ACT 2019 - cloudfront.net

Page created by Gilbert Caldwell
 
CONTINUE READING
2019 DAVIS-STIRLING
       COMMON INTEREST DEVELOPMENT

                         ACT

                                                        2019

 Unlocking the complexity of common interest development law
and opening the door to successful community association living.
DAVIS-STIRLING
COMMON INTEREST DEVELOPMENT ACT
2019 ED I TI ON

Published by EPSTEN GRINNELL & HOWELL, APC
A FULL SERVICE LAW FIRM SERVING CALIFORNIA COMMUNITY ASSOCIATIONS

• Association Counsel                  • Civil Litigation
• Association Appellate Matters        • Construction Defect Litigation
• Assessment Collection                • Construction Disputes
• Directors & Officers Defense         • Reconstruction Representation
• Dispute Resolution                   • Developer Transition Issues
• Document Interpretation              • Insurance Matters
• Document Amendment                   • Fair Housing
• Document Enforcement                 • Senior Housing

OFFICE LOCATIONS

San Diego                              Coachella Valley
10200 Willow Creek Rd., Suite 100      74830 Hwy. 111, Suite 100
San Diego, CA 92131                    Indian Wells, CA 92210
858.527.0111 | fax 858.527.1531        760.836.1036 | fax 760.836.1040
Inland Empire                          Also Serving:
43460 Ridge Park Dr., Suite 200        The entire State of California
Temecula, CA 92590                     toll-free: 800.300.1704
951.461.1181 | fax 858.527.1531

www.epsten.com
DAVIS-STIRLING COMMON INTEREST DEVELOPMENT ACT
                                                        2019 EDITION

                                                            INTRODUCTION

This booklet contains the 2019 Davis-Stirling Act which adds all the amendments enacted during the 2018 Legislative session. We
have again included the cross-reference / conversion tables for both the pre- and post-January 1, 2014 versions of the Act in Appendix
A of this booklet to assist those of us who are still learning the location of the statutes under the current numbering system.

Developments that are entirely commercial or industrial are not subject to this Act, but rather to the Commercial and Industrial
Common Interest Development Act that took effect on January 1, 2014. There were amendments to this act that took place during the
2018 Legislative session. We have a separate booklet containing just the 2019 Commercial and Industrial Common Interest
Development Act.

Brackets at the end of each section show the legislative year in which the bill was enacted or last amended, e.g., [2018] for the statutes
enacted in the 2018 session of the Legislature. Most new or amended statutes take effect on January 1 following the year enacted.
Statutes with operative (effective) dates before or after January 1, 2019, are noted.

All new statutes and amendments effective in 2019 are shown in bold, underlined italics throughout the Resource Book as are statutes
previously enacted but newly-added to the Resource Book this year. We normally do not show the deletions. However, when a statute
has been amended by deletions only, we have shown the location of the deletions with an empty bracket in bold underlined italics:
[ ]. In our Digital 1 Version, the bold underlined italics are also in red.

The symbol ■ in the text of the statutes indicates the location of key words or topics that appear in the key word index at the back.
When ■ is located at the left margin, it means that the paragraph in question concerns that index topic. However, when ■ is located at
the left margin of the first paragraph, it may also indicate that the entire section or section heading relates to the index topic.

For a complete listing of legislation see the official “California Legislative Information” website at http://leginfo.legislature.ca.gov
(or “Home Page”). From there, click on “California Law” where all the current California codes are available. The newly amended
bills will appear there on and after January 1, 2019. You can search for any current California code and section there. To view the bills
introduced in any given year, click on “Bill Information” from the Home Page. To view enacted legislation or “chaptered bills” by
year, see http://leginfo.legislature.ca.gov/faces/billSearchClient.xhtml and enter the chapter number, year and/or key words.

1
     Our digital version is accessible via our new Epsten Grinnell & Howell app (available at no cost via all major app stores) and is
also available for download via our website, www.epsten.com and select i/eBook apps (i.e., Amazon, iBooks, Barnes & Noble, Nook,
etc.).
                                                                    i
TABLE OF CONTENTS

The table below illustrates the significance of different font styles in the Table of Contents and the significance of colors used in the
Digital Version only.

                            Font Style or Color or Both in Section                                      Significance
                            Normal Font                                                                 Section previously in Resource Book
                            Bold, Red, Italics and Underlined                                           Newly enacted, amended or newly added this
                                                                                                        year (red color visible in Digital Version only)
                            Blue Font                                                                   Additional sections contained only in the
                                                                                                        Digital Version only

DAVIS-STIRLING COMMON INTEREST DEVELOPMENT ACT 2019 EDITION ............................................................................................ I
INTRODUCTION........................................................................................................................................................................................... I
TABLE OF CONTENTS ................................................................................................................................................................................II
DAVIS-STIRLING COMMON INTEREST DEVELOPMENT ACT ................................................................................................................... 7
PART 5.                   COMMON INTEREST DEVELOPMENTS ............................................................................................................ 7
CHAPTER 1.                GENERAL PROVISIONS ................................................................................................................................................. 7
ARTICLE 1.                PRELIMINARY PROVISIONS .......................................................................................................................................... 7
§4000.                    Title - Davis-Stirling Common Interest Development Act ............................................................................................ 7
§4005.                    Effect of Topic Headings .............................................................................................................................................. 7
§4010.                    Applicability; Construction ........................................................................................................................................... 7
§4020.                    Effect of Local Zoning Ordinances ............................................................................................................................... 7
§4035.                    Document Delivery Methods ........................................................................................................................................ 7
§4040.                    Individual Document Delivery ...................................................................................................................................... 7
§4041.                    Annual Notice of Owner Information ............................................................................................................................ 7
§4045.                    General Document Delivery .......................................................................................................................................... 8
§4050.                    Completion of Document Delivery ............................................................................................................................... 8
§4055.                    Electronic Delivery ....................................................................................................................................................... 8
§4065.                    Approval by Majority of All Members ......................................................................................................................... 8
§4070.                    Approval by Majority of a Quorum of Members .......................................................................................................... 8
ARTICLE 2.                DEFINITIONS ................................................................................................................................................................. 8
§4075.                    Defined Terms Govern Construction of Act ................................................................................................................. 8
§4076.                    “Annual Budget Report” – Defined .............................................................................................................................. 8
§4078.                    “Annual Policy Statement” – Defined ........................................................................................................................... 8
§4080.                    “Association” – Defined ................................................................................................................................................ 8
§4085.                    “Board” – Defined ......................................................................................................................................................... 9
§4090.                    “Board Meeting” – Defined .......................................................................................................................................... 9
§4095.                    “Common Area” – Defined ........................................................................................................................................... 9
§4100.                    “Common Interest Development” – Defined ................................................................................................................ 9
§4105.                    “Community Apartment Project” – Defined ................................................................................................................. 9
§4110.                    “Community Service Organization” – Defined ............................................................................................................. 9
§4120.                    “Condominium Plan” – Defined ................................................................................................................................... 9
§4125.                    “Condominium Project” – Defined ............................................................................................................................... 9
§4130.                    “Declarant” – Defined ................................................................................................................................................. 10
§4135.                    “Declaration” – Defined .............................................................................................................................................. 10
§4140.                    “Director” – Defined ................................................................................................................................................... 10
§4145.                    “Exclusive Use Common Area” – Defined ................................................................................................................. 10
§4148.                    “General Notice” – Defined ........................................................................................................................................ 10
§4150.                    “Governing Documents” – Defined ............................................................................................................................ 10
§4153.                    “Individual Notice” – Defined..................................................................................................................................... 10
§4155.                    “Item of Business” – Defined ...................................................................................................................................... 10
§4158.                    “Managing Agent” – Defined ...................................................................................................................................... 10
§4160.                    “Member” – Defined ................................................................................................................................................... 10
§4170.                    “Person” – Defined...................................................................................................................................................... 10
§4175.                    “Planned Development” – Defined ............................................................................................................................. 10
§4177.                    “Reserve Accounts” – Defined .................................................................................................................................... 11

                                                                                                   ii
§4178.       “Reserve Account Requirements” – Defined .............................................................................................................. 11
§4185.       “Separate Interest” – Defined ...................................................................................................................................... 11
§4190.       “Stock Cooperative” – Defined ................................................................................................................................... 11
CHAPTER 2.   APPLICATION OF ACT................................................................................................................................................. 11
§4200.       Creating a Common Interest Development ................................................................................................................. 11
§4201.       Act Applies Only to Developments with Common Area ............................................................................................ 11
§4202.       Sections Not Applicable to Industrial or Commercial CIDs ....................................................................................... 11
CHAPTER 3.   GOVERNING DOCUMENTS .......................................................................................................................................... 11
ARTICLE 1.   GENERAL PROVISIONS ............................................................................................................................................... 11
§4205.       Hierarchy of Governing Documents and the Law ....................................................................................................... 11
§4210.       Recorded Assessment Information Statement ............................................................................................................. 12
§4215.       Liberal Construction of Governing Documents; Severability ..................................................................................... 12
§4220.       Presumption Regarding Unit Boundaries .................................................................................................................... 12
§4225.       Mandatory Removal of Discriminatory Covenants ..................................................................................................... 12
§4230.       Amending Declaration to Delete Developer References ............................................................................................. 12
§4235.       Correction of Statutory Cross-References; Changes Arising from Recodification ..................................................... 13
ARTICLE 2.   DECLARATION ............................................................................................................................................................ 13
§4250.       Contents of Declaration ............................................................................................................................................... 13
§4255.       Disclosures; Airport Influence Area; San Francisco Bay Conservation and Development Commission.................... 13
§4260.       Amending Declaration ................................................................................................................................................ 13
§4265.       Extending Term of Declaration ................................................................................................................................... 14
§4270.       Declaration Amendment Requirements....................................................................................................................... 14
§4275.       Amending Declaration by Court Petition .................................................................................................................... 14
ARTICLE 3.   ARTICLES OF INCORPORATION .................................................................................................................................. 15
§4280.       Association Articles of Incorporation ......................................................................................................................... 15
ARTICLE 4.   CONDOMINIUM PLAN ................................................................................................................................................. 15
§4285.       Condominium Plan Contents....................................................................................................................................... 15
§4290.       Condominium Plan – Consent to Recordation ............................................................................................................ 15
§4295.       Amending or Revoking Condominium Plan ............................................................................................................... 16
ARTICLE 5.   OPERATING RULES ..................................................................................................................................................... 16
§4340.       Operating Rule; Rule Change – Defined ..................................................................................................................... 16
§4350.       Operating Rule Enforceability Requirements.............................................................................................................. 16
§4355.       Operating Rules Subject to Rule-Making Procedures ................................................................................................. 16
§4360.       Rule-Making Procedures ............................................................................................................................................. 16
§4365.       Member Vote to Reverse Rule Change ....................................................................................................................... 17
§4370.       Effective Date of Operating Rule Article .................................................................................................................... 17
CHAPTER 4.   OWNERSHIP AND TRANSFER OF INTERESTS ............................................................................................................. 17
ARTICLE 1.   OWNERSHIP RIGHTS AND INTERESTS ........................................................................................................................ 17
§4500.       Ownership of Common Area ...................................................................................................................................... 17
§4505.       Ingress, Egress and Support ........................................................................................................................................ 17
§4510.       No Denial of Access Rights ........................................................................................................................................ 17
§4515.       Noncommercial Solicitation ........................................................................................................................................ 17
ARTICLE 2.   TRANSFER DISCLOSURE ............................................................................................................................................. 18
§4525.       Disclosure Documents Provided to Prospective Purchaser ......................................................................................... 18
§4528.       Form for Billing Disclosures ....................................................................................................................................... 19
§4530.       Disclosure Documents Provided by Association ......................................................................................................... 20
§4535.       Title Transfer – Additional Owner Compliance Requirements ................................................................................... 21
§4540.       Transfer Disclosure; Enforcement ............................................................................................................................... 21
§4545.       Validity of Title ........................................................................................................................................................... 21
ARTICLE 3.   TRANSFER FEE............................................................................................................................................................ 21
§4575.       Limitation on Amount ................................................................................................................................................. 21
§4580.       Exemption from Transfer Fee Limitation .................................................................................................................... 21
ARTICLE 4.   RESTRICTIONS ON TRANSFER .................................................................................................................................... 21
§4600.       Granting Exclusive Use of Common Area .................................................................................................................. 21
§4605.       Enforcing Requirements for Granting Exclusive Use of Common Area .................................................................... 22
§4610.       Partition Actions in Condominium Projects ................................................................................................................ 22
§4615.       Mechanics’ Liens; Emergency Repairs ....................................................................................................................... 22
§4620.       Mechanics’ Liens; Association Notice to Members .................................................................................................... 23

                                                                                     iii
ARTICLE 5.   TRANSFER OF SEPARATE INTEREST .......................................................................................................................... 23
§4625.       Separate Interest Transfer in Community Apartment Project ..................................................................................... 23
§4630.       Separate Interest Transfer in Condominium Project ................................................................................................... 23
§4635.       Separate Interest Transfer in Planned Development ................................................................................................... 23
§4640.       Separate Interest Transfer in Stock Cooperative ......................................................................................................... 23
§4645.       Transfer of Exclusive Use Common Areas ................................................................................................................. 23
§4650.       Severability of Property Interests ................................................................................................................................ 23
CHAPTER 5.   PROPERTY USE AND MAINTENANCE.......................................................................................................................... 23
ARTICLE 1.   PROTECTED USES ....................................................................................................................................................... 23
§4700.       Regulation of Separate Interests – Application of Article ........................................................................................... 23
§4705.       Display of United States Flag ...................................................................................................................................... 24
§4710.       Display of Noncommercial Signs ................................................................................................................................ 24
§4715.       Pet Restrictions ............................................................................................................................................................ 24
§4720.       Fire Retardant Roof Covering Allowed....................................................................................................................... 24
§4725.       Television Antennas; Satellite Dishes ......................................................................................................................... 24
§4730.       Unreasonable Restrictions on Marketing Separate Interests Prohibited ...................................................................... 25
§4735.       Architectural Guidelines; Artificial Turf; Low Water-Using Plants ........................................................................... 25
§4736.       Pressure Washing ........................................................................................................................................................ 25
§4740.       Effect of Rental Prohibitions in Governing Documents .............................................................................................. 25
§4745.       Electric Vehicle Charging Stations ............................................................................................................................. 26
§4745.1      Electric Vehicle Charging Stations: EV-Dedicated TOU Meter ................................................................................. 27
§4746.       Homeowner Installation of Solar Energy Systems on Shared Multifamily Common Area Roof ............................... 28
§4750.       Use of Yards for Personal Agriculture ........................................................................................................................ 28
§4753.       Clotheslines and Drying Racks; Where Permitted ...................................................................................................... 28
ARTICLE 2.   MODIFICATION OF SEPARATE INTEREST................................................................................................................... 29
§4760.       Owner’s Right to Improve or Modify Separate Interest .............................................................................................. 29
§4765.       Architectural Review Procedures ................................................................................................................................ 29
ARTICLE 3.   MAINTENANCE............................................................................................................................................................ 29
§4775.       General Maintenance Obligations ............................................................................................................................... 29
§4777.       Notification of Pesticide Application .......................................................................................................................... 30
§4780.       Default Maintenance Obligations in Specific Developments ...................................................................................... 31
§4785.       Removal of Occupants to Perform Maintenance ......................................................................................................... 31
§4790.       Member Access to Maintain Telephone Wiring.......................................................................................................... 31
CHAPTER 6.   ASSOCIATION GOVERNANCE...................................................................................................................................... 31
ARTICLE 1.   ASSOCIATION EXISTENCE AND POWER ..................................................................................................................... 31
§4800.       Common Interest Development Managed by Association .......................................................................................... 31
§4805.       Association May Exercise Powers of Nonprofit Mutual Benefit Corporation ............................................................ 31
§4820.       Consolidating under Joint Neighborhood Association ................................................................................................ 31
ARTICLE 2.   BOARD MEETING ........................................................................................................................................................ 32
§4900.       Open Meeting Act ....................................................................................................................................................... 32
§4910.       Board Meetings Required for Actions; Exceptions ..................................................................................................... 32
§4920.       Board Meeting Notices and Agenda; Timing .............................................................................................................. 32
§4923.       Emergency Board Meeting .......................................................................................................................................... 32
§4925.       Right to Attend and Speak at Board and Member Meetings ....................................................................................... 32
§4930.       Agenda Required for Board Discussion and Action; Exceptions ................................................................................ 32
§4935.       Board Executive Sessions ........................................................................................................................................... 33
§4950.       Board Minutes ............................................................................................................................................................. 33
§4955.       Civil Action to Enforcing Meeting Requirements ....................................................................................................... 33
ARTICLE 3.   MEMBER MEETING .................................................................................................................................................... 33
§5000.       Parliamentary Procedure and Right to Speak at Member Meetings ............................................................................ 33
ARTICLE 4.   MEMBER ELECTION ................................................................................................................................................... 33
§5100.       Applicability of Article to Elections............................................................................................................................ 33
§5105.       Election Rules Required .............................................................................................................................................. 34
§5110.       Inspector(s) of Elections .............................................................................................................................................. 34
§5115.       Secret Ballot, Double Envelope Voting Procedures .................................................................................................... 35
§5120.       Tabulation and Reporting of Votes ............................................................................................................................. 35
§5125.       Custody of Ballots, Challenges and Recounts ............................................................................................................. 35
§5130.       Procedures for Use of Proxies in Elections ................................................................................................................. 35
§5135.       Association Funds for Campaign Purposes Prohibited ............................................................................................... 36

                                                                                     iv
§5145.        Civil Actions to Enforce Election Rights .................................................................................................................... 36
ARTICLE 5.    RECORD INSPECTION ................................................................................................................................................. 36
§5200.        Association Records and Enhanced Association Records Defined ............................................................................. 36
§5205.        Procedures Concerning Availability of Association Records...................................................................................... 36
§5210.        Time Periods Concerning Availability of Association Records .................................................................................. 37
§5215.        Withholding and Redacting Association Records ....................................................................................................... 37
§5220.        Member’s Right to Opt out of Sharing Contact Information....................................................................................... 38
§5225.        Member’s Reasons for Requesting Membership List and Association Options ......................................................... 38
§5230.        Protecting Association Records from Improper Uses ................................................................................................. 38
§5235.        Enforcement Options Concerning Inspection Rights .................................................................................................. 38
§5240.        Applicability and Nonapplicability of Inspection Rights ............................................................................................ 38
ARTICLE 6.    RECORDKEEPING ........................................................................................................................................................ 39
§5260.        Member Delivery of Requests to Association ............................................................................................................. 39
ARTICLE 7.    ANNUAL REPORTS ...................................................................................................................................................... 39
§5300.        Annual Budget, Reserves and Other Required Disclosures ........................................................................................ 39
§5305.        Annual Review of Association Financial Statement by CPA...................................................................................... 40
§5310.        Distribution of Annual Policy Statement to Members ................................................................................................ 40
§5320.        Right to Distribute either Full or Summary of Reports ............................................................................................... 41
ARTICLE 8.    CONFLICT OF INTEREST ............................................................................................................................................. 41
§5350.        Conflict of Interest Issues for Board and Committee Members .................................................................................. 41
ARTICLE 9.    MANAGING AGENT ..................................................................................................................................................... 41
§5375.        Managing Agent Disclosures and Timing ................................................................................................................... 41
§5375.5.      Managing Agent Conflict of Interest Disclosure ......................................................................................................... 42
§5376.        Delivery of Disclosure Documents Provided by Association ..................................................................................... 42
§5380.        Managing Agent Duties in Handling Association Client Funds.................................................................................. 42
§5385.        A Full-Time Employee is not a Managing Agent ....................................................................................................... 43
ARTICLE 10.   GOVERNMENT ASSISTANCE ....................................................................................................................................... 43
§5400.        On-line Education Course for Boards ......................................................................................................................... 43
§5405.        Required Filing of Biennial Statement ........................................................................................................................ 43
CHAPTER 7.    FINANCES .................................................................................................................................................................... 43
ARTICLE 1.    ACCOUNTING .............................................................................................................................................................. 43
§5500.        Board’s Duty to Review Financial Statements and Accounts...................................................................................... 43
§5501.        Review of Financial Statements and Accounts ............................................................................................................ 44
§5502.        Account Deposits and Transfers .................................................................................................................................. 44
ARTICLE 2.    USE OF RESERVE FUNDS ............................................................................................................................................ 44
§5510.        Signatures on and Limitation on Use of Reserve Funds.............................................................................................. 44
§5515.        Transfer or Borrowing from Reserve Funds................................................................................................................ 44
§5520.        Using Reserve Funds for Litigation; Notice; Accounting ........................................................................................... 44
ARTICLE 3.    RESERVE PLANNING ................................................................................................................................................... 44
§5550.        Reserve Study Inspection Frequency; Contents; Funding Plan ................................................................................... 44
§5560.        Reserve Funding Plan Adoption; Assessments Needed for Adequate Funding .......................................................... 45
§5565.        Contents of Association’s Reserve Summary ............................................................................................................. 45
§5570.        Required Assessment and Reserve Funding Disclosure Summary ............................................................................. 45
§5580.        Community Service Association Disclosure Requirements ........................................................................................ 46
CHAPTER 8.    ASSESSMENTS AND ASSESSMENT COLLECTION ........................................................................................................ 47
ARTICLE 1.    ESTABLISHMENT AND IMPOSITION OF ASSESSMENTS ............................................................................................... 47
§5600.        Duty to Levy Assessments; Excessive Assessments or Fees ...................................................................................... 47
§5605.        Prerequisites to Levying Assessment Increases and Maximum Limits on Board-Approved Increases ...................... 47
§5610.        Authority to Levy Emergency Assessments ................................................................................................................ 47
§5615.        Notice to Members of Assessment Increases .............................................................................................................. 47
§5620.        Assessments Exempt from Execution by Creditors..................................................................................................... 47
§5625.        Assessments not to be Based on Taxable Value; Exceptions ...................................................................................... 47
ARTICLE 2.    ASSESSMENT PAYMENT AND DELINQUENCY ............................................................................................................. 48
§5650.        Assessments as Debts; Permissible Charges and Interest ............................................................................................ 48
§5655.        Assessment Payments by Owners and How Applied to Debt ..................................................................................... 48
§5658.        Disputed Charges and Payment under Protest ............................................................................................................. 48
§5660.        Pre-lien Notice Requirements ..................................................................................................................................... 48

                                                                                       v
§5665.                     Assessment Payment Plans, Effect and Defaults ......................................................................................................... 49
§5670.                     Assessment Dispute Resolution and IDR .................................................................................................................... 49
§5673.                     Decision to Record Assessment Lien .......................................................................................................................... 49
§5675.                     Contents and Effect of Assessment Lien ..................................................................................................................... 49
§5680.                     Priority of Assessment Lien ........................................................................................................................................ 49
§5685.                     Payment and Rescission of Assessment Lien; Liens Recorded in Error ..................................................................... 49
§5690.                     Failure to Comply with Assessment Lien Procedures; Effect ..................................................................................... 50
ARTICLE 3.                 ASSESSMENT COLLECTION ........................................................................................................................................ 50
§5700.                     Assessments Collection Using Liens and Lawsuits..................................................................................................... 50
§5705.                     Prerequisites to Initiating Lien Foreclosures (Liens Recorded after January 1, 1996) ................................................ 50
§5710.                     Requirements Applicable to Nonjudicial Foreclosure Sales ....................................................................................... 50
§5715.                     Right of Redemption after Nonjudicial Foreclosure Sale ............................................................................................ 50
§5720.                     Permissible Collection Actions for Assessment Debts Less than $1,800.................................................................... 51
§5725.                     Effect of Common Area Damage and Monetary Penalties on the Right to Lien......................................................... 51
§5730.                     Mandatory Assessment Disclosure Notice .................................................................................................................. 51
§5735.                     Assigning or Pledging the Right to Collect Assessments ............................................................................................ 52
§5740.                     Assessment Liens Created before or after January 1, 2003 ......................................................................................... 53
CHAPTER 9.                 INSURANCE AND LIABILITY ........................................................................................................................................ 53
§5800.                     Limitations on Officer and Director Liability ............................................................................................................. 53
§5805.                     Limitations on Owner Liability Arising from Common Area Ownership .................................................................. 53
§5806.                     Fidelity Bond Coverage............................................................................................................................................... 54
§5810.                     Notice to Owners if an Insurance Policy Lapses ......................................................................................................... 54
CHAPTER 10.                DISPUTE RESOLUTION AND ENFORCEMENT .............................................................................................................. 54
ARTICLE 1.                 DISCIPLINE AND COST REIMBURSEMENT .................................................................................................................. 54
§5850.                     Monetary Penalties and Fine Schedules ...................................................................................................................... 54
§5855.                     Hearings and Notices Regarding Member Discipline ................................................................................................. 54
§5865.                     No Statutory Creation or Expansion of Right to Levy Fines ....................................................................................... 54
ARTICLE 2.                 INTERNAL DISPUTE RESOLUTION (IDR) ................................................................................................................... 54
§5900.                     Applicability of IDR to Association-Member Disputes .............................................................................................. 54
§5905.                     Fair, Reasonable and Expeditious IDR Procedure Required ....................................................................................... 54
§5910.                     IDR Procedure to Satisfy Specific, Minimum Criteria ................................................................................................ 55
§5915.                     Default IDR Procedure ................................................................................................................................................ 55
§5920.                     Notice to Members Describing IDR Procedure Used.................................................................................................. 55
ARTICLE 3.                 ALTERNATIVE DISPUTE RESOLUTION (ADR) PREREQUISITE TO CIVIL ACTION .................................................... 55
§5925.                     ADR Definitions ......................................................................................................................................................... 55
§5930.                     ADR Required Before Filing Certain Actions ............................................................................................................ 56
§5935.                     Initiating ADR by Request for Resolution .................................................................................................................. 56
§5940.                     Time for Completing ADR Process and Cost Splitting ............................................................................................... 56
§5945.                     Effect of ADR on Statutes of Limitation ..................................................................................................................... 56
§5950.                     Filing ADR Certificate when Filing Court Action ...................................................................................................... 56
§5955.                     Referral to ADR and Stay of Court Action by Stipulation .......................................................................................... 56
§5960.                     Refusal to Participate in ADR; Effect on Award of Fees and Costs ........................................................................... 56
§5965.                     Annual Disclosure of ADR Procedures to Members ................................................................................................... 56
ARTICLE 4.                 CIVIL ACTION ............................................................................................................................................................. 57
§5975.                     CC&Rs Are Enforceable Equitable Servitudes ........................................................................................................... 57
§5980.                     Association’s Standing in Litigation or Other Proceedings......................................................................................... 57
§5985.                     Comparative Fault to Apply in Specified Cases .......................................................................................................... 57
CHAPTER 11.                CONSTRUCTION DEFECT LITIGATION ....................................................................................................................... 57
§6000.                     Procedures Regarding Developer Defect Litigation .................................................................................................... 57
§6100.                     Notice to Members of Construction Defect Settlement ............................................................................................... 61
§6150.                     Notice to Members before Filing Construction Defect Action.................................................................................... 62
APPENDIX B ............................................................................................................................................................................................. 63
Davis-Stirling Act Conversion Tables (2013 to 2014)............................................................................................................................. 63
Davis-Stirling Act Conversion Tables (2014 to 2013)............................................................................................................................. 66
INDEX TO KEY WORDS AND PHRASES ................................................................................................................................................... 69

                                                                                                    vi
DAVIS-STIRLING COMMON INTEREST DEVELOPMENT ACT

PART 5.             COMMON INTEREST DEVELOPMENTS
CHAPTER 1. GENERAL PROVISIONS
ARTICLE 1.          PRELIMINARY PROVISIONS
§4000.         Title - Davis-Stirling Common Interest Development Act
■              This part shall be known and may be cited as the Davis-Stirling Common Interest Development Act. In a provision of
this part, the part may be referred to as the act. [2012 - Based on former §1350]

§4005.        Effect of Topic Headings
■             Division, part, title, chapter, article, and section headings do not in any manner affect the scope, meaning, or intent of
this act. [2012 - Based on former §1350.5; also amended in 2013 by SB 745]

§4010.       Applicability; Construction
■            Nothing in the act that added this part shall be construed to invalidate a document prepared or action taken before
January 1, 2014, if the document or action was proper under the law governing common interest developments at the time that the
document was prepared or the action was taken. For the purposes of this section, “document” does not include a governing document.
[2012 - New language]

§4020.        Effect of Local Zoning Ordinances
■             Unless a contrary intent is clearly expressed, a local zoning ordinance is construed to treat like structures, lots, parcels,
areas, or spaces in like manner regardless of the form of the common interest development. [2012 - Based on former §1372]

§4035.        Document Delivery Methods
              (a) If a provision of this act requires that a document be delivered to an association, the ■ document shall be delivered
to the person designated in the annual policy statement, prepared pursuant to Section 5310, to receive documents on behalf of the
association. If no person has been designated to receive documents, the document shall be delivered to the president or ■ secretary of
the association.
              (b) A document delivered pursuant to this section may be delivered by any of the following methods:
■                  (1) By email, facsimile, or other electronic means, if the association has assented to that method of delivery.
                   (2) By personal delivery, if the association has assented to that method of delivery. If the association accepts a
document by personal delivery it shall provide a written receipt acknowledging delivery of the document.
                   (3) By first-class mail, postage prepaid, registered or certified mail, express mail, or overnight delivery by an
express service center. [2012 - New language; also amended in 2013 by SB 745]

§4040.       Individual Document Delivery
              (a) If a provision of this act requires that an association ■ deliver a document by “individual delivery” or “individual
notice,” the document shall be delivered by one of the following methods:
                   (1) First-class mail, postage prepaid, registered or certified mail, express mail, or overnight delivery by an express
service carrier. The document shall be addressed to the recipient at the address last shown on the books of the association.
■                  (2) Email, facsimile, or other electronic means, if the recipient has consented in writing or by email, to that method
of delivery. The consent may be revoked, in writing or by email, by the recipient.
              (b) Upon receipt of a request by a member, pursuant to Section 5260, identifying a ■ secondary address for delivery of
notices of the following types, the association shall deliver an additional copy of those notices to the secondary address identified in
the request:
                   (1) The documents to be delivered to the member pursuant to Article 7 (commencing with Section 5300) of Chapter
6.
                   (2) The documents to be delivered to the member pursuant to Article 2 (commencing with Section 5650) of Chapter
8, and Section 5710.
              (c) For the purposes of this section, an unrecorded provision of the governing documents providing for a particular
method of delivery does not constitute agreement by a member to that method of delivery. [2018 - Based on former §§1350.7,
1365.1(c) & 1367.1(k)]

§4041.       Annual Notice of Owner Information
■            (a) An owner of a separate interest shall, on an annual basis, provide written notice to the association of all of the
following:
                  (1) The address or addresses to which notices from the association are to be delivered.
                  (2) An alternate or secondary address to which notices from the association are to be delivered.
                  (3) The name and address of the owner’s legal representative, if any, including any person with power of attorney or
other person who can be contacted in the event of the owner’s extended absence from the separate interest.
                  (4) Whether the separate interest is owner-occupied, is rented out, if the parcel is developed but vacant, or if the
parcel is undeveloped land.
                                                                  7
You can also read