Utility Service Interruptions

Association Responsibility to Repair
Civil Code section 4775 generally makes an association responsible for any repairs or replacements necessary to restore interrupted gas, heat, water or electrical services that begin in the common area regardless of whether the matter extends into an owner’s property (i.e., into an owner’s lot or unit) or any exclusive use common area appurtenant to the owner’s property. (Civ. Code § 4775(a)(2)(A).)

Exceptions
The association is not responsible for repairs or replacements in either of the following situations:

14 Day Timeline for Commencing Repairs
The association’s board of directors is required to “commence the process to make the repairs” within fourteen (14) days of the interruption of the utility service. (Civ. Code § 4775(b)(1).)

Inability to Meet Quorum for a Board Meeting within 14 Days
If the board is unable to meet quorum to hold a board meeting necessary to comply with the 14 day commencement of repair timeline, then at the next board meeting following the 14th day, the requirements of quorum are reduced so that the total number of directors at that meeting constitute quorum.  This reduction in quorum applies only for the vote to commence the repair process, and the notice of the board meeting must contain a provision indicating the use of a reduced quorum. (Civ. Code § 4775(b)(3).)

Board Vote Through Electronic Means
If the directors are required to vote to initiate repairs, such voting may be performed by electronic means, including but not limited to, email. All records of the vote are deemed “association records” and subject to inspection procedures under Civil Code section 5210. (Civ. Code § 4775(b)(4).)

Funding Repairs Through a Loan
If an association does not have sufficient funds to make the repairs necessary to restore the interrupted utility service, the association may obtain a loan to pay for the costs of the repairs or replacements. (Civ. Code § 4775(b)(2).)

Approval & Assessment Authority
No membership approval is required for the association to take out a loan to fund the repairs/replacements. The association may also levy an emergency assessment as needed to allow for the repayment of the loan. (Civ. Code § 4775(b)(2).)

Resolution Requirement
Prior to taking out the loan, the board must pass a resolution containing written findings regarding the nature of the association’s expenses and how the association’s reserves do not cover the necessary costs.  The resolution must be distributed to the members together with the notice of any emergency assessment, and together with notices that are otherwise required by law or the governing documents pertaining to the board’s action (if any). (Civ. Code § 4775(b)(2).)

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