Governor Newsom Signs AB 2692 Into Law

Governor Newsom signs AB 2692 Into law to facilitate rebuilding after the Eaton Canyon and Palisades Fires.

Governor Newsom signed into law Assembly Bill 2692, as an urgency statute to prevent displacement and facilitate rebuilding of community associations damaged or destroyed by the devastating Los Angeles area fires if January 2025. 

AB 2692 adds Civil Code Section 4276 to the Davis-Stirling Act,  establishing a process for reinstating CC&Rs that have terminated based on the declaration’s provisions, and were not renewed or extended by a vote of the membership as required. 

Without valid, operable CC&Rs in place, Common Interest Development communities face obstacles to rebuilding.  Such reported obstacles included inability to access insurance funds or obtain Small Business Administration disaster relief. This law, which goes into effect immediately as an urgency statute, lessens the burden placed upon community associations providing a path toward recovery so desperately needed.

For those communities whose CC&Rs have expired, Civil Code Section 4276 provides for reinstatement of terminated CC&Rs upon approval of the same percentage of members that was initially required in the CC&Rs for extending the term.  If the CC&Rs do not specify the approval percentage, a majority of the members must approve the reinstatement.

Upon certification of member approval and recordation, the CC&Rs are reinstated for the lesser of the number of years in the initial CC&Rs term, or 20 years. 

This urgency legislation remains in effect until January 1, 2028.