AB 968 would shift costs to individuals in homeowner associations

Question: We have a townhouse that is part of a homeowner association. We're on a very limited fixed income and can barely afford paying our monthly dues. We've just heard that the law is changing to make owners pay for their own maintenance for exclusive use areas. What is that legislation and how will it affect us? Is there something homeowners can do?

Answer: Town home, condominium, detached or attached homes it matters not. Making its way through California's Legislature is Assembly Bill 968, which could open the flood gates for expanding the responsibilities and monetary obligations of owners for their own units as well as any "exclusive use common area."

The bill seeks to rewrite Civil Code section 4775, which directs who pays to maintain, repair and replace in various areas at residential developments governed by homeowner associations.

First, some definitions. Under the current law, unless a development's governing documents specify otherwise:

"Common area" is the part of the property that the homeowner association administers a roof, pool or other area that serves the entire development. The association maintains, repairs and replaces in the common area.

"Separate interest" is the area, such as the inside of an individual town home or condo, that the owner is responsible for maintaining.

"Exclusive use common area" is something that goes with or is attached to a unit the law uses the term "appurtenant" such as a patio, which serves one or more owners but fewer than all the owners. The owner is responsible for maintaining that area.

Backers of AB 968, which include a group that represents homeowner associations, contend that the existing law is poorly worded when spelling out who should pay for repairs and replacements in exclusive use common areas. This could lead to safety problems or lawsuits, the supporters say.

In its current form, AB 968 spells out that an individual owner must maintain his or her unit (the "separate interest") and adds responsibility for repairing and replacing in the unit.

AB 968 goes on to say that each individual owner is responsible for maintaining the exclusive use common area, as before, and that the association is responsible for repairing and replacing in the exclusive use common area.

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AB 968 would shift costs to individuals in homeowner associations