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HOA Legal Informer
News and Updates Affecting HOA's
IMPORTANT NOTICE
As you may know, Assembly Bill 502 (“AB 502”) passed this year and will likely impact your association. AB 502 took effect, beginning January 1, 2022, and we want you and your community to be prepared.

NEW OR REVISED ELECTION RULES, ELECTION BY ACCLAMATION, ETC.
 
Under AB 502, among other substantial changes to the California Civil Code, associations may consider directors to be elected by acclamation, if the election is uncontested (i.e., the number of nominees is not more than the number of vacancies up for election). This means that the association no longer has to go through the time and considerable expense of holding an election, preparing secret ballots, hiring an inspector of elections, etc., when the outcome of the election is known for all intents and purposes.
 
Previously, the Civil Code only allowed election by acclamation for communities consisting of 6,000 separate interests or more. This law expands it to all associations. However, in order to implement election by acclamation, AB 502 requires certain pre-meeting notice requirements to be met.
 
AB 502 also reinstates associations’ ability to enforce term limits (i.e., the maximum number of terms or sequential terms that a director may serve). Furthermore, new law revises the timeframe by which an association must respond to a petition from the members calling for a special meeting (i.e., to recall the board, etc.).
 
The Civil Code requires all associations to have Election Rules in full force and effect. Without Election Rules that are in compliance with the law and up-to-date with AB 502, associations risk legal challenge and unnecessary expenditures associated with same.
 
*Keep in mind that under Civil Code Section 5105, the Election Rules cannot be amended less than ninety (90) days prior to an election. If your election is within ninety (90) days, note that your previous Election Rules (if any) will still govern that election.
 
We can draft a new set of Election and Voting Rules and the accompanying documents which includes, but is not limited to, the Candidate Nomination Form, an Election Timeline, and the above-mentioned pre-election notices.

Contact our office for a special fixed fee quote for your Association. We look forward to working with you to protect and manage your community!
REMINDERS

THE RENTAL OR LEASING OF HOMES - AB 3182/AB 1584

The deadline to amend governing documents for compliance with AB 3182 (regarding rental restrictions) has been extended to July 1, 2022. AB 1584 (Assembly Housing Committee) was recently signed by the Governor to extend this deadline and allows a board to amend governing documents to be in compliance with the new rental restriction law without a membership vote. However, some amendments may still require a vote of the membership by secret ballot.

Significantly, failure to amend before July 1, 2022, may leave the association open to risk of having no reasonable rental restrictions in place, as any and all restrictions in the governing documents which conflict with AB 3182 are deemed void and unenforceable as of January 1, 2021. In other words, the Board should take action now to implement “reasonable” restrictions under the new law! 

“SPLITTING” OF LOTS - SB 9

Senate Bill 9 (“SB 9”) was recently signed by the Governor, effectuating a new law to combat the affordable housing crisis, which could significantly impact your association. 

Beginning January 1, 2022, SB 9 allows property owners to essentially “split” or divide their property into two (2) lots, with up to two (2) residences that can be built upon each. In other words, SB 9 may result in dramatically denser single-family-zoned communities, with far more residences in the association than it was originally intended to support. 

Again, it is critical that the Board acts now to ensure your community is protected. In light of the State of California’s latest attempt to increase the availability of housing, we are ready to assist the Association and guide the Board. Contact our office for a special fixed fee quote for your Association.

UPCOMING INDUSTRY EVENTS
CACM Southern California Law Seminar & Expo

BT Senior Partner, Jeffrey A. Beaumont, Esq, will be speaking at the CACM Southern California Law Seminar & Expo on March 16-18, 2022, at the Disneyland Hotel and Convention Center. BT will also have a booth at the expo hall. Make sure to stop by and visit us. We look forward to seeing you!

This in-person Law Seminar will offer unique perspectives, legal insight, and solutions to some of our industry’s biggest challenges.

Register Here:
CAI's Common Interest Development Law Course

BT Partner, Lisa Tashjian, Esq., will be speaking at the CID Law Course on March 21,23 and 25, 2022, via Zoom from 9am -11:45am each day, along with Matthew Gardner, Richardson|Ober|DeNichillo and Cyrus Koochek, SwedelsonGottileb.

This seminar will cover a comprehensive review of California and Federal Laws affecting community associations. Community mangers will gain a greater understanding of the Davis-Stirling Act, California Corporations Code and common law and specifics related to common interest developments.

Register Here:

HIGHLIGHTS AND SUCCESSES

Congratulations to our senior partner, Jeff Beaumont and Denise Gibbs with AMMCOR for their nomination for Program of the Year by the CAI-Orange County Chapter. Awards will be presented on March 5th. Huge round of applause for ALL nominees! 
Congratulations to BT senior partner, Jeff Beaumont Esq., who was nominated as Speaker of the Year for the CAI-Channel Islands Chapter. Jeff was nominated for his program "HOA Legal Q&A With An Interactive Twist". All nominees will be recognized and the winner will be announced at the Chapter's Awards Gala - A Night of Vintage Hollywood Glamour on Friday, March 25th at Spanish Hills Country Club. Congratulations to all of the nominees!
Congratulations to A.J. Jahanian, Esq., BT attorney associate, for winning Committee Chair of the Year!  A.J. is the Communications Committee Chair and Editor of the Connect Magazine for the CAI-Greater Inland Empire Chapter. Way to go A.J.!
  • BT obtained a favorable ruling on an appeal for a condominium association in Los Angeles County for a water intrusion issue within a homeowner’s unit. BT was able to argue to the court successfully that the owner was responsible for the damage to her unit despite the small claims judge ruling against the association originally.

  • BT granted the award of 100% of our attorney fees on appeal in the Country Glen v Garrett case
About Beaumont Tashjian

Beaumont Tashjian devotes its practice to representing common interest developments throughout California in all aspects of community association and real estate law. For more than 40 years, we have counseled condominium, planned-unit, cooperative, commercial and mixed-use development associations through all aspects of community association law in the most timely and cost-effective manner. We pride ourselves in being an integral part of the significant service associations provide.