AB 1836 Assembly Bill - ENROLLED
AB 1836, Harman. Common interest developments: dispute
resolution.
Existing law provides that a common interest development
association has standing to institute, defend, settle, or intervene
in litigation, arbitration, mediation, or administrative proceedings,
in various circumstances, including enforcement of the governing
documents. The Davis-Stirling Common Interest Development Act
requires, before a common interest development association or an
owner of a separate interest therein brings certain actions related
to the enforcement of the development's governing documents, that the
parties endeavor to submit their dispute to alternative dispute
resolution, as specified. Existing law defines and regulates
operating rules in connection with common interest development
associations and applies them to association procedures for
resolution of assessment disputes.
This bill would revise and recast the provisions described above
relating to dispute resolution. The bill would specify that a common
interest development association and an owner of a separate interest
may enforce governing documents other than the declaration. The
bill would create a new dispute resolution procedure for conflicts
between an association and a member, to be applied when the dispute
concerns specified subjects. The bill would require an association
to provide a fair, reasonable, and expeditious procedure for
resolving these disputes, as defined by certain minimum standards,
and would provide a procedure for associations that do not have a
procedure of their own that meets the minimum standards, among them
that the member not be charged a fee to participate in the process.
The bill would also require that the association provide notice of
its dispute resolution process, as specified.
This bill would revise the existing dispute resolution provisions,
described above, to clarify their application to other nonjudicial
processes and to broaden their applicability to include actions
enforcing the Davis-Stirling Common Interest Development Act and the
Nonprofit Mutual Benefit Corporation Law. Among other things, the
bill would also provide for the tolling of a statute of limitations
in certain circumstances, expand the permissible methods of service
of a request to submit a dispute to the resolution process, and
change the confidentiality protections applied to these procedures.
The bill would require that a common interest development association'
s procedures for the resolution of all disputes, not only those
related to assessments, satisfy requirements regarding association
operating rules. The bill would make additional technical and
conforming changes.
The bill would incorporate additional changes in Section 1357.120
of the Civil Code proposed by AB 2376 that would become operative
only if AB 2376 and this bill are both chaptered and become effective
on or before January 1, 2005, and this bill is chaptered last.