2025 Mid-Session Legislative Update
Apr 14, 2025
Leading the Way: CAI-CLAC 2025 Advocacy Week and Hot Bills
Recently updated June 2025.
The CAI California Legislative Action Committee (CAI-CLAC) wrapped up their annual Advocacy Week in Sacramento on April 22-24, 2025. Now that the second half of legislative session is in full swing and the bill introduction deadline has passed, the Advocacy team has pulled together a list of updates on the “hot bills” and positions for our managers, homeowner leaders, and business partners.
The number of bills that could negatively impact community associations continues to grow, and we are actively monitoring bills as they move through the legislature.
Proposed California Legislation
Homeowner Association Accountability - AB 21 (DeMaio)
This bill proposes an overhaul of the meeting procedures and board oversight over the management of common interest developments (CIDs) and homeowners' associations (HOAs).
The Legislature is responding to recent court cases that impacted how boards could conduct business at meetings, and what types of communications and gatherings would meet the definition of a meeting.
The bill was defeated in the Assembly Housing Committee. The bill will be eligible for a motion to move out of committee in January 2026, but will not move this year.
FAIR Plan Policy Renewals Bill Overview - AB 69 (Calderon)
Currently, the FAIR Plan acts as a policy of last resort when homeowners are unable to obtain coverage through voluntary market insurance companies. This bill would focus on the renewal policies of the California FAIR Plan, which provides basic property insurance to homeowners who are unable to obtain coverage through the traditional insurance market.
CAI-CLAC and insurance professionals have been working with the Department of Insurance to offer changes to reflect specific challenges in providing coverage through existing California requirements. This is one way in which California can make it easier to allow owners to find policies and protect their communities. This bill has been referred to Committee on Insurance. CAI-CLAC is working in support of this bill.
This bill passed the Assembly on June 5, 2025, and is currently with the Senate for review.
CID Real Estate Broker License - AB 739 (Jackson)
This proposed legislation would require that managers of a Common Interest Development (CID) or Homeowner Association (HOA) hold a real estate broker license issued by the state.
The legislature is responding to concerns over manager qualifications and the ability to ensure accountability with respect to community funds. While other states have some form of manager certification, CAI-CLAC is already prepared to highlight specific challenges in requiring a broker license for CID managers.
This bill was defeated in the Assembly. The bill will be eligible for a motion to move out of committee in January 2026, but will not move this year.
Net Energy Metering - AB 942 (Calderon)
This proposed legislation would have reduced the contract for Net Energy Metering rates for those associations that installed solar from 20 years to 10 years.
This section of the bill was deleted, so CAI-CLAC will not be taking an active position on it in its current form.
Heat Pump - SB 282 (Weiner)
This proposed legislation would void any CC&R that prohibits the installation of an electric heat pump.
This bill was held in the Senate Appropriations Committee and will not move this session.
Reconstruction of Structures - SB 625 (Democrat Caucus)
This bill seeks to address potential issues faced by homeowners trying to rebuild after a natural disaster.
Existing law allows association to impact and approve external alterations or modifications to housing within a community. This bill would transfer much of the oversight and approval process of building/re-building away from associations and community leaders.
CAI-CLAC has reported that it is close to reaching an agreement on the bill, which will limit the timelines to only those circumstances created by defined natural disasters.
Streamlined Approvals - SB 677 (Wiener)
The proposed legislation seeks to prevent homeowner associations from imposing or enforcing provisions in the CC&Rs that prohibit or unreasonably restrict housing developments or urban lot splits on single-family zoned districts statewide.
The bill was defeated in the Senate Housing Committee. The bill will be eligible for a motion to move out of committee in January 2026, but will not move this year.
Capped Fines and Penalties - SB 681 (Wahab)
This bill is intended to address housing affordability issues and covers multiple topics. The main interest and opposition from CAI-CLAC is regarding the language that seeks to cap Association fines at $100.
The author and others agree that a $100 cap is not realistic, but continues to push for some limit on Association authority to impose penalties. CAI-CLAC is pushing to allow each community to institute reasonable penalties, which depend on their community needs and circumstances. We will need to continue to monitor this bill to ensure the unenforceable caps are removed.
EV Charging Stations - SB 770 (Allen)
Current law includes a requirement that homeowners be personally responsible for insurance on their Electric Vehicle Charging Station.
This proposed bill would delete the requirement for a homeowner that installs an EV charger in the association’s common area to obtain a certificate of insurance that names the association as an additional insured.
CAI-CLAC has met with the Senator to explain that every California insurer agrees to provide the coverage required by law. CAI-CLAC continues to work toward a compromise, but will be working to oppose this legislation in its current form.
How Can You Get Involved?
The CAI-CLAC 2025 Advocacy Week brought together those living in and working for community associations throughout the state. It’s a collective effort to help educate legislators, discuss specific bills and connect with your industry peers. We encourage you to consider joining this advocacy event in the future. It’s critical legislators here from their constituents and understand how these pending bills impact our communities.
Our team continues to support CAI-CLAC to ensure sensible legislation is introduced, and our clients can continue to govern themselves effectively. We look forward to meeting with state legislators and their staff to help make a positive impact for our clients.
CAI-CLAC frequently puts out calls to action asking for us to email or call our local legislators. As those come through, we’ll send those out and ask that you help us get your voice heard in Sacramento.
Stay Updated through CAI-CLAC and Our Social Media Channels
As the proposed laws continue to wind their way through the State legislature and ultimately to the Governor’s desk, get the latest developments on these bills including any amendments. Sign up for CAI-CLAC email updates to stay informed.
You can also follow us on LinkedIn, Facebook, Instagram, and X for updates on legislative news, resources, event updates, and legislative action.
