Civil Code §6819. Failure to Comply with Assessment Lien Procedures; Effect

California Civil Code  >   Commercial & Industrial Common Interest Development Act  >  Chapter 7. Assessments and Assessment Collection  >  Article 2. Assessment Payment and Delinquency > Civil Code §6819. Failure to Comply with Assessment Lien Procedures; Effect
An association that fails to comply with the procedures set forth in this section shall, prior to recording a lien, recommence the required notice process. Any costs associated with recommencing the notice process shall be borne by the association and not by the owner of a separate interest. [2013 – Based on former §1367.1(l)]

Civil Code §6818. Payment and Rescission of Assessment Lien; Liens Recorded in Error

California Civil Code  >   Commercial & Industrial Common Interest Development Act  >  Chapter 7. Assessments and Assessment Collection  >  Article 2. Assessment Payment and Delinquency > Civil Code §6818. Payment and Rescission of Assessment Lien; Liens Recorded in Error
(a) Within 21 days of the payment of the sums specified in the notice of delinquent assessment, the association shall record or cause to be recorded in the office of the county recorder in which the notice of delinquent assessment is recorded a lien release or notice of rescission and provide the owner of the separate interest a copy of the lien release or notice that the delinquent assessment has been satisfied.
 (b) If it is determined that a lien previously recorded against the separate interest was recorded in error, the party who recorded the lien shall, within 21 calendar days, record or cause to be recorded in the office of the county recorder in which the notice of delinquent assessment is recorded a lien release or notice of rescission and provide the owner of the separate interest with a declaration that the lien filing or recording was in error and a copy of the lien release or notice of rescission. [2013 – Based on former §§1367.1(i) & 1367.5]

Civil Code §6816. Priority of Assessment Lien

California Civil Code  >   Commercial & Industrial Common Interest Development Act  >  Chapter 7. Assessments and Assessment Collection  >  Article 2. Assessment Payment and Delinquency > Civil Code §6816. Priority of Assessment Lien
 A lien created pursuant to Section 6814 shall be prior to all other liens recorded subsequent to the notice of delinquent assessment, except that the declaration may provide for the subordination thereof to any other liens and encumbrances. [2013 – Based on former §1367.1(f)]

Civil Code §6810. Assessment Payments

California Civil Code  >   Commercial & Industrial Common Interest Development Act  >  Chapter 7. Assessments and Assessment Collection  >  Article 2. Assessment Payment and Delinquency > Civil Code §6810. Assessment Payments by Owners and How Applied to Debt
(a) When an owner of a separate interest makes a payment toward an assessment, the owner may request a receipt and the association shall provide it. The receipt shall indicate the date of payment and the person who received it.
(b) The association shall provide a mailing address for overnight payment of assessments.
 (c) An owner shall not be liable for any charges, interest, or costs of collection for an assessment payment that is asserted to be delinquent, if it is determined the assessment was paid on time to the association. [2013 – Based on former §1367.1(a)(3) & (b)]

Civil Code §6808. Assessments as Debts; Permissible Charges and Interest

California Civil Code  >   Commercial & Industrial Common Interest Development Act  >  Chapter 7. Assessments and Assessment Collection  >  Article 2. Assessment Payment and Delinquency > Civil Code §6808. Assessments as Debts; Permissible Charges and Interest
 A regular or special assessment and any late charges, reasonable fees and costs of collection, reasonable attorney’s fees, if any, and interest, if any, shall be a debt of the owner of the separate interest at the time the assessment or other sums are levied. [2013 – Based on former §1367.1(a)]

Civil Code §6812. Pre-lien Notice Requirements

California Civil Code  >   Commercial & Industrial Common Interest Development Act  >  Chapter 7. Assessments and Assessment Collection  >  Article 2. Assessment Payment and Delinquency > Civil Code §6812. Pre-lien Notice Requirements
At least 30 days prior to recording a lien upon the separate interest of the owner of record to collect a debt that is past due under Section 6808, the association shall notify the owner of record in writing by certified mail of the following:
 (a) A general description of the collection and lien enforcement procedures of the association and the method of calculation of the amount, a statement that the owner of the separate interest has the right to inspect the association records pursuant to Section 8333 of the Corporations Code, and the following statement in 14-point boldface type, if printed, or in capital letters, if typed:
“IMPORTANT NOTICE: IF YOUR SEPARATE INTEREST IS PLACED IN FORECLOSURE BECAUSE YOU ARE BEHIND IN YOUR ASSESSMENTS, IT MAY BE SOLD WITHOUT COURT ACTION.”
 (b) An itemized statement of the charges owed by the owner, including items on the statement which indicate the amount of any delinquent assessments, the fees and reasonable costs of collection, reasonable attorney’s fees, any late charges, and interest, if any.
 (c) A statement that the owner shall not be liable to pay the charges, interest, and costs of collection, if it is determined the assessment was paid on time to the association. [2013 – Based on former §1367.1(a)]

Civil Code §6814. Contents and Effect of Assessment Lien

California Civil Code  >   Commercial & Industrial Common Interest Development Act  >  Chapter 7. Assessments and Assessment Collection  >  Article 2. Assessment Payment and Delinquency > Civil Code §6814. Contents and Effect of Assessment Lien
(a) The amount of the assessment, plus any costs of collection, late charges, and interest assessed in accordance with Section 6808, shall be a lien on the owner’s separate interest in the common interest development from and after the time the association causes to be recorded with the county recorder of the county in which the separate interest is located, a notice of delinquent assessment, which shall state the amount of the assessment and other sums imposed in accordance with Section 6808, a legal description of the owner’s separate interest in the common interest development against which the assessment and other sums are levied, and the name of the record owner of the separate interest in the common interest development against which the lien is imposed.
 (b) The itemized statement of the charges owed by the owner described in subdivision (b) of Section 6812 shall be recorded together with the notice of delinquent assessment.
 (c) In order for the lien to be enforced by nonjudicial foreclosure as provided in Sections 6820 and 6822, the notice of delinquent assessment shall state the name and address of the trustee authorized by the association to enforce the lien by sale.
(d) The notice of delinquent assessment shall be signed by the person designated in the declaration or by the association for that purpose, or if no one is designated, by the president of the association.
(e) A copy of the recorded notice of delinquent assessment shall be mailed by certified mail to every person whose name is shown as an owner of the separate interest in the association’s records, and the notice shall be mailed no later than 10 calendar days after recordation. [2013 – Based on former §1367.1(d)]

Civil Code §6804. Assessments Exempt from Execution by Creditors

California Civil Code  >   Commercial & Industrial Common Interest Development Act  >  Chapter 7. Assessments and Assessment Collection  >  Article 1. Establishment and Imposition of Assessments > Civil Code §6804. Assessments Exempt from Execution by Creditors
(a) Regular assessments imposed or collected to perform the obligations of an association under the governing documents or this act shall be exempt from execution by a judgment creditor of the association only to the extent necessary for the association to perform essential services, such as paying for utilities and insurance. In determining the appropriateness of an exemption, a court shall ensure that only essential services are protected under this subdivision.
 (b) This exemption shall not apply to any consensual pledges, liens, or encumbrances that have been approved by a majority of a quorum of members, pursuant to Section 6524, at a member meeting or election, or to any state tax lien, or to any lien for labor or materials supplied to the common area. [2013 – Based on former §1366(©

Civil Code §6800. Duty to Levy Assessments

California Civil Code  >   Commercial & Industrial Common Interest Development Act  >  Chapter 7. Assessments and Assessment Collection  >  Article 1. Establishment and Imposition of Assessments > Civil Code §6800. Duty to Levy Assessments
The association shall levy regular and special assessments sufficient to perform its obligations under the governing documents and this act. [2013 – Based on former §1366(a)]

Civil Code §6760. Required Filing of Biennial Statement

California Civil Code  >   Commercial & Industrial Common Interest Development Act  >  Chapter 6. Association Governance  >  Article 4. Government Assistance > Civil Code §6760. Required Filing of Biennial Statement
(a) To assist with the identification of commercial or industrial common interest developments, each association, whether incorporated or unincorporated, shall submit to the Secretary of State, on a form and for a fee, to cover the reasonable cost to the Secretary of State of processing the form, not to exceed thirty dollars ($30), that the Secretary of State shall prescribe, the following information concerning the association and the development that it manages:
  (1) A statement that the association is formed to manage a common interest development under the Commercial and Industrial Common Interest Development Act.
  (2) The name of the association.
  (3) The street address of the business or corporate office of the association, if any.
  (4) The street address of the association’s onsite office, if different from the street address of the business or corporate office, or if there is no onsite office, the street address of the responsible officer or managing agent of the association.
  (5) The name, address, and either the daytime telephone number or email address of the association’s onsite office or managing agent.
  (6) The name, street address, and daytime telephone number of the association’s managing agent, if any.
  (7) The county, and, if in an incorporated area, the city in which the development is physically located. If the boundaries of the development are physically located in more than one county, each of the counties in which it is located.
  (8) If the development is in an unincorporated area, the city closest in proximity to the development.
  (9) The front street and nearest cross street of the physical location of the development.
  (10) The type of common interest development managed by the association.
  (11) The number of separate interests in the development.
 (b) The association shall submit the information required by this section as follows:
  (1) By incorporated associations, within 90 days after the filing of its original articles of incorporation, and thereafter at the time the association files its statement of principal business activity with the Secretary of State pursuant to Section 8210 of the Corporations Code.
  (2) By unincorporated associations, in July of 2003, and in that same month biennially thereafter. Upon changing its status to that of a corporation, the association shall comply with the filing deadlines in paragraph (1).
 (c) The association shall notify the Secretary of State of any change in the street address of the association’s onsite office or of the responsible officer or managing agent of the association in the form and for a fee, to cover the reasonable cost to the Secretary of State of processing the form, prescribed by the Secretary of State, within 60 days of the change.
(d) The penalty for an incorporated association’s noncompliance with the initial or biennial filing requirements of this section shall be suspension of the association’s rights, privileges, and powers as a corporation and monetary penalties, to the same extent and in the same manner as suspension and monetary penalties imposed pursuant to Section 8810 of the Corporations Code.
 (e) The statement required by this section may be filed, notwithstanding suspension of the corporate powers, rights, and privileges under this section or under provisions of the Revenue and Taxation Code. Upon the filing of a statement under this section by a corporation that has suffered suspension under this section, the Secretary of State shall certify that fact to the Franchise Tax Board and the corporation may thereupon be relieved from suspension, unless the corporation is held in suspension by the Franchise Tax Board by reason of Section 23301, 23301.5, or 23775 of the Revenue and Taxation Code.
 (f) The Secretary of State shall make the information submitted pursuant to paragraph (5) of subdivision (a) available only for governmental purposes and only to Members of the Legislature and the Business, Consumer Services, and Housing Agency, upon written request. All other information submitted pursuant to this section shall be subject to public inspection pursuant to the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code). The information submitted pursuant to this section shall be made available for governmental or public inspection.
 (g) Whenever any form is filed pursuant to this section, it supersedes any previously filed form.
 (h) The Secretary of State may destroy or otherwise dispose of any form filed pursuant to this section after it has been superseded by the filing of a new form.  [2013 – Based on former §1363.6]