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