Remote HOA Management in California

Reinforced AB 3182 (2020) by prohibiting HOAs from adopting rules that effectively ban rentals of accessory dwelling units or junior ADUs. Associations may not require owner-occupancy as a condition of renting an ADU. Any covenant, rule, or regulation that conflicts with this provision is void and unenforceable.

Strengthened financial oversight requirements for California community associations. Required associations with annual assessments over $75,000 to use two-signature approval for disbursements over $10,000. Expanded reserve fund requirements and tightened the definition of what constitutes a proper reserve expenditure under Civil Code § 5510.

Beginning January 1, 2022, all California HOAs with 50 or more separate interests must use a third-party Inspector of Elections for board elections. The Inspector must be an independent third party — not a board member, officer, or management company employee. Associations must adopt election rules complying with Civil Code § 5100–5135 or face member challenges.

Prohibited California HOAs from adopting rules that impose rental caps below 25% of units or that restrict rentals to less than 30 days on platforms such as Airbnb — unless such restrictions were in place before January 1, 2022 or were adopted by member vote with the required supermajority. Extended ADU rental protections and clarified that owner-occupancy requirements cannot apply to ADU units.

Permitted local agencies to allow ADUs to be sold separately as condominiums from the primary unit, effective with a local ordinance opt-in. HOAs in jurisdictions that adopt this provision may need to amend their governing documents to address separately owned ADU condominiums within the development.

SB 326 (2019) became fully effective for all California condominium associations: associations with 3 or more units must now have all exterior elevated elements (balconies, decks, walkways, stairways) inspected by a licensed structural engineer or architect. The first inspection was due January 1, 2025. A written report must be filed, and repairs must begin within 180 days of discovery of a threat to life safety.

Amended Civil Code § 5105 to clarify candidate nomination procedures for HOA elections, including deadlines for submitting candidate statements and the rights of write-in candidates. Associations must update their election rules to reflect the revised nomination timelines.

Enhanced California reserve study requirements by requiring a full reserve study (not just an update) every 3 years for associations with over 100 units. The study must include a 30-year projection of reserve needs and a funding plan. Annual reserve funding disclosures to members were also expanded.

The California Bureau of Real Estate completed its feasibility study on licensing requirements for HOA managers, with legislation expected in 2026. Boards should expect professional management licensing requirements similar to Nevada's to take effect within the next 1-2 legislative cycles.

Updated California's attorney fee reciprocity provision in Davis-Stirling enforcement actions, clarifying that prevailing parties in enforcement disputes — whether associations or homeowners — are entitled to reasonable attorney fees. Courts have applied this provision to make boards more cautious about frivolous enforcement actions.