Commercial and Industrial Updates
Commercial and industrial common interest developments are communities in which all the units or lots are used for business purposes. As with residential and mixed-use communities, commercial developments benefit from periodic governing document updates.
However, updates are now particularly important for many commercial and industrial communities. Effective January 1, 2014, commercial and industrial developments are no longer subject to the Davis-Stirling Act. While the Davis-Stirling Act continues to control residential and mixed-use communities, commercial and industrial developments are now governed by the new Commercial and Industrial Common Interest Development Act (Civil Code § 6500 et seq.). Please note that commercial and industrial developments are not subject to Senate Bill 323 ("SB 323").
The Commercial Act eliminated many of the Davis-Stirling Act’s cumbersome operating requirements, including the extensive checks on association power to pursue delinquencies, impose discipline, and enforce architectural controls, the financial and policy disclosure requirements, the complex secret ballot process, the Open Meeting Act, and more.
The purpose of this deregulation was to free business communities from operating practices designed to protect residential homeowners and homebuyers, who are typically less sophisticated. The effect is that commercial and industrial associations may now significantly streamline their operations, which can reduce costs, increase profits, and enhance marketability.
Unfortunately, many commercial and industrial developments continue to operate using pre-2014 governing documents drafted to reflect the Davis-Stirling Act. These communities are thus forced to continue following costly, time-consuming, and unnecessary residential operating practices. If your development features pre-2014 governing documents, the only way to take full advantage of the Commercial Act’s beneficial deregulation is to perform an update.
My update service and the update process for commercial and industrial developments is largely the same as a residential community. Nevertheless, business communities can face unique management and governance challenges, including those posed by the Commercial Act's deregulation. My comprehensive update questionnaire provides extensive suggestions regarding modern business best practices your association may wish to adopt and permits your board to provide detailed feedback regarding your community's unique for-profit needs. As with residential and mixed-use updates, I typically offer the lowest fee, most comprehensive suite of services, and fastest draft turnaround times.
If you have questions about the update process or my services, please review my frequently asked questions or email me at firstname.lastname@example.org to request a consultation. Otherwise, please contact me today to request an update proposal.