The Davis-Stirling Common Interest Development Act (California Civil Code Section 4000 et seq.) (“Act”) is the primary body of law governing residential common interest developments (“CIDs”) and homeowners associations (“HOAs”) in California. Several bills – such as those relating to HOA elections, the permissibility of electronic voting, maintenance responsibilities for public utilities serving CIDs, and dispute resolution procedures for construction defect claims – were recently enacted by the state legislature and signed into law by Governor Newsom. These modifications to the Act have since been codified in the California Civil Code and became effective January 1, 2025.
The following is a brief summary of the 2025 changes to the Act, which HOAs and boards of directors should take into consideration, and where appropriate, update the governing documents applicable to the CID which they oversee.
New Electronic Voting Rights and Procedures
Assembly Bill No. 2159 authorized and established several new procedures and protocols enabling electronic voting for HOAs and its members. These changes now permit HOAs to adopt electronic secret ballot voting under specific conditions while maintaining transparency and security. To effectuate these modifications, amendments have been made to California Civil Code §§ 5105, 5110, 5120, 5125, 5200, and 5260.
- Civil Code Section 5105 – Election Rules. Rules relating to electronic voting have been added, including requirements for both inspectors of elections and member options to switch between the use of electronic and written ballots. Additionally, floor nominations are prohibited when using electronic ballots, though they remain allowed with paper ballots.
- Civil Code Section 5110 – Inspectors of Election. Updates have been made to address and clarify the role and responsibilities of inspectors of elections in electronic voting. Specifically, Civil Code § 5110 was amended to allow HOAs to conduct all votes by electronic voting – including those by secret ballot – except those relating to the approvals of proposed increases to regular and/or special assessments. For elections by electronic secret ballot, § 5110 further provides technical requirements aimed at bolstering the security of the voting system, including those relating to the authentication of the identity of HOA members, and the separation of voter identity from the vote cast.
- Civil Code Section 5120 – Association Records and Enhanced Records. Provisions have been added to help ensure the integrity and security of electronic ballots. Specifically, § 5120(c) was modified to mandate that a person, including a member of the HOA or an employee of its management company, be prohibited from opening or otherwise reviewing any tally sheet of votes cast by electronic secret ballots before the time and place at which the ballots are counted and tabulated.
- Civil Code Section 5125 – Custody of Election Materials. To account for the new 2025 electronic voting rights described herein, § 5125 was updated to incorporate any “tally sheet of votes cast by electronic secret ballot” into the procedures governing the existing custodial requirements of election inspectors in maintaining election materials.
- Civil Code Section 5200 – Association Records and Enhanced Records. The definition of “Association election materials” under § 5200(c) was expanded to include electronic voting records; specifically, the tally sheet of votes cast by electronic secret ballot.
- Civil Code Section 5260 – Requests That Must be in Writing. To account for the aforementioned changes to electronic voting procedures, subsection (g) was added to § 5260 to require any “request to opt out of or opt into electronically voting by electronic secret ballot” be delivered in writing to the HOA. Guidelines were also added addressing notification requirements for HOA members related to electronic voting.
Quorum Adjustments for Elections
Assembly Bill No. 2460 made several clarifications and updates to Civil Code § 5115 relating to HOA elections and quorum requirements, while also accounting for and being in harmony with the new electronic voting rules and procedures, including those for secret ballots, as described above.
- Civil Code Section 5115 – Voting Procedures. § 5115 of the Act (and Corporations Code § 7512) have been amended to provide that, the absence of a quorum for purposes of member elections, an HOA would be authorized to adjourn the meeting to a date at least twenty (20) days after the adjourned meeting, at which time the quorum required for purposes of a reconvened meeting would be twenty percent (20%) of the members, whether voting in person, by proxy, or by secret ballot. These amendments further require HOAs to provide general notice of such reconvened meetings no later than fifteen (15) days prior to the date of the reconvened meeting. Further, an HOA whose governing documents require a quorum for election of directors, are to provide general notice of a statement that the association may call a reconvened meeting to be held at least twenty (20) days after a scheduled election if the quorum is not reached, as specified. Finally, in the absence of a quorum, an HOA is now authorized to adjourn a meeting to a date at least twenty (20) days after the adjourned meeting, at which time the quorum required for purposes of a reconvened meeting would be twenty percent (20%) of the members, whether voting in person, by proxy, or by secret ballot.
Authored by Reuben, Junius & Rose, LLP Attorney, Michael Corbett.
The issues discussed in this update are not intended to be legal advice and no attorney-client relationship is established with the recipient. Readers should consult with legal counsel before relying on any of the information contained herein. Reuben, Junius & Rose, LLP is a full service real estate law firm. We specialize in land use, development and entitlement law. We also provide a wide range of transactional services, including leasing, acquisitions and sales, formation of limited liability companies and other entities, lending/workout assistance, subdivision and condominium work.
