JANUARY 2022

LEGAL UPDATE



 AB 1466 – Revised Disclaimer Language and Addition of a Form Required When Delivering Copies of Recorded Governing Documents to a Member

Overview


AB 1466 will require associations to modify copies of recorded documents (such as CC&Rs and CC&R Amendments) delivered to owners. The disclaimer cover page/stamp required on copies of recorded governing documents will need to be updated. Also, associations will now, at a minimum, need to provide copies of a Restrictive Covenant Modification form, along with procedural information about that form, whenever associations deliver a copy of a recorded governing document or deed to an owner. These changes are discussed below. 

Cover Page

 

AB 1466 amends Government Code Section 12956.1(b)(1), changing the required text that must be included on the cover page of a recorded governing document. Going forward, that statement, in at least 14-point boldface type, must now read:

“If this document contains any restriction based on age, race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, familial status, marital status, disability, veteran or military status, genetic information, national origin, source of income as defined in subdivision (p) of Section 12955, or ancestry, that restriction violates state and federal fair housing laws and is void, and may be removed pursuant to Section 12956.2 of the Government Code by submitting a "Restrictive Covenant Modification" form, together with a copy of the attached document with the unlawful provision redacted to the county recorder’s office. The “Restrictive Covenant Modification” form can be obtained from the county recorder’s office and may be available on its internet website. The form may also be available from the party that provided you with this document. Lawful restrictions under state and federal law on the age of occupants in senior housing or housing for older persons shall not be construed as restrictions based on familial status.”

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Restrictive Covenant Modification Form



AB 1466 adds a requirement that a Restrictive Covenant Modification form, and procedural information about the form, be included with any declaration, governing document or deed delivered by an association to an association member. We believe the intent was that this new form, and procedural information, only be included with copies of recorded governing documents (i.e., the recorded declaration). But, as drafted, the requirement arguably applies to any governing document delivered by an association to an owner. This new requirement is found at Government Code Section 12956.1(b)(3), and the form itself can be found at Government Code Section 12956.2(f). County recorder offices are supposed to have a copy of the form, as well as procedural information about the form, available to the public. Many county recorder offices already have copies of the form on their websites. See example here.

 

The Restrictive Covenant Modification form provides an avenue for an owner, prospective buyer, title company, escrow company, county recorder, real estate broker, real estate agent or other person to record a form redacting an unlawful discriminatory provision from a recorded governing document. There are procedural hurdles that would have to be cleared before a person or entity can record the form.  

 

Going forward, associations will, at a minimum, need to make the following changes to copies of recorded governing documents and deeds delivered to members: (1) update the cover page text to use the new language required by Government Code Section 12956.1(b)(1); and (2) add the new Restrictive Covenant Modification form and related procedural information. As for the Restrictive Covenant Modification form, hopefully each County will issue the appropriate form and information that associations within that County can use. 

 

One final note, it would be prudent to use the updated disclaimer language, and add the appropriate Restrictive Covenant Modification form and procedural information, to any recorded governing document or deed the association delivers or provides to anyone. This would include PDF versions available from a website as well as copies that the manager or a Board member might attach to an e-mail.

Questions? Current clients with questions or concerns about these new statutory requirements may reach out to a Fiore Racobs & Powers attorney. 


Associations who are not currently working with us, please contact Manager of Client Relations Diane Weissberg at 1-877-31FIORE or by e-mail at dweissberg@fiorelaw.com for assistance. 

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