AB 968 changes California Civil Code Section 4775 beginning January 1st, 2017.   This bill basically states that if an associations CC&R’s and Governing Documents are not clear on who is responsible for exclusive use common areas that the responsibility will fall on the association.  An example of an exclusive use common area could be a unit balcony.  Resurfacing the balcony waterproofing could either be the responsibility of the association or the individual unit owner.  It depends on what the governing documents say.

Unfortunately many associations have governing documents that are old and/or very vague on exclusive use common areas.  What AB 968 says is that if the governing documents are not specific that the expense to repair and/or replace will fall on the association.

If these exclusive use common areas are not included in your reserve study this could have a major impact on your reserve expenses and your percent funded.  Every association should consult with their attorney and make sure their governing documents are up to date and specific on who is responsible for these exclusive use common areas.  Having a maintenance matrix in place is always a good idea.  Associations need to also be sure that all common areas that the association is responsible for are included in there reserve study.

[The following is current and effective until January 1, 2017]

4775. (a) Unless otherwise provided in the declaration of a common interest development, the association is responsible for repairing, replacing, or maintaining the common area, other than exclusive use common area, and the owner of each separate interest is responsible for maintaining that separate interest and any exclusive use common area appurtenant to the separate interest.

(b) The costs of temporary relocation during the repair and maintenance of the areas within the responsibility of the association shall be borne by the owner of the separate interest affected.

[The following will be effective January 1, 2017.]

4775. (a) (1) Except as provided in paragraph (3), unless otherwise provided in the declaration of a common interest development, the association is responsible for repairing, replacing, and maintaining the common area.

(2) Unless otherwise provided in the declaration of a common interest development, the owner of each separate interest is responsible for repairing, replacing, and maintaining that separate interest.

(3) Unless otherwise provided in the declaration of a common interest development, the owner of each separate interest is responsible for maintaining the exclusive use common area appurtenant to that separate interest and the association is responsible for repairing and replacing the exclusive use common area.

(b) The costs of temporary relocation during the repair and maintenance of the areas within the responsibility of the association shall be borne by the owner of the separate interest affected.