This is part one of a three-part series.
This year Sacramento has been much more active regarding proposed HOA legislation, with at least nine bills introduced proposing to directly affect HOAs in various ways.
The Legislature’s deadline on Feb. 21 for bills to be introduced has long past, but some bills could initially regard HOAs and then be amended to do something else, or vice versa. So, much can still happen before the June 6 deadline for bills to pass their house of origin and proceed to the other house for consideration.
Senate Bill 410, by state Sen. Tim Grayson builds on the “balcony inspection law” of Civil Code 5551.
Now that the statute’s Jan. 1, 2025 deadline for the first inspection has passed, all condominiums with three or more attached units should have already completed an inspection of all “elevated exterior elements” (not just balconies).
Those reports obviously would be of great interest to current HOA members and prospective condominium purchasers. Current law declares these reports to be incorporated into the reserve study (Civil Code 5551(f)) and that the reports are to be kept as “association records.”
Civil Code 5551(i) creates the implication that such reports would be provided to homeowners upon request. However, there is no explicit statement requiring Elevated Exterior Elements inspection reports to be provided.
SB 410 proposes to fix that ambiguity by adding this to Civil Code 4525(a)’s list of documents sellers must give to purchasers of HOA properties.
This bill presents an improvement that would protect owners and prospective buyers of condominiums.
Senate Bill 625, co-authored by Sens. Aisha Wahab and Laura Richardson, proposes protection for HOA homeowners seeking to rebuild homes destroyed in declared disasters or states of emergency, and also imposes procedures on HOAs regarding proposed home alterations.
The bill proposes to add a new Civil Code 4752 (in the “protected uses” article of the Davis-Stirling Act) and a new Civil Code 4766 (in the “modification of separate interest” article).
The proposed Section 4752 would protect the right of homeowners to rebuild their home and bar HOAs from prohibiting rebuilding except under several important conditions:
— Homeowners follow local applicable building codes
—Build “substantially similar” homes on the same location, not more than 10% larger than the prior home
—Setbacks of at least 4 feet from rear and side lot lines or in the same location as the prior home (if the original setbacks were less than 4 feet).
The proposed new Section 4766 is not limited to disaster situations but places extremely strict requirements on HOA boards or architectural committees in reviewing and responding to applications for modifications of homes.
Under this proposal, HOAs would have only 15 days to respond to applicants confirming the application is complete or listing any incomplete items and then would have only 30 days to decide if the application will be approved. If that deadline is missed the application would be deemed automatically approved.
SB 625 is partly good (the proposed new Section 4752) and partly bad (the proposed new Section 4766 is unrealistic in dealing with volunteer boards or committees). If only these ideas could be split into separate bills….
To review current law or pending bills, visit the official Legislature web site at leginfo.legislature.ca.gov.
Richardson, Esq. is a fellow of the College of Community Association Lawyers and partner of Richardson Ober LLP, a California law firm known for community association advice. Submit column questions to kelly@roattorneys.com.
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