This bill placed unprecedented power in the hands of boards of directors, because they could force nonjudicial foreclosure on a homeowner for as little as $5, and not have to worry about paying off the first deed of trust. Association lawyers, who stood to gain significant fees from this bill, were the ones who drafted it for her. Lawyers take an oath to uphold the State and Federal Constitution and public trust and it is a conflict of interest for them to propose and misrepresent legislation designed to enrich themselves at the public's expense.

Furthermore, if the bill had passed, many mortgage lenders would have ceased making loans for homes in homeowner associations.

The lobbyists staged a classic lobbying effort. Skip Daum, the CAI lobbyist, sent out letters to CAI members that this bill would force bankers to pay unpaid assessment dues. When CAI members told this to homeowners, many homeowners unwittingly flooded legislators with calls to pass the bill.

The management companies also sent this misinformtion in letters enclosed with the monthly dues statements of homeowners reminding them to call their legislators to vote for AB1545. CAI vendors also had their employees write letters to legislators on their own personal letterhead urging passage of AB1545.

CAI lobbyists kept the drum beat rolling with a luncheon for Julie Bornstein, where they presented her with a plaque, and then proceeded to canvas each legislators office, leaving mugs and other paraphernalia. The lobbyists told legislators that they were concerned homeowners, whereas in reality they were there because of their business with homeowner associations. On the following day, they packed the Assembly hearing room.

The opposition consisted of homeowners and bankers. After a two year battle, Gov. Wilson vetoed the bill - not out of concern for homeowners, but on behalf of the bankers.

Ms. Bornstein is now setting up a list of industry names for the governor to appoint to an advisory committee for the Department of Real Estate (DRE).

She has refused to provide any information on this either to the media or the public. She has even refused to provide information about the person or persons in the governor's office to whom the public can provide information. Homeowners are deeply concerned because in the past, public members were appointed who, in reality, were industry lobbyists, not people committed to the welfare of homeowners.

These industry lobbyists depend for their livelihood on 5 interlocking sources of revenue.

1. The money in homeowner association reserve accounts.

2. The equity which homeowners have in their homes.

3. Fining and suing homeowners.

4. Suing builders, contractors and tradesmen.

5. The multi-million dollar insurance policies which they, through their lobbying efforts, have forced homeowner associations to buy.

(Note: Homeowners report that this is a major area of insurance fraud. For example, management companies file fraudulent liens and foreclosures on homes. The homeowner sues to protect his or her home. The board then asks the insurance company to defend it. The lawyers milk the insurance policies and the homeowner.)

Over the last two decades, these lobbyists have cascaded through the legislative halls of Sacramento, spreading the myth that they represent homeowners, and misrepresenting the true nature of the bills which they promote. These lobbyists have inflicted far reaching damage on homeowners, and have got wealthy in the process.

Commissions, committees and task forces are always lopsidedly composed of lobbyists. This has been achieved by creating an iron curtain of silence over the appointment process.

Julie Bornstein is continuing this process. Hence, homeowners view her recent appointment by Gov. Davis with foreboding. She is continuing the dominance of special interest lobbyists by cloaking the entire appointment process in silence.

Therefore, homeowners request all legislators to ask the governor to ensure that genuine homeowner representatives be appointed to the Department of Real Estate Advisory Committee so public trust is not violated and tax money is not used to injure the social welfare and housing of the public.

They ask that governance be of the people, by the people, for the people, not of the lobbyists, by the lobbyists, for the lobbyists,

Your confirmation that you have sent such a request to the governor can be made by email or mail to the above address. Thank you.