Here are five pending bills that would not help HOAs:<\/p>\n
Senate Bill 1238<\/a> would create many problems. It proposes to add to Civil Code 2295 a legally incorrect statement that HOA managers are fiduciaries to the HOA boards and members. Instead, managers are fiduciaries to the association, not to boards or individual members.<\/p>\n The bill also adds three additional categories to the disclosures required under Civil Code section 4525 for prospective buyers. The three new items would contain specifics regarding:<\/p>\n \u2022 The number of \u201cexterior elevated elements\u201d in the association and how many involve \u201cimminent repairs\u201d<\/p>\n \u2022 Those requiring nonimminent repair<\/p>\n \u2022 Any requiring more than $10,000 in repairs<\/p>\n Balconies are only one of the three \u201celevated exterior elements\u201d in most condominium buildings, so it\u2019s unclear why the bill omits stairs and elevated bridges.<\/p>\n The bill also would add several provisions prohibiting HOAs from spending reserve funds on litigation or threatened litigation with members or relatives of member. This provision would deny associations the right to temporarily borrow from reserves to prosecute or defend lawsuits with HOA members. The reason for singling out members\u2019 relatives for protection is unclear.<\/p>\n Lastly, the bill would greatly expand the \u201celevated exterior elements\u201d disclosures, requiring report preparers to make far more detailed judgments on building components than they may be willing to make.<\/p>\n Assembly Bill 1184<\/a>, the Homeowner Association Accountability and Transparency Act of 2026, proposes significant changes to existing law.<\/p>\n It would:<\/p>\n \u2022 Disallow board email deliberations<\/p>\n \u2022 Require specific litigation disclosures be in annual budget reports<\/p>\n \u2022 Require case names be identified in executive session minutes in which the case was discussed<\/p>\n \u2022\u00a0 Require open session board meeting recordings to be available to members<\/p>\n \u2022 Require specific information items be contained in board minutes<\/p>\n \u2022 Require election results announcements state each elected director\u2019s term<\/p>\n \u2022 Ban charges for unredacted documents requested and sent electronically to members<\/p>\n The bill makes many technical changes to board governance, which volunteer directors will likely miss.<\/p>\n Assembly Bill 739<\/a> proposes heightening scrutiny of management fees by creating Civil Code 5378, requiring HOAs to email requesting members a list of management fees.<\/p>\n The bill would also add to the board\u2019s monthly financial reviews an annual review of the management fees charged to the HOA. If passed, this bill would further spotlight extra charges management companies use to make ends meet and make the management sector\u2019s current revenue model much more difficult.<\/p>\n Assembly Bill 1684<\/a> would add another \u201cprotected use\u201d by creating Civil Code 4737, which would prohibit HOAs from prohibiting or restricting installation, upgrade, replacement or use of cooling systems.<\/p>\n The bill would allow HOAs to force removal of illegal installations but not to \u201crestrict\u201d installations. This could create a major problem if HOAs cannot impose any reasonable restrictions (allowed regarding solar installations and electric vehicle charging stations). Condominium associations would be unable to stop owners from installing systems that could harm the building or adversely affect neighbors.<\/p>\n Senate Bill 222<\/a> would create a new \u201cprotected use\u201d by creating Civil Code 4737, which would prohibit HOAs from banning heat pumps or from completely banning replacement of carbon burning appliances with electric appliances.<\/p>\n I haven\u2019t heard of HOAs banning heat pumps or replacement of carbon (gas\/wood\/oil) heating systems with electric systems, so this may not affect most HOAs.<\/p>\n Find all of the pending bills at leginfo.legislature.ca.gov.<\/a><\/p>\n