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CALIFORNIA CIVIL CODE 2007
SECTION 1365.1.
Distribution of written notice by association prior
to beginning of fiscal year; Contents
Text
(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)"
Added Stats 2002 ch 1111 § 4 (AB 2289).
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