This is part two of three in a series.
This week’s column reviews three more bills in Sacramento that would affect California HOAs if passed.
Senate Bill 282, authored by state Sen. Scott Wiener of San Francisco, would add a new Section 4737 to the Davis-Stirling Act and create a new “protected use.”
The proposed Section 4737 would outlaw any governing document restriction preventing replacement of fuel-burning with electric heat pump heating or cooling equipment. The bill aims to help with Gov. Gavin Newsom’s goal, announced in 2022, of six million heat pumps installed by 2030.
While one could debate the merits of heat pumps compared with gas or other fuel-fired systems, is there really a problem with HOAs prohibiting their installation?
In planned developments, heating and cooling systems are normally the responsibility of the individual lot owners, and this writer has never heard of a ban on heat pump installation.
In condominiums, the changing of heating and cooling systems could involve substantial modifications of common area plumbing, wiring, walls, and roofs, but once again, is there really a problem of HOAs prohibiting electric heat pumps?
The “protected uses” portion of the Davis-Stirling Act already has become a home for odd protections that generally are unnecessary, such as personal vegetable gardens (Section 4750) or clotheslines (section 4753). This bill would add another well-intentioned but unnecessary protection.
Senate Bill 770, authored by state Sen. Ben Allen of Los Angeles, proposes to make a small but significant amendment to the current law promoting electric vehicle charging stations in HOAs.
Current law protects homeowners’ right to install such stations, subject to important HOA requirements. One of those requirements is that the homeowner provide the HOA with proof of liability insurance naming the HOA as an additional named insured. (Civil Code 4745(f)(1)(C))
The importance of this is that as an additional named insured, the HOA would be notified by the insurer if the homeowner’s insurance lapsed or was canceled. This bill proposes to delete the requirement that the insurance policy name the HOA as an additionally named insured.
This is a bad idea, leaving the HOA and by extension the rest of the homeowners, unprotected if a homeowner’s liability insurance coverage ceases, since the HOA would not otherwise be notified of the problem.
Senate Bill 546, authored by state Sen. Tim Grayson of the East San Francisco area, proposes to repeal current Civil Code Section 5501.
Civil Code 5500 requires boards to review at least eight specific financial reports each month. However, Civil Code 5501 allows boards to create a subcommittee of the treasurer and at least one other board member to review the documents and reports each month if that fact is recorded in the minutes of the next open board meeting.
The financial report review responsibilities of Civil Code 5500 were quarterly until 2019, when the law changed to increase that review to monthly. Civil Code 5501 gives boards an option of some relief from this requirement, and removing that option makes volunteer board service that much harder.
At press time, this bill still awaits action by the Senate Housing Committee, and hopefully it will stay there and not be considered further.
To review current law or pending bills, go to leginfo.legislature.ca.gov, which also allows you to send comments to the author of a given bill.
Richardson, Esq. is a fellow of the College of Community Association Lawyers and partner of Richardson Ober LLP, a California law firm known for community association advice. Submit column questions to kelly@roattorneys.com.