CLUBHOUSE USE, NEW CALIFORNIA LAW, DIFFERENT VIEWS FOR HOAs

Sometimes it takes some time to shake down new laws and adopt new policies to conform. SB 407, which adds Civil Code Section 4515 to the Davis Stirling Act, is just such a law. I published an E-Newsletter suggesting Boards modify or adopt policies intended to protect HOAs from the effects of SB 407. I followed up with a blog yesterday suggesting Boards revisit their agreements to use the Clubhouse facilities.

Today I am simply going to say, this new law will be viewed differently, depending where you are sitting. Just like a sports event.

If you intend to opt on the side of technically analyzing the wording, you might interpret the law to be limited to political events like elections, and things like expressing opinions on new rules, projects the board undertakes, etc. I believe that is reasonable. You could keep policies requiring security deposits, rent and the requirement of an event policy for private parties and the like. You would need to have two different policies, or state the differences in one.

Or you can revise your policies and take a wider view and make the policies the same for all events using the clubhouse, incorporating terms I suggested in the E-newsletter archived now on my website at www.californiacondoguru.com.  (And not charging security deposits, rental fees, or requiring insurance.)

Here are some different options I have discussed with clients who wanted a policy drafted:

1. In the agreement provide for up front security deposits, rent or insurance requirements but clarify that there is no security deposit fee, etc. for specific gatherings using the words right out of the California statute and let the boards make the distinction in whether to charge when someone applies to use the clubhouse based on the language in the agreement. Here are the words that would clarify events for which there may not be a charge:

Peacefully assembling or meeting during reasonable hours and in a reasonable manner for purposes relating to common interest development living, association elections, legislation, election to public office, or the initiative, referendum, or recall processes.

2. Use two agreements, one for the statutory named events and one for things like birthday parties and private events.

3. Or I can modify old agreements adding improved language to incorporate the limitations in the law.

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I wish you all the best with this going forward. Feel free to contact me if you need legal assistance with this. There is information about my services and fees online and you can send me an email inquiry also.

 

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