February 2022 Update
NOTE: This update includes all the extensive revisions that were included in the February 2021 Update and July 2020 special interim supplement, which covered the sweeping statutory changes resulting from SB 323 (Stats 2019, ch 848) and SB 754 (Stats 2019, ch 858), effective January 1, 2020. See chapter 2, which was thoroughly updated. Updates resulting from the 2020–2021 legislative session, including AB 1101 (Stats 2021, ch 270), SB 391 (Stats 2021, ch 276), AB 502 (Stats 2021, ch 517), SB 392 (Stats 2021, ch 640), and SB 432 (Stats 2021, ch 642) are reflected in chapters 2 and 9.
Assembly Bill 502 relates to election procedures, and in part, allows homeowners associations to elect board candidates by acclamation if the number of nominees does not exceed the number of open seats. See §2.21.
In the wake of the 2021 COVID–19 pandemic, CC §5450 was enacted to permit meetings via teleconference without a designated physical meeting place if local, state, or federal officials have declared a state of emergency or disaster. See §2.39.
Assembly Bill 1101, in part, amended CC §5806 to specify insurance coverage requirements for associations. See §2.139.
Senate Bill 392 will allow, beginning on January 1, 2023, homeowners associations to use e-mail as a method of sending notices and documents to members, subject to the member’s preferred method of delivery. See §2.154.
Senate Bill 432 also addresses election procedures, and in part, allows associations to disqualify a nominee from being elected to the board if the member has already served the maximum term(s) allowed. See §9.3.
REMINDER: Effective January 1, 2021, under new CC §4751, a covenant that either “effectively prohibits” or “unreasonably restricts” the construction or use of an accessory dwelling unit (ADU) or junior accessory dwelling unit (JADU) is void and unenforceable. Reasonable restrictions on ADUs and JADUs are excepted from this ban. See §6.41 for details.
REMINDER: Effective January 1, 2021, CC §§4740 and 4741 substantially limit the validity and enforceability of rental restrictions in common interest developments. See §§6.49–6.53, 6.58, 6.64.
In Issakhani v Shadow Glen Homeowners Ass’n (2021) 63 CA5th 917, the court held that a homeowners association was not liable on negligence or premises liability theory for injuries sustained offsite allegedly due to the association’s failure to maintain the number of guest parking spaces required by zoning ordinance. See §§4.23, 12.51.
In Brown v Montage at Mission Hills, Inc. (2021) 68 CA5th 124, the court held that a restriction on short-term rentals was precluded by CC §4741 and the short-term rental restriction at issue was unenforceable as to owners taking title prior to enactment of the restriction (unless such owners had consented to the enforceability of the restrictions). See §§6.49, 6.53.
In Kracke v City of Santa Barbara (2021) 63 CA5th 1089, the court struck down a city ordinance restricting short-term rentals for failure to obtain Coastal Commission consent. See §6.49.
In Salisbury v City of Santa Monica (9th Cir 2021) 994 F3d 1056, the court concluded, in the context of an FHAA claim brought by a disabled, long-term resident of a mobilehome community who had never entered into a lease or paid rent in exchange for the right to occupy the premises, that the FHAA regulates only sellers and renters, and as to renters only when the landlord has received consideration in exchange for granting the right to occupy the premises. See §8.48.
In Howard v HMK Holdings, LLC (9th Cir 2020) 988 F3d 1185, the court held that a landlord’s refusal to grant additional time for moveout, after a disabled tenant rejected a new lease, was not a failure to grant reasonable accommodation because no causal link between the disability and the requested moveout extension was proven. See §§8.50, 8.54.
In Smart Corner Owners Ass’n v CJUF Smart Corner LLC (2021) 64 CA5th 439, the court held that membership vote prerequisites to an association’s construction defect lawsuit are unenforceable on public policy grounds and applied CC §5986 retroactively to reverse a summary judgment for developer entered before the effective date of the statute. See §11.90A.
In Champir LLC v Fairbanks Ranch Ass’n (2021) 66 CA5th 583, the court held that the voluntary dismissal of homeowner’s complaint based on association’s failure to submit construction issue to homeowners, after association conducted a post-complaint vote, did not deprive homeowner of its prevailing party status. See §12.41.