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ASSEMBLY BILL 279 (FRAZEE – 1987)

CHAPTER 596, STATUTES OF 1987, AB 279

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Civil Code sections 1366 and 1368 were amended in 1987 following legislative passage of Assembly Bill 279, which affected these two sections only.  (See Exhibit #1g)  Assembly Bill 279 was introduced by Assembly member Robert C. Frazee on January 15, 1987 and was reportedly sponsored by Community Associations Institute.  (See Exhibits #1a and #4, document AP-2) 

Assembly Bill 279 was heard by the Assembly Committee on Housing and Community Development.  (See Exhibits #2 and #3) On the Senate side, the measure was heard before the Senate Committee on Housing and Urban Affairs.  (See Exhibit #2 and #5)  Assembly Bill 279 was amended five times during legislative consideration.  (See Exhibits #1b through #1f and #2)  Subsequent to legislative approval, Assembly Bill 279 was approved by Governor George Deukmejian and was recorded by the Secretary of State as Chapter 596 of the Statutes of 1987. (See Exhibit #1g)

The Third Reading analysis prepared by the Office of Senate Floor Analyses described as follows Assembly Bill 279 as it was last amended on August 25, 1987:
 

DIGEST:  This bill limits the regular assessment increases that may be imposed by the board of directors of a homeowner’s association for a common interest development to 20 percent and provides that the assessment limits may not be exceeded without the approval of owners constituting a quorum, as specified.

Senate Floor Amendments of 8/25/87 prohibit homeowner associations from imposing or collecting any assessment, penalty or fee in connection with a transfer of title, except for the actual costs they incur to change their records.
(See Exhibit #9b, page 1)