New Home Owners Association Law in CA for 2012 – SB 150

California Law SB 150 - HOAI have received a considerable feedback from Property Management 2.0’s readers requesting more information on the new SB 150 Home Owners Association (HOA) law in California that came into effect Janaury 1st, 2012.  To help answer questions in regards to this new CA law, I have included an excerpt from community association attorneys, Swedelson & Gottlieb’s that may help explain this new law:


“Following are two pertinent points about the application of SB 150 to California common interest developments:

1. This new legislation does not apply to all rental restrictions. For example, it does not apply to a rental restriction that prohibits an owner from leasing his/her unit/lot for a term less than one year, that the lease be in writing, or a restriction requiring that the lease contain language that the tenant agrees to abide by the association’s governing documents. The bill does apply to restrictions recorded on or after January 1, 2012 that prohibit leasing of a unit or lot, such as a restriction that sets a cap on the number or percentage of units that may be leased at any one time, or a restriction requiring a waiting period after purchase before an owner may rent his/her unit or lot.

2. The bill does not nullify all limits on leasing that are recorded on or after January 1, 2012. For example, if an association records an amendment to its CC&Rs establishing a 25% limit on leased units/lots on or after January 1, 2012, only new owners that purchase their properties after the effective date of that amendment would be subject to the 25% limit; existing owners would not be subject to the restriction. [This example would likely create a tracking burden for an association, as theoretically all existing owners could lease their units, but only new owners would be subject to the rental cap.]

If an association’s board of directors is considering proposing a rental restriction that affects the ability of owners to lease their units, the board should present that proposal for vote and record the corresponding CC&R amendment (assuming it is approved by the owners, and, if applicable, mortgagees) no later than December 31, 2011 to have a rental cap restriction that will be enforceable against all owners.”

Full Article

For a full analysis of the SB 150 Bill by the California State Government:…

DISCLAIMER: This post is for informational purposes only.  I am certainly not an attorney – please seek professional legal advice before taking any action. -Trevor