Notice of Owner Information to Association
On September 28, 2016, Governor Brown signed into law Senate Bill 918, adding Civil Code Section 4041 to the Davis-Stirling Common Interest Development Act. Effective January 1, 2017, homeowners will be required to provide annual written notice to their community associations with certain disclosures:
- Address or addresses to which notices from the association are to be delivered
- Alternate or secondary address to which notices from the association are to be delivered
- The name and address of the owner’s legal representative, if any, including any person with power of attorney or other person who can be contacted in the event of the owner’s extended absence from the separate interest
- Whether the separate interest is owner-occupied, is rented out, if the parcel is developed but vacant, or if the parcel is undeveloped land
Civil Code Section 4041 will also require community associations to solicit, on an annual basis, these notices from each homeowner. Associations must then enter the data from notices received from the homeowners into the association’s books and records at least 30 days prior to mailing the association’s annual budget report disclosures under Section 5300. If homeowners fail to provide the notices, the property address of the owner’s separate interest within the association is deemed the address to which notices are to be delivered.
This new law raises some concerns for boards of directors and management to consider:
- Allowing time to prepare the annual notice form with the new information
- Scheduling an annual solicitation of the annual notices from the homeowners
- Updating the association’s records and books annually, at least 30 days prior to providing the annual budget report
- Budgeting for increased time and cost expenditures
Associations and management should consult with legal counsel to ensure compliance with this new requirement in 2017.
The attorneys and staff at Peters & Freedman, L.L.P., are seasoned professionals in the field of community association law. With experienced attorneys, paralegals, assessment collection specialists and expert administrative staff, Peters & Freedman, L.L.P. is committed to providing effective, innovative and comprehensive legal services to community associations throughout Southern California. As a full service Law Firm, we can help you with any issue facing your association. To learn more visit www.hoalaw.com.