ’ s annual statement . It is analogous to a restaurant getting a letter grade ( A , B , C . . .) posted in their window for their food preparation practices . The peer review report is then available to clients who request it .

AB 771 . Escrow Documents . Existing law requires that associations provide specified documents upon request by escrow officers when a unit is sold . AB 771 amends Civil Code § 1368 to require sellers to also provide twelve months of minutes if so requested . The bill also creates a new § 1368.2 , which provides a form that associations must fill out when records are requested under § 1368 . It allows associations to collect a reasonable fee based on their actual costs but prohibits charging additional fees for electronic delivery of documents . Delivery of the documents may not be withheld for any reason nor subject to any condition except the payment of the fee .


 AB 818 . Recycling . This is a landlord-tenant change to Public Resources Code that adds § 42913 which may or may not affect common interest developments . The bill requires owners of multifamily dwellings , consisting of five or more living units , to arrange for recycling services for their tenants . It provides for the following exceptions ( i ) if there is inadequate space for recycling containers , ( ii ) a solid waste enterprise

does not serve the property , or ( iii ) the cost of recycling service creates a financial hardship for the multifamily dwelling owner .

SB 150 . Rent Restrictions . SB 150 exempts members from rental prohibitions adopted after January 1 , 2012 unless ( i ) they expressly agree to be bound by the prohibitions or ( ii ) the prohibition was in effect prior to the date the owner bought into the development . In addition , the bill requires owners to provide buyers with a statement describing any provision in the governing documents that prohibits the rental or leasing of units in the development .

SB 183 . Carbon Monoxide Detectors . Carbon monoxide detectors are required in every dwelling unit where the home has a gas burning furnace , cook stove , water heater , wood burning stove , fireplace or attached garage . Anything in the home that burns a fossil fuel can create carbon monoxide--a colorless , odorless gas that can be lethal . Single-family homes must install them by no later than July 1 , 2011 . Condominiums and townhomes must install them by no later than January 1 , 2013 . The requirements are found in Health & Safety Code §§ 17296 , 17926.1 , and 17926.2 .

SB 209 . Electric Charging Stations . SB 209 prohibits HOAs from unreasonably restricting the installation of electric vehicle charging stations . Members who place charging stations in the common areas are responsible for costs associated with maintaining and repairing the station as well as costs for damage to common areas and adjacent units resulting from installation and maintenance of the station . The bill imposes other responsibilities on the homeowner , including maintaining an umbrella liability coverage policy of $ 1,000,000 that names the common

interest development as an additional insured . Unfortunately , the new statute allows individual owners to use or occupy common areas contrary to existing statutes and case law .

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SB 221 . Small Claims Jurisdiction Increased . SB 221 increases small claims jurisdiction for personal claims from $ 7,500 to $ 10,000 . It means members can sue their associations for up to $ 10,000 but associations are still limited to $ 5,000 .

SB 337Political Signs . This bill prohibits a landlord from prohibiting a tenant from posting or displaying political signs relating to an election or legislative vote , the initiative , referendum , or recall process , or issues before a public body for a vote , except under certain circumstances . Political signs may be posted or displayed in the window or on the door of the premises leased by the tenant in a multifamily dwelling , or from the yard , window , door , balcony , or outside wall of the premises leased by a tenant of a single-family dwelling . The bill would require a tenant to comply with the time period established by the local ordinance for the posting and removal of political signs or , in the absence of those provisions , by reasonable time limits , as specified , established by the landlord . Posting must comply with

lawful provisions of a CID ( Civ . Code § 1353.6 ).

SB 563 . Open Meeting Act . S . B . 563 amends Civil Code §§ 1363 , 1363.05 and 1365.2 . ( 1 ) The bill requires that boards now give notice of executive session meetings at least two days prior to meetings that are solely in executive session , i . e ., not in conjunction with an open meeting . The notice must contain an agenda for the meeting . ( 2 ) Except for emergencies , boards are no longer allowed to make decisions by email . Emergency meetings may be held by email if all members of the board , individually or collectively , consent in writing to the action , and if the written consent or consents are filed with the minutes of the meeting of the board . ( 3 ) Board meetings can be held electronically if it includes at least one physical location where members can attend and at least one member of the board of directors is present at that location . All board members and homeowners must be able to hear one another .