Five Bad Pending HOA Bills

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

Here are five pending bills that would not help HOAs:

SB 1238 would create many problems. It proposes to add to Civil Code 2295 a legally incorrect statement that HOA managers are fiduciaries to the HOA BOARDS and members, since managers are fiduciaries to the ASSOCIATION, not to boards or individual members.

The bill also adds three additional categories to the disclosures currently required under Civil Code section 4525 for prospective buyers. The three new items would contain specifics regarding 1. the number of “exterior elevated elements” in the association and how many involve “imminent repairs;” 2. those requiring non-imminent repair, and 3. any requiring over $10,000 of repairs. Balconies are only one of the three “elevated exterior elements” in most condominium buildings, so it’s unclear why the bill omits stairs and elevated bridges.

Additionally, the bill would add several provisions prohibiting HOAs from spending reserve funds on litigation or threatened litigation with members or relatives of member. This provision would deny associations the right to temporarily borrow from reserves to prosecute OR DEFEND lawsuits with HOA members. The reason for singling out members’ relatives for protection is unclear.

Last, the bill would greatly expand the “elevated exterior elements” disclosures, requiring report preparers to make far more detailed judgments on building components than they may be willing to make.

AB 1184, the “Homeowner Association Accountability and Transparency Act of 2026,” proposes significant changes to existing law. It would disallow board email deliberations; require specific litigation disclosures be in Annual Budget Reports; require case names be identified in executive session minutes in which the case was discussed; require open session board meeting recordings to be available to members; require specific information items be contained in board minutes; require election results announcements state each elected director’s term; and ban charges for unredacted documents requested and sent electronically to members. The bill makes many technical changes to board governance which volunteer directors will likely miss. 

AB 739 proposes to heighten scrutiny of management fees by creating a new Civil Code 5378, requiring HOAs to email to requesting members a list of management fees. The bill would also add to the board’s monthly financial reviews an annual review of the management fees charged to the HOA. This bill if passed will further spotlight extra charges management companies use to make ends meet and make the management sector’s current revenue model much more difficult. 

AB1684 would add another “protected use” by creating Civil Code 4737, which would prohibit HOAs from prohibiting or restricting installation, upgrade, replacement, or use of cooling systems. The bill would allow HOAs to force removal of illegal installations, but not to “restrict” installations. This could create a major problem if HOAs cannot impose any reasonable restrictions (allowed regarding solar installations and electric vehicle charging stations). Condominium associations would be unable to stop owners from installing systems that could harm the building or adversely affect neighbors.

SB 222 would create a new “protected use” by creating Civil Code 4737, which would prohibit HOAs from banning heat pumps or from completely banning replacement of carbon burning appliances with electric appliances. I haven’t heard of HOAs banning heat pumps or replacement of carbon (gas/wood/oil) heating systems with electric systems, so this may not affect most HOAs.

Pending bills - www.leginfo.legislature.ca.gov