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AB-3182 Common interest developments: governing documents: rental or leasing of separate interests.(2019-2020)

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Date Published: 05/07/2020 09:00 PM
AB3182:v97#DOCUMENT

Amended  IN  Assembly  May 07, 2020
Amended  IN  Assembly  May 04, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 3182


Introduced by Assembly Member Ting

February 21, 2020


An act to amend Section 4740 of the Civil Code, relating to common interest developments.


LEGISLATIVE COUNSEL'S DIGEST


AB 3182, as amended, Ting. Common interest developments: governing documents: rental or leasing of separate interests.
Existing law, the Davis-Stirling Common Interest Development Act, defines and regulates common interest developments. Existing law provides that an owner of a separate interest in a common interest development shall not be subject to a provision in a governing document or an amendment to a governing document that prohibits the rental or leasing of any separate interest in that common interest development to a renter, lessee, or tenant unless that governing document, or amendment thereto, was effective before the date the owner acquired title to the owner’s separate interest. Existing law permits an owner of a separate interest of a common interest development, despite the above provision, to expressly consent to be subject to a governing document or an amendment to a governing document that prohibits the rental or leasing of any of the separate interests in the common interest development to a renter, lessee, or tenant. Existing law specifies that an owner’s right to rent or lease the separate interest shall not be deemed to have terminated if the transfer meets one of specified conditions, including that the transfer is exempt for purposes of reassessment by the county tax assessor. Existing law makes these provisions applicable only to a provision in a governing document or a provision in an amendment to a governing document that became effective on or after January 1, 2012.
This bill would revise these provisions to instead make void and unenforceable any governing document that purports to prohibit the rental or leasing of any of the separate interests in a common interest development. The bill would also provide that an owner of a separate interest in a common interest development is not subject to a provision in a governing document or an amendment to a governing document that effectively prohibits or unreasonably restricts the rental or leasing of any of the separate interests in that common interest development to a renter, lessee, or tenant. The bill would make the bill’s provisions inapplicable to a provision in a governing document that prohibits short-term rentals of 30 days or less.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 Section 4740 of the Civil Code is amended to read:

4740.
 (a) Any governing document that purports to prohibit the rental or leasing of any of the separate interests in a common interest development to a renter, lessee, or tenant is void and unenforceable.
(b) An owner of a separate interest in a common interest development shall not be subject to a provision in a governing document or an amendment to a governing document that either effectively prohibits or unreasonably restricts the rental or leasing of any of the separate interests in that common interest development to a renter, lessee, or tenant.
(c) Prior to renting or leasing a separate interest as provided by this section, an owner shall provide the association verification of the date the owner acquired title to the separate interest and the name and contact information of the prospective tenant or lessee or the prospective tenant’s or lessee’s representative.
(d) This section shall not be deemed to revise, alter, or otherwise affect the voting process by which a common interest development adopts or amends its governing documents.
(e) This section shall not apply to a provision in a governing document that prohibits the short-term rental of a separate property interest for a period of 30 days or less.