Bill > SF1750

This bill modifies various provisions related to common interest communities (CICs), which are developments where individuals own individual units but share ownership and responsibility for common areas. Key changes include clarifying definitions within CICs, such as defining "first mortgage" and "first mortgagee" and adding "governing documents" and "property manager." The bill adjusts the thresholds for terminating a CIC, requiring higher percentages of unit owner and first mortgagee agreement for termination, with specific provisions for different types of CICs and a later effective date for these changes. It also modifies the powers and duties of CIC associations, including requiring associations to provide unit owners with at least 21 days' notice before voting on new rules or regulations, and establishes limits on fines for violations, with exceptions for serious issues like health and safety risks or financial enrichment. The bill introduces new requirements for associations regarding dispute resolution, requiring them to offer payment plans for delinquencies and to refer grievances to a common interest community ombudsperson. It also revises foreclosure requirements for unpaid assessments, specifying a minimum delinquency period before foreclosure can begin and outlining notice requirements. Additionally, the bill prohibits local governments from mandating the creation of homeowners associations or dictating their governing documents as a condition for development approval, while allowing them to require maintenance and insurance for common elements. Finally, the bill introduces new disclosure requirements for CICs, including information about reserve studies and a warning to potential buyers about the impact of CIC ownership on property rights and obligations.