On September 28, 2020, Governor Newsom signed AB 3182 which becomes effective on January 1, 2021. This bill makes changes to the Davis-Stirling Common Interest Development Act by amending Civil Code Section 4740 and adding Civil Code Section 4741.
As passed, the newly adopted Civil Code Section 4741:
- Effectively nullifies governing document provisions that prohibit or unreasonably restrict the rental or leasing of any separate interest, accessory dwelling unit (ADU), or junior accessory dwelling unit (JADU) in a common interest development (CID).
- Prohibits CIDs from amending or enforcing a provision in governing documents that restrict the rental or lease of separate interests in the development to less than 25% of the separate interests. Notably, this provision also applies to rental prohibitions or rental restrictions that were adopted or amended before this Section becomes effective.
- For purposes of this Section, CIDs are prohibited from counting a separate interest as occupied by a renter if the separate interest, ADU or JADU is occupied by the owner. Additionally, ADUs and JADUs cannot be treated as separate interests.
-
Requires CIDs to comply with the new law on January 1, 2021, and requires CIDs to amend their governing document to conform to Civil Code Section 4741 by December 31, 2021.
-
Provides that a CID that willfully violates Civil Code Section 4741 is subject to a civil penalty of up to $1,000, and is also liable for actual damages.
It is recommended that community associations contact their legal counsel to determine how this new law will impact their communities.
