Readers: Various HOA bills passed the California Legislature, were approved by Gov. Jerry Brown and will become law in 2019. Future columns will provide more detailed discussions of these new laws.
September 30 was the last day for Gov. Jerry Brown to sign or veto bills passed by the state legislature in 2018. Many bills affecting HOAs were signed, and two were vetoed. Here’s a rundown:
SB 261: This bill, signed by the governor on Sept. 27, amends Civil Code 4040 to allow homeowners to use email to request the HOA send communications, also via email, to the homeowner, and amends Civil 4360 to require 28 days instead of the current 30-day notice to homeowners for proposed rule changes.
SB 721: SB 721, with HOAs exempted, requires multilevel residential properties to conduct inspections of balconies and other elevated elements every six years. Signed into law Sept. 17, the final version of the bill exempted HOAs from its requirements.
SB 1016: Signed on Sept. 13, this adds Section 4745.1 to the Civil Code, protecting the installation of “time of usage” meters for electric vehicle charging stations. HOAs may impose reasonable requirements on the requesting owner.
AB 2912: Requires boards to review the HOA financials monthly instead of the current quarterly requirement. The new law, approved by the governor Sept. 14, requires all HOAs to have fidelity (dishonesty) insurance in place. It also requires documentation of board authority for expenditures over $10,000 or 5 percent of the HOA’s budget, whichever is lower.
SB 1128 and 1265: Two of the most troubling bills for California HOAs this year were Senate Bills 1128 and 1265. Both were vetoed.
SB 1265 would have made it much harder for common interest development associations to preserve elections if technical errors occurred and would have outlawed the ability of association members to adopt reasonable board eligibility standards. SB 1128 originally made some technical and sensible changes to the Davis-Stirling Act, but late in the legislative process it was amended, adding the harmful content of SB 1265.
Gov. Brown on Sunday, Sept. 30, used identical veto messages, stating in part that each bill “takes a one-size-fits-all approach, but not all homeowner associations are alike.”
“If changes to an election process are needed, they should be resolved by the members of that specific community,” Brown added.
The election procedures from Civil Code 5100-5135 are complicated, applying to all HOAs regardless of size, and necessitate guidance from experienced and qualified managers and legal counsel. HOAs still should consider adopting reasonable board eligibility requirements to make sure associations are governed by the best available volunteers.
A few other technical bills were passed correcting typos, addressing housing density requirements, and timeshares, but will not affect most associations already in operation.
To review California law or legislation, the official site is leginfo.legislature.ca.gov. Click on “California Law,” then “Civil Code” to review the Davis-Stirling Act, which begins at Section 4000. Click on “Bill Information” to review current or past bills.
Although many law firms and organizations have websites offering law and legislation references, this is the official California web site.
Kelly G. Richardson, Esq. is a Fellow of the College of Community Association Lawyers and Senior Partner of Richardson Ober PC, a California law firm known for community association advice. Submit potential column questions to Kelly@Richardsonober.com.