California, like most states, has passed legislation defining how HOAs manage their affairs. Here, it’s called the...
How New HOA Laws for 2021/2022 Will Affect San Diego Homeowners
Being educated and informed about state and local regulations is an important aspect of being a homeowner, especially when it comes to new laws and updates. Understanding new and upcoming law changes can help homeowners (and homeowners associations) see the whole picture when it comes to making important decisions – and ensuring that you and your HOA are abiding by the new regulations.
Here are some recent HOA laws from 2021 and upcoming new laws in 2022 that could potentially affect San Diego homeowners.
California Senate Bill 391 – HOA Virtual Meetings during Times of Emergency
SB 391 took effect as an urgency statute immediately once Governor Gavin Newsom approved it in September. It allows HOAs during times of declared emergency to hold purely virtual meetings (without the normal requirement of a physical location where members can choose to observe).
Notice of the first virtual meeting must be announced to all members by mail, including the contact information of someone who can help with log-in difficulties, and all votes in purely virtual meetings must be by roll call.
California Senate Bill 392 – HOA Association Document Delivery
Senate Bill 392 was actually sponsored by the California Association of Realtors, and continues to push towards electronic communication within HOAs. Starting in 2023, owners may choose whether they wish to receive individual notifications from the HOA by postal and/or electronic mail. If they do not choose, the default method of communication will still be postal mail.
The remainder of the bill will become effective sometime in 2022. A new 4045(a)(5) is created, permitting HOAs to make general notices on the HOA’s web site. New subparts are added to Civil Code Section 5230, barring the HOA or its management from selling member information to a third party without member consent (some management companies have been doing this under their contracts, without full disclosure to the membership).
California Assembly Bill 3182 – Rental Restrictions in HOAs
This 2021 law voids provisions in an association’s governing documents that prohibit or “unreasonably restrict” renting. However, there are two key exceptions: an HOA can disallow short-term rentals of 30 days or less and can limit the total number of rentals in their community to 25% (but not less).
Associations have until December 31, 2021 to change their governing documents to reflect this law. Failure to abide or update governing documents can result in a fine of $1,000.
California Senate Bill 326 – HOA Balcony Law
This law was passed earlier this year, and requires condo associations with three or more units to have a licensed structural engineer inspect the building’s exterior elevated elements (balconies, elevated walkways, railings, stairways, etc.) every nine years. Associations must conduct their first inspection by January 1, 2025.
Assembly Bill 1033: California Family Rights Act
The new California Family Rights Act makes it unlawful for an employer to refuse to grant an employee’s request to take up to 12 workweeks of unpaid protected leave during any 12-month period for family care and medical leave. The new law defines family care and medical leave to now also include care for a parent-in-law.
Assembly Bill 1101: Common Interest Developments – Insurance
According to this new law, managing agents are no longer allowed to commingle association funds with the managing agent’s money or with the money of others. At the written request of the board, managing agents must also deposit funds accepted or received on behalf of a CID into an account in a bank, savings association, or credit union in California that is FDIC-insured or insured by the National Credit Union Administration Insurance Fund.
Such funds may only be deposited in accounts that protect the principal and funds cannot be invested in stocks or high-risk investment accounts. Depositing funds in interest bearing accounts is no longer required.
California State Bill 391: Emergency Powers and Procedures
This new law allows a board or membership meeting to be conducted entirely by teleconference, without any physical location being held open for the attendance of any director or member, if all of the following are met:
- Gathering in person is unsafe or impossible because the CID is in an area affected by or if a state of emergency or disaster is declared by the Federal, state or local government;
- Every director and member has the same ability to participate in the meeting that would exist if the meeting were held in person;
- Any vote of the directors shall be conducted by a roll call vote; and
- Any person who is entitled to participate in the meeting shall be given the option of participating by telephone
If you’re looking for an experienced HOA management company who understands the ins and outs of HOA rules and regulations, Associated Professional Services can help. Take a look at our services or contact us to request a proposal.