Overview

The Davis-Stirling Common Interest Development Act is a comprehensive framework of laws in California governing common interest developments (CIDs) such as condominiums, cooperatives, and planned unit developments. Here are the key points:

• Purpose: The Act regulates the creation and operation of common interest developments to ensure fair governance and operation, protecting the interests of property owners within these developments.

• Homeowners Associations (HOAs):

  • Formation and Governance: Provides guidelines for forming and governing homeowners associations, including the adoption of bylaws and articles of incorporation.

  • Board of Directors: Establishes rules for the election and duties of the board of directors, including requirements for meetings, quorums, and decision-making processes.

  • Financial Management: Mandates financial management practices, including budgeting, reserve funding, and financial disclosures to members.

• Member Rights and Responsibilities:

  • Access to Records: Ensures members have the right to access certain association records and documents.

  • Voting Rights: Defines voting procedures, including proxies, quorum requirements, and the handling of election disputes.

  • Assessments and Dues: Regulates the levying and collection of assessments and dues from members, including procedures for delinquent payments.

• Dispute Resolution:

  • Internal Dispute Resolution (IDR): Requires the establishment of internal processes for resolving disputes between the association and its members.

  • Alternative Dispute Resolution (ADR): Encourages the use of mediation and arbitration before litigation.

• Amendments and Updates: The Act is periodically updated to address emerging issues and ensure it remains relevant to the changing landscape of common interest developments.

• Enforcement: Provides mechanisms for enforcing the Act’s provisions, including penalties for non-compliance by associations or members.

The Davis-Stirling Act aims to create a balanced, fair, and transparent environment for the management and operation of common interest developments in California. More information here: https://www.davis-stirling.com/HOME/Statutes/Davis-Stirling-Act