HOA Compliance With Davis-Stirling Act

The Davis-Stirling Act, established in 1985, is one of the cornerstones of legal agreements for common interest developments (CIDs) in California. HOA compliance with the law requires the use of anonymous ballots, the presence of election inspectors, and notice to HOA members. 

Because of this, HOA inspectors of elections in California must be familiar with the Davis-Stirling Act, and it’s important for members and managers to understand the law. In this article, we’ll explore some of the provisions of the law and what legal steps HOAs must take to comply with the Davis-Stirling Act.

What is the Davis-Stirling Act?

The Davis-Stirling Act is codified in California Civil Code, starting with section 4000, and it outlines the obligations and the rights of HOAs with regards to their function. Some of the broad sections of this are as follows:

Formation

This part of the law explains how HOAs must be formed, dictating how they articulate their bylaws and that they must be structured as a nonprofit mutual benefit corporation.

Financial Responsibility

In order to comply with the Davis-Stirling Act, HOAs must act in the financial interest of members. They must also carefully document their income and expenditures.

Community Governance Practices

There are a number of compliances in the Davis-Stirling Act that apply to the maintenance of community spaces. HOAs are responsible for repairing and caring for these shared resources.

Meeting Regulations

HOA meetings must comply with a number of stipulations, including that members be notified of their date and time and that meetings be open to members.

Document Availability

HOAs must give their members access to certain documents, including financial statements and meeting minutes

Voting Regulation

Voting regulation is a detailed part of the Davis-Stirling Act, so much so that it legally requires oversight by a third party. There are several specific requirements established by the Davis-Stirling Act that are each aimed at securing the integrity of the voting process. 

By necessity, this includes parameters for voting and election process. These parameters are designed to protect members’ anonymity and ensure the process is fair and effective.

The Double-Envelope System

Elections only function if the identity and votes of each participant is secret. Without anonymity, voters might fear retaliation or consequences for their vote. This can foster voter intimidation and quickly suppress voter participation.

The Davis-Stirling Act stipulates a specific process by which HOAs can provide this anonymity. It uses two envelopes:

• One envelope that contains the ballot and has no identifying information
• One envelope that displays the voter’s identification, used for mailing the ballot

This system helps ensure members can vote their conscience without fear.

Election Inspectors

The Davis-Stirling Act requires that HOA elections be overseen by independent election inspectors. What does an inspector of elections do? In short, they run the election. 

These independent observers are tasked with verifying voter eligibility, managing the distribution and collection of ballots, and overseeing the tallying process. These observers are also sometimes responsible for addressing any disputes that come from the election.

New Rules

Changing with the times, California recently amended the Davis-Stirling Act with Bill AB 2159. This bill opens the door to electronic voting in HOA elections, making these processes more accessible and reliable. Of course, this process comes with its own set of parameters and regulations.

• HOAs must provide members with the ability to choose the method by which they will vote.
• Members must have up to ninety days before an election to choose by which method they will vote (paper or electronic).
• Thirty days before an election, HOAs must notify members as to how they have chosen to vote.
• HOAs must maintain a list of how each member participated in the vote, to be shared annually.
• Paper and electronic ballots must be identical.
• The inspector overseeing the election is responsible for the anonymity and validity of electronic ballots.
• Candidates cannot be nominated from the floor of meetings.

Compliance Made Easy

Compliance with the Davis-Stirling Act can be complicated, but it doesn’t have to be when it comes to the voting process. HOAs looking to make their next election seamless should check out ElectionBuddy, which has the skills and staff to take care of every detail for both electronic and mail-in elections. 

This way, HOA boards can rest easy knowing that not only is every step taken care of, but that every law and regulation is being followed. With ElectionBuddy at the helm, voting can be quick and secure, bringing greater faith in the process and higher participation!