| FOR IMMEDIATE RELEASE: January 30, 2006 |
CONTACT: Geraldine O'Connor
(916) 319-2019 |
|
Assemblymember Gene Mullin’s (D- South San Francisco) Assembly Bill 770, which would establish an Ombudsperson to assist common interest development homeowners, was approved by the State Assembly today.
The measure creates a pilot program providing three important services:
• Education of homeowners and association officers, through an Internet Website, toll-free telephone call center, and training classes and materials.
• Dispute resolution, through informal conference or traditional mediation.
• Empirical data collection. This will provide policy makers with reliable information about the nature and incidence of problems occurring within California’s 36,000 common interest developments.
These services would be funded through a small annual fee of $5 per CID unit.
“The single greatest investment most families make in their lifetime is in their home. AB 770 will help protect the equity investment one-quarter of California families have in their homes, through education and mediation to be made available to homeowners and homeowner association boards in common interest developments,” Mullin stated on the Assembly floor.
“There are 3 million homeowners living in over 36,000 CIDs in the state. These communities are much like mini-governments with elected board members who are responsible for conducting hearings, adopting budgets, establishing reserves, enforcing rules and restrictions and collecting assessments. Mistakes can and do occur which may have long-term, negative impacts leading to under funded reserves and large assessments which put the senior and first-time homeowner at financial risk.”
AB 770 will next be heard by the State Senate Committee on Business and Professions.