The developer of an association (the builder of the CID) typically includes numerous provisions in the association’s governing documents that afford the developer special rights and privileges which help facilitate the developer in completing the construction or marketing of the CID. Once the developer has completed construction and is no longer involved in the association’s operations, such provisions no longer serve any purpose. Civil Code Section 4230 therefore allows the board to, “after the developer has completed construction of the development, has terminated construction activities, and has terminated marketing activities for the sale, lease or other disposition of the separate interests within the development, adopt an amendment deleting” such provisions from the governing documents. (Civ. Code § 4230(a).)
Provisions which May be Deleted
The provisions which may be deleted pursuant to Civil Code Section 4230 are limited to “those which provide for access by the developer over or across the common area for the purposes of (1) completion of construction of the development, and (2) the erection, construction, or maintenance of structures or other facilities designed to facilitate the completion of construction or marketing of separate interests.” (Civ. Code § 4230(b).)
Provisions Pertaining to Particular Phase of Development
Provisions of the governing documents relative to a particular construction or marketing phase of the development may not be deleted until that construction or marketing phase has been completed. (Civ. Code § 4230(a).)
Procedural Requirements
In order to validly delete the developer provisions pursuant to Civil Code Section 4230, the board must comply with the following requirements:
- At Least 30 Days Notice – At least thirty (30) days prior to taking action pursuant to Civil Code Section 4230, the board must deliver to all members by individual delivery: (1) A copy of all proposed amendments to the governing documents purporting to delete the developer provisions, and (2) notice of the time, date and place the board will consider adoption of the amendments. (Civ. Code § 4230(c).)
- Considerations Made at Open Board Meeting – The board may consider adoption of the proposed amendments only at an open meeting of the board, where members have the right to attend and make comments on the proposed amendments. (Civ. Code § 4230(c).)
- Approval by Majority of a Quorum – If the board decides to adopt the proposed amendments, the board must obtain the approval of at least a majority of a quorum of the members at a duly held election. (Civ. Code §§ 4230(d), 4070.) The applicable quorum is set at more than fifty percent (50%) of the members who own no more than two (2) separate interests within the development. (Civ. Code § 4230(d).)
