§ 1354 Civ.

  (a) The covenants and restrictions in the declaration shall be
enforceable equitable servitudes, unless unreasonable, and shall inure to
the benefit of and bind all owners of separate interests in the
development. Unless the declaration states otherwise, these servitudes
may be enforced by any owner of a separate interest or by the
association, or by both.

  (b) Unless the applicable time limitation for commencing the action
would run within 120 days, prior to the filing of a civil action by
either an association or an owner or a member of a common interest
development solely for declaratory relief or injunctive relief, or for
declaratory relief or injunctive relief in conjunction with a claim for
monetary damages, other than association assessments, not in excess of
five thousand dollars ($5,000), related to the enforcement of the
governing documents, the parties shall endeavor, as provided in this
subdivision, to submit their dispute to a form of alternative dispute
resolution such as mediation or arbitration. The form of alternative
dispute resolution chosen may be binding or nonbinding at the option of
the parties. Any party to such a dispute may initiate this process by
serving on another party to the dispute a Request for Resolution. The
Request for Resolution shall include (1) a brief description of the
dispute between the parties, (2) a request for alternative dispute
resolution, and (3) a notice that the party receiving the Request for
Resolution is required to respond thereto within 30 days of receipt or it
will be deemed rejected. Service of the Request for Resolution shall be
in the same manner as prescribed for service in a small claims action as
provided in Section 116.340 Civ. Proc. of the Code of Civil Procedure.
Parties receiving a Request for Resolution shall have 30 days following
service of the Request for Resolution to accept or reject alternative
dispute resolution and, if not accepted within the 30-day period by a
party, shall be deemed rejected by  that party. If alternative dispute
resolution is accepted by the party upon whom the Request for Resolution
is served, the alternative dispute resolution shall be completed within
90 days of receipt of the acceptance by the party initiating the Request
for Resolution, unless extended by written stipulation signed by both
parties. The costs of the alternative dispute resolution shall be borne by
the parties.

  (c) At the time of filing a civil action by either an association or an
owner or a member of a common interest development solely for declaratory
relief or injunctive relief, or for declaratory relief or injunctive
relief in conjunction with a claim for monetary damages not in excess of
five thousand dollars ($5,000), related to the enforcement of the
governing documents, the party filing the action shall file with the
complaint a certificate stating that alternative dispute resolution has
been completed in compliance with subdivision (b). The failure to file a
certificate as required by subdivision (b) shall be grounds for a
demurrer pursuant to Section 430.10 Civ. Proc. of the Code of Civil
Procedure or a motion to strike pursuant to Section 435 Civ. Proc. of the
Code of Civil Procedure unless the filing party certifies in writing that
one of the other parties to the dispute refused alternative dispute
resolution prior to the filing of the complaint, that preliminary or
temporary injunctive relief is necessary, or that alternative dispute
resolution is not required by subdivision (b), because the limitation
period for bringing the action would have run within the 120-day period
next following the filing of the action, or the court finds that
dismissal of the action for failure to comply with subdivision (b) would
result in substantial prejudice to one of the parties.

  (d) Once a civil action specified in subdivision (a) to enforce the
governing documents has been filed by either an association or an owner
or member of a common interest development, upon written stipulation of
the parties the matter may be referred to alternative dispute resolution
and stayed. The costs of the alternative dispute resolution shall be
borne by the parties. During this referral, the action shall not be
subject to the rules implementing subdivision (c) of Section 68603 Gov't
of the Government Code.

  (e) The requirements of subdivisions (b) and (c) shall not apply
to the filing of a cross-complaint.

  (f) In any action specified in subdivision (a) to enforce the governing
documents, the prevailing party shall be awarded reasonable attorney's
fees and costs. Upon motion by any party for attorney's fees and costs to
be awarded to the prevailing party in these actions, the court, in
determining the amount of the award, may consider a party's refusal to
participate in alternative dispute resolution prior to the filing of the
action.

  (g) Unless consented to by both parties to alternative dispute
resolution that is initiated by a Request for Resolution under
subdivision (b), evidence of anything said or of admissions made in the
course of the alternative dispute resolution process shall not be
admissible in evidence, and testimony or disclosure of such a statement
or admission may not be compelled, in any civil action in which, pursuant
to law, testimony can be compelled to be given.

  (h) Unless consented to by both parties to alternative dispute
resolution that is initiated by a Request for Resolution under
subdivision (b), documents prepared for the purpose or in the course of,
or pursuant to, the alternative dispute resolution shall not be
admissible in evidence, and disclosure of these documents may not be
compelled, in any civil action in which, pursuant to law, testimony can
be compelled to be given.

  (i) Members of the association shall annually be provided a summary of
the provisions of this section, which specifically references this
section. The summary shall include the following language:

  "Failure by any member of the association to comply with the prefiling
requirements of Section 1354 Civ. of the Civil Code may result in the
loss of your rights to sue the association or another member of the
association regarding enforcement of the governing documents."

   The summary shall be provided either at the time the pro forma
budget required by Section 1365 Civ. is distributed or in the manner
specified in Section 5016 Corp. of the Corporations Code.

  (j) Any Request for Resolution sent to the owner of a separate
interest pursuant to subdivision (b) shall include a copy of this
section.

(Amended by Stats. 1996, Ch. 1101, § 1. Effective January 1,
1997.)