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AB 502: an acclamation bill I can’t cheer for

8/5/2024

In her 1996 hit single “Ironic,” Canadian pop star Alanis Morissette bemoans traffic jams when you’re already late, free rides when you’ve already paid, and a laundry-list of other unfortunate events, none of which are actually ironic. Thus - ironically - the only irony in her song is its title.

In its Assembly Bill 502, the California Legislature hits a similar note. Ostensibly introduced to permit election by acclamation for all HOAs, AB 502’s laundry-list of legal malapropisms will reduce the practice for most, bar it for some, and add yet more cost and complexity to board elections.

SB 323: which ship is the member-ship?

7/15/2024

Senate Bill 323 added new Civil Code section 5105(b), which provides that “[a]n association shall disqualify a person from a nomination as a candidate for not being a member of the association at the time of the nomination.”

An exception to this requirement is provided by 5105(b)(2), which provides that “[i]f title to a separate interest parcel is held by a legal entity that is not a natural person, the governing authority of that legal entity shall have the power to appoint a natural person to be a member for purposes of this article.”

AB 3182: another disaster for California's HOAs

6/10/2024

Like Senate Bill 323, Assembly Bill 3182 is a disaster for California’s HOAs. AB 3182:

voids CC&R and other governing document provisions that require minimum rental terms of longer than 30 days, such as provisions that require minimum six month or one year leases;
voids provisions that cap rentals at less than 25% of the homes, with accessory and junior accessory dwelling units exempt from higher caps;
voids provisions that prohibit new owners from leasing;
voids provisions that “unreasonably restrict” renting or leasing, which could include any provision that interferes with an owner’s ability to exercise those rights; and
requires HOAs to amend their CC&Rs and other governing documents to remove voided provisions ASAP or face damages claims and civil penalties of up to $1,000.

SB 323: a cautious new timeline for director elections

5/13/2024

Prior to Senate Bill 323, a typical HOA board election would require 60-75 days to complete. SB 323 extends that timeline to at least 105 days - more like 120 in practice - and imposes complex new notice requirements on associations.

The following represents a prudent 130-day timeline for conducing SB 323 compliant board elections. This timeline is longer than that required by law, but its length ensures sufficient time for boards to understand SB 323's complex new requirements, select workable dates, retain a qualified inspector, and prepare SB 323's multiple new forms.

SB 432: who maintains custody of HOA election materials?

4/22/2024

Section 5200(c) of the Davis-Stirling Act defines “association election materials” as the “returned ballots, signed voter envelopes, [voter list], proxies, and … candidate registration list.”

Section 5125 provides that association election materials “shall at all times be in the custody of the inspector … or at a location designated by the inspector … until after the tabulation of the vote, and until the time allowed by Section 5145 for challenging the election has expired, at which time custody shall be transferred to the association.” Section 5145 requires election challenges to be brought within one year, so Section 5125 is generally interpreted as requiring inspectors to maintain custody for one year then transfer the association election materials to the HOA.

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AB 502: an acclamation bill I can’t cheer for

SB 323: which ship is the member-ship?

AB 3182: another disaster for California's HOAs

SB 323: a cautious new timeline for director elections

SB 432: who maintains custody of HOA election materials?

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