The Davis-Stirling Act is the main set of laws used to govern homeowners associations (HOAs) and common interest developments (CIDs) in the state of California. The original Act was developed in 1985; however, has been amended a number of times since then with the latest amendment taking place on January 1, 2014. Because this amendment has resulted in a complete reorganization and renumbering document and understanding the changes is absolutely essential for HOAs as well as their members, we at National Property Management Group (NPMG)–a Santa Clarita property management company–have put together a guide to understanding the changes to the Davis-Stirling Act.
Why was the Davis-Stirling Act Revised?
The Act was revised in order to make the law much more user-friendly and easier to understand. Some of the basic organizational changes to the Act include ones to the annual “budget” package. Other changes including the inclusion of a type of
standardized terminology and the regrouping and separation of certain subjects.
Some of the important changes that were made with the latest update to the Davis-Stirling Act include:Important Changes You Should Be Aware of
- Standardized Rules of Notice and Delivery: This means that both HOAs and members have to follow the newly developed standardized rules for notification and delivery.
- Annual Reports and Disclosures: It is now necessary for the Annual Policy Statement and Annual Budget Report is delivered to all the association members each year, which will replace the current budget and the disclosure requirements.
- Conflicts of Interest with Board Members: The latest requirements have been designed in order to help and avoid conflict of interest problems when conducting any type of board business. Now, any board member that has an issue that concerns themselves, will not be eligible to vote when a decision is being made.
- Exclusive Common Area Use for Members: Now associations are going to have the permission to grant member approval to common areas for specific reasons without having to seek member approval.
- Non-Compliance Penalties: The latest penalties that have been introduced for HOAs that do not comply with specific requirements have been changed to create a $500 fee assessed for each violation.
- Provisions for Temporary Relocation: Now homeowners associations are required to cover any type of temporary relocation costs, which includes the lodging, transportation and meals for any members during the maintenance or the repair of a common area in the community.
Updating Your HOAs Documents
There are some advisors that recommend if your HOAs governing documents are over eight years old, then they should update now. However, there are certain association documents that will have to be amended prior to the conclusion of the year and then distributed to the HOA members in order to meet the new changes of the Davis-Stirling Act.
If you are a member of a HOA in Santa Clarita, understanding these changes can help you be better equipped to implement them into your documents. If you would like to know more about the changes to the Davis-Stirling act, or would like to learn more about hiring NPMG for your Santa Clarita property management needs, visit or contact National Property Management Group.
National Property Management Group
28009 Smyth Drive
Valencia, CA 91355