Exciting times in Sacramento this week when the NRBA has voted down the relocation of the Sacramento Kings to Seattle.  With a new ownership group and the release of new sketches of the proposed new arena at the Downtown Plaza site, the prospects for Sacramento are great.  It’s still too early to celebrate but go back over the last 5 years and ambitious plans by developers such as John Saca with Saca Development who had proposed The Towers on Capital Mall, two 53 story residential towers and Craig Nassi with BCN Development who has proposed Aura both projects had pre sales in large numbers.  Fast forward 8 years or so and the time would be ideal for these projects if the arena is built.  So who comes in next and what are the chances some of these projects come back into reality?  First let’s look at a new sketch of the proposed arena:

David Taylor stands to benefit the most in our opinion as he still owns the parcel  next to his completed U.S. Bank Tower the previous site of the planned Aura condominium site that was planned by Craig Nassi and his company BCN Development.  In an email earlier today, Mr Nassi wished Sacramento best wishes but his company is enjoying success in New York City and doesn’t appear to have plans to re enter the Sacramento market.

At the time in 2005 BCN Development had enlisted famed Architect Daniel Libeskind to design the 38 story tower 262 unit project and had approvals for height, density, parking and other environmental impacts.  The project at the time was estimated to cost around $128 million,  The average unit at the time was estimated to cost $488,000 per unit to build and were being marketed in the high $300,000′s to above $1 Million dollars for the penthouse units.  For those of you who were fortunate to attend the sales events, you knew how excited Buyers were for this project and at the time BCN Development had options on two other parcels in the area for other projects including Epic and a future planned project.

One of the most ambitious plans in Sacramento was from visionary developer John Saca and his company Saca Development who tried in 2004 to build The Towers at Capital Mall which would have been two 53-story 615 foot mixed-use towers to be built at 301 Capital Mall, just a few blocks from the California State Capitol.  Plans were for approximately 804 condominiums, a 200 room InterContinental Hotel and ground floor retail.  At the time California Family Fitness had signed an agreement to open a $15 million luxury gym inside the project.  It would have been a 42,000 square foot club on the 10th and 11th floors of the high rise.

At the time the project was proposed, it would have been the tallest building not only in Sacramento but one of the tallest residential buildings on the West Coast.

Costs were projected to be in the $600 Million range and but the real estate market collapsed and the property now belongs to CalPERS and the CIM Group.  It’s the large parcel with the gate around it.

John Saca and his company Saca Development also proposed another project at 10th & J across from Ceasar Chavez park and cross corner from The Citizen hotel called The Metropolitan.  This would at the time have been a 40 story 420 foot tall tower consisting of approximately 350 residential units and 13,000 square feet of ground floor retail.  The project still shows up on the Saca Development website but emails to the developer at the time of this post were not returned.  Sacramento needs the vision that John Saca was bringing to the Downtown Sacramento market and we hope he gets the opportunity to show Sacramento that his vision could be reality, we’ve included a few of the drawings for The Metropolitan below.

A successful new arena at the Downtown Plaza site will impact existing condominiums communities such as Riverfront Plaza (200 P Street), 1818 L Street (L Street Lofts), Somerset Parkside Condos on P Street and several other communities that are within a short distance from the proposed building site as well as communities across the river in West Sacramento.

If you are interested in the Downtown Sacramento market, feel free to contact Bruce Slaton or one of our REALTOR partners at Realty World eCurb Realtors at 916-226-2700 or email us here at info@SacramentoCondos.com and we will keep you updated on the potential exciting development announcements that we are sure will follow once a Sacramento Kings arena has been approved and breaks ground.

We’ve provided you a listing of area condos in the general area of the proposed arena in case your in the market now

As always we look forward to assisting you with your Sacramento condominium, loft and planned unit development needs whether your buying or selling.

Until next time, have an incredible week!

By Bruce Slaton

We get this question a lot here at SacramentoCondos.com and in this condominium market it can mean the difference between a buyer obtaining financing or not.

So if you’ve been following our blog here about the Sacramento region condominium market, you will know financing has become an issue in many of the condominium communities because of one or more of several factors Fannie Mae requires for Conventional loans and entities like HUD follow some of the same directions, these usually consist of one of the following:

1. Litigation in the complex (some lenders say structural, some say defect, some say any depending on their interpretation)
2.  More than 15% of the units in the community more than 30 days late on their HOA fees (some lenders say 60)
3. One entity (company or individual) owning more than 1o% of the units in a community
4. Less than 50% of the units owned by owner occupants (or the reverse, more than 50% of the units being used as rentals)
5. Obsolete condo units (can be based on floor plan, square footage) An example would be a 450 square foot studio condominium

So back to our question…what’s the difference between a condominium and a PUD (Planned Unit Development)

1st let me tell you how to find out because you cannot tell from looking at a community, it may look like a condominium community (like Roundtree in Greenhaven) but it may instead be a PUD.  I am using Sacramento an an example, it starts with the tax record for the property at a minimum.

So in regards to Roundtree, by checking the tax record, you will see under Universal Land Use is PUD (see below)

Now let’s check out South Lake Shore Condominiums in the Greenhaven area, it is termed a condominium and is identified as a condominium (see below)

Now why do we care?
In general if the land use is a PUD, the community will be processed more along the lines of a single family home versus a condominium, meaning the criteria above do not matter but subject to the individual lender overlays and criteria.  In communities where FHA and Conventional loans are not available, this can make a big difference.

PUDs also usually do not require a condominium certification (requested by lenders), I say usually because this should be verified by your lender at the time because they may need to research the community because the difference between a PUD and a Condominium is a common confusion among both real estate professionals and some newer lenders.

I reached out to some of the great lenders who I have the pleasure of working with through our association with this question just for our condominium readers….

“Is it safe to tell our condominium readers at SacramentoCondos.com that if a community is really a PUD, no condominium certification is required and lending process is the same as a single family home although an HOA is involved?”

Bob Willett, Senior Loan Officer at Big Valley Mortgage in Sacramento says “ I have found that the tax records and even the CC&Rs can be wrong. The problem is many people – including some people in the recorder’s office – don’t know the difference between a PUD and a condo.

If it’s a PUD you will have individual lot ownership – like a subdivision – and commonly owned lots owned by the association. In a condo the association will own all the land, and homeowners will have title only to their unit, i.e. airspace. The easiest way to tell is to look at the plat map. If you see lots of little lots it’s a PUD.
Bob’s NMLS number is 238076 and he can be reached at 916-485-7939 or his website at www.SacRELender.com

Sheri Schmitz, Mortgage Broker at Bank of the West in Sacramento says “Your correct. All depends on how the project is recorded. Condos will have insurance policy to cover outside, and owners only required for inside. So you can also check the HOA to see what coverage they have to be doubly sure”
Sheri’s NMLS # is 278808 and she can be reached at 916-787-5220 or her website.

Scott Short, Residential Loan Officer at Mason-McDuffie Mortgage Corporation says “Only the recorded declarations (CC&Rs) can definitively establish condominium status. The declarations will indicate that the development was created pursuant to the applicable state’s condominium statutes and will specifically describe the subdivision as a condominium. Do not rely on the appraiser, real estate sales person, the escrow officer / settlement agent or architectural style of the property (e.g., townhouse) to establish condominium status. These parties / attributes are frequently wrong. Although only the declarations can definitively establish condominium status, the PRELIMINARY TITLE REPORT or title commitment generally will suggest condominium status. The legal description or other introductory language will include the term or phrase “a condominium” or that the project was created pursuant to the state’s “condominium code.” Also ,the legal description will include the number of the recorded condominium map and a reference to the fractional share of the common area that is owned by the particular unit.

Scott’s NMLS is #225998 and he can be reached at 916-997-4828 or his website.

Scott Short also provided this example of a condominium’s legal description:
Following are examples of a condominium property’s legal description: Example #1THE ESTATE OF INTEREST IN THE LAND HEREINAFTER DESCRIBED ORREFERRED TO COVERAGE BY THIS REPORT IS A CONDOMINIUM AS THESAME IS DEFINED IN SECTION 783 OF THE CIVIL CODE, IN FEE. Example #2A CONDOMINIUM ESTATE CONSISTING OF A 1/300TH INTEREST, ASTENANTS IN COMMON, IN TRACT NO. 406, HACIENDA CARMEL PROPERTYIN LOT 11, HATTON PARTITION, RANCHO CANADA DO LA SEGUNDA,CARMEL VALLEY, MONTEREY COUNTY, CALIFORNIA, AS DESIGNATED ONTHAT CERTAIN SUBDIVISION MAP ENTITLED TRACT NO. 406, HACIENDACARMEL, FILED IN THE OFFICE OF THE RECORDER OF THE COUNTY OFMONTEREY, STATE OF CALIFORNIA, ON MARCH 27,1962, AND RECORDEDIN BOOK OF MAPS, CITIES AND TOWNS, VOLUME 7, PAGE 60. EXCEPTINGHOWEVER, UNITS 1 THROUGH 125 INCLUSIVE, AS SHOWN ON THE AB0VEMENTIONED SUBDIVISION MAP. Example #3LEGAL DESCRIPTIONPARCEL 1:AN UNDIVIDED 1/124% INTEREST AS TENANTS IN COMMON IN AND TO ALLOF THE FOLLOWING REAL PROPERTY:COMMON AREA, AS SHOWN ON THE MAP OF TRACT NO. 1056,WESTWOOD VILLAGE CONDOMINIUMS, FILED FOR RECORD ON JULY 12,1987 IN VOLUME 16 OF MAPS, “CITIES AND TOWNS”, AT PAGE 20.ALL OF THE COMMON AREA LOCATED ON SAID LOT PHASE ONE ANDPHASE TWO DESCRIBED IN THE CONDOMINIUM PLAN OF WESTWOODVILLAGE CONDOMINIUMS, FILED FOR RECORD ON JULY 1, 1987, IN THEOFFICE OF THE COUNTY RECORDER OF MONTEREY COUNTY,CALIFORNIA, IN VOLUME 16 OF MAPS.

And of course my favorite Appraiser in the Sacramento region Ryan Lundquist from Lundquist Appraisal Company provided this great video to assist as well:

Click here to view the embedded video.

Ryan Lundquist can be reached at 916-595-3735 or at his website LunquistCompany.com

As always, we are here at Realty World eCurb Realtors and SacramentoCondos.com to answer your condominium questions or help find solutions for your lending issues with our qualified network of lenders.  Feel free at any time to email us at info@SacramentoCondos.com with your condominium needs whether buying or selling a condo, loft, PUD or townhome in the Sacramento region.  You can also reach Bruce Slaton by phone at 916-475-4500 or follow us on Facebook

We always hate to post Condo Consumer Alerts but when we do it’s because we feel consumers and real estate industry professionals who use our site as their condominium resources source know how to educate themselves when purchasing a condominium.  These alerts are usually provided to us by consumers, real estate professionals or in many cases the outcome of a recent transaction we have done in the complex.  We make every attempt to independently verify each alert before we place it on the website and we do allow the developer or HOA to respond that they have remedied the issue although we may elect to post the reply as an update to the post versus removing the post from the website as many times the issues come back and we always want consumers to have the best information in making their decisions.

Today’s alert is pertaining to disclosure.  In California, every home is sold AS IS “as disclosed”, what this means is yes you purchase every home AS IS but it is a requirement of the Seller of the property as well as their agent who represents them to disclose any material fact that exists with the property the Buyer is purchasing.  For example, if the property is in an HOA, 1st and foremost, the Seller has to disclose the property is located in an HOA.  The Seller also have to provide HOA documents which include the most recent 12 months of the HOA “minutes”  these are the minutes from the HOA meetings.  From these minutes you can tell of any proposed assessments in the HOA which may affect your future liability, it can provide information on lawsuits, rules changes, limits on rental limits etc.  These are very important.

Now let’s take this in a different context, a developer had purchased the non performing loan that encumbered the remaining units at 500 N Street and acquired the units through a Trustees Sale conducted in 5/11/11.  We recently had a sale in this complex through the developers represenative who is an active REALTOR and therefore bound by not only our Code of Ethics but CA State real estate law.  The agent on the behalf of the developer provided disclosures with no disclosure and stated that the developer was “exempt” because they acquired the property through a Trustees Sale.  This is a common practice with agents who service REO (Bank Owned) properties but in those cases, the bank usually takes the property back and has no history of the property, no real inspection of the property and usually makes no improvements to the property before selling the property to a new owner.  In this case the developer held the unit for over a hear and may have done improvements (never know without proper disclosure) and failed to disclose anything to the new buyer (or at least through their agent).  The agent also felt he was exempt from disclosure which is contrary to the truth in CA, while a bank may be exempt from disclosure if the property was acquired through a trustees sale, the agent representing them is required to provide all required disclosures including any material facts.

You have to ask yourself as a Buyer and ask these questions of the Sellers agent in these situations (and always get it in writing, phone calls mean nothing):

1. Where there any improvements made to the property by the Seller after the Trustees Sale?  (These would need to be disclosed as well as receipts provided etc for warranties)
2. What appliances manuals, warranties are in the possession of the Seller and are the warranties transferrable to the new owner?
3. What work was performed to the unit and request all copies of invoices for that work (by CA state law contractors need to state their company name, license # and contact information on the reciept)  It is always helpful to contact the contractor during the inspection period and ask them about what work they performed and it can be useful to use this contractor in the future if the work was satisfactory as they most likely have experience in the building.
4. Ask the Seller for any remediation work done to unit after the Trustees Sale including for instance in 500 N Street, any work done to the sprinkler systems that run through the building.  If work was done, request the documentation for your records.

Based on our recent transaction in this building, we strongly recommend you always use a 3rd party REALTOR to represent your best interests and always obtain a full home inspection, an HVAC inspection and review carefully the HOA disclosures provided to you by the HOA.  You should contact the HOA management company for any questions from the minutes.

Also keep in mind a Home Warranty is a great thing to have the 1st year if your purchase BUT a home warranty covers things that are in working order at the time of the closing.  The first thing a home warranty company may ask is for a copy of the TDS (Transfer Disclosure Statement) and the home inspection.  If you have a TDS that is exempted and doesnt disclose anything and did not obtain a home inspection, your clain could be denied by the home warranty insurer.

We strive to continue to provide you the Sacramento region’s best information for condominiums, PUDs and Lofts and if you ever feel you have something that we need to issue a Condo Consumer Alert for, please feel free to email us through the Questions section on the front page and we’ll contact you for more details

Happy New Year from the Team here at SacramentoCondos.com

Real Estate Services for SacramentoCondos.com provided by Realty World eCurb REALTORS.  SacramentoCondos.com is the Sacramento region’s leading website for condominiums, PUDs & lofts.  You can connect with SacramentoCondos.com on our Facebook Page as well.

A Southern California investor has paid $21.5 million for most of the L Street Lofts, a luxury condo tower in midtown Sacramento that became a symbol of both the real estate boom and the bust that followed.

The deal — the second involving a high-profile residential building downtown in recent weeks — also signals rising investor demand for multifamily housing in urban Sacramento.

Bob Clippinger, president of Clippinger Investment Properties Inc. of Laguna Niguel, said he plans to initially rent out the 67 units at $2.65 to $3 per square foot, some of the highest apartment rates in Sacramento.

L Street Lofts has approximately 25 units that are owned by individual owners with several currently up for sale.  Rumor has it Clippinger may start offering his units up for sale after a year or so and demand should be rising then for Midtown purchases which are already seeing an increase in demand and requests.

500 N Street was also recently purchased from Wells Fargo after they foreclosed on the complex and was sold to 360 Developments who is currently renting out those units with what is rumored to also be testing selling of several of the units.

Lack of financing in condos has been a major factor in the ability to sell many of the units that could be on the market today and instead are being rented until the market settles.  We’ve had several discussions with Aaron Meilich from Golden Pacific Bank (Aaron can be reached at 916-798-3000) and it appears Golden Pacific may be offering financing in some of these complexes for those looking to purchase but not finding a lender to finance.

We’ll continue to monitor developments here at SacramentoCondos.com as L Street Lofts is one of the most search complexes on our site.

If you know of news regarding condominium developments in the Sacramento area or news about a complex developement etc, feel free to share it with us as info@SacramentoCondos.com.

Civil Code §1360.2. Rent Restrictions.

(a) An owner of a separate interest in a common interest development shall not be subject to a provision in a governing document or an amendment to a governing document that prohibits the rental or leasing of any of the separate interests in that common interest development to a renter, lessee, or tenant unless that governing document, or amendment thereto, was effective prior to the date the owner acquired title to his or her separate interest.

(b) Notwithstanding the provisions of this section, an owner of a separate interest in a common interest development may expressly consent to be subject to a governing document or an amendment to a governing document that prohibits the rental or leasing of any of the separate interests in the common interest development to a renter, lessee, or tenant.

(c) For purposes of this section, the right to rent or lease the separate interest of an owner shall not be deemed to have terminated if the transfer by the owner of all or part of the separate interest meets at least one of the following conditions:

(1) Pursuant to Section 62 or 480.3 of the Revenue and Taxation Code, the transfer is exempt, for purposes of reassessment by the county tax assessor.

(2) Pursuant to subdivision (b) of, solely with respect to probate transfers, or subdivision (e), (f), or (g) of, Section 1102.2, the transfer is exempt from the requirements to prepare and deliver a Real Estate Transfer Disclosure Statement, as set forth in Section 1102.6.

(d) Prior to renting or leasing his or her separate interest as provided by this section, an owner shall provide the association verification of the date the owner acquired title to the separate interest and the name and contact information of the prospective tenant or the prospective tenant’s representative.

(e) Nothing in this section shall be deemed to revise, alter, or otherwise affect the voting process by which a common interest development adopts or amends its governing documents.

(f) This section shall apply only to a provision in a governing document or a provision in an amendment to a governing document that becomes effective on or after January 1, 2012.

Civil Code §1367.4. Limitations on Foreclosure.

(a) Notwithstanding any law or any provisions of the governing documents to the contrary, this section shall apply to debts for assessments that arise on and after January 1, 2006.

(b) An association that seeks to collect delinquent regular or special assessments of an amount less than one thousand eight hundred dollars ($1,800), not including any accelerated assessments, late charges, fees and costs of collection, attorney’s fees, or interest, may not collect that debt through judicial or nonjudicial foreclosure, but may attempt to collect or secure that debt in any of the following ways:

(1) By a civil action in small claims court, pursuant to Chapter 5.5 (commencing with Section 116.110) of Title 1 of the Code of Civil Procedure. An association that chooses to proceed by an action in small claims court, and prevails, may enforce the judgment as permitted under Article 8 (commencing with Section 116.810) of Title 1 of the Code of Civil Procedure. The amount that may be recovered in small claims court to collect upon a debt for delinquent assessments may not exceed the jurisdictional limits of the small claims court and shall be the sum of the following:

(A) The amount owed as of the date of filing the complaint in the small claims court proceeding.

(B) In the discretion of the court, an additional amount to that described in subparagraph (A) equal to the amount owed for the period from the date the complaint is filed until satisfaction of the judgment, which total amount may include accruing unpaid assessments and any reasonable late charges, fees and costs of collection, attorney’s fees, and interest, up to the jurisdictional limits of the small claims court.

(2) By recording a lien on the owner’s separate interest upon which the association may not foreclose until the amount of the delinquent assessments secured by the lien, exclusive of any accelerated assessments, late charges, fees and costs of collection, attorney’s fees, or interest, equals or exceeds one thousand eight hundred dollars ($1,800) or the assessments are more than 12 months delinquent. An association that chooses to record a lien under these provisions, prior to recording the lien, shall offer the owner and, if so requested by the owner, participate in dispute resolution as set forth in Article 5 (commencing with Section 1368.810) of Chapter 4.

(3) Any other manner provided by law, except for judicial or nonjudicial foreclosure.

(c) An association that seeks to collect delinquent regular or special assessments of an amount of one thousand eight hundred dollars ($1,800) or more, not including any accelerated assessments, late charges, fees and costs of collection, attorney’s fees, or interest, or any assessments that are more than 12 months delinquent, may use judicial or nonjudicial foreclosure subject to the following conditions:

(1) Prior to initiating a foreclosure on an owner’s separate interest, the association shall offer the owner and, if so requested by the owner, participate in dispute resolution pursuant to the association’s “meet and confer” program required in Article 5 (commencing with Section 1363.810) of Chapter 4 or alternative dispute resolution as set forth in Article 2 (commencing with Section 1369.510) of Chapter 7. The decision to pursue dispute resolution or a particular type of alternative dispute resolution shall be the choice of the owner, except that binding arbitration shall not be available if the association intends to initiate a judicial foreclosure.

(2) The decision to initiate foreclosure of a lien for delinquent assessments that has been validly recorded shall be made only by the board of directors of the association and may not be delegated to an agent of the association. The board shall approve the decision by a majority vote of the board members in an executive session. The board shall record the vote in the minutes of the next meeting of the board open to all members. The board shall maintain the confidentiality of the owner or owners of the separate interest by identifying the matter in the minutes by the parcel number of the property, rather than the name of the owner or owners. A board vote to approve foreclosure of a lien shall take place at least 30 days prior to any public sale.

(3) The board shall provide notice by personal service to an owner of a separate interest who occupies the separate interest or to the owner’s legal representative, if the board votes to foreclose upon the separate interest. The board shall provide written notice to an owner of a separate interest who does not occupy the separate interest by first-class mail, postage prepaid, at the most current address shown on the books of the association. In the absence of written notification by the owner to the association, the address of the owner’s separate interest may be treated as the owner’s mailing address.

(4) A nonjudicial foreclosure by an association to collect upon a debt for delinquent assessments shall be subject to a right of redemption. The redemption period within which the separate interest may be redeemed from a foreclosure sale under this paragraph ends 90 days after the sale.

(d) The limitation on foreclosure of assessment liens for amounts under the stated minimum in this section does not apply to assessments owed by owners of separate interests in timeshare estates, as defined in subdivision (x) of Section 11112 of the Business and Professions Code, or to assessments owed by developers.

Civil Code §1368. Disclosure Requirements of Seller.

(a) The owner of a separate interest, other than an owner subject to the requirements of Section 11018.6 of the Business and Professions Code, shall, as soon as practicable before transfer of title to the separate interest or execution of a real property sales contract therefor, as defined in Section 2985, provide the following to the prospective purchaser:

(1) A copy of the governing documents of the common interest development, including any operating rules, and including a copy of the association’s articles of incorporation, or, if not incorporated, a statement in writing from an authorized representative of the association that the association is not incorporated.

(2) If there is a restriction in the governing documents limiting the occupancy, residency, or use of a separate interest on the basis of age in a manner different from that provided in Section 51.3, a statement that the restriction is only enforceable to the extent permitted by Section 51.3 and a statement specifying the applicable provisions of Section 51.3.

(3) A copy of the most recent documents distributed pursuant to Section 1365.

(4) A true statement in writing obtained from an authorized representative of the association as to the amount of the association’ s current regular and special assessments and fees, any assessments levied upon the owner’s interest in the common interest development that are unpaid on the date of the statement, and any monetary fines or penalties levied upon the owner’s interest and unpaid on the date of the statement. The statement obtained from an authorized representative shall also include true information on late charges, interest, and costs of collection which, as of the date of the statement, are or may be made a lien upon the owner’s interest in a common interest development pursuant to Section 1367 or 1367.1.

(5) A copy or a summary of any notice previously sent to the owner pursuant to subdivision (h) of Section 1363 that sets forth any alleged violation of the governing documents that remains unresolved at the time of the request. The notice shall not be deemed a waiver of the association’s right to enforce the governing documents against the owner or the prospective purchaser of the separate interest with respect to any violation. This paragraph shall not be construed to require an association to inspect an owner’s separate interest.

(6) A copy of the initial list of defects provided to each member of the association pursuant to Section 1375, unless the association and the builder subsequently enter into a settlement agreement or otherwise resolve the matter and the association complies with Section 1375.1. Disclosure of the initial list of defects pursuant to this paragraph does not waive any privilege attached to the document. The initial list of defects shall also include a statement that a final determination as to whether the list of defects is accurate and complete has not been made.

(7) A copy of the latest information provided for in Section 1375.1.

(8) Any change in the association’s current regular and special assessments and fees which have been approved by the association’s board of directors, but have not become due and payable as of the date disclosure is provided pursuant to this subdivision.

(9) If there is a provision in the governing documents that prohibits the rental or leasing of any of the separate interests in the common interest development to a renter, lessee, or tenant, a statement describing the prohibition and its applicability.

(10) If requested by the prospective purchaser, a copy of the minutes of the meetings, excluding meetings held in executive session, of the association’s board of directors, conducted over the previous 12 months, that were approved by the association’s board of directors.

(b)

(1) Upon written request, the association shall, within 10 days of the mailing or delivery of the request, provide the owner of a separate interest, or any other recipient authorized by the owner, with a copy of the requested documents specified in paragraphs (1) to (10), inclusive, of subdivision (a). Upon receipt of a written request, the association shall provide, on the form described in Section 1368.2, a written or electronic estimate of the fees that will be assessed for providing the requested documents. The documents required to be made available pursuant to this section may be maintained in electronic form, and may be posted on the association’s Internet Web site. Requesting parties shall have the option of receiving the documents by electronic transmission if the association maintains the documents in electronic form. The association may collect a reasonable fee based upon the association’s actual cost for the procurement, preparation, reproduction, and delivery of the documents requested pursuant to the provisions of this section.

(2) No additional fees may be charged by the association for the electronic delivery of the documents requested.

(3) Fees for any documents required by this section shall be distinguished from other fees, fines, or assessments billed as part of the transfer or sales transaction. Delivery of the documents required by this section shall not be withheld for any reason nor subject to any condition except the payment of the fee allowed pursuant to paragraph (1).

(4) An association may contract with any person or entity to facilitate compliance with the requirements of this subdivision on behalf of the association.

(5) The association shall also provide a recipient authorized by the owner of a separate interest with a copy of the completed form specified in Section 1368.2 at the time the required documents are delivered.

(c)

(1) Except as provided in paragraph (2), neither an association nor a community service organization or similar entity may impose or collect any assessment, penalty, or fee in connection with a transfer of title or any other interest except for the following:

(A) An amount not to exceed the association’s actual costs to change its records.

(B) An amount authorized by subdivision (b).

(2) The prohibition in paragraph (1) does not apply to a community service organization or similar entity, or to a nonprofit entity that provides services to a common interest development under a declaration of trust, that is described in subparagraph (A) or (B):

(A) The community service organization or similar entity satisfies both of the following requirements:

(i) The community service organization or similar entity was established prior to February 20, 2003.

(ii) The community service organization or similar entity exists and operates, in whole or in part, to fund or perform environmental mitigation or to restore or maintain wetlands or native habitat, as required by the state or local government as an express written condition of development.

(B) The community service organization or similar entity, or a nonprofit entity that provides services to a common interest development under a declaration of trust, satisfies all of the following requirements:

(i) The organization or entity is not an organization or entity described in subparagraph (A).

(ii) The organization or entity was established and received a transfer fee prior to January 1, 2004.

(iii) On and after January 1, 2006, the organization or entity offers a purchaser the following payment options for the fee or charge it collects at time of transfer:

(I) Paying the fee or charge at the time of transfer.

(II) Paying the fee or charge pursuant to an installment payment plan for a period of not less than seven years. If the purchaser elects to pay the fee or charge in installment payments, the organization or entity may also collect additional amounts that do not exceed the actual costs for billing and financing on the amount owed. If the purchaser sells the separate interest before the end of the installment payment plan period, he or she shall pay the remaining balance prior to transfer.

(3) For the purposes of this subdivision, a “community service organization or similar entity” means a nonprofit entity, other than an association, that is organized to provide services to residents of the common interest development or to the public in addition to the residents, to the extent community common areas or facilities are available to the public. A “community service organization or similar entity” does not include an entity that has been organized solely to raise moneys and contribute to other nonprofit organizations that are qualified as tax exempt under Section 501(c)(3) of the Internal Revenue Code and that provide housing or housing assistance.

(d) Any person or entity who willfully violates this section is liable to the purchaser of a separate interest that is subject to this section for actual damages occasioned thereby and, in addition, shall pay a civil penalty in an amount not to exceed five hundred dollars ($500). In an action to enforce this liability, the prevailing party shall be awarded reasonable attorneys’ fees.

(e) Nothing in this section affects the validity of title to real property transferred in violation of this section.

(f) In addition to the requirements of this section, an owner transferring title to a separate interest shall comply with applicable requirements of Sections 1133 and 1134.

(g) For the purposes of this section, a person who acts as a community association manager is an agent, as defined in Section 2297, of the association.

Civil Code §1353.5. Right to Display American Flag.

(a) Except as required for the protection of the public health or safety, no declaration or other governing document shall limit or prohibit, or be construed to limit or prohibit, the display of the flag of the United States by an owner on or in the owner’s separate interest or within the owner’s exclusive use common area, as defined in Section 1351.

(b) For purposes of this section, “display of the flag of the United States” means a flag of the United States made of fabric, cloth, or paper displayed from a staff or pole or in a window, and does not mean a depiction or emblem of the flag of the United States made of lights, paint, roofing, siding, paving materials, flora, or balloons, or any other similar building, landscaping, or decorative component.

(c) In any action to enforce this section, the prevailing party shall be awarded reasonable attorneys’ fees and costs.

Civil Code §1353. Contents of Declaration.

(a)

(1) A declaration, recorded on or after January 1, 1986, shall contain a legal description of the common interest development, and a statement that the common interest development is a community apartment project, condominium project, planned development, stock cooperative, or combination thereof. The declaration shall additionally set forth the name of the association and the restrictions on the use or enjoyment of any portion of the common interest development that are intended to be enforceable equitable servitudes. If the property is located within an airport influence area, a declaration, recorded after January 1, 2004, shall contain the following statement:

NOTICE OF AIRPORT IN VICINITY

This property is presently located in the vicinity of an airport, within what is known as an airport influence area. For that reason, the property may be subject to some of the annoyances or inconveniences associated with proximity to  airport operations (for example: noise, vibration, or odors). Individual sensitivities to those annoyances can vary from person to person. You may wish to consider what airport  annoyances, if any, are associated with the property before you complete your purchase and determine whether they are  acceptable to you.

(2) For purposes of this section, an “airport influence area,” also known as an “airport referral area,” is the area in which current or future airport-related noise, overflight, safety, or airspace protection factors may significantly affect land uses or necessitate restrictions on those uses as determined by an airport land use commission.

(3) The statement in a declaration acknowledging that a property is located in an airport influence area does not constitute a title defect, lien, or encumbrance.

(b) The declaration may contain any other matters the original signator of the declaration or the owners consider appropriate.

Civil Code §1352.5. Board Authority to Delete Discriminatory Covenants.

(a) No declaration or other governing document shall include a restrictive covenant in violation of Section 12955 of the Government Code.

(b) Notwithstanding any other provision of law or provision of the governing documents, the board of directors of an association, without approval of the owners, shall amend any declaration or other governing document that includes a restrictive covenant prohibited by this section to delete the restrictive covenant, and shall restate the declaration or other governing document without the restrictive covenant but with no other change to the declaration or governing document.

(c) If after providing written notice to an association requesting that the association delete a restrictive covenant that violates subdivision (a), and the association fails to delete the restrictive covenant within 30 days of receiving the notice, the Department of Fair Employment and Housing, a city or county in which a common interest development is located, or any person may bring an action against the association for injunctive relief to enforce subdivision (a). The court may award attorney’s fees to the prevailing party.