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There is a New Day Care Home in the Association. What can the Board Do?

Day careAssociations cannot prevent the running of a day care at a residence in the Association. As a matter of public policy, under Health and Safety code section 1597.40(a), children in a day care home are to be provided the same environment as is provided in a traditional home setting. As a result, the California legislature has declared day care centers in residential single-family homes cannot be prohibited, and determined than any restrictions that directly or indirectly limit the acquisition, use, or occupancy of property for a family day care home for children are invalid and unenforceable. H&S §1597.40(c). A “day care home” is defined as one that regularly provides care, protection, and supervision for 14 or fewer children for periods of less than 24 hours per day.” H&S §1596.78(a).

While they cannot be prohibited, Day Care homes are subject to reasonable regulations. Such regulations can include the following:


Posted in Governance.

Are you Giving Proper Notice When Using Reserves to Pay for Litigation?

NoticeHappy New Year! As we enter 2014, there have been some significant changes in community association laws in California (Click Here for our 2013 Legislative Update). Not the least of which is the restating of the Davis-Stirling Act. While we have already addressed the most significant changes in the new Davis-Stirling Act (Click Here for our Guide to the New Davis-Stirling Act), now that the revision has taken effect, and we are dealing with the new law on a day-to-day basis, new issues are being discovered which were not anticipated. As these issues pop-up, we will be writing on them to bring them to light, and provide some guidance on how to address these new issues.

Of course we couldn’t get far into the new year without the first of these “unforeseen” issues already coming to our attention. This one courtesy of Cathy Acquazzino of Progressive Community Management. Cathy noticed that under the “old version of the Davis-Stirling Act, when an association used funds from reserves to pay for litigation, the association was required to give notice of that decision to its members in the “next available mailing.” (Old Civil Code section 1365.5(d)). This language set the time period within which the board had to notify its members of the use of reserve funds to pay for litigation.

Under the new Davis-Stirling Act, 1365.5(d) is restated in Civil Code section 5520. One of the changes from the old language in this section is the elimination of the phrase that notice of the board’s decision to use reserve funds to pay for litigation must be given in the “next available mailing.” Instead, section 5520 simply states that the association “shall provide general notice pursuant to Section 4045 of that decision, and of the availability of an accounting of those expenses.”


Posted in Governance, News, Reserves.

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2013 Legislative Update for California Community Associations

Photo-Legislative-Update-22013 Proved to be a relatively quiet year for legislation for community associations. However, that does not mean that 2014 does not bring some drastic changes.  

1. AB 805 – Restated Davis-Stirling Act

AB 805 enacted in 2012 reorganized and restated the Davis-Stirling Act and moved it to a new part of the California Civil Code. While there are some changes to the Davis-Stirling act as a result of AB 805, most of the changes are relatively benign as this was designed to be a non-controversial matter. We have already written about the more significant changes coming with the restated Davis-Stirling act, and you can find our detailed article, “Guide to the Davis-Stirling Act Reorganization (AB 805)“, or click here to download a PDF version of that article.

2. SB 745 – Davis-Stirling Restatement Clean-up Legislation

SB 745 is a multi-issue omnibus bill, and as it relates to community associations primarily acts to “clean up” some issues related to the reorganizing of the Davis-Stirling Common Interest Development Act, which becomes effective on Jan. 1, 2014. As enacted in 2012, AB 805 reorganized and rewrote the Davis-Stirling Act in a new part of the California Civil Code. As often happens with such a significant undertaking, items are inadvertently omitted, or changes in the law are not incorporated in time to be included in the bill. SB 745 serves to rectify those types of issues.


Posted in Governance, News, Pending legislation.

Robert M. DeNichilo’s article “Yay! I’m on the Board or OMG, What did I get myself into?” Appears in Connect Magazine

CAI GRIE Connect Issue 3 2013 - Yay I'm on the BoardRobert M. DeNichilo’s article on on homeowner association board member duties and obligations entitled “Yay! I’m on the Board or OMG, What did I get myself into?” was recently published by CAI’s Greater Inland Empire Chapter’s Connect Magazine. You can read the original article here, or click here to download the version which was published in Connect Magazine.

Posted in News.

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Guest Post at the CLAC Blog regarding the signing of the “Clean Up” Legislation for Revised Davis-Stirling Act

CLAC - SB 745I recently submitted a guest post on the CAI California Legislative Action Committee (CLAC) blog regarding  SB 745, the “clean up legislation for the revised Davis-Stirling Act, which goes into law on January 1, 2014. You can read the post and my analysis of how SB 745 addresses several omissions from the revised Davis-Stirling Act here.

If you would like additional information on the revised Davis-Stirling Act, and what changes will take effect in the new year, please read my post “A Guide to the Revised Davis-Stirling Act (AB 805)

Posted in News.