If you are an HOA board member or live in an HOA listen up! Things have changed greatly in the past few years, especially after COVID-19. The California Legislature has been very busy enacting laws that may affect you or someone you know. There are (3) important laws that recently have come into effect.
1. SB 326 Deck and Balcony Inspections
2. AB 3088 The Covid 19 Tenant Relief Act
3. AB 1382 Rental Restrictions
SB 326: Condominium associations with three or more units must conduct a structural inspection every nine years. The new inspection requirements do not change who is responsible to maintain, repair or replace balconies or other elevated structures. The statute imposes additional inspection and repair obligations on HOAs as to balconies and/or elevated structures which associations are already obligated to maintain, repair, or replace.
The law enacted by the California Legislature took effect January 1, 2020. It accomplishes 3 main objectives: 1) it requires associations to conduct mandatory inspections for exterior elevated elements, such as decks, balconies, and walkways; 2) it invalidates and prohibits provisions in an associations governing documents that restrict the board’s authority to initiate a legal proceeding against a developer for substandard construction; and 3) it requires an association to discuss with the membership the potential impacts of a construction defect action against the developer prior to the initiation of such an action.
AB 3088: Effective August 31, 2020 the COVID-19 Tenant Relief Act of 2020 (“CTRA”) enacted temporary protections from eviction for residents unable to pay rent and other charges due between March 2020 and June 2021 due to circumstances directly related to the COVID-19 pandemic. It also extends the “just cause” protections of the Tenant Protection Act of 2019, commonly known as AB 1482, to all properties through July 1, 2021. Landlords are also prohibited from using non-payment of COVID-19 rental debt to disqualify applicants for rent housing and as grounds for non-renewal of tenancy.
The bottom line here is AB 3088 limits a landlord’s ability to evict a tenant for non-payment of rent due from March 1, 2020 to January 31, 2021, if the tenant has experienced a financial hardship related to COVID-19.
AB 1382 Rental Restrictions: Effective January 1, 2021 the new law allows associations to prohibit short term rentals of thirty days or less, and to enforce a cap on rentals of twenty-five percent or more of the units in the association. All associations are required to fully comply with AB 3182, In addition, any associations with conflicting provisions in their governing documents are required to amend those documents by no later than December 31, 2021.
There are civil penalties for noncompliance built into the statute, and actual damages are available to offended parties. More specifically, Assembly Bill 3182 makes the following changes to the California Civil Code:
AB 3182 adds an entirely new section to the Davis-Stirling Act, a condominium or stock cooperative association may not unreasonably restrict the rental or leasing of the owner’s unit. A planned development association may not unreasonably restrict the rental or leasing of any of the owner’s individual lot, including the residence, ADU, or JADU.
An association also may not restrict the rental or leasing of a lot or unit to less than twenty-five percent of the total lots or units, however a higher percentage is allowed. This rental cap applies to all associations, including condominiums, stock cooperatives, and planned developments, but the rental of an ADU or JADU in a planned development will not count toward the cap. (source. Roseman Law APC)
While these new laws my not affect you directly, if you are a director on the board of an association you should ask your management company for guidance in these areas.
Want to learn more about how California law changes will affect your association? Contact us!