Law Reforms Affecting Home Owner Associations
2020 has brought some new reforms for HOA communities. The new laws are going to impact the way your HOA might function. New Bills are signed and going into effect so you need to know how HOAs are going to be affected.
Law Reforms Affecting HOA Communities in California
Some of these changes for 2020 include:
- how elections are conducted
- restrictions on accessory dwelling units
- specifications regarding contractor status
These new changes will cause associations and boards to make modifications to their existing practices. Thes can change the community as a whole, so you need to be prepared. Key changes for 2020 include:
- Suspension of the right to vote in elections if the community member is overdue in their assessments.
- Qualifications for board member candidates need to be set.
There are also additional challenges facing homeowners regarding the building of accessory dwelling units or ADUs. This law prohibits HOAs from enforcing rules that will make ADUs difficult to build. It does allow the board to impose reasonable restrictions, such as:
- The owner must occupy the main residence instead of the ADU.
- Only one ADU can be built on the lot.
- The ADU cannot be sold separately from the primary home on the lot.
- The ADU cannot be larger than 50% of the main residence or 1,200 square feet in size.
One final change for 2020 is that contractors are now to be classified as employees. They are no longer independent contractors. Assembly Bill 5 states that contractors are now considered employees unless their work goes unsupervised by a community association. This does not apply to attorneys, accountants, engineers, and other professionals who provide services to common interest communities.
Association boards and managers in the state of California should be aware of and anticipate changes within their associations. All communities and HOA board members in California need to consult a legal professional when establishing these updates. This way you can be sure that all laws and regulations are adhered to correctly.