If you live in an HOA community in California, you’d better start collecting your change. California Assembly Bill 698 could take responsibility for exclusive use common areas away from home owner associations, and place it in the laps of homeowners. It is imperative to understand the proposed changes, as it looks like they may soon take effect.
The bill rewritesÂ Civil Code section 4775, which specifies who pays to maintain, repair and replace identified areas of residential developments governed by homeowner associations called exclusive use common areas. Under the new rules HOAs will be able to redefine the maintenance requirements for these areas, and homeowners will have to comply -Â the HOA will be able to bring action against the homeowner for failure to do so. This will give much power to HOA boards and could lead to abuse.
Here is how certain areas are defined under current rules (check your HOA documents to see if you have exclusive use common areas):
Common areas – the associations are liable for maintaining these areas, which typically include areas that server the entire development such as pools, grassy areas,Â play areas or parks, and roofs if the development is a condo or townhome.
Separate interest areas – these areas are usually the responsibility of the homeowner, and include the interior of townhomes or condominiums.
Exclusive use common areas – such areas are considered “appurtenant to” to the property (meaning they are attached or considered to go along with the property), and these areas tend to be maintained by the HOAs currently. They usually include areas that are useable by some owners, but not all, such as a deck or patio.
Homeowners who do not comply under the new rules will be subject to assessments or fines by the HOAs. They may also be able to place liens on the properties and force sales where there is no compliance with maintenance requirements. If homeowners are unable to pay, this could lead to foreclosure (worse case scenario).
How to prevent new changes in your HOA policy: The only way you can prevent such changes from occurring in your HOA community is to get involved and vote against any changes that will give broad power to your HOA. You need to be very aware and very involved – you cannot rely on others to deal with this problem because you will need a majority vote and there is strength in numbers.
You also should learn as much as you can about common area and exclusive use common areas boundaries defined in property surveys of your home and development, including any government definitions. The more you know, the better empowered you will be to make a difference in your community and your wallet. To see the bill, click here.