Some sets of CC&Rs contain provisions that provide for their expiration after a specific period of time or a specified date (sometimes called the “termination date”). Such CC&Rs often also contain a provision allowing for an automatic renewal/extension of the termination date. Where the CC&Rs are silent in this respect, the termination date may be extended by approval from a majority of the members, or any greater percentage required under the amendment procedures contained in the CC&Rs themselves. (Civ. Code § 4265(b); Civ. Code § 4270.) The public policy behind allowing for CC&R extensions with approval of the members is as follows:
“…The Legislature further finds that covenants and restrictions contained in the [CC&Rs], are an appropriate method for protecting the common plan of developments and to provide for a mechanism for financial support for the upkeep of common area including, but not limited to, roofs, roads, heating systems, and recreational facilities. If [CC&Rs] terminate prematurely, common interest developments may deteriorate and the housing supply of affordable units could be impacted adversely. The Legislature further finds and declares that it is in the public interest to provide a vehicle for extending the term of the [CC&Rs] if the extension is approved by a majority of all members, pursuant to Section 4065.” (Civ. Code § 4265(a).)
The approved extension becomes effective after complying with the procedural requirements for amending CC&Rs found under Civil Code Section 4270(a). (See “Amendments to Declaration (CC&Rs).”)
Length of Allowable Extension(s)
No extension that is made pursuant to Civil Code Section 4265 is valid if it exceeds the length of the initial term of the CC&Rs, or twenty (20) years, whichever is less. (Civ. Code § 4265(d).) However, this does not limit the number of extensions that may occur. (Id.)
