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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.
Q: Do you have any information regarding the expiration of CC&Rs? I’ve heard 20 years from the time of the recorded filing of the CC&Rs. My subdivision development of homes has no common areas but does have a HOA. The CC&Rs don’t show up in the San Mateo County recorder system. I need to confirm whether the HOA should have renewed and recorded the revitalization of the CC&Rs as they are over 30 years old.
Any information would be appreciated. O.M., South San Francisco
A: Unless the CC&Rs were recorded on the property they do not automatically bind all owners, so some title research help may be needed. The recording information on CC&Rs should be reflected on title insurance policies as a coverage exception, so you may find information that way.
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Over the many years I have been writing this column, the clear No. 1 ranked dispute between homeowners and their associations regards records and information access. These disputes are never productive, and generally are avoidable. Here are some tips for HOAs regarding producing requested records and some tips for requesting homeowners.
The law has improved dramatically in recent years in this regard. Civil Code 5200 provides a very clear list of what are “association records” which members may request. However, battles continue, and unfortunately HOAs sometimes control the flow of information from critics, and some homeowners use records demands as a weapon. When a board is under severe criticism it is a natural impulse to be defensive and close ranks, but the board cannot refuse a legitimate document request just because it expects the information to be used against it. The more a board stalls or resists providing reasonably requested documents, the higher the suspicion
HOA Homefront – Requests for HOA Information (Part 2) [The San Diego Union-Tribune]
Part 1: Questions about HOA disclosures.
Q: I attended my first HOA meeting and I noticed that the format is slightly different from city council meetings. Board members were provided a lengthy document prepared by management, containing specific details on water usage, maintenance requests, and detailed financials. I queried if the report was available, and was told no, they are only provided to board members. In city council meetings, documents that don’t violate confidentiality or executive session privilege must be made available for review in advance of the meeting. Does the Davis-Stirling Act require something similar?