Residents of California who live in a neighborhood that is managed by a homeowners association (HOA) are now being introduced to HOA inspections. Pursuant to a new California law, SB 323, HOAs must now conduct an election to select new board members. Prior to January 2020, when this new law went into effect, board directors in homeowners associations could be appointed in various ways. And as you can guess, this has lead to a bit of favoritism and in some cases nepotism.
Favoritism On HOA Boards in California
In Sacramento and beyond, HOA groups were free to appoint whomever they wanted to the board decisions. The problem with this model — and why a new law was needed—is that board directors would hire friends or family as maintenance workers. For instance, an HOA in Fair Oaks was accused by its residents of hiring friends to manage landscaping. Residents of the neighborhood reportedly paid high HOA fees, while the landscaping service was heavily discounted for the board. This then raises the question: “Where does the money go?”
This type of favoritism is what has caused the state to pass a law for new California HOA elections.
The Need for An Election Process
It’s clear that the old system was broken, which is why the senate passed a new bill. This new bill has also created the demand for election inspectors. These inspectors help vet the process and ensure there is no favoritism. For homeowners in an HOA, this also helps them understand where the funds are going. Instead of wondering what they pay into each month, they will know exactly who is in charge of what and what exactly they are paying for.
An election process will also help make the process based on votes rather than just appointing someone. As long as the homeowners prefer a certain candidate and vote for them, they can be elected to the board to make decisions for the association.
Information for Homeowners
Thankfully, for California homeowners, there is nothing you need to do immediately. Your existing HOA will inform you of when the election is coming up and advise you on the steps you need to take. You’re encouraged to vet the candidates on your own, as they will be responsible for your HOA’s decision-making.
Information for HOAs
Existing homeowners association directors need to seek out an election inspector to help with the entire process. Failure to do so could result in consequences from the state of California. While this is a new law and there are only a few election inspectors available at the moment, you may also want contact a legal representative who can advise on the law and the process required to elect new board members. We recommend taking a look at Bellwether Solution in Roseville.
Changes to the Law
As with most laws in California, it’s anticipated there will be changes to SB-323. To stay current with the law and updates, be sure to check the state website regularly.