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2021 NEW LAWS
TERMINOLOGY Statutory Law. Bills (proposed changes to the law) are introduced into the legislature in Sacramento. Once a bill has been approved by both houses of the legislature (the Assembly and Senate) and signed by the Governor, a bill becomes a statute or "statutorylaw."
DAVIS-STIRLING ACT (2014) The 2014 Restated Davis-Stirling Act for residential common interest developments and mixed-use CIDs. HOA RESERVE ACCOUNTS Associations must set up bank accounts that are separate and distinct from their managing agent's funds and must separate their operating and reserve funds into separate accounts. A "Reserve Account" refers to money the association has set aside to defray the future repair or replacement of, or additions to, those major components which the association is obligated to maintain. HOA ELECTION TIMELINE Beginning January 1, 2020 and moving forward, the timeline for director elections has been extended. Elections can no longer be done in 60 days. Boards of directors and inspectors of election should expect them to take from 105 to 120 days.Previously, everything couldbe
ADOPTING & AMENDING HOA RULES Rulemaking Authority.Before enacting rules and regulations, associations must have rulemaking authority either statutorily or through its governing documents.. Procedure.Following is a summary of the procedure used for adopting new rules or amending existing rules:DIRECTOR GOOD FAITH
Standard of Conduct.As fiduciaries, board members are held to a higher standard than fellow homeowners.To avoid personal liability for their decisions, the Business Judgment Rule requires directors to act in good faith.. Good Faith Defined.The good faith element is sometimes referred to as bad faith or lack of good faith when the requirement is violated by a director. HOA ELECTION PROXIES Proxy voting in condominium association elections. Defined.An election proxy is a specific power of attorney that allows one person to act on another person's behalf at DIRECTOR CONFLICTS OF INTEREST 2-Minute video. Interested Director.An "interested director" is one who has an interest in the outcome of a board decision because he/she receives a personal benefit from the decision that is different from the benefit conferred on other members of the association. CORPORATIONS CODE §7512 Corporations Code §7512. Member Meeting Quorum. (a) One-third of the voting power, represented in person or by proxy, shall constitute a quorum at a meeting of members, but, subject to subdivisions (b) and (c), a bylaw may set a different quorum. DAVIS-STIRLING.COM, THE #1 RESOURCE FOR CALIFORNIA'SLEGAL SERVICESNEW LAWSJOB MARKETAWARDSSEMINARSCOMMON AREA I am proud to announce that our Senior Partner, Larry Stirling, author of the Davis-Stirling Act, authored The Noblest Motive, a book about how to bring fundamental change for the public good. In addition to the Davis Stirling Act, Larry created the well-known "Adopt a Highway" law, pioneered the first major 9-1-1 law, pushed through the first major whistle blower law, engineered California's2021 NEW LAWS
TERMINOLOGY Statutory Law. Bills (proposed changes to the law) are introduced into the legislature in Sacramento. Once a bill has been approved by both houses of the legislature (the Assembly and Senate) and signed by the Governor, a bill becomes a statute or "statutorylaw."
DAVIS-STIRLING ACT (2014) The 2014 Restated Davis-Stirling Act for residential common interest developments and mixed-use CIDs. HOA RESERVE ACCOUNTS Associations must set up bank accounts that are separate and distinct from their managing agent's funds and must separate their operating and reserve funds into separate accounts. A "Reserve Account" refers to money the association has set aside to defray the future repair or replacement of, or additions to, those major components which the association is obligated to maintain. HOA ELECTION TIMELINE Beginning January 1, 2020 and moving forward, the timeline for director elections has been extended. Elections can no longer be done in 60 days. Boards of directors and inspectors of election should expect them to take from 105 to 120 days.Previously, everything couldbe
ADOPTING & AMENDING HOA RULES Rulemaking Authority.Before enacting rules and regulations, associations must have rulemaking authority either statutorily or through its governing documents.. Procedure.Following is a summary of the procedure used for adopting new rules or amending existing rules:DIRECTOR GOOD FAITH
Standard of Conduct.As fiduciaries, board members are held to a higher standard than fellow homeowners.To avoid personal liability for their decisions, the Business Judgment Rule requires directors to act in good faith.. Good Faith Defined.The good faith element is sometimes referred to as bad faith or lack of good faith when the requirement is violated by a director. HOA ELECTION PROXIES Proxy voting in condominium association elections. Defined.An election proxy is a specific power of attorney that allows one person to act on another person's behalf at DIRECTOR CONFLICTS OF INTEREST 2-Minute video. Interested Director.An "interested director" is one who has an interest in the outcome of a board decision because he/she receives a personal benefit from the decision that is different from the benefit conferred on other members of the association. CORPORATIONS CODE §7512 Corporations Code §7512. Member Meeting Quorum. (a) One-third of the voting power, represented in person or by proxy, shall constitute a quorum at a meeting of members, but, subject to subdivisions (b) and (c), a bylaw may set a different quorum. REQUEST FOR INFORMATION Sometimes owners mix requests for information with requests for records. The Davis-Stirling Act provides for an owner's limited right to inspect books and records but does not create an obligation that associations compile information. Creating Documents. For example, if an owner were to request a list of all parking violations for the past three years, the association is not required to comb NEW LAWS - DAVIS-STIRLING.COM The INDEX on the left has new laws by the year they were enacted. Click on the link to see both bills and case law.. The menu behind me covers the legislative process. If you would like me or one of our attorneys to speak to your group about new laws, please feel free to contact me. Nathan McGuire, Esq. HOA BALCONY MAINTENANCE & REPAIRS Inspections Required.In addition to reserve study inspections every three years for maintenance and repairs, condominium associations with three or more units must conduct a structural inspection every nine years.The new inspection requirements do not change who is responsible to maintain, repair or replace balconies or other elevated structures.RULES EXPLAINED
Rules Defined.Rules and Regulations (sometimes called "HOA Rules," "House Rules" or simply "Rules") are called "Operating Rules" by the Davis-Stirling Act and means "a regulation adopted by the board that applies generally to the management and operation of the common interest development or the conduct of the business and affairs of theassociation."
DIRECTOR DUTIES
Duties of Directors.When a homeowner becomes a board member, he/she assumes certain obligations as a director that must be carried out in the best interests of the association. HOA RENT RESTRICTIONS & PROHIBITIONS Beginning January 1, 2021, homeowner associations are required to amend their governing documents to conform to statutory rental caps and lease terms. Failure toHOA MEETING MINUTES
Minutes Are Required.Minutes are the official records of the proceedings of an organization (Corp. Code §8320) and prima facie evidence of the board's actions.(Corp.Code §7215.)Associations are obligated to keep minutes of board and membership meetings and somecommittee meetings.
COLLECTION POLICY
Since HOAs are entirely dependent upon the regular and timely payment of assessments by all homeowners, California courts recognize the need to collect those assessments: BORROWING FROM HOA RESERVES 2-Minute video. Borrowing Defined.Without a vote of the membership, boards are allowed to borrow from reserves to meet short-term cash flow problems or other expenses.Civ. DIRECTOR CONFLICTS OF INTEREST 2-Minute video. Interested Director.An "interested director" is one who has an interest in the outcome of a board decision because he/she receives a personal benefit from the decision that is different from the benefit conferred on other members of the association. DAVIS-STIRLING.COM, THE #1 RESOURCE FOR CALIFORNIA'SLEGAL SERVICESNEW LAWSJOB MARKETAWARDSSEMINARSCOMMON AREA I am proud to announce that our Senior Partner, Larry Stirling, author of the Davis-Stirling Act, authored The Noblest Motive, a book about how to bring fundamental change for the public good. In addition to the Davis Stirling Act, Larry created the well-known "Adopt a Highway" law, pioneered the first major 9-1-1 law, pushed through the first major whistle blower law, engineered California's2021 NEW LAWS
TERMINOLOGY Statutory Law. Bills (proposed changes to the law) are introduced into the legislature in Sacramento. Once a bill has been approved by both houses of the legislature (the Assembly and Senate) and signed by the Governor, a bill becomes a statute or "statutorylaw."
DAVIS-STIRLING ACT (2014) The 2014 Restated Davis-Stirling Act for residential common interest developments and mixed-use CIDs. ADOPTING & AMENDING HOA RULES Rulemaking Authority.Before enacting rules and regulations, associations must have rulemaking authority either statutorily or through its governing documents.. Procedure.Following is a summary of the procedure used for adopting new rules or amending existing rules:OFFICER VACANCIES
Appointing Officers to Fill Vacancies. Authority to Appoint.Unless otherwise provided in the articles or bylaws, a vacancy created by the resignation, removal or death ofNEWSLETTER SIGN-UP
Davis-Stirling.com Newsletter Sign-Up. IT'S FREE OUR COMMITMENT TO YOU: you will not appear on other mailing lists;DIRECTOR GOOD FAITH
Standard of Conduct.As fiduciaries, board members are held to a higher standard than fellow homeowners.To avoid personal liability for their decisions, the Business Judgment Rule requires directors to act in good faith.. Good Faith Defined.The good faith element is sometimes referred to as bad faith or lack of good faith when the requirement is violated by a director. HOA RENT RESTRICTIONS & PROHIBITIONS Beginning January 1, 2021, homeowner associations are required to amend their governing documents to conform to statutory rental caps and lease terms. Failure to QUIET ENJOYMENT RIGHTS Quiet enjoyment is the right of a property owner or tenant to enjoy his/her property in peace without interference. There is usually a provision in the CC&Rs granting an easement of quiet enjoyment. WITHDRAWAL OF RESIGNATION A resigning director controls the date and time of his/her departure from the board. A resignation that takes effect at a future date may be withdrawn or postponed at any time prior to that date. The board cannot alter the date and time of another director's resignation by "accepting" the resignation prior to the effective date of theresignation.
DAVIS-STIRLING.COM, THE #1 RESOURCE FOR CALIFORNIA'SLEGAL SERVICESNEW LAWSJOB MARKETAWARDSSEMINARSCOMMON AREA I am proud to announce that our Senior Partner, Larry Stirling, author of the Davis-Stirling Act, authored The Noblest Motive, a book about how to bring fundamental change for the public good. In addition to the Davis Stirling Act, Larry created the well-known "Adopt a Highway" law, pioneered the first major 9-1-1 law, pushed through the first major whistle blower law, engineered California's2021 NEW LAWS
TERMINOLOGY Statutory Law. Bills (proposed changes to the law) are introduced into the legislature in Sacramento. Once a bill has been approved by both houses of the legislature (the Assembly and Senate) and signed by the Governor, a bill becomes a statute or "statutorylaw."
DAVIS-STIRLING ACT (2014) The 2014 Restated Davis-Stirling Act for residential common interest developments and mixed-use CIDs. ADOPTING & AMENDING HOA RULES Rulemaking Authority.Before enacting rules and regulations, associations must have rulemaking authority either statutorily or through its governing documents.. Procedure.Following is a summary of the procedure used for adopting new rules or amending existing rules:OFFICER VACANCIES
Appointing Officers to Fill Vacancies. Authority to Appoint.Unless otherwise provided in the articles or bylaws, a vacancy created by the resignation, removal or death ofNEWSLETTER SIGN-UP
Davis-Stirling.com Newsletter Sign-Up. IT'S FREE OUR COMMITMENT TO YOU: you will not appear on other mailing lists;DIRECTOR GOOD FAITH
Standard of Conduct.As fiduciaries, board members are held to a higher standard than fellow homeowners.To avoid personal liability for their decisions, the Business Judgment Rule requires directors to act in good faith.. Good Faith Defined.The good faith element is sometimes referred to as bad faith or lack of good faith when the requirement is violated by a director. HOA RENT RESTRICTIONS & PROHIBITIONS Beginning January 1, 2021, homeowner associations are required to amend their governing documents to conform to statutory rental caps and lease terms. Failure to QUIET ENJOYMENT RIGHTS Quiet enjoyment is the right of a property owner or tenant to enjoy his/her property in peace without interference. There is usually a provision in the CC&Rs granting an easement of quiet enjoyment. WITHDRAWAL OF RESIGNATION A resigning director controls the date and time of his/her departure from the board. A resignation that takes effect at a future date may be withdrawn or postponed at any time prior to that date. The board cannot alter the date and time of another director's resignation by "accepting" the resignation prior to the effective date of theresignation.
2020 NEW LAWS
TERMINOLOGY Statutory Law. Bills (proposed changes to the law) are introduced into the legislature in Sacramento. Once a bill has been approved by both houses of the legislature (the Assembly and Senate) and signed by the Governor, a bill becomes a statute or "statutorylaw."
NEW LAWS - DAVIS-STIRLING.COM The INDEX on the left has new laws by the year they were enacted. Click on the link to see both bills and case law.. The menu behind me covers the legislative process. If you would like me or one of our attorneys to speak to your group about new laws, please feel free to contact me. Nathan McGuire, Esq.RULES EXPLAINED
Rules Defined.Rules and Regulations (sometimes called "HOA Rules," "House Rules" or simply "Rules") are called "Operating Rules" by the Davis-Stirling Act and means "a regulation adopted by the board that applies generally to the management and operation of the common interest development or the conduct of the business and affairs of theassociation."
HOA ELECTION TIMELINE CALCULATOR VOTING DEADLINE.Select the ballot-counting date by clicking on the field below, navigating through the calendar, and clicking on yourdesired date.
HOA ELECTION TIMELINE The sealed ballots, signed voter envelopes, voter list, proxies, and candidate registration list shall at all times be in the custody of the inspector or inspectors of elections or at a location designated by the inspector or inspectors until after the tabulation of the vote, and until the time allowed by Section 5145 for challenging the election has expired, at which time custody shall beHOA EMAIL ACCOUNT
Unlike federal employees, there is no requirement that boards use "official" email accounts. However, there are practical reasons fordoing so.
SAMPLE MINUTES
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