Article 5 - Operating Rules

California Civil Code — §§ 4340-4370

Sections (6)

Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.

For the purposes of this article:

(a)“Operating rule” means a regulation adopted by the board that applies generally to the management and operation of the common interest development or the conduct of the business and affairs of the association.

(b)“Rule change” means the adoption, amendment, or repeal of an operating rule by the

board.

§ 4350

Amended by Stats. 2013, Ch. 183, Sec. 13. (SB 745) Effective January 1, 2014.

An operating rule is valid and enforceable only if all of the following requirements are satisfied:

(a)The rule is in writing.

(b)The rule is within the authority of the board conferred by law or by the declaration, articles of incorporation or association, or bylaws of the association.

(c)The rule is not in conflict with governing law and the declaration, articles of incorporation or association, or bylaws of the association.

(d)The rule is adopted, amended, or repealed in good faith and in substantial compliance with the requirements of this article.

(e)The rule is reasonable.

§ 4355

Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.

(a)Sections 4360 and 4365 only apply to an operating rule that relates to one or more of the following subjects:

(1)Use of the common area or of an exclusive use common area.

(2)Use of a separate interest, including any aesthetic or architectural standards that govern alteration of a separate interest.

(3)Member discipline, including any schedule of monetary penalties for violation of the governing documents and any procedure for the imposition of penalties.

(4)Any standards for delinquent assessment payment plans.

(5)Any procedures adopted by the association for resolution of disputes.

(6)Any procedures for reviewing and approving or disapproving a proposed physical change to a member’s separate interest or to the common area.

(7)Procedures for elections.

(b)Sections 4360 and 4365 do not apply to the following actions by the board:

(1)A decision regarding

maintenance of the common area.

(2)A decision on a specific matter that is not intended to apply generally.

(3)A decision setting the amount of a regular or special assessment.

(4)A rule change that is required by law, if the board has no discretion as to the substantive effect of the rule change.

(5)Issuance of a document that merely repeats existing law or the governing documents.

§ 4360

Amended by Stats. 2018, Ch. 836, Sec. 2. (SB 261) Effective January 1, 2019.

(a)The board shall provide general notice pursuant to Section 4045 of a proposed rule change at least 28 days before making the rule change. The notice shall include the text of the proposed rule change and a description of the purpose and effect of the proposed rule change. Notice is not required under this subdivision if the board determines that an immediate rule change is necessary to address an imminent threat

to public health or safety or imminent risk of substantial economic loss to the association.

(b)A decision on a proposed rule change shall be made at a board meeting, after consideration of any comments made by association members.

(c)As soon as possible after making a rule change, but not more than 15 days after making the rule change, the board shall deliver general notice pursuant to Section 4045 of the rule change. If the rule change was an emergency rule change made under subdivision (d), the notice shall include the text of the rule change, a description of the purpose and effect of the rule change, and the date that the rule change expires.

(d)If the board determines that an immediate rule change is required to address an imminent threat to public health or safety, or an imminent risk of substantial

economic loss to the association, it may make an emergency rule change, and no notice is required, as specified in subdivision (a). An emergency rule change is effective for 120 days, unless the rule change provides for a shorter effective period. A rule change made under this subdivision may not be readopted under this subdivision.

§ 4365

Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.

(a)Members of an association owning 5 percent or more of the separate interests may call a special vote of the members to reverse a rule change.

(b)A special vote of the members may be called by delivering a written request to the association. Not less than 35 days nor more than 90 days after receipt of a proper request, the association shall hold a vote of the members on whether to reverse the

rule change, pursuant to Article 4 (commencing with Section 5100) of Chapter 6. The written request may not be delivered more than 30 days after the association gives general notice of the rule change, pursuant to Section 4045.

(c)For the purposes of Section 5225 of this code and Section 8330 of the Corporations Code, collection of signatures to call a special vote under this section is a purpose reasonably related to the interests of the members of the association. A member request to copy or inspect the membership list solely for that purpose may not be denied on the grounds that the purpose is not reasonably related to the member’s interests as a member.

(d)The rule change may be reversed by the affirmative vote of a majority of a quorum of the members, pursuant to Section 4070, or if the declaration or bylaws require a greater percentage, by the affirmative vote of the

percentage required.

(e)Unless otherwise provided in the declaration or bylaws, for the purposes of this section, a member may cast one vote per separate interest owned.

(f)A rule change reversed under this section may not be readopted for one year after the date of the vote reversing the rule change. Nothing in this section precludes the board from adopting a different rule on the same subject as the rule change that has been reversed.

(g)As soon as possible after the close of voting, but not more than 15 days after the close of voting, the board shall provide general notice pursuant to Section 4045 of the results of the member vote.

(h)This section does not apply to an emergency rule change made under subdivision (d) of Section 4360.

§ 4370

Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.

(a)This article applies to a rule change commenced on or after January 1, 2004.

(b)Nothing in this article affects the validity of a rule change commenced before January 1, 2004.

(c)For the purposes of this section, a rule change is commenced when the board takes its first official action leading to adoption of the rule change.