With the deadline to complete the “Balcony Bill” inspections for community associations that are responsible for the maintenance of elevated load-bearing components looming on December 31st of this year, the California Legislature has enacted Assembly Bill 2214.

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At long last, AB 1458 has brought some relief to many associations that struggle year after year to reach a quorum to elect directors. Some associations have tried to address homeowner apathy by amending the quorum requirements for membership meetings, only to find that the owners are equally as disinterested in voting on amendments to the governing documents as they are in voting for directors.

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David Wankel to Speak at the 2023 CAI-OC New Legislation Luncheon 

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Assembly Bill 648 (AB 648) was signed into law on September 22, 2023, and is a giant leap for the legislature in recognizing that not all technology should be feared. This new law includes specific declarations by the legislature indicating that virtual meetings “improve and enhance homeowner members’ ability to participate and comment on business-related matters of the association and their community.” For years there has been a concern that virtual meetings may disenfranchise those without the ability to master telephonic or videoconference technology. This new law clearly recognizes that those fears are outweighed by the greater good, which is that virtual meetings allow for greater access for all members. This law becomes effective January 1, 2024.  

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A representative applying for insurance on behalf of a homeowners association must disclose all requested information to the insurer under the “duty of disclosure.” Before entering into an insurance contract, the duty of disclosure requires the applicant to provide requested information to enable the insurance company to decide whether, and on what terms, the policy will be issued, including the amount of the insurance premium. In the recent federal case, Atain Specialty Ins. Co. v. Lake Lindero HOA, No. 21-55319 (9th Cir. Feb. 7, 2022), the federal appellate court ruled that an insurance policy may be rescinded if an association fails to disclose a situation that could give rise to a claim or litigation at the time the application is completed.

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