Senate Bill 323 Updates
Effective January 1st, Senate Bill 323 ("SB 323") dramatically changed HOA election law, including the laws controlling candidate and director qualifications, election rules, election timelines, pre-election notices, inspectors, recordkeeping, and more. I discuss SB 323 in detail on my blog (see New Laws).
SB 323’s most significant change is in relation to enforcement actions. Prior to SB 323, if a member sued to challenge election results, courts had discretion as to whether to let the results stand. This typically meant that courts would disregard election law violations unless the challenger could show real harm.
SB 323 now requires courts to void elections unless associations can show that their non-compliance did not affect the results. This means that boards, management, and inspectors must now conduct legally flawless SB 323 compliant elections or face the risk of voided results, attorney's fees, and civil penalties.
My SB 323 update service is designed to help your community conduct elections with confidence. For one low flat fee, I provide every document and service necessary to transition to full SB 323 compliance. This includes new and amended governing documents, step-by-step instructions for each type of election, and every new election form required by SB 323.
At a minimum, SB 323 requires all associations to revise their bylaws. Unfortunately, given the age of most community’s governing documents, it is typically difficult if not impossible to perform a bylaw amendment. Accordingly, my SB 323 update service also includes all-new bylaws and a CC&R amendment, if necessary, as well as step-by-step instructions and forms for conducting your update vote.
If your current CC&Rs or bylaws are more than 10 years old, however, the Board may wish to consider my complete update service instead. That service includes this SB 323 update service in full, as well as all-new CC&Rs and a maintenance matrix. A complete update ensures that all of your governing documents are legally current and permits the Board to revise your community’s use restrictions, maintenance allocations, architectural controls, and more. Given the expense and effort of conducting a member vote to adopt new bylaws, many communities find a complete update a better investment.
If you have questions about SB 323, the update process, or my services, please review my blog and 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.