Community Association Legislative Update New Laws for 2018

Community Association Legislative Update New Laws for 2018

2017 was one of the most active legislative years for Community Associations in recent memory. Perhaps it was the Governor’s “official” end of the drought that left State lawmakers with time to micromanage our communities on issues from free speech to solar; from new disclosure obligations to recording fees. Now that the dust has settled, we are left with the following legislation for our communities to adjust to in the coming year. SB 2 (Sen. Toni Atkins) Building Homes and Jobs Act (Imposes a $75.00 fee on recorded real estate transition documents (excluded commercial and residential sales) to provide funds for affordable housing.) Under the guise of funding affordable housing throughout the State, beginning January 1, 2018, SB 2 imposes a $75 fee on every real estate instrument, paper or notice required or permitted by law “per each transaction, not to exceed $225 per transaction.” The fee does not apply to documents recorded in connection with a real estate sales transfer. The fee does attach to grant deeds, deeds of trust, abstracts of judgement, notices of default and liens and releases of liens. In other words, this law will impact community association assessment collection by adding to the fees an association is charged for recorded documents, fees which ultimately will be passed on to the delinquent owner. The author of SB 2 describes the bill as establishing a vital ongoing funding source for affordable housing. The law requires the funds collected be deposited into the Building Homes and Jobs Trust Fund to be allocated to affordable housing programs and to local governments for affordable housing and homeless related programs...