San Diego Union-Tribune

PLENTY NEW FOR COMMUNITIE­S IN 2022

- BY KELLY G. RICHARDSON Richardson, Esq. is a Fellow of the College of Community Associatio­n Lawyers and Partner of Richardson Ober DeNichilo LLP, a law firm known for community associatio­n advice. Submit questions to kelly@rodllp.com.

Many laws are changing for California HOAs this year — here is a recap of the most important changes.

Longer deadline for petitioned membership meeting. If at least 5 percent of members petition for a special membership meeting, the meeting must now be held within 35 to 150 days after the HOA receives the petition. (Corporatio­ns Code Section 7511(c)).

Term limits again allowed. For HOAs with board term limits, new Civil Code Section 5103(d)(2) confirms that term limits can be an eligibilit­y requiremen­t along with the four optional eligibilit­y requiremen­ts of Civil Code Section 5105(c).

Election by acclamatio­n. If there are only enough candidates for the open seats, new Civil Code Section 5103 allows the board to declare the candidates elected if the HOA has sent the required notices and if the HOA has had at least one election with votes in the prior three years. HOAs may wish to update their election rules and require the necessary notices to be sent to preserve this cost-saving option.

Disseminat­ing personal data. New Civil Code 5230(c) prohibits either the HOA or its management to sell or transfer personal informatio­n on members to third parties. Previously, some management firms under their contracts provide that they sell or transmit member data to outside organizati­ons, but this is now prohibited.

Websites as bulletin boards. New Civil Code Section 4045(a) (5) allows HOAs to use their websites for general notices so long as the Annual Policy Statement says so.

Rental restrictio­ns. HOAs are required to remove illegal rental restrictio­ns from governing documents per Civil Code Section 4741 by July 1, 2022. A revision to Civil Code Section 4741(f ) opens a six-month period beginning January 1 and ending July 1, 2022, in which illegal rental restrictio­ns in CC&Rs may be removed by board vote without a membership vote. An announceme­nt must be published to the membership at least 28 days before the board vote to approve the amendment. Most HOA CC&Rs do not contain illegal “unreasonab­le” rental restrictio­ns, but if they do, legal counsel should be involved to ensure the amendment is necessary and stays within the narrow limits of the revised Section 4741(f ).

Financial controls. For HOAs of 50 or less membership­s, a new Civil Code Section 5502(a)(1) lowers the threshold triggering the requiremen­t of written board approval for financial transfers from $10,000 or 5 percent of budget to $5,000.

Purely virtual HOA meetings. Under an urgency statute in effect since September 2021, during local, state or federally declared emergencie­s preventing meetings, a new Civil Code Section 5450 allows board or membership meetings to be all electronic (with no physical attendcoun­ted ance) so long as a prescribed initial announceme­nt is made to all members, and further required announceme­nts are issued prior to each fully virtual meeting. All board votes must be by roll call vote, and in membership meetings at which votes are counted, the Inspector’s counting must be on camera. HOAs still may have “hybrid” meetings, so long as normal Open Meeting Act requiremen­ts are met.

Safe At Home program.

For HOA members participat­ing in the relatively new “Safe At Home” program, a new Civil Code Section 5216 requires that HOAs use the address designated by the Secretary of State for that owner and may not share their name, address, or email address with other HOA members.

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