The Davis-Stirling Act is a set of laws that govern the operation of common interest developments, including homeowner associations (HOAs), in the state of California. Enacted in 1985, the Act provides a framework for how HOAs should be structured and managed, and establishes the rights and responsibilities of both board members and homeowners.
For HOAs in California, compliance with the Davis-Stirling Act is critical. Failure to follow the Act’s provisions can result in legal disputes, financial penalties, and reputational damage. Therefore, it’s important for both board members and homeowners to have a thorough understanding of the key provisions of the Act.
The Davis-Stirling Act defines who is eligible to be a member of an HOA, as well as the rights and responsibilities of those members. This includes the ability to vote on matters such as elections, assessments, and amendments to the HOA’s governing documents.
The Act also sets out the rules and requirements for the governance of an HOA. This includes the establishment of a board of directors, the appointment of officers, and the creation of committees to manage various aspects of the community.
The Davis-Stirling Act outlines the procedures for conducting elections within an HOA. This includes the establishment of nominating committees, the development of election rules and procedures, and the management of balloting and vote counting. In California, associations are required to hire an HOA election service to conduct the election and monitor its results. A third-party service keeps the election honest and compliant with the Davis-Stirling Act.
One of the most important provisions of the Act concerns assessments, which are the fees that homeowners are required to pay to the HOA. The Act establishes the requirements for creating and collecting assessments, including the need for a budget and reserve fund, and the procedures for collecting delinquent payments.
Finally, the Davis-Stirling Act provides a clear framework for resolving disputes within an HOA. This includes both informal and formal processes, such as mediation and arbitration, as well as litigation in court.
For board members and homeowners in HOAs, compliance with the Davis-Stirling Act is critical. Failure to follow the Act’s provisions can result in legal disputes, financial penalties, and reputational damage. To ensure compliance, it’s important to seek out legal counsel and educational programs that can provide guidance on the Act’s requirements and best practices for compliance.
Monitor Changes to the Act
In recent years, there have been several updates and changes to the Davis-Stirling Act, which have had a significant impact on HOAs in California. For example, changes to the Act have made it easier for HOAs to collect delinquent assessments, while also providing more protections for homeowners in the dispute resolution process.
In summary, the Davis-Stirling Act is a critical piece of legislation for HOAs in California. By understanding the Act’s key provisions, and seeking out the resources and guidance needed to ensure compliance, board members and homeowners can work together to build strong and vibrant communities that meet the needs of everyone involved.