New Davis-Stirling Act Signed into Law

AB 805 takes effect on January 1, 2014, and comprehensively reorganizes and recodifies the Davis-Stirling Common Interest Development Act. The bill also revises and recasts provisions regarding notices and their delivery, standardizes terminology, establish guidelines on the relative authority of governing documents, and establish a single procedure for amendment of a common interest declaration. The bill also establishes an express list of conflicts of interest that may disqualify members of a board of directors of an association that manages a common interest development from voting on certain matters.

Governor Brown recently signed AB 805 and AB 806 into law.

AB 805 takes effect on January 1, 2014, and comprehensively reorganizes and recodifies the Davis-Stirling Common Interest Development Act. The bill also revises and recasts provisions regarding notices and their delivery, standardizes terminology, establish guidelines on the relative authority of governing documents, and establish a single procedure for amendment of a common interest declaration. The bill also establishes an express list of conflicts of interest that may disqualify members of a board of directors of an association that manages a common interest development from voting on certain matters. The bill also, among other things, revises provisions related to elections and voting, establish standards for the retention of records, and broadens the requirement that liens recorded by the association in error be released.

AB 806 deletes all of the existing cross-references to the Davis- Stirling Act in other code sections and replaces them with the new code sections created by AB 805.

Stay tuned for more details on what specific new changes the new law brings for community associations. While we are sure the signing of the new bill will raise some questions, there are no earth shattering changes, and managers and boards can rest assured that the changes are manageable. We will be preparing a guide to the new Davis-Stirling Act to help managers and boards understand the new law. Make sure to stay tuned to HOABrief.com, or sign up for our email newsletters to stay current on laws impacting California community associations.

Author: Robert M. DeNichilo

I am a partner in the law firm Nordberg|DeNichilo, LLP., specializing in the representation of community associations throughout southern California, For more information, please visit our web site at NDHOALaw.com.