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AARP

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March 16,2011

The Honorablc Noreen Eva:r$, Chair

Senate ludiciary Committee State Capitol Building, Room Saoramento, CA 95814

2i87 (Corbettl SUPPORT

Re:

SB 5Sl - Ilomeowners'Associationsl De[q,quencies

Dear Senator Evans,

On behalf of AARP's 3.2 million members in Califomia, we write to support SB 561 by Senator Elle,tr Corbett. Thiq bill effectively close,s a number of loopholes flnd abuses that ofterr put older homeowners at risfr. Research bythe AARP Policy Institrite in 2006 estimated that nationwide. 46% of onmers in single family homeowner associations (HOA) are over the age of 50 as are 56% of

owller$ in condominium/coop communities. Often times HOA's contract with debt collectors are skirting the law hy requinng papnents by homeowners to first be applied to their fees - not withstanding nrrent law.
SB 561 addresses this problern and the risk that hsmeowners face by these questionable business p'raotices. Its provisions provide for the following:

' . r r

Assessment collection laws apply to associations and any HOA vendorizubcontractor engaged in assessment collection

The application of honreowner payments is govemed by existing law" spccifically Code 1367(a), i.e. assessfients must be paid down first JJre consumer protections of this statute are rights that cannot be waived. Contracts attempting to void these rights are themselves null and void.

Civil

We urge you to support SB 561 (Corbett) because it proteots older Californians who are put at risk of losing their homes through the unscrupulous business practices of debt collectors. Debt collectors can hold the home hostage as a means of foruing individuals to sign away their consumer prctections undcr existing law-

If you have any questions about our position on this

Respectfirlly"

measure, please coutact Michael Richatd,

Associate State Director, Advocacy at (916) 556-3016.

I ov4
David Pacheco AARP Calif,ornia State President Tom Porter AARP California State Director

cc:

Senator Corbett

1415 L Street" Sulte 960 s.cfcmcnho. cA 95814 916.556"3021 9164{6-12Z3 lcx Lcc Hemmond, Presldent Bsrry Rsnd, Hreculive Dlrcctor www.aarp.org