More Bills of Interest to Help (or Harm?) HOAs in 2018

Last week’s column discussed SB 1265, a terrible bill for HOAs. There are several other bills which, if passed, would make major and minor changes to HOAs in 2019, and they are a mixed bag.

SB 1016

Senate Bill (“SB”)1016, authored by Senator Allen, would add Civil Code 4745.1 to the current 4745 (regarding electric vehicle charging stations). Civil 4745.1 would require associations to cooperate with owners who wish to install “time of use” (“TOU”) meters on their electric vehicle charging stations. So long as members meet the requirements, encouraging electric vehicles is a good thing, and SB 1016 helps that good thing in HOAs. SB 1016 was approved by the Senate, and is pending in the Assembly.

SB 1128

SB 1128, authored by Senator Roth from Northern Riverside County, would reduce wasted motion in HOA elections. If passed, this bill would create Civil Code 5100(g), which would allow an association to declare candidates elected by acclamation if, after the period for nominations has closed, there are no more candidates than openings on the board. The bill would also allow homeowners to elect to notify the HOA via email (instead of a “hard” copy) that the homeowner wishes to receive notifications via email rather than postal mail. The bill passed the Senate Transportation and Housing Committee and is awaiting hearing by the Senate Judiciary Committee. The bill is practical, a quality sorely needed in the HOA governance world.

SB 721

Senate Bill 721 is a major bill applying to both apartment and condominium buildings. SB 721 arises from the 2015 tragedy in Berkeley in which 6 persons died and 7 others were injured when a 5th floor apartment balcony collapsed. The balcony was alleged to have been in need of repairs. The bill is co-authored by Senators Hill (San Francisco) and Skinner (East San Francisco Bay) and includes adding a new Section 4776 to the Davis-Stirling Act. The new section would require associations to have an architect, civil engineer, structural engineer, or independent certified building inspector inspect balconies, elevated walkways, railings and any other “elevated exterior element” once every six years, with the first inspection completed no later than January 1, 2024. The inspection must be followed by a detailed report within 45 days of the inspection, and the inspector must inspect at least 15% of each elevated exterior element. As to HOAs, the new law would only apply to community apartments, stock cooperatives and condominiums, and not to planned developments.

A number of questions remain unanswered about this bill, despite its laudable goal. Will associations and apartment building owners be able to find qualified professionals who will perform these inspections? Will the inspectors be held liable if they miss something? Will these inspectors be able to procure insurance to cover the risk of negligent inspections? If an apartment owner or HOA board obtains this inspection of 15% of its balconies, is that a shield against liability if one of the 85% other elevated exterior elements fail? SB 721 was approved by the Senate and is currently pending in the Assembly.

If you have opinions about any or all of these bills, let your representatives know. To review any bill and its status in Sacramento, or to look up any California statute, visit www.leginfo.legislature.ca.gov

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®.