New 2014 Davis Stirling Act (Part 1)
CALIFORNIA CIVIL CODE SECTIONS 4000-6150
TABLE OF CONTENTS
CHAPTER 1. GENERAL PROVISIONS
Article 1. Preliminary Provisions §§ 4000 to 4070
Article 2. Definitions §§ 4075 to 4190
CHAPTER 2. APPLICATION OF ACT
§§ 4200 to 4202
CHAPTER 3. GOVERNING DOCUMENTS
Article 1. General Provisions §§ 4205 to 4235
Article 2. Declaration §§ 4250 to 4275
Article 3. Articles of Incorporation §§ 4280 to 4365
Article 4. Condominium Plan §§ 4285 to 4295
Article 5. Operating Rules §§ 4340 to 4365
CHAPTER 4. OWNERSHIP AND TRANSFER OF INTERESTS
Article 1. Ownership Rights and Interests §§ 4500 to 4510
Article 2. Transfer Disclosure §§ 4525 to 4545
Article 3. Transfer Fee §§ 4575 to 4580
Article 4. Restrictions on Transfers §§ 4600 to 4615
Article 5. Transfer of Separate Interest §§ 4625 to 4650
CHAPTER 5. PROPERTY USE AND MAINTENANCE
Article 1. Use of Separate Interest §§ 4700 to 4730
Article 2. Modification of Separate Interest §§ 4760 to 4765
Article 3. Maintenance §§ 4775 to 4790
CHAPTER 6. ASSOCIATION GOVERNANCE
Article 1. Association Existence and Powers §§ 4800 to 4820
Article 2. Board Meeting §§ 4900 to 4955
Article 3. Member Meeting § 5000
Article 4. Member Election §§ 5100 to 5145
Article 5. Record Inspection §§ 5200 to 5240
Article 6. Record Keeping § 5260
Article 7. Annual Reports §§ 5300 to 5320
Article 8. Conflict of Interest § 5350
Article 9. Managing Agent §§ 5370 to 5385
Article 10. Government Assistance §§ 5400 to 5405
CHAPTER 7. FINANCES
Article 1. Accounting § 5550
Article 2. Use of Reserve Funds §§ 5510 to 5520
Article 3. Reserve Planning §§ 5550 to 5570
CHAPTER 8. ASSESSMENTS AND ASSESSMENT COLLECTION
Article 1. Establishment and Imposition of Assessments §§ 5600 to 5625
Article 2. Assessment Payment and Delinquency §§ 5650 to 5690
Article 3. Assessment Collection §§5700 to 5735
CHAPTER 9. INSURANCE AND LIABILITY
§§ 5800 to 5810
CHAPTER 10. DISPUTE RESOLUTION AND ENFORCEMENT
Article 1. Discipline and Cost Reimbursemen §§ 5850 to 5865
Article 2. Internal Dispute Resolution §§ 5900 to 5920
Article 3. Alternative Dispute Resolution Prerequisite to Civil Action §§ 5925 to 5965
Article 4. Civil Actions §§ 5975 to 5985
CHAPTER 11. CONSTRUCTION DEFECT LITIGATION
§§ 6000 to 6150
CHAPTER 1. GENERAL PROVISIONS
ARTICLE 1. Preliminary Provisions
4000. This part shall be known and may be cited as the Davis-Stirling Common Interest Development Act. In a provision of this part, the part may be referred to as the act.
4005. Division, part, title, CHAPTER, and ARTICLE headings do not in any manner affect the scope, meaning, or intent of this act.
4010. Nothing in the act that added this part shall be construed to invalidate a document prepared or action taken before January 1, 2014, if the document or action was proper under the law governing common interest developments at the time that the document was prepared or the action was taken. For the purposes of this section, “document” does not include a governing document.
4020. Unless a contrary intent is clearly expressed, a local zoning ordinance is construed to treat like structures, lots, parcels, areas, or spaces in like manner regardless of the form of the common interest development.
4035.
(a) If a provision of this act requires that a document be delivered to an association, the document shall be
delivered to the person designated in the annual policy statement, prepared pursuant to Section 5310, to receive documents on behalf of the association. If no person has been designated to receive documents, the document shall be delivered to the president or secretary of the association.
(b) A document delivered pursuant to this section may be delivered by any of the following methods:
(1) By e-mail, facsimile, or other electronic means, if the association has assented to that method of delivery.
(2) By personal delivery, if the association has assented to that method of delivery. If the association accepts a document by personal delivery it shall provide a written receipt acknowledging delivery of the document.
4040.
(a) If a provision of this act requires that an association deliver a document by “individual delivery” or “individual
notice,” the document shall be delivered by one of the following methods:
(1) First-class mail, postage prepaid, registered or certified mail, express mail, or overnight delivery by an express service carrier. The document shall be addressed to the recipient at the address last shown on the books of the association.
(2) E-mail, facsimile, or other electronic means, if the recipient has consented, in writing, to that method of delivery. The consent may be revoked, in writing, by the recipient.
(b) Upon receipt of a request by a member, pursuant to Section 5260, identifying a secondary address for delivery of notices of the following types, the association shall deliver an additional copy of those notices to the secondary address identified in the request:
(1) The documents to be delivered to the member pursuant to ARTICLE 7 (commencing with Section 5300) of
CHAPTER 6.
(2) The documents to be delivered to the member pursuant to ARTICLE 2 (commencing with Section 5650) of
CHAPTER 8, and Section 5710.
(c) For the purposes of this section, an unrecorded provision of the governing documents providing for a particular method of delivery does not constitute agreement by a member to that method of delivery.
4045.
(a) If a provision of this act requires “general delivery” or “general notice,” the document shall be provided by one
or more of the following methods:
(1) Any method provided for delivery of an individual notice pursuant to Section 4040.
(2) Inclusion in a billing statement, newsletter, or other document that is delivered by one of the methods provided in this section.
(3) Posting the printed document in a prominent location that is accessible to all members, if the location has been designated for the posting of general notices by the association in the annual policy statement, prepared pursuant to Section 5310.
(4) If the association broadcasts television programming for the purpose of distributing information on association business to its members, by inclusion in the programming.
(b) Notwithstanding subdivision (a), if a member requests to receive general notices by individual delivery, all general notices to that member, given under this section, shall be delivered pursuant to Section 4040. The option provided in this subdivision shall be described in the annual policy statement, prepared pursuant to Section 5310.
4050.
(a) This section governs the delivery of a document pursuant to this act.
(b) If a document is delivered by mail, delivery is deemed to be complete on deposit into the United States mail. (c) If a document is delivered by electronic means, delivery is complete at the time of transmission.
4055. If the association or a member has consented to receive information by electronic delivery, and a provision of this act requires that the information be in writing, that requirement is satisfied if the information is provided in an electronic record capable of retention by the recipient at the time of receipt. An electronic record is not capable of retention by the recipient if the sender or its information processing system inhibits the ability of the recipient to print or store the electronic record.
4065. If a provision of this act requires that an action be approved by a majority of all members, the action shall be approved or ratified by an affirmative vote of a majority of the votes entitled to be cast.
4070. If a provision of this act requires that an action be approved by a majority of a quorum of the members, the action shall be approved or ratified by an affirmative vote of a majority of the votes represented and voting at a duly held meeting at which a quorum is present, which affirmative votes also constitute a majority of the required quorum.
ARTICLE 2. Definitions
4075. The definitions in this ARTICLE govern the construction of this act.
4076. “Annual budget report” means the report described in Section 5300.
4078. “Annual policy statement” means the statement described in Section 5310.
4080. “Association” means a nonprofit corporation or unincorporated association created for the purpose of managing a common interest development.
4085. “Board” means the board of directors of the association.
4090. “Board meeting” means either of the following:
(a) A congregation, at the same time and place, of a sufficient number of directors to establish a quorum of the board, to hear, discuss, or deliberate upon any item of business that is within the authority of the board.
(b) A teleconference, where a sufficient number of directors to establish a quorum of the board, in different locations, are connected by electronic means, through audio or video, or both. A teleconference meeting shall be conducted in a manner that protects the rights of members of the association and otherwise complies with the requirements of this act. Except for a meeting that will be held solely in executive session, the notice of the teleconference meeting shall identify at least one physical location so that members of the association may attend, and at least one director shall be present at that location. Participation by directors in a teleconference meeting constitutes presence at that meeting as long as all directors participating are able to hear one another, as well as members of the association speaking on matters before the board.
4095.
(a) “Common area” means the entire common interest development except the separate interests therein. The
estate in the common area may be a fee, a life estate, an estate for years, or any combination of the foregoing.
(b) Notwithstanding subdivision (a), in a planned development described in subdivision (b) of Section 4175, the common area may consist of mutual or reciprocal easement rights appurtenant to the separate interests.
4100. “Common interest development” means any of the following: (a) A community apartment project.
(b) A condominium project. (c) A planned development. (d) A stock cooperative.
4105. “Community apartment project” means a development in which an undivided interest in land is coupled with the right of exclusive occupancy of any apartment located thereon.
4110.
(a) “Community service organization or similar entity” means a nonprofit entity, other than an association, that is
organized to provide services to residents of the common interest development or to the public in addition to the residents, to the extent community common area or facilities are available to the public.
(b) “Community service organization or similar entity” does not include an entity that has been organized solely to raise moneys and contribute to other nonprofit organizations that are qualified as tax exempt under Section 501 (c)
(3) of the Internal Revenue Code and that provide housing or housing assistance.
4120. “Condominium plan” means a plan described in Section 4285.
4125.
(a) A “condominium project” means a real property development consisting of condominiums.
(b) A condominium consists of an undivided interest in common in a portion of real property coupled with a
separate interest in space called a unit, the boundaries of which are described on a recorded final map, parcel map, or condominium plan in sufficient detail to locate all boundaries thereof. The area within these boundaries may be filled with air, earth, water, or fixtures, or any combination thereof, and need not be physically attached to land except by easements for access and, if necessary, support. The description of the unit may refer to (1) boundaries described in the recorded final map, parcel map, or condominium plan, (2) physical boundaries, either in existence, or to be constructed, such as walls, floors, and ceilings of a structure or any portion thereof, (3) an entire structure containing one or more units, or (4) any combination thereof.
(c) The portion or portions of the real property held in undivided interest may be all of the real property, except for the separate interests, or may include a particular three-dimensional portion thereof, the boundaries of which are described on a recorded final map, parcel map, or condominium plan. The area within these boundaries may be filled with air, earth, water, or fixtures, or any combination thereof, and need not be physically attached to land except by easements for access and, if necessary, support.
(d) An individual condominium within a condominium project may include, in addition, a separate interest in other portions of the real property.
4130. “Declarant” means the person or group of persons designated in the declaration as declarant, or if no declarant is designated, the person or group of persons who sign the original declaration or who succeed to special rights, preferences, or privileges designated in the declaration as belonging to the signator of the original declaration.
4135. “Declaration” means the document, however denominated, that contains the information required by Sections 4250 and 4255.
4140. “Director” means a natural person who serves on the board.
4145.
(a) “Exclusive use common area” means a portion of the common area designated by the declaration for the
exclusive use of one or more, but fewer than all, of the owners of the separate interests and which is or will be appurtenant to the separate interest or interests.
(b) Unless the declaration otherwise provides, any shutters, awnings, window boxes, doorsteps, stoops, porches, balconies, patios, exterior doors, doorframes, and hardware incident thereto, screens and windows or other fixtures designed to serve a single separate interest, but located outside the boundaries of the separate interest, are exclusive use common area allocated exclusively to that separate interest.
(c) Notwithstanding the provisions of the declaration, internal and external telephone wiring designed to serve a single separate interest, but located outside the boundaries of the separate interest, is exclusive use common area allocated exclusively to that separate interest.
4148. “General notice” means the delivery of a document pursuant to Section 4045.
4150. “Governing documents” means the declaration and any other documents, such as bylaws, operating rules, articles of incorporation, or articles of association, which govern the operation of the common interest development or association.
4153. “Individual notice” means the delivery of a document pursuant to Section 4040.
4155. “Item of business” means any action within the authority of the board, except those actions that the board has validly delegated to any other person or persons, managing agent, officer of the association, or committee of the board comprising less than a quorum of the board.
4158.
(a) A “managing agent” is a person who, for compensation or in expectation of compensation, exercises control
over the assets of a common interest development.
(b) A “managing agent” does not include any of the following:
(1) A regulated financial institution operating within the normal course of its regulated business practice. (2) An attorney at law acting within the scope of the attorney’s license.
4160. “Member” means an owner of a separate interest.
4170. “Person” means a natural person, corporation, government or governmental subdivision or agency, business trust, estate, trust, partnership, limited liability company, association, or other entity.
4175. “Planned development” means a real property development other than a community apartment project, a condominium project, or a stock cooperative, having either or both of the following features:
(a) Common area that is owned either by an association or in common by the owners of the separate interests who possess appurtenant rights to the beneficial use and enjoyment of the common area.
(b) Common area and an association that maintains the common area with the power to levy assessments that may become a lien upon the separate interests in accordance with ARTICLE 2 (commencing with Section 5650) of CHAPTER 8.
4177. “Reserve accounts” means both of the following:
(a) Moneys that the board has identified for use to defray the future repair or replacement of, or additions to, those major components that the association is obligated to maintain.
(b) The funds received, and not yet expended or disposed of, from either a compensatory damage award or settlement to an association from any person for injuries to property, real or personal, arising from any construction or design defects. These funds shall be separately itemized from funds described in subdivision (a).
4178. “Reserve account requirements” means the estimated funds that the board has determined are required to be available at a specified point in time to repair, replace, or restore those major components that the association is obligated to maintain.
4185.
(a) “Separate interest” has the following meanings:
(1) In a community apartment project, “separate interest” means the exclusive right to occupy an apartment, as
specified in Section 4105.
(2) In a condominium project, “separate interest” means a separately owned unit, as specified in Section 4125. (3) In a planned development, “separate interest” means a separately owned lot, parcel, area, or space.
(4) In a stock cooperative, “separate interest” means the exclusive right to occupy a portion of the real property, as specified in Section 4190.
(b) Unless the declaration or condominium plan, if any exists, otherwise provides, if walls, floors, or ceilings are designated as boundaries of a separate interest, the interior surfaces of the perimeter walls, floors, ceilings, windows, doors, and outlets located within the separate interest are part of the separate interest and any other portions of the walls, floors, or ceilings are part of the common area.
(c) The estate in a separate interest may be a fee, a life estate, an estate for years, or any combination of the foregoing.
4190.
(a) “Stock cooperative” means a development in which a corporation is formed or availed of, primarily for the
purpose of holding title to, either in fee simple or for a term of years, improved real property, and all or substantially all of the shareholders of the corporation receive a right of exclusive occupancy in a portion of the real property, title to which is held by the corporation. The owners’ interest in the corporation, whether evidenced by a share of stock, a certificate of membership, or otherwise, shall be deemed to be an interest in a common interest development and a real estate development for purposes of subdivision (f) of Section 25100 of the Corporations Code.
(b) A “stock cooperative” includes a limited equity housing cooperative which is a stock cooperative that meets the criteria of Section 817.
CHAPTER 2. APPLICATION OF ACT
4200. This act applies and a common interest development is created whenever a separate interest coupled with an interest in the common area or membership in the association is, or has been, conveyed, provided all of the following are recorded:
(a) A declaration.
(b) A condominium plan, if any exists.
(c) A final map or parcel map, if Division 2 (commencing with Section 66410) of Title 7 of the Government Code requires the recording of either a final map or parcel map for the common interest development.
4201. Nothing in this act may be construed to apply to a real property development that does not contain common area. This section is declaratory of existing law.
4202.
(a) The following provisions do not apply to a common interest development that is limited to industrial or
commercial uses by zoning or by a declaration of covenants, conditions, and restrictions that has been recorded in the official records of each county in which the common interest development is located:
(1) Section 4275.
(2) ARTICLE 5 (commencing with Section 4340) of CHAPTER 3.
(3) ARTICLE 2 (commencing with Section 4525), and ARTICLE 3 (commencing with Section 4575), of CHAPTER 4. (4) Section 4600.
(5) Section 4740. (6) Section 4765.
(7) Sections 5300, 5305, 5565, and 5810, and paragraph (7) of subdivision (a) of Section 5310. (8) Sections 5500 through 5560, inclusive.
(9) Subdivision (b) of Section 5600. (10) Subdivision (b) of Section 5605.
(b) The Legislature finds that the provisions listed in subdivision (a) are appropriate to protect purchasers in residential common interest developments, however, the provisions may not be necessary to protect purchasers in commercial or industrial developments since the application of those provisions could result in unnecessary burdens and costs for these types of developments.
4205.
CHAPTER 3. GOVERNING DOCUMENTS ARTICLE 1. General Provisions
(a) To the extent of any inconsistency between the governing documents and the law, the law controls.
(b) To the extent of any inconsistency between the articles of incorporation and the declaration, the declaration
controls.
(c) To the extent of any inconsistency between the bylaws and the articles of incorporation or declaration, the articles of incorporation or declaration control.
(d) To the extent of any inconsistency between the operating rules and the bylaws, articles of incorporation, or declaration, the bylaws, articles of incorporation, or declaration control.
4210. In order to facilitate the collection of regular assessments, special assessments, transfer fees as authorized by Sections 4530, 4575, and 4580, and similar charges, the board is authorized to record a statement or amended statement identifying relevant information for the association. This statement may include any or all of the following information:
(a) The name of the association as shown in the declaration or the current name of the association, if different.
(b) The name and address of a managing agent or treasurer of the association or other individual or entity authorized to receive assessments and fees imposed by the association.
(c) A daytime telephone number of the authorized party identified in subdivision (b) if a telephone number is available.
(d) A list of separate interests subject to assessment by the association, showing the assessor’s parcel number or legal description, or both, of the separate interests.
(e) The recording information identifying the declaration governing the association.
(f) If an amended statement is being recorded, the recording information identifying the prior statement or statements which the amendment is superseding.
4215. Any deed, declaration, or condominium plan for a common interest development shall be liberally construed to facilitate the operation of the common interest development, and its provisions shall be presumed to be independent and severable. Nothing in ARTICLE 3 (commencing with Section 715) of CHAPTER 2 of Title 2 of Part 1 of Division 2 shall operate to invalidate any provisions of the governing documents.
4220. In interpreting deeds and condominium plans, the existing physical boundaries of a unit in a condominium project, when the boundaries of the unit are contained within a building, or of a unit reconstructed in substantial accordance with the original plans thereof, shall be conclusively presumed to be its boundaries rather than the metes and bounds expressed in the deed or condominium plan, if any exists, regardless of settling or lateral movement of the building and
regardless of minor variance between boundaries shown on the plan or in the deed and those of the building.
4225.
(a) No declaration or other governing document shall include a restrictive covenant in violation of Section 12955 of
the Government Code.
(b) Notwithstanding any other provision of law or provision of the governing documents, the board, without approval of the members, shall amend any declaration or other governing document that includes a restrictive covenant prohibited by this section to delete the restrictive covenant, and shall restate the declaration or other governing document without the restrictive covenant but with no other change to the declaration or governing document.
(c) If the declaration is amended under this section, the board shall record the restated declaration in each county in which the common interest development is located. If the articles of incorporation are amended under this section, the board shall file a certificate of amendment with the Secretary of State pursuant to Section 7814 of the Corporations Code.
(d) If after providing written notice to an association, pursuant to Section 4035, requesting that the association delete a restrictive covenant that violates subdivision (a), and the association fails to delete the restrictive covenant within
30 days of receiving the notice, the Department of Fair Employment and Housing, a city or county in which a common interest development is located, or any person may bring an action against the association for injunctive relief to enforce subdivision (a). The court may award attorney’s fees to the prevailing party.
4230.
(a) Notwithstanding any provision of the governing documents to the contrary, the board may, after the developer
has completed construction of the development, has terminated construction activities, and has terminated marketing activities for the sale, lease, or other disposition of separate interests within the development, adopt an amendment deleting from any of the governing documents any provision which is unequivocally designed and intended, or which by its nature can only have been designed or intended, to facilitate the developer in completing the construction or marketing of the development. However, provisions of the governing documents relative to a particular construction or marketing phase of the development may not be deleted under the authorization of this subdivision until that construction or marketing phase has been completed.
(b) The provisions which may be deleted by action of the board shall be limited to those which provide for access by the developer over or across the common area for the purposes of (1) completion of construction of the development, and (2) the erection, construction, or maintenance of structures or other facilities designed to facilitate the completion of construction or marketing of separate interests.
(c) At least 30 days prior to taking action pursuant to subdivision (a), the board shall deliver to all members, by individual delivery, pursuant to Section 4040, (1) a copy of all amendments to the governing documents proposed to be adopted under subdivision (a), and (2) a notice of the time, date, and place the board will consider adoption of the amendments. The board may consider adoption of amendments to the governing documents pursuant to subdivision (a) only at a meeting that is open to all members, who shall be given opportunity to make comments thereon. All deliberations of the board on any action proposed under subdivision (a) shall only be conducted in an open meeting.
(d) The board may not amend the governing documents pursuant to this section without the approval of a majority of a quorum of the members, pursuant to Section 4070. For the purposes of this section, “quorum” means more than 50 percent of the members who own no more than two separate interests in the development.
4235.
(a) Notwithstanding any other provision of law or provision of the governing documents, if the governing
documents include a reference to a provision of the Davis-Stirling Common Interest Development Act that was repealed and continued in a new provision by the act that added this section, the board may amend the governing documents, solely to correct the cross-reference, by adopting a board resolution that shows the correction. Member approval is not required in order to adopt a resolution pursuant to this section.
(b) A declaration that is corrected under this section may be restated in corrected form and recorded, provided that a copy of the board resolution authorizing the corrections is recorded along with the restated declaration.
4250.
ARTICLE 2. Declaration
(a) A declaration, recorded on or after January 1, 1986, shall contain a legal description of the common interest
development, and a statement that the common interest development is a community apartment project, condominium project, planned development, stock cooperative, or combination thereof. The declaration shall additionally set forth the name of the association and the restrictions on the use or enjoyment of any portion of the common interest development that are intended to be enforceable equitable servitudes.
(b) The declaration may contain any other matters the declarant or the members consider appropriate.
4255.
(a) If a common interest development is located within an airport influence area, a declaration, recorded after
January 1, 2004, shall contain the following statement:
“NOTICE OF AIRPORT IN VICINITY
This property is presently located in the vicinity of an airport, within what is known as an airport influence area. For that
reason, the property may be subject to some of the annoyances or inconveniences associated with proximity to airport operations (for example: noise, vibration, or odors). Individual sensitivities to those annoyances can vary from person to person. You may wish to consider what airport annoyances, if any, are associated with the property before you complete your purchase and determine whether they are acceptable to you.”
(b) For purposes of this section, an “airport influence area,” also known as an “airport referral area,” is the area in which current or future airport-related noise, overflight, safety, or airspace protection factors may significantly affect land uses or necessitate restrictions on those uses as determined by an airport land use commission.
(c) If a common interest development is within the San Francisco Bay Conservation and Development Commission jurisdiction, as described in Section 66610 of the Government Code, a declaration recorded on or after January 1, 2006, shall contain the following notice:
“NOTICE OF SAN FRANCISCO BAY CONSERVATION AND DEVELOPMENT COMMISSION JURISDICTION
This property is located within the jurisdiction of the San Francisco Bay Conservation and Development Commission. Use and development of property within the commission’s jurisdiction may be subject to special regulations, restrictions, and permit requirements. You may wish to investigate and determine whether they are acceptable to you and your intended use of the property before you complete your transaction.”
(d) The statement in a declaration acknowledging that a property is located in an airport influence area or within the jurisdiction of the San Francisco Bay Conservation and Development Commission does not constitute a title defect, lien, or encumbrance.
4260. Except to the extent that a declaration provides by its express terms that it is not amendable, in whole or in part, a declaration that fails to include provisions permitting its amendment at all times during its existence may be amended at any time.
4265.
(a) The Legislature finds that there are common interest developments that have been created with deed
restrictions that do not provide a means for the members to extend the term of the declaration. The Legislature further finds that covenants and restrictions contained in the declaration, are an appropriate method for protecting the common plan of developments and to provide for a mechanism for financial support for the upkeep of common area including, but not limited to, roofs, roads, heating systems, and recreational facilities. If declarations terminate prematurely, common interest developments may deteriorate and the housing supply of affordable units could be impacted adversely. The Legislature further finds and declares that it is in the public interest to provide a vehicle for extending the term of the declaration if the extension is approved by a majority of all members, pursuant to Section 4065.
(b) A declaration that specifies a termination date, but that contains no provision for extension of the termination date, may be extended, before its termination date, by the approval of members pursuant to Section 4270.
(c) No single extension of the terms of the declaration made pursuant to this section shall exceed the initial term of the declaration or 20 years, whichever is less. However, more than one extension may occur pursuant to this section.
4270.
(a) A declaration may be amended pursuant to the declaration or this act. Except as provided in Section 4275, an
amendment is effective after all of the following requirements have been met:
(1) The amendment has been approved by the percentage of members required by the declaration and any other person whose approval is required by the declaration.
(2) That fact has been certified in a writing executed and acknowledged by the officer designated in the declaration or by the association for that purpose, or if no one is designated, by the president of the association.
(3) The amendment has been recorded in each county in which a portion of the common interest development is
located.
(b) If the declaration does not specify the percentage of members who must approve an amendment of the
declaration, an amendment may be approved by a majority of all members, pursuant to Section 4065.
4275.
(a) If in order to amend a declaration, the declaration requires members having more than 50 percent of the votes
in the association, in a single class voting structure, or members having more than 50 percent of the votes in more than one class in a voting structure with more than one class, to vote in favor of the amendment, the association, or any member, may petition the superior court of the county in which the common interest development is located for an order reducing the percentage of the affirmative votes necessary for such an amendment. The petition shall describe the effort that has been made to solicit approval of the association members in the manner provided in the declaration, the number of affirmative and negative votes actually received, the number or percentage of affirmative votes required to effect the amendment in accordance with the existing declaration, and other matters the petitioner considers relevant to the court’s determination. The petition shall also contain, as exhibits thereto, copies of all of the following:
(1) The governing documents.
(2) A complete text of the amendment.
(3) Copies of any notice and solicitation materials utilized in the solicitation of member approvals. (4) A short explanation of the reason for the amendment.
(5) Any other documentation relevant to the court’s determination.
(b) Upon filing the petition, the court shall set the matter for hearing and issue an ex parte order setting forth the manner in which notice shall be given.
(c) The court may, but shall not be required to, grant the petition if it finds all of the following:
(1) The petitioner has given not less than 15 days written notice of the court hearing to all members of the association, to any mortgagee of a mortgage or beneficiary of a deed of trust who is entitled to notice under the terms of the declaration, and to the city, county, or city and county in which the common interest development is located that is entitled to notice under the terms of the declaration.
(2) Balloting on the proposed amendment was conducted in accordance with the governing documents, this act, and any other applicable law.
(3) A reasonably diligent effort was made to permit all eligible members to vote on the proposed amendment.
(4) Members having more than 50 percent of the votes, in a single class voting structure, voted in favor of the amendment. In a voting structure with more than one class, where the declaration requires a majority of more than one class to vote in favor of the amendment, members having more than 50 percent of the votes of each class required by the declaration to vote in favor of the amendment voted in favor of the amendment.
(5) The amendment is reasonable.
(6) Granting the petition is not improper for any reason stated in subdivision (e).
(d) If the court makes the findings required by subdivision (c), any order issued pursuant to this section may confirm the amendment as being validly approved on the basis of the affirmative votes actually received during the balloting period or the order may dispense with any requirement relating to quorums or to the number or percentage of votes needed for approval of the amendment that would otherwise exist under the governing documents.
(e) Subdivisions (a) to (d), inclusive, notwithstanding, the court shall not be empowered by this section to approve any amendment to the declaration that:
(1) Would change provisions in the declaration requiring the approval of members having more than 50 percent of the votes in more than one class to vote in favor of an amendment, unless members having more than 50 percent of the votes in each affected class approved the amendment.
(2) Would eliminate any special rights, preferences, or privileges designated in the declaration as belonging to the declarant, without the consent of the declarant.
(3) Would impair the security interest of a mortgagee of a mortgage or the beneficiary of a deed of trust without
the approval of the percentage of the mortgagees and beneficiaries specified in the declaration, if the declaration requires the approval of a specified percentage of the mortgagees and beneficiaries.
(f) An amendment is not effective pursuant to this section until the court order and amendment have been recorded in every county in which a portion of the common interest development is located. The amendment may be acknowledged by, and the court order and amendment may be recorded by, any person designated in the declaration or by the association for that purpose, or if no one is designated for that purpose, by the president of the association. Upon recordation of the amendment and court order, the declaration, as amended in accordance with this section, shall have the same force and effect as if the amendment were adopted in compliance with every requirement imposed by the governing documents.
(g) Within a reasonable time after the amendment is recorded the association shall deliver to each member, by individual delivery, pursuant to Section 4040, a copy of the amendment, together with a statement that the amendment has been recorded.
4280.
ARTICLE 3. Articles of Incorporation
(a) The articles of incorporation of an association filed with the Secretary of State shall include a statement, which
shall be in addition to the statement of purposes of the corporation, that does all of the following:
(1) Identifies the corporation as an association formed to manage a common interest development under the
Davis-Stirling Common Interest Development Act.
(2) States the business or corporate office of the association, if any, and, if the office is not on the site of the common interest development, states the front street and nearest cross street for the physical location of the common interest development.
(3) States the name and address of the association’s managing agent, if any.
(b) The statement filed by an incorporated association with the Secretary of State pursuant to Section 8210 of the Corporations Code shall also contain a statement identifying the corporation as an association formed to manage a common interest development under the Davis-Stirling Common Interest Development Act.
ARTICLE 4. Condominium Plan
4285. A condominium plan shall contain all of the following:
(a) A description or survey map of a condominium project, which shall refer to or show monumentation on the
ground.
(b) A three-dimensional description of a condominium project, one or more dimensions of which may extend for an
indefinite distance upwards or downwards, in sufficient detail to identify the common area and each separate interest.
(c) A certificate consenting to the recordation of the condominium plan pursuant to this act that is signed and acknowledged as provided in Section 4290.
4290.
(a) The certificate consenting to the recordation of a condominium plan that is required by subdivision (c) of
Section 4120 shall be signed and acknowledged by all of the following persons:
(1) The record owner of fee title to that property included in the condominium project.
(2) In the case of a condominium project that will terminate upon the termination of an estate for years, by all lessors and lessees of the estate for years.
(3) In the case of a condominium project subject to a life estate, by all life tenants and remainder interests.
(4) The trustee or the beneficiary of each recorded deed of trust, and the mortgagee of each recorded mortgage encumbering the property.
(b) Owners of mineral rights, easements, rights-of-way, and other nonpossessory interests do not need to sign the certificate.
(c) In the event a conversion to condominiums of a community apartment project or stock cooperative has been approved by the required number of owners, trustees, beneficiaries, and mortgagees pursuant to Section 66452.10 of the Government Code, the certificate need only be signed by those owners, trustees, beneficiaries, and mortgagees approving the conversion.
4295. A condominium plan may be amended or revoked by a recorded instrument that is acknowledged and signed by all the persons who, at the time of amendment or revocation, are persons whose signatures are required under Section 4290.
ARTICLE 5. Operating Rules
4340. For the purposes of this ARTICLE:
(a) “Operating rule” means a regulation adopted by the board that applies generally to the management and operation of the common interest development or the conduct of the business and affairs of the association.
(b) “Rule change” means the adoption, amendment, or repeal of an operating rule by the board.
4350. An operating rule is valid and enforceable only if all of the following requirements are satisfied: (a) The rule is in writing.
(b) The rule is within the authority of the board conferred by law or by the declaration, articles of incorporation or association, or bylaws of the association.
(c) The rule is not inconsistent with governing law and the declaration, articles of incorporation or association, and bylaws of the association.
(d) The rule is adopted, amended, or repealed in good faith and in substantial compliance with the requirements of this ARTICLE.
(e) The rule is reasonable.
4355.
(a) Sections 4360 and 4365 only apply to an operating rule that relates to one or more of the following subjects: (1) Use of the common area or of an exclusive use common area.
(2) Use of a separate interest, including any aesthetic or architectural standards that govern alteration of a
separate interest.
(3) Member discipline, including any schedule of monetary penalties for violation of the governing documents and any procedure for the imposition of penalties.
(4) Any standards for delinquent assessment payment plans.
(5) Any procedures adopted by the association for resolution of disputes.
(6) Any procedures for reviewing and approving or disapproving a proposed physical change to a member’s separate interest or to the common area.
(7) Procedures for elections.
(b) Sections 4360 and 4365 do not apply to the following actions by the board: (1) A decision regarding maintenance of the common area.
(2) A decision on a specific matter that is not intended to apply generally. (3) A decision setting the amount of a regular or special assessment.
(4) A rule change that is required by law, if the board has no discretion as to the substantive effect of the rule
change.
(5) Issuance of a document that merely repeats existing law or the governing documents.
4360.
(a) The board shall provide general notice pursuant to Section 4045 of a proposed rule change at least 30 days
before making the rule change. The notice shall include the text of the proposed rule change and a description of the purpose and effect of the proposed rule change. Notice is not required under this subdivision if the board determines that an immediate rule change is necessary to address an imminent threat to public health or safety or imminent risk of substantial economic loss to the association.
(b) A decision on a proposed rule change shall be made at a board meeting, after consideration of any comments made by association members.
(c) As soon as possible after making a rule change, but not more than 15 days after making the rule change, the
board shall deliver general notice pursuant to Section 4045 of the rule change. If the rule change was an emergency rule change made under subdivision (d), the notice shall include the text of the rule change, a description of the purpose and effect of the rule change, and the date that the rule change expires.
(d) If the board determines that an immediate rule change is required to address an imminent threat to public health or safety, or an imminent risk of substantial economic loss to the association, it may make an emergency rule change, and no notice is required, as specified in subdivision (a). An emergency rule change is effective for 120 days, unless the rule change provides for a shorter effective period. A rule change made under this subdivision may not be readopted under this subdivision.
4365.
(a) Members of an association owning 5 percent or more of the separate interests may call a special vote of the
members to reverse a rule change.
(b) A special vote of the members may be called by delivering a written request to the association. Not less than 35 days nor more than 90 days after receipt of a proper request, the association shall hold a vote of the members on whether to reverse the rule change, pursuant to ARTICLE 4 (commencing with Section 5100) of CHAPTER 6. The written request may not be delivered more than 30 days after the association gives general notice of the rule change, pursuant to Section
4045.
(c) For the purposes of Section 5225 of this code and Section 8330 of the Corporations Code, collection of signatures to call a special vote under this section is a purpose reasonably related to the interests of the members of the association. A member request to copy or inspect the membership list solely for that purpose may not be denied on the grounds that the purpose is not reasonably related to the member’s interests as a member.
(d) The rule change may be reversed by the affirmative vote of a majority of a quorum of the members, pursuant to Section 4070, or if the declaration or bylaws require a greater percentage, by the affirmative vote of the percentage required.
(e) Unless otherwise provided in the declaration or bylaws, for the purposes of this section, a member may cast one vote per separate interest owned.
(f) A rule change reversed under this section may not be readopted for one year after the date of the vote reversing the rule change. Nothing in this section precludes the board from adopting a different rule on the same subject as the rule change that has been reversed.
(g) As soon as possible after the close of voting, but not more than 15 days after the close of voting, the board
shall provide general notice pursuant to Section 4045 of the results of the member vote.
(h) This section does not apply to an emergency rule change made under subdivision (d) of Section 4360.
4370.
(a) This ARTICLE applies to a rule change commenced on or after January 1, 2004.
(b) Nothing in this ARTICLE affects the validity of a rule change commenced before January 1, 2004.
(c) For the purposes of this section, a rule change is commenced when the board takes its first official action
leading to adoption of the rule change.
CHAPTER 4. OWNERSHIP AND TRANSFER OF INTERESTS
ARTICLE 1. Ownership Rights and Interests
4500. Unless the declaration otherwise provides, in a condominium project, or in a planned development in which the common area is owned by the owners of the separate interests, the common area is owned as tenants in common, in equal shares, one for each separate interest.
4505. Unless the declaration otherwise provides:
(a) In a community apartment project and condominium project, and in those planned developments with common area owned in common by the owners of the separate interests, there are appurtenant to each separate interest nonexclusive rights of ingress, egress, and support, if necessary, through the common area. The common area is subject to these rights.
(b) In a stock cooperative, and in a planned development with common area owned by the association, there is an easement for ingress, egress, and support, if necessary, appurtenant to each separate interest. The common area is subject to these easements.
4510. Except as otherwise provided in law, an order of the court, or an order pursuant to a final and binding arbitration decision, an association may not deny a member or occupant physical access to the member’s or occupant’s separate interest, either by restricting access through the common area to the separate interest, or by restricting access solely to the separate interest.
4525.
ARTICLE 2. Transfer Disclosure
(a) The owner of a separate interest shall provide the following documents to a prospective purchaser of the
separate interest, as soon as practicable before the transfer of title or the execution of a real property sales contract, as defined in Section 2985:
(1) A copy of all governing documents. If the association is not incorporated, this shall include a statement in
writing from an authorized representative of the association that the association is not incorporated.
(2) If there is a restriction in the governing documents limiting the occupancy, residency, or use of a separate interest on the basis of age in a manner different from that provided in Section 51.3, a statement that the restriction is only enforceable to the extent permitted by Section 51.3 and a statement specifying the applicable provisions of Section
51.3.
(3) A copy of the most recent documents distributed pursuant to ARTICLE 7 (commencing with Section 5300) of
CHAPTER 6.
(4) A true statement in writing obtained from an authorized representative of the association as to the amount of the association’ s current regular and special assessments and fees, any assessments levied upon the owner’s interest in the common interest development that are unpaid on the date of the statement, and any monetary fines or penalties levied upon the owner’s interest and unpaid on the date of the statement. The statement obtained from an authorized representative shall also include true information on late charges, interest, and costs of collection which, as of the date of the statement, are or may be made a lien upon the owner’s interest in a common interest development pursuant to ARTICLE 2 (commencing with Section 5650) of CHAPTER 8.
(5) A copy or a summary of any notice previously sent to the owner pursuant to Section 5855 that sets forth any alleged violation of the governing documents that remains unresolved at the time of the request. The notice shall not be deemed a waiver of the association’s right to enforce the governing documents against the owner or the prospective purchaser of the separate interest with respect to any violation. This paragraph shall not be construed to require an association to inspect an owner’s separate interest.
(6) A copy of the initial list of defects provided to each member pursuant to Section 6000, unless the association and the builder subsequently enter into a settlement agreement or otherwise resolve the matter and the association complies with Section 6100. Disclosure of the initial list of defects pursuant to this paragraph does not waive any privilege attached to the document. The initial list of defects shall also include a statement that a final determination as to whether the list of defects is accurate and complete has not been made.
(7) A copy of the latest information provided for in Section 6100.
(8) Any change in the association’s current regular and special assessments and fees which have been approved by the board, but have not become due and payable as of the date disclosure is provided pursuant to this subdivision.
(9) If there is a provision in the governing documents that prohibits the rental or leasing of any of the separate interests in the common interest development to a renter, lessee, or tenant, a statement describing the prohibition and its applicability.
(10) If requested by the prospective purchaser, a copy of the minutes of board meetings, excluding meetings held in executive session, conducted over the previous 12 months, that were approved by the board.
(b) This section does not apply to an owner that is subject to the requirements of Section 11018.6 of the Business and Professions Code.
4528. The form for billing disclosures required by Section 4530 shall be in substantially the following form: CHARGES FOR DOCUMENTS PROVIDED AS REQUIRED BY
SECTION 4525*
Property Address: Owner of Property:
Owner’s Mailing Address (If known or different from property address.): Provider of the Section 4525 Items:
Print Name:
Position or Title: Association or Agent
Date Form Completed:
Check or Complete Applicable Column or Columns Below
Not Available=(N/A)
Not Applicable Civil Code=(N/App) Included/Not Included
Document Section
Articles of Incorporation or 4525(a)(1)
statement that not incorporated
CC&Rs 4525(a)(1) Bylaws 4525(a)(1)
Operating Rules 4525(a)(1) Age restrictions, if any 4525(a)(2)
Annual budget report or 5300 and 4525(a)(3)
summary, including
reserve study
Assessment and Sections 5300 and 4525(a)(4)
reserve funding disclosure summary
Financial statement Sections 5305 and 4525(a)(3)
review
Assessment enforcement policy Sections 5310 and 4525(a)(4) Insurance summary Sections 5300 and 4525(a)(3) Regular assessment Section 4525(a)(4)
Special assessment Section 4525(a)(4) Emergency assessment Section 4525(a)(4)
Other unpaid obligations of seller Sections 5675 and 4525(a)(4) Approved changes to assessments Sections 5300 and 4525(a)(4), (8)
Settlement notice regarding common Sections 4525(a)(6), (7), and 6100 area defects
Preliminary list of defects Sections 4525(a)(6), 6000, and 6100
Notice(s) of violation Sections 5855 and 4525(a)(5) Required statement of fees Section 4525
Minutes of regular board meetings Section 4525(a)(10)
conducted over the previous 12 months, if requested
Total fees for these documents:
* The information provided by this form may not include all fees that may be imposed before the close of escrow. Additional fees that are not related to the requirements of Section 4525 may be charged separately.
(a) Upon written request, the association shall, within 10 days of the mailing or delivery of the request, provide the owner of a separate interest, or any other recipient authorized by the owner, with a copy of the requested documents specified in Section 4525.
(b)
(1) Upon receipt of a written request, the association shall provide, on the form described in Section 4528, a written or electronic estimate of the fees that will be assessed for providing the requested documents. The documents required to be made available pursuant to this section may be maintained in electronic form, and may be posted on the association’s Internet Web site. Requesting parties shall have the option of receiving the documents by electronic transmission if the association maintains the documents in electronic form. The association may collect a reasonable fee based upon the association’s actual cost for the procurement, preparation, reproduction, and delivery of the documents requested pursuant to the provisions of this section.
(2) No additional fees may be charged by the association for the electronic delivery of the documents requested.
(3) Fees for any documents required by this section shall be distinguished from other fees, fines, or assessments billed as part of the transfer or sales transaction. Delivery of the documents required by this section shall not be withheld for any reason nor subject to any condition except the payment of the fee allowed pursuant to paragraph (1).
(4) An association may contract with any person or entity to facilitate compliance with the requirements of this subdivision on behalf of the association.
(5) The association shall also provide a recipient authorized by the owner of a separate interest with a copy of the completed form specified in Section 4528 at the time the required documents are delivered.
4535. In addition to the requirements of this ARTICLE, an owner transferring title to a separate interest shall comply with applicable requirements of Sections 1133 and 1134.
4540. Any person who willfully violates this ARTICLE is liable to the purchaser of a separate interest that is subject to this section for actual damages occasioned thereby and, in addition, shall pay a civil penalty in an amount not to exceed five hundred dollars ($500). In an action to enforce this liability, the prevailing party shall be awarded reasonable attorney’s
fees.
4545. Nothing in this ARTICLE affects the validity of title to real property transferred in violation of this ARTICLE.
ARTICLE 3. Transfer Fee
4575. Except as provided in Section 4580, neither an association nor a community service organization or similar entity may impose or collect any assessment, penalty, or fee in connection with a transfer of title or any other interest except for the following:
(a) An amount not to exceed the association’s actual costs to change its records. (b) An amount authorized by Section 4530.
4580. The prohibition in Section 4575 does not apply to a community service organization or similar entity, or to a nonprofit entity that provides services to a common interest development under a declaration of trust, of either of the following types:
(a) An organization or entity that satisfies both of the following conditions: (1) It was established before February 20, 2003.
(2) It exists and operates, in whole or in part, to fund or perform environmental mitigation or to restore or maintain wetlands or native habitat, as required by the state or local government as an express written condition of development.
(b) An organization or entity that satisfies all of the following conditions: (1) It is not an organization or entity described by subdivision (a).
(2) It was established and received a transfer fee before January 1, 2004.
(3) On and after January 1, 2006, it offers a purchaser the following payment options for the fee or charge it collects at time of transfer:
(A) Paying the fee or charge at the time of transfer.
(B) Paying the fee or charge pursuant to an installment payment plan for a period of not less than seven years. If the purchaser elects to pay the fee or charge in installment payments, the organization or entity may also collect additional amounts that do not exceed the actual costs for billing and financing on the amount owed. If the purchaser sells the separate interest before the end of the installment payment plan period, the purchaser shall pay the remaining balance before the transfer.
4600.
ARTICLE 4. Restrictions on Transfer
(a) Unless the governing documents specify a different percentage, the affirmative vote of members owning at least
67 percent of the separate interests in the common interest development shall be required before the board may grant exclusive use of any portion of the common area to a member.
(b) Subdivision (a) does not apply to the following actions:
(1) A reconveyance of all or any portion of that common area to the subdivider to enable the continuation of development that is in substantial conformance with a detailed plan of phased development submitted to the Real Estate Commissioner with the application for a public report.
(2) Any grant of exclusive use that is in substantial conformance with a detailed plan of phased development submitted to the Real Estate Commissioner with the application for a public report or in accordance with the governing documents approved by the Real Estate Commissioner.
(3) Any grant of exclusive use that is for any of the following reasons:
(A) To eliminate or correct engineering errors in documents recorded with the county recorder or on file with a public agency or utility company.
(B) To eliminate or correct encroachments due to errors in construction of any improvements.
(C) To permit changes in the plan of development submitted to the Real Estate Commissioner in circumstances where the changes are the result of topography, obstruction, hardship, aesthetic considerations, or environmental conditions.
(D) To fulfill the requirement of a public agency.
(E) To transfer the burden of management and maintenance of any common area that is generally inaccessible and not of general use to the membership at large of the association.
(F) To accommodate a disability.
(G) To assign a parking space, storage unit, or other amenity, that is designated in the declaration for assignment, but is not assigned by the declaration to a specific separate interest.
(H) To install and use an electric vehicle charging station in an owner’s garage or a designated parking space that meets the requirements of Section 4745, where the installation or use of the charging station requires reasonable access through, or across, the common area for utility lines or meters.
(I) To install and use an electric vehicle charging station through a license granted by an association under
Section 4745.
(J) To comply with governing law.
(c) Any measure placed before the members requesting that the board grant exclusive use of any portion of the common area shall specify whether the association will receive any monetary consideration for the grant and whether the
association or the transferee will be responsible for providing any insurance coverage for exclusive use of the common area.
4605.
(a) A member of an association may bring a civil action for declaratory or equitable relief for a violation of Section
4600 by the association, including, but not limited to, injunctive relief, restitution, or a combination thereof, within one year of the date the cause of action accrues.
(b) A member who prevails in a civil action to enforce the member’ s rights pursuant to Section 4600 shall be entitled to reasonable attorney’s fees and court costs, and the court may impose a civil penalty of up to five hundred dollars ($500) for each violation, except that each identical violation shall be subject to only one penalty if the violation affects each member equally. A prevailing association shall not recover any costs, unless the court finds the action to be frivolous, unreasonable, or without foundation.
