CAI-CLAC
LEGISLATIVE Update
Direct From Sacramento:
New Legislation Impacting Your Communities BY: A.J. JAHANIAN, ESQ. OF BEAUMONT TASHJIAN AND DANIEL C. HEATON, ESQ., NORDBERG | DENICHILO, LLP
AB 572
AB 648
AB 572 creates a new Civil Code § 5605 that applies to new associations where the original CC&Rs were recorded on or after January 1, 2025. The law prohibits boards from imposing a regular assessment against owners of deed-restricted affordable housing units that is more than five percent (5%) plus the percentage change in the cost of living, and not to exceed ten percent (10%). In other words, any new associations formed after the above date may be limited in terms of how much they may increase regular assessments and may end up facing a potential disparity in the amount of assessments imposed against certain sections of their membership that own deed-restricted affordable housing units versus those that do not. Boards will need to keep this in mind when budgeting for the common expenses each year and should consult with legal counsel in advance to evaluate whether the community is comprised of any affordable housing units and, if so, what procedures should be implemented to ensure that assessment levels are properly tracked and kept within the above statutory limitations.
One of the benefits coming out of the pandemic was the development of new tools such as Zoom and Teams that allowed boards and members to more easily communicate with each other. Prior law allowed for virtual board meetings but required a physical location to exist where members were able to attend the meeting and participate, along with designating a representative to be present at the physical location to assist with access. Now, AB 648 will allow board meetings to occur entirely virtually, and no physical location will be required, so long as the board provides owners with: 1) clear technical instructions on how to participate by teleconference; 2) the phone number and email address of a person who can assist with access and participation in the virtual meeting before and during the meeting; and 3) a reminder that they can request individual delivery of notices of the virtual meetings. Additionally, any vote by the directors must be done by roll call vote with the results recorded in the minutes. Note, any meetings involving ballotcounting still require a physical location and present board member.
(Assessment Limitations for Affordable Housing)
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CONNECT MAGAZINE • ISSUE FOUR 2023
(Virtual Meetings) – CAI-CLAC Sponsored
