2025 Brings New HOA Election and Voting Rules

voting

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.

Proposed State Law Allows Term Limits for HOA Board of Directors

HOA

A homeowners association (“HOA”) is required to hold elections for its board of directors (“Board”) when a seat becomes available.  The Davis-Stirling Act specifies that HOA elections must conform to certain rules and procedures.  A Board can set qualifications for nominees running for the Board, but there are only a narrow set of reasons why a Board can disqualify a person from serving on the Board.  Reasons for disqualification include failure to pay HOA assessments, circumstances where a member of the individual’s household would be serving concurrently on the Board, and, in certain situations, the individual’s past criminal convictions.

Senate Bill 432 currently processing through the California State legislature, if enacted, would add another factor that would disqualify an HOA member from running for the Board:  if an individual has served the maximum number of terms or sequential terms permitted by the HOA.  An HOA is not required to impose term limits for the Board, but if the HOA has term limits, it can enforce them and disqualify a person from running for an additional term.

Senate Bill 432 would also make other technical changes to HOA election rules, including requirements for inspectors of elections, Board candidate requirements, requiring an HOA to maintain election materials for one year after the election, and noticing requirements.

We will follow Senate Bill 432 as it works its way through the State legislature and provide another update if it is finally passed and enacted.

 

Authored by Reuben, Junius & Rose, LLP Attorney Jay Drake.

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.

Recent California Condo/HOA Laws

Homeowners Association

The Davis-Stirling Common Interest Development Act (“Davis-Stirling Act”) is the primary body of law governing condo projects and homeowners associations (“HOAs”) in California. The state legislature enacted several bills that went into effect in 2020 that affect common interest developments (CIDs) such as condominium projects. The following is a brief summary of some recent changes to the Davis-Stirling Act (California Civil Code Section 4000 et seq.).

Senate Bill 323 – HOA Elections

This bill amends Sections 5100, 5105, 5110, 5115, 5125, 5145, and 5200 of, and adds Section 5910.1 to, the California Civil Code, relating to CIDs. This bill adds significant new requirements to the HOA election process. A few highlights: The ability of an HOA to impose conditions on a member’s eligibility to vote are constrained; while an HOA can disqualify a candidate from running for the HOA board of directors if that person is not a member of the HOA and for other specified reasons, the allowable grounds for disqualification are limited; inspectors of elections and ballots must be independent third parties; members’ email addresses must be included in the HOA membership list (unless a member opts out in writing). HOAs must make changes to their election rules to implement the requirements of SB 323.

Senate Bill 326

Adds Sections 5551 and 5986 to, and amends Section 6150 of, the California Civil Code.

Section 5551 – Inspection of Balconies

This new law applies to condo buildings with three or more units. It requires HOAs to perform periodic inspections of all exterior elevated elements that are more than six feet off the ground and supported in substantial part by wood or wood-based products, such as balconies, decks, stairways and walkways. These inspections must be performed by a licensed structural engineer or architect, and be completed no later than 2025, and thereafter at least every nine years.

Sections 5986 and 6150 – Authority to Commence Legal Proceedings

These laws prohibit, with certain exceptions, an HOA’s governing documents from limiting an HOA board’s authority to commence legal proceedings against a declarant, developer, or builder of a CID. Members of an HOA must be provided with a notice specifying, among other things, that a meeting will take place to discuss problems that may lead to the filing of a civil action against a declarant, developer, or builder of a CID, which notice must inform members that the potential impacts of filing a civil action, including financial, to the HOA and its members will be discussed at the meeting.

Assembly Bill 670 – Accessory Dwelling Units

This bill adds Section 4751 to the California Civil Code. This law renders void any provision in an HOA’s governing documents that prohibits the construction or use of an “accessory dwelling unit” (ADU) on a single-family lot. An association may enact reasonable restrictions regulating ADUs so long as they do not effectively prohibit or unreasonably increase the cost to construct an ADU. This new law applies primarily to planned developments with single family lots that are separately owned, and is not applicable to most condo projects.

Senate Bill 652 – Display of Religious Items

This bill adds Sections 1940.45 and 4706 to the California Civil Code. Subject to specified exceptions, this law prohibits the governing documents of a CID from banning the display of religious items on the entry door or entry door frame of a member’s unit. A religious item must be displayed because of a sincerely held religious belief and may not, individually or in combination with any other displayed religious item, exceed the lessor of 36×12 square inches or the size of the door.

 

 

Authored by Reuben, Junius & Rose, LLP Attorney Jay Drake.

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.