HOA Elections in California: What Boards Must Know Under SB 323

California HOA Elections Are Different

If you manage an HOA in any other state and then move to California, the election requirements will surprise you. California's Civil Code — significantly strengthened by SB 323 in 2020 — imposes detailed, mandatory procedures on HOA board elections. Non-compliance doesn't just risk a procedural challenge — it can result in a court invalidating your election results entirely.

This guide covers what California law requires, what your governing documents may add, and how to run a compliant election from start to finish.

What SB 323 Changed

SB 323, which took effect January 1, 2020, made sweeping changes to California HOA election law under Civil Code Section 5100 and related sections. The major changes include:

**Inspector of elections requirement.** All elections must now use an independent third-party inspector of elections — an individual or company not affiliated with the board or any candidate. The inspector manages the election, receives ballots, and counts them independently.

**Expanded candidate eligibility.** Associations can no longer disqualify candidates based on rental status or for failing to meet certain requirements. The list of permissible disqualification criteria is now defined by statute, not the association.

**Secret ballot requirement.** All elections must use a dual-envelope system. The member's identity is on the outer envelope; the ballot is sealed in an inner envelope. The inspector doesn't open inner envelopes until vote counting, preserving ballot secrecy.

**30-day candidate nomination window.** Associations must open a minimum 30-day candidate nomination period before ballots are distributed.

**Ballots valid 90 days.** Once distributed, ballots must be accepted for at least 30 days and the election term lasts up to 90 days.

The California HOA Election Timeline

**Step 1: Notice of election (at least 30 days before ballots are distributed)** — Notify all members that an election is upcoming, describe the positions being elected, and open the candidate nomination period.

**Step 2: Appoint an inspector of elections** — The board must appoint an inspector before distributing ballots. The inspector can be an individual owner (who is not a candidate or board member) or a third-party professional service. Using a professional inspector eliminates many compliance risks.

**Step 3: Candidate nomination closes** — Collect all candidate nominations. At this point, you should also run the eligibility check under Civil Code 5105(b) — are there any permissible disqualification criteria that apply?

**Step 4: Distribute ballots** — The inspector distributes dual-envelope ballots to all members of record. The outer envelope bears the member's name; the inner envelope is blank. Include a return address (to the inspector or a P.O. Box, not the management office or a board member's home).

**Step 5: Voting period** — Ballots must be accepted for at least 30 days. Typically associations run 30 to 45 day voting windows.

**Step 6: Ballot counting** — The inspector counts ballots at the annual meeting or a designated counting meeting. Members have the right to attend. The inspector opens outer envelopes, verifies membership, then opens inner envelopes to count ballots.

**Step 7: Certification and recording** — Results are certified by the inspector. The board records election results in meeting minutes. New board members take office per the governing documents.

Who Can Be on the Ballot?

California Civil Code Section 5105 defines the permissible grounds for disqualifying a candidate. An association may disqualify a candidate only if:

• They are not a member of the association (or do not hold the right ownership interest required by the governing documents)
• They have a judgment lien against their separate interest
• They are co-owners with a current board member (if governing documents restrict this)
• They have been convicted of certain felonies related to financial fraud against an HOA

Associations can no longer require candidates to be current on assessments as a condition for running (though delinquent homeowners may lose voting rights under the governing documents).

The Inspector of Elections: Why This Matters

The inspector of elections is not a formality. Under California law, the inspector's independent certification of the election process is what makes the election legally valid. An election conducted without an inspector — or with an inspector who is disqualified (an affiliate of the board, a candidate, or a management company employee in some circumstances) — can be challenged and invalidated.

Using a professional third-party inspector service eliminates the most common compliance risks. Professional inspectors are familiar with the dual-envelope process, ballot validation requirements, and vote counting procedures. The cost is typically modest relative to the risk of an invalidated election.

Common Election Mistakes That Lead to Challenges

**Using the wrong inspector.** A board member's spouse or a property management company employee is generally not a permissible inspector. California law requires genuine independence.

**Skipping the nomination window.** The 30-day candidate nomination period is mandatory. Opening nominations at the annual meeting is not compliant.

**Using a single envelope system.** California requires dual-envelope ballots. Single-envelope systems don't preserve ballot secrecy as required.

**Counting ballots before the designated time.** Ballots must be counted at the designated meeting, in the presence of members who wish to attend.

**Sending ballots to outdated addresses.** Every member of record must receive a ballot. Maintain current member mailing addresses.

What If Someone Challenges the Election?

California Civil Code Section 5145 gives any member the right to petition the court to void an election if proper procedures were not followed. The filing window is one year from the date of the election.

A successful challenge can result in the court ordering a new election — and potentially awarding attorney's fees against the association.

The best defense against election challenges is meticulous procedure compliance and independent inspector certification.

Association Property Managers and California Elections

We manage California communities throughout the Bay Area and are current on all SB 323 requirements. Our management services include election planning support, inspector of elections coordination, and ballot management. If your board needs help running a compliant election, contact us.

Frequently Asked Questions

Do small California HOAs have to follow SB 323?

Yes. SB 323 applies to all common interest developments governed by the Davis-Stirling Act, regardless of size. There is no small-association exemption.

Can the management company serve as inspector of elections?

This is a frequently asked question with a nuanced answer. California law prohibits the inspector from being a candidate, a director, or an employee of the association. A management company employee's eligibility depends on whether the management company is considered an employee of the association. To avoid any challenge, most associations use an independent third-party inspector rather than their management company.

What if nobody wants to run for the board?

If the number of qualified candidates is equal to or less than the number of positions available, California law allows the board to appoint candidates to fill the seats without a full election. However, the nomination period and proper notice must still be completed.

Can we conduct elections electronically?

California law allows electronic voting with appropriate safeguards that maintain ballot secrecy and member verification. This requires advance notice, member consent, and a compliant electronic voting platform. Boards considering electronic voting should consult with HOA counsel before changing their election procedures.