July 2009  

We do not make jokes, we simply watch the LA Times, the Orange County Register and CID/HOA board of directors and report the facts

 LETTERS

The $4 Million+ Questions

To All

Cris Trapp states that beginning in January 1988, with the passage of AB 279 in 1987, a transfer fee was no longer collected upon the sale of a manor. Someone forgot to tell the new buyers because the financial statements tell us that they paid $4,192, 458.00 just from 1998 to the present time. 

PCM and our Boards continue to insist that the Assembly Bill 279 passed in 1987 made it illegal to charge a transfer fee. Not true.

THE TRANSFER FEE WAS NEVER MADE ILLEGAL AND IS STILL BEING COLLECTED BY GRF.

Janet Price states that the Administrative Fee to GRF is charged on all resales, and represents the cost to update the membership records, provide copies of the governing documents, etc.

According to  AB 279, September 1987 "This bill would provide that an association shall not impose or collect any assessment, penalty, or fee in connection with a transfer of title except the association’s actual costs to change its records and the fee for providing documents."

The administrative transfer fee of $250 was established on December 4, 1984, increased to $300 on October 5, 1993 and increased again to $350 effective January 2001.

Existing law (D/S 1368) authorizes a common interest subdivision association to charge a fee for providing copies of certain documents in connection with a transfer of title of a separate interest.

Cris Trapp also states that in 2002, the community embarked on an effort to introduce legislation that would revise Civil Code1368 to allow the collection of a resale transfer fee by GRF and/or the housing mutual. She writes that a legislative strategist was hired by GRF who was optimistic that the code section could be revised. The legislative strategist turned out to be a lobbyist and the effort was unsuccessful. She says because of strong opposition from the California Association of Realtors. Wrong again, the revised Polanco bill ran into a House Rule (see attached HR 77) and did not get one vote. There is more that I could write about but I just want to add on more item which I feel is very important and deals directly to Mr. Hatch's grandiose dream -  AB 2546 "This law voids any rule or regulation that arbitrarily or unreasonably restricts the ability of an owner to market his or her property."

One final comment: GRF should not be involved, they have no manors. Also, the $350 fee-United and the $400 fee (Third) is excessive and in violation of section 1366.1, the actual corporation cost is about $30.00 - Laguna Woods Resident Joe Fishler 

EDITORS NOTE:  We asked Ms. Trapp to comment on this letter prior to publication.  We have not heard from Ms. Trapp


 Polanco-Roos file$75,000

What reasonable person, in his right mind. would pay $75,000 for something that he could get free.   No one, except GRF and PCM.   On January 12, 2000,  GRF directed PCM staff to research and approach our Legislators from Orange County with a proposal to re-institute transfer fee legislation,  Milt Robbins said the the legislature  had ruled in 1987 that communities could no longer charge that kind of a fee.   Wrong Mr. Robbins; The fact is that AB279 told Leisure World  to stop charging an excessive fee that was and still is prohibited by Civil Code  Section 1368[c];  "an association shall not impose or collect any assessment, penalty or fee in connection with a transfer of title or any other interest except the organization's actual costs to change its records,"

 

POLANCO-ROOS SB 1564

Transfer Fee

Why did Mike Roos go to State Senator  Polanco, Los Angeles,District, to pass a bill that favors Leisure World, located in Orange County. Why weren't Senators Morrow,  Ross,  Pat Bates, andJohn Campbell consulted?

It just so happens that Mike Roos, legislative consultant , is a personal friend of Senator Polanco. This also brings up the question of who brought Mike Roos into the picture in the first place. PCM staff had to brief Mike Roos about the financial situation that exists in Leisure World. When were these meetings with  Roos held and who participated? Did the deliberations take place in open meetings or in closed sessions? How did they arrive at the ridiculous  $75,000. fee they were going to pay Mike Roos? Milt Johns and Milt Robbins should answer these questions at the next Board meeting and in the Director's Corner of the Leisure World News.  Specifically, who,when. where and why did PCM and GRF hire Mike Roos?* {see footnote below}

 Bert Hack introduced Mike Roos to the Presidents of the Boards and Milt Johns. The connection could be that Larry Agran of Irvine is a friend of Bert Hack., from the anti-El Toro deal. Mike Roos was paid 600,000 dollars to help fight the airfield. He is not a registered lobbyist but a former assembly man from Silverlake, Los Angeles who resigned when threaten with  FBI and  IRS investigations and a recall movement.

In Sacramento, new bills have to be introduced no later than 28 February. One method used to get new legislation introduced after the 28th of February is to amend a bill that is being considered in the present session.This means that an existing piece of legislation must be amended. Mike Roos, a former State Assemblyman, succeeded in getting Senator  Polanco to amend his bill {SB 1564} which dealt with manufactured housing. The amended bill now deals with granting Leisure  World, and only Leisure World.the authority to charge a transfer fee, The following paragraphs are included in SB 1564.

 "    2)Self determination  .  The sponsors of this bill have pointed to 

            the near unanimous support from the 16,000 approximate 

            residents of Leisure World as evidence that the affected 

            persons desire the ability to be masters of their own destiny. 

             This bill if enacted though will only affect future 

            homebuyers. 

 

           3)Quasi Tax levy  .  CIDs look and act, in many instances, like 

            local governments.  The board of directors may determine     

           the amount of homeowners' dues and assessments.  This bill     would allow an assessment to be levied upon the sale of a home.  

            Such an assessment is for all practical effect a transfer tax. 

             The committee may wish to consider and ask of the sponsors of this measure, why are they unable to increase assessments on the existing residents who have enjoyed the use of those facilities. "

 

*This is an item about Mike Roos; "Whatever happened to California Assembly Speaker Pro Tem Mike Roos? you know. Co-author of the Roos-Roberti 'assault weapon ban' your talking nationwide. We can tell you about that. We documented Assembly Roos' politics in a 14- page mailer, sent it to all his constituents, asked them to call the FB! and DOJ to demand an investigation, then started a recall campaign. Roos resigned 10 weeks later.They said it couldn't be done in a 70% Demo district. We did it and liked it"

 

 Substantially Amended Bills

 

           77.2.  If the analysis of an amendment adopted on the floor

discloses that the amendment makes a substantial substantive change to a bill

as passed by the last committee of reference, the bill, as amended, may be

referred by the Speaker to the appropriate committee.

           A bill that was previously reported from a policy or fiscal

committee of reference in compliance with Joint Rule 61 is not subject to the

deadlines in Joint Rule 61 if the bill is subsequently referred to a policy or

fiscal committee pursuant to this rule.

           If the digest to an Assembly Bill that has been returned to the

Assembly by the Senate for concurrence in Senate amendments discloses that the

Senate has made a substantial substantive change in the bill as first passed by

the Assembly, the bill may be referred by the Speaker to the appropriate

committee.

 

 

ASSEMBLY BILL 2546 - MARKETING AND SELLING PROPERTY

This law voids any rule or regulation that arbitrarily or unreasonably restricts the ability of an owner to market his or her property. The new law also prohibits an association from adopting, enforcing or imposing a rule or regulation that: (1) imposes an assessment or fee in connection with the marketing of an owner's property interest in excess of the association's actual or direct costs;
or (2) establishes an exclusive relationship with a real estate broker through which the sale or marketing to the property is required to occur. \par

Assembly Bill No.279

CHAPTER 596

An act to amend Sections 1366 and 1368 of the Civil Code, relating to homeowner’s associations.

            (Approved by the Governor September 12, 1987. Filed with

Secretary of State September 14, 1987)

LEGISLATIVE COUNSEL’S DIGEST

AB 279, Frazee    Common interest developments

  Existing law limits the assessment increases that may be imposed by the board of directors of a homeowner’s association for a common interest development by generally limiting an increase in the regular assessment to 10% per year and by limiting special assessments to 5% of the budgeted gross expenses, without the approval of the owners casting a majority of votes at a meeting or election, as specified. However, as exceptions to that limitation, existing law provides that the limit does not apply to increases for the purpose of the maintenance or repair of common areas or for emergency situations.

  This bill would, instead, limit the percentage increase in regular assessments to 20% and would also provide that the regular and special assessment limits may not be exceeded without the approval of owners constituting a quorum, as defined. The bill would also define the emergency situations for which those limitations may be exceeded.

  Existing law requires a common interest subdivision association to levy assessments sufficient to perform its obligations unless otherwise provided in the governing declaration of the association. Existing law limits assessments increases by the association and those limits are in addition to limitations in the governing declaration.

  This bill with respect to the duty to levy assessments, would eliminate the provisions that made that duty subject to any other provision of the declaration, and with respect to the limitation on assessment increases, would make those limitations applicable not withstanding any more restrictive limitations in the governing documents.

   Existing law authorizes a common interest subdivision association to charge a fee for providing  copies of certain documents in connection with a transfer of title of a separate  interest.

  This bill would provide that an association shall not impose or collect any assessment, penalty, or fee in connection with a transfer of title except the association’s actual costs to change its records and the fee for providing documents.

The people of the State of California do enact as follows:

 

   Section 1. Section 1366 of the Civil Code is amended to read:

   1366.  (a) Except as provided in this section, the association shall levy regular  and special assessments sufficient to perform its obligations under the governing documents and this title.

 

   (b) Notwithstanding more restrictive limitations placed on the board by the governing documents , the board of directors may not impose a regular assessment  that is more than 20 percent greater than the regular assessment for the association’s preceding fiscal year or impose special assessments which in the aggregate exceed 5 percent of the budgeted gross expenses of the association for that fiscal year without the approval of the owners, constituting a quorum, casting a majority of the votes at a meeting or election of the association conducted in accordance with Chapter 5 (commencing with Section 7510) of Part 3 of Division 2 of Title 1 of the Corporations Code and Section 7613 of the Corporations Code. For the purposes of this section, quorum means more than 50 percent of the owners of  an association. This section does not limit assessment increases necessary for emergency situations. For purposes of this section, an emergency situations one of the following:

 

   (1) An extraordinary expense required by an order of the court.

 

   (2) An extraordinary expense necessary to repair or maintain the common interest development or any part of it for which the association is responsible where a threat to personal safety on the property is discovered.

 

   (3) An extraordinary expense necessary to repair or maintain the common interest development or any part of it for which the association is responsible that could not have been more reasonably foreseen by the board in preparing and distributing the proforma operating budget under Section 1365. However, prior to the imposition or collection of an assessment under this subdivision, the board shall pass a resolution containing written findings as to the necessity of the extraordinary expense involved and why the expense was not or could not been reasonably foreseen in the budgeting process, and the resolution shall be distributed to the members with the notice of the assessment.

   (c)  Regular and special assessments levied pursuant to the governing documents are delinquent 15 days after they become due. If an assessment is delinquent the association may recover all of the following:

 

   (1)  Reasonable costs incurred in collecting the delinquent assessment, including reasonable attorney’s fees.

 

   (2)  A late charge not exceeding 10 percent of the delinquent assessment or ten dollars ($10), whichever is the greater, unless the declaration specifies a late charge in a smaller amount, in which case any late charge imposed shall not exceed the amount specified in the declaration.

 

   (3)  Interest on all sums imposed in accordance with this section, including the delinquent assessment, reasonable costs of collection, and late charges, at an annual percentage rate not to exceed 12 percent interest, commencing 30 days after the assessment becomes due.

 

   (d)  Associations are hereby exempted from interest-rate limitations imposed by Article XV of the California Constitution, subject to the limitations of this section.

 

    SEC. 2  Section 1368 of the Civil Code is amended to read:

 

    1368.  (a) The owner of the separate interest, other than an owner subject to the requirements of Section 11018.6  of the  Business and Professions  Code, shall, as soon as practicable before transfer of title to the separate interest or execution of a real property sales contract therefor, as defined in Section 2985, provide the following to the prospective purchaser.

 

   (1) A copy of the governing documents of the common interest development.

 

   (2) If there is a restriction in the governing documents limiting the occupancy, residency, or use of a separate interest on the basis of age in a manner different from that provided in Section 51.3, a statement that the restriction is only enforceable in the extent permitted by Section 51.3 and a statement specifying the applicable provisions of Section 51.3.

 

   (3) A copy of the most recent financial statement distributed  pursuant to Section1365.

 

   (4)  A true statement in writing from an authorized representative of the association as to the amount of any assessments levied upon the owner’s interest in the common interest development which are unpaid on the date of the statement. The statement shall also include true information on late charges, interest, and costs of collections which, as of the date of the statement,  are and may be made a lien upon the owner’s interest in a common interest development pursuant to Section1367.

 

   (b)  Upon written request, an association shall, within 10 days of the mailing or delivery of the request, provide the owner of a separate interest with a copy of the requested items specified  in paragraphs (1), (2),  (3) and (4) of subdivision (a). The association may charge a fee for this service which shall not exceed the association’s reasonable cost to prepare and reproduce the requested items.

 

   (c) An association shall not impose or collect any assessment, penalty, or fee in connection with a transfer of title or any other interest except the association’s actual costs to change its records and  that authorized by subdivision (b).

 

   (d) Any person or entity who willfully violates this section shall be liable to the purchaser of a separate interest which is subject to this section for actual damages occasioned thereby and, in addition, shall pay a civil penalty in an amount not to exceed five hundred dollars ($500). In an action to enforce this liability, the prevailing party shall be awarded reasonable attorney’s fees.

   (e) Nothing in this section affects the validity of title to real property transferred in violation of this section.

   (f) In addition to the requirements of this section, an owner transferring title to a separate interest shall comply with applicable requirements of Sections 1133 and 1134.

    

 

 

 

 

 

RELATED VIDEO CLIPS

June 2, 2009 GRF Meeting - The Shut Up Rule in Effect
All residents want form Mr. Stuller is a little R.E.S.P.E.C.T - Click here for the rest of the story

 

Desperate HOA Directors - Your Are Out of Order!

 

June 2, 2009 Golden Rain Foundation annotated board Meeting - as Board President denigrates fellow director and cancer patient Michael Curtis, while defending property management company's actions  Click here for the rest of the story.. 
Desperate Directors of Laguna Woods - The Facts Behind the Fiction Part Two - Click here for video

 

 

 

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