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NEW LAWS
FOR 2025
Electronic Voting.  Beginning January 1, 2025, associations can use electronic voting in their elections. Doing so should significantly reduce election costs and encourage more owner participation.
Before implementing this cost-saving measure, boards must amend their election rules to allow owners to either opt in or opt out of electronic voting.
Because some people will continue to want paper ballots, associations must be prepared to use a combination of electronic and mail-in ballots in their elections. Over time, as dinosaurs become extinct, electronic voting will dominate.
E-voting is limited to the election/recalling of directors and the amending of governing documents. It cannot be used to approve regular or special assessments (the reasoning for this restriction eludes me).
The timeline for E-voting is extended due to additional procedures required by the statute. In addition, for practical reasons, nominations from the floor are prohibited when using E-ballots. We will post all the requirements on our website.
To use E-balloting, your election rules must be amended at least 90 days before your next election. (Civ. Code § 5105(h).) We offer a fixed fee to amend election rules and a discounted fee for clients who had us prepare their existing election rules. For those associations with elections in the second quarter, we can prepare your updated rules now so they take effect in time for your election. Contact us for more information.
Utility Interruptions.  Beginning January 1, unless governing documents provide otherwise, associations will be responsible for repairs and replacements necessary to restore interruptions in gas, heat, water, or electrical services that begin in the common area.
Boards must start repairs within 14 days of the interruption of services. The new statute makes it easier for boards to approve emergency repairs and to obtain loans without a membership vote. It also requires the inclusion of common area utility lines as components in reserve studies. The components should already be in your reserve study, but the legislature wants to make sure everyone includes them.
Quorum Reduction. AB 2460 was a clean-up bill dealing with reduced quorums. If governing documents have a quorum requirement of 20% or more for the annual election of directors and the quorum cannot be met, associations can convene another meeting at least 20 days later.
At that point, the quorum requirement is reduced to 20%, even if the governing documents require a higher percentage. If an association’s documents already allow for a quorum of less than 20%, the statute does not override the lower quorum.
Recommendation: Associations should amend their governing documents to eliminate quorum requirements altogether for the election of directors. When that is done, it completely eliminates the problem and the cost of repeated adjournments to make quorum. Contact us for more information.
Balcony Inspections.  As a reminder, condominium associations are required to inspect all elevated elements by January 1, 2025. To help associations meet the deadline, the legislature amended the Balcony Bill to allow civil engineers (along with architects and structural engineers) to inspect an association's elevated elements.
Workplace Restraining Orders. Beginning January 1, 2025, associations can seek a temporary restraining order (TRO) and an injunction on behalf of any employee (including directors, volunteers, or independent contractors working for an association) who are the target of harassment. Previously, TROs were limited to threats and acts of violence.
Corporate Transparency Act. A reminder that, by January 1, 2025, most associations will be required to report certain required information about their boards of directors. For more information, see "Corporate Transparency Act."
VIDEO.  For a thorough review of the new laws, put on by four of our attorneys, you can watch a video of their webinar here.
HIRING
EXPERIENCED ATTORNEYS
We are looking for experienced HOA attorneys for our offices in Los Angeles and Northern California. Learn more about us here.
If you are interested, or know someone who may be a good candidate, please contact Adrian Adams by email or by phone at (800) 464-2817.
Take Pictures. Great advice on taking pictures before and after electrical panel replacements. With today’s mobile phones, we take many pictures of everything. Then, just like NFL football, if there is a challenge, we can go to the camera. Thanks for such great practical advice on a continued basis in the absolute crazy world of HOA governance. -Leland B.
Zinsco Panels. Regarding electrical panels, you're correct; Zinsco panels are nothing but high risk danger. In general we have found with several past projects, it's best to have the HOA draft the job scope and vet several contractors to get multiple bids. It just holds more support for the HOA conducting due diligence in the eyes of the local Department of Building Inspection and the insurance carrier(s) for the Association to handle it. The HOA deals with one permitted job, instead of owners and multiple permits, and as an HOA project, the HOA will likely get reduced costs on the contract as the contractor is getting a large job. Further, check with the county as some offer rebates for electrical upgrades and/or financing. Our lighting upgrades landed us a $17,000 rebate from our county. -Joseph L.
RESPONSE: Joseph, good advice. It makes more sense for the association to coordinate the work than to force individual owners to pull permits and hire contractors.
Solar Panels. If we are upgrading our electrical panels, can we use reserve funds to include solar as an addition to the panel safety upgrade? –Bill K.
RESPONSE: Replacing your existing electrical panels arguably qualify as a reserve item, even if you failed to reserve for the work depending on their location (you may need a legal opinion). The new solar panels do not. They are a capital improvement. You can borrow from your reserves to complete the work, but you must repay the borrowed amount within one year. Unless the installer finances the installation, and the cost included in your budget, you will need to special assess the membership. You should have legal counsel review your governing documents and the details of the solar installation, and advise you on your options.
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DISCLAIMER. Our newsletter provides commentary, not legal advice. Boards need to retain an attorney to review the facts surrounding their particular situation before providing a legal opinion. We serve as corporate counsel to California associations only. Request a proposal to represent your association.
PAST NEWSLETTERS. Readers can find current and prior year newsletters posted here. Older newsletters are not posted since the information they contain can change over time with new statutes and case law. The website, however, is kept updated with current information which can be found via the "Index" or through our website's internal "Google Search" feature.
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