California homeowner associations (HOAs) face significant legal changes in 2025 that will reshape how they conduct elections, manage transparency, and handle maintenance responsibilities. These updates address California HOA elections, new transparency requirements under the Corporate Transparency Act (CTA), and expanded utility repair obligations.
Understanding these changes in HOA legislation is critical for board members and homeowners to remain compliant and avoid operational disruptions.
California Assembly Bill (AB) 2159 introduces pivotal updates to the Davis-Stirling Act, which governs HOA elections. Historically, elections were conducted using secret paper ballots with double envelopes to ensure voter anonymity. With the new amendment, HOAs can now implement electronic voting for director elections, recalls, and amendments to governing documents.
To adopt electronic voting, HOAs must update their election rules and allow members to opt in or out of this option. Homeowners’ preferences must be confirmed at least ninety days before the election.
Members who opt out must still receive paper ballots. Additionally, HOAs that integrate electronic voting can no longer allow floor nominations during membership meetings, though those using paper ballots may continue to do so.
This modernization offers flexibility and convenience but requires careful planning and communication to ensure all members are informed and comfortable with the updated voting processes.
Senate Bill (SB) 900 introduces new maintenance responsibilities for HOAs. Under this law, HOAs are required to address utility service interruptions originating in common areas–such as gas, water, and electricity–within fourteen days unless governing documents specify otherwise.
The bill also mandates that utility lines be explicitly included in reserve studies, ensuring that funding for future repairs is properly planned. If reserve funds fall short, HOAs are allowed to impose emergency assessments or secure loans without requiring member approval. These changes prioritize operational efficiency and proactive infrastructure management.
Assembly Bill (AB) 2460 simplifies quorum requirements for HOA elections. Previously, if a quorum was not met, the meeting could be adjourned for twenty days, and no additional notice was required for the reconvened meeting.
The new law maintains the twenty-day adjournment period but mandates at least fifteen days’ notice for reconvened meetings. Additionally, the reduced quorum threshold of 20% remains unless HOA bylaws specify otherwise. These changes are designed to improve accessibility, streamline decision-making, and reduce delays caused by low voter turnout.
The risk of non-compliance with the Corporate Transparency Act for HOAs is an emerging concern. Enacted in 2021, the CTA requires most corporations, including HOAs, to disclose their beneficial owners to the U.S. Financial Crimes Enforcement Network (FinCEN). While the act aims to combat financial crimes like money laundering, it has created challenges for HOA boards, which are often composed of volunteer members.
Failure to comply with the CTA can result in fines and legal liabilities, making it essential for HOAs to complete timely registrations and maintain accurate records. Staying proactive and informed is key to avoiding unnecessary risks.
The Davis-Stirling Act, long regarded as the cornerstone of HOA governance in California, now embraces modern voting methods. While secret paper ballots remain an option, electronic voting adds convenience and efficiency. Hybrid models combining electronic and mail-in ballots ensure accessibility for all members while maintaining the integrity of the voting process.
To avoid compliance issues, HOA boards must revise their governing documents, communicate election rule updates clearly, and provide resources to guide members through the transition.
With California HOA elections evolving under AB 2159, utility maintenance responsibilities expanding under SB 900, and quorum requirements shifting under AB 2460, HOA boards must take proactive steps to prepare for 2025. This includes:
California’s new HOA laws present opportunities to modernize and improve operations while ensuring transparency and compliance. By embracing tools like ElectionBuddy, which offers secure electronic and mail-in voting solutions, HOAs can simplify these transitions and continue serving their communities with confidence.
Staying informed, planning ahead, and leveraging reliable resources will help HOAs navigate these changes successfully and build stronger, more resilient communities!
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