Rent cap, term limit, midterm election changes in 2022 – San Bernardino Sun

Many laws are changing for the California HOA this year, and here is a summary of the most important changes.

Longer deadlines for member meetings are requested: If at least 5% of members request a special members meeting, the meeting must now be held within 35 to 150 days after the HOA receives the request. (Corporate Code Section 7511(c)).

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

Vote by chanting: If there are only enough candidates for vacant seats, the new Civil Code Section 5103 allows the board to declare candidates elected if the HOA has sent the necessary notices and if the HOA already has at least one elections with votes counted in the previous three years. . HOA may wish to update their election rules and request the necessary notices to maintain this cost-effective option.

Disclosure of personal data: New Civil Code 5230(c) prohibits HOA or its management from selling or transferring members’ personal information to third parties. In the past, some companies managed under their contract stipulating that they sell or transmit member data to external organizations, but this is now prohibited.

Websites as bulletin boards: The new Civil Code Section 4045(a)(5) allows the HOA to use its website for general notices, as long as the Annual Policy Statement says so.

Rental restrictions: HOAs are required to remove illegal rental restrictions from amendments under Civil Code Section 4741 by July 1. The Amendment to Civil Code Section 4741(f) opens a gap a six-month period commencing January 1 and ending July 1, 2022, during which illegal rental restrictions in CC&Rs may be removed by a vote of the board of directors without membership vote is required.

A notice must be published to members at least 28 days before the council votes to adopt the amendment. Most CC&R HOAs do not have “unreasonable” illegal rental restrictions, but if they do, legal advice should be sought to ensure the modification is necessary and within the narrow limits of Section 4741(f) as amended.

Financial control: For HOAs with 50 or fewer members, the new Civil Code Section 5502(a)(1) lowers the threshold for requiring written board approval for financial transfers from $10,000 or 5% of the budget down to $5,000.

Fully virtual meetings: Under the emergency regulations effective September 2021, in local, state or federal declared emergencies that prevent meetings, the new Civil Code Section 5450 allows meetings Meetings of the board of directors or members are 100% electronic (no actual attendance) as long as a prescribed initial notice is sent to all members and the necessary notices are given in advance. each meeting is completely virtual.

All votes of the board of directors must be by roll call, and during member meetings at which votes are counted, the counting of votes by the Inspector must be videotaped. HOAs can still have “combined” meetings, as long as the usual requirements of the Open Meetings Act are met.

Safety program at home: For HOA members participating in the relatively new “Safe at Home” program, Section 5216 of the new Civil Code requires the HOA to use an address designated by the California secretary of state for that owner and not share it. share their name, address, or email address with other HOA members.

Kelly G. Richardson, Esq. is a Fellow of the Community College Bar Association and a Partner of Richardson Ober DeNichilo LLP, a law firm known for its community association advice. Send a question to Rent cap, term limit, midterm election changes in 2022 – San Bernardino Sun

Curtis Crabtree

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