Would allow the board of directors to amend the governing documents to remove any prohibitive rental restrictions without a vote of membership and would extend the deadline to July 1, 2022.
Current Status: Chaptered
FindHOALaw Quick Summary:
Existing law prohibits a common interest development from adopting or enforcing a provision in a governing document, or amendment to a governing document, that restricts the rental or lease of separate interests within a common interest to less than 25 percent of the separate interests. The act requires a common interest development to comply with the prohibition on rental restrictions regardless of whether the common interest development has revised its governing documents to comply with the act and requires a common interest development to amend its governing documents no later than December 31, 2021.
This bill would amend Civil Code Section 4741 to require the common interest development board, without approval of the members, to amend any declaration or other governing document no later than July 1, 2022, that includes a prohibited restrictive covenant, as provided. The bill would require a board to provide general notice of the amendment at least 28 days before approving the amendment and would require any decision on the amendment to be made at a board meeting, after consideration of any comments made by association members.
**UPDATE: AB 1584 was signed by the Governor on September 28, 2021. Its changes to the law take effect January 1, 2022.
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Related Links
California Legislature Further Limits a HOA's Right to Restrict Rentals - Published on HOA Lawyer Blog (September 2020)
SB 150 and the Distiction Between Rental Prohibitions and Rental Restrictions - Published on HOA Lawyer Blog (October 2011)
New Legislation Restricts the Ability of HOAs to Adopt & Enforce Rental Restrictions - Published on HOA Lawyer Blog (August 2011)