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Q: Regarding your recent article, does the Section 4741 approval of rental caps as low as 25 percent of the HOA mean a HOA such as ours can disallow rentals above that percentage? We are a small community with surging rentals, creating automobile congestion on our streets.
— P.W., San Diego
A: Civil Code Section 4741, new in 2021, allows HOAs to set rental caps as low as 25 percent. That is a minimum, so HOAs with current caps above 25 percent are unaffected by that aspect of the new law. HOAs adopting a rental cap should remember that Civil Code 4740(a) still applies so that the new cap, which is a partial prohibition, would apply only to owners acquiring title after the date the cap was voted into place.