Your homeowner association's CC&Rs are evaluated, utilized and relied upon by your board of directors, management company, reserve study provider, mortgage lenders, and every owner, including new buyers.

When CC&Rs are created, they are created by an attorney who is hired by the developer of the community, usually about one year before the homes are sold and copies provided to the original owners.

When the attorney working for the developer, drafts the original CC&Rs, he or she will include provisions from the Davis-Stirling Act, assuming it existed when the CC&Rs were created. The Davis-Stirling Act was written in 1985 and became effective on January 1, 1986. It has been amended every year since that date. The Davis-Stirling Act is the main body of law in California that governs common interest developments, including both condominiums and planned developments. Reasons HOAs amend or restate their CC&Rs include the following:

• They were created many years ago and no longer reflect the current law (Davis Stirling Act amendments). Thus, they are no longer reliable and can result in legal liability.
• They were poorly written making it necessary to regularly obtain legal opinions regarding certain provisions, usually because they are ambiguous.
• They include extensive, obsolete references to the developer and the rights of the declarant which causes confusion. This language can be deleted.
• They fail to require members of the association to carry their own earthquake insurance, homeowner's insurance, or loss assessment insurance, thus increasing the risk to all owners.
• They fail to address who pays the insurance deductible when there is a claim filed involving a unit or lot.
• Who is responsible for maintenance and repairs is unclear, undesirable, or the document does not address adequately certain types of repairs and maintenance.
• They may include prohibited restrictions on the leasing of units. Under the current law, rentals may not be limited to less than 25% of the units in the association and rental terms may be required to be longer than 30 days.

CC&R amendments and restatements must be drafted by an attorney and approved by the membership utilizing the secret ballot process. Let us know if you need a referral to an experienced HOA attorney.

Other reasons to amend or restate CC&Rs is to include a provision that addresses one or more of the following:

• Removing legalese in favor of plain, understandable language.
• Adding pet restrictions that do not conflict with California law, such as restricting the number, weight or breed of animals.
• Establishing occupancy limitations.
• Prohibiting smoking in common areas, on balcony decks, and in patios.
• Adding an Assignment of Rents provision in order to make assessments easier to collect.
• Prohibiting the payment of compensation to board members by the association.
• Requiring that the board hire a professional HOA management company.
• Limiting the number of units or lots an owner may purchase in order to prohibit one owner from controlling the board and association.
• Establishing quorum requirements that are realistic.
• Requiring anyone running a business out of their unit to be subject to certain conditions such as: (1) naming the association and management company as an additional insured under their liability insurance policy, (2) providing proof that the city or county has issued a license for the specific address, and (3) avoiding the creation of a nuisance as defined in the CC&Rs.
• Providing the maximum late fees and interest charges permitted by law in order to minimize late assessment payments.
• Eliminating outdated California Civil Code references.
• Eliminating all discriminatory language.
• Requiring owners who rent their unit to include an addendum to the lease, provided by the association, that explains the difference between a common interest development and an apartment, and the tenant's obligation to comply with all association Rules and CC&Rs. Further, it should require and explain the importance of renter's insurance.
• Make any second trust deed loan placed on a unit subordinate or junior in priority, to any assessment lien of the association unless the deed of trust existed prior to the amendment. This is intended to avoid situations where owners borrow all or most of the equity and then default, leaving the association with no protective equity.
• Prohibiting the use of water, paid for by the association, for the washing of vehicles, trailers, and boats.
• Establishing requirements for the installation of satellite dishes by members of the homeowner association.
• Establishing requirements for the installation of electric vehicle charging stations.