Governor Brown Signs CLAC-sponsored Assembly Bill 1412

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Legislation, authored by Assemblyman Steven Choi, extends liability protections enjoyed by board members in residential associations to those in mixed-use communities

This new law and the protections therein will result in greater board representation for those residing or operating in mixed-use associations

Governor Jerry Brown signed into law this week Assembly Bill 1412, legislation sponsored by the Community Associations Institute’s California Legislative Action Committee (CAI-CLAC) and authored by Assemblyman Steven Choi (R-68th District) that provides important liability protections for volunteer directors of mixed-use community associations.

Existing law limits the personal liability of volunteer officers or directors of associations that manage exclusively residential common interest developments for tortious acts or omissions made in good faith and within their scope of duty. AB 1412 extends these protections to volunteer officers or directors in associations that manage mixed-use communities, including both residential, commercial and/or office.

“We appreciate Governor Brown, Assemblyman Choi and other legislators for supporting this important bill,” announced John MacDowell, CAI-CLAC’s chair. “This new law and the protections therein will result in greater board representation for those residing or operating in mixed-use associations.”

The issue was important for Assemblyman Choi, whose Orange County district already includes a significant number of managed community associations. As the residential and commercial marketplace continuing to shift toward more mixed-use developments, it was important that state law supported good governance in these communities.

“More and more new developments in Anaheim, Orange, Tustin, Irvine and Lake Forest are incorporating a mix of uses,” explained Assemblyman Choi. “It’s imperative that state law is updated to reflect this shift and that homeowners and those renting residential, office or retail spaces in mixed-use developments enjoy effective association governance.”

“This bill removes an unnecessary barrier to attracting the best representation possible on those boards,” concluded Choi.

AB 1412 also authorizes associations to use the last known address provided in writing by the owner in sending official association notices if that owner fails to provide required change of address notice.

Assemblyman Steven S. Choi serves the 68th District, which includes the Orange County cities of Anaheim, Irvine, Lake Forest, North Tustin, Orange, Tustin and Villa Park. AB 1412 is Assemblyman Choi’s first bill to be signed into law.

About CAI’s California Legislative Action Committee
Community Associations Institute, or CAI, is an international organization providing education and resources to community associations, their volunteer leaders, and the industries that serve them. CAI's California Legislative Action Committee, CLAC, advocates the interests of the over 50,000 community associations in California and educates legislators about homeowner association living and governance. CLAC's delegates, appointed by the eight CAI chapters in California, include homeowner volunteers, community association managers, and other industry professionals. Visit http://www.caiclac.com to learn more.

In addition to state and national legislative advocacy, CAI provides information, tools and resources to community association volunteer leaders, community managers and management firms and other professionals who provide products and services to community associations. For more information, visit http://www.caionline.org or call (888) 224-4321.

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