BREAKING NEWS- Helpful New Laws Coming For HOAs in 2025 – Part I

By Kelly G. Richardson, Esq. CCAL, HOA Homefront Column

Governor Newsom in the past few days has signed into law three bills helping HOAs and their residents: AB2159, AB2460, and SB900. This week’s column focuses upon the first. The other two new laws will be discussed next week. 

Assembly Bill 2159 adds a new section “i” to Civil Code Section 4105, which allows HOAs to conduct membership votes electronically. This corrects a longstanding discrimination in the law against HOAs, since other nonprofit corporations have for many years been allowed to have their members vote electronically. However, not all votes may be conducted electronically. Votes on special assessments or regular assessment increases must still be conducted using paper ballots and the double envelope process.

If a member opts out and requests a written ballot, the HOA must comply with the request, but members cannot wait until the last minute to do so. The statute says that HOA election rules must provide that members may change their voting method preference from electronic to paper ballots no later than the 90^th day before an election. This 90-day buffer gives the HOA plenty of time to set up the electronic voting and to mail any requested paper ballots.

HOAs with election rules allowing members to choose electronic voting (its unclear why any HOA would have paper balloting as the default but allow members to opt for electronic voting) must send electronic ballot information to those who choose electronic voting.

HOAs will now be required to maintain a voting list indicating which members vote electronically and which vote written ballots, and must also add to its Annual Policy Statement information regarding how to opt out of (or, if applicable, opt in to) electronic voting. The HOA must send notice to each member of their current voting method, the email address designated (if applicable), and notice of the choice, deadline, and method to opt out of electronic voting, at least 30 days before the deadline to opt out of electronic voting.

HOAs using electronic voting may not allow nomination of candidates from the floor. Other traditional elections using paper ballots may allow for nominations from the floor or for write-in candidates.

Members voting electronically must provide a valid email address to the HOA, and unless the CC&Rs already provide that members are deemed to have opted for e-mail, the member must agree to receiving electronic communications pursuant to Civil Code 4041. Otherwise, the electronic voting information must be sent by postal mail (which seems wasteful and inconsistent with the purpose of electronic voting). This new law gives further reason for HOAs to encourage members to opt in for electronic communication.

Electronic votes must be secret and irrevocable once cast, the same as written ballots, and electronic voting instructions must be communicated at least 30 days before votes are to be counted.

A new Civil Code Section 5110 (c)(4) provides the technical requirements for electronic voting, regarding the security of the system, authentication of member identity and separation of voter identity from the vote cast.

This long-overdue law allows HOAs to catch up with the rest of society in this electronic age. HOAs will need to update their election rules, but the statute’s guidance is fairly clear on the process changes HOAs need to make.