HOA Law Blog
Did you Know?
California Senate Bill 900, which was signed into law in September 2024, has brought significant changes to the California Civil Code by amending Sections 4775 and 5610(c).
Under the updated Section 4775, unless otherwise specified in an association’s declaration, the association is now responsible for repairs and replacements related to interruptions in gas, heat, water, or electrical services that originate in the common area, even if they extend to other areas. If an association faces financial challenges due to these added responsibilities and lacks sufficient reserve funds, it can secure a loan without needing a member vote and levy an emergency assessment to repay the loan.
Additionally, SB 900 has expanded the definition of an “emergency situation” in Section 5610(c) to include an extraordinary expense necessary to repair or maintain the common interest development or any part of it for which the association is responsible where a threat to personal health or safety or another hazardous condition or circumstance on the property is discovered (the bolded and underlined words are the amended language). This amendment applies broadly and is not only limited to the newly defined maintenance obligations under Section 4775.
With the changes in Section 5610(c), associations can now levy emergency assessments for a wider range of conditions. This not only includes interruptions of gas, heat, water, or electrical services but also may include airborne hazards such as mold and asbestos. This expansion provides boards with greater flexibility to respond proactively to a variety of urgent safety concerns, thereby protecting residents, the common areas and preserving property values. Moreover, the flexibility to levy emergency assessments allows boards to responsibly and efficiently mobilize financial resources in the face of unexpected hazards, ensuring timely repairs and maintenance.
Leena Danpour, Esq. is an Attorney with the law firm of SwedelsonGottlieb and exclusively represents homeowners’ associations in both litigation and transactional matters, providing corporate governance advice to boards of directors who serve associations throughout California. Leena also serves as the Chair of the CLAC-LSC Committee (California Legislative Action Committee and Legislative Support Committee). You may reach Leena at (800) 372-2207 Ext. 206 or by email at ld@sghoalaw.com.