CALIFORNIA CODES CIVIL CODE SECTION 1350 -1376 1350

CALIFORNIA CODES CIVIL CODE SECTION 1350 -1376 1350 . This title shall be known and may be cited as the

Davis-Stirling Common Interest Development Act.

1351. As used in this title, the following terms have the following

meanings:

(a) "Association" means a nonprofit corporation or unincorporated

association created for the purpose of managing a common interest

development.

(b) "Common area" means the entire common interest development

except the separate interests therein. The estate in the common area

may be a fee, a life estate, an estate for years, or any combination

of the foregoing. However, the common area for a planned

development specified in paragraph (2) of subdivision (k) may consist

of mutual or reciprocal easement rights appurtenant to the separate

interests.

(1) A community apartment project.

(2) A condominium project.

(3) A planned development.

(4) A stock cooperative.

(d) "Community apartment project" means a development in which an

undivided interest in land is coupled with the right of exclusive

occupancy of any apartment located thereon.

(e) "Condominium plan" means a plan consisting of (1) a

description or survey map of a condominium project, which shall refer

to or show monumentation on the ground, (2) a three-dimensional

description of a condominium project, one or more dimensions of which

may extend for an indefinite distance upwards or downwards, in

sufficient detail to identify the common areas and each separate

interest, and (3) a certificate consenting to the recordation of the

condominium plan pursuant to this title signed and acknowledged by

the following:

(A) The record owner of fee title to that property included in the

condominium project.

(B) In the case of a condominium project which will terminate upon

the termination of an estate for years, the certificate shall be

signed and acknowledged by all lessors and lessees of the estate for

years.

the certificate shall be signed and acknowledged by all life tenants

and remainder interests.

(D) The certificate shall also be signed and acknowledged by

either the trustee or the beneficiary of each recorded deed of trust,

and the mortgagee of each recorded mortgage encumbering the

property.

Owners of mineral rights, easements, rights-of-way, and other

nonpossessory interests do not need to sign the condominium plan.

Further, in the event a conversion to condominiums of a community

apartment project or stock cooperative has been approved by the

required number of owners, trustees, beneficiaries, and mortgagees

pursuant to Section 66452.10 of the Government Code , the certificate

need only be signed by those owners, trustees, beneficiaries, and

mortgagees approving the conversion.

A condominium plan may be amended or revoked by a subsequently

acknowledged recorded instrument executed by all the persons whose

signatures would be required pursuant to this subdivision.

(f) A "condominium project" means a development consisting of

condominiums. A condominium consists of an undivided interest in

common in a portion of real property coupled with a separate interest

in space called a unit, the boundaries of which are described on a

recorded final map, parcel map, or condominium plan in sufficient

detail to locate all boundaries thereof. The area within these

boundaries may be filled with air, earth, or water, or any

combination thereof, and need not be physically attached to land

except by easements for access and, if necessary, support. The

description of the unit may refer to (1) boundaries described in the

recorded final map, parcel map, or condominium plan, (2) physical

boundaries, either in existence, or to be constructed, such as walls,

floors, and ceilings of a structure or any portion thereof, (3) an

entire structure containing one or more units, or (4) any combination

thereof. The portion or portions of the real property held in

undivided interest may be all of the real property, except for the

separate interests, or may include a particular three-dimensional

portion thereof, the boundaries of which are described on a recorded

final map, parcel map, or condominium plan. The area within these

boundaries may be filled with air, earth, or water, or any

combination thereof, and need not be physically attached to land

except by easements for access and, if necessary, support. An

individual condominium within a condominium project may include, in

addition, a separate interest in other portions of the real property.

(g) "Declarant" means the person or group of persons designated in

the declaration as declarant, or if no declarant is designated, the

person or group of persons who sign the original declaration or who

succeed to special rights, preferences, or privileges designated in

the declaration as belonging to the signator of the original

declaration.

(h) "Declaration" means the document, however denominated, which

contains the information required by Section 1353.

(i) "Exclusive use common area" means a portion of the common

areas designated by the declaration for the exclusive use of one or

more, but fewer than all, of the owners of the separate interests and

which is or will be appurtenant to the separate interest or

interests.

(1) Unless the declaration otherwise provides, any shutters,

awnings, window boxes, doorsteps, stoops, porches, balconies, patios,

exterior doors, doorframes, and hardware incident thereto, screens

and windows or other fixtures designed to serve a single separate

interest, but located outside the boundaries of the separate

interest, are exclusive use common areas allocated exclusively to

that separate interest.

(2) Notwithstanding the provisions of the declaration, internal

and external telephone wiring designed to serve a single separate

interest, but located outside the boundaries of the separate

interest, are exclusive use common areas allocated exclusively to

that separate interest.

(j) "Governing documents" means the declaration and any other

documents, such as bylaws, operating rules of the association,

articles of incorporation, or articles of association, which govern

the operation of the common interest development or association.

(k) "Planned development" means a development (other than a

community apartment project, a condominium project, or a stock

cooperative) having either or both of the following features:

(1) The common area is owned either by an association or in common

by the owners of the separate interests who possess appurtenant

rights to the beneficial use and enjoyment of the common area.

(2) A power exists in the association to enforce an obligation of

an owner of a separate interest with respect to the beneficial use

and enjoyment of the common area by means of an assessment which may

become a lien upon the separate interests in accordance with Section 1367 or 1367.1.

(l) "Separate interest" has the following meanings:

(1) In a community apartment project, "separate interest" means

the exclusive right to occupy an apartment, as specified in

subdivision (d).

(2) In a condominium project, "separate interest" means an

individual unit, as specified in subdivision (f).

(3) In a planned development, "separate interest" means a

separately owned lot, parcel, area, or space.

(4) In a stock cooperative, "separate interest" means the

exclusive right to occupy a portion of the real property, as

specified in subdivision (m).

Unless the declaration or condominium plan, if any exists,

otherwise provides, if walls, floors, or ceilings are designated as

boundaries of a separate interest, the interior surfaces of the

perimeter walls, floors, ceilings, windows, doors, and outlets

located within the separate interest are part of the separate

interest and any other portions of the walls, floors, or ceilings are

part of the common areas.

The estate in a separate interest may be a fee, a life estate, an

estate for years, or any combination of the foregoing.

(m) "Stock cooperative" means a development in which a corporation

is formed or availed of, primarily for the purpose of holding title

to, either in fee simple or for a term of years, improved real

property, and all or substantially all of the shareholders of the

corporation receive a right of exclusive occupancy in a portion of

the real property, title to which is held by the corporation. The

owners' interest in the corporation, whether evidenced by a share of

stock, a certificate of membership, or otherwise, shall be deemed to

be an interest in a common interest development and a real estate

development for purposes of subdivision (f) of Section 25100 of the Corporations Code .

A "stock cooperative" includes a limited equity housing

cooperative which is a stock cooperative that meets the criteria of Section 33007.5 of the Health and Safety Code .

1352. This title applies and a common interest development is

created whenever a separate interest coupled with an interest in the

common area or membership in the association is, or has been,

conveyed, provided, all of the following are recorded:

(a) A declaration.

(b) A condominium plan, if any exists.

(c) A final map or parcel map, if Division 2 (commencing with Section 66410) of Title 7 of the Government Code requires the

recording of either a final map or parcel map for the common interest

development.

1352.5. (a) No declaration or other governing document shall

include a restrictive covenant in violation of Section 12955 of the

Government Code .

(b) Notwithstanding any other provision of law or provision of the

governing documents, the board of directors of an association,

without approval of the owners, shall amend any declaration or other

governing document that includes a restrictive covenant prohibited by

this section to delete the restrictive covenant, and shall restate

the declaration or other governing document without the restrictive

covenant but with no other change to the declaration or governing

document.

that the association delete a restrictive covenant that violates

subdivision (a), and the association fails to delete the restrictive

covenant within 30 days of receiving the notice, the Department of

Fair Employment and Housing, a city or county in which a common

interest development is located, or any person may bring an action

against the association for injunctive relief to enforce subdivision

(a). The court may award attorney's fees to the prevailing party.

1353. (a) A declaration, recorded on or after January 1, 1986,

shall contain a legal description of the common interest development,

and a statement that the common interest development is a community

apartment project, condominium project, planned development, stock

cooperative, or combination thereof. The declaration shall

additionally set forth the name of the association and the

restrictions on the use or enjoyment of any portion of the common

interest development that are intended to be enforceable equitable

servitudes.

(b) The declaration may contain any other matters the original

signator of the declaration or the owners consider appropriate.

1353. (a) (1) A declaration, recorded on or after January 1, 1986,

shall contain a legal description of the common interest development,

and a statement that the common interest development is a community

apartment project, condominium project, planned development, stock

cooperative, or combination thereof. The declaration shall

additionally set forth the name of the association and the

restrictions on the use or enjoyment of any portion of the common

interest development that are intended to be enforceable equitable

servitudes. If the property is located within an airport influence

area, a declaration, recorded after January 1, 2004, shall contain

the following statement:

NOTICE OF AIRPORT IN VICINITY

This property is presently located in the vicinity of an

airport, within what is known as an airport influence area.

For that reason, the property may be subject to some of the

annoyances or inconveniences associated with proximity to

airport operations (for example: noise, vibration, or odors).

Individual sensitivities to those annoyances can vary from

person to person. You may wish to consider what airport

annoyances, if any, are associated with the property before

you complete your purchase and determine whether they are

acceptable to you.

(2) For purposes of this section , an "airport influence area,"

also known as an "airport referral area," is the area in which

current or future airport-related noise, overflight, safety, or

airspace protection factors may significantly affect land uses or

necessitate restrictions on those uses as determined by an airport

land use commission.

(3) The statement in a declaration acknowledging that a property

is located in an airport influence area does not constitute a title

defect, lien, or encumbrance.

(b) The declaration may contain any other matters the original

signator of the declaration or the owners consider appropriate.

1353.5. (a) Except as required for the protection of the public

health or safety, no declaration or other governing document shall

limit or prohibit, or be construed to limit or prohibit, the display

of the flag of the United States by an owner on or in the owner's

separate interest or within the owner's exclusive use common area, as

defined in Section 1351.

(b) For purposes of this section , "display of the flag of the

United States" means a flag of the United States made of fabric,

cloth, or paper displayed from a staff or pole or in a window, and

does not mean a depiction or emblem of the flag of the United States

made of lights, paint, roofing, siding, paving materials, flora, or

balloons, or any other similar building, landscaping, or decorative

component.

shall be awarded reasonable attorneys' fees and costs.

1354. (a) The covenants and restrictions in the declaration shall

be enforceable equitable servitudes, unless unreasonable, and shall

inure to the benefit of and bind all owners of separate interests in

the development. Unless the declaration states otherwise, these

servitudes may be enforced by any owner of a separate interest or by

the association, or by both.

(b) Unless the applicable time limitation for commencing the

action would run within 120 days, prior to the filing of a civil action by either an association or an owner or a member of a common

interest development solely for declaratory relief or injunctive

relief, or for declaratory relief or injunctive relief in conjunction

with a claim for monetary damages, other than association

assessments, not in excess of five thousand dollars ($5,000), related

to the enforcement of the governing documents, the parties shall

endeavor, as provided in this subdivision, to submit their dispute to

a form of alternative dispute resolution such as mediation or

arbitration. The form of alternative dispute resolution chosen may

be binding or nonbinding at the option of the parties. Any party to

such a dispute may initiate this process by serving on another party

to the dispute a Request for Resolution. The Request for Resolution

shall include (1) a brief description of the dispute between the

parties, (2) a request for alternative dispute resolution, and (3) a

notice that the party receiving the Request for Resolution is

required to respond thereto within 30 days of receipt or it will be

deemed rejected. Service of the Request for Resolution shall be in

the same manner as prescribed for service in a small claims action as

provided in Section 116.340 of the Code of Civil Procedure. Parties

receiving a Request for Resolution shall have 30 days following

service of the Request for Resolution to accept or reject alternative

dispute resolution and, if not accepted within the 30-day period by

a party, shall be deemed rejected by that party. If alternative

dispute resolution is accepted by the party upon whom the Request for

Resolution is served, the alternative dispute resolution shall be

completed within 90 days of receipt of the acceptance by the party

initiating the Request for Resolution, unless extended by written

stipulation signed by both parties. The costs of the alternative

dispute resolution shall be borne by the parties.

or an owner or a member of a common interest development solely for

declaratory relief or injunctive relief, or for declaratory relief or

injunctive relief in conjunction with a claim for monetary damages

not in excess of five thousand dollars ($5,000), related to the

enforcement of the governing documents, the party filing the action

shall file with the complaint a certificate stating that alternative

dispute resolution has been completed in compliance with subdivision

(b). The failure to file a certificate as required by subdivision

(b) shall be grounds for a demurrer pursuant to Section 430.10 of the Code of Civil Procedure or a motion to strike pursuant to Section 435 of the Code of Civil Procedure unless the filing party certifies

in writing that one of the other parties to the dispute refused

alternative dispute resolution prior to the filing of the complaint,

that preliminary or temporary injunctive relief is necessary, or that

alternative dispute resolution is not required by subdivision (b),

because the limitation period for bringing the action would have run

within the 120-day period next following the filing of the action, or

the court finds that dismissal of the action for failure to comply

with subdivision (b) would result in substantial prejudice to one of

the parties.

(d) Once a civil action specified in subdivision (a) to enforce

the governing documents has been filed by either an association or an

owner or member of a common interest development, upon written

stipulation of the parties the matter may be referred to alternative

dispute resolution and stayed. The costs of the alternative dispute

resolution shall be borne by the parties. During this referral, the

action shall not be subject to the rules implementing subdivision (c)

of Section 68603 of the Government Code .

(e) The requirements of subdivisions (b) and (c) shall not apply

to the filing of a cross-complaint.

(f) In any action specified in subdivision (a) to enforce the

governing documents, the prevailing party shall be awarded reasonable

attorney's fees and costs. Upon motion by any party for attorney's

fees and costs to be awarded to the prevailing party in these

actions, the court, in determining the amount of the award, may

consider a party's refusal to participate in alternative dispute

resolution prior to the filing of the action.

(g) Unless consented to by both parties to alternative dispute

resolution that is initiated by a Request for Resolution under

subdivision (b), evidence of anything said or of admissions made in

the course of the alternative dispute resolution process shall not be

admissible in evidence, and testimony or disclosure of such a

statement or admission may not be compelled, in any civil action in

which, pursuant to law, testimony can be compelled to be given.

(h) Unless consented to by both parties to alternative dispute

resolution that is initiated by a Request for Resolution under

subdivision (b), documents prepared for the purpose or in the course

of, or pursuant to, the alternative dispute resolution shall not be

admissible in evidence, and disclosure of these documents may not be

compelled, in any civil action in which, pursuant to law, testimony

can be compelled to be given.

(i) Members of the association shall annually be provided a

summary of the provisions of this section , which specifically

references this section . The summary shall include the following

language:

"Failure by any member of the association to comply with the

prefiling requirements of Section 1354 of the Civil Code may result

in the loss of your rights to sue the association or another member

of the association regarding enforcement of the governing documents."

The summary shall be provided either at the time the pro forma

budget required by Section 1365 is distributed or in the manner

specified in Section 5016 of the Corporations Code .

(j) Any Request for Resolution sent to the owner of a separate

interest pursuant to subdivision (b) shall include a copy of this section .

1355. (a) The declaration may be amended pursuant to the governing

documents or this title. Except as provided in Section 1356, an

amendment is effective after (1) the approval of the percentage of

owners required by the governing documents has been given, (2) that

fact has been certified in a writing executed and acknowledged by the

officer designated in the declaration or by the association for that

purpose, or if no one is designated, by the president of the

association, and (3) that writing has been recorded in each county in

which a portion of the common interest development is located.

(b) Except to the extent that a declaration provides by its

express terms that it is not amendable, in whole or in part, a

declaration which fails to include provisions permitting its

amendment at all times during its existence may be amended at any

time. For purposes of this subdivision, an amendment is only

effective after (1) the proposed amendment has been distributed to

all of the owners of separate interests in the common interest

development by first-class mail postage prepaid or personal delivery

not less than 15 days and not more than 60 days prior to any approval

being solicited; (2) the approval of owners representing more than

50 percent, or any higher percentage required by the declaration for

the approval of an amendment to the declaration, of the separate

interests in the common interest development has been given, and that

fact has been certified in a writing, executed and acknowledged by

an officer of the association; and (3) the amendment has been

recorded in each county in which a portion of the common interest

development is located. A copy of any amendment adopted pursuant to

this subdivision shall be distributed by first-class mail postage

prepaid or personal delivery to all of the owners of separate

interest immediately upon its recordation.

1355.5. (a) Notwithstanding any provision of the governing

documents of a common interest development to the contrary, the board

of directors of the association may, after the developer of the

common interest development has completed construction of the

development, has terminated construction activities, and has

terminated his or her marketing activities for the sale, lease, or

other disposition of separate interests within the development, adopt

an amendment deleting from any of the governing documents any

provision which is unequivocally designed and intended, or which by

its nature can only have been designed or intended, to facilitate the

developer in completing the construction or marketing of the

development. However, provisions of the governing documents relative

to a particular construction or marketing phase of the development

may not be deleted under the authorization of this subdivision until

that construction or marketing phase has been completed.

(b) The provisions which may be deleted by action of the board

shall be limited to those which provide for access by the developer

over or across the common area for the purposes of (a) completion of

construction of the development, and (b) the erection, construction,

or maintenance of structures or other facilities designed to

facilitate the completion of construction or marketing of separate

interests.

subdivision (a), the board of directors of the association shall mail

to all owners of the separate interests, by first-class mail, (1) a

copy of all amendments to the governing documents proposed to be

adopted under subdivision (a) and (2) a notice of the time, date, and

place the board of directors will consider adoption of the

amendments. The board of directors of an association may consider

adoption of amendments to the governing documents pursuant to

subdivision (a) only at a meeting which is open to all owners of the

separate interests in the common interest development, who shall be

given opportunity to make comments thereon. All deliberations of the

board of directors on any action proposed under subdivision (a)

shall only be conducted in such an open meeting.

(d) The board of directors of the association may not amend the

governing documents pursuant to this section without the approval of

the owners, casting a majority of the votes at a meeting or election

of the association constituting a quorum and conducted in accordance

with Chapter 5 (commencing with Section 7510) of Part 3 of Division 2

of Title 1 of, and Section 7613 of, the Corporations Code . For the

purposes of this section , "quorum" means more than 50 percent of the

owners who own no more than two separate interests in the

development.

1356. (a) If in order to amend a declaration, the declaration

requires owners having more than 50 percent of the votes in the

association, in a single class voting structure, or owners having

more than 50 percent of the votes in more than one class in a voting

structure with more than one class, to vote in favor of the

amendment, the association, or any owner of a separate interest, may

petition the superior court of the county in which the common

interest development is located for an order reducing the percentage

of the affirmative votes necessary for such an amendment. The

petition shall describe the effort that has been made to solicit

approval of the association members in the manner provided in the

declaration, the number of affirmative and negative votes actually

received, the number or percentage of affirmative votes required to

effect the amendment in accordance with the existing declaration, and

other matters the petitioner considers relevant to the court's

determination. The petition shall also contain, as exhibits thereto,

copies of all of the following:

(1) The governing documents.

(2) A complete text of the amendment.

(3) Copies of any notice and solicitation materials utilized in

the solicitation of owner approvals.

(4) A short explanation of the reason for the amendment.

(5) Any other documentation relevant to the court's determination.

(b) Upon filing the petition, the court shall set the matter for

hearing and issue an ex parte order setting forth the manner in

which notice shall be given.

petition if it finds all of the following:

(1) The petitioner has given not less than 15 days written notice

of the court hearing to all members of the association, to any

mortgagee of a mortgage or beneficiary of a deed of trust who is

entitled to notice under the terms of the declaration, and to the

city, county, or city and county in which the common interest

development is located that is entitled to notice under the terms of

the declaration.

(2) Balloting on the proposed amendment was conducted in

accordance with all applicable provisions of the governing documents.

(3) A reasonably diligent effort was made to permit all eligible

members to vote on the proposed amendment.

(4) Owners having more than 50 percent of the votes, in a single

class voting structure, voted in favor of the amendment. In a voting

structure with more than one class, where the declaration requires a

majority of more than one class to vote in favor of the amendment,

owners having more than 50 percent of the votes of each class

required by the declaration to vote in favor of the amendment voted

in favor of the amendment.

(5) The amendment is reasonable.

(6) Granting the petition is not improper for any reason stated in

subdivision (e).

(d) If the court makes the findings required by subdivision (c),

any order issued pursuant to this section may confirm the amendment

as being validly approved on the basis of the affirmative votes

actually received during the balloting period or the order may

dispense with any requirement relating to quorums or to the number or

percentage of votes needed for approval of the amendment that would

otherwise exist under the governing documents.

(e) Subdivisions (a) to (d), inclusive, notwithstanding, the court

shall not be empowered by this section to approve any amendment to

the declaration that:

(1) Would change provisions in the declaration requiring the

approval of owners having more than 50 percent of the votes in more

than one class to vote in favor of an amendment, unless owners having

more than 50 percent of the votes in each affected class approved

the amendment.

(2) Would eliminate any special rights, preferences, or privileges

designated in the declaration as belonging to the declarant, without

the consent of the declarant.

(3) Would impair the security interest of a mortgagee of a

mortgage or the beneficiary of a deed of trust without the approval

of the percentage of the mortgagees and beneficiaries specified in

the declaration, if the declaration requires the approval of a

specified percentage of the mortgagees and beneficiaries.

(f) An amendment is not effective pursuant to this section until

the court order and amendment have been recorded in every county in

which a portion of the common interest development is located. The

amendment may be acknowledged by, and the court order and amendment

may be recorded by, any person designated in the declaration or by

the association for that purpose, or if no one is designated for that

purpose, by the president of the association. Upon recordation of

the amendment and court order, the declaration, as amended in

accordance with this section , shall have the same force and effect

as if the amendment were adopted in compliance with every requirement

imposed by the governing documents.

(g) Within a reasonable time after the amendment is recorded the

association shall mail a copy of the amendment to each member of the

association, together with a statement that the amendment has been

recorded.

1357. (a) The Legislature finds that there are common interest

developments that have been created with deed restrictions which do

not provide a means for the property owners to extend the term of the

declaration. The Legislature further finds that covenants and

restrictions, contained in the declaration, are an appropriate method

for protecting the common plan of developments and to provide for a

mechanism for financial support for the upkeep of common areas

including, but not limited to, roofs, roads, heating systems, and

recreational facilities. If declarations terminate prematurely,

common interest developments may deteriorate and the housing supply

of affordable units could be impacted adversely.

The Legislature further finds and declares that it is in the

public interest to provide a vehicle for extending the term of the

declaration if owners having more than 50 percent of the votes in

the association choose to do so.

(b) A declaration which specifies a termination date, but which

contains no provision for extension of the termination date, may be

extended by the approval of owners having more than 50 percent of the

votes in the association or any greater percentage specified in the

declaration for an amendment thereto. If the approval of owners

having more than 50 percent of the votes in the association is

required to amend the declaration, the term of the declaration may be

extended in accordance with Section 1356.

subdivision (b) shall become effective upon recordation in

accordance with Section 1355.

(d) No single extension of the terms of the declaration made

pursuant to this section shall exceed the initial term of the

declaration or 20 years, whichever is less. However, more than one

extension may occur pursuant to this section .

1358. (a) In a community apartment project, any conveyance,

judicial sale, or other voluntary or involuntary transfer of the

separate interest includes the undivided interest in the community

apartment project. Any conveyance, judicial sale, or other voluntary

or involuntary transfer of the owner's entire estate also includes

the owner's membership interest in the association.

(b) In a condominium project the common areas are not subject to

partition, except as provided in Section 1359. Any conveyance,

judicial sale, or other voluntary or involuntary transfer of the

separate interest includes the undivided interest in the common

areas. Any conveyance, judicial sale, or other voluntary or

involuntary transfer of the owner's entire estate also includes the

owner's membership interest in the association.

other voluntary or involuntary transfer of the separate interest

includes the undivided interest in the common areas, if any exist.

Any conveyance, judicial sale, or other voluntary or involuntary

transfer of the owner's entire estate also includes the owner's

membership interest in the association.

(d) In a stock cooperative, any conveyance, judicial sale, or

other voluntary or involuntary transfer of the separate interest

includes the ownership interest in the corporation, however

evidenced. Any conveyance, judicial sale, or other voluntary or

involuntary transfer of the owner's entire estate also includes the

owner's membership interest in the association.

Nothing in this section prohibits the transfer of exclusive use

areas, independent of any other interest in a common interest

subdivision, if authorization to separately transfer exclusive use

areas is expressly stated in the declaration and the transfer occurs

in accordance with the terms of the declaration.

Any restrictions upon the severability of the component interests

in real property which are contained in the declaration shall not be

deemed conditions repugnant to the interest created within the

meaning of Section 711 of the Civil Code . However, these

restrictions shall not extend beyond the period in which the right to

partition a project is suspended under Section 1359.

1359. (a) Except as provided in this section , the common areas in a

condominium project shall remain undivided, and there shall be no

judicial partition thereof. Nothing in this section shall be deemed

to prohibit partition of a cotenancy in a condominium.

(b) The owner of a separate interest in a condominium project may

maintain a partition action as to the entire project as if the owners

of all of the separate interests in the project were tenants in

common in the entire project in the same proportion as their

interests in the common areas. The court shall order partition under

this subdivision only by sale of the entire condominium project and

only upon a showing of one of the following:

(1) More than three years before the filing of the action, the

condominium project was damaged or destroyed, so that a material part

was rendered unfit for its prior use, and the condominium project

has not been rebuilt or repaired substantially to its state prior to

the damage or destruction.

(2) Three-fourths or more of the project is destroyed or

substantially damaged and owners of separate interests holding in the

aggregate more than a 50-percent interest in the common areas oppose

repair or restoration of the project.

(3) The project has been in existence more than 50 years, is

obsolete and uneconomic, and owners of separate interests holding in

the aggregate more than a 50-percent interest in the common area

oppose repair or restoration of the project.

(4) The conditions for such a sale, set forth in the declaration,

have been met.

1360. (a) Subject to the provisions of the governing documents and

other applicable provisions of law, if the boundaries of the separate

interest are contained within a building, the owner of the separate

interest may do the following:

(1) Make any improvements or alterations within the boundaries of

his or her separate interest that do not impair the structural

integrity or mechanical systems or lessen the support of any portions

of the common interest development.

(2) Modify a unit in a condominium project, at the owner's

expense, to facilitate access for persons who are blind, visually

handicapped, deaf, or physically disabled, or to alter conditions

which could be hazardous to these persons. These modifications may

also include modifications of the route from the public way to the

door of the unit for the purposes of this paragraph if the unit is on

the ground floor or already accessible by an existing ramp or

elevator. The right granted by this paragraph is subject to the

following conditions:

(A) The modifications shall be consistent with applicable building code requirements.

(B) The modifications shall be consistent with the intent of

otherwise applicable provisions of the governing documents pertaining

to safety or aesthetics.

reasonable passage by other residents, and shall be removed by the

owner when the unit is no longer occupied by persons requiring those

modifications who are blind, visually handicapped, deaf, or

physically disabled.

(D) Any owner who intends to modify a unit pursuant to this

paragraph shall submit his or her plans and specifications to the

association of the condominium project for review to determine

whether the modifications will comply with the provisions of this

paragraph. The association shall not deny approval of the proposed

modifications under this paragraph without good cause.

(b) Any change in the exterior appearance of a separate interest

shall be in accordance with the governing documents and applicable

provisions of law.

1360.5. (a) No governing documents shall prohibit the owner of a

separate interest within a common interest development from keeping

at least one pet within the common interest development, subject to

reasonable rules and regulations of the association. This section may not be construed to affect any other rights provided by law to an

owner of a separate interest to keep a pet within the development.

(b) For purposes of this section , "pet" means any domesticated

bird, cat, dog, aquatic animal kept within an aquarium, or other

animal as agreed to between the association and the homeowner.

the number of pets an owner may keep, the new rule or regulation

shall not apply to prohibit an owner from continuing to keep any pet

that the owner currently keeps in his or her separate interest if the

pet otherwise conforms with the previous rules or regulations

relating to pets.

(d) For the purposes of this section , "governing documents" shall

include, but are not limited to, the conditions, covenants, and

restrictions of the common interest development, and the bylaws,

rules, and regulations of the association.

(e) This section shall become operative on January 1, 2001, and

shall only apply to governing documents entered into, amended, or

otherwise modified on or after that date.

1361. Unless the declaration otherwise provides:

(a) In a community apartment project and condominium project, and

in those planned developments with common areas owned in common by

the owners of the separate interests, there are appurtenant to each

separate interest nonexclusive rights of ingress, egress, and

support, if necessary, through the common areas. The common areas

are subject to these rights.

(b) In a stock cooperative, and in a planned development with

common areas owned by the association, there is an easement for

ingress, egress, and support, if necessary, appurtenant to each

separate interest. The common areas are subject to these easements.

1361.5. Except as otherwise provided in law, an order of the court,

or an order pursuant to a final and binding arbitration decision, an

association may not deny an owner or occupant physical access to his

or her separate interest, either by restricting access through the

common areas to the owner's separate interest, or by restricting

access solely to the owner's separate interest.

1362. Unless the declaration otherwise provides, in a condominium

project, or in a planned development in which the common areas are

owned by the owners of the separate interests, the common areas are

owned as tenants in common, in equal shares, one for each unit or

lot.

1363. (a) A common interest development shall be managed by an

association which may be incorporated or unincorporated. The

association may be referred to as a community association.

(b) An association, whether incorporated or unincorporated, shall

prepare a budget pursuant to Section 1365 and disclose information,

if requested, in accordance with Section 1368.

regardless of whether the association is incorporated or

unincorporated, the association may exercise the powers granted to a

nonprofit mutual benefit corporation, as enumerated in Section 7140

of the Corporations Code , except that an unincorporated association

may not adopt or use a corporate seal or issue membership

certificates in accordance with Section 7313 of the Corporations Code .

The association, whether incorporated or unincorporated, may

exercise the powers granted to an association by Section 383 of the Code of Civil Procedure and the powers granted to the association in

this title.

(d) Meetings of the membership of the association shall be

conducted in accordance with a recognized system of parliamentary

procedure or any parliamentary procedures the association may adopt.

(e) Notwithstanding any other provision of law, notice of meetings

of the members shall specify those matters the board intends to

present for action by the members, but, except as otherwise provided

by law, any proper matter may be presented at the meeting for action.

(f) Members of the association shall have access to association

records in accordance with Article 3 (commencing with Section 8330)

of Chapter 13 of Part 3 of Division 2 of Title 1 of the Corporations Code .

(g) If an association adopts or has adopted a policy imposing any

monetary penalty, including any fee, on any association member for a

violation of the governing documents or rules of the association,

including any monetary penalty relating to the activities of a guest

or invitee of a member, the board of directors shall adopt and

distribute to each member, by personal delivery or first-class mail,

a schedule of the monetary penalties that may be assessed for those

violations, which shall be in accordance with authorization for

member discipline contained in the governing documents. The board of

directors shall not be required to distribute any additional

schedules of monetary penalties unless there are changes from the

schedule that was adopted and distributed to the members pursuant to

this subdivision.

(h) When the board of directors is to meet to consider or impose

discipline upon a member, the board shall notify the member in

writing, by either personal delivery or first-class mail, at least 10

days prior to the meeting. The notification shall contain, at a

minimum, the date, time, and place of the meeting, the nature of the

alleged violation for which a member may be disciplined, and a

statement that the member has a right to attend and may address the

board at the meeting. The board of directors of the association

shall meet in executive session if requested by the member being

disciplined.

If the board imposes discipline on a member, the board shall

provide the member a written notification of the disciplinary action,

by either personal delivery or first-class mail, within 15 days

following the action. A disciplinary action shall not be effective

against a member unless the board fulfills the requirements of this

subdivision.

(i) Whenever two or more associations have consolidated any of

their functions under a joint neighborhood association or similar

organization, members of each participating association shall be

entitled to attend all meetings of the joint association other than

executive sessions, (1) shall be given reasonable opportunity for

participation in those meetings and (2) shall be entitled to the same

access to the joint association's records as they are to the

participating association's records.

(j) Nothing in this section shall be construed to create, expand,

or reduce the authority of the board of directors of an association

to impose monetary penalties on an association member for a violation

of the governing documents or rules of the association.

1363.05. (a) This section shall be known and may be cited as the

Common Interest Development Open Meeting Act.

(b) Any member of the association may attend meetings of the board

of directors of the association, except when the board adjourns to

executive session to consider litigation, matters relating to the

formation of contracts with third parties, member discipline,

personnel matters, or to meet with a member, upon the member's

request, regarding the member's payment of assessments, as specified

in Section 1367 or 1367.1. The board of directors of the association

shall meet in executive session, if requested by a member who may be

subject to a fine, penalty, or other form of discipline, and the

member shall be entitled to attend the executive session.

noted in the minutes of the immediately following meeting that is

open to the entire membership.

(d) The minutes, minutes proposed for adoption that are marked to

indicate draft status, or a summary of the minutes, of any meeting of

the board of directors of an association, other than an executive

session, shall be available to members within 30 days of the meeting.

The minutes, proposed minutes, or summary minutes shall be

distributed to any member of the association upon request and upon

reimbursement of the association's costs for making that

distribution.

(e) Members of the association shall be notified in writing at the

time that the pro forma budget required in Section 1365 is

distributed, or at the time of any general mailing to the entire

membership of the association, of their right to have copies of the

minutes of meetings of the board of directors, and how and where

those minutes may be obtained.

(f) As used in this section , "meeting" includes any congregation

of a majority of the members of the board at the same time and place

to hear, discuss, or deliberate upon any item of business scheduled

to be heard by the board, except those matters that may be discussed

in executive session.

(g) Unless the time and place of meeting is fixed by the bylaws,

or unless the bylaws provide for a longer period of notice, members

shall be given notice of the time and place of a meeting as defined

in subdivision (f), except for an emergency meeting, at least four

days prior to the meeting. Notice shall be given by posting the

notice in a prominent place or places within the common area and by

mail to any owner who had requested notification of board meetings by

mail, at the address requested by the owner. Notice may also be

given, by mail or delivery of the notice to each unit in the

development or by newsletter or similar means of communication.

(h) An emergency meeting of the board may be called by the

president of the association, or by any two members of the governing

body other than the president, if there are circumstances that could

not have been reasonably foreseen which require immediate attention

and possible action by the board, and which of necessity make it

impracticable to provide notice as required by this section .

(i) The board of directors of the association shall permit any

member of the association to speak at any meeting of the association

or the board of directors, except for meetings of the board held in

executive session. A reasonable time limit for all members of the

association to speak to the board of directors or before a meeting of

the association shall be established by the board of directors.

1363.1. (a) A prospective managing agent of a common interest

development shall provide a written statement to the board of

directors of the association of a common interest development as soon

as practicable, but in no event more than 90 days, before entering

into a management agreement which shall contain all of the following

information concerning the managing agent:

(1) The names and business addresses of the owners or general

partners of the managing agent. If the managing agent is a

corporation, the written statement shall include the names and

business addresses of the directors and officers and shareholders

holding greater than 10 percent of the shares of the corporation.

(2) Whether or not any relevant licenses such as architectural

design, construction, engineering, real estate, or accounting have

been issued by this state and are currently held by the persons

specified in paragraph (1). If a license is currently held by any of

those persons, the statement shall contain the following

information:

(A) What license is held.

(B) The dates the license is valid.

(3) Whether or not any relevant professional certifications or

designations such as architectural design, construction, engineering,

real property management, or accounting are currently held by any of

the persons specified in paragraph (1), including, but not limited

to, a professional common interest development manager. If any

certification or designation is held, the statement shall include the

following information:

(A) What the certification or designation is and what entity

issued it.

(B) The dates the certification or designation is valid.

(b) As used in this section , a "managing agent" is a person or

entity who, for compensation or in expectation of compensation,

exercises control over the assets of a common interest development.

A "managing agent" does not include either of the following:

(1) A full-time employee of the association.

(2) Any regulated financial institution operating within the

normal course of its regulated business practice.

1363.2. (a) A managing agent of a common interest development who

accepts or receives funds belonging to the association shall deposit

all such funds that are not placed into an escrow account with a

bank, savings association, or credit union or into an account under

the control of the association, into a trust fund account maintained

by the managing agent in a bank, savings association, or credit union

in this state. All funds deposited by the managing agent in the

trust fund account shall be kept in this state in a financial

institution, as defined in Section 31041 of the Financial Code , which

is insured by the federal government, and shall be maintained there

until disbursed in accordance with written instructions from the

association entitled to the funds.

(b) At the written request of the board of directors of the

association, the funds the managing agent accepts or receives on

behalf of the association shall be deposited into an interest-bearing

account in a bank, savings association, or credit union in this

state, provided all of the following requirements are met:

(1) The account is in the name of the managing agent as trustee

for the association or in the name of the association.

(2) All of the funds in the account are covered by insurance

provided by an agency of the federal government.

(3) The funds in the account are kept separate, distinct, and

apart from the funds belonging to the managing agent or to any other

person or entity for whom the managing agent holds funds in trust

except that the funds of various associations may be commingled as

permitted pursuant to subdivision (d).

(4) The managing agent discloses to the board of directors of the

association the nature of the account, how interest will be

calculated and paid, whether service charges will be paid to the

depository and by whom, and any notice requirements or penalties for

withdrawal of funds from the account.

(5) No interest earned on funds in the account shall inure

directly or indirectly to the benefit of the managing agent or his or

her employees.

receipt and disposition of all funds described in this section ,

including any interest earned on the funds.

(d) The managing agent shall not commingle the funds of the

association with his or her own money or with the money of others

that he or she receives or accepts, unless all of the following

requirements are met:

(1) The managing agent commingled the funds of various

associations on or before February 26, 1990, and has obtained a

written agreement with the board of directors of each association

that he or she will maintain a fidelity and surety bond in an amount

that provides adequate protection to the associations as agreed upon

by the managing agent and the board of directors of each association.

(2) The managing agent discloses in the written agreement whether

he or she is deriving benefits from the commingled account or the

bank, credit union, or savings institution where the moneys will be

on deposit.

(3) The written agreement provided pursuant to this subdivision

includes, but is not limited to, the name and address of the bonding

companies, the amount of the bonds, and the expiration dates of the

bonds.

(4) If there are any changes in the bond coverage or the companies

providing the coverage, the managing agent discloses that fact to

the board of directors of each affected association as soon as

practical, but in no event more than 10 days after the change.

(5) The bonds assure the protection of the association and provide

the association at least 10 days' notice prior to cancellation.

(6) Completed payments on the behalf of the association are

deposited within 24 hours or the next business day and do not remain

commingled for more than 10 calendar days.

(e) The prevailing party in an action to enforce this section shall be entitled to recover reasonable legal fees and court costs.

(f) As used in this section , a "managing agent" is a person or

entity, who for compensation or, in expectation of compensation,

exercises control over the assets of the association. However, a

"managing agent" does not include a full-time employee of the

association or a regulated financial institution operating within the

normal course of business, or an attorney at law acting within the

scope of his or her license.

(g) As used in this section , "completed payment" means funds

received which clearly identify the account to which the funds are to

be credited.

1363.5. (a) The articles of incorporation of any common interest

development association filed with the Secretary of State on or after

January 1, 1995, shall include a statement that shall be in addition

to the statement of purposes of the corporation, and that (1)

identifies the corporation as an association formed to manage a

common interest development under the Davis-Stirling Common Interest

Development Act, (2) states the business or corporate office of the

association, if any, and, if the office is not on the site of the

common interest development, states the nine-digit ZIP Code , front

street, and nearest cross street for the physical location of the

common interest development, and (3) states the name and address of

the association's managing agent, as defined in Section 1363.1, if

any, and whether the association's managing agent is certified

pursuant to Section 11502 of the Business and Professions Code .

(b) The statement of principal business activity contained in the

annual statement filed by an incorporated association with the

Secretary of State pursuant to Section 1502 of the Corporations Code shall also contain the statement specified in subdivision (a).

1363.6. (a) To assist with the identification of common interest

developments, each association, whether incorporated or

unincorporated, shall submit to the Secretary of State, on a form and

for a fee not to exceed thirty dollars ($30) that the Secretary of

State shall prescribe, the following information concerning the

association and the development that it manages:

(1) A statement that the association is formed to manage a common

interest development under the Davis-Stirling Common Interest

Development Act.

(2) The name of the association.

(3) The street address of the association's onsite office, or, if

none, of the responsible officer or managing agent of the

association.

(4) The address and either the daytime telephone number or e-mail

address of the president of the association, other than the address,

telephone number, or e-mail address of the association's onsite

office or managing agent of the association.

(5) The name, street address, and daytime telephone number of the

association's managing agent, if any.

(6) The county, and if in an incorporated area, the city in which

the development is physically located. If the boundaries of the

development are physically located in more than one county, each of

the counties in which it is located.

(7) If the development is in an unincorporated area, the city

closest in proximity to the development.

(8) The nine-digit ZIP Code , front street, and nearest cross

street of the physical location of the development.

(9) The type of common interest development, as defined in

subdivision (c) of Section 1351, managed by the association.

(10) The number of separate interests, as defined in subdivision

(l) of Section 1351, in the development.

(b) The association shall submit the information required by this section as follows:

(1) By incorporated associations, within 90 days after the filing

of its original articles of incorporation, and thereafter at the time

the association files its biennial statement of principle business

activity with the Secretary of State pursuant to Section 8210 of the Corporations Code .

(2) By unincorporated associations, in July of 2003, and in that

same month biennially thereafter. Upon changing its status to that

of a corporation, the association shall comply with the filing

deadlines in paragraph (1).

change in the street address of the association's onsite office or of

the responsible officer or managing agent of the association in the

form and for a fee prescribed by the Secretary of State, within 60

days of the change.

(d) On and after January 1, 2006, the penalty for an incorporated

association's noncompliance with the initial or biennial filing

requirements of this section shall be suspension of the association's

rights, privileges, and powers as a corporation and monetary

penalties, to the same extent and in the same manner as suspension

and monetary penalties imposed pursuant to Section 8810 of the Corporations Code .

(e) The Secretary of State shall make the information submitted

pursuant to paragraph (4) of subdivision (a) available only for

governmental purposes and only to members of the Legislature and the

Business, Transportation and Housing Agency, upon written request.

All other information submitted pursuant to this section shall be

subject to public inspection pursuant to the California Public

Records Act, Chapter 3.5 (commencing with Section 6250) of Division 7

of Title 1 of the Government Code . The information submitted

pursuant to this section shall be made available for governmental or

public inspection, as the case may be, on or before July 1, 2004, and

thereafter.

1364. (a) Unless otherwise provided in the declaration of a common

interest development, the association is responsible for repairing,

replacing, or maintaining the common areas, other than exclusive use

common areas, and the owner of each separate interest is responsible

for maintaining that separate interest and any exclusive use common

area appurtenant to the separate interest.

(b) (1) In a community apartment project, condominium project, or

stock cooperative, as defined in Section 1351, unless otherwise

provided in the declaration, the association is responsible for the

repair and maintenance of the common area occasioned by the presence

of wood-destroying pests or organisms.

(2) In a planned development as defined in Section 1351, unless a

different maintenance scheme is provided in the declaration, each

owner of a separate interest is responsible for the repair and

maintenance of that separate interest as may be occasioned by the

presence of wood-destroying pests or organisms. Upon approval of the

majority of all members of the association, the responsibility for

such repair and maintenance may be delegated to the association,

which shall be entitled to recover the cost thereof as a special

assessment.

maintenance of the areas within the responsibility of the association

shall be borne by the owner of the separate interest affected.

(d) (1) The association may cause the temporary, summary removal

of any occupant of a common interest development for such periods and

at such times as may be necessary for prompt, effective treatment of

wood-destroying pests or organisms.

(2) The association shall give notice of the need to temporarily

vacate a separate interest to the occupants and to the owners, not

less than 15 days nor more than 30 days prior to the date of the

temporary relocation. The notice shall state the reason for the

temporary relocation, the date and time of the beginning of

treatment, the anticipated date and time of termination of treatment,

and that the occupants will be responsible for their own

accommodations during the temporary relocation.

(3) Notice by the association shall be deemed complete upon

either:

(A) Personal delivery of a copy of the notice to the occupants,

and sending a copy of the notice to the owners, if different than

the occupants, by first-class mail, postage prepaid at the most

current address shown on the books of the association.

(B) By sending a copy of the notice to the occupants at the

separate interest address and a copy of the notice to the owners, if

different than the occupants, by first-class mail, postage prepaid,

at the most current address shown on the books of the association.

(e) For purposes of this section , "occupant" means an owner,

resident, guest, invitee, tenant, lessee, sublessee, or other person

in possession on the separate interest.

(f) Notwithstanding the provisions of the declaration, the owner

of a separate interest is entitled to reasonable access to the common

areas for the purpose of maintaining the internal and external

telephone wiring made part of the exclusive use common areas of a

separate interest pursuant to paragraph (2) of subdivision (i) of Section 1351. The access shall be subject to the consent of the

association, whose approval shall not be unreasonably withheld, and

which may include the association's approval of telephone wiring upon

the exterior of the common areas, and other conditions as the

association determines reasonable.

1365. Unless the governing documents impose more stringent

standards, the association shall prepare and distribute to all of its

members the following documents:

(a) A pro forma operating budget, which shall include all of the

following:

(1) The estimated revenue and expenses on an accrual basis.

(2) A summary of the association's reserves based upon the most

recent review or study conducted pursuant to Section 1365.5, which

shall be printed in boldface type and include all of the following:

(A) The current estimated replacement cost, estimated remaining

life, and estimated useful life of each major component.

(B) As of the end of the fiscal year for which the study is

prepared:

(i) The current estimate of the amount of cash reserves necessary

to repair, replace, restore, or maintain the major components.

(ii) The current amount of accumulated cash reserves actually set

aside to repair, replace, restore, or maintain major components.

(iii) If applicable, the amount of funds received from either a

compensatory damage award or settlement to an association from any

person or entity for injuries to property, real or personal, arising

out of any construction or design defects, and the expenditure or

disposition of funds, including the amounts expended for the direct

and indirect costs of repair of construction or design defects.

These amounts shall be reported at the end of the fiscal year for

which the study is prepared as separate line items under cash

reserves pursuant to clause (ii). In lieu of complying with the

requirements set forth in this clause, an association that is

obligated to issue a review of their financial statement pursuant to

subdivision (b) may include in the review a statement containing all

of the information required by this clause.

clause (ii) subparagraph (B) equals the amount determined for

purposes of clause (i) of subparagraph (B).

(3) A statement as to whether the board of directors of the

association has determined or anticipates that the levy of one or

more special assessments will be required to repair, replace, or

restore any major component or to provide adequate reserves therefor.

(4) A general statement addressing the procedures used for the

calculation and establishment of those reserves to defray the future

repair, replacement, or additions to those major components that the

association is obligated to maintain.

The summary of the association's reserves disclosed pursuant to

paragraph (2) shall not be admissible in evidence to show improper

financial management of an association, provided that other relevant

and competent evidence of the financial condition of the association

is not made inadmissible by this provision.

A copy of the operating budget shall be annually distributed not

less than 45 days nor more than 60 days prior to the beginning of the

association's fiscal year.

(b) A review of the financial statement of the association shall

be prepared in accordance with generally accepted accounting

principles by a licensee of the California Board of Accountancy for

any fiscal year in which the gross income to the association exceeds

seventy-five thousand dollars ($75,000). A copy of the review of the

financial statement shall be distributed within 120 days after the

close of each fiscal year.

required by subdivision (a), the board of directors may elect to

distribute a summary of the pro forma operating budget to all of its

members with a written notice that the pro forma operating budget is

available at the business office of the association or at another

suitable location within the boundaries of the development, and that

copies will be provided upon request and at the expense of the

association. If any member requests that a copy of the pro forma

operating budget required by subdivision (a) be mailed to the member,

the association shall provide the copy to the member by first-class

United States mail at the expense of the association and delivered

within five days. The written notice that is distributed to each of

the association members shall be in at least 10-point boldface type

on the front page of the summary of the budget.

(d) A statement describing the association's policies and

practices in enforcing lien rights or other legal remedies for

default in payment of its assessments against its members shall be

annually delivered to the members during the 60-day period

immediately preceding the beginning of the association's fiscal year.

(e) (1) A summary of the association's property, general

liability, and earthquake and flood and fidelity insurance policies,

which shall be distributed within 60 days preceding the beginning of

the association's fiscal year, that includes all of the following

information about each policy:

(A) The name of the insurer.

(B) The type of insurance.

(D) The amount of deductibles, if any.

(2) The association shall, as soon as reasonably practicable,

notify its members by first-class mail if any of the policies

described in paragraph (1) have lapsed, been canceled, and are not

immediately renewed, restored, or replaced, or if there is a

significant change, such as a reduction in coverage or limits or an

increase in the deductible, as to any of those policies. If the

association receives any notice of nonrenewal of a policy described

in paragraph (1), the association shall immediately notify its

members if replacement coverage will not be in effect by the date the

existing coverage will lapse.

(3) To the extent that any of the information required to be

disclosed pursuant to paragraph (1) is specified in the insurance

policy declaration page, the association may meet its obligation to

disclose that information by making copies of that page and

distributing it to all of its members.

(4) The summary distributed pursuant to paragraph (1) shall

contain, in at least 10-point boldface type, the following statement:

"This summary of the association's policies of insurance provides

only certain information, as required by subdivision (e) of Section 1365 of the Civil Code , and should not be considered a substitute for

the complete policy terms and conditions contained in the actual

policies of insurance. Any association member may, upon request and

provision of reasonable notice, review the association's insurance

policies and, upon request and payment of reasonable duplication

charges, obtain copies of those policies. Although the association

maintains the policies of insurance specified in this summary, the

association's policies of insurance may not cover your property,

including personal property or, real property improvements to or

around your dwelling, or personal injuries or other losses that occur

within or around your dwelling. Even if a loss is covered, you may

nevertheless be responsible for paying all or a portion of any

deductible that applies. Association members should consult with

their individual insurance broker or agent for appropriate additional

coverage."

1365.1. (a) The association shall distribute the written notice

described in subdivision (b) to each member of the association during

the 60-day period immediately preceding the beginning of the

association's fiscal year. The notice shall be printed in at least

12-point type. An association distributing the notice to an owner of

an interest that is described in Section 11003.5 of the Business and

Professions Code may delete from the notice described in subdivision

(b) the portion regarding meetings and payment plans.

(b) The notice required by this section shall read as follows:

"NOTICE

ASSESSMENTS AND FORECLOSURE

This notice outlines some of the rights and responsibilities of

owners of property in common interest developments and the

associations that manage them. Please refer to the sections of the Civil Code indicated for further information. A portion of the

information in this notice applies only to liens recorded on or after

January 1, 2003. You may wish to consult a lawyer if you dispute an

assessment.

ASSESSMENTS AND NONJUDICIAL FORECLOSURE

The failure to pay association assessments may result in the loss

of an owner's property without court action, often referred to as

nonjudicial foreclosure. When using nonjudicial foreclosure, the

association records a lien on the owner's property. The owner's

property may be sold to satisfy the lien if the lien is not paid.

Assessments become delinquent 15 days after they are due, unless the

governing documents of the association provide for a longer time.

(Sections 1366 and 1367.1 of the Civil Code )

In a nonjudicial foreclosure, the association may recover

assessments, reasonable costs of collection, reasonable attorney's

fees, late charges, and interest. The association may not use

nonjudicial foreclosure to collect fines or penalties, except for

costs to repair common areas damaged by a member or a member's

guests, if the governing documents provide for this. (Sections 1366

and 1367.1 of the Civil Code )

The association must comply with the requirements of Section 1367.1 of the Civil Code when collecting delinquent assessments. If

the association fails to follow these requirements, it may not record

a lien on the owner's property until it has satisfied those

requirements. Any additional costs that result from satisfying the

requirements are the responsibility of the association. ( Section 1367.1 of the Civil Code )

At least 30 days prior to recording a lien on an owner's separate

interest, the association must provide the owner of record with

certain documents by certified mail. Among these documents, the

association must send a description of its collection and lien

enforcement procedures and the method of calculating the amount. It

must also provide an itemized statement of the charges owed by the

owner. An owner has a right to review the association's records to

verify the debt. ( Section 1367.1 of the Civil Code )

If a lien is recorded against an owner's property in error, the

person who recorded the lien is required to record a lien release

within 21 days, and to provide an owner certain documents in this

regard. ( Section 1367.1 of the Civil Code )

The collection practices of the association may be governed by

state and federal laws regarding fair debt collection. Penalties can

be imposed for debt collection practices that violate these laws.

PAYMENTS

When an owner makes a payment, he or she may request a receipt,

and the association is required to provide it. On the receipt, the

association must indicate the date of payment and the person who

received it. The association must inform owners of a mailing address

for overnight payments. (Sections 1367.1 and 1367.1 of the Civil Code )

An owner may dispute an assessment debt by giving the board of the

association a written explanation, and the board must respond within

15 days if certain conditions are met. An owner may pay assessments

that are in dispute in full under protest, and then request

alternative dispute resolution. (Sections 1366.3 and 1367.1 of the Civil Code )

An owner is not liable for charges, interest, and costs of

collection, if it is established that the assessment was paid

properly on time. ( Section 1367.1 of the Civil Code )

MEETINGS AND PAYMENT PLANS

An owner of a separate interest that is not a time-share may

request the association to consider a payment plan to satisfy a

delinquent assessment. The association must inform owners of the

standards for payment plans, if any exist. ( Section 1367.1 of the Civil Code )

The board of the directors must meet with an owner who makes a

proper written request for a meeting to discuss a payment plan when

the owner has received a notice of a delinquent assessment. These

payment plans must conform with the payment plan standards of the

association, if they exist. ( Section 1367.1 of the Civil Code )"

1365.5.