Sunday, August 21, 2005

With SB 137, making changes to HOAs

Marjorie Murray wrote this article on an important piece of legislation pending in Sacramento. It was published in the Sacramento Bee. She asked me to publish this so all you activists out there can keep track of this bill and do what is needed to get it passed.

SB 137 would leash homeowner associations that leap to use foreclosure to collect trivial amounts of late assessments owed homeowner associations (HOAs). The proposed law is long overdue.
Sen. Denise Ducheny's legislation would lay out a set of legal tools that HOAs, collection agencies, management companies and law firms could use to collect the dues assessed the 8 million California homeowners living in common interest developments such as condominiums. The tools would include going to small claims court, securing the debt with a lien or invoking dispute resolution. SB 137 is linked to AB 619, which would let homeowners pay a late bill in installments. Current law lets HOAs - without giving a reason - reject a homeowner's petition to pay arrearages on a monthly schedule. Gov. Arnold Schwarzenegger vetoed AB 2598, last year's attempt to curb HOA foreclosure abuse. But his veto message made plain he thinks this issue needs to be resolved. Ducheny and the California Alliance for Retired Americans, sponsor of SB 137, have been working with the governor's office to do just that.

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