California HOAs Adjust to New Mandates and Drought-Related Tensions
New legislation for California has given HOAs plenty to adjust to. New mandates have brought changes to the way HOAs are required to operate, mainly related to rental restrictions, insurance coverage, fund disbursement, communication preferences, and election procedures. In addition to that, tensions are rising due to drought-related water restrictions.
In an effort to forestall even more severe water shortages, both the Metropolitan Water District of Southern California and the Las Virgenes Municipal Water District have put measures in place to reduce outdoor water consumption. Community association boards can’t necessarily help homeowners deal with water shortages, but there are a few practical strategies that may de-escalate the tension.
New California Legislation Now In Effect for HOA's
Effective January 1, 2022 Californian community associations are required to follow new mandates for compliance with rental restrictions, insurance requirements, disbursement of funds, communication preferences, and election procedures.
SB 3182
SB 3182 (effective since last year) prohibits HOAs from limiting 30+ day rentals to less than 25% of homes within their community.
AB 1584
AB 1584 affirms the community association’s right to restrict the construction (within reason) of accessory dwelling units (ADUs).
SB 392
SB 392 mandates that HOAs can’t sell residents’ details without consent; that residents should be notified that they don’t have to share their email addresses with the HOA; and that the HOA must inquire about homeowners’ communication preferences (mail, email, or both).
Assembly Bill 110
AB 110 establishes board approval regulations according to the association’s size. Those with over 50 residents require board approval for any transfer of $10,000 or more, while those with 50 residents or less require board approval for any transfer of $5,000 (or 5% of estimated annual income for the association). It also establishes that all HOAs should maintain insurance coverage for fraudulent and computer
transfer endorsements, employee dishonesty, and fidelity and crime.
Senate Bill 432 & Assembly Bill 502
SB 432 and AB 502 amended association election requirements. The first extends the homeowners’ timeline to remove or recall a board member (to 150 days after filing a petition, up from 90 days). The second authorizes voting by acclamation if the election is uncontested, and provided the HOA meets specific notice requirements. It also establishes that HOAs can add term limits to board eligibility requirements
New Water-Related California Legislation Now In Effect
Effective June 2022, California residents have had to scale back their water consumption to comply with statewide water restrictions, per the Metropolitan Water District of Southern California (MWDSC). Outdoor watering is now limited to one day per week; noncompliance will result in fines amounting to $2,000 per acre-foot of water.
This is in response to a state of emergency that was announced in November, applying to the Las Virgenes Municipal Water District (LVMWD). Unfortunately conditions there have been steadily worsening, leading to these new water restrictions. With the Northern Sierra experiencing only 15% of normal precipitation as of this April, the next step may be a total ban on outdoor watering. As of May 1, the LVMWD instituted a 50% reduction in outdoor water usage, which residents will have to observe in addition to the MWDSC’s program.
Work With HOAs To Transition Into Compliance
These new restrictions have understandably caused some tension between HOAs and residents. While community association boards aren’t able to ease the water restrictions, they can still handle complaints or confrontations in a way that results in a better outcome for everyone.
It’s key to listen closely, show empathy, and not let emotions take the lead. If you can’t completely resolve a situation, at least you can try to de-escalate the tension. Let the homeowner know that you sympathize, rather than simply reiterating the rules to them; it may also help to educate them on the reasons behind the restrictions. If appropriate, work with them to establish a potential game plan. In many cases it’s impossible for community association boards to provide a solution, but at least they can help homeowners feel like someone is on their side.
Posted September 28, 2022
