Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Governing instruments for the ownership and
management of subdivisions enumerated in Section 11004.5 of the Code (common-
interest subdivisions) including the Covenants, Conditions and Restrictions
(CC&Rs), Articles of Incorporation (Articles) and Bylaws shall ordinarily
provide for, but need not be limited to, the following:
(1) Creation of an organization (hereafter
Association) of subdivision interest owners;
(2) A description of the common interests of the
subdivision owners or lessees;
(3)
Transfer of title and/or control of common interests or of mutual and reciprocal
rights of use to the owners in common or to the Association;
(4) Procedures for calculating and collecting
regular assessments from owners to defray expenses attributable to the ownership,
operation or furnishing of common interests or to the enjoyment of mutual and
reciprocal rights of use;
(5) Procedures
for establishing and collecting special assessments for capital improvements or for
other purposes;
(6) Liens upon
privately-owned subdivision interests for assessments levied pursuant to the
CC&Rs and foreclosure thereof for nonpayment;
(7) Policies and Procedures relating to the
disciplining of members for failure to comply with provisions of the governing
instruments;
(8) Creation of a governing
body for the Association;
(9) Procedures
for the election and removal of governing body members and officers of the
Association;
(10) Enumeration of the
powers and duties of the governing body and the officers and of the limitations upon
the authority of the governing body to act without the prior approval of members
representing a majority of the voting power of the Association;
(11) Allocation of voting rights to Association
members;
(12) Preparation of the budgets
and financial statements of the Association and for distribution to the Association
members;
(13) Regular and special
meetings of Association members with notice requirements;
(14) Regular meetings of the governing body with
provision for notice to Association members;
(15) Quorum requirements for meetings of members
of the Association and of the governing body;
(16) Procedures for proxy voting at members'
meetings;
(17) Policies and procedures
governing the inspection of books and records of the Association by
members;
(18) Amendment procedures for
those provisions of the governing instruments which relate to the ownership,
management and control of the Association and/or the common interests;
(19) Prohibitions against or restrictions upon the
severability of a separately-owned portion from the common interest portion of a
subdivision interest;
(20) Conditions
upon which a partition of a condominium project may be had pursuant to Section
1359 of the Civil
Code;
(21) Action to be taken and
procedures to be followed in the event of condemnation, destruction or extensive
damage to the subdivision interests, including provisions respecting the use and
disposition of insurance proceeds or damages payable to the Association or to a
trustee on behalf of owners on account of condemnation, destruction or
damage;
(22) Annexation of additional
land to the existing development where appropriate;
(23) Architectural and/or design
control;
(24) Special provisions for
enforcement of financial arrangements by the subdivider to secure performance of his
commitment to complete common-area improvements;
(25) Granting of easements or use rights affecting
the common areas;
(26) Special
provisions authorizing the governing body, subject to compliance with Section
1354 of the Civil
Code, to institute, defend, settle or intervene on behalf of the Association in
litigation, arbitration, mediation, or administrative proceedings in matters
pertaining to (A) enforcement of the governing instruments, (B) damage to the common
areas, (C) damage to the separate interests which the Association is obligated to
maintain or repair, or (D) damage to the separate interests which arises out of, or
is integrally related to, damage to the common areas or separate interests that the
association is obligated to maintain or repair.
(b) The Commissioner will ordinarily consider
provisions of the governing instruments proposed for a common-interest subdivision
to constitute "reasonable arrangements" under Section 11018.5 of the Code if the
provisions are in substantial conformance to the applicable standards prescribed in
Sections 2792.4,
2792.15 through
2792.21,
2792.23,
2792.24 and
2792.26 through
2792.28 of these Regulations and if
they do not otherwise arbitrarily deny, limit or abridge the right of owners with
respect to management, maintenance, preservation, operation or control of their
subdivision interests.
1. Amendment of
subsections (a)(6), (7) and (20) filed 1-16-79; effective thirtieth day thereafter
(Register 79, No. 3). For prior history, see Register 76, No. 3.
2.
Amendment of subsection (b) filed 1-17-80; effective thirtieth day thereafter
(Register 80, No. 3).
3. Amendment of subsection (a)(20) filed 4-2-86;
effective thirtieth day thereafter (Register 86, No. 14).
4. Amendment of
subsections (a) and (a)(25), new subsection (a)(26) and amendment of NOTE filed
12-7-94; operative 1-6-95 (Register 94, No. 49).
5. Amendment of
subsection (b) filed 12-30-97; operative 1-29-98 (Register 98, No.
1).
Note: Authority cited: Section
11001,
Business and Professions Code. Reference: Sections
11004.5,
11018
and
11018.5,
Business and Professions Code.
