2023 Legislative Wrap-Up
Richard Williamson of San Lorenzo Community Homeowners Association, Covington Community Homeowners Association & Stadium Lofts Community Association
Full legislative bill text for 2023 may be found through bill search online at
https://leginfo.legislature.ca.gov/faces/billSearchClient.xhtml. Key approved legislation includes:
AB 648 – Virtual meeting Procedures - Meetings by Teleconference (CAI-CLAC sponsored) • A board meeting or meeting of the members may be conducted entirely by teleconference
• No state of emergency is required • A physical meeting location is not required • Any vote of the directors shall be conducted by a roll call vote • Any person who is entitled to participate in the meeting given option of participating by telephone • Not allowed for ballot counting
AB 1458 – Reduced Quorum for Election of Directors (CAI-CLAC sponsored) • If a quorum of more than 20% is required and cannot be obtained
• Association may use 20% as quorum at an adjourned meeting • Adjourned meeting to be held 20-45 days after the initial meeting
• Two new procedures: ∘ Include a statement in the 30-day pre-ballot notice that 20% will meet the adjourned quorum requirement
∘ New general notice required at least 15 days prior to the adjourned meeting (nearly identical to 30-day pre-ballot notice)
AB 1572 – No Potable Water on Nonfunctional Turf (CAI-CLAC worked to secure additional time before an association is required to comply) • The use of potable water for the irrigation of nonfunctional turf located … on properties of homeowners’ associations, common interest developments, … is prohibited as of January 1, 2029.
• “Common area” means that portion of a common interest development or of a property owned or managed by a homeowners’ association … that is not assigned or allocated to the exclusive use of the occupants of an individual dwelling unit within the property.
• “Functional turf” means a ground cover surface of turf located in a recreational use area or community space.
• “Community space” means an area designated by a property owner … to accommodate human foot traffi c for civic, ceremonial, or other community events or social gatherings.
• “Nonfunctional turf” means any turf that is not functional turf, and includes turf located within street rights-of-way and parking lots
• “Recreational use area” means an area designated by a property owner … to accommodate human foot traffi c for recreation, including, but not limited to, sports fi elds, golf courses, playgrounds, picnic grounds, or pet exercise areas. This recreation may be either formal or informal.
AB 1033 – ADU – Separate Sale or Conveyance – a.k.a. Lot Splitting • Allows for lot-splitting and separate sale of the ADU • Allows for the creation of mini-condo development as primary and ADU
• Establishes multiple constraints and procedures on lot owners and local governments
• CLAC lobbied and achieved language requiring written authorization by the existing association for a separate interest within an existing planned development that has an existing association
AB 1033 – ADU Clean-Up of Government Code § 65852 (CAI-CLAC secured the language requiring written authorization of the association) • Changes minimum rental term from “longer than 30 days” to “30 days or longer”
• Junior or attached ADUs no longer require the main dwelling to be owner-occupied
AB 1764 – Housing Omnibus – Changes to 22 Diff erent Code Sections • Candidate qualifi cations must apply to directors as well • The association must disqualify a candidate who has reached their term limit (if applicable)
• A director who ceases to be a member of the association would be disqualifi ed from continuing to serve as a director.
SB 71 – Jurisdictional Limits - Small Claims and Limited Civil Cases • Small Claims cases: ∘ Individual claims increased to $12,500 (from $10,000) ∘ Entity claims increased to $6,250 (from $5,000)
• Limited Jurisdiction cases: ∘ Increased to $35,000 (from $25,000)
Other Regulatory Issues - California Fair Plan • In September, Gov. Newsom signed an Executive Order to make changes to the CA FAIR plan
• The FAIR plan provides some additional options for coverage when other options become untenable
Fannie Mae and Freddie Mac (Condominium Lender Guidelines) • New lender guidelines for most condominiums • More documentation required including: ∘ Insurance ∘ building inspections ∘ deferred maintenance ∘ structural safety issues
Federal Corporate Transparency Act Reporting • Non-exempt associations must submit Benefi cial Ownership Information (BOI) report to the U.S. Treasury’s Financial Crimes and Enforcement Network (FinCEN)
• Starting January 1, 2024, and due January 1, 2025 non-exempt associations must disclose information (name, address, taxpayer ID number) and its “benefi cial owners” or those with substantial fi nancial control (full legal name, date of birth, address and passport or driver’s license number, with a photocopy of such document)
• CAI is supporting a specifi c exemption through Congressional legislative action
SB 553 Workplace Violence, Restraining Orders and Workplace Violence Prevention Plan • Starting July 1, 2024 – virtually every employer in California must adopt a comprehensive workplace violence prevention plan
• Keep records of incidents or threats • Establish procedures to report and deal with incidents • Establish training programs for employees • Create and manage evacuation or sheltering plans • 5-year record-keeping requirements • Does not apply to employees teleworking from a location of their own choice that is not under the employer’s control
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