In response to state’s shortage of affordable housing, the California
Legislature passed the Building Homes and Jobs Act (“Act”)
which adds Section 27388.1 to the Government Code and Chapter 2.5 to the
Health and Safety Code (Division 21, Part 2). Although not affecting the
Davis-Stirling Act, these new laws definitely affect community associations.
Effective January 1, 2018, a $75.00 fee will be charged by your local recorder’s
office for the recording of certain real estate documents, including (unfortunately)
association governing documents (i.e. – CC&Rs) and collection
documents (i.e. - liens, release of liens, notices of default, etc.).
The $75.00 charge will be in addition to the fees already charged by the
recorder’s office, but the total fees will not exceed $225.00 per
Local governments and the Governor’s Office of Planning and Research
will have access to the generated funds through a special trust fund which
will be used to update planning and zoning ordinances that will facilitate
housing production, combat homelessness, and invest in transitional rental housing.
The Act’s most frequent and significant effect on associations will
be when the Board decides to record a lien against a property of a homeowner
who is delinquent in assessments. While associations and management companies
already charge owners for the cost of the lien, they will now need to
consider the $75.00 added charge.
For this reason, it is highly recommended that Associations update their
collections policies to accommodate for the fee by shifting the cost to
the delinquent homeowner. An Association should seek the help of legal
counsel in making these changes.