2020 Legislative & Case Law Update

New laws impacting California Community Associations

December 2020

Every year existing laws are amended and new laws are enacted that impact California community associations. While this year’s legislative session schedule was impacted due to the COVID-19 pandemic, there were several important legislative developments. As the industry leader in Board Member training and education, PMP Management is proud to present our annual legislative update to keep our valuable Board Member clients abreast of new laws that may impact their respective communities.

It is important to disclose that PMP Management is not a law firm and nothing contained in this document should be considered legal advice. Please confer with your association’s respective attorney regarding how particular laws may impact your specific community. Each of the laws detailed below will become effective January 1, 2021.

Assembly Bill 3182: Rental or Leasing of Separate Interests

One of the most significant pieces of new legislation in 2021 will be Assembly Bill 3182 (AB 3182), which will amend the existing Civil Code to make many common association rental restrictions void and unenforceable. PMP issued a separate DR. HOA Board Member Educational Column on AB 3182 last month, detailing how this Bill will impact California common interest developments by limiting their power to adopt and enforce rental restrictions. In essence, SB 3182 prohibits associations from enforcing “unreasonable” rental restrictions, which now limits restrictions to the following:

  1. Associations may prohibit short-term rentals defined as anything less than thirty (30) days; and
  2. Associations are permitted to limit the percentage of leased units, but that percentage cannot be less than twenty-five percent (25%).

Important to note- AB 3182 requires that associations amend their governing documents to comply with the new law by December 31, 2021, placing a significant administrative and costly burden on California community associations. We are recommending that associations make every effort to meet this deadline, but as we are all aware, updating governing documents, and more specifically amending Conditions, Covenants and Restrictions (CC&Rs) requires an affirmative vote of at least a majority of the members (and most often 67%). The new law does not indicate what the ramifications are of not meeting this deadline, so hopefully there will be some clarification from Sacramento in the new year.

Please reference PMP’s DR. HOA column from November 2020 for more detailed information on SB 3182.

Senate Bill 326: Inspection of Exterior Elevated Common Area Elements

Senate Bill 326 (SB 326) will revise existing Civil Code, requiring condominium associations with three (3) or more units to have exterior elevated elements that the association is responsible for maintaining inspected by a licensed structural engineer once every nine (9) years. Exterior elevated elements include, but are not limited to balconies/decks, elevated walkways, and stairwells if they: 1) extend beyond the exterior walls of the buildings; 2) have a walking surface of six (6) or more feet above the ground; 3) are designed for human use; and 4) are supported in whole or in part by wood components.

While SB 326 does not require all elevated elements be inspected, the new law does require a “statistically significant” sample of elevated elements be inspected by a licensed structural engineer every nine (9) years, and the first inspection is due by no later than January 1, 2025. As such, it is important for Board’s to plan accordingly, which includes updating your association’s reserve study to contribute to this costly structural inspection requirement.

The following Assembly Bills are pending, so we will continue to track them closely and keep you abreast of new developments. That said, we felt they were important enough to at least make mention of them in this year’s legislative update.

Assembly Bill 828 COVID-19 Temporary Moratorium on Foreclosures and Unlawful Detainer Actions

Assembly Bill 828 (AB 828) imposes a temporary ban on foreclosure and eviction actions until ninety-one (91) days after the COVID-19 state of emergency has officially ended. As you can imagine, this Bill would significantly impact an association’s ability to pursue delinquent assessments through foreclosure actions.

Association are still permitted and encouraged to pursue a lien on delinquent owners’ property to secure the association’s financial interest, but at this time Boards are urged to consult with their association’s attorney before pursuing foreclosure on the lien.

Assembly Bill 2324 Prohibition of Rent or Lease of Accessor Dwelling Units (ADUs)

Assembly Bill 2324 (AB 2324) would limit the number of ADUs that any one individual could rent at any given time in the state of California to a maximum of fifteen (15). This only impacts single-family detached home communities, also referred to as planned unit developments (PUDs). Assuming this Bill passes, associations will want to update their ADU policies and procedures to reflect this new law.

If you have questions or additional requests for information, please feel free to e-mail Brad Watson, President of PMP, at bwatson@PMPManage.com.

Please Note: PMP is not a law firm and nothing contained in this document should be considered legal advice. Legal questions should be directed to your respective Association attorney.