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FIVE BILLS THAT BECAME LAWS IN 2023
By Jennifer Wada, Esq.
Now that the Governor’s deadline to sign or veto legislation has passed, we have a complete picture of the new legislation for 2023 that will impact the management industry. All the major bills that we previously reported on were signed by the Governor.
The good news is that our two industry-sponsored bills will now become law, effective January 1st. This means that you will soon be able to hold almost all your board meetings virtually, as well as lower your quorum requirement for board elections if there is a lack of quorum. Here is a quick recap of the bills signed into law.
AB 648 Valencia
CIDs: Meetings by Teleconference
Signed - Authorizes a board meeting or a meeting of the members to be conducted entirely by teleconference, except a meeting where ballots will be counted. The legislative intent is that there must be a physical location where the ballots are being counted.
AB 1458 Ta
CIDs: Association Governance: Member Election
Signed - For election or recall of directors, if an association fails to attain quorum as required in the governing documents, the association can hold a subsequent meeting, at which time the quorum required for purposes of a membership meeting shall be 20% of owners present in person, by proxy or by secret written ballot.
AB 572 Haney
CIDs: Imposition of Assessments
Signed - Prohibits an association that records its original declaration on or after January 1, 2025, from imposing a regular assessment increase on the owner of a deed-restricted affordable housing unit that is more than 5% plus the percentage change in the cost of living, not to exceed 10% greater than the preceding year’s assessment.
AB 1033 Ting
ADUs: Separate Sale or Conveyance
Signed - Allows a local agency to adopt a local ordinance to allow the separate conveyance of an ADU(s) as condominiums. Requires express written approval of the existing association. This means approval by the board and membership approval if required by existing governing documents.
AB 1572 Friedman
Nonfunctional Turf
Signed - Prohibits the use of potable water to irrigate nonfunctional turf on commercial, municipal, and institutional (except for cemeteries), homeowners’ associations, common interest development, and community service organization properties. For HOAs and CIDs, this requirement begins January 1, 2029.
Affordable Housing is the Hot-Button Issue of the Year
The number of affordable housing bills that passed the legislature was the highest yet, with Governor Newsom signing over 60 of them. AB 572 and AB 1033 were among them. We anticipate affordable housing to continue to be a major focus in the 2024 session.
