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AB 1412 Clean-up Bill

» Posted October 10, 2017News

AB 1412 made two unrelated changes. Both of them make a lot of sense. 

Mailing Address Requests 

Last year Civil Code section 4041 was added to the Davis Stirling Act and requires that homeowners associations must request that each owner provide updated information as to where notices should be sent to that owner. Specifically, at least thirty (30) days before the association sends out its annual disclosures (policy statement and budget report), the association must request that each owner provide the following information: 

The address or addresses to which notices from the association are to be delivered.

  • An alternate or secondary address to which notices from the association are to be delivered.
  • The name and address of his or her legal representative, if any, including any person with power of attorney or other person who can be contacted in the event of the owner’s extended absence from the separate interest.
  • Whether the separate interest is owner-occupied, is rented out, if the parcel is developed but vacant, or if the parcel is undeveloped land.

The law adopted last year provided that if an owner fails to provide the information requested, the property address is deemed to be the address to which notices are to be delivered. This did not make a lot of sense. If an owner requested that notices be sent to an off-site address, but then forgot to send in the annual request to keep sending it to the off-site address, the management company would be required to update its records and send the notice to an on-site address, knowing that it is unlikely the owner would want the notices to be sent there.

This has been rectified. If an owner does not respond to the request for address information, the association can use the last address provided by the owner. If no address was ever provided, then the association can use the property address for mailings.

 Immunity for Directors in Mixed-Use

Officers and directors in associations are provided some immunity against personal liability for their actions taken on behalf of a common interest development. There are, however, some very notable exceptions. One exception is that the immunity does not apply to an owner that owns three or more separate interests. And, up until now, it only applied to officers and directors in associations that are composed solely of residential properties.

The immunity still does not apply for officers and directors in commercial developments. But, it will now apply to officers and directors in mixed-use associations (associations having commercial and residential properties) if the officer or director does not own any of the commercial properties, but does own or reside in the residential property.