Prior to the amended Davis-Stirling Act of 2024, HOAs were required to hold votes via secret mail-in ballots only. This limited discussion of the issues and placed a burden on both HOAs and voters to adhere to an outdated law. Recognizing that voter turnout was low in HOA elections, California decided to change the law to allow online elections and virtual meeting platforms for HOAs.
The passage of the Davis-Stirling Act allows HOAs and members to hold secure, anonymous homeowner association (HOA) voting in California through established online voting platforms like ElectionBuddy. These online voting platforms are already in use by various companies, organizations, and entities across the United States and have proven their ability to streamline meetings and elections.
For years, HOA meetings were held in person and voting was strictly done via double-sealed secret ballots mailed to the HOA. The in-person meeting requirements meant that turnout at meetings was low, as the time and place of the meeting might be inconvenient for many, especially out-of-state homeowners.
Keeping up with changing mailing addresses of members also led to confusion about where ballots needed to be delivered. Again, this led to low turnout during elections as many people never received ballots due to outdated information. Further confusion regarding the use of secret ballot envelopes sometimes led to votes being discarded or a voter's identity being exposed.
The switch to online meetings and elections has vastly increased the ability of HOAs to hold meetings and elections that are more inclusive of all members. With increased inclusivity, faith in the HOA election process is enhanced and the democratic process is strengthened.
Previously, those not present at meetings often had little to no information about what occurred except when formally requesting a copy of the meeting minutes. With virtual meetings, members can now ask HOA leadership questions directly and raise issues they feel are important. This allows enhanced discussion among members and brings more voices to the table.
Virtual meetings have also increased the diversity of members present at meetings. With in-person meetings, members who had scheduling conflicts or who could not be physically present were excluded. This meant those in attendance were often the more affluent members or retirees with free schedules. Now, members of all socio-economic backgrounds and those with busy lives can be part of discussion.
Virtual meeting platforms also allow HOAs to share documents online, making them more accessible to members without the need for expensive postage. With a simple click, members can download financial statements, proposals, board candidate election profiles, and more.
California isn’t the only government entity passing laws that affect HOAs. Many people in the industry are now asking how the Corporate Transparency Act affects HOAs. The effects of this law are actually minor and simply require HOAs to report their board membership to the federal government. This helps prevent financial crimes and increases corporate transparency and oversight.
The reporting requirements state that HOAs must report the following information about their board members and significant financial stakeholders:
With this information, the government can form a more complete picture of who is involved in corporations across America, helping them strengthen investigations into illicit financing and protect national security interests and taxation.
With the updated Davis-Stirling Act, the answer to the question “Can California HOAs hold virtual meetings?” Is a resounding ‘yes.’ With ElectionBuddy’s help, HOAs can now conduct meetings and elections entirely online.
Members who wish to receive paper communications can still do so, and they can utilize mail-in ballots as before. The Davis-Stirling Act simply makes it easier for those who wish to vote and participate electronically to do so.
Lastly, a key requirement of the Davis-Stirling Act is that HOAs wishing to conduct elections online retain an independent inspector of elections to hold the ballots in secret until the election is finished. This helps maintain voter security and anonymity. Thankfully, platforms like ElectionBuddy provide both inspectors and independent election experts to help HOAs in California remain compliant with the law!
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