Senator Ducheny will introduce another bill next year

September 30, 2004

By Mark Stivers (View author info)

Senator Denise Moreno Ducheny (D-San Diego) announced that AB 2598, her bill to protect homeowners in common interest developments from foreclosure for small amounts of delinquent assessments, was vetoed today by Governor Schwarzenegger. The Governor has agreed to work with Senator Ducheny next year to craft a bill that will receive a signature.

"I strongly believe that this bill was a reasonable compromise to preserve the ability of homeowner associations to collect legitimate debts while ensuring that homeowners do not lose a lifetime of savings in their home over a $120 debt," said Senator Ducheny. "However, I will take the Governor at his word that he is committed to working with me on a bill he can sign next year."

AB 2598 responds to complaints regarding homeowners associations seizing members' homes for small amounts of delinquent dues. One such case involved the Radcliff family of Copperopolis, who lost their life savings, invested in their home, when the association foreclosed for $120 in late assessments.


AB 2598 would prohibit a homeowner association from using foreclosure for delinquent assessments of less than $2,500, exclusive of collection costs and legal fees. When homeowner associations do use foreclosure for larger debts, they would be required first to offer the homeowner mediation or other forms of dispute resolution, and protect the owner's equity at sale.

In addition, the homeowner would have the opportunity to redeem the property within 90 days after sale.

Under the bill, homeowner associations would still have the ability to collect debts under $2500 through small claims or superior court. Court judgments may be enforced like all other judgments through wage garnishment, selling assets and, with court approval, even foreclosure. In addition, an association would have been able to record a lien on the property that gets paid whenever the homes sells or is refinanced.

"I find it unacceptable that it is easier for a homeowners' association to take a family's home than it is for a landlord to evict a tenant," said
Ducheny. "I am committed to following through on this issue to make sure that the punishment for failure to pay association assessments fits the crime."

Senator Ducheny originally authored SB 1682. However, due to procedural reasons, AB 2598, a measure identical to SB 1682, was the bill approved by the Legislature with bipartisan support. The vote in the Senate was 33-1. In the Assembly, the vote was 69-7.

Senator Denise Moreno Ducheny represents parts of San Diego and Riverside Counties and all of Imperial County. She is the Chair of Senate Housing and Community Development Committee.