A board of directors of the Mission Shores Association submitted a CC&R amendment to the membership containing the following two rental restrictions: (1) owners could not lease their units for less than 30 days; and (2) the association could evict a tenant who was in breach of the governing documents. Because the amendments did not receive the required 67% affirmative votes (only 59% of the owners voted yes), the association filed a petition with the court seeking approval of the amendments.

One homeowner objected, arguing that the amendments were not reasonable and the association violated Civ. Code §1363.03(g) by failing to publicize the results of the election in a communication directed to all members.

In Mission Shores v. Pheil, the Court of Appeals ruled in favor of the association, holding that the two rental restrictions were reasonable, and the association's failure to strictly comply with section 1363.03(g) was too trivial to warrant denying the petition.

Reasoning of the Court. The court explained that the 30 day minimum lease term requirement was reasonable because the provision applied to all owners, did not violate public policy, and any enforcement burden was outweighed by the amendments beneficial value in preserving the residential character of the development. The court held that the eviction provision was reasonable because tenants should be bound by the CC&Rs to the same extent as owners, and if an owner refuses to take effective measures to assure his or her tenant complies with the CC&Rs, the Association needs a means of assuring such compliance.