Comprehensive Community Association Elections Reform Legislation Imposes Strict Standards for Elections and Board Qualifications

Comprehensive Community Association Elections Reform Legislation Imposes Strict Standards for Elections and Board Qualifications

Governor Newsom has signed into law perhaps the most sweeping legislation targeting a community association’s ability to self-govern.  Senate Bills 323 and 754 together present the greatest legislative change in association elections since the two-envelope secret written ballot procedures were first imposed upon community associations.  The changes that most impact community associations are as follows: Timing: The legislation amends Civil Code § 5100 (a) to require director elections be held at the end of each director’s expiring term and at least every four years. Vote by Acclamation: For large communities (of 6,000 or more separate interests) and where the number of nominees is equal to or less than the number of board seats to be filled, the legislation allows an association to conduct a director election vote by acclamation. Mandated Candidate Qualifications: The legislation further amends Civil Code § § 5100 and 5105 (b) mandating that elections rules include the following specified candidate qualifications: 1) that the candidate be an association member; and, 2) that a corporate or trust property owner be represented by the appointment of a natural person. Limited Candidate Disqualification SB 323 adds Civil Code § Subsection 5105 (c) allowing an association, through election rules or bylaws only, to disqualify a candidate 1) with a prior criminal conviction that prevents the association from acquiring a fidelity bond or would result in the termination of the associations existing fidelity bond; 2) whose election would result in joint owners of a separate interest serving on the board at the same time; or, 3) who has been a member for less than one (1) year.   New Limitations on...