Bill > SB1238

This bill, concerning common interest developments (CIDs), which are communities like condominiums or HOAs, aims to clarify and strengthen regulations around their management and financial oversight. It redefines an "agent" to include individuals or companies facilitating CID activities who owe a fiduciary duty, meaning they must act in the best interest of the homeowner's association (HOA) board and its members. The bill also revises the definition of "management services" to specifically refer to these agents. Furthermore, it mandates that owners selling a property in a CID must provide prospective buyers with additional disclosures about imminent repairs to exterior elements if the association uses a management company. A significant provision prohibits HOA boards from using reserve funds, which are set aside for major repairs and replacements, for litigation or to threaten legal action against any homeowner or their relatives within the association. The bill also updates requirements for reserve studies, which assess the funds needed for future repairs, to include findings from inspections of exterior elevated elements like balconies, and mandates that these inspection reports be incorporated into the reserve funding plan. Finally, it clarifies that certain financial records, such as reserve account balances and records of payments from those accounts, are considered "association records" accessible to members.

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB1238