Commercial and Industrial CID Updates
As with residential and mixed-used communities, commercial and industrial common interest developments benefit from periodic governing document updates.
However, updates are now particularly important for business communities. This is because commercial and industrial developments are no longer subject to the Davis-Stirling Act. Instead, they are now controlled by California's Commercial and Industrial Common Interest Development Act (Civil Code §§ 6500-6876).
The Commercial Act eliminated many of the Davis-Stirling Act’s costly and time-consuming operating requirements, including the complex secret ballot voting process, the Open Meeting Act, the detailed financial and policy disclosure requirements, the due process checks on association power to pursue delinquencies, impose discipline, and enforce architectural controls, and more.
The purpose of this deregulation was to free business boards and owners from operating practices designed to protect less-sophisticated residential communities. The effect is that commercial and industrial developments can significantly streamline operations, which can reduce costs, increase profits, and enhance marketability.
Unfortunately, many commercial and industrial developments continue to operate using Davis-Stirling Act governing documents. These documents are legally obsolete and force business boards and owners to continue following costly and time-consuming residential operating practices. For such developments, an update is the only way to take full advantage of the Commercial Act's beneficial deregulation.
However, updates are now particularly important for business communities. This is because commercial and industrial developments are no longer subject to the Davis-Stirling Act. Instead, they are now controlled by California's Commercial and Industrial Common Interest Development Act (Civil Code §§ 6500-6876).
The Commercial Act eliminated many of the Davis-Stirling Act’s costly and time-consuming operating requirements, including the complex secret ballot voting process, the Open Meeting Act, the detailed financial and policy disclosure requirements, the due process checks on association power to pursue delinquencies, impose discipline, and enforce architectural controls, and more.
The purpose of this deregulation was to free business boards and owners from operating practices designed to protect less-sophisticated residential communities. The effect is that commercial and industrial developments can significantly streamline operations, which can reduce costs, increase profits, and enhance marketability.
Unfortunately, many commercial and industrial developments continue to operate using Davis-Stirling Act governing documents. These documents are legally obsolete and force business boards and owners to continue following costly and time-consuming residential operating practices. For such developments, an update is the only way to take full advantage of the Commercial Act's beneficial deregulation.