2024-2025 New Law Update
We are pleased to bid you a happy fall and announce that it is time to rake the leaves, pick the apples, and pull out your sweaters. Bring on the pumpkin spice everything! Building on 2023 with its mostly good legislative changes, we are thrilled to report another year of largely positive legislative updates impacting California common interest developments.
This year's legislative and case law highlights
- Corporate Transparency Act – Added §5336 to Section 31 of the United States Code and requires most associations (among other small businesses) to file a report that includes all directors' (and other substantial decision makers) names, primary residence address, date of birth, and a copy of a current state identification or passport.
- Electronic Voting (AB 2159) – Amended California Civil Code §§5105, 5110, 5115, 5125, 5200 and 5260 to allow associations to conduct all votes (except for approvals of increases to regular and special assessments) via electronic voting. Associations that want to allow for electronic voting must amend their Election Rules to either require owners to opt-out (recommended) or to opt-in to electronic voting.
- Reduced Quorum (AB 2460) – Amended California Civil Code §5115 and California Corporations Code §7512 to confirm that if an association's governing documents have an adjourned quorum lower than 20%, that still applies.
- Workplace Harassment (SB 553 – 2023) – Amended California Code of Civil Procedure §527.8 to expand the allowable basis on which an employer (which includes associations on behalf of their directors, employees, and managers) can obtain a restraining order to include harassment in addition to acts and/or threats of violence.
- Association Maintenance & Repairs (SB 900) – Requires associations that are already responsible to make repairs to utilities (gas, heat, water or electrical) to make repairs within 14-days if services are interrupted when the utility line beings in the common area and extends into an owner's separate interest, unless the utility line in question is maintained by a utility company. Provides funding and financing mechanisms that will not require a vote of the owners, and allows for exceptions during declared states of emergency.
- ADUs (SB 477) – Added §§66310-66342 to the California Government Code, which essentially renumbered the State's ADU codes and made other non-substantive changes.
- Balcony Inspections (AB 1114) – Amended California Civil Code §5551(b)(1) and added civil engineers to the list of qualified professionals (structural engineers and architects) who are authorized to perform SB326 inspections for condominium projects exterior elevated elements (balconies, walkways, stairs, etc.).
- A successful case claiming religious discrimination must demonstrate some amount of disparate treatment occurred, however, a reference to religious issues at all was sufficient to establish a partial discriminatory intention (Morris v. West Hayden Estates First Addition Homeowners Assn., Inc. 104 F. 4th 1128 (9th Cir. 2024))
- Use restrictions must be recorded in order to be enforceable (Colyear v. Rolling Hills Community Assn. of Rancho Palos Verdes 100 Cal. App. 5th 110 (2024))
- Assessment collection company's requirement for owners to waive parts of the Civil Code in approving payment plans violated the Fair Debt Collection Practices Act (Doskocz v. ALS Lien Servs. 102 Cal. App. 5th 107 (2024))
- Size matters in anti-SLAPP motions (i.e., free speech cases), and as such, they may not apply in small associations (Dubac v. Itkoff 101 Cal. App. 5th 540 (2024))
Recommended To Do's for your community in response to these new developments:
- Amend your Bylaws and modify your Call for Candidates form to reference the Corporate Transparency Act requirements and compliance
- Amend your Election Rules to allow for electronic voting (if desired)
- Amend your Bylaws to remove quorum for director elections
- Update your reserve study for SB 900 compliance (if applicable)
- Adopt an Anti-Harassment Policy
- For PDs – Adopt an ADU Policy if you haven't already
- For Condos – Make sure your SB 326 Report is complete by December 31, 2024
Contact jjackson@berdingweil.com if you have questions or would like to discuss recommendations for your community. We're happy to help!
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