California SB 222 (Civil Code 4737): HOA Heat Pump and Gas-to-Electric Replacement Law

Quick Answer

SB 222 (Wiener) was signed on September 28, 2026 and chaptered as Chapter 738, Statutes of 2026. It adds Civil Code section 4737 to the Davis-Stirling Act, and takes effect on January 1, 2027, the general effective date for 2026 legislation. In plain terms: an association's governing documents, architectural guidelines, and policies cannot stop an owner from replacing a gas appliance with a code-compliant electric one, and cannot prohibit or effectively restrict a heat pump water heater or heat pump HVAC system inside the owner's separate interest. The same bill adds a separate set of city and county permitting rules, which start on later dates.

At a Glance

What Civil Code 4737 Says

The statute has four working parts. These are the operative words from the chaptered text.

(a) Gas-to-electric replacement. "Notwithstanding any other law, any provision of the governing documents, architectural guidelines, or policies shall be void and unenforceable if the provision prevents the replacement of a fuel-gas-burning appliance with an electric appliance that complies with all applicable state and local building codes."

(b)(1) Heat pumps, void provisions. Any covenant, restriction, or condition in a deed, contract, security instrument, or other instrument affecting the transfer or sale of real property, and any provision of a governing document, "that effectively prohibits or restricts the installation or use of a residential heat pump water heater or heat pump HVAC system" is void and unenforceable.

(b)(2) Heat pumps, what the association may not do. An association "shall not prohibit or restrict a member from installing, upgrading, replacing, or using" a residential heat pump water heater or heat pump HVAC system in the member's separate interest. It also may not:

• Charge any fee to a member in connection with the installation, upgrade, replacement, or use.
• Require a member to use a specific contractor or product.
• Claim to receive any rebate, credit, or commission in connection with the member's project.
• Require a member to remove a system, or prevent the replacement or upgrade of an existing one.

(b)(3) Exceptions. Paragraph (b)(2) does not apply if the association establishes either that the installation would violate federal, state, or local law, or that a permit from a designated permitting authority is required and was not granted.

(c) Safety. A heat pump water heater or heat pump HVAC system "shall meet applicable health and safety standards and requirements imposed by law."

(d) Damage. Nothing in the section limits an association's ability to require a member to be responsible for repairing damage to the common area, an exclusive use common area, or another member's separate interest "caused by the installation, operation, maintenance, or removal" of the system.

What This Means in Practice

Two different rules in one section

Part (a) covers any replacement of a gas-burning appliance with an electric one, such as a gas range, furnace, or water heater swapped for an electric version. It voids a provision only if the provision "prevents" the replacement, and it carries no list of exceptions beyond the electric appliance meeting building codes. Part (b) is specific to heat pump water heaters and heat pump HVAC systems, and has the longer list of prohibited association conduct and the stated exceptions.

The association carries the burden on the heat pump exceptions

Under (b)(3), the exceptions apply only if the association "establishes" them. A board that wants to deny a heat pump request on the ground of illegality or a denied permit should be able to point to the law or the permit decision in writing. That burden language appears in the heat pump exceptions, not in part (a).

The statute does not state a penalty

Section 4737 has no civil penalty or attorney-fee provision. That is different from AB 1684 (Civil Code section 4738), which does. An owner challenging a rule under 4737 would presumably rely on the Davis-Stirling Act's general enforcement and dispute-resolution provisions, including fee-shifting for the prevailing party in an enforcement action under section 5975. That is our reading of how the pieces fit, not a point a court has decided, so treat it as something to confirm with counsel.

What the statute leaves open

The text does not define "prevents" in part (a), or "effectively prohibits or restricts" in part (b)(1). A rule that does not ban a replacement outright but makes it impractical, for example by imposing heavy cost, long delays, or placement conditions with no workable option, is exposed to challenge. Our working assumption for boards is that rules which function as a block will be treated as a block. The statute also says nothing about licensed-contractor requirements or buyer disclosures. A board should not read 4737 as authority to impose either, and should not assume it forbids a request for a permit number or a contractor's license number for the safety and damage purposes the statute itself recognizes. How courts will treat these details is not yet known.

What Associations Can Still Do

• Require compliance with law: the heat pump limits do not apply where the installation would violate federal, state, or local law, or a required permit is not granted, if the association can establish it.
• Require the system to meet applicable health and safety standards.
• Hold the owner responsible for repairing damage to the common area, exclusive use common area, or another unit caused by the installation, operation, maintenance, or removal.
• Review a request for those purposes through a documented review process that stays within them.

The Permitting Rules (Government Code 51297.50 and Following)

The second half of SB 222 regulates cities and counties, not associations. It still matters to boards because it shapes what owners will bring to them. Key points from the chaptered text:

• Definitions. A "residential heat pump water heater or heat pump HVAC system" means a single system serving one dwelling unit. A "swapout" is a replacement in the same location as the old equipment, and does not include installations needing more than 25 linear feet of new or modified ductwork or a switch between package and split systems.
• Asynchronous inspections. Beginning July 1, 2027, cities and counties must offer inspections that do not require the contractor and inspector to be present at the same time.
• One permit. On or before January 1, 2028, a jurisdiction may require up to one nondiscretionary permit per installation, with exceptions for panel work, structural work, or a written finding of a specific adverse health or safety impact.
• Online automated permits. On or before July 1, 2028, larger jurisdictions must offer real-time online permits to licensed contractors for qualifying swapouts that need no new panel or structural work.
• Local limits. Local setback standards cannot exceed 3 feet in side yards and backyards or 10 feet in front yards. Noise standards for inverter-based equipment cannot be set less than 15 decibels above the limits that apply to non-inverter equipment. Site plans cannot be required for a swapout.
• Plug-in window units. No permit or inspection may be required for plug-in window air conditioners or window heat pumps that are 120 volts or less, self-contained, and need no dedicated circuit, panel upgrade, drainage, or structural change.
• Fees. Permit fees are capped at $150 for a heat pump water heater and $200 for a heat pump HVAC system, unless the jurisdiction adopts a finding with substantial evidence of a higher reasonable cost.
• Exemptions and scope. Cities under 5,000 people and counties under 150,000 are exempt from the automated-permit, website, and fee provisions. The chapter does not apply to new residential construction.

Timeline

How SB 222 Fits With AB 1684

A heat pump that provides cooling is also a cooling system under AB 1684. The two laws overlap, and each has its own text, so a board should apply both. Whether AB 1684's penalty and fee provisions reach a dispute about a heat pump used for cooling is not answered by either statute. We treat it as an open question and recommend that associations avoid putting themselves in that position by drafting one policy that covers cooling, heat pumps, and gas-to-electric replacement together.

Related California Law

• Civil Code 4760: owners may make improvements within their separate interest, subject to the governing documents and applicable law, and exterior changes still follow the governing documents.
• Civil Code 4765: the architectural review procedures an association must follow when it reviews a proposed change.
• Civil Code 4360: the rule-change procedure, including 28 days' general notice before adopting a rule change and notice within 15 days after.
• Civil Code 5975: enforcement of the governing documents.
• Case law: before statutes like this one, courts deferred heavily to recorded restrictions. See how California courts treated those restrictions, and compare the Legislature's approach to EV charging station protections.

Board Checklist Before January 1, 2027

• Search the CC&Rs, rules, and architectural guidelines for language touching gas appliances, water heaters, furnaces, air conditioning, condensers, noise, and screening.
• Identify provisions that will be void under section 4737. The section voids them by its own terms, but leaving them in the documents invites confusion. Ask counsel what amendment or board action is available to remove or neutralize them.
• Keep only placement, noise, and screening conditions that you can justify as legal, health and safety, or damage-prevention measures, and that do not operate as a prohibition. Compare any local noise or setback limits with the state limits above.
• Update the architectural application to ask only for permit status, safety information, and common-area impact.
• Add a damage-responsibility acknowledgment for work touching common area, exclusive use common area, or another unit.
• If you change a rule, follow the rule-change notice process in Civil Code 4360.
• For older multi-story buildings, ask an electrician about panel capacity and shared conduit before the first request arrives, so your response is informed rather than reactive.

Frequently Asked Questions

When does SB 222 take effect for HOAs?

Civil Code section 4737 takes effect January 1, 2027. The city and county permitting provisions start on later dates, from July 1, 2027 through July 1, 2028.

Does SB 222 apply to every California HOA?

It is added to the Davis-Stirling Act, so it applies to common interest developments covered by the Act.

Can the HOA still require an architectural application for a heat pump?

The statute does not prohibit review for the purposes it recognizes: legal compliance, permits, health and safety, and responsibility for damage. A review process that works as a veto, or that adds cost and delay to discourage the project, does not fit the statute.

Can the HOA charge a fee or choose the contractor?

No. Section 4737(b)(2) bars the association from charging a fee in connection with a heat pump installation, upgrade, replacement, or use, and from requiring a specific contractor or product.

Can the HOA require removal of an existing heat pump?

No, unless the association establishes one of the two exceptions: the installation violates law, or a required permit was not granted.

Does the statute cover the outdoor condenser?

A heat pump HVAC system includes its outdoor equipment, so placement rules for the condenser are covered. Placement conditions tied to code, safety, or damage prevention are on firmer ground than purely aesthetic ones, and a placement rule that leaves no workable option is likely to be treated as a restriction. This point has not been tested.

What if the equipment sits in an exclusive use common area?

The damage provision expressly mentions exclusive use common area, so the owner can be held responsible for repairing damage there.

Is there a penalty if an association ignores 4737?

The section itself states none. See the discussion above on how owners may enforce it.

Where This Comes From

The text above comes from the chaptered bill, read together with the Assembly Local Government Committee analysis dated July 1, 2026. You can read the official bill on the California Legislative Information site. Earlier 2025 versions of the bill stalled, as covered in our legislation overview. See also the 2027 California HOA laws overview. Where this article says "our reading" or "open question," that is APM's interpretation rather than settled law.

APM manages community associations throughout the Bay Area. See our California board and homeowner resources, the California communities we serve, or contact APM to talk through how these changes affect your association.

Legal disclaimer: This article is general information, not legal advice. Confirm the current statute text and how it applies to your governing documents with a licensed California attorney before acting.