Real Estate & Property Law

California Overregulation is Overburdening Small Associations

There are many small associations in California that cannot afford management. The Davis Stirling Act is intended to regulate HOAs, and the average person cannot comprehend a lot of what is in it. Yet, the legislators keep passing more complicated laws. And furthermore, the California Law Revision Commission has worked on an entire new Davis Stirling Act, that is longer, and in some cases, simpler, and in other cases more complicated. Still, average persons will not be able to self-regulate without doing their homework, committing to learning what is needed to run the association and trying to understand the laws.

I get emails almost every day from some of the smaller association Boards who are overwhelmed with all of the laws. Some even are bold enough to write that they intend to ignore one or another of the laws - and this comes up a lot with the new complicated election laws. I mean, can you imagine being a member of a 4 unit HOA, and having to go outside the association to find an inspector of election to receive the 4 ballots (because all of the owners are ineligible to serve as inspectors), open the double envelopes on each and announce the election results of the Board election each year?

Here is a recent email from a frequent reader.

"Beth, I agree with your comments on the micromanaging by the legislature. We are just trying to have our lawns mowed and pay our bills. As the treasurer of our small HOA (I am also a CPA), we feel overly burdened by Davis-Stirling. We are entirely self managed and this compliance is too time consuming. I envision a point when no one will want to be on our board."

Touche! I agree.

For those of you who want help, check out http://www.californiacondoguru.com, the publications page. You can purchase THE DAVIS STIRLING ACT IN PLAIN ENGLISH for a mere fifty bucks!

My best...

Full post as published by California Condo & HOA Law on May 20, 2008 (boomark / email).