The Davis-Stirling Act is a key piece of legislation governing homeowners' associations (HOAs) in California. This law provides homeowners with a framework of rights and protections while outlining the obligations of HOA boards. Whether you're dealing with disputes, governance issues, or navigating HOA rules, understanding this law is important.

What is the Davis-Stirling Act?

The Davis-Stirling Act, officially known as the Davis-Stirling Common Interest Development Act, is a set of laws within the California Civil Code that governs common interest developments (CIDs) and their associations. Enacted in the 1980s and later reorganized within the Civil Code, the Act sets out many of the rules that apply to associations for condominiums, planned developments, and cooperatives. The law addresses both homeowner rights and HOA board responsibilities. It provides a legal framework for addressing disputes, complying with governance requirements, and maintaining common areas.

Key Aspects of the Davis-Stirling Act

1. HOA Disclosure Requirements in California

Under the Davis-Stirling Act, HOAs must provide certain notices and disclosures to members, including items such as annual budget information, financial disclosures, and access to specified association records. These requirements are intended to help members stay informed about association finances and decision-making. For example, members may have rights to receive or review materials such as the annual budget report, reserve funding disclosures, and information about assessments that may affect their finances.

2. Board Governance and Election Rules

The Act includes requirements related to HOA governance, including open meeting requirements, notice rules, and member voting and election procedures. Depending on how an association is organized, the California Corporations Code and the association’s governing documents may also apply to certain corporate formalities. The Davis-Stirling Act includes detailed election rules for many associations, including the use of a double-envelope secret ballot process and related inspector-of-elections procedures.

3. Reserve Study and Special Assessments

The Davis-Stirling Act requires associations to obtain and review reserve studies on a regular schedule to evaluate anticipated repair and replacement costs for major common area components. The Act also regulates assessments, including notice and, in some circumstances, member-approval requirements for certain increases and special assessments.

4. Homeowner Protections

One of the purposes of the Davis-Stirling Act is to provide statutory protections and procedures for homeowners and associations. The law includes processes that may apply when an association alleges a governing document violation, including notice and an opportunity to be heard, and it also provides dispute resolution procedures that may be used for certain HOA-related disputes.

5. California Civil Code Provisions for Enforcement

Several parts of the Davis-Stirling Act address enforcement and dispute resolution. For example, the Civil Code includes provisions concerning internal dispute resolution (IDR) and alternative dispute resolution (ADR) procedures, and it also contains statutes addressing enforcement of governing documents. Election-related enforcement is addressed in the election provisions of the Act.

HOA Violations and Legal Action

When a homeowner receives a violation from their association, it can be helpful to understand the procedures that may apply under the Davis-Stirling Act. Depending on the issue, those procedures may include notice and hearing requirements, internal dispute resolution (IDR), and, for some disputes, alternative dispute resolution (ADR) before certain types of civil actions. In some situations, disputes may proceed to court, but the rules and prerequisites can depend on the nature of the claim.

Recent Updates to the Davis-Stirling Act

Over the years, the Davis-Stirling Act has undergone updates to address evolving issues affecting common interest developments. Updates have addressed topics such as water-efficient landscaping, fair housing-related considerations, and member access to certain association records. Keeping up with statutory changes can be important for both homeowners and associations.

How We Can Help at LS Carlson Law

LS Carlson Law handles California HOA-related matters involving the Davis-Stirling Act. When homeowners, boards, or management companies seek legal counsel, an attorney may help explain how the statutes and governing documents apply to a particular situation, outline available dispute resolution processes, and assist with compliance questions. Any legal strategy depends on the specific facts and the applicable governing documents and statutes.

Protecting Your Rights in Common Interest Developments

The Davis-Stirling Common Interest Development Act is intended to balance homeowner rights with the operation of community associations. Understanding the Act can help homeowners and associations better navigate issues such as rules enforcement, elections, records requests, and assessment questions. This article is for general informational purposes and is not legal advice.