Governator Terminates HOA Bill Allowing Boards to Enter into Long Term Conservation Contracts

Gov. Schwarzenegger recently vetoed California’s AB 1328. AB 1328 would have provided that a homeowners association could enter into a contract for a water or energy efficiency program, for a term of up to five years, if the board of directors reasonably anticipated that the contract would result in verifiable savings to the association.

vetoGov. Schwarzenegger recently vetoed California’s AB 1328. AB 1328 would have provided that a homeowners association could enter into a contract for a water or energy efficiency program, for a term of up to five years without owner approval, if the board of directors reasonably anticipated that the contract would result in verifiable savings to the association. This would have allowed HOAs to take advantage of long term savings and actively engage in energy conversation which is essentially mandated by California’s AB 32.  However, the Governator vetoed the bill claiming that it was unnecessary and would override the requirement that most contracts which are longer than one year obtain homeowner approval.

AB 1328 would have allowed HOAs, and by extension homeowners, the ability to obtain long term savings if they were able to locate vendors to provide extended water and energy conservation programs for their community. Boards are required to use sound business judgment and protect the assets of an Association.  Further, under the bill homeowners were to be notified of the terms of the contracts and provided an opportunity to be heard at an open meeting prior to the Board’s execution of any such contracts. It seems that there were sufficient protections in place to allow Boards to explore and enter into these types of long term contracts. Remember, Boards would not be required to enter into such contracts. The bill just would have given Boards the flexibility to enter into longer term contracts if sufficient savings could be found.

It is disappointing that while California’s State government continues to impose regulations on local entities such as HOAs, it also deprives them of tools which would allow them to meet the requirements at a reduced cost.

The California Association of Community Managers (CACM) and the California Association of Realtors (CAR) both supported the bill. The Executive Council of Homeowners (ECHO) was neutral.

California Bill Which Would Void CC&Rs Gathers Steam

Assembly Bill 1061 bill sailed through its first test Tuesday with unanimous approval from the Assembly Water, Parks and Wildlife Committee. Under the bill, homeowner association rules would be “void and unenforceable” if they restrict compliance with local landscaping ordinances or conservation measures.

low-water-landscapeAssembly Bill 1061 bill sailed through its first test Tuesday with unanimous approval from the Assembly Water, Parks and Wildlife Committee. Under the bill (previously covered here), homeowner association rules would be “void and unenforceable” if they restrict compliance with local landscaping ordinances or conservation measures.

While the goals of the bill may be admirable, it is written so broadly it could disrupt homeowner groups’ authority to review an individual homeowner’s landscaping plans that spell out the type, number and placement of plants.

Many people chose to live in developments with association rules because they like the appearance of common landscaping, architectural design and colors.  While the state may have an interest in conservation, it is hoped that the legislature will amend the bill to need to protect the interests of homeowners who purchase in a common interest development because they like the fact that the uniform rules help preserve property values, and improve the general appearance of a community.

I still suspect that the bill is largely unnecessary and disputes over the installation of drought tolerant plants are rare.  I would love to hear if anyone has been involved or is aware of such disputes within their association.

Proposed California Bill Lets Water Agency Trump Homeowners Association Rules

California’s AB 1061, introduced on February 27 by Assemblyman Ted Lieu would repeal a portion of the Davis-Stirling Act as it relates to water efficient plants.

landscaping-with-drought-tolerant-plants-2California’s AB 1061, introduced on February 27 by Assemblyman Ted Lieu would repeal a portion of the Davis-Stirling Act as it relates to water efficient plants.  Currently, the Davis-Stirling Act provides that the architectural guidelines of a common interest development shall not prohibit or include conditions that have the effect of prohibiting the use of low water-using plants as a group.  AB 1061 would enforce a model conservation ordinance that state officials plan to complete next year. Local water districts would be able to use the model ordinance as a blueprint for their own conservation rules.  As long as the water districts obey the model ordinance guidelines, anything in the rules of a community association development that conflicts with local water district’s regulations or restrictions would be “void and unenforceable.”

Water wholesaler Metropolitan Water District is sponsoring the legislation claiming the bill clarifies how homeowners can install water-efficient landscaping without running afoul of association rules. With California in a drought and rationing under way or looming in many districts, the agency claims it is looking for any way to stretch out its supplies. However, one has to wonder whether the bill is even necessary since there have only been isolated instances of conflicts between homeowner members eager to save water and associations that outlawed particular types of water-efficient landscaping.

Nevada Bill Limits Restrictions on Solar Energy Systems

The Nevada Senate voted Monday for an alternative energy bill that would limit a homeowner association’s ability to restrict the installation and use of solar energy systems.

Solar Energy System

The Nevada Senate voted Monday for an alternative energy bill that would limit a homeowner association’s ability to restrict the installation and use of solar energy systems.

Sen. Mike Schneider, author of SB 114, says the bill strengthens existing laws that already prohibit homeowner associations from interfering with installation of solar energy systems. Currently, a homeowners’ association in Nevada can impose restrictions that, while not prohibiting solar energy systems, could make them so much more costly and so much less efficient that the restrictions effectively act as a prohibition.

Under the bill, the director of the Nevada Office of Energy would have final say as to whether a restriction imposed by a homeowner association violates the rights of a homeowner to use or install a solar energy system.

The proposed bill also deems any restrictions that reduce efficiency of solar energy systems by more than 10% to be unreasonable.

Coupled with California’s Climate Change Solutions Act, a clear trend is emerging requiring HOAs to focus more attention on all aspects of energy efficiency.

Is AB 49 Unfair to Green Homeowners Associations?

Proposed California bill AB49 requires an across-the-board reduction in water use by 2020. Such a requirement is unfair to those Homeowners Associations which have already voluntarily invested thousands of dollars and resources to reduce their water consumption, while excusing those who have done nothing.

WaterProposed California bill AB49 requires an across-the-board reduction in water use by 2020. Such a requirement is unfair to those Homeowners Associations which have already voluntarily invested thousands of dollars and resources to reduce their water consumption, while excusing those who have done nothing.

Such an amendment will reward those Homeowners Associations who have not adopted water use reduction strategies while still requiring those who have to comply with a 20% reduction.  Those Associations that have achieved significant water reduction will have to further reduce their consumption by 20%, a requirement which could have disastrous consequences for both the aesthetic appeal and health of community assets.

AB 49 is another example of the tidal wave of new legislation, regulations, and local ordinances to implement the mandates of AB 32 (The California Climate Change Solutions Act).  The AB 32 CID Advisory Council was established to monitor this type of legislation, and advise of its possible impact.

Contact me for more information on AB 49, AB 32 and its progeny.