Legislation of Interest to Homeowner Associations

This is an active time in Sacramento, as literally thousands of bills (over 2,300 at last count) have been proposed this year for possible new or changed laws in California. Many of them will, if passed, affect common interest developments (the legal term for “homeowner association”). Here are four that might be worth following:

AB 746

Assembly Member Levine, from San Rafael, introduced Assembly Bill (“AB”) 746. This bill would outlaw smoking in multi-family buildings, except in designated smoking areas. Violators would first be warned, and fined for second and subsequent offenses. The ban would not commence until 2015, allowing landlords and HOAs to prepare.

A growing number of cities have adopted bans on smoking in multi-family buildings. This bill, if it became law, would take that ban statewide. In its present form, it would not put any responsibility on HOA boards.

SB 752

Senate Bill (“SB”) 752 is a major bill, creating a separate Common Interest Development Act for non-residential associations. Drafted by the California Law Revision Commission, it will likely become law, and then non-residential associations will have a separate body of law applying to them. Mixed use projects, in which some units are residential while others are commercial, would still look to the Davis-Stirling Act.

AB 968

Associations currently are required to follow very specific election procedures, not matter how large or small. Those procedures are often ignored or unknown by smaller associations. AB 968 proposes to simplify election procedures for associations of 15 members or less. This would allow the very small association to dispense with Inspectors of Election and ballots sealed in two different envelopes. Instead, it would simply require the ballots be secret, and that elections be held on 30 days advance notice.

AB 968 is very much needed to address the reality that the smallest associations, most of which do not have lawyers or even managers, do not need the same election procedures as the larger associations

AB 1360

AB 1360, authored by Assembly Housing Chair Norma Torres and sponsored by the Community Associations Institute, would permit associations to give members the choice to vote electronically. The law currently does not permit homeowner associations to vote on the internet, even though all other non-profit corporations may do so. This is because the election procedures currently found at Civil Code Section 1363.03 require that votes only be on written ballots.

This bill, if it became law, would allow homeowner associations to catch up with other non-profits, and allow members to vote on the internet. It is interesting that most of us buy airline tickets, shop and communicate on the internet, yet a homeowner cannot vote for board candidates. Mid-sized and larger associations should benefit greatly through increased participation and cost savings.

Bills can be amended, and an idea that is great (or terrible) can be quite different two months from now, as it proceeds through the legislative process. If you think any of these bills are a good idea (or a bad one), let your local legislator know. Also, you can register your comments on any bill by visiting http://leginfo.legislature.ca.gov, click on “bill information,” and then click on “comments to author”.

For official information on any pending or past bill in Sacramento, or to review California statutes, visit www.leginfo.ca.gov. That is the only official web site for California law (including those which affect HOAs).

Written by Kelly G. Richardson

Kelly G. Richardson Esq., CCAL, is a Fellow of the College of Community Association Lawyers and a Partner of Richardson | Ober | DeNichilo LLP, a California law firm known for community association advice. Submit questions to [email protected]. Past columns at www.hoahomefront.com. All rights reserved®.