C.A.R. Legislative Update

The Senate and Assembly wrapped up the first year of the 2021-22 legislative session on Friday, Sept. 10. They will be in recess until Jan. 3, 2022, when the second year of this two-year session will begin.

C.A.R. successfully passed a number of sponsored bills out of the Legislature which are now on the Governor’s desk awaiting his signature. One bill, AB 633 (Calderon) has already been signed by the Governor.

Sponsored Bills

AB 491 (Ward & Gonzalez) Eliminates Discrimination in Mixed-Income Multifamily Housing

Current law allows for the construction of a mixed-income multifamily structure in which the occupants of the affordable units do not have the same access to the common entrances, common areas, and common amenities as the occupants of the market-rate units. C.A.R. is sponsoring AB 491 to prohibit this discriminatory housing practice.

This bill is on the Governor’s Desk.

AB 571 (Mayes) Density Bonus: Fee Reduction to Construct Below Market Rate Unit

Fees and costs associated with the construction of affordable units are often passed along to buyers in the form of higher home prices or can increase the amount of subsidy needed to build affordable housing units. C.A.R. is sponsoring AB 571 to prohibit local governments from assessing affordable housing fees on the deed restricted affordable units contained within a density bonus application. This fee only serves to increase costs to construct deed restricted affordable housing, making it less likely that developers maximize the affordable unit set aside within their density bonus application.

This bill is on the Governor’s Desk.

AB 633 (Calderon) Implementation: Uniform Partition of Heirs Property Act

C.A.R sponsored this legislation which adds California to the list of states that utilize the Uniform Partition of Heirs Property Act (UPHPA) which addresses situations in which a property owner does not leave a will or trust and there are multiple heirs. Real estate speculators have gotten creative in such situations. By acquiring a small share in the decedent’s property, speculators can file a legal action and force a property’s sale. Investors can then purchase the parcel below its fair market value - depleting a family’s inherited wealth in the process. This measure seeks to preserve family wealth by providing a series of simple due process protections to ensure all parties receive their fair share of the inherited proceeds and ensure the best value for the inherited property is obtained. This includes a preference for market sales rather than court sales of real property. The measure enjoyed bipartisan support and did not receive any “No” votes in the legislature.

Signed into law July 23, 2021 (Chapter 119, Statutes of 2021)

AB 44 (Petrie-Norris) Business Dealings: Use of Prior Surname

Currently, a real estate licensee cannot transact business using a former legal name (including a “maiden” name). C.A.R. is sponsoring legislation to ensure that a real estate licensee who is a natural person may use their former surname to conduct business so long as both names are filed with the Department of Real Estate. This measure will ensure that REALTORS® can continue to benefit from their name brand, recognition, and community status despite a legal name change.

Due to the non-controversial nature of this bill, it has been amended into AB 830 (Flora), an “omnibus” bill which contains non-controversial bills from various areas.

This bill is on the Governor’s Desk.

SB 263 (S. Rubio) Implicit Bias Training for Real Estate Licensees

C.A.R. is sponsoring legislation to require all real estate licensees to have implicit bias, as part of their DRE license renewal requirements, and to make the current mandated fair housing training more robust and relevant. Recent amendments push the enactment date of the bill to 2023.

This bill is on the Governor’s Desk.

SB 392 (Archuleta) Mandating HOA’s Email Communications

Under existing law, an HOA must deliver documents to its members through mail, fax, or electronic delivery and may choose to deliver documents to homeowners via email. While property owners must already annually provide an HOA with their updated contact information, state law does not require HOA’s to transmit information to homeowners via email. As recently amended, SB 392 will: 1) require HOA’s to communicate with homeowners via email, if that is the homeowner’s preferred method for communication, 2) make it clear that property owners, not the HOA, get to define their 2 preferred communication methods, and 3) permit general notices to be placed on an association’s website.

This bill is on the Governor’s Desk.