California Bill Introduced Addressing Personal Service of Process Requirement By Owners Associations

Posted on April 7, 2014 Posted By: unitedtrusteesCategories: Legislative Update

Sen. Vidak

HOA trustees have long struggled with the perennial problem of personal service of process when the owner is deceased, evading, or cannot be otherwise located. Files must be closed or will languish (sometimes for years) as trustees continue attempts to locate and serve the owner with the board’s decision to foreclose and the Notice of Default.

In an effort to address this issue UTA has worked closely with California Senator Andy Vidak (R-16) who has introduced legislation, SB 1026, that aims to correct both the Davis-Stirling Act and the Commercial & Industrial Common Interest Development Act, by allowing a method to effectuate service of process in these instances. As introduced, SB 1026 would allow an owners association, after reasonable diligence, to serve an owner or owner’s representative with the board’s decision to foreclose and the Notice of Default by posting copies of the notices on the subject property and mailing a copy of the notice. The bill also requires recordation of a declaration of diligence, besides posting and mailing.

The bill was developed with the input of UTA Member Allied Trustee Services and UTA’s California Lobbyist, Mike Belote. Those who participated in this year’s Lobby Afternoon helped to educate Senators, Assembly members and their staff on this issue, and the proposal was well-received. UTA members, especially HOA trustees, are encouraged to lend their voices in support of this bill which, if passed, will allow many stale foreclosures to move forward.

If you would like further information regarding the issue, please contact Albert Garcia of Allied Trustee Services.

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